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Supplemental Guarantor Information
 9 Months Ended
Sep. 30, 2016
Supplemental Guarantor Information Abstract  
Supplemental Guarantor Information
Supplemental Guarantor Information
Cincinnati Bell Telephone Notes
As of September 30, 2016, Cincinnati Bell Telephone Company LLC (“CBT”), a wholly-owned subsidiary of Cincinnati Bell Inc. (the “Parent Company”), had $87.9 million in notes outstanding that are guaranteed by the Parent Company and no other subsidiaries of the Parent Company. The guarantee is full and unconditional. 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. During the first nine months of 2016 and 2015, certain entities issued dividends to the Parent Company which impacted equity and intercompany accounts on the balance sheets of certain non-guarantor entities.

The following information sets forth the Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2016 and 2015, Condensed Consolidating Balance Sheets as of September 30, 2016 and December 31, 2015, and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2016 and 2015 of (1) the Parent Company, as the guarantor, (2) CBT, as the issuer, and (3) the non-guarantor subsidiaries on a combined basis.
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
  
Three Months Ended September 30, 2016
(dollars in millions)
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
170.0

 
$
152.4

 
$
(10.0
)
 
$
312.4

Operating costs and expenses
3.2

 
150.1

 
143.6

 
(10.0
)
 
286.9

Operating income (loss)
(3.2
)
 
19.9

 
8.8

 
—

 
25.5

Interest expense (income), net
23.0

 
1.0

 
(6.1
)
 
—

 
17.9

Other expense (income), net
11.3

 
1.0

 
(34.3
)
 
—

 
(22.0
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(37.5
)
 
17.9

 
49.2

 
—

 
29.6

Income tax expense (benefit)
(13.3
)
 
6.4

 
17.7

 
—

 
10.8

Equity in earnings of subsidiaries, net of tax
43.0

 
—

 
—

 
(43.0
)
 
—

Net income
18.8


11.5


31.5


(43.0
)

18.8

Other comprehensive income
1.4

 
—

 
—

 
—

 
1.4

Total comprehensive income
$
20.2


$
11.5


$
31.5


$
(43.0
)

$
20.2

 
 
 
 
 
 
 
 
 
 
Net income
18.8

 
11.5

 
31.5

 
(43.0
)
 
18.8

Preferred stock dividends
2.6

 
—

 
—

 
—

 
2.6

Net income applicable to common shareowners
$
16.2

 
$
11.5

 
$
31.5

 
$
(43.0
)
 
$
16.2

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
164.5

 
$
144.8

 
$
(9.5
)
 
$
299.8

Operating costs and expenses
2.4

 
135.9

 
134.8

 
(9.5
)
 
263.6

Operating income (loss)
(2.4
)
 
28.6

 
10.0

 
—

 
36.2

Interest expense (income), net
25.3

 
—

 
(3.8
)
 
—

 
21.5

Other expense (income), net
7.4

 
1.7

 
(117.8
)
 
—

 
(108.7
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(35.1
)
 
26.9

 
131.6

 
—

 
123.4

Income tax expense (benefit)
(12.1
)
 
10.1

 
46.1

 
—

 
44.1

Equity in earnings of subsidiaries, net of tax
103.3

 
—

 
—

 
(103.3
)
 
—

Income from continuing operations
80.3


16.8


85.5


(103.3
)

79.3

Income from discontinued operations, net of tax
—

 
—

 
1.0

 
—

 
1.0

Net income
80.3


16.8


86.5


(103.3
)

80.3

Other comprehensive income (loss)
1.7

 
—

 
(0.3
)
 
—

 
1.4

Total comprehensive income
$
82.0

 
$
16.8

 
$
86.2

 
$
(103.3
)
 
$
81.7

 
 
 
 
 
 
 
 
 
 
Net income
80.3

 
16.8

 
86.5

 
(103.3
)
 
80.3

Preferred stock dividends
2.6

 
—

 
—

 
—

 
2.6

Net income applicable to common shareowners
$
77.7

 
$
16.8

 
$
86.5

 
$
(103.3
)
 
