XML 67 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Supplemental Guarantor Information HY
 12 Months Ended
Dec. 31, 2011
Supplemental Guarantor Information Abstract  
Supplemental Guarantor Information High Yield [Text Block]
18.
8 3/8% Senior Notes due 2020, 8 3/4% Senior Subordinated Notes due 2018, 8 1/4% Senior Notes due 2017, and 7% Senior Notes due 2015
As of December 31, 2011, the Parent Company’s 8 3/8% Senior Notes due 2020, 8 3/4% Senior Subordinated Notes due 2018, 8 1/4% Senior Notes due 2017, and 7% Senior Notes due 2015 are guaranteed by the following subsidiaries: Cincinnati Bell Entertainment Inc., Cincinnati Bell Any Distance Inc., Cincinnati Bell Telecommunications Services LLC, Cincinnati Bell Wireless LLC, CBTS Software LLC, Cincinnati Bell Shared Services LLC, Cincinnati Bell Technology Solutions Inc., Cincinnati Bell Any Distance of Virginia LLC, eVolve Business Solutions LLC, GramTel Inc., Cyrus One Foreign Holdings LLC, and CyrusOne Inc. As of December 31, 2011, management completed a restructuring of certain of its legal entities. Cincinnati Bell Complete Protection Inc. was merged into Cincinnati Bell Inc.
The Parent Company owns directly or indirectly 100% of each guarantor and each guarantee is full and unconditional, and joint and several. In certain customary circumstances, a subsidiary may be released from its guarantee obligation. These circumstances are defined as follows:
•
upon the sale of all of the capital stock of a subsidiary,
•
if the Company designates the subsidiary as an unrestricted subsidiary under the terms of the indentures, or
•
if the subsidiary is released as a guarantor from the Company's credit facility.
The Parent Company’s subsidiaries generate substantially all of its income and cash flow and generally distribute or advance the funds necessary to meet the Parent Company’s debt service obligations. The following information sets forth the Condensed Consolidating Balance Sheets of the Company as of December 31, 2011 and 2010 and the Condensed Consolidating Statements of Operations and Cash Flows for the three years ended December 31, 2011, 2010, and 2009 of (1) CBI, the parent company, as the issuer, (2) the guarantor subsidiaries on a combined basis, and (3) the non-guarantor subsidiaries on a combined basis. The condensed consolidating financial statements shown below have been retroactively restated to reflect the merger of Cincinnati Bell Complete Protection Inc. into Cincinnati Bell Inc. (the Parent and issuer) for all periods.

Condensed Consolidating Statements of Operations
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2011
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
3.4

 
$
911.8

 
$
604.6

 
$
(57.4
)
 
$
1,462.4

Operating costs and expenses
23.6

 
845.9

 
390.8

 
(57.4
)
 
1,202.9

Operating income (loss)
(20.2
)
 
65.9

 
213.8

 
—

 
259.5

Interest expense, net
161.8

 
41.0

 
12.2

 
—

 
215.0

Other expense (income), net
(0.9
)
 
11.1

 
(9.3
)
 
—

 
0.9

Income (loss) before equity in earnings of subsidiaries and income taxes
(181.1
)
 
13.8

 
210.9

 
—

 
43.6

Income tax expense (benefit)
(56.4
)
 
4.9

 
76.5

 
—

 
25.0

Equity in earnings of subsidiaries, net of tax
143.3

 
—

 
—

 
(143.3
)
 
—

Net income
18.6

 
8.9

 
134.4

 
(143.3
)
 
18.6

Preferred stock dividends
10.4

 
—

 
—

 
—

 
10.4

Net income applicable to common shareowners
$
8.2

 
$
8.9

 
$
134.4

 
$
(143.3
)
 
$
8.2

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2010
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
5.5

 
$
818.4

 
$
610.9

 
$
(57.8
)
 
$
1,377.0

Operating costs and expenses
34.5

 
719.3

 
381.7

 
(57.8
)
 
1,077.7

Operating income (loss)
(29.0
)
 
99.1

 
229.2

 
—

 
299.3

Interest expense, net
137.9

 
31.6

 
15.7

 
—

 
185.2

Other expense (income), net
45.2

 
8.7

 
(7.0
)
 
—

 
46.9

Income (loss) before equity in earnings of subsidiaries and income taxes
(212.1
)
 
58.8

 
220.5

 
—

 
67.2

Income tax expense (benefit)
(61.3
)
 
15.6

 
84.6

 
—

 
38.9

Equity in earnings of subsidiaries, net of tax
179.1

 
—

 
—

 
(179.1
)
 
—

Net income
28.3

 
43.2

 
135.9

 
(179.1
)
 
28.3

Preferred stock dividends
10.4

 
—

 
—

 
—

 
10.4

Net income applicable to common shareowners
$
17.9

 
$
43.2

 
$
135.9

 
$
(179.1
)
 
$
17.9


 
Year Ended December 31, 2009
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
4.9

 
$
750.9

 
$
637.3

 
$
(57.1
)
 
