Document and Entity Information
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2021shares | |
Cover [Abstract] | |
Entity Registrant Name | CINCINNATI BELL INC. |
Entity Central Index Key | 0000716133 |
Entity Current Reporting Status | No |
Entity Interactive Data Current | No |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Small Business | false |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity File Number | 1-8519 |
Entity Tax Identification Number | 31-1056105 |
Entity Address, Address Line One | 221 East Fourth Street |
Entity Address, City or Town | Cincinnati |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 45202 |
City Area Code | 513 |
Local Phone Number | 397-9900 |
Entity Incorporation, State or Country Code | OH |
Document Quarterly Report | true |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||||
Revenue | $ 111.4 | $ 314.6 | $ 389.5 | $ 1,138.7 | $ 1,149.5 |
Costs and expenses | |||||
Cost of services and products, excluding items below | 60.5 | 174.6 | 203.9 | 619.5 | 591 |
Selling, general and administrative, excluding items below | 22.1 | 74.2 | 86 | 243.4 | 255.3 |
Depreciation and amortization | 30.2 | 52.1 | 71.9 | 194.9 | 220.8 |
Restructuring and severance related charges | 0 | 0.3 | 0.8 | 1.2 | 16.4 |
Transaction and integration costs | 0 | 51.5 | 2.2 | 54.8 | 33.8 |
Gain on sale of assets, net | 0 | (2.8) | 0 | (2.8) | 0 |
Total operating costs and expenses | 112.8 | 349.9 | 364.8 | 1,111 | 1,117.3 |
Operating (loss) income | (1.4) | (35.3) | 24.7 | 27.7 | 32.2 |
Interest expense | 6.4 | 23.2 | 33.4 | 89.1 | 100.6 |
Other components of pension and postretirement benefit plans (benefit) expense | (1.1) | 2.1 | 2.6 | 6.4 | 9 |
Loss on extinguishment of debt | 0 | 10.7 | 0 | 10.7 | 0 |
Other (income) expense, net | (0.3) | 19.7 | (0.2) | 19.7 | (1.2) |
Loss before income taxes | (6.4) | (91) | (11.1) | (98.2) | (76.2) |
Income tax benefit | (1.4) | (17.3) | (2.9) | (16.9) | (26.2) |
Net loss | (5) | (73.7) | (8.2) | (81.3) | (50) |
Preferred stock dividends | 0 | 2.4 | 2.6 | 7.6 | 7.8 |
Net loss applicable to common shareowners | $ (5) | $ (76.1) | $ (10.8) | $ (88.9) | $ (57.8) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net loss | $ (5) | $ (73.7) | $ (8.2) | $ (81.3) | $ (50) |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation (loss) gain | (1.2) | (1.4) | 2 | 1.2 | (2.1) |
Cash flow hedges: | |||||
Unrealized loss on cash flow hedges arising during the period, net of tax of ($0.2), ($0.1), $0.0, ($3.3) | 0 | (0.6) | (0.5) | (0.1) | (11.3) |
Reclassification adjustment for net losses included in net income, net of tax of $4.7, $0.5, $5.8, $1.4 | 0 | 16.2 | 1.8 | 19.7 | 4.6 |
Defined benefit plans: | |||||
Net gain (loss) arising from remeasurement during the period, net of tax of $1.0, $1.8, ($3.4) | 0 | 0 | 3.2 | 6 | (11.5) |
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.1), ($0.4), ($0.4) | 0 | (0.3) | (0.5) | (1.3) | (1.5) |
Amortization of net actuarial loss included in net income, net of tax of $1.0, $1.1, $3.6, $3.3 | 0 | 3.1 | 3.7 | 12 | 11.1 |
Reclassification adjustment for pension settlement charges included in net income, net of tax of $0.2 | 0 | 0 | 0 | 0 | 0.9 |
Total other comprehensive (loss) income | (1.2) | 17 | 9.7 | 37.5 | (9.8) |
Total comprehensive (loss) income | $ (6.2) | $ (56.7) | $ 1.5 | $ (43.8) | $ (59.8) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized (loss) gain on cash flow hedges arising during the period, tax | $ (0.2) | $ (0.1) | $ 0 | $ (3.3) |
Reclassification adjustment for net losses included in net income, tax | 4.7 | 0.5 | 5.8 | 1.4 |
Net gain (loss) arising from remeasurement during the period, tax | 1 | 1.8 | (3.4) | |
Amortization of prior service benefits included in net income, tax | (0.1) | (0.1) | (0.4) | (0.4) |
Amortization of net actuarial loss included in net income, tax | $ 1 | $ 1.1 | $ 3.6 | 3.3 |
Reclassification adjustment for pension settlement charges included in net income, tax | $ 0.2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareowners' Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Convertible Preferred Shares [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2019 | $ (140) | $ 129.4 | $ 0.5 | $ 2,676.2 | $ (2,776) | $ (170.1) |
Beginning Balance, Shares at Dec. 31, 2019 | 3.1 | |||||
Beginning Balance, Shares at Dec. 31, 2019 | 50.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (50) | (50) | ||||
Other comprehensive income (loss) | (9.8) | (9.8) | ||||
Stock-based compensation | 4.2 | 4.2 | ||||
Dividends on preferred stock | (7.8) | (7.8) | ||||
Shares issued under employee plans | $ 0 | 0 | ||||
Shares issued under employee plans, Shares | 0.3 | |||||
Shares purchased under employee plans and other | (1.1) | (1.1) | ||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2020 | (204.5) | $ 129.4 | $ 0.5 | 2,671.5 | (2,826) | (179.9) |
Ending Balance, Shares at Sep. 30, 2020 | 3.1 | |||||
Ending Balance, Shares at Sep. 30, 2020 | 50.7 | |||||
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2020 | (204.6) | $ 129.4 | $ 0.5 | 2,672.9 | (2,817.8) | (189.6) |
Beginning Balance, Shares at Jun. 30, 2020 | 3.1 | |||||
Beginning Balance, Shares at Jun. 30, 2020 | 50.7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (8.2) | (8.2) | ||||
Other comprehensive income (loss) | 9.7 | 9.7 | ||||
Stock-based compensation | 1.2 | 1.2 | ||||
Dividends on preferred stock | (2.6) | (2.6) | ||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2020 | (204.5) | $ 129.4 | $ 0.5 | 2,671.5 | (2,826) | (179.9) |
Ending Balance, Shares at Sep. 30, 2020 | 3.1 | |||||
Ending Balance, Shares at Sep. 30, 2020 | 50.7 | |||||
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2020 | (191.1) | $ 129.4 | $ 0.5 | 2,670.3 | (2,831.6) | (159.7) |
Beginning Balance, Shares at Dec. 31, 2020 | 3.1 | |||||
Beginning Balance, Shares at Dec. 31, 2020 | 50.7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (81.3) | (81.3) | ||||
Other comprehensive income (loss) | 37.5 | 37.5 | ||||
Stock-based compensation | 4.3 | 4.3 | ||||
Dividends on preferred stock | (7.6) | (7.6) | ||||
Equity-based award modification | (10.2) | (10.2) | ||||
Shares issued under employee plans, Shares | 0.2 | |||||
Shares purchased under employee plans and other | (2) | (2) | ||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 07, 2021 | (250.4) | $ 129.4 | $ 0.5 | 2,654.8 | (2,912.9) | (122.2) |
Ending Balance, Shares at Sep. 07, 2021 | 3.1 | |||||
Ending Balance, Shares at Sep. 07, 2021 | 50.9 | |||||
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2021 | (183.2) | $ 129.4 | $ 0.5 | 2,665.3 | (2,839.2) | (139.2) |
Beginning Balance, Shares at Jun. 30, 2021 | 3.1 | |||||
Beginning Balance, Shares at Jun. 30, 2021 | 50.9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (73.7) | (73.7) | ||||
Other comprehensive income (loss) | 17 | 17 | ||||
Stock-based compensation | 2.1 | 2.1 | ||||
Dividends on preferred stock | (2.4) | (2.4) | ||||
Equity-based award modification | (10.2) | (10.2) | ||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 07, 2021 | (250.4) | $ 129.4 | $ 0.5 | 2,654.8 | (2,912.9) | (122.2) |
Ending Balance, Shares at Sep. 07, 2021 | 3.1 | |||||
Ending Balance, Shares at Sep. 07, 2021 | 50.9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5) | |||||
Other comprehensive income (loss) | (1.2) | |||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2021 | 1,709.9 | 1,716.1 | (5) | (1.2) | ||
Ending Balance, Shares at Sep. 30, 2021 | 0.5 | |||||
Beginning Balance, Shareowners' Equity (Deficit) at Sep. 08, 2021 | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Beginning Balance, Shares at Sep. 08, 2021 | 0 | |||||
Beginning Balance, Shares at Sep. 08, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5) | (5) | ||||
Other comprehensive income (loss) | (1.2) | (1.2) | ||||
Capital contributions by Red Fiber Parent LLC | 1,716.1 | 1,716.1 | ||||
Capital contributions by Red Fiber Parent LLC, Shares | 0.5 | |||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2021 | $ 1,709.9 | $ 1,716.1 | $ (5) | $ (1.2) | ||
Ending Balance, Shares at Sep. 30, 2021 | 0.5 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 5.4 | $ 12.2 |
Receivables, less allowances of $0.9 and $23.0 | 337.5 | 369.6 |
Inventory, materials and supplies | 61.5 | 35.5 |
Prepaid expenses | 37.7 | 33.5 |
Other current assets | 7.1 | 8.3 |
Total current assets | 449.2 | 459.1 |
Property, plant and equipment, net | 1,956.9 | 1,729.1 |
Operating lease right-of-use assets | 41.4 | 37.4 |
Goodwill | 646.3 | 161.5 |
Intangible assets, net | 961.2 | 148.1 |
Deferred income tax assets | 6.9 | 82.5 |
Other noncurrent assets | 28.5 | 50.9 |
Total assets | 4,090.4 | 2,668.6 |
Current liabilities | ||
Current portion of long-term debt | 13 | 21.8 |
Accounts payable | 319.9 | 299.2 |
Unearned revenue and customer deposits | 56.3 | 68.9 |
Accrued taxes | 25.3 | 28.1 |
Accrued interest | 24.9 | 26.7 |
Accrued payroll and benefits | 36.3 | 50.5 |
Other current liabilities | 38.9 | 50.9 |
Total current liabilities | 514.6 | 546.1 |
Long-term debt, less current portion | 1,382.9 | 1,949.9 |
Operating lease liabilities | 38 | 33.6 |
Pension and postretirement benefit obligations | 149.6 | 200.2 |
Pole license agreement obligation | 46.7 | 36.7 |
Deferred income tax liability | 147.7 | 10.9 |
Other noncurrent liabilities | 101 | 82.3 |
Total liabilities | 2,380.5 | 2,859.7 |
Shareowners’ equity (deficit) | ||
Preferred stock, 2,357,299 shares authorized, 155,250 shares (3,105,000,depository shares) of 6 3/4% Cumulative Convertible Preferred Stock issued and outstanding at December 31, 2020; liquidation preference $1,000 per share ($50 per depositary share) | 0 | 129.4 |
Common shares, $.01 par value; 96,000,000 shares authorized; 500,000 and 50,680,605 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 0 | 0.5 |
Additional paid-in capital | 1,716.1 | 2,670.3 |
Accumulated deficit | (5) | (2,831.6) |
Accumulated other comprehensive loss | (1.2) | (159.7) |
Total shareowners’ equity (deficit) | 1,709.9 | (191.1) |
Total liabilities and shareowners’ equity (deficit) | $ 4,090.4 | $ 2,668.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2021 | |
Statement Of Financial Position [Abstract] | ||
Allowance for receivables | $ 23,000,000 | $ 900,000 |
Preferred Stock, Shares Authorized | 2,357,299 | |
Preferred Stock, 6 3/4% Cumulative Convertible, Shares Issued | 155,250 | |
Preferred Stock, 6 3/4% Cumulative Convertible, Shares Outstanding | 155,250 | |
Preferred Stock, Depository Shares | 3,105,000 | |
Preferred Stock, Dividend Rate, Percentage | 6.75% | |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |
Preferred Stock Liquidation Depository Per Share | $ 50 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 96,000,000 | 96,000,000 |
Common Stock, Shares, Issued | 50,680,605 | 500,000 |
Common Stock, Shares, Outstanding | 50,680,605 | 500,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 1 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (5) | $ (81.3) | $ (50) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 30.2 | 194.9 | 220.8 |
Loss on extinguishment of debt | 0 | 10.7 | 0 |
Provision for loss on receivables | 0.9 | 2.1 | 11.6 |
Noncash portion of interest (income) expense | (0.3) | 4 | 4.1 |
Deferred income taxes | (1.1) | (21.1) | (26.4) |
Pension and other postretirement payments (in excess of) less than expense | (1.9) | (0.2) | 0.3 |
Stock-based compensation | 0 | 4.3 | 4.2 |
Other, net | (0.3) | (5.2) | (0.7) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables | (20.3) | 51.1 | 14.8 |
(Increase) decrease in inventory, materials, supplies, prepaid expenses and other current assets | (3.2) | (29.4) | 12.2 |
(Decrease) increase in accounts payable | (51.7) | 49.1 | (56.6) |
(Decrease) increase in accrued and other current liabilities | (37.5) | 2.8 | (12.2) |
(Increase) decrease in other noncurrent assets | (2.1) | 2.1 | 9.9 |
Increase in other noncurrent liabilities | 29.9 | 8.8 | 6.9 |
Net cash (used in) provided by operating activities | (62.4) | 192.7 | 138.9 |
Cash flows from investing activities | |||
Capital expenditures | (35.4) | (165.2) | (159.2) |
Acquisition of business | (1,620.7) | 0 | 0 |
Acquisition of Paniolo fiber assets | (1.3) | (50.5) | 0 |
Proceeds from sale of assets | 0 | 9.1 | 0 |
Other, net | 0 | (0.1) | (1.6) |
Net cash used in investing activities | (1,657.4) | (206.7) | (160.8) |
Cash flows from financing activities | |||
Capital contributions by Red Fiber Parent LLC | 1,716.1 | 0 | 0 |
Proceeds from issuance of long-term debt | 150 | 23 | 0 |
Net (decrease) increase in corporate credit and receivables facilities with initial maturities less than 90 days | (108.7) | 9 | 48 |
Repayment of debt | (1.4) | (13.4) | (19.3) |
Debt issuance costs | (42) | (0.8) | (0.5) |
Dividends paid on preferred stock | 0 | (7.8) | (7.8) |
Other, net | 0 | (2) | (1.1) |
Net cash provided by financing activities | 1,714 | 8 | 19.3 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | (0.2) |
Net decrease in cash, cash equivalents and restricted cash | (5.8) | (6) | (2.8) |
Cash, cash equivalents and restricted cash at beginning of period | 11.2 | 17.2 | 11.6 |
Cash, cash equivalents and restricted cash at end of period | 5.4 | 11.2 | 8.8 |
Noncash investing and financing transactions: | |||
Acquisition of property by assuming debt and other noncurrent liabilities | 3.8 | 3.8 | 4 |
Acquisition of property on account | $ 46.3 | $ 54.9 | $ 23.7 |
Description of Business and Acc
Description of Business and Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Accounting Policies | 1. Description of Business and Accounting Policies Organization — On March 13, 2020, the Company (as defined below), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Red Fiber Parent LLC, a Delaware limited liability company (“Parent”), and RF Merger Sub Inc., an Ohio corporation and directly wholly owned subsidiary of Parent (“Merger Sub”). On September 7, 2021 (the “Closing Date” or “Merger Date”), upon the terms and subject to the conditions set forth in the Merger Agreement, and in accordance with the applicable provisions of the Ohio General Corporation Law (the “OGCL”), Merger Sub merged with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). At the effective time of the Merger (the “Effective Time”), the separate corporate existence of Merger Sub ceased, and the Company survived the Merger as a wholly owned private subsidiary of Parent. As of the date of this filing, the Company has ceased to be a registrant (see Note 11), however due to contractual language in certain indentures, the Company is required to voluntarily file with the U.S. Securities and Exchange Commission (“SEC”). As a result of the Merger, for accounting purposes, Parent is the acquirer and Cincinnati Bell Inc. is the acquiree and accounting predecessor. The financial statement presentation includes the financial statements of historical Cincinnati Bell Inc. as “Predecessor” for periods prior to the Closing Date and of the Company as “Successor” for the periods after the Closing Date. In connection with the Merger and the related accounting determination, the Company has elected to apply push-down accounting and reflect in its financial statements the fair value of its assets and liabilities. The Consolidated Financial Statements and footnotes include a black line division between the columns titled "Predecessor" and "Successor" to signify that the amounts shown for the periods prior to and following the Merger are not comparable. The Company has elected to record all expenses that were contingent on the closing of the Merger in the Predecessor period. See Note 2 for additional information on the Merger. Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide diversified telecommunications and technology services. For ease of reference, the terms “Cincinnati Bell,” “we,” “our Company,” “the Company,” “us,” or “our” as used in this report refer to both the Predecessor and the Successor and their respective subsidiaries. The Company generates a large portion of its revenue by serving customers in Cincinnati, Ohio, Dayton, Ohio and the islands of Hawaii. An economic downturn or natural disaster occurring in these, or a portion of these, limited operating territories could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas. The Company has receivables with one customer, Verizon Communications Inc., which make up 15% and 20% of the outstanding accounts receivable balance at September 30, 2021 and December 31, 2020, respectively. Revenue derived from foreign operations was approximately 6% of consolidated revenue for the Successor period and each of the Predecessor periods included within the three and nine months ended September 30, 2021. Revenue derived from foreign operations was approximately 5% of consolidated revenue for the three and nine months ended September 30, 2020. Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, other comprehensive income, financial position and cash flows for each period presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Company’s Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”) , “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions. Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company’s accounting policies in the Successor Period are consistent with the accounting policies in the Predecessor Period. Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash consists of funds held in an escrow account associated with the acquisition of substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 2 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 5.4 $ 12.2 Restricted cash included in Other noncurrent assets — 5.0 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 5.4 $ 17.2 Restructuring Liability — As of September 30, 2021, restructuring liabilities have been established for employee separations. As of September 30, 2021 and December 31, 2020, $0.1 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets Income and Operating Taxes Income taxes — In accordance with ASC 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of permanent items such as nondeductible transaction costs, portions of officers’ compensation, and meals and entertainment expenses that are not fully deductible for tax. Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price. Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the requisite service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, expected holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire. In connection with the consummation of the Merger, certain previously granted stock-based awards vested on the Closing Date per the terms of the change of control clauses in each plan and were paid at the share purchase price of $15.50. As a result, the following awards vested and were paid on the date of acquisition: (i) time-based restricted stock units and performance-based stock units associated with the 2019 – 2021 long-term incentive plan granted under the 2017 Long-Term Incentive Plan; (ii) time-based restricted stock units granted to non-employee directors in 2020 under the 2017 Stock Plan for Non-Employee Directors; and (iii) time-based restricted stock units granted under the Hawaiian Telcom 2010 Equity Incentive Plan in the first quarter of 2018 which the Company assumed responsibility for the eventual payout upon the acquisition of Hawaiian Telcom. Due to the accelerated vesting and cash payment of these awards, the Company recorded additional compensation expense of $9.3 million to “Selling, general and administrative” expense in the Predecessor period on the Condensed Consolidated Statements of Operations. As of September 30, 2021, there are no outstanding awards granted under the 2017 Long-Term Incentive Plan, 2017 Stock Plan for Non-Employee Directors and Hawaiian Telcom 2010 Equity Incentive Plan. The Company granted cash-settled awards of $10.5 million in 2020 that originally vested at the end of a three year period. In accordance with the terms of these awards, vesting and payment of the first 25% of the award was accelerated with the consummation of the Merger. The awards remain outstanding in the Successor period and will be paid out 25% at the six month anniversary of the Closing Date and 50% will be paid out on the 18 month anniversary of the Closing Date. The remaining unrecognized compensation expense for the cash-settled awards will be recognized ratably over the remaining 18 months of the award. Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period. Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740) Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. |
