Document and Entity Information
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2022 shares | |
Cover [Abstract] | |
Entity Registrant Name | CINCINNATI BELL INC. |
Entity Central Index Key | 0000716133 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
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, 2022 |
Document Fiscal Year Focus | 2022 |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
Income Statement [Abstract] | |||||
Revenue | $ 111.4 | $ 314.6 | $ 462.1 | $ 1,138.7 | $ 1,337.4 |
Costs and expenses | |||||
Cost of services and products, excluding items below | 60.5 | 174.6 | 258 | 619.5 | 737.7 |
Selling, general and administrative, excluding items below | 22.1 | 74.2 | 102.6 | 243.4 | 288.1 |
Depreciation and amortization | 30.2 | 52.1 | 131.5 | 194.9 | 381.1 |
Loss on impairment of long-lived assets | 0 | 0 | 2.7 | 0 | 2.7 |
Restructuring and severance related charges | 0 | 0.3 | 0.5 | 1.2 | 1.8 |
Transaction and integration costs | 0 | 51.5 | 3.5 | 54.8 | 10.1 |
Gain on sale of assets, net | 0 | 2.8 | 0 | 2.8 | 0 |
Total operating costs and expenses | 112.8 | 349.9 | 498.8 | 1,111 | 1,421.5 |
Operating (loss) income | (1.4) | (35.3) | (36.7) | 27.7 | (84.1) |
Interest expense | 6.4 | 23.2 | 24.3 | 89.1 | 59.2 |
Other components of pension and postretirement benefit plans (benefit) expense | (1.1) | 2.1 | (0.7) | 6.4 | (5.9) |
Loss on extinguishment of debt | 0 | 10.7 | 0 | 10.7 | 0 |
Other (income) expense, net | (0.3) | 19.7 | (25.7) | 19.7 | (14.3) |
Loss before income taxes | (6.4) | (91) | (34.6) | (98.2) | (123.1) |
Income tax benefit | (1.4) | (17.3) | (8) | (16.9) | (28.5) |
Net loss | (5) | (73.7) | (26.6) | (81.3) | (94.6) |
Preferred stock dividends | 0 | 2.4 | 0 | 7.6 | 0 |
Net loss applicable to common shareowners | $ (5) | $ (76.1) | $ (26.6) | $ (88.9) | $ (94.6) |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net loss | $ (5) | $ (73.7) | $ (26.6) | $ (81.3) | $ (94.6) |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation (loss) gain | (1.2) | (1.4) | (5.9) | 1.2 | (7.2) |
Cash flow hedges: | |||||
Unrealized loss on cash flow hedges arising during the period, net of tax of ($0.2), $0.0 | 0 | (0.6) | 0 | (0.1) | 0 |
Reclassification adjustment for net losses included in net income, net of tax of $4.7, $5.8 | 0 | 16.2 | 0 | 19.7 | 0 |
Defined benefit plans: | |||||
Net (loss) gain arising from remeasurement during the period, net of tax of ($0.3), ($0.7), $1.8 | 0 | 0 | (0.8) | 6 | (2.1) |
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.4) | 0 | (0.3) | 0 | (1.3) | 0 |
Amortization of net actuarial loss included in net income, net of tax of $1.0, $3.6 | 0 | 3.1 | 0 | 12 | 0 |
Total other comprehensive (loss) income | (1.2) | 17 | (6.7) | 37.5 | (9.3) |
Total comprehensive loss | $ (6.2) | $ (56.7) | $ (33.3) | $ (43.8) | $ (103.9) |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized loss on cash flow hedges arising during the period, tax | $ (0.2) | $ 0 | ||
Reclassification adjustment for net losses included in net income, tax | 4.7 | 5.8 | ||
Net (loss) gain arising from remeasurement during the period, tax | $ (0.3) | 1.8 | $ (0.7) | |
Amortization of prior service benefits included in net income, tax | (0.1) | (0.4) | ||
Amortization of net actuarial loss included in net income, tax | $ 1 | $ 3.6 |
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] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
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 | ||||
Shares issued under employee plans | 0.2 | |||||
Shares purchased under employee plans and other | (2) | (2) | ||||
Stock-based compensation | 4.3 | 4.3 | ||||
Equity-based award modification | (10.2) | (10.2) | ||||
Dividends on preferred stock | (7.6) | (7.6) | ||||
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 | ||||
Equity-based award modification | (10.2) | (10.2) | ||||
Dividends on preferred stock | (2.4) | (2.4) | ||||
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 | |||||
Ending Balance, Shares at Sep. 30, 2021 | 0.5 | |||||
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 | |||||
Ending Balance, Shares at Sep. 30, 2021 | 0.5 | |||||
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2021 | 1,690.1 | $ 0 | $ 0 | 1,716.1 | (27.2) | 1.2 |
Beginning Balance, Shares at Dec. 31, 2021 | 0 | |||||
Beginning Balance, Shares at Dec. 31, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (94.6) | (94.6) | ||||
Other comprehensive income (loss) | (9.3) | (9.3) | ||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2022 | 1,586.2 | $ 0 | $ 0 | 1,716.1 | (121.8) | (8.1) |
Ending Balance, Shares at Sep. 30, 2022 | 0 | |||||
Ending Balance, Shares at Sep. 30, 2022 | 0 | |||||
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2022 | 1,619.5 | $ 0 | $ 0 | 1,716.1 | (95.2) | (1.4) |
Beginning Balance, Shares at Jun. 30, 2022 | 0 | |||||
Beginning Balance, Shares at Jun. 30, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (26.6) | (26.6) | ||||
Other comprehensive income (loss) | (6.7) | (6.7) | ||||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2022 | $ 1,586.2 | $ 0 | $ 0 | $ 1,716.1 | $ (121.8) | $ (8.1) |
Ending Balance, Shares at Sep. 30, 2022 | 0 | |||||
Ending Balance, Shares at Sep. 30, 2022 | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 7.5 | $ 5.6 |
Receivables, less allowances of $9.4 and $3.6 | 391.7 | 450.2 |
Inventory, materials and supplies | 78.7 | 57.1 |
Prepaid expenses | 46.1 | 50.4 |
Other current assets | 22 | 9.1 |
Total current assets | 546 | 572.4 |
Property, plant and equipment, net | 2,058.3 | 1,966.6 |
Operating lease right-of-use assets | 75.1 | 44.3 |
Goodwill | 719 | 646.3 |
Intangible assets, net | 851.8 | 928.3 |
Deferred income tax assets | 5.7 | 5.3 |
Other noncurrent assets | 57.7 | 35.6 |
Total assets | 4,313.6 | 4,198.8 |
Current liabilities | ||
Current portion of long-term debt | 44.7 | 19.7 |
Accounts payable | 432.4 | 399.2 |
Unearned revenue and customer deposits | 66.1 | 83.2 |
Accrued taxes | 23.8 | 25.3 |
Accrued interest | 4 | 1.9 |
Accrued payroll and benefits | 34.4 | 41.9 |
Other current liabilities | 47.4 | 45.5 |
Total current liabilities | 652.8 | 616.7 |
Long-term debt, less current portion | 1,588.2 | 1,428.9 |
Operating lease liabilities | 67.8 | 40.2 |
Pension and postretirement benefit obligations | 177.4 | 141.1 |
Pole license agreement obligation | 45.2 | 46.2 |
Deferred income tax liability | 98.3 | 139.6 |
Other noncurrent liabilities | 97.7 | 96 |
Total liabilities | 2,727.4 | 2,508.7 |
Shareowners’ equity | ||
Additional paid-in capital | 1,716.1 | 1,716.1 |
Accumulated deficit | (121.8) | (27.2) |
Accumulated other comprehensive (loss) income | (8.1) | 1.2 |
Total shareowners’ equity | 1,586.2 | 1,690.1 |
Total liabilities and shareowners’ equity | $ 4,313.6 | $ 4,198.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowance for receivables | $ 9.4 | $ 3.6 |
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, 2022 | |
Cash flows from operating activities | |||
Net loss | $ (5) | $ (81.3) | $ (94.6) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 30.2 | 194.9 | 381.1 |
Loss on impairment of long-lived assets | 0 | 0 | 2.7 |
Loss on extinguishment of debt | 0 | 10.7 | 0 |
Provision for loss on receivables | 0.9 | 2.1 | 5.8 |
Unrealized gain on interest rate swaps | 0 | 0 | (14.8) |
Noncash portion of interest expense (income) | (0.3) | 4 | 4 |
Deferred income taxes | (1.1) | (21.1) | (33.5) |
Pension and other postretirement payments in excess of expense | (1.9) | (0.2) | (12.3) |
Stock-based compensation | 0 | 4.3 | 0 |
Other, net | (0.3) | (5.2) | (1.4) |
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables | (20.3) | 51.1 | 48.6 |
Increase in inventory, materials, supplies, prepaid expenses and other current assets | (3.2) | (29.4) | (24) |
Increase (decrease) in accounts payable | (51.7) | 49.1 | 10 |
(Decrease) increase in accrued and other current liabilities | (37.5) | 2.8 | (23.9) |
(Increase) decrease in other noncurrent assets | (2.1) | 2.1 | (9.1) |
(Decrease) increase in other noncurrent liabilities | 29.9 | 8.8 | (3.6) |
Net cash provided by (used in) operating activities | (62.4) | 192.7 | 235 |
Cash flows from investing activities | |||
Capital expenditures | (35.4) | (165.2) | (341.6) |
Acquisition of business, net of cash acquired | (1,620.7) | 0 | (65.5) |
Acquisition of Paniolo fiber assets | (1.3) | (50.5) | 0 |
Proceeds from sale of assets | 0 | 9.1 | 2.3 |
Other, net | 0 | (0.1) | 0.1 |
Net cash used in investing activities | (1,657.4) | (206.7) | (404.7) |
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 increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days | (108.7) | 9 | 190.1 |
Repayment of debt | (1.4) | (13.4) | (15.5) |
Debt issuance costs | (42) | (0.8) | (0.7) |
Dividends paid on preferred stock | 0 | (7.8) | 0 |
Other, net | 0 | (2) | 0 |
Net cash provided by financing activities | 1,714 | 8 | 173.9 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | (0.1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (5.8) | (6) | 4.1 |
Cash, cash equivalents and restricted cash at beginning of period | 11.2 | 17.2 | 6.1 |
Cash, cash equivalents and restricted cash at end of period | 5.4 | 11.2 | 10.2 |
Noncash investing and financing transactions: | |||
Acquisition of property by assuming debt and other noncurrent liabilities | 3.8 | 3.8 | 8.1 |
Acquisition of property on account | $ 46.3 | $ 54.9 | $ 78.2 |
Description of Business and Acc
Description of Business and Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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 , however due to contractual terms 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 Condensed 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 had receivables with one customer, Verizon Communications Inc. (“Verizon”), which made up 26 % of the outstanding accounts receivable balance at December 31, 2021. No customers exceeded 10% of outstanding accounts receivable at September 30, 2022. Revenue derived from foreign operations was approximately of consolidated revenue for the three and nine months ended September 30, 2022. 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. 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, 2021 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 2021 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 Condensed 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, 2021. 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 related to a cost method investment and funds invested by Agile IWG Holdings, LLC (“Agile”) in a new entity that is expected to commence operations in the fourth quarter of 2022. 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: (dollars in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 7.5 $ 5.6 Restricted cash included in Other noncurrent assets 2.7 0.5 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 10.2 $ 6.1 Goodwill — Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is allocated at the business segment level. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value. Indefinite-Lived Intangible Assets — Intangible assets represent purchased assets that lack physical substance but can be separately distinguished from goodwill because of contractual or legal rights, or because the asset is capable of being separately sold or exchanged. Federal Communications Commission ("FCC") licenses for wireless spectrum represent indefinite-lived intangible assets. The Company may renew the wireless licenses in a routine manner every ten years for a nominal fee, provided the Company continues to meet the service and geographic coverage provisions required by the FCC. Intangible assets not subject to amortization are tested for impairment annually, or when events or changes in circumstances indicate that the asset might be impaired. Long-Lived Assets — Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset’s carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years. In the three months ended September 30, 2022, the Company recorded a loss on impairment of long-lived assets of $2.7 million related to the impairment of leasehold improvements at the Company’s headquarters. In addition, amortization of the remaining leasehold improvements at the Company’s headquarters will be accelerated to reflect the update to management’s estimate of the remaining useful life. 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 higher than the U.S. federal statutory rate due to state income taxes, offset in part by the effect of permanent items such as the GILTI inclusion 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. 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) Income.” 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) Income" 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. All cash flows associated with the Company’s derivative instruments are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. Recently Issued Accounting Standards 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, 2022 | |