$
1,336.0

Operating costs and expenses
24.6

 
689.1

 
383.9

 
(57.1
)
 
1,040.5

Operating income (loss)
(19.7
)
 
61.8

 
253.4

 
—

 
295.5

Interest expense, net
100.1

 
10.2

 
20.4

 
—

 
130.7

Other expense (income), net
14.6

 
3.2

 
(7.3
)
 
—

 
10.5

Income (loss) before equity in earnings of subsidiaries and income taxes
(134.4
)
 
48.4

 
240.3

 
—

 
154.3

Income tax expense (benefit)
(40.9
)
 
18.4

 
87.2

 
—

 
64.7

Equity in earnings of subsidiaries, net of tax
183.1

 
—

 
—

 
(183.1
)
 
—

Net income
89.6

 
30.0

 
153.1

 
(183.1
)
 
89.6

Preferred stock dividends
10.4

 
—

 
—

 
—

 
10.4

Net income applicable to common shareowners
$
79.2

 
$
30.0

 
$
153.1

 
$
(183.1
)
 
$
79.2


Condensed Consolidating Balance Sheets
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash and cash equivalents
$
69.6

 
$
1.1

 
$
3.0

 
$
—

 
$
73.7

Receivables, net
2.0

 
1.9

 
175.5

 
—

 
179.4

Other current assets
5.8

 
27.6

 
35.9

 
(1.4
)
 
67.9

Total current assets
77.4

 
30.6

 
214.4

 
(1.4
)
 
321.0

Property, plant and equipment, net
0.1

 
731.4

 
669.0

 
—

 
1,400.5

Goodwill and intangibles, net
—

 
505.1

 
2.4

 
—

 
507.5

Investments in and advances to subsidiaries
1,731.4

 
1.2

 
202.5

 
(1,935.1
)
 
—

Other noncurrent assets
387.9

 
235.2

 
6.4

 
(143.8
)
 
485.7

Total assets
$
2,196.8

 
$
1,503.5

 
$
1,094.7

 
$
(2,080.3
)
 
$
2,714.7

 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
—

 
9.9

 
3.1

 
—

 
13.0

Accounts payable
1.0

 
109.6

 
22.8

 
—

 
133.4

Other current liabilities
93.2

 
63.7

 
53.1

 
—

 
210.0

Total current liabilities
94.2

 
183.2

 
79.0

 
—

 
356.4

Long-term debt, less current portion
2,182.0

 
113.7

 
224.9

 
—

 
2,520.6

Other noncurrent liabilities
404.3

 
155.1

 
138.7

 
(145.2
)
 
552.9

Intercompany payables
231.5

 
457.4

 
123.0

 
(811.9
)
 
—

Total liabilities
2,912.0

 
909.4

 
565.6

 
(957.1
)
 
3,429.9

Shareowners’ equity (deficit)
(715.2
)
 
594.1

 
529.1

 
(1,123.2
)
 
(715.2
)
Total liabilities and shareowners’ equity (deficit)
$
2,196.8

 
$
1,503.5

 
$
1,094.7

 
$
(2,080.3
)
 
$
2,714.7

 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2010
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash and cash equivalents
$
69.8

 
$
5.7

 
$
1.8

 
$
—

 
$
77.3

Receivables, net
2.4

 
11.2

 
170.6

 
—

 
184.2

Other current assets
6.4

 
34.4

 
27.1

 
(6.5
)
 
61.4

Total current assets
78.6

 
51.3

 
199.5

 
(6.5
)
 
322.9

Property, plant and equipment, net
0.6

 
640.1

 
623.7

 
—

 
1,264.4

Goodwill and intangibles, net
0.7

 
574.4

 
2.6

 
—

 
577.7

Investments in and advances to subsidiaries
1,647.5

 
—

 
134.7

 
(1,782.2
)
 
—

Other noncurrent assets
363.3

 
219.5

 
8.2

 
(102.4
)
 
488.6

Total assets
$
2,090.7

 
$
1,485.3

 
$
968.7

 
$
(1,891.1
)
 
$
2,653.6

 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
—

 
$
14.3

 
$
2.2

 
$
—

 
$
16.5

Accounts payable
2.2

 
73.2

 
34.8

 
—

 
110.2

Other current liabilities
89.1

 
68.1

 
48.8

 
(4.0
)
 
202.0

Total current liabilities
91.3

 
155.6

 
85.8

 
(4.0
)
 
328.7

Long-term debt, less current portion
2,181.4

 
111.6

 
214.1

 
—

 
2,507.1

Other noncurrent liabilities
344.7

 
157.1

 
88.7

 
(104.9
)
 
485.6

Intercompany payables
141.1

 
476.8

 
148.1

 
(766.0
)
 
—

Total liabilities
2,758.5

 
901.1

 
536.7

 
(874.9
)
 
3,321.4

Shareowners’ equity (deficit)
(667.8
)
 
584.2

 
432.0

 
(1,016.2
)
 
(667.8
)
Total liabilities and shareowners’ equity (deficit)
$
2,090.7

 
$
1,485.3

 
$
968.7

 
$
(1,891.1
)
 