Mergers and Acquisitions
Mergers and Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | 2. Mergers and Acquisitions Acquisition by Red Fiber Parent LLC On September 7, 2021, pursuant to the Merger Agreement and in accordance with the applicable provisions of the OGCL, Parent completed the acquisition of Cincinnati Bell in an all cash transaction valued at approximately $3.1 billion, including assumption of debt of $1,357.1 million. Upon the Effective Time, the separate existence of Merger Sub ceased and the Company survived the Merger as a wholly owned subsidiary of Parent. Pursuant to the Merger Agreement, each of Cincinnati Bell’s issued and outstanding Common Shares was converted into the right to receive $15.50 per share in cash, without interest. Effective September 7, 2021, trading of the Company’s Common Shares was suspended on the New York Stock Exchange (“NYSE”) and the Common Shares were subsequently delisted from the NYSE. On September 22, 2021, the Company redeemed Depositary Shares simultaneously with the redemption of the 6 3/4 6 3/4 The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values, using primarily Level 3 inputs, as described in Note 8, as of the Merger Date. Transaction costs of the acquirer are not included as a component of consideration transferred but are accounted for as expenses in the period in which such costs are incurred, or, if related to the issuance of debt, capitalized as debt issuance costs. Acquisition-related transaction costs incurred as part of the Merger, primarily included advisory, legal and accounting fees. The valuation of the assets acquired and liabilities assumed was based on estimated fair values at the Merger Date. The preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed reflect various preliminary fair value estimates and analyses, including preliminary work performed by third-party valuation specialists, which are subject to change within the measurement period as valuations are finalized. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is incomplete at September 30, 2021. Measurement period adjustments will be applied retrospectively to the Merger Date. However, given the circumstances of this acquisition which closed during the third quarter of 2021, as well as the size and complexity of the transaction, the entire purchase price allocation disclosed herein is considered provisional at this time and subject to adjustment to reflect new information obtained about factors and circumstances that existed as of the Closing Date that if known would have affected the measurement of the amounts recognized as of that date, while the measurement period remains open. We have not finalized the allocation of the purchase price as it requires extensive use of accounting estimates and valuation methodologies in the determination of such fair values. Any subsequent changes in the estimated fair values assumed upon the finalization of more detailed analysis within the measurement period will change the allocation of the purchase price and will be adjusted during the period in which the amounts are determined. The allocation of goodwill to our Entertainment and Communications reporting unit and IT Services and Hardware reporting unit is preliminary as of the date of this filing. The purchase price for Cincinnati Bell Inc. consisted of the following: (dollars in millions) Cash consideration for Cincinnati Bell Inc. stock $ 807.3 Cash consideration for preferred stock 155.2 Cash consideration for debt repayment 658.2 Total purchase price $ 1,620.7 Based on fair value estimates, the purchase price has been allocated on a preliminary basis to individual assets acquired and liabilities assumed as follows: (dollars in millions) Cincinnati Bell Inc. Assets acquired Cash $ 11.2 Receivables 318.5 Inventory, materials and supplies 56.4 Prepaid expenses 5.6 Other current assets 40.5 Property, plant and equipment 1,950.7 Operating lease right-of-use assets 42.3 Goodwill 646.3 Intangible assets 969.6 Deferred tax assets 6.9 Other noncurrent assets 20.2 Total assets acquired 4,068.2 Liabilities assumed Current portion of long-term debt 11.8 Accounts payable 381.1 Unearned revenue and customer deposits 51.2 Accrued taxes 24.6 Accrued interest 19.4 Accrued payroll and benefits 49.3 Other current liabilities 75.0 Long-term debt, less current portion 1,378.0 Operating lease liabilities 38.6 Pension and postretirement benefit obligations 151.6 Pole license agreement obligation 46.7 Deferred income tax liability 148.8 Other noncurrent liabilities 71.4 Total liabilities assumed 2,447.5 Net assets acquired $ 1,620.7 In connection with this acquisition, the Company recorded goodwill attributable to increased access to a diversified customer base, acquired workforce in the United States, Canada, United Kingdom and India with industry expertise and expected synergies. The goodwill related to this acquisition is not deductible for tax purposes. The Company recorded definite-lived intangible assets related to the customer relationships, trade names and technology and an indefinite-lived intangible asset related to FCC licenses. The preliminary fair value of the most significant identified intangible assets, customer relationships and trade names, were valued using the multi-period excess earnings method and relief from royalty method, under the income approach. The Company applied judgment which involved the use of significant assumptions with respect to revenue growth rates, customer attrition rate, discount rate and terminal growth rate in relation to the customer relationships and royalty rates and discount rate in relation to the trade names. (dollars in millions) Fair Value Useful Lives Customer relationships $ 850.0 15 years Trade names 108.0 3 to 10 years Technology 5.0 7 years FCC licenses and spectrum usage rights 6.6 Indefinite Total identifiable intangible assets $ 969.6 Transaction costs were expensed as incurred and recorded to “Transaction and integration costs” on the Condensed Consolidated Statements of Operations. Cincinnati Bell Inc. incurred cumulative transaction costs associated with the Merger Agreement of $64.4 million recorded in the Predecessor periods, of which $54.6 million was recorded in the Predecessor period of 2021 and $8.7 million was recorded in the nine months ended September 30, 2020. No transaction costs related to the Merger were recorded in the Successor period. Transaction costs of $44.0 million that were paid on the Merger Date were recorded in the Predecessor period and included as an assumed liability. Additionally, $2.9 million of severance associated with a change of control clause in an employee’s contract was recorded in the Predecessor period and is expected to be paid in the fourth quarter of 2021. Transaction-related bonuses of $5.3 million were also recorded in the Predecessor period but due to timing of payroll, were paid prior to the Merger Date. Additional expenses recorded in the Predecessor period include certain stock-based compensation awards that were accelerated upon the Merger Date, which resulted in a nonrecurring expense of $9.3 million that was recorded to SG&A, and Loss on Extinguishment of Debt of $10.7 million due to the repayment of the Corporate Credit Agreement at the Effective Time. Stock-based compensation was paid on the Merger Date and included in the cash consideration for Cincinnati Bell Inc. stock. Subsequent to the Merger Date, the Company issued a new Credit Agreement and Term Loan due 2028 for which note issuance costs of $32.0 million were capitalized as a reduction to the outstanding debt balances and a Revolving Credit Facility due 2026 for which note issuance costs of $6.1 million were capitalized to “Other noncurrent assets” on the Condensed Consolidated Balance Sheets. Prior to entering into the Merger Agreement, the Company previously entered into an Agreement and Plan of Merger, dated December 21, 2019, (as amended from time to time, the “Brookfield Merger Agreement”) with affiliates of the Brookfield Infrastructure Group (“Brookfield”), the infrastructure investment division of Brookfield Asset Management, which was subsequently amended. On March 13, 2020, the Company terminated the Brookfield Merger Agreement and entered into the Merger Agreement. In connection with the termination of the Brookfield Merger Agreement in the first quarter of 2020, the Company paid to an affiliate of Brookfield a termination fee of $24.8 million as required by the terms of the Brookfield Merger Agreement. The termination fee is recorded in “Transaction and integration costs” on the Condensed Consolidated Statements of Operations in the Predecessor period. Acquisition of Paniolo Fiber Assets On August 31, 2021, the Company acquired substantially all of the operating assets of Paniolo Cable Company, LLC (the “Paniolo Acquisition”), previously held by the bankruptcy estate of Paniolo, which include inter-island submarine and middle-mile terrestrial fiber infrastructure assets in Hawaii as well as central offices and landing stations for the submarine fiber. The Company accounted for the Paniolo Acquisition as an asset acquisition under ASC 805-10-55 “Business Combinations” because the assets acquired from Paniolo do not include an assembled workforce, and the gross value of the assets acquired meets the screen test in ASC 805-10-55-5A related to substantially all of the fair value being concentrated in a single asset or group of assets (i.e., the fiber infrastructure assets) and, thus, the assets are not considered a business. The acquisition of Paniolo’s assets augments the Company’s existing backbone network and increases the Company’s total submarine and terrestrial fiber footprint by more than 400 miles. The aggregate purchase price paid upon closing of the Paniolo Acquisition after transactional costs was $52.3 million, consisting of $29.3 million in cash and $23.0 million in committed purchase money financing. As of September 30, 2021 an insignificant amount of transaction costs are recorded in “Accounts Payable” on the Condensed Consolidated Balance Sheets. The assets are recorded as network equipment and buildings in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets. As of September 30, 2021, $0.5 million and $22.4 million of the committed purchase money financing was recorded in “Current portion of long-term debt” and “Long-term debt, less current portion,” respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2020, the Company funded $5.0 million to an escrow account to fund a portion of the purchase price and entered into an agreement with Paniolo to maintain the Paniolo network prior to the close of the acquisition. This escrow amount was classified as restricted cash and recorded in “Other noncurrent assets” on the Condensed Consolidated Balance Sheets as of December 31, 2020. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States ("SEA-US") trans-Pacific submarine cable system. Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, typically have contracts with a duration of one to five years and automatically renew on a month-to-month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year. Contracts associated with the SEA-US cable system typically range from 15 to 25 years and payment is prepaid. The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with varied renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time. The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays for such good or service will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("Hawaiian Telcom"), the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts typically have a duration ranging from 15 to 25 years. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, or a series of distinct goods or services, and is the unit of account defined in ASC Topic 606. The transaction price identified in the contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contract modifications for changes to services provided are routine throughout the term of our contracts. In most instances, contract modifications are for the addition or reduction of services that are distinct, and price changes are based on the stand-alone selling price of the service and, as such, are accounted for on a prospective basis as a new contract. Goods and services are sold individually, or a contract may include multiple goods or services. For contracts with multiple goods and services, the transaction price identified in the contract is allocated to each performance obligation using the stand-alone selling price of each distinct good or service in the contract. Certain customers of the Company may receive cash-based rebates based on volume of sales, which are accounted for as variable consideration. Potential rebates are considered at contract inception in our estimate of transaction price based on the estimated projection of sales volume. Estimates are reassessed quarterly. Performance obligations are satisfied either over time as services are performed or at a point in time. Substantially all of our service revenue is recognized over time. For services transferred over time, the Company has elected the practical expedient to recognize revenue based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are provided evenly over the month and are substantially the same over the life of the contract. As the Company has elected the practical expedients detailed at ASC 606-10-50-13, revenue for these unsatisfied performance obligations that will be billed in future periods has not been disclosed. As of September 30, 2021, our estimated revenue, including a financing component, expected to be recognized in the future related to performance obligations associated with customer contracts that are unsatisfied (or partially unsatisfied) is $138.0 million. Approximately 75% of this revenue is related to a new IRU contract entered into in the Successor period to provide dedicated fiber routes for a period of 20 years. Certain IRU contracts extend for periods of up to 30 years and are invoiced at the beginning of the contract term. The revenue from such contracts is recognized over time as services are provided over the contract term. The expected revenue to be recognized for existing IRU contracts is as follows: (dollars in millions) Three months ended December 31, 2021 $ 0.8 2022 4.0 2023 6.1 2024 7.9 2025 7.9 Thereafter 111.3 Entertainment and Communications The Company has identified four distinct performance obligations in the Entertainment and Communications segment, namely Data, Voice, Video and Other. For each of the Data, Voice and Video services, service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement, the customer takes full control over the services as the service is delivered, and as such, Data, Voice and Video are identified to be a series of distinct services. Services provided by the Entertainment and Communications segment can be categorized into three main categories that include Consumer/SMB Fiber, Enterprise Fiber and Legacy, each of which may include one or more of the aforementioned performance obligations. Data services include high-speed internet access, digital subscriber lines, ethernet, routed network services, SONET (Synchronous Optical Network), dedicated internet access, wavelength, digital signal and IRU revenue. Voice services include traditional and fiber voice lines, switched access, digital trunking and consumer long distance calling. Video services are offered through our fiber network to residential and commercial customers based on various standard plans with the opportunity to add premium channels. To receive video services, customers are required to use the Company's set top boxes that are billed as part of the monthly recurring service. Set top boxes are not considered a separate performance obligation from video because the equipment is necessary for the service to operate and the customer has no alternative use for the equipment. Services and products not included in Data, Voice or Video are included in Other revenue and are comprised of wire care, time and materials projects and advertising. Transfer of control of these services and products is evaluated on an individual project basis and can occur over time or at a point in time. The Company uses multiple methods to determine stand-alone selling prices in the Entertainment and Communications segment. For Data, Video and Voice products in Consumer/SMB Fiber, market rate is the primary method used to determine stand-alone selling prices. For Data performance obligations under the Enterprise Fiber category, and Voice, Data and Other performance obligations under the Legacy category, stand-alone selling prices are determined based on a list price, discount off of list price, a tariff rate, a margin percentage range, or a minimum margin percentage. IT Services and Hardware The Company has identified four distinct performance obligations in the IT Services and Hardware segment. These performance obligations are Communications, Cloud, Consulting and Infrastructure Solutions. Communications services are monthly services that include data and VoIP services, tailored solutions that include converged IP communications of data, voice, video and mobility applications, enterprise long distance, MPLS (Multi-Protocol Label