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. 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. Additionally, 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 7, 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. Transaction costs were expensed as incurred and recorded to “Transaction and integration costs” on the Condensed Consolidated Statements of Operations. The valuation of the assets acquired and liabilities assumed was based on estimated fair values at the Merger Date. The allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed reflect various fair value estimates and analyses, including work performed by third-party valuation specialists. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is complete at September 30, 2022. The purchase price for Cincinnati Bell Inc. consisted of the following: (dollars in millions) Cash consideration for Cincinnati Bell Inc. common 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 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 1,950.8 Operating lease right-of-use assets 42.3 Goodwill 651.0 Intangible assets 969.6 Deferred tax assets 6.9 Other noncurrent assets 20.2 Total assets acquired 4,073.0 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 153.6 Other noncurrent liabilities 71.4 Total liabilities assumed 2,452.3 Net assets acquired $ 1,620.7 Measurement period adjustments recorded in the second quarter of 2022 were immaterial in nature and impacted “Property, plant and equipment,” “Goodwill,” and “Deferred income tax liability”. In the third quarter, an adjustment was recorded to reflect the Merger’s impact on state and local tax apportionment which resulted in an increase to “Deferred income tax liability” and to “Goodwill” of $4.3 million. Measurement period adjustments were applied retrospectively to the Merger Date. 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 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 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. 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, 2022, $0.5 million and $21.9 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, 2021, $0.5 million and $22.3 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. Acquisition of Agile IWG Holdings, LLC On May 2, 2022 (“Agile Acquisition Date”), the Company acquired Agile, based in Canton, Ohio for total cash consideration of $65.5 million. Agile delivers customers, primarily located in Ohio and Pennsylvania, with middle mile, last mile and campus connectivity services through hybrid fiber wireless networks that are designed, built and managed by Agile. The cash portion of the purchase price was funded through borrowings under the Receivables Facility and the Revolving Credit Facility (see Note 5). The valuation of the assets acquired and liabilities assumed is based on estimated fair values at the Agile Acquisition Date. The allocation disclosed below is considered preliminary in nature due to the ongoing work by management, with the assistance of third party experts, to refine the fair value estimates. The Company considers the allocation and fair value estimates of property, plant and equipment, ROU Assets and Liabilities, Intangible Assets and Goodwill to be preliminary in nature as of September 30, 2022. The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired as of the Agile Acquisition Date while the measurement period remains open. The Company incurred $1.9 million in acquisition expenses related to the Agile acquisition, of which $0.3 million and $1.9 million was recorded in the three and nine months ended September 30, 2022, respectively. No expenses related to the Agile acquisition were recorded in the Predecessor period in 2021 or the Successor period in 2021. These expenses are recorded in "Transaction and integration costs" on the Condensed Consolidated Statements of Operations. 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) Agile Assets acquired Receivables and other current assets $ 1.5 Property, plant and equipment 10.2 Operating lease right-of-use assets 27.8 Intangible assets 19.4 Goodwill 35.3 Total assets acquired 94.2 Liabilities assumed Accrued expenses and other current liabilities 2.5 Operating lease liabilities 25.7 Other noncurrent liabilities 0.5 Total liabilities assumed 28.7 Net assets acquired $ 65.5 In connection with this acquisition, the Company recorded goodwill attributable to a diversified customer base and acquired workforce with industry expertise. The Company is continuing to evaluate the amount of goodwill that is expected to be deductible for income tax purposes. During the third quarter of 2022, the Company recorded measurement period adjustments for Agile to reflect refinements in fair value estimates in addition to a working capital adjustment of $0.4 million that increased the purchase price to $65.5 million. Most significant adjustments recorded were related to the acquired operating leases included in Operating right-of-use assets” and Operating lease liabilities,” deferred tax liabilities included in “Other noncurrent liabilities” and “Intangible assets.” The offset to these adjustments were recorded as a net decrease to “Goodwill.” Based on fair value estimates, the identifiable intangible assets acquired are as follows: (dollars in millions) Fair Value Useful Lives Customer relationships $ 16.0 15 years Trade names 2.3 10 years Technology 1.1 7 years Total identifiable intangible assets $ 19.4 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue The Network segment provides products and services to both residential and commercial customers that can be categorized as Fioptics, previously referred to as “Consumer/SMB Fiber” in Hawaii and collectively with Fioptics in Cincinnati, Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Fioptics 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. Subsequent to the Company’s acquisition of Agile, services provided by Agile are also included in Enterprise Fiber. 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, 2022, 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 $183.5 million. 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 customer contracts is as follows: (dollars in millions) Three months ended December 31, 2022 $ 3.7 2023 15.2 2024 16.9 2025 16.9 2026 17.0 Thereafter 113.8 Network The Company has identified four distinct performance obligations in the Network 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 Network segment can be categorized into three main categories that include Fioptics, 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, subsidized fiber build 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 Network segment. For Data, Video and Voice products in Fioptics, 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 Network 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 Cloud and Communications services in the IT Services and Hardware segment that require us to incur installation and provisioning expenses. The asset recognized for Cloud and 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 Cloud and Communications 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: Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Network IT Services and Hardware Total Company Network IT Services and Hardware Total Company Network IT Services and Hardware Total Company Balance as of December 31, 2021 $ 0.7 $ 0.7 $ 1.4 $ 3.3 $ 0.3 $ 3.6 $ 4.0 $ 1.0 $ 5.0 Additions 0.5 0.5 1.0 2.6 0.7 3.3 3.1 1.2 4.3 Amortization (0.1 ) (0.1 ) (0.2 ) (0.4 ) (0.1 ) (0.5 ) (0.5 ) (0.2 ) (0.7 ) Balance as of March 31, 2022 1.1 1.1 2.2 5.5 0.9 6.4 6.6 2.0 8.6 Additions 0.6 0.9 1.5 2.4 0.3 2.7 3.0 1.2 4.2 Amortization (0.1 ) (0.1 ) (0.2 ) (0.4 ) (0.4 ) (0.8 ) (0.5 ) (0.5 ) (1.0 ) Balance as of June 30, 2022 1.6 1.9 3.5 7.5 0.8 8.3 9.1 2.7 11.8 Additions 0.6 0.7 1.3 3.2 0.3 3.5 3.8 1.0 4.8 Amortization (0.1 ) (0.2 ) (0.3 ) (0.8 ) (0.2 ) (1.0 ) (0.9 ) (0.4 ) (1.3 ) Balance as of September 30, 2022 $ 2.1 $ 2.4 $ 4.5 $ 9.9 $ 0.9 $ 10.8 $ 12.0 $ 3.3 $ 15.3 The Company recognizes a liability for cash received up-front for IRU contracts. At September 30, 2022 and December 31, 2021, $2.8 million and $2.2 million, respectively, of contract liabilities were included in "Other current liabilities." At September 30, 2022 and December 31, 2021, $55.3 million and $57.2 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 Successor Predecessor Successor Successor Predecessor (dollars in millions) Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Data $ 132.8 $ 31.6 $ 91.7 $ 388.4 $ 31.6 $ 334.6 Video 47.8 12.2 35.3 144.8 12.2 131.8 Voice 58.2 15.8 46.8 175.2 15.8 177.3 Other 12.3 2.1 6.6 33.2 2.1 20.5 Total Network 251.1 61.7 180.4 741.6 61.7 664.2 Consulting 86.9 21.6 56.5 253.8 21.6 193.6 Cloud 25.1 6.6 18.7 74.8 6.6 66.4 Communications 56.1 14.2 40.1 165.3 14.2 149.1 Infrastructure Solutions 49.7 9.6 23.4 121.7 9.6 83.3 Total IT Services and Hardware 217.8 52.0 138.7 615.6 52.0 492.4 Intersegment revenue (6.8 ) (2.3 ) (4.5 ) (19.8 ) (2.3 ) (17.9 ) Total revenue $ 462.1 $ 111.4 $ 314.6 $ 1,337.4 $ 111.4 $ 1,138.7 The following table presents revenues disaggregated by contract type: Successor Three Months Ended September 30, 2022 (dollars in millions) Network IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 6.9 $ 44.8 $ — $ 51.7 Products and Services transferred over time 239.4 171.0 — 410.4 Intersegment revenue 4.8 2.0 (6.8 ) — Total revenue $ 251.1 $ 217.8 $ (6.8 ) $ 462.1 Successor September 8, 2021 to September 30, 2021 (dollars in millions) Network 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) Network 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 Successor Nine Months Ended September 30, 2022 (dollars in millions) Network IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 20.4 $ 121.4 $ — $ 141.8 Products and Services transferred over time 706.7 488.9 — 1,195.6 Intersegment revenue 14.5 5.3 (19.8 ) — Total revenue $ 741.6 $ 615.6 $ (19.8 ) $ 1,337.4 Successor September 8, 2021 to September 30, 2021 (dollars in millions) Network 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) Network 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets Goodwill The changes in the Company's goodwill consisted of the following: (dollars in millions) IT Services and Hardware Network Total Company Goodwill, balance as of December 31, 2021 $ 157.4 $ 488.9 $ 646.3 Activity during the year: Adjustments to prior year Merger 2.5 2.2 4.7 Acquisition of Agile — 35.3 35.3 Adjustments to postretirement and other benefit obligations (Note 8) 19.6 