$
77.7

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
  
Nine Months Ended September 30, 2016
(dollars in millions)
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
507.8

 
$
422.9

 
$
(30.2
)
 
$
900.5

Operating costs and expenses
15.3

 
436.2

 
396.7

 
(30.2
)
 
818.0

Operating income (loss)
(15.3
)
 
71.6

 
26.2

 
—

 
82.5

Interest expense (income), net
70.4

 
3.1

 
(15.4
)
 
—

 
58.1

Other expense (income), net
16.0

 
2.5

 
(157.4
)
 
—

 
(138.9
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(101.7
)
 
66.0

 
199.0

 
—

 
163.3

Income tax expense (benefit)
(35.7
)
 
23.6

 
72.0

 
—

 
59.9

Equity in earnings of subsidiaries, net of tax
169.4

 
—

 
—

 
(169.4
)
 
—

Net income
103.4

 
42.4

 
127.0

 
(169.4
)
 
103.4

Other comprehensive income (loss)
4.5

 
—

 
(0.1
)
 
—

 
4.4

Total comprehensive income
$
107.9

 
$
42.4

 
$
126.9

 
$
(169.4
)
 
$
107.8

 
 
 
 
 
 
 
 
 
 
Net income
103.4

 
42.4

 
127.0

 
(169.4
)
 
103.4

Preferred stock dividends
7.8

 
—

 
—

 
—

 
7.8

Net income applicable to common shareowners
$
95.6

 
$
42.4

 
$
127.0

 
$
(169.4
)
 
$
95.6

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
493.6

 
$
413.8

 
$
(28.9
)
 
$
878.5

Operating costs and expenses
14.1

 
398.5

 
391.8

 
(28.9
)
 
775.5

Operating income (loss)
(14.1
)
 
95.1

 
22.0

 
—

 
103.0

Interest expense (income), net
87.6

 
(1.1
)
 
(4.3
)
 
—

 
82.2

Other expense (income), net
20.1

 
5.2

 
(410.9
)
 
—

 
(385.6
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(121.8
)
 
91.0

 
437.2

 
—

 
406.4

Income tax expense (benefit)
(41.8
)
 
33.3

 
154.6

 
—

 
146.1

Equity in earnings of subsidiaries, net of tax
401.1

 
—

 
—

 
(401.1
)
 
—

Income from continuing operations
321.1

 
57.7

 
282.6

 
(401.1
)
 
260.3

Income from discontinued operations, net of tax
—

 
—

 
60.8

 
—

 
60.8

Net income
321.1

 
57.7

 
343.4

 
(401.1
)
 
321.1

Other comprehensive income (loss)
9.2

 
—

 
(0.4
)
 
—

 
8.8

Total comprehensive income
$
330.3

 
$
57.7

 
$
343.0

 
$
(401.1
)
 
$
329.9

 
 
 
 
 
 
 
 
 
 
Net income
321.1

 
57.7

 
343.4

 
(401.1
)
 
321.1

Preferred stock dividends
7.8

 
—

 
—

 
—

 
7.8

Net income applicable to common shareowners
$
313.3

 
$
57.7

 
$
343.4

 
$
(401.1
)
 
$
313.3

Condensed Consolidating Balance Sheets
 
 
 
 
 
 
 
 
 
  
As of September 30, 2016
(dollars in millions)
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Cash and cash equivalents
$
6.8

 
$
1.0

 
$
0.7

 
$
—

 
$
8.5

Restricted cash
90.7

 
—

 
—

 
—

 
90.7

Receivables, net
14.6

 
0.5

 
157.1

 
—

 
172.2

Other current assets
1.8

 
22.6

 
17.8

 
—

 
42.2

Total current assets
113.9


24.1


175.6


—


313.6

Property, plant and equipment, net
0.4

 
998.2

 
54.0

 
—

 
1,052.6

Investment in CyrusOne
—

 
—

 
21.0

 
—

 
21.0

Goodwill
—

 
2.2

 
12.1

 
—

 
14.3

Investments in and advances to subsidiaries
815.1

 
—

 
859.6

 
(1,674.7
)
 