Switching) and conferencing services. Cloud services include storage, backup, disaster recovery, SLA-based monitoring and management, cloud computing and cloud consulting. Consulting services provide customers with IT staffing, consulting and emerging technology solutions. Infrastructure Solutions includes the sale of hardware and maintenance contracts as well as installation projects. For the sale of hardware, the Company evaluated whether it is the principal or the agent. The Company has concluded it acts as an agent because it does not control the inventory before it is transferred to customers, it does not have the ability to direct the product to anyone besides the purchasing customer, and it does not integrate the hardware with any of its own goods or services. Based on this assessment, the performance obligation is to arrange a sale of hardware between the vendor and the customer. In the instance where there is an issue with the hardware, the Company coordinates with the manufacturer to facilitate a return in accordance with the standard manufacturer warranty. Hardware returns are not significant to the Company. Within the IT Services and Hardware segment, stand-alone selling prices for the four performance obligations are determined based on either a margin percentage range, minimum margin percentage or discount from standard price list if it is determined to be representative of stand-alone selling price. For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is either shipped or delivered in accordance with the terms of the contract. For certain projects within Communications and Consulting, revenue is recognized when the customer communicates acceptance of the services performed. For contracts with freight on board shipping terms, management has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, and, therefore, has not evaluated whether shipping and handling activities are promised services to its customers. Contract Balances The Company recognizes incremental fulfillment costs as an asset when installation expenses are incurred as part of performing the agreement for Voice, Video and Data product offerings in the Entertainment and Communications segment in which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We also recognize an asset for incremental fulfillment costs for certain Communications services in the IT Services and Hardware segment that require us to incur installation and provisioning expenses. The asset recognized for Communication services is amortized over the average contract life. Churn rates and average contract life are reviewed on an annual basis. Fulfillment costs are capitalized to “Other noncurrent assets.” The related amortization expense is recorded to “Cost of services and products.” The Company recognizes an asset for the incremental costs of acquiring a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs related to Voice, Video, Data and certain Communications and Cloud services meet the requirements to be capitalized. The contract asset established for the costs of acquiring a contract is recorded to “Other noncurrent assets.” Sales incentives are amortized ratably over the period that services are delivered using either an average churn rate or average contract term, both representative of the expected period of benefit of the asset capitalized. Customer churn rates and average contract term assumptions are reviewed on an annual basis. The related amortization expense is recorded to “Selling, general and administrative.” Management has elected to use the practical expedient detailed in ASC 340-40-25-4 to expense any costs to fulfill a contract and costs to obtain a contract as they are incurred when the amortization period would have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects and certain Cloud services. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Communications projects. The following table presents the activity for the Company’s contract assets: Successor Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — $ — $ — $ — $ — $ — $ — Additions 0.2 0.3 0.5 0.8 — 0.8 1.0 0.3 1.3 Amortization — — — — — — — — — Balance as of September 30, 2021 $ 0.2 $ 0.3 $ 0.5 $ 0.8 $ — $ 0.8 $ 1.0 $ 0.3 $ 1.3 Predecessor Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Balance as of December 31, 2020 $ 3.5 $ 3.9 $ 7.4 $ 15.8 $ 3.6 $ 19.4 $ 19.3 $ 7.5 $ 26.8 Additions 0.9 1.0 1.9 2.6 — 2.6 3.5 1.0 4.5 Amortization (1.9 ) (0.7 ) (2.6 ) (2.7 ) (0.4 ) (3.1 ) (4.6 ) (1.1 ) (5.7 ) Balance as of March 31, 2021 2.5 4.2 6.7 15.7 3.2 18.9 18.2 7.4 25.6 Additions 0.9 0.8 1.7 2.6 0.2 2.8 3.5 1.0 4.5 Amortization (1.9 ) (0.7 ) (2.6 ) (2.3 ) (0.3 ) (2.6 ) (4.2 ) (1.0 ) (5.2 ) Balance as of June 30, 2021 1.5 4.3 5.8 16.0 3.1 19.1 17.5 7.4 24.9 Additions 0.7 0.8 1.5 2.0 0.2 2.2 2.7 1.0 3.7 Amortization (1.4 ) (0.5 ) (1.9 ) (1.7 ) (0.4 ) (2.1 ) (3.1 ) (0.9 ) (4.0 ) Balance as of September 7, 2021 $ 0.8 $ 4.6 $ 5.4 $ 16.3 $ 2.9 $ 19.2 $ 17.1 $ 7.5 $ 24.6 Fulfillment costs and costs of acquisition were remeasured in the Successor period in accordance with ASC 805. The Company recognizes a liability for cash received upfront for IRU contracts. At September 30, 2021 and December 31, 2020, $1.7 million and $1.6 million, respectively, of contract liabilities were included in "Other current liabilities." At September 30, 2021 and December 31, 2020, $58.1 million and $26.2 million, respectively, of contract liabilities were included in "Other noncurrent liabilities." Disaggregated Revenue The following table presents revenues disaggregated by product and service lines: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Data $ 31.6 $ 91.7 $ 119.8 $ 31.6 $ 334.6 $ 358.8 Video 12.2 35.3 48.1 12.2 131.8 145.1 Voice 15.8 46.8 65.5 15.8 177.3 197.6 Other 2.1 6.6 7.6 2.1 20.5 23.0 Total Entertainment and Communications 61.7 180.4 241.0 61.7 664.2 724.5 Consulting 21.6 56.5 49.4 21.6 193.6 138.5 Cloud 6.6 18.7 21.1 6.6 66.4 63.0 Communications 14.2 40.1 53.9 14.2 149.1 160.3 Infrastructure Solutions 9.6 23.4 30.8 9.6 83.3 82.7 Total IT Services and Hardware 52.0 138.7 155.2 52.0 492.4 444.5 Intersegment revenue (2.3 ) (4.5 ) (6.7 ) (2.3 ) (17.9 ) (19.5 ) Total revenue $ 111.4 $ 314.6 $ 389.5 $ 111.4 $ 1,138.7 $ 1,149.5 The following table presents revenues disaggregated by contract type: Successor September 8, 2021 to September 30, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 2.1 $ 11.1 $ — $ 13.2 Products and Services transferred over time 58.0 40.2 — 98.2 Intersegment revenue 1.6 0.7 (2.3 ) — Total revenue $ 61.7 $ 52.0 $ (2.3 ) $ 111.4 Predecessor July 1, 2021 to September 7, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 4.1 $ 25.1 $ — $ 29.2 Products and Services transferred over time 172.9 112.5 — 285.4 Intersegment revenue 3.4 1.1 (4.5 ) — Total revenue $ 180.4 $ 138.7 $ (4.5 ) $ 314.6 Predecessor Three Months Ended September 30, 2020 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 6.6 $ 34.1 $ — $ 40.7 Products and Services transferred over time 229.5 119.3 — 348.8 Intersegment revenue 4.9 1.8 (6.7 ) — Total revenue $ 241.0 $ 155.2 $ (6.7 ) $ 389.5 Successor September 8, 2021 to September 30, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 2.1 $ 11.1 $ — $ 13.2 Products and Services transferred over time 58.0 40.2 — 98.2 Intersegment revenue 1.6 0.7 (2.3 ) — Total revenue $ 61.7 $ 52.0 $ (2.3 ) $ 111.4 Predecessor January 1, 2021 to September 7, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 15.8 $ 90.1 $ — $ 105.9 Products and Services transferred over time 635.3 397.5 — 1,032.8 Intersegment revenue 13.1 4.8 (17.9 ) — Total revenue $ 664.2 $ 492.4 $ (17.9 ) $ 1,138.7 Predecessor Nine Months Ended September 30, 2020 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 19.1 $ 93.2 $ — $ 112.3 Products and Services transferred over time 690.6 346.6 — 1,037.2 Intersegment revenue 14.8 4.7 (19.5 ) — Total revenue $ 724.5 $ 444.5 $ (19.5 ) $ 1,149.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment is comprised of the following: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Depreciable Lives (Years) Land and rights-of-way $ 132.3 $ 115.7 20 – Indefinite Buildings and leasehold improvements 184.8 323.8 5 – 40 Network equipment 1,498.6 4,180.0 2 – 50 Office software, furniture, fixtures and vehicles 89.6 243.7 2 – 14 Construction in process 73.4 60.4 n/a Gross value 1,978.7 4,923.6 Accumulated depreciation (21.8 ) (3,194.5 ) Property, plant and equipment, net $ 1,956.9 $ 1,729.1 In connection with the Merger, a fair value step-up of $162.1 million was recorded to property, plant and equipment (“PP&E”). The estimated fair value of the PP&E was determined using Level 3 inputs within the fair value hierarchy, as described in Note 8. A combination of cost and market approaches were used to estimate the fair values of the PP&E as of the Merger Date. The depreciable lives of property, plant and equipment remained consistent in the Successor period as compared to the Predecessor period. See Note 2 for additional information regarding the Merger. Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $21.8 million in the Successor period and $49.4 million and $185.0 million, respectively, in the Predecessor periods included within the three and nine months ended September 30, 2021. Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $68.3 million and $210.0 million, respectively, for the three and nine months ended September 30, 2020. No asset impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill The changes in the Company's goodwill consisted of the following: Successor (dollars in millions) IT Services and Hardware Entertainment and Communications Total Company Goodwill, balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — Activity during the year: Merger 157.4 488.9 646.3 Goodwill, balance as of September 30, 2021 $ 157.4 $ 488.9 $ 646.3 Predecessor (dollars in millions) IT Services and Hardware Entertainment and Communications Total Company Goodwill, balance as of December 31, 2020 $ 149.1 $ 12.4 $ 161.5 Activity during the year: Currency translations 0.7 — 0.7 Goodwill, balance as of September 7, 2021 $ 149.8 $ 12.4 $ 162.2 As mentioned in Note 2, in connection with the Merger, the Company’s assets and liabilities were measured at fair value as of the date of the Merger. The allocation of goodwill to our Entertainment and Communications reporting unit and IT Services and Hardware reporting unit is preliminary as of the date of this filing. No impairment losses were recognized in goodwill for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 Intangible Assets The Company’s intangible assets consisted of the following: Successor Predecessor September 30, 2021 December 31, 2020 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 850.0 $ (7.1 ) $ 842.9 $ 141.6 $ (38.9 ) $ 102.7 Trade names 108.0 (1.2 ) 106.8 41.7 (9.4 ) 32.3 Technology 5.0 (0.1 ) 4.9 9.9 (3.2 ) 6.7 Total 963.0 (8.4 ) 954.6 193.2 (51.5 ) 141.7 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 6.6 — 6.6 6.4 — 6.4 Total intangible assets $ 969.6 $ (8.4 ) $ 961.2 $ 199.6 $ (51.5 ) $ 148.1 I n connection with the Merger, the company recorded $969.6 million of intangible assets, as shown in the table above, representing the fair values at the Merger Date. See Note 2 for additional information regarding the Merger. In the Successor period, amortization expense for finite-lived intangible assets was $8.4 million. In the Predecessor periods included within the three and nine months ended September 30, 2021, amortization expense for finite-lived intangible assets was $2.7 million and $9.9 million, respectively. In the three and nine months ended September 30, 2020, amortization expense for finite-lived intangible assets was $3.6 million and $10.8 million, respectively. No impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 The estimated useful lives for each finite-lived intangible asset class are as follows: Successor Predecessor September 30, 2021 December 31, 2020 Customer relationships 15 years 8 to 15 years Trade names 3 to 10 years 10 to 15 years Technology 7 years 10 years The annual estimated amortization expense for future years is as follows: (dollars in millions) Three months ended December 31, 2021 $ 33.0 2022 120.0 2023 112.9 2024 103.8 2025 92.1 Thereafter 492.8 Total $ 954.6 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | 6. Debt and Other Financing Arrangements The Company’s debt consists of the following: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Current portion of long-term debt: Corporate Credit Agreement - Tranche B Term Loan due 2024 $ — $ 6.0 Credit Agreement - Term Loan due 2028 1.5 — Paniolo Fiber Assets Financing Arrangement 0.5 — Other financing arrangements 0.9 1.9 Finance lease liabilities 10.1 13.9 Current portion of long-term debt 13.0 21.8 Long-term debt, less current portion: Receivables Facility 75.1 182.0 Corporate Credit Agreement - Revolving Credit Facility — 67.0 Credit Agreement - Revolving Credit Facility due 2026 — — Credit Agreement - Tranche B Term Loan due 2024 — 580.5 Credit Agreement - Term Loan due 2028 148.5 — 7 1/4 (1) 24.3 22.3 7% Senior Notes due 2024 (1) 637.2 625.0 8% Senior Notes due 2025 (1) 365.5 350.0 Various Cincinnati Bell Telephone notes (1) 97.8 87.9 Paniolo Fiber Assets Financing Arrangement 22.4 — Other financing arrangements 0.5 0.9 Finance lease liabilities 47.1 52.1 1,418.4 1,967.7 Net unamortized premium (2) — 1.1 Unamortized note issuance costs (3) (35.5 ) (18.9 ) Long-term debt, less current portion 1,382.9 1,949.9 Total debt $ 1,395.9 $ 1,971.7 (1) As of September 30, 2021, the net carrying amounts of the 7 ¼ (2) Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period. (3) Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below. The estimated fair value of the Company’s borrowings, was determined using Level 2 inputs within the fair value hierarchy, as described in Note 8. Based on closing or estimated market prices of the Company’s debt, a fair-value step-up of $39.6 million was recorded as of the Merger Date. Consent Solicitation for 7.000% Senior Notes due 2024 and 8.000% Senior Notes due 2025 On July 2, 2020, the Company announced the successful completion of the consent solicitations with respect to certain proposed amendments to the change of control provisions contained in the (i) indenture, dated as of September 22, 2016 (as supplemented and amended, the “2024 Notes Indenture”) governing its 7.000% Senior Notes due 2024 (the “2024 Notes”) and (ii) indenture, dated as of October 6, 2017 (as supplemented and amended, the “2025 Notes Indenture,” and together with the 2024 Notes Indenture, the “Indentures”) governing its 8.000% Senior Notes due 2025 (the “2025 Notes,” and together with the 2024 Notes, the “Notes”). On July 2, 2020, the Company, certain of the Company’s subsidiaries, as guarantors, and Regions Bank, as trustee, entered into supplemental indentures to the Indentures to effectuate the amendments, which became operative substantially concurrently with the consummation of the Merger on September 7, 2021, when the Company paid the consent fees that totaled $3.9 million to the holders of the Notes. These fees were capitalized as a reduction to the outstanding debt balances as of the Merger Date. Credit Agreement (effective 2021) In connection with the Merger Agreement, at the Effective Time (the date on which the Effective Time occurred, the “Closing Date”) the Company entered into a new Credit Agreement (the "Credit Agreement") and terminated the existing Corporate Credit Agreement. The Credit Agreement provides for (i) a five-year seven-year Borrowings under the Term Loan due 2028 • a base rate determined by reference to the highest of (i) the Federal Funds Rate (determined for any day as the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus 1/2 the rate of interest in effect for such day as publicly announced from time to time by Goldman Sachs as its “prime rate” in effect at its principal office in New York City and notified to the Company, to the extent ascertainable, the one month Eurocurrency rate plus 1.00% • a Eurocurrency rate determined by reference to the London interbank offered rate for dollars for the relevant interest period, adjusted for statutory reserve requirements, plus 4.25%. From and after the delivery by the Company to the administrative agent for the Credit Agreement of financial statements for the first fiscal quarter ended after the Closing Date, the applicable margin over the base rate or Eurocurrency rate for the Term Loan due 2028 The Company incurred deferred financing costs of $32.0 million related to the issuance of the Term Loan due 2028 and capitalized as a reduction to the outstanding debt balances as of the Merger Date. Borrowings under the Revolving Credit Facility due 2026 • a base rate determined by reference to the highest of (i) the Federal Funds Rate (determined for any day as the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus 1/2 of 1 • a Eurocurrency From and after the delivery by the Company to the administrative agent for the Credit Agreement of financial statements for the first fiscal quarter ended after the Closing Date, the applicable margin over the base rate or Eurocurrency rate for the Revolving Credit Facility due 2026 The base rate and Eurodollar rate for the Term Loan due 2028 and the Revolving Credit Facility due 2026 (collectively, the “Facilities”) In addition, the Company will be required to pay a commitment fee on any unused portion of the Revolving Credit Facility due 2026 at a rate of 0.50% per annum, or, if the Secured Net Leverage Ratio for the most recent four fiscal quarter period for which financial statements have been delivered One of the syndicated lenders in the Credit Agreement is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company’s average outstanding loan balance. The Company will recognize the patronage, generally as declared, in “Other (income) expense, net.” The stock component will be recognized at its stated cost basis. The Company may voluntarily repay and reborrow outstanding loans under the Revolving Credit Facility due 2026 at any time without a premium or a penalty, other than customary “breakage” costs with respect to LIBOR revolving loans. In addition, certain of our variable rate debt, including debt under the Credit Agreement and the Receivables Facility, uses LIBOR as one of the benchmarks for establishing the rate of interest and may be hedged with LIBOR-based interest rate derivatives. LIBOR is the subject of recent regulatory guidance and proposals for reform. These reforms and other pressures may cause LIBOR to be replaced with a new benchmark in the future or to perform differently than in the past. The consequences of these developments cannot be entirely predicted, but could include an increase in the cost of our variable rate indebtedness. The Company incurred deferred financing costs of $6.1 million related to the issuance of the Revolving Credit Facility due 2026 and