Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2012

Supplemental Guarantor Information Abstract

Supplemental Guarantor Information [Table Text Block]

The following information sets forth the Condensed Consolidating Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2012 and 2011, Condensed Consolidating Balance Sheets as of September 30, 2012 and December 31, 2011, and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2012 and 2011, of (1) the Parent Company, as the guarantor, (2) CBT, as the issuer, 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 guarantor) for all periods.

Condensed Consolidating Statements of Operations and Comprehensive Income
	Three Months Ended September 30, 2012
(dollars in millions)	Parent (Guarantor)			CBT (Issuer)			Other Non-guarantors			Eliminations			Total
Revenue	$	—		$	160.8		$	222.8		$	(15.4	)	$	368.2
Operating costs and expenses	12.5			112.0			193.1			(15.4		)	302.2
Operating (loss) income	(12.5		)	48.8			29.7			—			66.0
Interest expense (income), net	41.1			(0.6		)	14.7			—			55.2
Other (income) expense, net	(0.5		)	0.6			—			—			0.1
(Loss) income before equity in earnings of subsidiaries and income taxes	(53.1		)	48.8			15.0			—			10.7
Income tax (benefit) expense	(16.1		)	18.1			4.8			—			6.8
Equity in earnings of subsidiaries, net of tax	40.9			—			—			(40.9		)	—
Net income	3.9			30.7			10.2			(40.9		)	3.9
Other comprehensive income	2.2			—			0.1			—			2.3
Total comprehensive income	$	6.1		$	30.7		$	10.3		$	(40.9	)	$	6.2
Net income	3.9			30.7			10.2			(40.9		)	3.9
Preferred stock dividends	2.6			—			—			—			2.6
Net income applicable to common shareowners	$	1.3		$	30.7		$	10.2		$	(40.9	)	$	1.3
	Three Months Ended September 30, 2011
	Parent (Guarantor)			CBT (Issuer)			Other Non-guarantors			Eliminations			Total
Revenue	$	0.5		$	164.0		$	218.6		$	(14.3	)	$	368.8
Operating costs and expenses	(2.5		)	107.7			191.6			(14.3		)	282.5
Operating income	3.0			56.3			27.0			—			86.3
Interest expense, net	46.7			0.6			6.0			—			53.3
Other (income) expense, net	(0.4		)	1.8			(1.4		)	—			—
(Loss) income before equity in earnings of subsidiaries and income taxes	(43.3		)	53.9			22.4			—			33.0
Income tax (benefit) expense	(11.6		)	17.9			9.1			—			15.4
Equity in earnings of subsidiaries, net of tax	49.3			—			—			(49.3		)	—
Net income	17.6			36.0			13.3			(49.3		)	17.6
Other comprehensive income	1.3			—			—			—			1.3
Total comprehensive income	$	18.9		$	36.0		$	13.3		$	(49.3	)	$	18.9
Net income	17.6			36.0			13.3			(49.3		)	17.6
Preferred stock dividends	2.6			—			—			—			2.6
Net income applicable to common shareowners	$	15.0		$	36.0		$	13.3		$	(49.3	)	$	15.0

Condensed Consolidating Statements of Operations and Comprehensive Income
	Nine Months Ended September 30, 2012
(dollars in millions)	Parent (Guarantor)			CBT (Issuer)			Other Non-guarantors			Eliminations			Total
Revenue	$	—		$	482.0		$	663.6		$	(46.4	)	$	1,099.2
Operating costs and expenses	23.6			324.8			585.0			(46.4		)	887.0
Operating (loss) income	(23.6		)	157.2			78.6			—			212.2
Interest expense (income), net	122.5			(0.8		)	41.6			—			163.3
Other (income) expense, net	(1.2		)	2.9			(0.1		)	—			1.6
(Loss) income before equity in earnings of subsidiaries and income taxes	(144.9		)	155.1			37.1			—			47.3
Income tax (benefit) expense	(45.9		)	56.6			15.6			—			26.3
Equity in earnings of subsidiaries, net of tax	120.0			—			—			(120.0		)	—
Net income	21.0			98.5			21.5			(120.0		)	21.0
Other comprehensive income	6.3			—			0.1			—			6.4
Total comprehensive income	$	27.3		$	98.5		$	21.6		$	(120.0	)	$	27.4
Net income	21.0			98.5			21.5			(120.0		)	21.0
Preferred stock dividends	7.8			—			—			—			7.8
Net income applicable to common shareowners	$	13.2		$	98.5		$	21.5		$	(120.0	)	$	13.2
	Nine Months Ended September 30, 2011
	Parent (Guarantor)			CBT (Issuer)			Other Non-guarantors			Eliminations			Total
Revenue	$	3.4		$	493.4		$	643.0		$	(42.7	)	$	1,097.1
Operating costs and expenses	12.6			323.2			553.7			(42.7		)	846.8
Operating (loss) income	(9.2		)	170.2			89.3			—			250.3
Interest expense, net	120.7			3.3			37.2			—			161.2
Other (income) expense, net	(1.3		)	5.7			(4.4		)	—			—
(Loss) income before equity in earnings of subsidiaries and income taxes	(128.6		)	161.2			56.5			—			89.1
Income tax (benefit) expense	(40.2		)	58.4			21.9			—			40.1
Equity in earnings of subsidiaries, net of tax	137.4			—			—			(137.4		)	—
Net income	49.0			102.8			34.6			(137.4		)	49.0
Other comprehensive income	7.9			—			—			—			7.9
Total comprehensive income	$	56.9		$	102.8		$	34.6		$	(137.4	)	$	56.9
Net income	49.0			102.8			34.6			(137.4		)	49.0
Preferred stock dividends	7.8			—			—			—			7.8
Net income applicable to common shareowners	$	41.2		$	102.8		$	34.6		$	(137.4	)	$	41.2

