Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Prior to November 20, 2012, CyrusOne Inc., CyrusOne GP, CyrusOne LP and its subsidiaries were operated by CBI. The consolidated and combined financial statements have been prepared from the records maintained by CBI and may not necessarily be indicative of the conditions that would have existed or the results of operations that would have occurred if the business had been operated as an unaffiliated company. The consolidated and combined financial statements reflect the following transactions with CBI and its affiliated entities, including Cincinnati Bell Telephone (CBT) and Cincinnati Bell Technology Solutions (CBTS).

Revenues—The Company records revenues from CBI under contractual service arrangements. These services include leasing of data center space, power and cooling in certain of our data center facilities network interface services and office space.

Operating Expenses—The Company records expenses from CBI incurred in relation to network support, services calls, monitoring and management, storage and backup, IT systems support, and connectivity services.

The following related party transactions are based on agreements and arrangements that were in place during the respective periods. Revenues and expenses for the periods presented were as follows:

IN MILLIONS	Successor						Predecessor
	December 31, 2015		December 31, 2014		January 24, 2013 to December 31, 2013		January 1, 2013 to January 23, 2013
Revenue:
Data center colocation agreement provided to CBT and CBTS	$	7.8	$	6.4	$	5.6	$	0.3
229 West 7th Street lease provided to CBT	1.9		2.0		1.7		—
Goldcoast Drive/Parkway (Mason) lease	0.3		0.4		0.3		—
Transition services provided to CBTS (network interfaces)	0.3		0.4		0.6		0.1
Data center leases provided to CBTS	12.0		13.6		13.1		—
Total revenue	$	22.3	$	22.8	$	21.3	$	0.4
Operating costs and expenses:
Transition services agreement by CBTS	$	0.7	$	0.8	$	1.3	$	—
Charges for services provided by CBT (connectivity)	1.0		1.0		1.0		0.1
209 West 7th Street rent provided by CBT	0.2		0.2		0.1		—
Management fees with CBI	—		—		0.1		—
Allocated employee benefit plans by CBI	—		—		—		0.2
Allocated centralized insurance costs by CBI	—		—		—		0.1
Total operating costs and expenses	$	1.9	$	2.0	$	2.5	$	0.4

As of December 31, 2014, the amounts receivable and payable to CBI were as follows:

IN MILLIONS
As of December 31,	2014
Accounts receivable from CBI	$	0.8
Accounts payable	$	1.7
Dividends payable	5.6
Total payable to CBI	$	7.3

The dividends payable as of December 31, 2015, was approximately $2.0 million, which relates to the 6.3 million operating partnership units in CyrusOne LP held by a subsidiary of CyrusOne Inc. as of the record date of December 24, 2015. As of December 31, 2015, CBI was no longer an affiliate of CyrusOne Inc. as described in Note 2, Formation and Recent Developments.

Other Related Party Transactions

Prior to joining CyrusOne in March 2013, our former general counsel Thomas Bosse was principal in the Law Offices of Thomas W. Bosse, PLLC, (Bosselaw).  In 2013, amounts paid to Bosselaw for services rendered prior to his employment were $1.6 million, which included a bonus payment under CyrusOne’s Data Center Plan as a result of the successful completion of the IPO. 

In the ordinary course of its business, CyrusOne periodically pays brokerage commissions to real estate brokerage firms in connection with property transactions and tenant leases.  In 2015, 2014 and 2013, CyrusOne paid $1.1 million, $1.0 million and $1.5 million, respectively, to one such firm, Jones Lang LaSalle.  One of our former directors is a principal with Jones Lang LaSalle.

The spouse of one of our former directors is a partner with Skadden, Arps, Slate, Meagher & Flom LLP (Skadden). For the years ended December 31, 2014 and 2013, CyrusOne paid Skadden $1.1 million and $0.2 million, respectively, for services rendered. In 2015, the amount CyrusOne paid to Skadden was immaterial.

Our director, Lynn A. Wentworth, is a member of the board of directors of CBI, and serves as the chair of its audit and finance committee.