capitalized to “Other noncurrent assets” on the Condensed Consolidated Balance Sheets as of the Merger Date In November 2021, the Company entered into an Amendment (the “Amendment No. 1”) to its current Credit Agreement to provide for, among other things, (i) a $125 million upsize to the Revolving Credit Facility, increasing the Revolving Credit Facility to $400 million, (ii) a $350 million incremental increase to its existing Term Loan (the “Incremental Term Loan Increase”), increasing the total existing Term Loan facility to $500 million and (iii) the incurrence of a new tranche of $650 million senior secured term loans (the “Term B-2 Loans”). The proceeds of the Incremental Term Loan Increase and the Term B-2 Loans were deposited into an escrow account and will be used by the Company to satisfy, discharge and redeem in full all of the Company’s existing (x) 7.000% Senior Notes due 2024 (the “2024 Notes”) and (y) 8.000% Senior Notes due 2025 (the “2025 Notes”), and to pay fees and expenses in connection with the redemption of the 2024 Notes and the 2025 Notes. The Term B-2 Loans mature in November 2028. The Amendment No. 1 also extended the maturity of the Term Loans (including the Incremental Term Loan Increase) to November 2028 and reduced the interest applicable to the Term Loans and the Revolving Credit Facility. Guarantors and Security Interests, Credit Agreement All obligations under the Facilities are unconditionally guaranteed by the direct parent of the Company and each of the existing and future direct and indirect material, wholly-owned domestic subsidiaries of the Company, subject to certain exceptions (including for Cincinnati Bell Funding LLC, Cincinnati Bell Funding Canada Ltd. (and any other similar special purpose receivables financing subsidiary), the Company's joint ventures, subsidiaries prohibited by applicable law or contractual obligation from becoming guarantors, immaterial subsidiaries, unrestricted subsidiaries, foreign subsidiaries, and other customary exceptions as more fully described in the Credit Agreement. Obligations outstanding under the Credit Agreement are secured by perfected first priority pledges of and security interests in (i) the equity interests of the Company held by its direct parent and (ii) substantially all of the assets of the Company and each subsidiary guarantor (subject to customary exceptions as more fully described in the Credit Agreement), including equity interests of each subsidiary guarantor under the Credit Agreement. Corporate Credit Agreement (effective 2017) In connection with the Merger Agreement, at the Effective Time, the outstanding loans under the Corporate Credit Agreement, dated as of October 2, 2017, were paid in full together with accrued interest and unpaid fees. As a result of the Company terminating the Corporate Credit Agreement, certain previously deferred costs and unamortized discount associated with the Corporate Credit Agreement’s Revolving Credit Facility and Tranche B Term Loan due 2024 were written off in the Predecessor period. The loss on extinguishment of debt associated with the transaction was $10.7 million. Paniolo Fiber Assets Financing In connection with the Paniolo Acquisition in the third quarter of 2021, the Company’s wholly-owned subsidiary, Hawaiian Telcom Inc. (“HTI”), entered into a purchase money financing agreement to finance a portion of the Paniolo Acquisition. The Paniolo fiber assets financing arrangement provides for a five-year Accounts Receivable Securitization Facility As of September 30, 2021, the Company had $75.1 million in borrowings and $14.8 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $125.1 million remaining availability on the total borrowing capacity of $215.0 million. In the second quarter of 2021, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit availability and renew the facility. The amendments extended the facility’s renewal date until June 2023 and the facility’s termination date to June 2024. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was increased from $200.0 million to $215.0 million in the aggregate. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. In addition, the amendments removed the provision that the LIBOR rate for the Receivables Facility may not fall below 0.75%. Under the Receivables Facility, certain U.S. and Canadian subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”) or Cincinnati Bell Funding Canada Ltd. ("CBFC"), wholly-owned consolidated subsidiaries of the Company. Although CBF and CBFC are wholly-owned consolidated subsidiaries of the Company, CBF and CBFC are legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF or CBFC, such accounts receivable are legally assets of CBF and CBFC and, as such, are not available to creditors of other subsidiaries or the parent company. The Receivables Facility includes an option for CBF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of September 30, 2021, the outstanding balance of certain accounts receivable sold, rather than borrowed against, was $3.9 million. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 7 . Leases Lessee Disclosures The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers and fleet vehicles. Supplemental balance sheet information related to the Company's leases is as follows: Successor Predecessor (dollars in millions) Balance Sheet Location September 30, 2021 December 31, 2020 Operating lease assets, net of amortization Operating lease right-of-use assets $ 41.4 $ 37.4 Finance lease assets, net of amortization Property, plant and equipment, net 15.4 28.0 Operating lease liabilities: Current operating lease liabilities Other current liabilities 8.8 9.6 Noncurrent operating lease liabilities Operating lease liabilities 38.0 33.6 Total operating lease liabilities 46.8 43.2 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 10.1 13.9 Noncurrent finance lease liabilities Long-term debt, less current portion 47.1 52.1 Total finance lease liabilities $ 57.2 $ 66.0 . Supplemental cash flow information related to leases is as follows: Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 2.9 $ 3.3 Operating cash flows from operating leases $ 0.8 $ 7.2 $ 9.5 Financing cash flows from finance leases $ 1.2 $ 9.9 $ 13.9 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ — $ 11.5 $ 6.8 New finance leases $ — $ 3.8 $ 4.0 Sale-Leaseback Disclosures On August 31, 2021, the Company simultaneously exercised its bargain purchase option on real property located in Cincinnati, Ohio, previously classified as a finance lease, and sold it to a third party for $9.1 million. Net proceeds from the transactions were approximately $6.6 million after transactional costs. Concurrently with the sale, the Company entered into an operating lease arrangement with the third party purchaser of the property for a portion of the building to maintain use of the location as an office space. The transaction qualified for sale-leaseback accounting in accordance with ASC 842, and the Company recognized a gain on the sale of $2.8 million in August, 2021. The Company recorded an operating lease right-of-use asset and liability of $7.7 million related to the leaseback agreement on September 1, 2021. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 8. Financial Instruments and Fair Value Measurements Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. To increase consistency and comparability in fair value measurements, the Company uses a three-level hierarchy that prioritizes the use of observable inputs. The three levels are: Level 1 — Quoted market prices for identical instruments in an active market; Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and Level 3 — Unobservable inputs that reflect management's determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data. The determination of where an asset or liability falls in the hierarchy requires significant judgment. Interest Rate Swaps The Company uses interest rate swap agreements to minimize its exposure to interest rate fluctuations on variable rate debt borrowings. Interest rate swaps involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the underlying notional amounts between parties. In the second quarter of 2018, the Company entered into one forward starting non-amortizing interest rate swap with a notional amount of $300.0 million to convert variable rate debt to fixed rate debt. The interest rate swap became effective in June 2018 with an expiration date in June 2023. The interest rate swap resulted in interest payments based on an average fixed rate of 2.938% plus the applicable margin per the requirements in the Corporate Credit Agreement. In the first quarter of 2019, the Company entered into three forward starting non-amortizing interest rate swaps, with a notional amount of $89.0 million each, to convert variable rate debt to fixed rate debt. The interest rate swaps became effective in March 2019 with expiration dates in March 2024. The interest rate swaps resulted in interest payments based on an average fixed rate per swap of 2.275%, 2.244% and 2.328% plus the applicable margin per the requirements in the Corporate Credit Agreement. Upon inception, the interest rate swaps were designated as cash flow hedges under ASC 815, with gains and losses, net of tax, measured on an ongoing basis recorded in accumulated other comprehensive loss. The fair value of the interest rate swaps was categorized as Level 2 in the fair value hierarchy as they were based on well-recognized financial principles and available market data. The Company terminated four interest rate swaps in the Predecessor period in connection with the repayment in full of the Term Loan B under the Corporate Credit Agreement that occurred as part of the Merger Agreement. As a result of the repayment, the hedged interest payments were no longer considered probable of occurring and a loss on termination of $20.1 million that had been previously recorded to Accumulated Other Comprehensive Income ("AOCI") was recorded in the Predecessor period in “Other (income) expense, net” on the Condensed Consolidated Statements of Operations. Cash payments resulting from the termination of the interest rate swaps are classified as operating activities in the Company’s Condensed Consolidated Statement of Cash Flows. As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows: Predecessor (dollars in millions) Balance Sheet Location December 31, 2020 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 9.3 $ — $ 9.3 $ — Interest Rate Swap Other noncurrent liabilities $ 16.1 $ — $ 16.1 $ — The amount of gains (losses) recognized in AOCI (effective portion) net of reclassifications into earnings is as follows: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Interest Rate Swap $ — $ — $ 1.7 $ — $ 5.3 $ (8.6 ) The amount of losses reclassified from AOCI into earnings is as follows: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) Statement of Operations Location September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Interest Rate Swap Other (income) expense, net $ — $ (20.1 ) $ — $ — $ (20.1 ) $ — Interest Rate Swap Interest expense $ — $ (0.8 ) $ (2.3 ) $ — $ (5.4 ) $ (6.0 ) Disclosure on Financial Instruments The carrying values of the Company's financial instruments approximate the estimated fair values as of September 30, 2021 and December 31, 2020, except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows: Successor Predecessor September 30, 2021 December 31, 2020 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,372.8 $ 1,370.5 $ 1,921.8 $ 1,973.4 Other financing arrangements 53.8 53.8 42.1 58.6 *Excludes finance leases, other financing arrangements and note issuance costs. In connection with the Merger, the Successor period carrying values of the Company’s long-term debt and other financing arrangements include fair value adjustments as of the Merger Date. The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at September 30, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. As of September 30, 2021, the current borrowing rate was estimated by applying the Company's credit spread to the risk-free rate for a similar duration borrowing. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | 9. Pension and Postretirement Plans As of September 30, 2021, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Cincinnati (collectively the "Cincinnati Plans"), and one noncontributory defined benefit plan for union employees, one cash balance pension plan for nonunion employees, and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively the "Hawaii Plans"). In connection with the Merger, the Company remeasured the pension and postretirement projected benefit obligations as of the Merger Date. As a result, the Company's pension and postretirement benefit obligations decreased $22.3 million and $4.3 million, respectively. The decrease in the benefit obligations is primarily driven by changes in the discount rate as well as gains to record pension assets to fair value. Additionally, actuarial gains (losses) and prior service costs (benefits) recorded in "Accumulated other comprehensive loss" of $101.6 million were remeasured as of the Merger Date. In the periods July 1, 2021 to September 7, 2021 and January 1, 2021 to September 7, 2021, the Hawaii defined benefit plan for union employees made lump sum payments of $0.8 million and $7.4 million, respectively, resulting in a reduction of the benefit obligation of $7.4 million. The lump sum payments to the plan participants exceeded the sum of the service cost and the interest cost component of the net pension cost resulting in a nominal pension settlement cost for the period January 1, 2021 to September 7, 2021. In the three and nine months ended September 30, 2020, the Hawaii defined benefit plans made lump sum payments of $3.4 million and $10.8 million, respectively, resulting in a reduction of the benefit obligation of $10.8 million. The Company recorded a pension settlement cost of $1.1 million in the nine months ended September 30, 2020 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost. In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for all periods presented. Unrecognized actuarial net gains and losses for the Cincinnati Plans and the Hawaii Plans are primarily generated by differences between assumed and actual rates of return on invested assets, changes in discount rates and healthcare costs. Because gains and losses reflect refinements in estimates, as well as real changes in economic values, and because some gains in one period may be offset by losses in another or vice versa, we are not required to recognize these gains and losses in the periods that they occur. Instead, if the gains and losses exceed a 10% corridor defined in the accounting literature, the excess is amortized over a defined term. In conjunction with remeasuring the pension and postretirement benefit obligations, the amortization period for the Cincinnati pension plans in the Successor period was updated to amortize the excess over the average remaining life expectancy of plan participants from the average future working lifetime which was utilized in the Predecessor period. This change is not expected to have an impact in the 2021 Successor period as gains or losses will not be generated until December 31, the next measurement date. Additionally in the Successor period, the market-related value of assets is equal to the fair market value. Previously, the market-related value of assets was determined using a five-year moving market average method. Except for these changes described related to the Cincinnati pension plans, no other changes to methodology were made in the Successor period as a result of the Merger. Pension and postretirement costs (benefits) are as follows: Pension Benefits Postretirement and Other Benefits Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 Service cost $ — $ — $ — $ — $ 0.1 $ 0.1 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 0.9 2.7 4.6 0.1 0.5 0.9 Expected return on plan assets (2.1 ) (5.2 ) (7.1 ) — — — Amortization of: Prior service benefit — — — — (0.4 ) (0.6 ) Actuarial loss — 4.5 4.5 — — 0.3 Pension / postretirement costs $ (1.2 ) $ 2.0 $ 2.0 $ 0.1 $ 0.2 $ 0.7 Pension Benefits Postretirement and Other Benefits Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Service cost $ — $ — $ — $ — $ 0.3 $ 0.3 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 0.9 10.2 14.2 0.1 1.8 2.8 Expected return on plan assets (2.1 ) (19.9 ) (21.6 ) — — — Amortization of: Prior service benefit — — — — (1.7 ) (1.9 ) Actuarial loss — 16.0 13.5 — — 0.9 Pension settlement charges — — 1.1 — — — Pension / postretirement costs $ (1.2 ) $ 6.3 $ 7.2 $ 0.1 $ 0.4 $ 2.1 Amortizations of prior service benefit and actuarial loss in the Predecessor periods represent reclassifications from accumulated other comprehensive income. In conjunction with remeasuring the pension and postretirement benefit obligations, the weighted-average assumptions used in accounting for and measuring the projected benefit obligations as of the date of the Merger were reviewed and determined to still be appropriate with the exception of the discount rates. The following are the weighted-average discount rate assumptions used in accounting for and measuring the projected benefit obligations: Pension Benefits Postretirement and Other Benefits Successor Predecessor Successor Predecessor September 8, 2021 December 31, 2020 September 8, 2021 December 31, 2020 Cincinnati plans 2.60% 2.40% 2.60% 2.40% Hawaii plans 2.50% 2.30% 2.80% 2.60% Contributions to the qualified and non-qualified pension plans in the Predecessor period were $0.9 million and $1.8 million, respectively. In the Successor period, there were no contributions to the qualified pension plans and contributions to the non-qualified pension plans were $0.2 million. For the nine months ended September 30, 2020, contributions to the qualified and non-qualified pension plans were $2.8 million and $2.0 million, respectively. Based on current assumptions, no additional contributions are expected to be made to the qualified pension plans in 2021. Contributions to the non-qualified pension plans in 2021 are expected to be approximately $3 million. For the Predecessor and Successor periods in 2021, contributions to our postretirement plans were $4.3 million and $0.5 million, respectively. For the nine months ended September 30, 2020, contributions to our postretirement plans were $4.3 million. Management expects to make cash payments of approximately $8 million related to its postretirement health plans in 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes As of September 30, 2021, the Company had a deferred tax asset of $6.9 million and a deferred tax liability of $147.7 million compared to a deferred tax asset of $82.5 million and a deferred tax liability of $10.9 million as of December 31, 2020. The increase to net deferred tax liabilities is a result of preliminary adjustments on the Merger Date due to the change in fair value of certain assets and liabilities. The most significant adjustments are driven by the increase in value of the Company’s intangibles (other than goodwill) and increase in value related to fixed assets. These were offset, in part, by deferred tax assets related to the initial fair value adjustments which included note issuance and other debt-related costs, costs of acquisition and fulfillment costs that were deferred in accordance with ASC 606, and other deferred tax assets. As of September 30, 2021, the Company had U.S. federal net operating loss carryforwards of $848.5 million with a deferred tax asset value of $178.2 million. U.S. tax laws place limitations on the annual utilization of tax loss carryforwards of acquired entities, as well as on losses generated in tax years prior to 2018. Approximately $55.8 million of federal tax loss carryforwards will expire in 2022 if unused. Tax law limitations should not materially impact utilization of the Company’s tax loss carryforwards. |