Condensed Consolidating Balance Sheets
	As of September 30, 2012
(dollars in millions)	Parent (Guarantor)			CBT (Issuer)		Other Non-guarantors		Eliminations			Total
Cash and cash equivalents	$	2.3		$	1.3	$	4.1	$	—		$	7.7
Receivables, net	1.2			—		192.6		—			193.8
Other current assets	7.0			37.9		42.2		(3.2		)	83.9
Total current assets	10.5			39.2		238.9		(3.2		)	285.4
Property, plant and equipment, net	0.1			634.8		875.5		—			1,510.4
Goodwill and intangibles, net	—			2.4		489.7		—			492.1
Investments in and advances to subsidiaries	1,913.1			344.1		—		(2,257.2		)	—
Other noncurrent assets	379.3			6.9		240.2		(162.0		)	464.4
Total assets	$	2,303.0		$	1,027.4	$	1,844.3	$	(2,422.4	)	$	2,752.3
Current portion of long-term debt	$	—		$	3.0	$	10.3	$	—		$	13.3
Accounts payable	0.9			52.3		79.0		—			132.2
Other current liabilities	102.9			49.9		54.6		0.7			208.1
Total current liabilities	103.8			105.2		143.9		0.7			353.6
Long-term debt, less current portion	2,182.5			214.6		164.8		—			2,561.9
Other noncurrent liabilities	376.2			137.3		173.8		(165.9		)	521.4
Intercompany payables	325.1			—		700.5		(1,025.6		)	—
Total liabilities	2,987.6			457.1		1,183.0		(1,190.8		)	3,436.9
Shareowners’ (deficit) equity	(684.6		)	570.3		661.3		(1,231.6		)	(684.6		)
Total liabilities and shareowners’ equity (deficit)	$	2,303.0		$	1,027.4	$	1,844.3	$	(2,422.4	)	$	2,752.3
	As of December 31, 2011
	Parent (Guarantor)			CBT (Issuer)		Other Non-guarantors		Eliminations			Total
Cash and cash equivalents	$	69.6		$	1.4	$	2.7	$	—		$	73.7
Receivables, net	2.0			—		177.4		—			179.4
Other current assets	5.8			31.8		31.7		(1.4		)	67.9
Total current assets	77.4			33.2		211.8		(1.4		)	321.0
Property, plant and equipment, net	0.1			642.5		757.9		—			1,400.5
Goodwill and intangibles, net	—			2.4		505.1		—			507.5
Investments in and advances to subsidiaries	1,731.4			237.3		—		(1,968.7		)	—
Other noncurrent assets	387.9			7.6		234.0		(143.8		)	485.7
Total assets	$	2,196.8		$	923.0	$	1,708.8	$	(2,113.9	)	$	2,714.7
Current portion of long-term debt	$	—		$	3.1	$	9.9	$	—		$	13.0
Accounts payable	1.0			53.7		78.7		—			133.4
Other current liabilities	93.2			55.3		61.5		—			210.0
Total current liabilities	94.2			112.1		150.1		—			356.4
Long-term debt, less current portion	2,182.0			216.3		122.3		—			2,520.6
Other noncurrent liabilities	404.3			122.8		171.0		(145.2		)	552.9
Intercompany payables	231.5			—		595.8		(827.3		)	—
Total liabilities	2,912.0			451.2		1,039.2		(972.5		)	3,429.9
Shareowners’ (deficit) equity	(715.2		)	471.8		669.6		(1,141.4		)	(715.2		)
Total liabilities and shareowners’ equity (deficit)	$	2,196.8		$	923.0	$	1,708.8	$	(2,113.9	)	$	2,714.7

Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30, 2012
(dollars in millions)	Parent (Guarantor)			CBT (Issuer)			Other Non-guarantors			Eliminations		Total
Cash flows (used in) provided by operating activities	$	(69.1	)	$	169.7		$	54.4		$	—	$	155.0
Capital expenditures	—			(73.6		)	(169.3		)	—		(242.9		)
Proceeds from sale of assets	—			0.4			0.2			—		0.6
Other investing activities	—			—			(10.4		)	—		(10.4		)
Cash flows used in investing activities	—			(73.2		)	(179.5		)	—		(252.7		)
Funding between Parent and subsidiaries, net	2.9			(94.3		)	91.4			—		—
Increase in receivables facility, net	—			—			44.0			—		44.0
Repayment of debt	—			(2.3		)	(9.0		)	—		(11.3		)
Common stock repurchase	(0.3		)	—			—			—		(0.3		)
Proceeds from exercise of options and warrants	8.1			—			—			—		8.1
Other financing activities	(8.9		)	—			0.1			—		(8.8		)
Cash flows provided by (used in) financing activities	1.8			(96.6		)	126.5			—		31.7
(Decrease) increase in cash and cash equivalents	(67.3		)	(0.1		)	1.4			—		(66.0		)
Beginning cash and cash equivalents	69.6			1.4			2.7			—		73.7
Ending cash and cash equivalents	$	2.3		$	1.3		$	4.1		$	—	$	7.7
	Nine Months Ended September 30, 2011
	Parent (Guarantor)			CBT (Issuer)			Other Non-guarantors			Eliminations		Total
Cash flows (used in) provided by operating activities	$	(97.5	)	$	188.7		$	107.3		$	—	$	198.5
Capital expenditures	—			(70.5		)	(96.5		)	—		(167.0		)
Proceeds from sale of assets	9.8			—			—			—		9.8
Other investing activities	(0.3		)	—			—			—		(0.3		)
Cash flows provided by (used in) investing activities	9.5			(70.5		)	(96.5		)	—		(157.5		)
Funding between Parent and subsidiaries, net	123.9			(116.8		)	(7.1		)	—		—
Increase in receivables facility, net	—			—			0.4			—		0.4
Repayment of debt	—			(1.6		)	(7.4		)	—		(9.0		)
Common stock repurchase	(10.0		)	—			—			—		(10.0		)
Other financing activities	(9.0		)	—			—			—		(9.0		)
Cash flows provided by (used in) financing activities	104.9			(118.4		)	(14.1		)	—		(27.6		)
Increase (decrease) in cash and cash equivalents	16.9			(0.2		)	(3.3		)	—		13.4
Beginning cash and cash equivalents	69.8			1.8			5.7			—		77.3
Ending cash and cash equivalents	$	86.7		$	1.6		$	2.4		$	—	$	90.7