—

Other noncurrent assets
181.4

 
1.9

 
85.4

 
(140.3
)
 
128.4

Total assets
$
1,110.8


$
1,026.4


$
1,207.7


$
(1,815.0
)

$
1,529.9

Current portion of long-term debt
$
90.0

 
$
6.0

 
$
2.8

 
$
—

 
$
98.8

Accounts payable
—

 
87.4

 
46.9

 
—

 
134.3

Other current liabilities
37.7

 
56.2

 
26.9

 
—

 
120.8

Other current liabilities from discontinued operations
—

 
—

 
0.4

 
—

 
0.4

Total current liabilities
127.7


149.6


77.0


—


354.3

Long-term debt, less current portion
951.9

 
98.6

 
75.0

 
—

 
1,125.5

Other noncurrent liabilities
225.2

 
159.1

 
0.9

 
(140.3
)
 
244.9

Intercompany payables
—

 
2.7

 
—

 
(2.7
)
 
—

Total liabilities
1,304.8

 
410.0

 
152.9

 
(143.0
)
 
1,724.7

Shareowners’ (deficit) equity
(194.0
)
 
616.4

 
1,054.8

 
(1,672.0
)
 
(194.8
)
Total liabilities and shareowners’ equity (deficit)
$
1,110.8

 
$
1,026.4

 
$
1,207.7

 
$
(1,815.0
)
 
$
1,529.9

 
As of December 31, 2015
 
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Cash and cash equivalents
$
4.6

 
$
1.0

 
$
1.8

 
$
—

 
$
7.4

Receivables, net
0.7

 
—

 
156.4

 
—

 
157.1

Other current assets
1.6

 
20.2

 
14.1

 
—

 
35.9

Total current assets
6.9

 
21.2

 
172.3

 
—

 
200.4

Property, plant and equipment, net
0.3

 
921.5

 
53.7

 
—

 
975.5

Investment in CyrusOne
—

 
—

 
55.5

 
—

 
55.5

Goodwill
—

 
2.2

 
12.1

 
—

 
14.3

Investments in and advances to subsidiaries
844.6

 
63.9

 
647.2

 
(1,555.7
)
 
—

Other noncurrent assets
207.2

 
3.0

 
136.8

 
(146.3
)
 
200.7

Total assets
$
1,059.0

 
$
1,011.8

 
$
1,077.6

 
$
(1,702.0
)
 
$
1,446.4

Current portion of long-term debt
$
5.4

 
$
5.0

 
$
3.4

 
$
—

 
$
13.8

Accounts payable
0.7

 
84.8

 
43.4

 
—

 
128.9

Other current liabilities
41.6

 
45.3

 
24.2

 
—

 
111.1

Other current liabilities from discontinued operations
—

 
—

 
5.4

 
—

 
5.4

Total current liabilities
47.7

 
135.1

 
76.4

 
—

 
259.2

Long-term debt, less current portion
1,018.6

 
134.3

 
70.9

 
—

 
1,223.8

Other noncurrent liabilities
235.5

 
168.3

 
4.0

 
(146.2
)
 
261.6

Intercompany payables
54.7

 
—

 
—

 
(54.7
)
 
—

Total liabilities
1,356.5

 
437.7

 
151.3

 
(200.9
)
 
1,744.6

Shareowners’ (deficit) equity
(297.5
)
 
574.1

 
926.3

 
(1,501.1
)
 
(298.2
)
Total liabilities and shareowners’ equity (deficit)
$
1,059.0

 
$
1,011.8

 
$
1,077.6

 
$
(1,702.0
)
 
$
1,446.4

Condensed Consolidating Statements of Cash Flows
  
Nine Months Ended September 30, 2016
(dollars in millions)
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(41.9
)
 
$
145.3

 
$
38.3

 
$
—

 
$
141.7

Capital expenditures
(0.2
)
 
(169.6
)
 