15.4 35.0 Currency translations (2.3 ) — (2.3 ) Goodwill, balance as of September 30, 2022 $ 177.2 $ 541.8 $ 719.0 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 Network reporting unit and IT Services and Hardware reporting unit is complete at September 30, 2022. In addition, goodwill in the Network segment increased by $35.3 million due to the acquisition of Agile. See Note 2 for further information related to the Agile acquisition. No impairment losses were recognized in goodwill for the three and nine months ended September 30, 2022, the Successor period in 2021 and 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: September 30, 2022 December 31, 2021 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 861.4 $ (114.2 ) $ 747.2 $ 850.0 $ (36.2 ) $ 813.8 Trade names 109.3 (16.9 ) 92.4 108.0 (5.0 ) 103.0 Technology 6.1 (0.8 ) 5.3 5.0 (0.2 ) 4.8 Total 976.8 (131.9 ) 844.9 963.0 (41.4 ) 921.6 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 6.9 — 6.9 6.7 — 6.7 Total intangible assets $ 983.7 $ (131.9 ) $ 851.8 $ 969.7 $ (41.4 ) $ 928.3 I n connection with the Merger, the company recorded $963.0 million of finite-lived intangible assets and $6.6 million of indefinite-lived intangible assets representing the fair values at the Merger Date. As a result of the acquisition of Agile, the Company recorded $19.4 million of finite-lived intangible assets representing the preliminary fair value at the Agile Acquisition date. See Note 2 for additional information regarding the Merger and acquisition of Agile. The change in gross carrying amounts for finite-lived intangible assets is also due to foreign currency translation on finite-lived intangible assets denominated in foreign currency. Amortization expense for finite-lived intangible assets was $31.2 million and $91.2 million for the three and nine months ended September 30, 2022, respectively. Amortization expense for finite-lived intangible assets was $8.4 million in the Successor period in 2021. 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 addition to amortization expense, the changes in finite-lived intangible assets from December 31, 2021 to September 30, 2022 are due to foreign currency translation. three and nine months ended September 30, 2022, the Successor period in 2021 and 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: Customer relationships 15 years Trade names 3 to 10 years Technology 7 years The annual estimated amortization expense for future years is as follows: (dollars in millions) Three months ended December 31, 2022 $ 30.6 2023 115.1 2024 105.8 2025 93.6 2026 86.2 Thereafter 413.6 Total $ 844.9 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | 5. Debt and Other Financing Arrangements The Company’s debt consists of the following: (dollars in millions) September 30, 2022 December 31, 2021 Current portion of long-term debt: Credit Agreement - Term B-1 Loans $ 5.0 $ 5.0 Credit Agreement - Term B-2 Loans 6.5 6.5 7 1/4% Senior Notes due 2023 (1) 23.1 — Paniolo Fiber Assets Financing Arrangement 0.5 0.5 Other financing arrangements 0.3 0.5 Finance lease liabilities 9.3 7.2 Current portion of long-term debt 44.7 19.7 Long-term debt, less current portion: Receivables Facility 178.4 153.6 Credit Agreement - Revolving Credit Facility 164.0 — Credit Agreement - Term B-1 Loans 491.3 495.0 Credit Agreement - Term B-2 Loans 638.6 643.5 7 1/4% Senior Notes due 2023 (1) — 24.0 Various Cincinnati Bell Telephone notes (1) 96.6 97.5 Paniolo Fiber Assets Financing Arrangement 21.9 22.3 Other financing arrangements — 0.4 Finance lease liabilities 42.0 42.3 1,632.8 1,478.6 Net unamortized discount (4.5 ) (4.9 ) Unamortized note issuance costs (40.1 ) (44.8 ) Long-term debt, less current portion 1,588.2 1,428.9 Total debt $ 1,632.9 $ 1,448.6 (1) As of September 30, 2022, the net carrying amounts of the 7 ¼ 7 ¼ Credit Agreement The Company had $164.0 million of outstanding borrowings on the Credit Agreement’s revolving credit facility, leaving $236.0 million available for borrowings as of September 30, 2022. The revolving credit facility matures in September 2026, and the Term B-1 Loans and Term B-2 loans under the Credit Agreement mature in November 2028 Accounts Receivable Securitization Facility As of September 30, 2022, the Company had $178.4 million in borrowings and $21.0 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $14.6 million remaining availability on the total borrowing capacity of $214.0 million. The maximum borrowing limit for loans and letters of credit under the Receivables Facility is $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. The Receivables Facility is subject to renewal in June 2023 and has a termination date in June 2024. In the second quarter of 2022, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions including the replacement of LIBOR with SOFR, a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York. 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, 2022, the outstanding balance of certain accounts receivable sold, rather than borrowed against, was $46.3 million. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 6 . 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: (dollars in millions) Balance Sheet Location September 30, 2022 December 31, 2021 Operating lease assets, net of amortization Operating lease right-of-use assets $ 75.1 $ 44.3 Finance lease assets, net of amortization Property, plant and equipment, net 13.9 10.7 Operating lease liabilities: Current operating lease liabilities Other current liabilities 12.9 9.6 Noncurrent operating lease liabilities Operating lease liabilities 67.8 40.2 Total operating lease liabilities 80.7 49.8 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 9.3 7.2 Noncurrent finance lease liabilities Long-term debt, less current portion 42.0 42.3 Total finance lease liabilities $ 51.3 $ 49.5 . Supplemental cash flow information related to leases is as follows: Successor Successor Predecessor (dollars in millions) Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 2.5 $ 0.3 $ 2.9 Operating cash flows from operating leases $ 9.0 $ 0.8 $ 7.2 Financing cash flows from finance leases $ 6.4 $ 1.2 $ 9.9 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 11.6 $ — $ 11.5 New finance leases $ 8.1 $ — $ 3.8 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 7. 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. Cash Flow Hedging Cash Flow Hedges Not Designated as Hedging Instruments The Company uses non-designated cash flow hedges including interest rate swap agreements and interest rate cap agreements t o 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. Interest rate caps provide that the counterparty will pay the purchaser at the end of each contractual period in which the index interest rate exceeds the contractually agreed upon cap rate. In the second quarter of 2022, the Company entered into three forward starting non-amortizing interest rate swaps to convert variable rate debt to fixed rate debt. The interest rate swaps have notional amounts of $175.0 million, $115.0 million and $85.0 million resulting in interest payments based on an average fixed rate per swap of 2.9185%, 2.8520% and 2.8605%, respectively, plus the applicable margin per the requirements in the Credit Agreement. The interest rate swaps expire in May 2026. In the second quarter of 2022, the Company entered into two interest rate cap agreements to limit exposure to interest rate risk on variable rate debt. The interest rate caps each have a cap rate of 3.0% with notional amounts of $200.0 million and $175.0 million and deferred premiums of $6.7 million and $5.3 million, respectively. The deferred premiums will be paid on a monthly basis over the term of the respective interest rate cap. The interest rate caps expire in May 2026 The fair value of the Company's interest rate swaps and interest rate caps are impacted by the credit risk of both the Company and its counterparties. The Company has agreements with its derivative financial instrument counterparties that contain provisions providing that if the Company defaults on the indebtedness associated with its derivative financial instruments, then the Company could also be declared in default on its derivative financial instruments obligations. In addition, the Company minimizes nonperformance risk on its derivative instruments by evaluating the creditworthiness of its counterparties, which are limited to major banks and financial institutions. The Company does not apply hedge accounting to the interest rate swaps and interest rate caps and records all mark-to-market adjustments directly to “Other (income) expense, net” in the Condensed Consolidated Statements of Operations. The fair values of the interest rate swaps and interest rate caps are categorized as Level 2 in the fair value hierarchy as they are based on well-recognized financial principles and available market data. As of September 30, 2022, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location September 30, 2022 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Assets: Interest Rate Swap Other current assets $ 5.0 $ — $ 5.0 $ — Interest Rate Swap Other noncurrent assets $ 8.3 $ — $ 8.3 $ — Interest Rate Cap Other current assets $ 1.5 $ — $ 1.5 $ — Interest Rate Cap Other noncurrent assets $ 0.2 $ — $ 0.2 $ — Liabilities: Interest Rate Cap Other noncurrent liabilities $ 0.2 $ — $ 0.2 $ — The following table summarizes the location of gains in the Condensed Consolidated Statements of Operations that were recognized during the three and nine months ended September 30, 2022, in addition to the derivative contract type: (dollars in millions) Statement of Operations Location Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Interest Rate Swap Other (income) expense, net $ (13.8 ) $ (11.9 ) Interest Rate Cap Other (income) expense, net $ (10.9 ) $ (0.6 ) Interest Rate Hedges 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 Company’s former 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 Company’s former 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 of the third quarter of 2021 in connection with the repayment in full of the Term Loan B under the Company’s former Corporate Credit Agreement that occurred as part of the Merger Agreement. The amount of gains recognized in Accumulated Other Comprehensive Income ("AOCI") (effective portion) net of reclassifications into earnings is as follows: Successor Predecessor Successor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Interest Rate Swap $ - $ - $ - $ 5.3 The amount of losses reclassified from AOCI into earnings is as follows: Successor Predecessor Successor Predecessor (dollars in millions) Statement of Operations Location September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Interest Rate Swap Other income (expense), net $ - $ (20.1 ) $ - $ (20.1 ) Interest Rate Swap Interest expense $ - $ (0.8 ) $ - $ (5.4 ) Disclosure on Financial Instruments The carrying values of the Company's financial instruments approximate the estimated fair values as of September 30, 2022 and December 31, 2021, except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows: September 30, 2022 December 31, 2021 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,621.4 $ 1,559.9 $ 1,443.0 $ 1,443.0 Other financing arrangements 51.3 44.0 53.1 51.7 *Excludes finance leases, other financing arrangements and note issuance costs. In connection with the Merger, the 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, 2022 and December 31, 2021, 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, 2022, 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, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | 8. Pension and Postretirement Plans As of September 30, 2022, 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 the three and nine months ended September 30, 2022, Hawaiian Telcom’s pension plans made lump sum payments of $1.4 million and $6.8 million, respectively, resulting in a reduction of the benefit obligation of $6.8 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 nine months ended September 30, 2022. 