Mergers and Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The purchase price for OnX and Hawaiian Telcom have been currently allocated to individual assets acquired and liabilities assumed as follows:



(dollars in millions)	Hawaiian Telcom		OnX
Assets acquired
Cash	$	4.3	$	6.5
Receivables	25.5		69.9
Inventory, materials and supplies	6.9		9.0
Prepaid expenses and other current assets	5.9		2.8
Property, plant and equipment	701.5		11.6
Goodwill	8.8		133.1
Intangible assets	52.0		134.0
Deferred income tax asset	43.6		1.4
Other noncurrent assets	2.1		1.8
Total assets acquired	850.6		370.1
Liabilities assumed
Accounts payable	58.0		63.6
Current portion of long-term debt	10.2		1.3
Unearned revenue and customer deposits	13.5		—
Accrued expenses and other current liabilities	21.7		18.3
Deferred income tax liabilities	—		42.3
Long-term debt, less current portion	304.5		76.7
Pension and postretirement benefit obligations	68.9		—
Other noncurrent liabilities	34.3		1.5
Total liabilities assumed	511.1		203.7
Net assets acquired	$	339.5	$	166.4

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The estimated fair value of identifiable intangible assets and their estimated useful lives are as follows:



	Hawaiian Telcom			OnX
(dollars in millions)	Fair Value		Useful Lives	Fair Value		Useful Lives
Customer relationships	$	26.0	15 years	$	108.0	15 years
Trade name	26.0		15 years	16.0		10 years
Technology	—		—	10.0		10 years
Total identifiable intangible assets	$	52.0		$	134.0

Business Acquisition, Pro Forma Information

The following table provides the unaudited pro forma results of operations for the year ended 2018, 2017 and 2016 as if the acquisitions of OnX and Hawaiian Telcom had taken place as of the beginning of fiscal year 2016 and 2017, respectively. These proforma results include adjustments related to the financing of the acquisitions, an increase to depreciation and amortization associated with the higher values of property, plant and equipment and intangible assets, an increase to interest expense for the additional debt incurred to complete the acquisitions, and reflects the related income tax effect and change in tax status. Revenue has been retrospectively adjusted for the adoption of ASC 606 to reflect hardware revenue in the Infrastructure Solutions category net of related cost of products. ASC 606 was not applied to the year ended December 31, 2017 for Hawaiian Telcom results because they utilized the modified retrospective method of adoption. Reported amounts for 2017 could be materially different if Hawaiian Telcom had adopted the standard using the full retrospective method of adoption.

The pro forma information does not necessarily reflect the actual results of operations had the acquisitions been consummated at the beginning of the annual reporting period indicated, nor is it necessarily indicative of future operating results. The pro forma information does not include any (i) potential revenue enhancements, cost synergies or other operating efficiencies that could result from the acquisitions or (ii) transaction or integration costs relating to the acquisitions.



	Year Ended December 31,
(dollars in millions, except per share amounts)	2018			2017			2016
Revenue	$	1,556.5		$	1,588.5		$	1,767.5
Net (loss) income applicable to common shareholders	(77.7		)	(84.6		)	91.7
Earnings per share:
Basic and diluted (loss) earnings per common share	(1.55		)	(1.70		)	2.18

Hawaiian Telcom Holdco, Inc. [Member]

Business Acquisition [Line Items]

Business Combination Schedule of Consideration

The purchase price for Hawaiian Telcom consisted of the following:



(dollars in millions)
Cash consideration plus debt assumed	$	536.5
Cincinnati Bell Inc. stock issued	121.2
Debt repayment	(318.2		)
Total purchase price	$	339.5

OnX Holdings LLC [Member]

Business Acquisition [Line Items]

Business Combination Schedule of Consideration

The purchase price for OnX consisted of the following:



(dollars in millions)
Cash consideration	$	241.2
Debt repayment	(77.6		)
Working capital adjustment	2.8
Total purchase price	$	166.4