The following information sets forth the Condensed Consolidating Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2012 and 2011, Condensed Consolidating Balance Sheets as of September 30, 2012 and December 31, 2011, and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2012 and 2011, of (1) 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 and Comprehensive Income
	Three Months Ended September 30, 2012
(dollars in millions)	Parent (Issuer)			Guarantors		Non-guarantors			Eliminations			Total
Revenue	$	—		$	233.0	$	150.6		$	(15.4	)	$	368.2
Operating costs and expenses	12.5			202.7		102.4			(15.4		)	302.2
Operating (loss) income	(12.5		)	30.3		48.2			—			66.0
Interest expense, net	41.1			12.4		1.7			—			55.2
Other (income) expense, net	(0.5		)	3.6		(3.0		)	—			0.1
(Loss) income before equity in earnings of subsidiaries and income taxes	(53.1		)	14.3		49.5			—			10.7
Income tax (benefit) expense	(16.1		)	4.2		18.7			—			6.8
Equity in earnings of subsidiaries, net of tax	40.9			—		—			(40.9		)	—
Net income	3.9			10.1		30.8			(40.9		)	3.9
Other comprehensive income	2.2			—		0.1			—			2.3
Total comprehensive income	$	6.1		$	10.1	$	30.9		$	(40.9	)	$	6.2
Net income	3.9			10.1		30.8			(40.9		)	3.9
Preferred stock dividends	2.6			—		—			—			2.6
Net income applicable to common shareowners	$	1.3		$	10.1	$	30.8		$	(40.9	)	$	1.3
	Three Months Ended September 30, 2011
	Parent (Issuer)			Guarantors		Non-guarantors			Eliminations			Total
Revenue	$	0.5		$	228.3	$	154.3		$	(14.3	)	$	368.8
Operating costs and expenses	(2.5		)	198.6		100.7			(14.3		)	282.5
Operating income	3.0			29.7		53.6			—			86.3
Interest expense, net	46.7			4.0		2.6			—			53.3
Other (income) expense, net	(0.4		)	2.7		(2.3		)	—			—
(Loss) income before equity in earnings of subsidiaries and income taxes	(43.3		)	23.0		53.3			—			33.0
Income tax (benefit) expense	(11.6		)	9.4		17.6			—			15.4
Equity in earnings of subsidiaries, net of tax	49.3			—		—			(49.3		)	—
Net income	17.6			13.6		35.7			(49.3		)	17.6
Other comprehensive income	1.3			—		—			—			1.3
Total comprehensive income	$	18.9		$	13.6	$	35.7		$	(49.3	)	$	18.9
Net income	17.6			13.6		35.7			(49.3		)	17.6
Preferred stock dividends	2.6			—		—			—			2.6
Net income applicable to common shareowners	$	15.0		$	13.6	$	35.7		$	(49.3	)	$	15.0

Condensed Consolidating Statements of Operations and Comprehensive Income
	Nine Months Ended September 30, 2012
(dollars in millions)	Parent (Issuer)			Guarantors		Non-guarantors			Eliminations			Total
Revenue	$	—		$	692.9	$	452.7		$	(46.4	)	$	1,099.2
Operating costs and expenses	23.6			612.8		297.0			(46.4		)	887.0
Operating (loss) income	(23.6		)	80.1		155.7			—			212.2
Interest expense, net	122.5			34.1		6.7			—			163.3
Other (income) expense, net	(1.2		)	11.4		(8.6		)	—			1.6
(Loss) income before equity in earnings of subsidiaries and income taxes	(144.9		)	34.6		157.6			—			47.3
Income tax (benefit) expense	(45.9		)	13.2		59.0			—			26.3
Equity in earnings of subsidiaries, net of tax	120.0			—		—			(120.0		)	—
Net income	21.0			21.4		98.6			(120.0		)	21.0
Other comprehensive income	6.3			—		0.1			—			6.4
Total comprehensive income	$	27.3		$	21.4	$	98.7		$	(120.0	)	$	27.4
Net income	21.0			21.4		98.6			(120.0		)	21.0
Preferred stock dividends	7.8			—		—			—			7.8
Net income applicable to common shareowners	$	13.2		$	21.4	$	98.6		$	(120.0	)	$	13.2
	Nine Months Ended September 30, 2011
	Parent (Issuer)			Guarantors		Non-guarantors			Eliminations			Total
Revenue	$	3.4		$	681.4	$	455.0		$	(42.7	)	$	1,097.1
Operating costs and expenses	12.6			586.2		290.7			(42.7		)	846.8
Operating (loss) income	(9.2		)	95.2		164.3			—			250.3
Interest expense, net	120.7			31.0		9.5			—			161.2
Other (income) expense, net	(1.3		)	8.0		(6.7		)	—			—
(Loss) income before equity in earnings of subsidiaries and income taxes	(128.6		)	56.2		161.5			—			89.1
Income tax (benefit) expense	(40.2		)	21.6		58.7			—			40.1
Equity in earnings of subsidiaries, net of tax	137.4			—		—			(137.4		)	—
Net income	49.0			34.6		102.8			(137.4		)	49.0
Other comprehensive income	7.9			—		—			—			7.9
Total comprehensive income	$	56.9		$	34.6	$	102.8		$	(137.4	)	$	56.9
Net income	49.0			34.6		102.8			(137.4		)	49.0
Preferred stock dividends	7.8			—		—			—			7.8
Net income applicable to common shareowners	$	41.2		$	34.6	$	102.8		$	(137.4	)	$	41.2