Shareowners' Equity (Deficit)
Shareowners' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2021 | |
Shareowners Deficit [Abstract] | |
Shareowners' Equity (Deficit) | 11. Shareowners' Equity (Deficit) Pursuant to the Merger Agreement, Parent acquired all of the equity interests in the Company. In connection with the consummation of the Merger Agreement, each of our issued and outstanding Common Shares was converted to $15.50 in cash per Common Share and paid to the shareholders. On September 22, 2021, the Company redeemed each of our issued and outstanding Depositary Shares simultaneously with the redemption of the 6 ¾% 6 ¾ As of September 30, 2021, Parent is the sole shareholder of the Company’s 500,000 Common Shares, each with $0.01 par value. No other shares remain issued and outstanding subsequent to the Closing Date. Subsequent to September 30, 2021, Parent amended and restated the articles of incorporation of Cincinnati Bell effective October 18, 2021 to reduce the number of authorized shares from 96,000,000 Common Shares to 100 Common Shares, each with $0.01 par value. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component were as follows: (dollars in millions) Successor Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation (Loss) Gain Total Balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — $ — Foreign currency loss — — (1.2 ) (1.2 ) Balance as of September 30, 2021 $ — $ — $ (1.2 ) $ (1.2 ) Predecessor Balance as of June 30, 2021 $ (124.9 ) $ (15.7 ) $ 1.4 $ (139.2 ) Reclassifications, net 2.8 (a) 16.2 (b) — 19.0 Unrealized loss on cash flow hedges arising during the period, net — (0.6 ) (c) — (0.6 ) Foreign currency loss — — (1.4 ) (1.4 ) Balance as of September 7, 2021 $ (122.1 ) $ (0.1 ) $ — $ (122.2 ) Balance as of June 30, 2020 $ (159.4 ) $ (22.7 ) $ (7.5 ) $ (189.6 ) Remeasurement of benefit obligations 3.2 — — 3.2 Reclassifications, net 3.2 (a) 1.8 (b) — 5.0 Unrealized loss on cash flow hedges arising during the period, net — (0.5 ) (c) — (0.5 ) Foreign currency gain — — 2.0 2.0 Balance as of September 30, 2020 $ (153.0 ) $ (21.4 ) $ (5.5 ) $ (179.9 ) (dollars in millions) Successor Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation (Loss) Gain Total Balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — $ — Foreign currency loss — — (1.2 ) (1.2 ) Balance as of September 30, 2021 $ — $ — $ (1.2 ) $ (1.2 ) Predecessor Balance as of December 31, 2020 $ (138.8 ) $ (19.7 ) $ (1.2 ) $ (159.7 ) Remeasurement of benefit obligations 6.0 — — 6.0 Reclassifications, net 10.7 (a) 19.7 (b) — 30.4 Unrealized loss on cash flow hedges arising during the period, net — (0.1 ) (c) — (0.1 ) Foreign currency gain — — 1.2 1.2 Balance as of September 7, 2021 $ (122.1 ) $ (0.1 ) $ — $ (122.2 ) Balance as of December 31, 2019 $ (152.0 ) $ (14.7 ) $ (3.4 ) $ (170.1 ) Remeasurement of benefit obligations (11.5 ) — — (11.5 ) Reclassifications, net 10.5 (a) 4.6 (b) — 15.1 Unrealized loss on cash flow hedges arising during the period, net — (11.3 ) (c) — (11.3 ) Foreign currency loss — — (2.1 ) (2.1 ) Balance as of September 30, 2020 $ (153.0 ) $ (21.4 ) $ (5.5 ) $ (179.9 ) (a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax ( b) These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings. (c ) The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | 12. Business Segment Information The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Company operates two business segments identified as Entertainment and Communications and IT Services and Hardware. The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength, digital signal and IRU. Video services provide our customers access to over 400 entertainment channels, over 150 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a live TV streaming application. Voice represents traditional voice lines as well as fiber voice lines, consumer long distance, switched access and digital trunking. Other services consist of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services. The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions. Certain corporate administrative expenses have been allocated to the segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated. Selected financial data for the Company’s business segment information is as follows: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Revenue Entertainment and Communications $ 61.7 $ 180.4 $ 241.0 $ 61.7 $ 664.2 $ 724.5 IT Services and Hardware 52.0 138.7 155.2 52.0 492.4 444.5 Intersegment (2.3 ) (4.5 ) (6.7 ) (2.3 ) (17.9 ) (19.5 ) Total revenue $ 111.4 $ 314.6 $ 389.5 $ 111.4 $ 1,138.7 $ 1,149.5 Intersegment revenue Entertainment and Communications $ 1.6 $ 3.4 $ 4.9 $ 1.6 $ 13.1 $ 14.8 IT Services and Hardware 0.7 1.1 1.8 0.7 4.8 4.7 Total intersegment revenue $ 2.3 $ 4.5 $ 6.7 $ 2.3 $ 17.9 $ 19.5 Operating (loss) income Entertainment and Communications $ (2.3 ) $ 18.9 $ 27.2 $ (2.3 ) $ 78.3 $ 69.8 IT Services and Hardware 1.7 9.0 4.6 1.7 25.2 11.5 Corporate (0.8 ) (63.2 ) (7.1 ) (0.8 ) (75.8 ) (49.1 ) Total operating (loss) income $ (1.4 ) $ (35.3 ) $ 24.7 $ (1.4 ) $ 27.7 $ 32.2 Expenditures for long-lived assets* Entertainment and Communications $ 33.4 $ 92.0 $ 57.6 $ 33.4 $ 199.8 $ 144.2 IT Services and Hardware 3.3 4.0 3.9 3.3 15.9 16.7 Corporate 1,620.7 — — 1,620.7 — — Total expenditures for long-lived assets $ 1,657.4 $ 96.0 $ 61.5 $ 1,657.4 $ 215.7 $ 160.9 Depreciation and amortization Entertainment and Communications $ 24.3 $ 44.5 $ 61.6 $ 24.3 $ 166.9 $ 190.0 IT Services and Hardware 5.8 7.6 10.2 5.8 27.9 30.7 Corporate 0.1 — 0.1 0.1 0.1 0.1 Total depreciation and amortization $ 30.2 $ 52.1 $ 71.9 $ 30.2 $ 194.9 $ 220.8 * Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020 Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Assets Entertainment and Communications $ 2,885.3 $ 1,803.3 IT Services and Hardware 844.9 477.2 Corporate and eliminations 360.2 388.1 Total assets $ 4,090.4 $ 2,668.6 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events On May 2, 2022, the Company acquired Agile Networks LLC, based in Canton, Ohio, for approximately $65 million. Agile Networks LLC provides internet, co-location and data transport services primarily to customers in Ohio and Pennsylvania. We are currently in the process of assessing the accounting for this transaction and will disclose our preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed in the second quarter ended June 30, 2022. |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, other comprehensive income, financial position and cash flows for each period presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Company’s Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. |
Business Combination | Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”) , “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions. |
Use of Estimates | Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. |
Accounting Policies | Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company’s accounting policies in the Successor Period are consistent with the accounting policies in the Predecessor Period. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash consists of funds held in an escrow account associated with the acquisition of substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 2 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 5.4 $ 12.2 Restricted cash included in Other noncurrent assets — 5.0 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 5.4 $ 17.2 |
Restructuring Liability | Restructuring Liability — As of September 30, 2021, restructuring liabilities have been established for employee separations. As of September 30, 2021 and December 31, 2020, $0.1 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets |
Income Taxes | Income taxes — In accordance with ASC 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of permanent items such as nondeductible transaction costs, portions of officers’ compensation, and meals and entertainment expenses that are not fully deductible for tax. |
Operating Taxes | Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price. |
Stock-Based Compensation | Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the requisite service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, expected holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire. In connection with the consummation of the Merger, certain previously granted stock-based awards vested on the Closing Date per the terms of the change of control clauses in each plan and were paid at the share purchase price of $15.50. As a result, the following awards vested and were paid on the date of acquisition: (i) time-based restricted stock units and performance-based stock units associated with the 2019 – 2021 long-term incentive plan granted under the 2017 Long-Term Incentive Plan; (ii) time-based restricted stock units granted to non-employee directors in 2020 under the 2017 Stock Plan for Non-Employee Directors; and (iii) time-based restricted stock units granted under the Hawaiian Telcom 2010 Equity Incentive Plan in the first quarter of 2018 which the Company assumed responsibility for the eventual payout upon the acquisition of Hawaiian Telcom. Due to the accelerated vesting and cash payment of these awards, the Company recorded additional compensation expense of $9.3 million to “Selling, general and administrative” expense in the Predecessor period on the Condensed Consolidated Statements of Operations. As of September 30, 2021, there are no outstanding awards granted under the 2017 Long-Term Incentive Plan, 2017 Stock Plan for Non-Employee Directors and Hawaiian Telcom 2010 Equity Incentive Plan. The Company granted cash-settled awards of $10.5 million in 2020 that originally vested at the end of a three year period. In accordance with the terms of these awards, vesting and payment of the first 25% of the award was accelerated with the consummation of the Merger. The awards remain outstanding in the Successor period and will be paid out 25% at the six month anniversary of the Closing Date and 50% will be paid out on the 18 month anniversary of the Closing Date. The remaining unrecognized compensation expense for the cash-settled awards will be recognized ratably over the remaining 18 months of the award. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740) Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. |
Revenue | The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States ("SEA-US") trans-Pacific submarine cable system. Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, typically have contracts with a duration of one to five years and automatically renew on a month-to-month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year. Contracts associated with the SEA-US cable system typically range from 15 to 25 years and payment is prepaid. The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with varied renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time. The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays for such good or service will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("Hawaiian Telcom"), the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts typically have a duration ranging from 15 to 25 years. |
Fair Value Measurement | The fair value of the interest rate swaps was categorized as Level 2 in the fair value hierarchy as they were based on well-recognized financial principles and available market data.In connection with the Merger, the Successor period carrying values of the Company’s long-term debt and other financing arrangements include fair value adjustments as of the Merger Date. The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at September 30, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. |
Description of Business and A_3
Description of Business and Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 5.4 $ 12.2 Restricted cash included in Other noncurrent assets — 5.0 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 5.4 $ 17.2 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) - Cincinnati Bell Inc. [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Schedule of Consideration | The purchase price for Cincinnati Bell Inc. consisted of the following: (dollars in millions) Cash consideration for Cincinnati Bell Inc. stock $ 807.3 Cash consideration for preferred stock 155.2 Cash consideration for debt repayment 658.2 Total purchase price $ 1,620.7 |
Purchase Price Allocation | Based on fair value estimates, the purchase price has been allocated on a preliminary basis to individual assets acquired and liabilities assumed as follows: (dollars in millions) Cincinnati Bell Inc. Assets acquired Cash $ 11.2 Receivables 318.5 Inventory, materials and supplies 56.4 Prepaid expenses 5.6 Other current assets 40.5 Property, plant and equipment 1,950.7 Operating lease right-of-use assets 42.3 Goodwill 646.3 Intangible assets 969.6 Deferred tax assets 6.9 Other noncurrent assets 20.2 Total assets acquired 4,068.2 Liabilities assumed Current portion of long-term debt 11.8 Accounts payable 381.1 Unearned revenue and customer deposits 51.2 Accrued taxes 24.6 Accrued interest 19.4 Accrued payroll and benefits 49.3 Other current liabilities 75.0 Long-term debt, less current portion 1,378.0 Operating lease liabilities 38.6 Pension and postretirement benefit obligations 151.6 Pole license agreement obligation 46.7 Deferred income tax liability 148.8 Other noncurrent liabilities 71.4 Total liabilities assumed 2,447.5 Net assets acquired $ 1,620.7 |
Preliminary Fair Values of Identifiable Intangible Assets Acquired | The preliminary fair values of the identifiable intangible assets acquired on the Merger Date were as follows: (dollars in millions) Fair Value Useful Lives Customer relationships $ 850.0 15 years Trade names 108.0 3 to 10 years Technology 5.0 7 years FCC licenses and spectrum usage rights 6.6 Indefinite Total identifiable intangible assets $ 969.6 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Expected Revenue to be Recognized for Existing IRU Contracts | The expected revenue to be recognized for existing IRU contracts is as follows: (dollars in millions) Three months ended December 31, 2021 $ 0.8 2022 4.0 2023 6.1 2024 7.9 2025 7.9 Thereafter 111.3 |
Schedule of Activity of Contract Assets | The following table presents the activity for the Company’s contract assets: Successor Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — $ — $ — $ — $ — $ — $ — Additions 0.2 0.3 0.5 0.8 — 0.8 1.0 0.3 1.3 Amortization — — — — — — — — — Balance as of September 30, 2021 $ 0.2 $ 0.3 $ 0.5 $ 0.8 $ — $ 0.8 $ 1.0 $ 0.3 $ 1.3 Predecessor Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Entertainment and Communications IT Services and Hardware Total Company Balance as of December 31, 2020 $ 3.5 $ 3.9 $ 7.4 $ 15.8 $ 3.6 $ 19.4 $ 19.3 $ 7.5 $ 26.8 Additions 0.9 1.0 1.9 2.6 — 2.6 3.5 1.0 4.5 Amortization (1.9 ) (0.7 ) (2.6 ) (2.7 ) (0.4 ) (3.1 ) (4.6 ) (1.1 ) (5.7 ) Balance as of March 31, 2021 2.5 4.2 6.7 15.7 3.2 18.9 18.2 7.4 25.6 Additions 0.9 0.8 1.7 2.6 0.2 2.8 3.5 1.0 4.5 Amortization (1.9 ) (0.7 ) (2.6 ) (2.3 ) (0.3 ) (2.6 ) (4.2 ) (1.0 ) (5.2 ) Balance as of June 30, 2021 1.5 4.3 5.8 16.0 3.1 19.1 17.5 7.4 24.9 Additions 0.7 0.8 1.5 2.0 0.2 2.2 2.7 1.0 3.7 Amortization (1.4 ) (0.5 ) (1.9 ) (1.7 ) (0.4 ) (2.1 ) (3.1 ) (0.9 ) (4.0 ) Balance as of September 7, 2021 $ 0.8 $ 4.6 $ 5.4 $ 16.3 $ 2.9 $ 19.2 $ 17.1 $ 7.5 $ 24.6 |
Schedule of Revenues Disaggregation by Product and Service Lines | The following table presents revenues disaggregated by product and service lines: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Data $ 31.6 $ 91.7 $ 119.8 $ 31.6 $ 334.6 $ 358.8 Video 12.2 35.3 48.1 12.2 131.8 145.1 Voice 15.8 46.8 65.5 15.8 177.3 197.6 Other 2.1 6.6 7.6 2.1 20.5 23.0 Total Entertainment and Communications 61.7 180.4 241.0 61.7 664.2 724.5 Consulting 21.6 56.5 49.4 21.6 193.6 138.5 Cloud 6.6 18.7 21.1 6.6 66.4 63.0 Communications 14.2 40.1 53.9 14.2 149.1 160.3 Infrastructure Solutions 9.6 23.4 30.8 9.6 83.3 82.7 Total IT Services and Hardware 52.0 138.7 155.2 52.0 492.4 444.5 Intersegment revenue (2.3 ) (4.5 ) (6.7 ) (2.3 ) (17.9 ) (19.5 ) Total revenue $ 111.4 $ 314.6 $ 389.5 $ 111.4 $ 1,138.7 $ 1,149.5 The following table presents revenues disaggregated by contract type: Successor September 8, 2021 to September 30, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 2.1 $ 11.1 $ — $ 13.2 Products and Services transferred over time 58.0 40.2 — 98.2 Intersegment revenue 1.6 0.7 (2.3 ) — Total revenue $ 61.7 $ 52.0 $ (2.3 ) $ 111.4 Predecessor July 1, 2021 to September 7, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 4.1 $ 25.1 $ — $ 29.2 Products and Services transferred over time 172.9 112.5 — 285.4 Intersegment revenue 3.4 1.1 (4.5 ) — Total revenue $ 180.4 $ 138.7 $ (4.5 ) $ 314.6 Predecessor Three Months Ended September 30, 2020 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 6.6 $ 34.1 $ — $ 40.7 Products and Services transferred over time 229.5 119.3 — 348.8 Intersegment revenue 4.9 1.8 (6.7 ) — Total revenue $ 241.0 $ 155.2 $ (6.7 ) $ 389.5 Successor September 8, 2021 to September 30, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 2.1 $ 11.1 $ — $ 13.2 Products and Services transferred over time 58.0 40.2 — 98.2 Intersegment revenue 1.6 0.7 (2.3 ) — Total revenue $ 61.7 $ 52.0 $ (2.3 ) $ 111.4 Predecessor January 1, 2021 to September 7, 2021 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 15.8 $ 90.1 $ — $ 105.9 Products and Services transferred over time 635.3 397.5 — 1,032.8 Intersegment revenue 13.1 4.8 (17.9 ) — Total revenue $ 664.2 $ 492.4 $ (17.9 ) $ 1,138.7 Predecessor Nine Months Ended September 30, 2020 (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 19.1 $ 93.2 $ — $ 112.3 Products and Services transferred over time 690.6 346.6 — 1,037.2 Intersegment revenue 14.8 4.7 (19.5 ) — Total revenue $ 724.5 $ 444.5 $ (19.5 ) $ 1,149.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment is comprised of the following: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Depreciable Lives (Years) Land and rights-of-way $ 132.3 $ 115.7 20 – Indefinite Buildings and leasehold improvements 184.8 323.8 5 – 40 Network equipment 1,498.6 4,180.0 2 – 50 Office software, furniture, fixtures and vehicles 89.6 243.7 2 – 14 Construction in process 73.4 60.4 n/a Gross value 1,978.7 4,923.6 Accumulated depreciation (21.8 ) (3,194.5 ) Property, plant and equipment, net $ 1,956.9 $ 1,729.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the Company's goodwill consisted of the following: Successor (dollars in millions) IT Services and Hardware Entertainment and Communications Total Company Goodwill, balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — Activity during the year: Merger 157.4 488.9 646.3 Goodwill, balance as of September 30, 2021 $ 157.4 $ 488.9 $ 646.3 Predecessor (dollars in millions) IT Services and Hardware Entertainment and Communications Total Company Goodwill, balance as of December 31, 2020 $ 149.1 $ 12.4 $ 161.5 Activity during the year: Currency translations 0.7 — 0.7 Goodwill, balance as of September 7, 2021 $ 149.8 $ 12.4 $ 162.2 |