(19.0
)
 
—

 
(188.8
)
Increase in restricted cash
(90.7
)
 
—

 
—

 
—

 
(90.7
)
Dividends received from CyrusOne
—

 
—

 
6.2

 
—

 
6.2

Proceeds from sale of CyrusOne
—

 
—

 
181.2

 
—

 
181.2

Distributions received from subsidiaries
9.0

 
—

 
—

 
(9.0
)
 
—

Funding between Parent and subsidiaries, net
135.0

 
—

 
(197.4
)
 
62.4

 
—

Other investing activities
(0.8
)
 
—

 
—

 
—

 
(0.8
)
Cash flows provided by (used in) investing activities
52.3


(169.6
)

(29.0
)

53.4

 
(92.9
)
Funding between Parent and subsidiaries, net
—

 
66.6

 
(4.2
)
 
(62.4
)
 
—

Distributions paid to Parent
—

 
—

 
(9.0
)
 
9.0

 
—

Proceeds from issuance of long-term debt
425.0

 
—

 
—

 
—

 
425.0

Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days
—

 
—

 
5.9

 
—

 
5.9

Repayment of debt
(415.9
)
 
(42.3
)
 
(2.8
)
 
—

 
(461.0
)
Debt issuance costs
(8.1
)
 
—

 
(0.3
)
 
—

 
(8.4
)
Common stock repurchase
(4.8
)
 
—

 
—

 
—

 
(4.8
)
Other financing activities
(4.4
)
 
—

 
—

 
—

 
(4.4
)
Cash flows provided by (used in) financing activities
(8.2
)
 
24.3

 
(10.4
)
 
(53.4
)
 
(47.7
)
Increase (decrease) in cash and cash equivalents
2.2

 
—

 
(1.1
)
 
—

 
1.1

Beginning cash and cash equivalents
4.6

 
1.0

 
1.8

 
—

 
7.4

Ending cash and cash equivalents
$
6.8

 
$
1.0

 
$
0.7

 
$
—

 
$
8.5

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
Parent
(Guarantor)
 
CBT
(Issuer)
 
Other
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(13.5
)
 
$
162.2

 
$
(54.0
)
 
$
—

 
$
94.7

Capital expenditures
(0.1
)
 
(187.4
)
 
(18.2
)
 
—

 
(205.7
)
Dividends received from CyrusOne
—

 
—

 
19.5

 
—

 
19.5

Proceeds from sale of CyrusOne
—

 
—

 
596.3

 
—

 
596.3

Proceeds from sale of assets
—

 
0.1

 
0.5

 
—

 
0.6

Distributions received from subsidiaries
8.7

 
—

 
—

 
(8.7
)
 
—

Funding between Parent and subsidiaries, net
—

 
29.3

 
(528.7
)
 
499.4

 
—

Other investing activities
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Cash flows provided by (used in) investing activities
8.4

 
(158.0
)
 
69.4

 
490.7

 
410.5

Funding between Parent and subsidiaries, net
482.9

 
—

 
16.5

 
(499.4
)
 
—

Distributions paid to Parent
—

 
—

 
(8.7
)
 
8.7

 
—

Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days
—

 
—

 
(19.2
)
 
—

 
(19.2
)
Repayment of debt
(503.4
)
 
(3.7
)
 
(2.7
)
 
—

 
(509.8
)
Debt issuance costs
(0.2
)
 
—

 
(0.2
)
 
—

 
(0.4
)
Other financing activities
(8.3
)
 
—

 
—

 
—

 
(8.3
)
Cash flows provided by (used in) financing activities
(29.0
)
 
(3.7
)
 
(14.3
)
 
(490.7
)
 
(537.7
)
   Increase (decrease) in cash and cash equivalents
(34.1
)
 