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 third quarter of 2022, the Company identified a correction related to the Hawaiian Telcom postretirement health and life insurance plans liability. The adjustment resulted in an increase to the “Postretirement and Other Benefits liability” of $45.9 million, an increase to “Goodwill” of $35.0 million and reduction to “Deferred income tax liabilities” of $10.9 million on the Condensed Consolidated Balance Sheets. The impact of the correction is immaterial to current and prior period financial statements. In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for the nine months ended September 30, 2022 and 2021. Pension and postretirement (benefits) costs are as follows: Pension Benefits Postretirement and Other Benefits Successor Successor Predecessor Successor Successor Predecessor (dollars in millions) Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Service cost $ — $ — $ — $ 0.4 $ — $ 0.1 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 4.2 0.9 2.7 1.7 0.1 0.5 Expected return on plan assets (6.6 ) (2.1 ) (5.2 ) — — — Amortization of: Prior service benefit — — — — — (0.4 ) Actuarial loss — — 4.5 — — — Pension / postretirement (benefit) cost $ (2.4 ) $ (1.2 ) $ 2.0 $ 2.1 $ 0.1 $ 0.2 Pension Benefits Postretirement and Other Benefits Successor Successor Predecessor Successor Successor Predecessor (dollars in millions) Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Service cost $ — $ — $ — $ 0.6 $ — $ 0.3 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 11.9 0.9 10.2 3.1 0.1 1.8 Expected return on plan assets (20.9 ) (2.1 ) (19.9 ) — — — Amortization of: Prior service benefit — — — — — (1.7 ) Actuarial loss — — 16.0 — — — Pension / postretirement (benefit) cost $ (9.0 ) $ (1.2 ) $ 6.3 $ 3.7 $ 0.1 $ 0.4 Amortizations of prior service benefit and actuarial loss in the Predecessor periods represent reclassifications from accumulated other comprehensive income. For the nine months ended September 30, 2022, there were no contributions to the qualified pension plans, and contributions to the non-qualified pension plans were $1.6 million. Contributions to the qualified and non-qualified pension plans in the Predecessor period in 2021 were $0.9 million and $1.8 million, respectively. In the Successor period in 2021, there were no contributions to the qualified pension plans and contributions to the non-qualified pension plans were $0.2 million. Based on current assumptions, no contributions are expected to be made to the qualified pension plans in 2022. Contributions to the non-qualified pension plans in 2022 are expected to be approximately $3 million. For the nine months ended September 30, 2022, contributions to our postretirement plans were $5.3 million. For the Predecessor and Successor periods in 2021, contributions to our postretirement plans were $4.3 million and $0.5 million, respectively. Management expects to make total cash payments of approximately $8.0 million related to its postretirement health plans in 2022. |
Shareowners' Equity (Deficit)
Shareowners' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2022 | |
Shareowners Deficit [Abstract] | |
Shareowners' Equity (Deficit) | 9. 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. Additionally, the Company redeemed each of our issued and outstanding Depositary Shares simultaneously with the redemption of the 6 ¾% 6 ¾ Effective October 18, 2021, Parent amended and restated the Articles of Incorporation of Cincinnati Bell to reduce the number of authorized shares from 96,000,000 Common Shares to 100 Common Shares, each with $0.01 par value. As of both September 30, 2022 and December 31, 2021, Parent is the sole shareholder of the Company’s 100 Common Shares. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (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 Gain (Loss) Total Balance as of June 30, 2022 $ 1.3 $ — $ (2.7 ) $ (1.4 ) Remeasurement of benefit obligations (0.8 ) — — (0.8 ) Foreign currency loss — — (5.9 ) (5.9 ) Balance as of September 30, 2022 $ 0.5 $ — $ (8.6 ) $ (8.1 ) Successor 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 ) (dollars in millions) Successor Unrecognized Net Periodic Pension and Postretirement Benefit (Cost) Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation Gain (Loss) Total Balance as of December 31, 2021 $ 2.6 $ — $ (1.4 ) $ 1.2 Remeasurement of benefit obligations (2.1 ) — — (2.1 ) Foreign currency loss — — (7.2 ) (7.2 ) Balance as of September 30, 2022 $ 0.5 $ — $ (8.6 ) $ (8.1 ) Successor 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 ) (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. The other components of net periodic pension and postretirement benefit plans expense are recorded in " Other components of pension and postretirement benefit plans (benefit) expense ( 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. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | 10. 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 Network and IT Services and Hardware. The Network 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, information services and subsidized fiber build project revenue related to extending the Company’s fiber network in the Greater Cincinnati territory subsidized through our UniCity program. In May 2022, the Company acquired Agile and includes Agile’s financial results in the Network segment. 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 Successor Predecessor Successor Successor Predecessor (dollars in millions) Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Revenue Network $ 251.1 $ 61.7 $ 180.4 $ 741.6 $ 61.7 $ 664.2 IT Services and Hardware 217.8 52.0 138.7 615.6 52.0 492.4 Intersegment (6.8 ) (2.3 ) (4.5 ) (19.8 ) (2.3 ) (17.9 ) Total revenue $ 462.1 $ 111.4 $ 314.6 $ 1,337.4 $ 111.4 $ 1,138.7 Intersegment revenue Network $ 4.8 $ 1.6 $ 3.4 $ 14.5 $ 1.6 $ 13.1 IT Services and Hardware 2.0 0.7 1.1 5.3 0.7 4.8 Total intersegment revenue $ 6.8 $ 2.3 $ 4.5 $ 19.8 $ 2.3 $ 17.9 Operating (loss) income Network $ (27.2 ) $ (2.3 ) $ 18.9 $ (49.2 ) $ (2.3 ) $ 78.3 IT Services and Hardware (0.7 ) 1.7 9.0 (10.7 ) 1.7 25.2 Corporate (8.8 ) (0.8 ) (63.2 ) (24.2 ) (0.8 ) (75.8 ) Total operating (loss) income $ (36.7 ) $ (1.4 ) $ (35.3 ) $ (84.1 ) $ (1.4 ) $ 27.7 Expenditures for long-lived assets* Network $ 131.7 $ 33.4 $ 92.0 $ 384.3 $ 33.4 $ 199.8 IT Services and Hardware 9.3 3.3 4.0 22.7 3.3 15.9 Corporate 0.1 1,620.7 — 0.1 1,620.7 — Total expenditures for long-lived assets $ 141.1 $ 1,657.4 $ 96.0 $ 407.1 $ 1,657.4 $ 215.7 Depreciation and amortization Network $ 104.7 $ 24.3 $ 44.5 $ 301.5 $ 24.3 $ 166.9 IT Services and Hardware 26.8 5.8 7.6 79.4 5.8 27.9 Corporate — 0.1 — 0.2 0.1 0.1 Total depreciation and amortization $ 131.5 $ 30.2 $ 52.1 $ 381.1 $ 30.2 $ 194.9 *Includes cost of acquisitions (dollars in millions) September 30, 2022 December 31, 2021 Assets Network $ 3,153.7 $ 2,949.2 IT Services and Hardware 800.6 842.0 Corporate and eliminations 359.3 407.6 Total assets $ 4,313.6 $ 4,198.8 |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 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 , however due to contractual terms 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 Condensed 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 | 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 had receivables with one customer, Verizon Communications Inc. (“Verizon”), which made up 26 % of the outstanding accounts receivable balance at December 31, 2021. No customers exceeded 10% of outstanding accounts receivable at September 30, 2022. Revenue derived from foreign operations was approximately of consolidated revenue for the three and nine months ended September 30, 2022. 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. |
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, 2021 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 2021 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 Condensed 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, 2021. 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 related to a cost method investment and funds invested by Agile IWG Holdings, LLC (“Agile”) in a new entity that is expected to commence operations in the fourth quarter of 2022. 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: (dollars in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 7.5 $ 5.6 Restricted cash included in Other noncurrent assets 2.7 0.5 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 10.2 $ 6.1 |
Goodwill | Goodwill — Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is allocated at the business segment level. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value. |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets — Intangible assets represent purchased assets that lack physical substance but can be separately distinguished from goodwill because of contractual or legal rights, or because the asset is capable of being separately sold or exchanged. Federal Communications Commission ("FCC") licenses for wireless spectrum represent indefinite-lived intangible assets. The Company may renew the wireless licenses in a routine manner every ten years for a nominal fee, provided the Company continues to meet the service and geographic coverage provisions required by the FCC. Intangible assets not subject to amortization are tested for impairment annually, or when events or changes in circumstances indicate that the asset might be impaired. |
Long-Lived Assets | Long-Lived Assets — Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset’s carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years. In the three months ended September 30, 2022, the Company recorded a loss on impairment of long-lived assets of $2.7 million related to the impairment of leasehold improvements at the Company’s headquarters. In addition, amortization of the remaining leasehold improvements at the Company’s headquarters will be accelerated to reflect the update to management’s estimate of the remaining useful life. |
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 higher than the U.S. federal statutory rate due to state income taxes, offset in part by the effect of permanent items such as the GILTI inclusion 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. |
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) Income.” 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) Income" 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. All cash flows associated with the Company’s derivative instruments are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards 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. |
Description of Business and A_3
Description of Business and Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: (dollars in millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 7.5 $ 5.6 Restricted cash included in Other noncurrent assets 2.7 0.5 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 10.2 $ 6.1 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cincinnati Bell Inc. [Member] | |
Schedule of Consideration | The purchase price for Cincinnati Bell Inc. consisted of the following: (dollars in millions) Cash consideration for Cincinnati Bell Inc. common 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 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 1,950.8 Operating lease right-of-use assets 42.3 Goodwill 651.0 Intangible assets 969.6 Deferred tax assets 6.9 Other noncurrent assets 20.2 Total assets acquired 4,073.0 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 153.6 Other noncurrent liabilities 71.4 Total liabilities assumed 2,452.3 Net assets acquired $ 1,620.7 |