Condensed Consolidating Balance Sheets
	As of September 30, 2012
(dollars in millions)	Parent (Issuer)			Guarantors		Non-guarantors		Eliminations			Total
Cash and cash equivalents	$	2.3		$	2.0	$	3.4	$	—		$	7.7
Receivables, net	1.2			0.6		192.0		—			193.8
Other current assets	7.0			38.3		41.8		(3.2		)	83.9
Total current assets	10.5			40.9		237.2		(3.2		)	285.4
Property, plant and equipment, net	0.1			848.7		661.6		—			1,510.4
Goodwill and intangibles, net	—			489.7		2.4		—			492.1
Investments in and advances to subsidiaries	1,913.1			6.0		304.9		(2,224.0		)	—
Other noncurrent assets	379.3			241.4		5.7		(162.0		)	464.4
Total assets	$	2,303.0		$	1,626.7	$	1,211.8	$	(2,389.2	)	$	2,752.3
Current portion of long-term debt	$	—		$	9.8	$	3.5	$	—		$	13.3
Accounts payable	0.9			100.0		31.3		—			132.2
Other current liabilities	102.9			56.0		48.5		0.7			208.1
Total current liabilities	103.8			165.8		83.3		0.7			353.6
Long-term debt, less current portion	2,182.5			111.8		267.6		—			2,561.9
Other noncurrent liabilities	376.2			157.4		153.7		(165.9		)	521.4
Intercompany payables	325.1			576.2		104.0		(1,005.3		)	—
Total liabilities	2,987.6			1,011.2		608.6		(1,170.5		)	3,436.9
Shareowners’ (deficit) equity	(684.6		)	615.5		603.2		(1,218.7		)	(684.6		)
Total liabilities and shareowners’ equity (deficit)	$	2,303.0		$	1,626.7	$	1,211.8	$	(2,389.2	)	$	2,752.3
	As of December 31, 2011
	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’ (deficit) equity	(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

Condensed Consolidating Statements of Cash Flows
	Nine Months Ended September 30, 2012
(dollars in millions)	Parent (Issuer)			Guarantors			Non-guarantors			Eliminations		Total
Cash flows (used in) provided by operating activities	$	(69.1	)	$	87.5		$	136.6		$	—	$	155.0
Capital expenditures	—			(169.0		)	(73.9		)	—		(242.9		)
Proceeds from sale of assets	—			0.2			0.4			—		0.6
Other investing activities	—			(10.4		)	—			—		(10.4		)
Cash flows used in investing activities	—			(179.2		)	(73.5		)	—		(252.7		)
Funding between Parent and subsidiaries, net	2.9			101.5			(104.4		)	—		—
Increase in receivables facility, net	—			—			44.0			—		44.0
Repayment of debt	—			(9.0		)	(2.3		)	—		(11.3		)
Common stock repurchase	(0.3		)	—			—			—		(0.3		)
Proceeds from exercise of options and warrants	8.1			—			—			—		8.1
Other financing activities	(8.9		)	0.1			—			—		(8.8		)
Cash flows provided by (used in) financing activities	1.8			92.6			(62.7		)	—		31.7
(Decrease) increase in cash and cash equivalents	(67.3		)	0.9			0.4			—		(66.0		)
Beginning cash and cash equivalents	69.6			1.1			3.0			—		73.7
Ending cash and cash equivalents	$	2.3		$	2.0		$	3.4		$	—	$	7.7
	Nine Months Ended September 30, 2011
	Parent (Issuer)			Guarantors			Non-guarantors			Eliminations		Total
Cash flows (used in) provided by operating activities	$	(97.5	)	$	108.3		$	187.7		$	—	$	198.5
Capital expenditures	—			(96.5		)	(70.5		)	—		(167.0		)
Proceeds from sale of assets	9.8			—			—			—		9.8
Other investing activities	(0.3		)	—			—			—		(0.3		)
Cash flows provided by (used in) investing activities	9.5			(96.5		)	(70.5		)	—		(157.5		)
Funding between Parent and subsidiaries, net	123.9			(8.9		)	(115.0		)	—		—
Increase in receivables facility, net	—			—			0.4			—		0.4
Repayment of debt	—			(7.0		)	(2.0		)	—		(9.0		)
Common stock repurchase	(10.0		)	—			—			—		(10.0		)
Other financing activities	(9.0		)	—			—			—		(9.0		)
Cash flows provided by (used in) financing activities	104.9			(15.9		)	(116.6		)	—		(27.6		)
Increase (decrease) in cash and cash equivalents	16.9			(4.1		)	0.6			—		13.4
Beginning cash and cash equivalents	69.8			5.7			1.8			—		77.3
Ending cash and cash equivalents	$	86.7		$	1.6		$	2.4		$	—	$	90.7