Schedule of Intangible Assets | The Company’s intangible assets consisted of the following: Successor Predecessor September 30, 2021 December 31, 2020 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 850.0 $ (7.1 ) $ 842.9 $ 141.6 $ (38.9 ) $ 102.7 Trade names 108.0 (1.2 ) 106.8 41.7 (9.4 ) 32.3 Technology 5.0 (0.1 ) 4.9 9.9 (3.2 ) 6.7 Total 963.0 (8.4 ) 954.6 193.2 (51.5 ) 141.7 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 6.6 — 6.6 6.4 — 6.4 Total intangible assets $ 969.6 $ (8.4 ) $ 961.2 $ 199.6 $ (51.5 ) $ 148.1 |
Schedule of Estimated Useful Lives for Finite-lived Intangible Assets | The estimated useful lives for each finite-lived intangible asset class are as follows: Successor Predecessor September 30, 2021 December 31, 2020 Customer relationships 15 years 8 to 15 years Trade names 3 to 10 years 10 to 15 years Technology 7 years 10 years |
Schedule of Estimated Amortization Expense | The annual estimated amortization expense for future years is as follows: (dollars in millions) Three months ended December 31, 2021 $ 33.0 2022 120.0 2023 112.9 2024 103.8 2025 92.1 Thereafter 492.8 Total $ 954.6 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Current portion of long-term debt: Corporate Credit Agreement - Tranche B Term Loan due 2024 $ — $ 6.0 Credit Agreement - Term Loan due 2028 1.5 — Paniolo Fiber Assets Financing Arrangement 0.5 — Other financing arrangements 0.9 1.9 Finance lease liabilities 10.1 13.9 Current portion of long-term debt 13.0 21.8 Long-term debt, less current portion: Receivables Facility 75.1 182.0 Corporate Credit Agreement - Revolving Credit Facility — 67.0 Credit Agreement - Revolving Credit Facility due 2026 — — Credit Agreement - Tranche B Term Loan due 2024 — 580.5 Credit Agreement - Term Loan due 2028 148.5 — 7 1/4 (1) 24.3 22.3 7% Senior Notes due 2024 (1) 637.2 625.0 8% Senior Notes due 2025 (1) 365.5 350.0 Various Cincinnati Bell Telephone notes (1) 97.8 87.9 Paniolo Fiber Assets Financing Arrangement 22.4 — Other financing arrangements 0.5 0.9 Finance lease liabilities 47.1 52.1 1,418.4 1,967.7 Net unamortized premium (2) — 1.1 Unamortized note issuance costs (3) (35.5 ) (18.9 ) Long-term debt, less current portion 1,382.9 1,949.9 Total debt $ 1,395.9 $ 1,971.7 (1) As of September 30, 2021, the net carrying amounts of the 7 ¼ (2) Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period. (3) Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the Company's leases is as follows: Successor Predecessor (dollars in millions) Balance Sheet Location September 30, 2021 December 31, 2020 Operating lease assets, net of amortization Operating lease right-of-use assets $ 41.4 $ 37.4 Finance lease assets, net of amortization Property, plant and equipment, net 15.4 28.0 Operating lease liabilities: Current operating lease liabilities Other current liabilities 8.8 9.6 Noncurrent operating lease liabilities Operating lease liabilities 38.0 33.6 Total operating lease liabilities 46.8 43.2 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 10.1 13.9 Noncurrent finance lease liabilities Long-term debt, less current portion 47.1 52.1 Total finance lease liabilities $ 57.2 $ 66.0 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.3 $ 2.9 $ 3.3 Operating cash flows from operating leases $ 0.8 $ 7.2 $ 9.5 Financing cash flows from finance leases $ 1.2 $ 9.9 $ 13.9 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ — $ 11.5 $ 6.8 New finance leases $ — $ 3.8 $ 4.0 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets | As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows: Predecessor (dollars in millions) Balance Sheet Location December 31, 2020 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 9.3 $ — $ 9.3 $ — Interest Rate Swap Other noncurrent liabilities $ 16.1 $ — $ 16.1 $ — |
Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Net of Reclassification into Earnings | The amount of gains (losses) recognized in AOCI (effective portion) net of reclassifications into earnings is as follows: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Interest Rate Swap $ — $ — $ 1.7 $ — $ 5.3 $ (8.6 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount of losses reclassified from AOCI into earnings is as follows: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) Statement of Operations Location September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Interest Rate Swap Other (income) expense, net $ — $ (20.1 ) $ — $ — $ (20.1 ) $ — Interest Rate Swap Interest expense $ — $ (0.8 ) $ (2.3 ) $ — $ (5.4 ) $ (6.0 ) |
Schedule of Carrying and Fair Values by Balance Sheet Grouping | The carrying and fair values of these items are as follows: Successor Predecessor September 30, 2021 December 31, 2020 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,372.8 $ 1,370.5 $ 1,921.8 $ 1,973.4 Other financing arrangements 53.8 53.8 42.1 58.6 *Excludes finance leases, other financing arrangements and note issuance costs. |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Pension and Postretirement Costs (Benefits) | Pension and postretirement costs (benefits) are as follows: Pension Benefits Postretirement and Other Benefits Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 Service cost $ — $ — $ — $ — $ 0.1 $ 0.1 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 0.9 2.7 4.6 0.1 0.5 0.9 Expected return on plan assets (2.1 ) (5.2 ) (7.1 ) — — — Amortization of: Prior service benefit — — — — (0.4 ) (0.6 ) Actuarial loss — 4.5 4.5 — — 0.3 Pension / postretirement costs $ (1.2 ) $ 2.0 $ 2.0 $ 0.1 $ 0.2 $ 0.7 Pension Benefits Postretirement and Other Benefits Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Service cost $ — $ — $ — $ — $ 0.3 $ 0.3 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 0.9 10.2 14.2 0.1 1.8 2.8 Expected return on plan assets (2.1 ) (19.9 ) (21.6 ) — — — Amortization of: Prior service benefit — — — — (1.7 ) (1.9 ) Actuarial loss — 16.0 13.5 — — 0.9 Pension settlement charges — — 1.1 — — — Pension / postretirement costs $ (1.2 ) $ 6.3 $ 7.2 $ 0.1 $ 0.4 $ 2.1 |
Schedule of Weighted-Average Discount Rate Assumptions | The following are the weighted-average discount rate assumptions used in accounting for and measuring the projected benefit obligations: Pension Benefits Postretirement and Other Benefits Successor Predecessor Successor Predecessor September 8, 2021 December 31, 2020 September 8, 2021 December 31, 2020 Cincinnati plans 2.60% 2.40% 2.60% 2.40% Hawaii plans 2.50% 2.30% 2.80% 2.60% |
Shareowners' Equity (Deficit) (
Shareowners' Equity (Deficit) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Shareowners Deficit [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | The changes in accumulated other comprehensive loss by component were as follows: (dollars in millions) Successor Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation (Loss) Gain Total Balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — $ — Foreign currency loss — — (1.2 ) (1.2 ) Balance as of September 30, 2021 $ — $ — $ (1.2 ) $ (1.2 ) Predecessor Balance as of June 30, 2021 $ (124.9 ) $ (15.7 ) $ 1.4 $ (139.2 ) Reclassifications, net 2.8 (a) 16.2 (b) — 19.0 Unrealized loss on cash flow hedges arising during the period, net — (0.6 ) (c) — (0.6 ) Foreign currency loss — — (1.4 ) (1.4 ) Balance as of September 7, 2021 $ (122.1 ) $ (0.1 ) $ — $ (122.2 ) Balance as of June 30, 2020 $ (159.4 ) $ (22.7 ) $ (7.5 ) $ (189.6 ) Remeasurement of benefit obligations 3.2 — — 3.2 Reclassifications, net 3.2 (a) 1.8 (b) — 5.0 Unrealized loss on cash flow hedges arising during the period, net — (0.5 ) (c) — (0.5 ) Foreign currency gain — — 2.0 2.0 Balance as of September 30, 2020 $ (153.0 ) $ (21.4 ) $ (5.5 ) $ (179.9 ) (dollars in millions) Successor Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation (Loss) Gain Total Balance as of September 8, 2021 (remeasured upon Merger) $ — $ — $ — $ — Foreign currency loss — — (1.2 ) (1.2 ) Balance as of September 30, 2021 $ — $ — $ (1.2 ) $ (1.2 ) Predecessor Balance as of December 31, 2020 $ (138.8 ) $ (19.7 ) $ (1.2 ) $ (159.7 ) Remeasurement of benefit obligations 6.0 — — 6.0 Reclassifications, net 10.7 (a) 19.7 (b) — 30.4 Unrealized loss on cash flow hedges arising during the period, net — (0.1 ) (c) — (0.1 ) Foreign currency gain — — 1.2 1.2 Balance as of September 7, 2021 $ (122.1 ) $ (0.1 ) $ — $ (122.2 ) Balance as of December 31, 2019 $ (152.0 ) $ (14.7 ) $ (3.4 ) $ (170.1 ) Remeasurement of benefit obligations (11.5 ) — — (11.5 ) Reclassifications, net 10.5 (a) 4.6 (b) — 15.1 Unrealized loss on cash flow hedges arising during the period, net — (11.3 ) (c) — (11.3 ) Foreign currency loss — — (2.1 ) (2.1 ) Balance as of September 30, 2020 $ (153.0 ) $ (21.4 ) $ (5.5 ) $ (179.9 ) (a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax ( b) These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings. (c ) The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Selected Financial Data for the Company's Business Segment Information | Selected financial data for the Company’s business segment information is as follows: Successor Predecessor Predecessor Successor Predecessor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2020 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2020 Revenue Entertainment and Communications $ 61.7 $ 180.4 $ 241.0 $ 61.7 $ 664.2 $ 724.5 IT Services and Hardware 52.0 138.7 155.2 52.0 492.4 444.5 Intersegment (2.3 ) (4.5 ) (6.7 ) (2.3 ) (17.9 ) (19.5 ) Total revenue $ 111.4 $ 314.6 $ 389.5 $ 111.4 $ 1,138.7 $ 1,149.5 Intersegment revenue Entertainment and Communications $ 1.6 $ 3.4 $ 4.9 $ 1.6 $ 13.1 $ 14.8 IT Services and Hardware 0.7 1.1 1.8 0.7 4.8 4.7 Total intersegment revenue $ 2.3 $ 4.5 $ 6.7 $ 2.3 $ 17.9 $ 19.5 Operating (loss) income Entertainment and Communications $ (2.3 ) $ 18.9 $ 27.2 $ (2.3 ) $ 78.3 $ 69.8 IT Services and Hardware 1.7 9.0 4.6 1.7 25.2 11.5 Corporate (0.8 ) (63.2 ) (7.1 ) (0.8 ) (75.8 ) (49.1 ) Total operating (loss) income $ (1.4 ) $ (35.3 ) $ 24.7 $ (1.4 ) $ 27.7 $ 32.2 Expenditures for long-lived assets* Entertainment and Communications $ 33.4 $ 92.0 $ 57.6 $ 33.4 $ 199.8 $ 144.2 IT Services and Hardware 3.3 4.0 3.9 3.3 15.9 16.7 Corporate 1,620.7 — — 1,620.7 — — Total expenditures for long-lived assets $ 1,657.4 $ 96.0 $ 61.5 $ 1,657.4 $ 215.7 $ 160.9 Depreciation and amortization Entertainment and Communications $ 24.3 $ 44.5 $ 61.6 $ 24.3 $ 166.9 $ 190.0 IT Services and Hardware 5.8 7.6 10.2 5.8 27.9 30.7 Corporate 0.1 — 0.1 0.1 0.1 0.1 Total depreciation and amortization $ 30.2 $ 52.1 $ 71.9 $ 30.2 $ 194.9 $ 220.8 * Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020 Successor Predecessor (dollars in millions) September 30, 2021 December 31, 2020 Assets Entertainment and Communications $ 2,885.3 $ 1,803.3 IT Services and Hardware 844.9 477.2 Corporate and eliminations 360.2 388.1 Total assets $ 4,090.4 $ 2,668.6 |
Description of Business and A_4
Description of Business and Accounting Policies - Narrative (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)Customer | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)Customer | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Customer | |
Description of Business and Accounting Policies [Line Items] | |||||||
Revenue derived from foreign operations | 6.00% | 6.00% | 5.00% | 6.00% | 5.00% | ||
Restructuring liabilities included in other current liabilities | $ 100,000 | $ 100,000 | $ 4,500,000 | ||||
Share-based compensation arrangement outstanding awards granted | $ 0 | $ 0 | |||||
Cash-settled awards, granted value | $ 10,500,000 | ||||||
Cash-settled awards, vesting period | 3 years | ||||||
Cash-settled awards, remaining unrecognized compensation expense, period for recognition | 18 months | ||||||
Vesting One [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Cash-settled awards, vesting payment percentage | 25.00% | ||||||
Vesting Two [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Cash-settled awards, vesting payment percentage | 25.00% | ||||||
Vesting Three [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Cash-settled awards, vesting payment percentage | 50.00% | ||||||
Red Fiber Parent LLC [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Share based compensation arrangement by share based purchase price | $ / shares | $ 15.50 | ||||||
Red Fiber Parent LLC [Member] | SG&A [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Incremental stock-based compensation expense | $ 9,300,000 | ||||||
Verizon Communications Inc. [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Accounts receivable from one customer greater than 10%, percentage | 15.00% | 15.00% | 20.00% | ||||
Number of customers, exceeds 10% of total accounts receivable | Customer | 1 | 1 | 1 |
Description of Business and A_5
Description of Business and Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 07, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Cash and cash equivalents | $ 5.4 | $ 12.2 | |||
Restricted cash included in Other noncurrent assets | 0 | 5 | |||
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows | $ 5.4 | $ 11.2 | $ 17.2 | $ 8.8 | $ 11.6 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narrative (Details) | Sep. 22, 2021USD ($)$ / shares | Sep. 07, 2021USD ($)$ / shares | Aug. 31, 2021USD ($)mi | Mar. 13, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 07, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 07, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 07, 2021USD ($)$ / shares | Sep. 08, 2021USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Gross value of acquisition | $ 1,620,700,000 | $ 0 | $ 0 | |||||||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | |||||||||||
Transaction and integration costs | 0 | $ 51,500,000 | $ 2,200,000 | 54,800,000 | 33,800,000 | |||||||
Loss on extinguishment of debt | 0 | $ (10,700,000) | $ 0 | $ (10,700,000) | 0 | |||||||
Funded to escrow account | 0 | $ 5,000,000 | ||||||||||
Red Fiber Parent LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Gross value of acquisition | $ 3,100,000,000 | |||||||||||
Debt assumed | $ 1,357,100,000 | |||||||||||
Common shares price per share as stock consideration | $ / shares | $ 15.50 | $ 15.50 | $ 15.50 | $ 15.50 | ||||||||
Preferred stock redemption percentage | 6.75% | |||||||||||
Preferred stock redemption price per Depositary Share | $ / shares | $ 50 | |||||||||||
Preferred stock redemption preference per redemption percentage | $ 1,000 | |||||||||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | |||||||||||
Cumulative transaction costs | $ 0 | $ 54,600,000 | $ 8,700,000 | $ 64,400,000 | ||||||||
Transaction and integration costs | $ 44,000,000 | |||||||||||
Severance Costs | 2,900,000 | |||||||||||
Transaction-related bonuses | 5,300,000 | |||||||||||
Loss on extinguishment of debt | 10,700,000 | |||||||||||
Red Fiber Parent LLC [Member] | New Credit Agreement and Term Loan Due 2028 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Note issuance costs capitalized | $ 32,000,000 | |||||||||||
Debt instrument maturity year | 2028 | |||||||||||
Red Fiber Parent LLC [Member] | Revolving Credit Facility Due 2026 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Note issuance costs capitalized | $ 6,100,000 | |||||||||||
Debt instrument maturity year | 2026 | |||||||||||
Red Fiber Parent LLC [Member] | SG&A [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Incremental stock-based compensation expense | $ 9,300,000 | |||||||||||
Brookfield Infrastructure Group [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Termination fee | $ 24,800,000 | |||||||||||
Paniolo Acquisition [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Gross value of acquisition | $ 29,300,000 | |||||||||||
Aggregate purchase price | 52,300,000 | |||||||||||
Business combination committed purchase money financing | $ 23,000,000 | |||||||||||
Current portion of long-term debt | $ 500,000 | |||||||||||
Long-term debt, less current portion | $ 22,400,000 | |||||||||||
Funded to escrow account | $ 5,000,000 | |||||||||||
Paniolo Acquisition [Member] | Minimum [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fiber route miles | mi | 400 |
Mergers and Acquisitions - Sche
Mergers and Acquisitions - Schedule of Consideration (Details) - Cincinnati Bell Inc. [Member] $ in Millions | Sep. 07, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash consideration for Cincinnati Bell Inc. stock | $ 807.3 |
Cash consideration for preferred stock | 155.2 |
Cash consideration for debt repayment | 658.2 |
Total purchase price | $ 1,620.7 |
Mergers and Acquisitions - Purc
Mergers and Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 08, 2021 | Sep. 07, 2021 | Dec. 31, 2020 |
Assets acquired | ||||
Goodwill | $ 646.3 | $ 0 | $ 162.2 | $ 161.5 |
Cincinnati Bell Inc. [Member] | ||||
Assets acquired | ||||
Cash | 11.2 | |||
Receivables | 318.5 | |||
Inventory, materials and supplies | 56.4 | |||
Prepaid expenses | 5.6 | |||
Other current assets | 40.5 | |||
Property, plant and equipment | 1,950.7 | |||
Operating lease right-of-use assets | 42.3 | |||
Goodwill | 646.3 | |||
Intangible assets | 969.6 | |||
Deferred tax assets | 6.9 | |||
Other noncurrent assets | 20.2 | |||
Total assets acquired | 4,068.2 | |||
Liabilities assumed | ||||
Current portion of long-term debt | 11.8 | |||
Accounts payable | 381.1 | |||
Unearned revenue and customer deposits | 51.2 | |||
Accrued taxes | 24.6 | |||
Accrued interest | 19.4 | |||
Accrued payroll and benefits | 49.3 | |||
Other current liabilities | 75 | |||
Long-term debt, less current portion | 1,378 | |||
Operating lease liabilities | 38.6 | |||
Pension and postretirement benefit obligations | 151.6 | |||
Pole license agreement obligation | 46.7 | |||
Deferred income tax liability | 148.8 | |||
Other noncurrent liabilities | 71.4 | |||