0.5

 
1.1

 
—

 
(32.5
)
   Beginning cash and cash equivalents
56.2

 
1.0

 
0.7

 
—

 
57.9

   Ending cash and cash equivalents
$
22.1

 
$
1.5

 
$
1.8

 
$
—

 
$
25.4


Supplemental Guarantor Information - 8 3/8% Senior Notes due 2020 and 7% Senior Notes due 2024
As of September 30, 2016, the Parent Company’s 8 3/8% Senior Notes due 2020 (the "2020 Notes") and 7% Senior Notes due 2024 (the "2024 Notes") 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 Technology Solutions Inc., Cincinnati Bell Any Distance of Virginia LLC, eVolve Business Solutions LLC, Data Center Investments Inc., and Data Centers South Inc. During the first nine months of 2016 and 2015, certain entities issued dividends to the Parent Company which impacted equity and intercompany accounts on the balance sheets of certain non-guarantor entities.

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 Corporate Credit Agreement.

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 Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2016 and 2015, Condensed Consolidating Balance Sheets as of September 30, 2016 and December 31, 2015, and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2016 and 2015 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.
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
 
Three Months Ended September 30, 2016
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
175.9

 
$
146.5

 
$
(10.0
)
 
$
312.4

Operating costs and expenses
3.2

 
158.9

 
134.8

 
(10.0
)
 
286.9

Operating income (loss)
(3.2
)
 
17.0

 
11.7

 
—

 
25.5

Interest expense (income), net
23.0

 
(6.6
)
 
1.5

 
—

 
17.9

Other expense (income), net
11.3

 
(29.4
)
 
(3.9
)
 
—

 
(22.0
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(37.5
)
 
53.0

 
14.1

 
—

 
29.6

Income tax expense (benefit)
(13.3
)
 
19.0

 
5.1

 
—

 
10.8

Equity in earnings of subsidiaries, net of tax
43.0

 
—

 
—

 
(43.0
)
 
—

Net income
18.8


34.0


9.0


(43.0
)

18.8

Other comprehensive income
1.4

 
—

 
—

 
—

 
1.4

Total comprehensive income
$
20.2

 
$
34.0

 
$
9.0

 
$
(43.0
)
 
$
20.2

 
 
 
 
 
 
 
 
 
 
Net income
18.8

 
34.0

 
9.0

 
(43.0
)
 
18.8

Preferred stock dividends
2.6

 
—

 
—

 
—

 
2.6

Net income applicable to common shareowners
$
16.2

 
$
34.0

 
$
9.0

 
$
(43.0
)
 
$
16.2

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
158.5

 
$
150.8

 
$
(9.5
)
 
$
299.8

Operating costs and expenses
2.4

 
148.0

 
122.7

 
(9.5
)
 
263.6

Operating income (loss)
(2.4
)
 
10.5

 
28.1

 
—

 
36.2

Interest expense (income), net
25.3

 
(4.2
)
 
0.4

 
—

 
21.5

Other expense (income), net
7.4

 
(113.2
)
 
(2.9
)
 
—

 
(108.7
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(35.1
)
 
127.9

 
30.6

 
—

 
123.4

Income tax expense (benefit)
(12.1
)
 
44.7

 
11.5

 
—

 
44.1

Equity in earnings of subsidiaries, net of tax
103.3

 
—

 
—

 
(103.3
)
 
—

Income from continuing operations
80.3


83.2


19.1


(103.3
)

79.3

Income from discontinued operations, net of tax
—

 
1.0

 
—

 
—

 
1.0

Net income
80.3


84.2


19.1


(103.3
)

80.3

Other comprehensive income (loss)
1.7

 
—

 
(0.3
)
 
—

 
1.4

Total comprehensive income
$
82.0

 
$
84.2

 
$
18.8

 
$
(103.3
)
 
$
81.7

 
 
 
 
 
 
 
 
 
 
Net income
80.3

 
84.2

 
19.1

 
(103.3
)
 
80.3

Preferred stock dividends
2.6

 
—

 
—

 
—

 
2.6

Net income applicable to common shareowners
$
77.7

 
$
84.2

 
$
19.1

 
$
(103.3
)
 
$
77.7

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
 
Nine Months Ended September 30, 2016
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
491.3

 
$
439.4

 
$
(30.2
)
 