Fair Values of Identifiable Intangible Assets Acquired | The 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 |
Agile IWG Holdings, LLC [Member] | |
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) Agile Assets acquired Receivables and other current assets $ 1.5 Property, plant and equipment 10.2 Operating lease right-of-use assets 27.8 Intangible assets 19.4 Goodwill 35.3 Total assets acquired 94.2 Liabilities assumed Accrued expenses and other current liabilities 2.5 Operating lease liabilities 25.7 Other noncurrent liabilities 0.5 Total liabilities assumed 28.7 Net assets acquired $ 65.5 |
Fair Values of Identifiable Intangible Assets Acquired | Based on fair value estimates, the identifiable intangible assets acquired are as follows: (dollars in millions) Fair Value Useful Lives Customer relationships $ 16.0 15 years Trade names 2.3 10 years Technology 1.1 7 years Total identifiable intangible assets $ 19.4 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Expected Revenue to be Recognized for Existing Customer Contracts | The expected revenue to be recognized for existing customer contracts is as follows: (dollars in millions) Three months ended December 31, 2022 $ 3.7 2023 15.2 2024 16.9 2025 16.9 2026 17.0 Thereafter 113.8 |
Schedule of Activity of Contract Assets | The following table presents the activity for the Company’s contract assets: Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Network IT Services and Hardware Total Company Network IT Services and Hardware Total Company Network IT Services and Hardware Total Company Balance as of December 31, 2021 $ 0.7 $ 0.7 $ 1.4 $ 3.3 $ 0.3 $ 3.6 $ 4.0 $ 1.0 $ 5.0 Additions 0.5 0.5 1.0 2.6 0.7 3.3 3.1 1.2 4.3 Amortization (0.1 ) (0.1 ) (0.2 ) (0.4 ) (0.1 ) (0.5 ) (0.5 ) (0.2 ) (0.7 ) Balance as of March 31, 2022 1.1 1.1 2.2 5.5 0.9 6.4 6.6 2.0 8.6 Additions 0.6 0.9 1.5 2.4 0.3 2.7 3.0 1.2 4.2 Amortization (0.1 ) (0.1 ) (0.2 ) (0.4 ) (0.4 ) (0.8 ) (0.5 ) (0.5 ) (1.0 ) Balance as of June 30, 2022 1.6 1.9 3.5 7.5 0.8 8.3 9.1 2.7 11.8 Additions 0.6 0.7 1.3 3.2 0.3 3.5 3.8 1.0 4.8 Amortization (0.1 ) (0.2 ) (0.3 ) (0.8 ) (0.2 ) (1.0 ) (0.9 ) (0.4 ) (1.3 ) Balance as of September 30, 2022 $ 2.1 $ 2.4 $ 4.5 $ 9.9 $ 0.9 $ 10.8 $ 12.0 $ 3.3 $ 15.3 |
Schedule of Revenues Disaggregation by Product and Service Lines | The following table presents revenues disaggregated by product and service lines: Successor Successor Predecessor Successor Successor Predecessor (dollars in millions) Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Data $ 132.8 $ 31.6 $ 91.7 $ 388.4 $ 31.6 $ 334.6 Video 47.8 12.2 35.3 144.8 12.2 131.8 Voice 58.2 15.8 46.8 175.2 15.8 177.3 Other 12.3 2.1 6.6 33.2 2.1 20.5 Total Network 251.1 61.7 180.4 741.6 61.7 664.2 Consulting 86.9 21.6 56.5 253.8 21.6 193.6 Cloud 25.1 6.6 18.7 74.8 6.6 66.4 Communications 56.1 14.2 40.1 165.3 14.2 149.1 Infrastructure Solutions 49.7 9.6 23.4 121.7 9.6 83.3 Total IT Services and Hardware 217.8 52.0 138.7 615.6 52.0 492.4 Intersegment revenue (6.8 ) (2.3 ) (4.5 ) (19.8 ) (2.3 ) (17.9 ) Total revenue $ 462.1 $ 111.4 $ 314.6 $ 1,337.4 $ 111.4 $ 1,138.7 The following table presents revenues disaggregated by contract type: Successor Three Months Ended September 30, 2022 (dollars in millions) Network IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 6.9 $ 44.8 $ — $ 51.7 Products and Services transferred over time 239.4 171.0 — 410.4 Intersegment revenue 4.8 2.0 (6.8 ) — Total revenue $ 251.1 $ 217.8 $ (6.8 ) $ 462.1 Successor September 8, 2021 to September 30, 2021 (dollars in millions) Network 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) Network 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 Successor Nine Months Ended September 30, 2022 (dollars in millions) Network IT Services and Hardware Intersegment revenue elimination Total Products and Services transferred at a point in time $ 20.4 $ 121.4 $ — $ 141.8 Products and Services transferred over time 706.7 488.9 — 1,195.6 Intersegment revenue 14.5 5.3 (19.8 ) — Total revenue $ 741.6 $ 615.6 $ (19.8 ) $ 1,337.4 Successor September 8, 2021 to September 30, 2021 (dollars in millions) Network 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) Network 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the Company's goodwill consisted of the following: (dollars in millions) IT Services and Hardware Network Total Company Goodwill, balance as of December 31, 2021 $ 157.4 $ 488.9 $ 646.3 Activity during the year: Adjustments to prior year Merger 2.5 2.2 4.7 Acquisition of Agile — 35.3 35.3 Adjustments to postretirement and other benefit obligations (Note 8) 19.6 15.4 35.0 Currency translations (2.3 ) — (2.3 ) Goodwill, balance as of September 30, 2022 $ 177.2 $ 541.8 $ 719.0 |
Schedule of Intangible Assets | The Company’s intangible assets consisted of the following: September 30, 2022 December 31, 2021 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 861.4 $ (114.2 ) $ 747.2 $ 850.0 $ (36.2 ) $ 813.8 Trade names 109.3 (16.9 ) 92.4 108.0 (5.0 ) 103.0 Technology 6.1 (0.8 ) 5.3 5.0 (0.2 ) 4.8 Total 976.8 (131.9 ) 844.9 963.0 (41.4 ) 921.6 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 6.9 — 6.9 6.7 — 6.7 Total intangible assets $ 983.7 $ (131.9 ) $ 851.8 $ 969.7 $ (41.4 ) $ 928.3 |
Schedule of Estimated Useful Lives for Finite-lived Intangible Assets | The estimated useful lives for each finite-lived intangible asset class are as follows: Customer relationships 15 years Trade names 3 to 10 years Technology 7 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, 2022 $ 30.6 2023 115.1 2024 105.8 2025 93.6 2026 86.2 Thereafter 413.6 Total $ 844.9 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: (dollars in millions) September 30, 2022 December 31, 2021 Current portion of long-term debt: Credit Agreement - Term B-1 Loans $ 5.0 $ 5.0 Credit Agreement - Term B-2 Loans 6.5 6.5 7 1/4% Senior Notes due 2023 (1) 23.1 — Paniolo Fiber Assets Financing Arrangement 0.5 0.5 Other financing arrangements 0.3 0.5 Finance lease liabilities 9.3 7.2 Current portion of long-term debt 44.7 19.7 Long-term debt, less current portion: Receivables Facility 178.4 153.6 Credit Agreement - Revolving Credit Facility 164.0 — Credit Agreement - Term B-1 Loans 491.3 495.0 Credit Agreement - Term B-2 Loans 638.6 643.5 7 1/4% Senior Notes due 2023 (1) — 24.0 Various Cincinnati Bell Telephone notes (1) 96.6 97.5 Paniolo Fiber Assets Financing Arrangement 21.9 22.3 Other financing arrangements — 0.4 Finance lease liabilities 42.0 42.3 1,632.8 1,478.6 Net unamortized discount (4.5 ) (4.9 ) Unamortized note issuance costs (40.1 ) (44.8 ) Long-term debt, less current portion 1,588.2 1,428.9 Total debt $ 1,632.9 $ 1,448.6 (1) As of September 30, 2022, the net carrying amounts of the 7 ¼ 7 ¼ |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the Company's leases is as follows: (dollars in millions) Balance Sheet Location September 30, 2022 December 31, 2021 Operating lease assets, net of amortization Operating lease right-of-use assets $ 75.1 $ 44.3 Finance lease assets, net of amortization Property, plant and equipment, net 13.9 10.7 Operating lease liabilities: Current operating lease liabilities Other current liabilities 12.9 9.6 Noncurrent operating lease liabilities Operating lease liabilities 67.8 40.2 Total operating lease liabilities 80.7 49.8 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 9.3 7.2 Noncurrent finance lease liabilities Long-term debt, less current portion 42.0 42.3 Total finance lease liabilities $ 51.3 $ 49.5 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Successor Successor Predecessor (dollars in millions) Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 2.5 $ 0.3 $ 2.9 Operating cash flows from operating leases $ 9.0 $ 0.8 $ 7.2 Financing cash flows from finance leases $ 6.4 $ 1.2 $ 9.9 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 11.6 $ — $ 11.5 New finance leases $ 8.1 $ — $ 3.8 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Interest rate Swaps and Interest Rate Caps are Recorded in Condensed Consolidated Balance Sheets | As of September 30, 2022, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location September 30, 2022 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Assets: Interest Rate Swap Other current assets $ 5.0 $ — $ 5.0 $ — Interest Rate Swap Other noncurrent assets $ 8.3 $ — $ 8.3 $ — Interest Rate Cap Other current assets $ 1.5 $ — $ 1.5 $ — Interest Rate Cap Other noncurrent assets $ 0.2 $ — $ 0.2 $ — Liabilities: Interest Rate Cap Other noncurrent liabilities $ 0.2 $ — $ 0.2 $ — |
Schedule of Summarizes the Location of Gains in the Condensed Consolidated Statements of Operations in Addition to the Derivative Contract Type | The following table summarizes the location of gains in the Condensed Consolidated Statements of Operations that were recognized during the three and nine months ended September 30, 2022, in addition to the derivative contract type: (dollars in millions) Statement of Operations Location Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Interest Rate Swap Other (income) expense, net $ (13.8 ) $ (11.9 ) Interest Rate Cap Other (income) expense, net $ (10.9 ) $ (0.6 ) |
Amount of Gains Recognized in Accumulated Other Comprehensive Income ("AOCI") Net of Reclassification into Earnings | The amount of gains recognized in Accumulated Other Comprehensive Income ("AOCI") (effective portion) net of reclassifications into earnings is as follows: Successor Predecessor Successor Predecessor (dollars in millions) September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Interest Rate Swap $ - $ - $ - $ 5.3 |
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 Successor Predecessor (dollars in millions) Statement of Operations Location September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Interest Rate Swap Other income (expense), net $ - $ (20.1 ) $ - $ (20.1 ) Interest Rate Swap Interest expense $ - $ (0.8 ) $ - $ (5.4 ) |
Schedule of Carrying and Fair Values by Balance Sheet Grouping | The carrying and fair values of these items are as follows: September 30, 2022 December 31, 2021 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,621.4 $ 1,559.9 $ 1,443.0 $ 1,443.0 Other financing arrangements 51.3 44.0 53.1 51.7 *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, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Pension and Postretirement Costs (Benefits) | Pension and postretirement (benefits) costs are as follows: Pension Benefits Postretirement and Other Benefits Successor Successor Predecessor Successor Successor Predecessor (dollars in millions) Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Service cost $ — $ — $ — $ 0.4 $ — $ 0.1 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 4.2 0.9 2.7 1.7 0.1 0.5 Expected return on plan assets (6.6 ) (2.1 ) (5.2 ) — — — Amortization of: Prior service benefit — — — — — (0.4 ) Actuarial loss — — 4.5 — — — Pension / postretirement (benefit) cost $ (2.4 ) $ (1.2 ) $ 2.0 $ 2.1 $ 0.1 $ 0.2 Pension Benefits Postretirement and Other Benefits Successor Successor Predecessor Successor Successor Predecessor (dollars in millions) Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Service cost $ — $ — $ — $ 0.6 $ — $ 0.3 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 11.9 0.9 10.2 3.1 0.1 1.8 Expected return on plan assets (20.9 ) (2.1 ) (19.9 ) — — — Amortization of: Prior service benefit — — — — — (1.7 ) Actuarial loss — — 16.0 — — — Pension / postretirement (benefit) cost $ (9.0 ) $ (1.2 ) $ 6.3 $ 3.7 $ 0.1 $ 0.4 |
Shareowners' Equity (Deficit) (