Total liabilities assumed | 2,447.5 | |||
Net assets acquired | $ 1,620.7 |
Mergers and Acquisitions - Prel
Mergers and Acquisitions - Preliminary Fair Values of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions | Sep. 07, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Fair Value | $ 963 | $ 193.2 | |
Fair Value | 969.6 | 199.6 | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 850 | $ 141.6 | |
Customer Relationships [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Useful Lives | 15 years | 8 years | |
Customer Relationships [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Useful Lives | 15 years | ||
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 108 | $ 41.7 | |
Trade Names [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Useful Lives | 3 years | 10 years | |
Trade Names [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Useful Lives | 10 years | 15 years | |
Technology [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 5 | $ 9.9 | |
Useful Lives | 7 years | 10 years | |
Cincinnati Bell Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 969.6 | ||
Cincinnati Bell Inc. [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 850 | ||
Useful Lives | 15 years | ||
Cincinnati Bell Inc. [Member] | Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 108 | ||
Cincinnati Bell Inc. [Member] | Trade Names [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Useful Lives | 3 years | ||
Cincinnati Bell Inc. [Member] | Trade Names [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Useful Lives | 10 years | ||
Cincinnati Bell Inc. [Member] | Technology [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 5 | ||
Useful Lives | 7 years | ||
Cincinnati Bell Inc. [Member] | FCC Licenses and Spectrum Usage Rights [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 6.6 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Payment terms for customers, lower range | 30 days | |
Payment term for customers, upper range | 120 days | |
Total | $ 138 | |
Unearned revenue and customer deposits | 56.3 | $ 68.9 |
Other Current Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Unearned revenue and customer deposits | 1.7 | 1.6 |
Other Noncurrent Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities, recognized, noncurrent | $ 58.1 | $ 26.2 |
Contract Signed in Successor Period [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Indefeasible right of use of contract term | 20 years | |
Revenue, Remaining Performance Obligation, Percentage | 75.00% | |
Minimum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Customer contract term | 1 year | |
SEA-US contract term | 15 years | |
Indefeasible right of use of contract term | 15 years | |
Maximum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Customer contract term | 5 years | |
SEA-US contract term | 25 years | |
Indefeasible right of use of contract term | 25 years | |
Indefeasible Right of Use, Maximum, in Years | 30 years |
Revenue - Schedule of Expected
Revenue - Schedule of Expected Revenue to be Recognized for Existing IRU Contracts (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 138 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 0.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 6.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 7.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 7.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 111.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Contract Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Sep. 30, 2021 | Sep. 07, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | $ 0 | $ 24.9 | $ 25.6 | $ 26.8 |
Capitalized contract cost, Additions | 1.3 | 3.7 | 4.5 | 4.5 |
Capitalized contract cost, Amortization | 0 | (4) | (5.2) | (5.7) |
Capitalized contract cost, net, ending Balance | 1.3 | 24.6 | 24.9 | 25.6 |
Fulfillment Costs [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 5.8 | 6.7 | 7.4 |
Capitalized contract cost, Additions | 0.5 | 1.5 | 1.7 | 1.9 |
Capitalized contract cost, Amortization | 0 | (1.9) | (2.6) | (2.6) |
Capitalized contract cost, net, ending Balance | 0.5 | 5.4 | 5.8 | 6.7 |
Cost of Acquisition [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 19.1 | 18.9 | 19.4 |
Capitalized contract cost, Additions | 0.8 | 2.2 | 2.8 | 2.6 |
Capitalized contract cost, Amortization | 0 | (2.1) | (2.6) | (3.1) |
Capitalized contract cost, net, ending Balance | 0.8 | 19.2 | 19.1 | 18.9 |
Entertainment and Communications [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 17.5 | 18.2 | 19.3 |
Capitalized contract cost, Additions | 1 | 2.7 | 3.5 | 3.5 |
Capitalized contract cost, Amortization | 0 | (3.1) | (4.2) | (4.6) |
Capitalized contract cost, net, ending Balance | 1 | 17.1 | 17.5 | 18.2 |
Entertainment and Communications [Member] | Fulfillment Costs [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 1.5 | 2.5 | 3.5 |
Capitalized contract cost, Additions | 0.2 | 0.7 | 0.9 | 0.9 |
Capitalized contract cost, Amortization | 0 | (1.4) | (1.9) | (1.9) |
Capitalized contract cost, net, ending Balance | 0.2 | 0.8 | 1.5 | 2.5 |
Entertainment and Communications [Member] | Cost of Acquisition [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 16 | 15.7 | 15.8 |
Capitalized contract cost, Additions | 0.8 | 2 | 2.6 | 2.6 |
Capitalized contract cost, Amortization | 0 | (1.7) | (2.3) | (2.7) |
Capitalized contract cost, net, ending Balance | 0.8 | 16.3 | 16 | 15.7 |
IT Services and Hardware [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 7.4 | 7.4 | 7.5 |
Capitalized contract cost, Additions | 0.3 | 1 | 1 | 1 |
Capitalized contract cost, Amortization | 0 | (0.9) | (1) | (1.1) |
Capitalized contract cost, net, ending Balance | 0.3 | 7.5 | 7.4 | 7.4 |
IT Services and Hardware [Member] | Fulfillment Costs [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 4.3 | 4.2 | 3.9 |
Capitalized contract cost, Additions | 0.3 | 0.8 | 0.8 | 1 |
Capitalized contract cost, Amortization | 0 | (0.5) | (0.7) | (0.7) |
Capitalized contract cost, net, ending Balance | 0.3 | 4.6 | 4.3 | 4.2 |
IT Services and Hardware [Member] | Cost of Acquisition [Member] | ||||
Contract Asset [Roll Forward] | ||||
Capitalized contract cost, net, beginning balance | 0 | 3.1 | 3.2 | 3.6 |
Capitalized contract cost, Additions | 0 | 0.2 | 0.2 | 0 |
Capitalized contract cost, Amortization | 0 | (0.4) | (0.3) | (0.4) |
Capitalized contract cost, net, ending Balance | $ 0 | $ 2.9 | $ 3.1 | $ 3.2 |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues Disaggregation by Product and Service Lines (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 111.4 | $ 314.6 | $ 389.5 | $ 1,138.7 | $ 1,149.5 |
Operating Segments [Member] | Entertainment and Communications [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 61.7 | 180.4 | 241 | 664.2 | 724.5 |
Operating Segments [Member] | Entertainment and Communications [Member] | Data [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 31.6 | 91.7 | 119.8 | 334.6 | 358.8 |
Operating Segments [Member] | Entertainment and Communications [Member] | Video [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 12.2 | 35.3 | 48.1 | 131.8 | 145.1 |
Operating Segments [Member] | Entertainment and Communications [Member] | Voice [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 15.8 | 46.8 | 65.5 | 177.3 | 197.6 |
Operating Segments [Member] | Entertainment and Communications [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 2.1 | 6.6 | 7.6 | 20.5 | 23 |
Operating Segments [Member] | IT Services and Hardware [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 52 | 138.7 | 155.2 | 492.4 | 444.5 |
Operating Segments [Member] | IT Services and Hardware [Member] | Consulting | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 21.6 | 56.5 | 49.4 | 193.6 | 138.5 |
Operating Segments [Member] | IT Services and Hardware [Member] | Cloud | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 6.6 | 18.7 | 21.1 | 66.4 | 63 |
Operating Segments [Member] | IT Services and Hardware [Member] | Communications | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 14.2 | 40.1 | 53.9 | 149.1 | 160.3 |
Operating Segments [Member] | IT Services and Hardware [Member] | Infrastructure Solutions | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 9.6 | 23.4 | 30.8 | 83.3 | 82.7 |
Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | (2.3) | (4.5) | (6.7) | (17.9) | (19.5) |
Intersegment Eliminations [Member] | Entertainment and Communications [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 1.6 | 3.4 | 4.9 | 13.1 | 14.8 |
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 0.7 | $ 1.1 | $ 1.8 | $ 4.8 | $ 4.7 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregation by Contract Type (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 111.4 | $ 314.6 | $ 389.5 | $ 1,138.7 | $ 1,149.5 |
Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | (2.3) | (4.5) | (6.7) | (17.9) | (19.5) |
Transferred at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 13.2 | 29.2 | 40.7 | 105.9 | 112.3 |
Transferred at Point in Time [Member] | Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | 0 |
Transferred over Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 98.2 | 285.4 | 348.8 | 1,032.8 | 1,037.2 |
Transferred over Time [Member] | Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | 0 |
Entertainment and Communications [Member] | Operating Segments [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 61.7 | 180.4 | 241 | 664.2 | 724.5 |
Entertainment and Communications [Member] | Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 1.6 | 3.4 | 4.9 | 13.1 | 14.8 |
Entertainment and Communications [Member] | Transferred at Point in Time [Member] | Operating Segments [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 2.1 | 4.1 | 6.6 | 15.8 | 19.1 |
Entertainment and Communications [Member] | Transferred over Time [Member] | Operating Segments [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 58 | 172.9 | 229.5 | 635.3 | 690.6 |
IT Services and Hardware [Member] | Operating Segments [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 52 | 138.7 | 155.2 | 492.4 | 444.5 |
IT Services and Hardware [Member] | Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 0.7 | 1.1 | 1.8 | 4.8 | 4.7 |
IT Services and Hardware [Member] | Transferred at Point in Time [Member] | Operating Segments [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 11.1 | 25.1 | 34.1 | 90.1 | 93.2 |
IT Services and Hardware [Member] | Transferred over Time [Member] | Operating Segments [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 40.2 | $ 112.5 | $ 119.3 | $ 397.5 | $ 346.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Land and rights-of-way | $ 132.3 | $ 115.7 |
Buildings and leasehold improvements | 184.8 | 323.8 |
Network equipment | 1,498.6 | 4,180 |
Office software, furniture, fixtures and vehicles | 89.6 | 243.7 |
Construction in process | 73.4 | 60.4 |
Gross value | 1,978.7 | 4,923.6 |
Accumulated depreciation | (21.8) | (3,194.5) |
Property, plant and equipment, net | $ 1,956.9 | $ 1,729.1 |
Land [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Land [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | Indefinite | |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 14 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||||||
Property, plant and equipment, net | $ 1,956,900,000 | $ 1,729,100,000 | ||||
Depreciation | 21,800,000 | $ 49,400,000 | $ 68,300,000 | $ 185,000,000 | $ 210,000,000 | |
Asset impairment losses | 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair Value, Inputs, Level 3 [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property, plant and equipment, net | $ 162,100,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 1 Months Ended | 8 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 0 | $ 161.5 |
Merger | 646.3 | |
Currency translations | 0.7 | |
Goodwill, ending balance | 646.3 | 162.2 |
IT Services and Hardware [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 149.1 |
Merger | 157.4 | |
Currency translations | 0.7 | |
Goodwill, ending balance | 157.4 | 149.8 |
Entertainment and Communications [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 12.4 |
Merger | 488.9 | |
Currency translations | 0 | |
Goodwill, ending balance | $ 488.9 | $ 12.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||
Impairment losses recognized in goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Fair Value | 969,600,000 | $ 969,600,000 | $ 969,600,000 | $ 199,600,000 | ||||
Amortization of finite-lived intangible assets | 8,400,000 | $ 2,700,000 | 3,600,000 | $ 9,900,000 | 10,800,000 | |||
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | $ 963 | $ 193.2 |
Accumulated amortization | (8.4) | (51.5) |
Intangible assets subject to amortization, net amount | 954.6 | 141.7 |
Fair Value | 969.6 | 199.6 |
Intangible assets, net amount | 961.2 | 148.1 |
FCC Licenses and Spectrum Usage Rights [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 6.6 | 6.4 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 850 | 141.6 |
Accumulated amortization | (7.1) | (38.9) |
Intangible assets subject to amortization, net amount | 842.9 | 102.7 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 108 | 41.7 |
Accumulated amortization | (1.2) | (9.4) |
Intangible assets subject to amortization, net amount | 106.8 | 32.3 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 5 | 9.9 |
Accumulated amortization | (0.1) | (3.2) |
Intangible assets subject to amortization, net amount | $ 4.9 | $ 6.7 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Useful Lives for Finite-lived Intangible Assets (Details) | 1 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Customer Relationships [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | 8 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Trade Names [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | 10 years |
Trade Names [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 15 years |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | 10 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Three months ended December 31, 2021 | $ 33 | |
2022 | 120 | |
2023 | 112.9 | |
2024 | 103.8 | |
2025 | 92.1 | |
Thereafter | 492.8 | |
Intangible assets subject to amortization, net amount | $ 954.6 | $ 141.7 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | $ 13 | $ 21.8 | ||
Other Financing Arrangements, Current Portion | 0.9 | 1.9 | ||
Finance lease liabilities, current | 10.1 | 13.9 | ||
Receivables Facility | 75.1 | 182 | ||
Corporate Credit Agreement - Revolving Credit Facility | 0 | 67 | ||
Long-term debt, less current portion | 1,382.9 | 1,949.9 | ||
Other Financing Arrangements, Non-Current Portion | 0.5 | 0.9 | ||
Finance lease liabilities, Noncurrent | 47.1 | 52.1 | ||
Long-term debt gross | 1,418.4 | 1,967.7 | ||
Net unamortized premium | 0 | 1.1 | [1] | |
Unamortized note issuance costs | [2] | (35.5) | (18.9) | |
Total debt | 1,395.9 | 1,971.7 | ||
Revolving Credit Facility Due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Corporate Credit Agreement - Revolving Credit Facility | 0 | 0 | ||
Tranche B Term Loan due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | 0 | 6 | ||
Long-term debt, less current portion | 0 | 580.5 | ||
Term Loan due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | 1.5 | 0 | ||
Long-term debt, less current portion | 148.5 | 0 | ||
Paniolo Fiber Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Financing Arrangement, Current Portion | 0.5 | 0 | ||
Financing Arrangement, Noncurrent Portion | 22.4 | 0 | ||
Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | [3] | 24.3 | 22.3 | |
Senior Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | [3] | 637.2 | 625 | |
Senior Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | [3] | 365.5 | 350 | |
Various Cincinnati Bell Telephone Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, less current portion | [3] | $ 97.8 | $ 87.9 | |
[1] | Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period. | |||
[2] | Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below. | |||
[3] | As of September 30, 2021, the net carrying amounts of the 7 ¼ |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 07, 2021 | Dec. 31, 2020 | [1] |
Debt Instrument [Line Items] | ||||
Net unamortized premium | $ 0 | $ 1.1 | ||
Merger Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized note issuance costs adjustment | $ 9.3 | |||
Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.25% | |||
Senior Notes due 2023 [Member] | Merger Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized fair value adjustments related to merger | $ 2 | |||
Senior Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 7.00% | |||
Senior Notes due 2024 [Member] | Merger Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized fair value adjustments related to merger | $ 12.2 | |||
Senior Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 8.00% | |||
Senior Notes due 2025 [Member] | Merger Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized fair value adjustments related to merger | $ 15.5 | |||
Various Cincinnati Bell Telephone Notes [Member] | Merger Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized fair value adjustments related to merger | $ 9.9 | |||
[1] | Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period. |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Narrative (Details) - USD ($) $ in Millions | Sep. 07, 2021 | Sep. 30, 2021 |
Line Of Credit Facility [Line Items] | ||
Consent fees | $ 3.9 | |
Senior Notes due 2024 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.00% | |
Senior Notes due 2025 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.00% | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Fair-value step-up amount | $ 39.6 |
Debt and Other Financing Arra_6
Debt and Other Financing Arrangements - Credit Agreement - Narrative (Details) - USD ($) | Sep. 07, 2021 | Nov. 30, 2021 | Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Line Of Credit Facility [Line Items] | ||||||
Credit agreement term | 5 years | |||||
Senior secured revolving credit facility | $ 275,000,000 | $ 275,000,000 | ||||
Payments of debt issuance costs | $ 42,000,000 | $ 800,000 | $ 500,000 | |||
Debt instrument floor interest rate | 0.00% | 0.00% | ||||
Revolving credit facility | $ 0 | $ 67,000,000 | ||||
Bridge Loan [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Senior secured revolving credit facility | $ 10,000,000 | $ 10,000,000 | ||||
Term Loan due 2028 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit agreement term | 7 years | |||||
Senior secured term loan facility | $ 150,000,000 | 150,000,000 | ||||
Debt instrument expiration date | 2028-09 | |||||
Payments of debt issuance costs | $ 32,000,000 | |||||
Term Loan due 2028 [Member] | Subsequent Event [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Senior secured term loan facility | $ 500,000,000 | |||||
Debt instrument expiration date | 2028-11 | |||||
Debt instrument incremental increase | $ 350,000,000 | |||||