$
900.5

Operating costs and expenses
15.3

 
440.1

 
392.8

 
(30.2
)
 
818.0

Operating income (loss)
(15.3
)
 
51.2

 
46.6

 
—

 
82.5

Interest expense (income), net
70.4

 
(16.7
)
 
4.4

 
—

 
58.1

Other expense (income), net
16.0

 
(142.6
)
 
(12.3
)
 
—

 
(138.9
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(101.7
)
 
210.5

 
54.5

 
—

 
163.3

Income tax expense (benefit)
(35.7
)
 
76.1

 
19.5

 
—

 
59.9

Equity in earnings of subsidiaries, net of tax
169.4

 
—

 
—

 
(169.4
)
 
—

Net income
103.4

 
134.4

 
35.0

 
(169.4
)
 
103.4

Other comprehensive income (loss)
4.5

 
—

 
(0.1
)
 
—

 
4.4

Total comprehensive income
$
107.9

 
$
134.4

 
$
34.9

 
$
(169.4
)
 
$
107.8

 
 
 
 
 
 
 
 
 
 
Net income
103.4

 
134.4

 
35.0

 
(169.4
)
 
103.4

Preferred stock dividends
7.8

 
—

 
—

 
—

 
7.8

Net income applicable to common shareowners
$
95.6

 
$
134.4

 
$
35.0

 
$
(169.4
)
 
$
95.6

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Revenue
$
—

 
$
462.1

 
$
445.3

 
$
(28.9
)
 
$
878.5

Operating costs and expenses
14.1

 
437.1

 
353.2

 
(28.9
)
 
775.5

Operating income (loss)
(14.1
)
 
25.0

 
92.1

 
—

 
103.0

Interest expense (income), net
87.6

 
(5.2
)
 
(0.2
)
 
—

 
82.2

Other expense (income), net
20.1

 
(398.0
)
 
(7.7
)
 
—

 
(385.6
)
Income (loss) before equity in earnings of subsidiaries and income taxes
(121.8
)
 
428.2

 
100.0

 
—

 
406.4

Income tax expense (benefit)
(41.8
)
 
151.1

 
36.8

 
—

 
146.1

Equity in earnings of subsidiaries, net of tax
401.1

 
—

 
—

 
(401.1
)
 
—

Income from continuing operations
321.1

 
277.1

 
63.2

 
(401.1
)
 
260.3

Income from discontinued operations, net of tax
—

 
60.8

 
—

 
—

 
60.8

Net income
321.1

 
337.9

 
63.2

 
(401.1
)
 
321.1

Other comprehensive income (loss)
9.2

 
—

 
(0.4
)
 
—

 
8.8

Total comprehensive income
$
330.3

 
$
337.9

 
$
62.8

 
$
(401.1
)
 
$
329.9

 
 
 
 
 
 
 
 
 
 
Net income
321.1

 
337.9

 
63.2

 
(401.1
)
 
321.1

Preferred stock dividends
7.8

 
—

 
—

 
—

 
7.8

Net income applicable to common shareowners
$
313.3

 
$
337.9

 
$
63.2

 
$
(401.1
)
 
$
313.3

Condensed Consolidating Balance Sheets
 
 
 
 
 
 
 
 
 
 
As of September 30, 2016
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash and cash equivalents
$
6.8

 
$
0.2

 
$
1.5

 
$
—

 
$
8.5

Restricted cash
90.7

 
—

 
—

 
—

 
90.7

Receivables, net
14.6

 
1.7

 
155.9

 
—

 
172.2

Other current assets
1.8

 
18.6

 
21.8

 
—

 
42.2

Total current assets
113.9


20.5


179.2


—


313.6

Property, plant and equipment, net
0.4

 
53.0

 
999.2

 
—

 
1,052.6

Investment in CyrusOne
—

 
21.0

 
—

 
—

 
21.0

Goodwill
—

 
12.1

 
2.2

 
—

 
14.3

Investments in and advances to subsidiaries
815.1

 
1,024.3

 
—

 
(1,839.4
)
 