$
2,653.6


Condensed Consolidating Statements of Cash Flows
 
Year Ended December 31, 2011
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(139.6
)
 
$
189.3

 
$
240.2

 
$
—

 
$
289.9

Capital expenditures
—

 
(149.2
)
 
(106.3
)
 
—

 
(255.5
)
Proceeds from sale of assets
11.5

 
—

 
—

 
—

 
11.5

Other investing activities
(0.7
)
 
—

 
—

 
—

 
(0.7
)
Cash flows provided by (used in) investing activities
10.8

 
(149.2
)
 
(106.3
)
 
—

 
(244.7
)
Funding between Parent and subsidiaries, net
150.3

 
(19.8
)
 
(130.5
)
 
—

 
—

Increase in receivables facility, net
—

 
—

 
0.4

 
—

 
0.4

Repayment of debt
—

 
(8.9
)
 
(2.6
)
 
—

 
(11.5
)
Common stock repurchase
(10.4
)
 
—

 
—

 
—

 
(10.4
)
Other financing activities
(11.3
)
 
(16.0
)
 
—

 
—

 
(27.3
)
Cash flows provided by (used in) financing activities
128.6

 
(44.7
)
 
(132.7
)
 
—

 
(48.8
)
Increase (decrease) in cash and cash equivalents
(0.2
)
 
(4.6
)
 
1.2

 
—

 
(3.6
)
Beginning cash and cash equivalents
69.8

 
5.7

 
1.8

 
—

 
77.3

Ending cash and cash equivalents
$
69.6

 
$
1.1

 
$
3.0

 
$
—

 
$
73.7

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2010
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(54.6
)
 
$
137.3

 
$
217.3

 
$
—

 
$
300.0

Capital expenditures
—

 
(61.0
)
 
(88.7
)
 
—

 
(149.7
)
Acquisitions of businesses
—

 
(526.7
)
 
—

 
—

 
(526.7
)
Other investing activities
—

 
0.6

 
0.3

 
—

 
0.9

Cash flows used in investing activities
—

 
(587.1
)
 
(88.4
)
 
—

 
(675.5
)
Funding between Parent and subsidiaries, net
(423.8
)
 
465.7

 
(41.9
)
 
—

 
—

Proceeds from issuance of long-term debt, net of financing costs
2,090.1

 
1.6

 
—

 
—

 
2,091.7

Decrease in receivables facility, net
—

 
—

 
(85.9
)
 
—

 
(85.9
)
Repayment of debt
(1,540.5
)
 
(12.6
)
 
(1.4
)
 
—

 
(1,554.5
)
Common stock repurchase
(10.0
)
 
—

 
—

 
—

 
(10.0
)
Other financing activities
(11.5
)
 
—

 
—

 
—

 
(11.5
)
Cash flows provided by (used in) financing activities
104.3

 
454.7

 
(129.2
)
 
—

 
429.8

Increase (decrease) in cash and cash equivalents
49.7

 
4.9

 
(0.3
)
 
—

 
54.3

Beginning cash and cash equivalents
20.1

 
0.8

 
2.1

 
—

 
23.0

Ending cash and cash equivalents
$
69.8

 
$
5.7

 
$
1.8

 
$
—

 
$
77.3


 
Year Ended December 31, 2009
(dollars in millions)
Parent (Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(164.9
)
 
$
184.4

 
$
246.1

 
$
—

 
$
265.6

Capital expenditures
(0.6
)
 
(68.0
)
 
(126.5
)
 
—

 
(195.1
)
Acquisitions of businesses
—

 
(2.9
)
 
(0.5
)
 
—

 
(3.4
)
Proceeds from sale of assets
—

 
105.9

 
—

 
—

 
105.9

Other investing activities
0.4

 
(2.1
)
 
0.5

 
—

 
(1.2
)
Cash flows provided by (used in) investing activities
(0.2
)
 
32.9

 
(126.5
)
 
—

 
(93.8
)
Funding between Parent and subsidiaries, net
321.1

 
(208.5
)
 
(112.6
)
 
—

 
—

Proceeds from issuance of long-term debt, net of financing costs
477.5

 
—

 
—

 
—

 
477.5

Increase/(decrease) in receivables facility, net
(53.0
)
 
—

 
10.9

 
—

 
(42.1
)
Repayment of debt
(480.5
)
 
(8.4
)
 
(17.6
)
 
—

 
(506.5
)
Common stock repurchase
(73.2
)
 
—

 
—

 
—

 
(73.2
)
Other financing activities
(11.2
)
 
—

 
—

 
—

 
(11.2
)
Cash flows provided by (used in) financing activities
180.7

 
(216.9
)
 
(119.3
)
 
—

 
(155.5
)
   Increase in cash and cash equivalents
15.6

 
0.4

 
0.3

 
—

 
16.3

   Beginning cash and cash equivalents
4.5

 
0.4

 
1.8

 
—

 
6.7

   Ending cash and cash equivalents
$
20.1

 
$
0.8

 
$
2.1

 
$
—

 
$
23.0