Shareowners' Equity (Deficit) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Shareowners Deficit [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The changes in accumulated other comprehensive income (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 Gain (Loss) Total Balance as of June 30, 2022 $ 1.3 $ — $ (2.7 ) $ (1.4 ) Remeasurement of benefit obligations (0.8 ) — — (0.8 ) Foreign currency loss — — (5.9 ) (5.9 ) Balance as of September 30, 2022 $ 0.5 $ — $ (8.6 ) $ (8.1 ) Successor 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 ) (dollars in millions) Successor Unrecognized Net Periodic Pension and Postretirement Benefit (Cost) Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation Gain (Loss) Total Balance as of December 31, 2021 $ 2.6 $ — $ (1.4 ) $ 1.2 Remeasurement of benefit obligations (2.1 ) — — (2.1 ) Foreign currency loss — — (7.2 ) (7.2 ) Balance as of September 30, 2022 $ 0.5 $ — $ (8.6 ) $ (8.1 ) Successor 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 ) (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. The other components of net periodic pension and postretirement benefit plans expense are recorded in " Other components of pension and postretirement benefit plans (benefit) expense ( 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. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 Successor Predecessor Successor Successor Predecessor (dollars in millions) Three Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 July 1, 2021 to September 7, 2021 Nine Months Ended September 30, 2022 September 8, 2021 to September 30, 2021 January 1, 2021 to September 7, 2021 Revenue Network $ 251.1 $ 61.7 $ 180.4 $ 741.6 $ 61.7 $ 664.2 IT Services and Hardware 217.8 52.0 138.7 615.6 52.0 492.4 Intersegment (6.8 ) (2.3 ) (4.5 ) (19.8 ) (2.3 ) (17.9 ) Total revenue $ 462.1 $ 111.4 $ 314.6 $ 1,337.4 $ 111.4 $ 1,138.7 Intersegment revenue Network $ 4.8 $ 1.6 $ 3.4 $ 14.5 $ 1.6 $ 13.1 IT Services and Hardware 2.0 0.7 1.1 5.3 0.7 4.8 Total intersegment revenue $ 6.8 $ 2.3 $ 4.5 $ 19.8 $ 2.3 $ 17.9 Operating (loss) income Network $ (27.2 ) $ (2.3 ) $ 18.9 $ (49.2 ) $ (2.3 ) $ 78.3 IT Services and Hardware (0.7 ) 1.7 9.0 (10.7 ) 1.7 25.2 Corporate (8.8 ) (0.8 ) (63.2 ) (24.2 ) (0.8 ) (75.8 ) Total operating (loss) income $ (36.7 ) $ (1.4 ) $ (35.3 ) $ (84.1 ) $ (1.4 ) $ 27.7 Expenditures for long-lived assets* Network $ 131.7 $ 33.4 $ 92.0 $ 384.3 $ 33.4 $ 199.8 IT Services and Hardware 9.3 3.3 4.0 22.7 3.3 15.9 Corporate 0.1 1,620.7 — 0.1 1,620.7 — Total expenditures for long-lived assets $ 141.1 $ 1,657.4 $ 96.0 $ 407.1 $ 1,657.4 $ 215.7 Depreciation and amortization Network $ 104.7 $ 24.3 $ 44.5 $ 301.5 $ 24.3 $ 166.9 IT Services and Hardware 26.8 5.8 7.6 79.4 5.8 27.9 Corporate — 0.1 — 0.2 0.1 0.1 Total depreciation and amortization $ 131.5 $ 30.2 $ 52.1 $ 381.1 $ 30.2 $ 194.9 *Includes cost of acquisitions (dollars in millions) September 30, 2022 December 31, 2021 Assets Network $ 3,153.7 $ 2,949.2 IT Services and Hardware 800.6 842.0 Corporate and eliminations 359.3 407.6 Total assets $ 4,313.6 $ 4,198.8 |
Description of Business and A_4
Description of Business and Accounting Policies - Narrative (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2021 USD ($) | Sep. 07, 2021 USD ($) | Sep. 30, 2022 USD ($) Customer | Sep. 07, 2021 USD ($) | Sep. 30, 2022 USD ($) Customer | Dec. 31, 2021 Customer | |
Description of Business and Accounting Policies [Line Items] | ||||||
Revenue derived from foreign operations | 6% | 6% | 7% | 6% | 7% | |
Loss on impairment of long-lived assets | $ | $ 0 | $ 0 | $ 2.7 | $ 0 | $ 2.7 | |
Verizon Communications Inc. [Member] | ||||||
Description of Business and Accounting Policies [Line Items] | ||||||
Number of customers, exceeds 10% of total accounts receivable | Customer | 0 | 0 | 1 | |||
Accounts receivable from one customer greater than 10%, percentage | 26% |
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, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 07, 2021 | Dec. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Cash and cash equivalents | $ 7.5 | $ 5.6 | |||
Restricted cash included in Other noncurrent assets | 2.7 | 0.5 | |||
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows | $ 10.2 | $ 6.1 | $ 5.4 | $ 11.2 | $ 17.2 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narratives (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||||||
May 02, 2022 USD ($) | Sep. 07, 2021 USD ($) $ / shares | Aug. 31, 2021 USD ($) mi | Sep. 30, 2021 USD ($) | Sep. 07, 2021 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 07, 2021 USD ($) $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Transaction and integration costs | $ 0 | $ 51,500,000 | $ 3,500,000 | $ 54,800,000 | $ 10,100,000 | ||||||
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 | ||||||||
Preferred stock redemption percentage | 6.75% | ||||||||||
Preferred stock redemption price per Depositary Share | $ / shares | $ 50 | $ 50 | $ 50 | ||||||||
Preferred stock redemption preference per redemption percentage | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | ||||||||||
Cincinnati Bell Inc. [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Increase to goodwill | 4,300,000 | ||||||||||
Increase to deferred income tax liability | 4,300,000 | ||||||||||
Aggregate purchase price | $ 1,620,700,000 | ||||||||||
Current portion of long-term debt | 11,800,000 | 11,800,000 | 11,800,000 | ||||||||
Long-term debt, less current portion | $ 1,378,000,000 | $ 1,378,000,000 | $ 1,378,000,000 | ||||||||
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 | 500,000 | $ 500,000 | ||||||||
Long-term debt, less current portion | 21,900,000 | 21,900,000 | $ 22,300,000 | ||||||||
Paniolo Acquisition [Member] | Minimum [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fiber route miles | mi | 400 | ||||||||||
Agile IWG Holdings, LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gross value of acquisition | $ 65,500,000 | ||||||||||
Transaction and integration costs | $ 1,900,000 | 300,000 | $ 0 | $ 1,900,000 | $ 0 | ||||||
Addition to working capital adjustment | 400,000 | ||||||||||
Increased purchase price | $ 65,500,000 |
Mergers and Acquisitions - Sche
Mergers and Acquisitions - Schedule of Consideration (Details) - Cincinnati Bell Inc. [Member] $ in Millions | Sep. 07, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash consideration for Cincinnati Bell Inc. common 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, 2022 | May 02, 2022 | Dec. 31, 2021 | Sep. 07, 2021 |
Assets acquired | ||||
Goodwill | $ 719 | $ 646.3 | ||
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 | 1,950.8 | |||
Operating lease right-of-use assets | 42.3 | |||
Goodwill | 651 | |||
Intangible assets | 969.6 | |||
Deferred tax assets | 6.9 | |||
Other noncurrent assets | 20.2 | |||
Total assets acquired | 4,073 | |||
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 | 153.6 | |||
Other noncurrent liabilities | 71.4 | |||
Total liabilities assumed | 2,452.3 | |||
Net assets acquired | $ 1,620.7 | |||
Agile IWG Holdings, LLC [Member] | ||||
Assets acquired | ||||
Receivables and other current assets | $ 1.5 | |||
Property, plant and equipment | 10.2 | |||
Operating lease right-of-use assets | 27.8 | |||
Goodwill | 35.3 | |||
Intangible assets | 19.4 | |||
Total assets acquired | 94.2 | |||
Liabilities assumed | ||||
Accrued expenses and other current liabilities | 2.5 | |||
Operating lease liabilities | 25.7 | |||
Other noncurrent liabilities | 0.5 | |||
Total liabilities assumed | 28.7 | |||
Net assets acquired | $ 65.5 |
Mergers and Acquisitions - Fair
Mergers and Acquisitions - Fair Values of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions | 9 Months Ended | |||
May 02, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Fair Value | $ 963 | $ 976.8 | $ 963 | |
Fair Value | 6.6 | |||
Fair Value | 983.7 | 969.7 | ||
Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 861.4 | 850 | ||
Useful Lives | 15 years | |||
Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 109.3 | 108 | ||
Trade Names [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful Lives | 3 years | |||
Trade Names [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful Lives | 10 years | |||
Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 6.1 | $ 5 | ||
Useful Lives | 7 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 | |||
Agile IWG Holdings, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 19.4 | |||
Fair Value | 19.4 | |||
Agile IWG Holdings, LLC [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 16 | |||
Useful Lives | 15 years | |||
Agile IWG Holdings, LLC [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 2.3 | |||
Useful Lives | 10 years | |||
Agile IWG Holdings, LLC [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1.1 | |||
Useful Lives | 7 years |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Payment terms for customers, lower range | 30 days | |
Payment term for customers, upper range | 120 days | |
Total | $ 183.5 | |
Unearned revenue and customer deposits | 66.1 | $ 83.2 |
Other Current Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Unearned revenue and customer deposits | 2.8 | 2.2 |
Other Noncurrent Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities, recognized, noncurrent | $ 55.3 | $ 57.2 |
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, 2022 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 183.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 3.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
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 | $ 15.2 |
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 | $ 16.9 |
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 | $ 16.9 |
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 | $ 17 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 113.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Contract Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | $ 11.8 | $ 8.6 | $ 5 |
Capitalized contract cost, Additions | 4.8 | 4.2 | 4.3 |
Capitalized contract cost, Amortization | (1.3) | (1) | (0.7) |
Capitalized contract cost, net, ending Balance | 15.3 | 11.8 | 8.6 |
Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 3.5 | 2.2 | 1.4 |
Capitalized contract cost, Additions | 1.3 | 1.5 | 1 |
Capitalized contract cost, Amortization | (0.3) | (0.2) | (0.2) |
Capitalized contract cost, net, ending Balance | 4.5 | 3.5 | 2.2 |
Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 8.3 | 6.4 | 3.6 |
Capitalized contract cost, Additions | 3.5 | 2.7 | 3.3 |
Capitalized contract cost, Amortization | (1) | (0.8) | (0.5) |
Capitalized contract cost, net, ending Balance | 10.8 | 8.3 | 6.4 |
Operating Segments | Network [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 9.1 | 6.6 | 4 |
Capitalized contract cost, Additions | 3.8 | 3 | 3.1 |
Capitalized contract cost, Amortization | (0.9) | (0.5) | (0.5) |
Capitalized contract cost, net, ending Balance | 12 | 9.1 | 6.6 |
Operating Segments | Network [Member] | Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 1.6 | 1.1 | 0.7 |
Capitalized contract cost, Additions | 0.6 | 0.6 | 0.5 |
Capitalized contract cost, Amortization | (0.1) | (0.1) | (0.1) |
Capitalized contract cost, net, ending Balance | 2.1 | 1.6 | 1.1 |
Operating Segments | Network [Member] | Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 7.5 | 5.5 | 3.3 |
Capitalized contract cost, Additions | 3.2 | 2.4 | 2.6 |
Capitalized contract cost, Amortization | (0.8) | (0.4) | (0.4) |
Capitalized contract cost, net, ending Balance | 9.9 | 7.5 | 5.5 |
Operating Segments | IT Services and Hardware [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 2.7 | 2 | 1 |
Capitalized contract cost, Additions | 1 | 1.2 | 1.2 |
Capitalized contract cost, Amortization | (0.4) | (0.5) | (0.2) |