—

Other noncurrent assets
181.4

 
82.5

 
4.8

 
(140.3
)
 
128.4

Total assets
$
1,110.8


$
1,213.4


$
1,185.4


$
(1,979.7
)

$
1,529.9

Current portion of long-term debt
$
90.0

 
$
2.8

 
$
6.0

 
$
—

 
$
98.8

Accounts payable
—

 
63.7

 
70.6

 
—

 
134.3

Other current liabilities
37.7

 
37.4

 
45.7

 
—

 
120.8

Other current liabilities from discontinued operations
—

 
0.4

 
—

 
—

 
0.4

Total current liabilities
127.7


104.3


122.3


—


354.3

Long-term debt, less current portion
951.9

 
51.5

 
122.1

 
—

 
1,125.5

Other noncurrent liabilities
225.2

 
5.4

 
154.6

 
(140.3
)
 
244.9

Intercompany payables
—

 
—

 
154.7

 
(154.7
)
 
—

Total liabilities
1,304.8

 
161.2

 
553.7

 
(295.0
)
 
1,724.7

Shareowners’ (deficit) equity
(194.0
)
 
1,052.2

 
631.7

 
(1,684.7
)
 
(194.8
)
Total liabilities and shareowners’ equity (deficit)
$
1,110.8

 
$
1,213.4

 
$
1,185.4

 
$
(1,979.7
)
 
$
1,529.9

 
 
As of December 31, 2015
 
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash and cash equivalents
$
4.6

 
$
0.4

 
$
2.4

 
$
—

 
$
7.4

Receivables, net
0.7

 
2.8

 
153.6

 
—

 
157.1

Other current assets
1.6

 
15.6

 
18.7

 
—

 
35.9

Total current assets
6.9

 
18.8

 
174.7

 
—

 
200.4

Property, plant and equipment, net
0.3

 
53.4

 
921.8

 
—

 
975.5

Investment in CyrusOne
—

 
55.5

 
—

 
—

 
55.5

Goodwill
—

 
12.1

 
2.2

 
—

 
14.3

Investments in and advances to subsidiaries
844.6

 
830.4

 
4.3

 
(1,679.3
)
 
—

Other noncurrent assets
207.2

 
133.4

 
6.3

 
(146.2
)
 
200.7

Total assets
$
1,059.0

 
$
1,103.6

 
$
1,109.3

 
$
(1,825.5
)
 
$
1,446.4

Current portion of long-term debt
$
5.4

 
$
3.4

 
$
5.0

 
$
—

 
$
13.8

Accounts payable
0.7

 
95.6

 
32.6

 
—

 
128.9

Other current liabilities
41.6

 
26.8

 
42.7

 
—

 
111.1

Other current liabilities from discontinued operations
—

 
5.4

 
—

 
—

 
5.4

Total current liabilities
47.7

 
131.2

 
80.3

 
—

 
259.2

Long-term debt, less current portion
1,018.6

 
53.3

 
151.9

 
—

 
1,223.8

Other noncurrent liabilities
235.5

 
11.8

 
160.5

 
(146.2
)
 
261.6

Intercompany payables
54.7

 
—

 
127.3

 
(182.0
)
 
—

Total liabilities
1,356.5

 
196.3

 
520.0

 
(328.2
)
 
1,744.6

Shareowners’ (deficit) equity
(297.5
)
 
907.3

 
589.3

 
(1,497.3
)
 
(298.2
)
Total liabilities and shareowners’ equity (deficit)
$
1,059.0

 
$
1,103.6

 
$
1,109.3

 
$
(1,825.5
)
 
$
1,446.4

Condensed Consolidating Statements of Cash Flows
 
Nine Months Ended September 30, 2016
(dollars in millions)
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(41.9
)
 
$
17.5

 
$
166.1

 
$
—

 
$
141.7

Capital expenditures
(0.2
)
 
(19.0
)
 
(169.6
)
 
—

 
(188.8
)
Increase in restricted cash
(90.7
)
 