Term Loan due 2028 [Member] | Federal Funds Rate [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Term Loan due 2028 [Member] | Eurocurrency [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | |||||
Term Loan due 2028 [Member] | Eurocurrency [Member] | Minimum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 3.75% | ||||
Term Loan due 2028 [Member] | Eurocurrency [Member] | Maximum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | 4.75% | ||||
Term Loan due 2028 [Member] | Base Rate [Member] | Minimum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||
Term Loan due 2028 [Member] | Base Rate [Member] | Maximum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |||||
Revolving Credit Facility Due 2026 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Payments of debt issuance costs | $ 6,100,000 | |||||
Line of credit facility commitment fee on any unused portion | 0.50% | |||||
Line of credit facility, commitment fee percentage | 0.375% | |||||
Line of credit facility fronting fee percentage | 0.125% | |||||
Revolving credit facility | $ 0 | |||||
Borrowing capacity | $ 275,000,000 | |||||
Revolving Credit Facility Due 2026 [Member] | Maximum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Secured net leverage ratio | 3.25% | |||||
Revolving Credit Facility Due 2026 [Member] | Federal Funds Rate [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Revolving Credit Facility Due 2026 [Member] | Eurocurrency [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | |||||
Revolving Credit Facility Due 2026 [Member] | Eurocurrency [Member] | Minimum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 3.75% | ||||
Revolving Credit Facility Due 2026 [Member] | Eurocurrency [Member] | Maximum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | |||||
Revolving Credit Facility Due 2026 [Member] | Base Rate [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||
Revolving Credit Facility Due 2026 [Member] | Base Rate [Member] | Minimum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||
Revolving Credit Facility Due 2026 [Member] | Base Rate [Member] | Maximum [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||
Tranche B-2 Term Loan due 2028 [Member] | Subsequent Event [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Senior secured term loan facility | $ 650,000,000 | |||||
Debt instrument expiration date | 2028-11 | |||||
Senior Notes due 2024 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 7.00% | |||||
Senior Notes due 2025 [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 8.00% | |||||
Standby Letters of Credit [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Senior secured revolving credit facility | $ 40,000,000 | $ 40,000,000 | ||||
Revolving Credit Facility [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Debt instrument expiration date | 2026-09 | |||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Senior secured revolving credit facility | $ 400,000,000 | |||||
Line of credit facility, incremental increase | $ 125,000,000 |
Debt and Other Financing Arra_7
Debt and Other Financing Arrangements - Corporate Credit Agreement - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |||||
Loss on extinguishment of debt | $ 0 | $ 10.7 | $ 0 | $ 10.7 | $ 0 |
Debt and Other Financing Arra_8
Debt and Other Financing Arrangements - Paniolo Fiber Assets Financing - Narrative (Details) - USD ($) $ in Millions | Sep. 07, 2021 | Sep. 30, 2021 |
Line Of Credit Facility [Line Items] | ||
Credit agreement term | 5 years | |
Paniolo Fiber Assets [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit agreement term | 5 years | |
Senior secured term loan facility | $ 23 | |
Paniolo Fiber Assets [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.00% |
Debt and Other Financing Arra_9
Debt and Other Financing Arrangements - Accounts Receivable Securitization Facility - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Line Of Credit Facility [Line Items] | |||
Receivables facility amount outstanding | $ 75,100,000 | $ 182,000,000 | |
Letters of Credit Outstanding, Amount | 14,800,000 | ||
Receivables Facility Remaining Borrowing Capacity | 125,100,000 | ||
Receivables Facility Maximum Borrowing Availability | $ 215,000,000 | ||
Accounts Receivable Facility, Renewal Term, Month and Year | 2023-06 | ||
Accounts Receivable Facility, Expiration Year And Month | 2024-06 | ||
Receivables facility maximum borrowing capacity | $ 215,000,000 | $ 200,000,000 | |
Accounts Receivable Sold | $ 3,900,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Cancellation of provision on receivable facility, interest rate | 0.75% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease assets, net of amortization | $ 41.4 | $ 37.4 |
Finance lease assets, net of amortization | $ 15.4 | $ 28 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Current operating lease liabilities | $ 8.8 | $ 9.6 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 38 | $ 33.6 |
Total operating lease liabilities | 46.8 | 43.2 |
Current finance lease liabilities | 10.1 | 13.9 |
Noncurrent finance lease liabilities | 47.1 | 52.1 |
Total finance lease liabilities | $ 57.2 | $ 66 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 1 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance leases | $ 0.3 | $ 2.9 | $ 3.3 |
Operating cash flows from operating leases | 0.8 | 7.2 | 9.5 |
Financing cash flows from finance leases | 1.2 | 9.9 | 13.9 |
Right-of-use assets obtained in exchange for lease obligations: | |||
New operating leases | 0 | 11.5 | 6.8 |
New finance leases | $ 0 | $ 3.8 | $ 4 |
Leases - Narratives (Details)
Leases - Narratives (Details) - USD ($) $ in Millions | Aug. 31, 2021 | Sep. 30, 2021 | Sep. 01, 2021 | Dec. 31, 2020 |
Lessee Lease Description [Line Items] | ||||
Sale leaseback transaction sale price | $ 9.1 | |||
Net proceeds from sale-leaseback transaction after transaction cost | 6.6 | |||
Gain on sale of assets | $ 2.8 | |||
Operating lease right-of-use assets | $ 41.4 | $ 37.4 | ||
Leaseback Agreement | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease right-of-use assets | $ 7.7 | |||
Operating lease right of use liability | $ 7.7 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) | 2 Months Ended | 3 Months Ended | ||
Sep. 07, 2021 | Mar. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | |
2.938% Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notional amount | $ 300,000,000 | |||
Average fixed interest rate | 2.938% | |||
Interest rate swap expiration date | 2023-06 | |||
2.275% Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notional amount | $ 89,000,000 | |||
Average fixed interest rate | 2.275% | |||
Interest rate swap expiration date | 2024-03 | |||
2.244% Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notional amount | $ 89,000,000 | |||
Average fixed interest rate | 2.244% | |||
Interest rate swap expiration date | 2024-03 | |||
2.328% Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notional amount | $ 89,000,000 | |||
Average fixed interest rate | 2.328% | |||
Interest rate swap expiration date | 2024-03 | |||
Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Termination fee | $ 20,100,000 | |||
Interest Rate Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value of interest rate swaps | $ 25,400,000 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets (Details) - Estimate of Fair Value, Fair Value Disclosure [Member] - Interest Rate Contract [Member] $ in Millions | Dec. 31, 2020USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest Rate Swap Liability, Current | $ 9.3 |
Interest Rate Swap Liability, Noncurrent | 16.1 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest Rate Swap Liability, Current | 0 |
Interest Rate Swap Liability, Noncurrent | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest Rate Swap Liability, Current | 9.3 |
Interest Rate Swap Liability, Noncurrent | 16.1 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest Rate Swap Liability, Current | 0 |
Interest Rate Swap Liability, Noncurrent | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Net of Reclassification into Earnings (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |||||
Interest Rate Swap | $ 0 | $ 0 | $ 1.7 | $ 5.3 | $ (8.6) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Other (Income) Expense, Net [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest Rate Swap | $ 0 | $ (20.1) | $ 0 | $ (20.1) | $ 0 |
Interest Expense [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest Rate Swap | $ 0 | $ (0.8) | $ (2.3) | $ (5.4) | $ (6) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Schedule of Carrying and Fair Values by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ 1,372.8 | $ 1,921.8 |
Other financing arrangements | 53.8 | 42.1 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | 1,370.5 | 1,973.4 |
Other financing arrangements | $ 53.8 | $ 58.6 | |
[1] | Excludes finance leases, other financing arrangements and note issuance costs. |
Pension and Postretirement Pl_3
Pension and Postretirement Plans - Narrative (Details) | Sep. 07, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 07, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 07, 2021USD ($) | Sep. 30, 2021USD ($)Plan | Sep. 30, 2020USD ($) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Actuarial gains (losses) and prior service costs (benefits) recorded in accumulated other comprehensive loss | $ 101,600,000 | $ 101,600,000 | $ 101,600,000 | ||||
Cincinnati Plans [Member] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Number of noncontributory defined benefit pension plans | Plan | 3 | ||||||
Pension Plans, Defined Benefit [Member] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Decrease in benefit obligations | 22,300,000 | 7,400,000 | $ 10,800,000 | 7,400,000 | $ 10,800,000 | ||
Settlements | $ 800,000 | $ 3,400,000 | 7,400,000 | 10,800,000 | |||
Pension settlement charges | $ 0 | 0 | 1,100,000 | ||||
Pension Plans, Defined Benefit [Member] | Qualified Plan [Member] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Contributions to pension plans | 0 | 900,000 | 2,800,000 | ||||
Pension Plans, Defined Benefit [Member] | Nonqualified Plan [Member] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Contributions to pension plans | 200,000 | 1,800,000 | 2,000,000 | ||||
Expected future employer contributions, next fiscal year | 3,000,000 | $ 3,000,000 | |||||
Other Postretirement Benefits Plan [Member] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||||
Decrease in benefit obligations | $ 4,300,000 | ||||||
Pension settlement charges | 0 | 0 | 0 | ||||
Contributions to pension plans | 500,000 | $ 4,300,000 | $ 4,300,000 | ||||
Expected future employer contributions, next fiscal year | $ 8,000,000 | $ 8,000,000 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans - Schedule of Pension and Postretirement Costs (Benefits) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | |
Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Other components of pension and postretirement benefit plans expense: | |||||
Interest cost on projected benefit obligation | 0.9 | 2.7 | 4.6 | 10.2 | 14.2 |
Expected return on plan assets | (2.1) | (5.2) | (7.1) | (19.9) | (21.6) |
Amortization of: | |||||
Prior service benefit | 0 | 0 | 0 | 0 | 0 |
Actuarial loss | 0 | 4.5 | 4.5 | 16 | 13.5 |
Pension settlement charges | 0 | 0 | 1.1 | ||
Pension / postretirement costs | (1.2) | 2 | 2 | 6.3 | 7.2 |
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 0 | 0.1 | 0.1 | 0.3 | 0.3 |
Other components of pension and postretirement benefit plans expense: | |||||
Interest cost on projected benefit obligation | 0.1 | 0.5 | 0.9 | 1.8 | 2.8 |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 |
Amortization of: | |||||
Prior service benefit | 0 | (0.4) | (0.6) | (1.7) | (1.9) |
Actuarial loss | 0 | 0 | 0.3 | 0 | 0.9 |
Pension settlement charges | 0 | 0 | 0 | ||
Pension / postretirement costs | $ 0.1 | $ 0.2 | $ 0.7 | $ 0.4 | $ 2.1 |
Pension and Postretirement Pl_5
Pension and Postretirement Plans - Schedule of Weighted-Average Discount Rate Assumptions (Details) | Sep. 08, 2021 | Dec. 31, 2020 |
Pension Plans, Defined Benefit [Member] | Cincinnati Plans [Member] | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.60% | 2.40% |
Pension Plans, Defined Benefit [Member] | Hawaii Plans [Member] | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.50% | 2.30% |
Other Postretirement Benefits Plan [Member] | Cincinnati Plans [Member] | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.60% | 2.40% |
Other Postretirement Benefits Plan [Member] | Hawaii Plans [Member] | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.80% | 2.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Deferred income tax assets | $ 6.9 | $ 82.5 |
Deferred income tax liability | 147.7 | $ 10.9 |
Federal net operating loss carryforwards | 848.5 | |
Federal net operating loss carryforwards, deferred tax asset value | $ 178.2 | |
Operating loss carryforwards, expiration period | 2022 | |
Domestic Country | Expire in 2022 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Federal net operating loss carryforwards | $ 55.8 |
Shareowners' Equity (Deficit) -
Shareowners' Equity (Deficit) - Additional Information (Details) - USD ($) | Sep. 22, 2021 | Dec. 31, 2020 | Oct. 18, 2021 | Sep. 30, 2021 | Sep. 07, 2021 |
Class Of Stock [Line Items] | |||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Common Stock, Shares, Issued | 50,680,605 | 500,000 | |||
Common Stock, Shares, Outstanding | 50,680,605 | 500,000 | |||
Common Stock, Shares Authorized | 96,000,000 | 96,000,000 | |||
Subsequent Event [Member] | |||||
Class Of Stock [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||
Common Stock, Shares Authorized | 100 | ||||
Red Fiber Parent LLC [Member] | |||||
Class Of Stock [Line Items] | |||||
Common shares price per share as stock consideration | $ 15.50 | ||||
Preferred stock redemption percentage | 6.75% | ||||
Preferred stock redemption price per Depositary Share | $ 50 | ||||
Preferred stock redemption preference per redemption percentage | $ 1,000 | ||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||
Common Stock, Shares, Issued | 500,000 | ||||
Common Stock, Shares, Outstanding | 500,000 | ||||
Common Stock, Shares Authorized | 96,000,000 |
Shareowners' Equity (Deficit)_2
Shareowners' Equity (Deficit) - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | ||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | $ 0 | $ (122.2) | $ (139.2) | $ (189.6) | $ (159.7) | $ (170.1) | |
Remeasurement of benefit obligations | 0 | 0 | 3.2 | 6 | (11.5) | ||
Reclassifications, net | 19 | 5 | 30.4 | 15.1 | |||
Unrealized loss on cash flow hedges arising during the period, net | 0 | (0.6) | (0.5) | (0.1) | (11.3) | ||
Foreign currency gain (loss) | (1.2) | (1.2) | (1.4) | 2 | 1.2 | (2.1) | |
Ending balance | (1.2) | (1.2) | (122.2) | (179.9) | (122.2) | (179.9) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | 0 | (122.1) | (124.9) | (159.4) | (138.8) | (152) | |
Remeasurement of benefit obligations | 3.2 | 6 | (11.5) | ||||
Reclassifications, net | [1] | 2.8 | 3.2 | 10.7 | 10.5 | ||
Unrealized loss on cash flow hedges arising during the period, net | 0 | 0 | 0 | 0 | |||
Foreign currency gain (loss) | 0 | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | (122.1) | (153) | (122.1) | (153) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | 0 | (0.1) | (15.7) | (22.7) | (19.7) | (14.7) | |
Remeasurement of benefit obligations | 0 | 0 | 0 | ||||
Reclassifications, net | [2] | 16.2 | 1.8 | 19.7 | 4.6 | ||
Unrealized loss on cash flow hedges arising during the period, net | [3] | (0.6) | (0.5) | (0.1) | (11.3) | ||
Foreign currency gain (loss) | 0 | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | (0.1) | (21.4) | (0.1) | (21.4) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | 0 | 0 | 1.4 | (7.5) | (1.2) | (3.4) | |
Remeasurement of benefit obligations | 0 | 0 | 0 | ||||
Reclassifications, net | 0 | 0 | 0 | 0 | |||
Unrealized loss on cash flow hedges arising during the period, net | 0 | 0 | 0 | 0 | |||
Foreign currency gain (loss) | (1.2) | (1.4) | 2 | 1.2 | (2.1) | ||
Ending balance | $ (1.2) | $ (1.2) | $ 0 | $ (5.5) | $ 0 | $ (5.5) | |
[1] | These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax | ||||||
[2] | These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings. | ||||||
[3] | The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures. |
Business Segment Information -
Business Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Information _2
Business Segment Information - Selected Financial Data for the Company's Business Segment Information (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 30, 2020 | Sep. 07, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 111.4 | $ 314.6 | $ 389.5 | $ 1,138.7 | $ 1,149.5 | ||
Operating (loss) income | (1.4) | (35.3) | 24.7 | 27.7 | 32.2 | ||
Expenditures for long-lived assets | [1] | 1,657.4 | 96 | 61.5 | 215.7 | 160.9 | |
Depreciation and amortization | 30.2 | 52.1 | 71.9 | 194.9 | 220.8 | ||
Assets | 4,090.4 | $ 2,668.6 | |||||
Operating Segments [Member] | Entertainment and Communications [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 61.7 | 180.4 | 241 | 664.2 | 724.5 | ||
Operating (loss) income | (2.3) | 18.9 | 27.2 | 78.3 | 69.8 | ||
Expenditures for long-lived assets | [1] | 33.4 | 92 | 57.6 | 199.8 | 144.2 | |
Depreciation and amortization | 24.3 | 44.5 | 61.6 | 166.9 | 190 | ||
Assets | 2,885.3 | 1,803.3 | |||||
Operating Segments [Member] | IT Services and Hardware [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 52 | 138.7 | 155.2 | 492.4 | 444.5 | ||
Operating (loss) income | 1.7 | 9 | 4.6 | 25.2 | 11.5 | ||
Expenditures for long-lived assets | [1] | 3.3 | 4 | 3.9 | 15.9 | 16.7 | |
Depreciation and amortization | 5.8 | 7.6 | 10.2 | 27.9 | 30.7 | ||
Assets | 844.9 | 477.2 | |||||
Intersegment Elimination [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (2.3) | (4.5) | (6.7) | (17.9) | (19.5) | ||
Intersegment Elimination [Member] | Entertainment and Communications [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1.6 | 3.4 | 4.9 | 13.1 | 14.8 | ||
Intersegment Elimination [Member] | IT Services and Hardware [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 0.7 | 1.1 | 1.8 | 4.8 | 4.7 | ||
Corporate, Non-Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating (loss) income | (0.8) | (63.2) | (7.1) | (75.8) | (49.1) | ||
Expenditures for long-lived assets | [1] | 1,620.7 | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0.1 | 0 | 0.1 | 0.1 | 0.1 | ||
Corporate and Elimination [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 360.2 | $ 388.1 | |||||
Sales [Member] | Intersegment Elimination [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 2.3 | $ 4.5 | $ 6.7 | $ 17.9 | $ 19.5 | ||
[1] | Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | May 02, 2022USD ($) |
Agile Networks LLC [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Business acquisition | $ 65 |