Capitalized contract cost, net, ending Balance | 3.3 | 2.7 | 2 |
Operating Segments | IT Services and Hardware [Member] | Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 1.9 | 1.1 | 0.7 |
Capitalized contract cost, Additions | 0.7 | 0.9 | 0.5 |
Capitalized contract cost, Amortization | (0.2) | (0.1) | (0.1) |
Capitalized contract cost, net, ending Balance | 2.4 | 1.9 | 1.1 |
Operating Segments | IT Services and Hardware [Member] | Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 0.8 | 0.9 | 0.3 |
Capitalized contract cost, Additions | 0.3 | 0.3 | 0.7 |
Capitalized contract cost, Amortization | (0.2) | (0.4) | (0.1) |
Capitalized contract cost, net, ending Balance | $ 0.9 | $ 0.8 | $ 0.9 |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 111.4 | $ 314.6 | $ 462.1 | $ 1,138.7 | $ 1,337.4 |
Operating Segments | Network [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 61.7 | 180.4 | 251.1 | 664.2 | 741.6 |
Operating Segments | Network [Member] | Data [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 31.6 | 91.7 | 132.8 | 334.6 | 388.4 |
Operating Segments | Network [Member] | Video [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 12.2 | 35.3 | 47.8 | 131.8 | 144.8 |
Operating Segments | Network [Member] | Voice [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 15.8 | 46.8 | 58.2 | 177.3 | 175.2 |
Operating Segments | Network [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 2.1 | 6.6 | 12.3 | 20.5 | 33.2 |
Operating Segments | IT Services and Hardware [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 52 | 138.7 | 217.8 | 492.4 | 615.6 |
Operating Segments | IT Services and Hardware [Member] | Consulting | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 21.6 | 56.5 | 86.9 | 193.6 | 253.8 |
Operating Segments | IT Services and Hardware [Member] | Cloud | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 6.6 | 18.7 | 25.1 | 66.4 | 74.8 |
Operating Segments | IT Services and Hardware [Member] | Communications | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 14.2 | 40.1 | 56.1 | 149.1 | 165.3 |
Operating Segments | IT Services and Hardware [Member] | Infrastructure Solutions | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 9.6 | 23.4 | 49.7 | 83.3 | 121.7 |
Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | (2.3) | (4.5) | (6.8) | (17.9) | (19.8) |
Intersegment Eliminations [Member] | Network [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 1.6 | 3.4 | 4.8 | 13.1 | 14.5 |
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 0.7 | $ 1.1 | $ 2 | $ 4.8 | $ 5.3 |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 111.4 | $ 314.6 | $ 462.1 | $ 1,138.7 | $ 1,337.4 |
Transferred at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 13.2 | 29.2 | 51.7 | 105.9 | 141.8 |
Transferred over Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 98.2 | 285.4 | 410.4 | 1,032.8 | 1,195.6 |
Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | (2.3) | (4.5) | (6.8) | (17.9) | (19.8) |
Intersegment Eliminations [Member] | Transferred at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Transferred over Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | 0 |
Network [Member] | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 61.7 | 180.4 | 251.1 | 664.2 | 741.6 |
Network [Member] | Operating Segments | Transferred at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 2.1 | 4.1 | 6.9 | 15.8 | 20.4 |
Network [Member] | Operating Segments | Transferred over Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 58 | 172.9 | 239.4 | 635.3 | 706.7 |
Network [Member] | Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 1.6 | 3.4 | 4.8 | 13.1 | 14.5 |
IT Services and Hardware [Member] | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 52 | 138.7 | 217.8 | 492.4 | 615.6 |
IT Services and Hardware [Member] | Operating Segments | Transferred at Point in Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 11.1 | 25.1 | 44.8 | 90.1 | 121.4 |
IT Services and Hardware [Member] | Operating Segments | Transferred over Time [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | 40.2 | 112.5 | 171 | 397.5 | 488.9 |
IT Services and Hardware [Member] | Intersegment Eliminations [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenues | $ 0.7 | $ 1.1 | $ 2 | $ 4.8 | $ 5.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 646.3 |
Adjustments to prior year Merger | 4.7 |
Acquisition of Agile | 35.3 |
Adjustments to postretirement and other benefit obligations (Note 8) | 35 |
Currency translations | (2.3) |
Goodwill, ending balance | 719 |
IT Services and Hardware [Member] | Operating Segments | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 157.4 |
Adjustments to prior year Merger | 2.5 |
Acquisition of Agile | 0 |
Adjustments to postretirement and other benefit obligations (Note 8) | 19.6 |
Currency translations | (2.3) |
Goodwill, ending balance | 177.2 |
Network [Member] | Operating Segments | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 488.9 |
Adjustments to prior year Merger | 2.2 |
Acquisition of Agile | 35.3 |
Adjustments to postretirement and other benefit obligations (Note 8) | 15.4 |
Currency translations | 0 |
Goodwill, ending balance | $ 541.8 |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | May 02, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||||||
Goodwill acquired | $ 35,300,000 | ||||||
Impairment losses recognized in goodwill | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||
Finite-lived intangible assets | 963,000,000 | 976,800,000 | 963,000,000 | 976,800,000 | $ 963,000,000 | ||
Indefinite-lived intangible assets | 6,600,000 | 6,600,000 | |||||
Amortization of finite-lived intangible assets | 8,400,000 | 2,700,000 | 31,200,000 | 9,900,000 | 91,200,000 | ||
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||
Agile IWG Holdings, LLC [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill acquired | $ 35,300,000 | ||||||
Finite-lived intangible assets | $ 19,400,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 07, 2021 |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | $ 976.8 | $ 963 | $ 963 |
Accumulated amortization | (131.9) | (41.4) | |
Intangible assets subject to amortization, net amount | 844.9 | 921.6 | |
Intangible assets not subject to amortization | $ 6.6 | ||
Total intangible assets, gross carrying amount | 983.7 | 969.7 | |
Intangible assets, net amount | 851.8 | 928.3 | |
FCC Licenses and Spectrum Usage Rights [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 6.9 | 6.7 | |
Customer Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 861.4 | 850 | |
Accumulated amortization | (114.2) | (36.2) | |
Intangible assets subject to amortization, net amount | 747.2 | 813.8 | |
Trade Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 109.3 | 108 | |
Accumulated amortization | (16.9) | (5) | |
Intangible assets subject to amortization, net amount | 92.4 | 103 | |
Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 6.1 | 5 | |
Accumulated amortization | (0.8) | (0.2) | |
Intangible assets subject to amortization, net amount | $ 5.3 | $ 4.8 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Useful Lives for Finite-lived Intangible Assets (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Customer Relationships [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 |
Trade Names [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Technology [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Three months ended December 31, 2022 | $ 30.6 | |
2023 | 115.1 | |
2024 | 105.8 | |
2025 | 93.6 | |
2026 | 86.2 | |
Thereafter | 413.6 | |
Intangible assets subject to amortization, net amount | $ 844.9 | $ 921.6 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 44.7 | $ 19.7 | |
Other Financing Arrangements, Current Portion | 0.3 | 0.5 | |
Finance lease liabilities, current | 9.3 | 7.2 | |
Receivables Facility | 178.4 | 153.6 | |
Long-term debt, less current portion | 1,588.2 | 1,428.9 | |
Other Financing Arrangements, Non-Current Portion | 0 | 0.4 | |
Finance lease liabilities, Noncurrent | 42 | 42.3 | |
Long-term debt gross | 1,632.8 | 1,478.6 | |
Net unamortized discount | (4.5) | (4.9) | |
Unamortized note issuance costs | (40.1) | (44.8) | |
Total debt | 1,632.9 | 1,448.6 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Agreement | 164 | 0 | |
Term B-1 Loans [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 5 | 5 | |
Long-term debt, less current portion | 491.3 | 495 | |
Term B-2 Loans [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 6.5 | 6.5 | |
Long-term debt, less current portion | 638.6 | 643.5 | |
Senior Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, Current | [1] | 23.1 | 0 |
Senior Notes, Noncurrent | [1] | 0 | 24 |
Paniolo Fiber Assets [Member] | |||
Debt Instrument [Line Items] | |||
Financing Arrangement, Current Portion | 0.5 | 0.5 | |
Financing Arrangement, Noncurrent Portion | 21.9 | 22.3 | |
Various Cincinnati Bell Telephone Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, less current portion | [1] | $ 96.6 | $ 97.5 |
[1]As of September 30, 2022, the net carrying amounts of the 7 ¼ 7 ¼ |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.25% | 7.25% |
Senior Notes due 2023 [Member] | Merger Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized fair value adjustments related to merger | $ 0.8 | $ 1.7 |
Various Cincinnati Bell Telephone Notes [Member] | Merger Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized fair value adjustments related to merger | $ 8.7 | $ 9.6 |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Credit Agreement - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Term B-1 Loans [Member] | |
Line Of Credit Facility [Line Items] | |
Debt instrument updated maturity date | 2028-11 |
Term B-2 Loans [Member] | |
Line Of Credit Facility [Line Items] | |
Debt instrument expiration date | 2028-11 |
Revolving Credit Facility [Member] | |
Line Of Credit Facility [Line Items] | |
Borrowings under the revolving credit facility | $ 164 |
Line of credit facility, remaining borrowing capacity | $ 236 |
Debt instrument expiration date | 2026-09 |
Debt and Other Financing Arra_6
Debt and Other Financing Arrangements - Accounts Receivable Securitization Facility - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Receivables facility amount outstanding | $ 178,400,000 | $ 153,600,000 |
Letters of Credit Outstanding, Amount | 21,000,000 | |
Receivables Facility Remaining Borrowing Capacity | 14,600,000 | |
Receivables Facility Maximum Borrowing Availability | $ 214,000,000 | |
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 | |
Accounts Receivable Sold | $ 46,300,000 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets, net of amortization | $ 75.1 | $ 44.3 |
Finance lease assets, net of amortization | $ 13.9 | $ 10.7 |
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 | $ 12.9 | $ 9.6 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 67.8 | $ 40.2 |
Total operating lease liabilities | 80.7 | 49.8 |
Current finance lease liabilities | 9.3 | 7.2 |
Noncurrent finance lease liabilities | 42 | 42.3 |
Total finance lease liabilities | $ 51.3 | $ 49.5 |
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, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance leases | $ 0.3 | $ 2.9 | $ 2.5 |
Operating cash flows from operating leases | 0.8 | 7.2 | 9 |
Financing cash flows from finance leases | 1.2 | 9.9 | 6.4 |
Right-of-use assets obtained in exchange for lease obligations: | |||
New operating leases | 0 | 11.5 | 11.6 |
New finance leases | $ 0 | $ 3.8 | $ 8.1 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Narrative (Details) - Cash Flow Hedging [Member] - USD ($) | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2019 | Jun. 30, 2018 | |
2.9185% Interest Rate Contract [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notional amount | $ 175,000,000 | ||