—

 
—

 
—

 
(90.7
)
Dividends received from CyrusOne
—

 
6.2

 
—

 
—

 
6.2

Proceeds from sale of CyrusOne
—

 
181.2

 
—

 
—

 
181.2

Distributions received from subsidiaries
9.0

 
—

 
—

 
(9.0
)
 
—

Funding between Parent and subsidiaries, net
135.0

 
(183.3
)
 
—

 
48.3

 
—

Other investing activities
(0.8
)
 
—

 
—

 
—

 
(0.8
)
Cash flows provided by (used in) investing activities
52.3


(14.9
)

(169.6
)

39.3


(92.9
)
Funding between Parent and subsidiaries, net
—

 
—

 
48.3

 
(48.3
)
 
—

Distributions paid to Parent
—

 
—

 
(9.0
)
 
9.0

 
—

Proceeds from issuance of long-term debt
425.0

 
—

 
—

 
—

 
425.0

Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days
—

 
—

 
5.9

 
—

 
5.9

Repayment of debt
(415.9
)
 
(2.8
)
 
(42.3
)
 
—

 
(461.0
)
Debt issuance costs
(8.1
)
 
—

 
(0.3
)
 
—

 
(8.4
)
Common stock repurchase
(4.8
)
 
—

 
—

 
—

 
(4.8
)
Other financing activities
(4.4
)
 
—

 
—

 
—

 
(4.4
)
Cash flows provided by (used in) financing activities
(8.2
)
 
(2.8
)
 
2.6

 
(39.3
)
 
(47.7
)
Increase (decrease) in cash and cash equivalents
2.2

 
(0.2
)
 
(0.9
)
 
—

 
1.1

Beginning cash and cash equivalents
4.6

 
0.4

 
2.4

 
—

 
7.4

Ending cash and cash equivalents
$
6.8

 
$
0.2

 
$
1.5

 
$
—

 
$
8.5

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
  
Parent
(Issuer)
 
Guarantors
 
Non-guarantors
 
Eliminations
 
Total
Cash flows provided by (used in) operating activities
$
(13.5
)
 
$
(35.0
)
 
$
143.2

 
$
—

 
$
94.7

Capital expenditures
(0.1
)
 
(18.2
)
 
(187.4
)
 
—

 
(205.7
)
Dividends received from CyrusOne
—

 
19.5

 
—

 
—

 
19.5

Proceeds from sale of CyrusOne
—

 
596.3

 
—

 
—

 
596.3

Proceeds from sale of assets
—

 
0.5

 
0.1

 
—

 
0.6

Distributions received from subsidiaries
8.7

 
—

 
—

 
(8.7
)
 
—

Funding between Parent and subsidiaries, net
—

 
(560.3
)
 
58.5

 
501.8

 
—

Other investing activities
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Cash flows provided by (used in) investing activities
8.4

 
37.8

 
(128.8
)
 
493.1

 
410.5

Funding between Parent and subsidiaries, net
482.9

 
—

 
18.9

 
(501.8
)
 
—

Distributions paid to Parent
—

 
—

 
(8.7
)
 
8.7

 
—

Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days
—

 
—

 
(19.2
)
 
—

 
(19.2
)
Repayment of debt
(503.4
)
 
(2.7
)
 
(3.7
)
 
—

 
(509.8
)
Debt issuance costs
(0.2
)
 
—

 
(0.2
)
 
—

 
(0.4
)
Other financing activities
(8.3
)
 
—

 
—

 
—

 
(8.3
)
Cash flows provided by (used in) financing activities
(29.0
)
 
(2.7
)
 
(12.9
)
 
(493.1
)
 
(537.7
)
Increase (decrease) in cash and cash equivalents
(34.1
)
 
0.1

 
1.5

 
—

 
(32.5
)
Beginning cash and cash equivalents
56.2

 
0.2

 
1.5

 
—

 
57.9

Ending cash and cash equivalents
$
22.1

 
$
0.3

 
$
3.0

 
$
—

 
$
25.4