Average fixed interest rate | 2.9185% | ||
Interest rate swap expiration date | 2026-05 | ||
2.8520% Interest Rate Contract [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notional amount | $ 115,000,000 | ||
Average fixed interest rate | 2.852% | ||
Interest rate swap expiration date | 2026-05 | ||
2.8605% Interest Rate Contract [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notional amount | $ 85,000,000 | ||
Average fixed interest rate | 2.8605% | ||
Interest rate swap expiration date | 2026-05 | ||
3.0% Interest Rate Cap One [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notional amount | $ 200,000,000 | ||
Interest rate swap expiration date | 2026-05 | ||
Interest rate | 3% | ||
Deferred premiums | $ 6,700,000 | ||
3.0% Interest Rate Cap Two [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notional amount | $ 175,000,000 | ||
Interest rate swap expiration date | 2026-05 | ||
Interest rate | 3% | ||
Deferred premiums | $ 5,300,000 | ||
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 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Fair Value of Interest rate Swaps and Interest Rate Caps are Recorded in Condensed Consolidated Balance Sheets (Details) - Cash Flow Hedging [Member] - Estimate of Fair Value, Fair Value Disclosure [Member] $ in Millions | Sep. 30, 2022 USD ($) |
Interest Rate Swap [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | $ 5 |
Interest Rate Swap Assets, Noncurrent | 8.3 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 0 |
Interest Rate Swap Assets, Noncurrent | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 5 |
Interest Rate Swap Assets, Noncurrent | 8.3 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 0 |
Interest Rate Swap Assets, Noncurrent | 0 |
Interest Rate Cap [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 1.5 |
Interest Rate Swap Assets, Noncurrent | 0.2 |
Interest Rate Cap Liability, Noncurrent | 0.2 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 0 |
Interest Rate Swap Assets, Noncurrent | 0 |
Interest Rate Cap Liability, Noncurrent | 0 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 1.5 |
Interest Rate Swap Assets, Noncurrent | 0.2 |
Interest Rate Cap Liability, Noncurrent | 0.2 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Interest Rate Swap Assets, Current | 0 |
Interest Rate Swap Assets, Noncurrent | 0 |
Interest Rate Cap Liability, Noncurrent | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Schedule of Summarizes the Location of Gains in the Condensed Consolidated Statements of Operations in Addition to the Derivative Contract Type (Details) - Cash Flow Hedging [Member] - Other (Income) Expense, Net [Member] - 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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Interest Rate | $ 0 | $ (20.1) | $ (20.1) | ||
Interest Rate Swap [Member] | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Interest Rate | $ (13.8) | $ (11.9) | |||
Interest Rate Cap [Member] | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Interest Rate | $ (10.9) | $ (0.6) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Amount of Gains Recognized in Accumulated Other Comprehensive Income ("AOCI") Net of Reclassification into Earnings (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 8 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 07, 2021 | |
Cash Flow Hedging [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest Rate Swap | $ 0 | $ 0 | $ 5.3 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 8 Months Ended |
Sep. 30, 2021 | Sep. 07, 2021 | Sep. 07, 2021 | |
Other (Income) Expense, Net [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest Rate | $ 0 | $ (20.1) | $ (20.1) |
Interest Expense | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Interest Rate | $ 0 | $ (0.8) | $ (5.4) |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements - Schedule of Carrying and Fair Values by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ 1,621.4 | $ 1,443 |
Other financing arrangements | 51.3 | 53.1 | |
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] | 1,559.9 | 1,443 |
Other financing arrangements | $ 44 | $ 51.7 | |
[1]Excludes finance leases, other financing arrangements and note issuance costs. |
Pension and Postretirement Pl_3
Pension and Postretirement Plans - Narrative (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2021 USD ($) | Sep. 07, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 07, 2021 USD ($) | Sep. 30, 2022 USD ($) Plan | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Adjustments to goodwill | $ 35,000,000 | ||||
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] | Qualified Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Contributions to pension plans | $ 900,000 | $ 0 | |||
Expected future employer contributions, next fiscal year | $ 0 | $ 0 | 0 | ||
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 | 1,600,000 | ||
Expected future employer contributions, next fiscal year | 3,000,000 | 3,000,000 | |||
Pension Plans, Defined Benefit [Member] | Hawaii Plans [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Decrease in benefit obligations | $ 7,400,000 | 6,800,000 | 7,400,000 | 6,800,000 | |
Settlements | $ 800,000 | 1,400,000 | 7,400,000 | 6,800,000 | |
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Expected future employer contributions, next fiscal year | 8,000,000 | 8,000,000 | |||
Contributions to postretirement plans | $ 500,000 | $ 4,300,000 | $ 5,300,000 | ||
Other Postretirement Benefits Plan [Member] | Hawaii Plans [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Adjustments to postretirement and other benefits liability | 45,900,000 | ||||
Adjustments to goodwill | 35,000,000 | ||||
Adjustments to deferred income tax liabilities | $ 10,900,000 |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | |
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 | 4.2 | 10.2 | 11.9 |
Expected return on plan assets | (2.1) | (5.2) | (6.6) | (19.9) | (20.9) |
Amortization of: | |||||
Prior service benefit | 0 | 0 | 0 | 0 | 0 |
Actuarial loss | 0 | 4.5 | 0 | 16 | 0 |
Pension / postretirement (benefit) cost | (1.2) | 2 | (2.4) | 6.3 | (9) |
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 0 | 0.1 | 0.4 | 0.3 | 0.6 |
Other components of pension and postretirement benefit plans expense: | |||||
Interest cost on projected benefit obligation | 0.1 | 0.5 | 1.7 | 1.8 | 3.1 |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 |
Amortization of: | |||||
Prior service benefit | 0 | (0.4) | 0 | (1.7) | 0 |
Actuarial loss | 0 | 0 | 0 | 0 | 0 |
Pension / postretirement (benefit) cost | $ 0.1 | $ 0.2 | $ 2.1 | $ 0.4 | $ 3.7 |
Shareowners' Equity (Deficit) -
Shareowners' Equity (Deficit) - Narrative (Details) - USD ($) | Sep. 07, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Oct. 18, 2021 |
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 96,000,000 | |||
Common stock, par value | $ 0.01 | |||
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 preference per depositary share | $ 50 | |||
Preferred stock redemption preference per redemption percentage | $ 1,000 | |||
Preferred Stock, Dividend Rate, Percentage | 6.75% | |||
Common stock, shares authorized | 100 | |||
Common stock, par value | $ 0.01 | |||
Common Stock Shares Issued | 100 | 100 |
Shareowners' Equity (Deficit)_2
Shareowners' Equity (Deficit) - Schedule of Changes in Accumulated Other Comprehensive Income (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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | ||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | $ (122.2) | $ 0 | $ (139.2) | $ (1.4) | $ (159.7) | $ 1.2 | |
Remeasurement of benefit obligations | 0 | 0 | (0.8) | 6 | (2.1) | ||
Reclassifications, net | 19 | 30.4 | |||||
Unrealized loss on cash flow hedges arising during the period, net | 0 | (0.6) | 0 | (0.1) | 0 | ||
Foreign currency (loss) gain | (1.2) | (1.2) | (1.4) | (5.9) | 1.2 | (7.2) | |
Ending balance | (1.2) | (1.2) | (122.2) | (8.1) | (122.2) | (8.1) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | (122.1) | 0 | (124.9) | 1.3 | (138.8) | 2.6 | |
Remeasurement of benefit obligations | (0.8) | 6 | (2.1) | ||||
Reclassifications, net | [1] | 2.8 | 10.7 | ||||
Unrealized loss on cash flow hedges arising during the period, net | 0 | 0 | |||||
Foreign currency (loss) gain | 0 | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | (122.1) | 0.5 | (122.1) | 0.5 | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | (0.1) | 0 | (15.7) | 0 | (19.7) | 0 | |
Remeasurement of benefit obligations | 0 | 0 | 0 | ||||
Reclassifications, net | [2] | 16.2 | 19.7 | ||||
Unrealized loss on cash flow hedges arising during the period, net | [3] | (0.6) | (0.1) | ||||
Foreign currency (loss) gain | 0 | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | (0.1) | 0 | (0.1) | 0 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||||
Beginning balance | 0 | 0 | 1.4 | (2.7) | (1.2) | (1.4) | |
Remeasurement of benefit obligations | 0 | 0 | 0 | ||||
Reclassifications, net | 0 | 0 | |||||
Unrealized loss on cash flow hedges arising during the period, net | 0 | 0 | |||||
Foreign currency (loss) gain | (1.2) | (1.4) | (5.9) | 1.2 | (7.2) | ||
Ending balance | $ (1.2) | $ (1.2) | $ 0 | $ (8.6) | $ 0 | $ (8.6) | |
[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. The other components of net periodic pension and postretirement benefit plans expense are recorded in " Other components of pension and postretirement benefit plans (benefit) expense |
Business Segment Information -
Business Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 Segment | |
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, 2022 | Sep. 07, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||||||
Revenue | $ 111.4 | $ 314.6 | $ 462.1 | $ 1,138.7 | $ 1,337.4 | ||
Operating (loss) income | (1.4) | (35.3) | (36.7) | 27.7 | (84.1) | ||
Expenditures for long-lived assets | [1] | 1,657.4 | 96 | 141.1 | 215.7 | 407.1 | |
Depreciation and amortization | 30.2 | 52.1 | 131.5 | 194.9 | 381.1 | ||
Total assets | 4,313.6 | 4,313.6 | $ 4,198.8 | ||||
Operating Segments | Network [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 61.7 | 180.4 | 251.1 | 664.2 | 741.6 | ||
Operating (loss) income | (2.3) | 18.9 | (27.2) | 78.3 | (49.2) | ||
Expenditures for long-lived assets | [1] | 33.4 | 92 | 131.7 | 199.8 | 384.3 | |
Depreciation and amortization | 24.3 | 44.5 | 104.7 | 166.9 | 301.5 | ||
Total assets | 3,153.7 | 3,153.7 | 2,949.2 | ||||
Operating Segments | IT Services and Hardware [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 52 | 138.7 | 217.8 | 492.4 | 615.6 | ||
Operating (loss) income | 1.7 | 9 | (0.7) | 25.2 | (10.7) | ||
Expenditures for long-lived assets | [1] | 3.3 | 4 | 9.3 | 15.9 | 22.7 | |
Depreciation and amortization | 5.8 | 7.6 | 26.8 | 27.9 | 79.4 | ||
Total assets | 800.6 | 800.6 | 842 | ||||
Intersegment Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | (2.3) | (4.5) | (6.8) | (17.9) | (19.8) | ||
Intersegment Eliminations [Member] | Sales [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 2.3 | 4.5 | 6.8 | 17.9 | 19.8 | ||
Intersegment Eliminations [Member] | Network [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 1.6 | 3.4 | 4.8 | 13.1 | 14.5 | ||
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 0.7 | 1.1 | 2 | 4.8 | 5.3 | ||
Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating (loss) income | (0.8) | (63.2) | (8.8) | (75.8) | (24.2) | ||
Expenditures for long-lived assets | [1] | 1,620.7 | 0 | 0.1 | 0 | 0.1 | |
Depreciation and amortization | $ 0.1 | $ 0 | 0 | $ 0.1 | 0.2 | ||
Corporate and Elimination [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Total assets | $ 359.3 | $ 359.3 | $ 407.6 | ||||
[1]Includes cost of acquisitions |