Discontinued Operations

3 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

9. Discontinued Operations

On February 2, 2024, the Company entered into a definitive purchase agreement (the "Purchase Agreement") with TowerBrook Capital Partners ("TowerBrook") which provided that TowerBrook would acquire the Disposal Group from the Company for a purchase price of $670.0 million. On December 2, 2024, Cincinnati Bell completed the transaction. Pursuant to terms of the Purchase Agreement, TowerBrook acquired the Disposal Group for the purchase price of $670.0 million plus an incremental $18.4 million for certain working capital changes that occurred between the date of the Purchase Agreement and December 2, 2024. During the three months ended March 31, 2025, a post-closing selling price adjustment and completion of other Purchase Agreement provisions in connection with the sale resulted in adjustments to the gain on sale amount. In March 2025, the Company recorded a pre-tax $14.5 million ($13.9 million after tax) selling price adjustment in discontinued operations which reduced the previously reported pre-tax gain on the sale of the Disposal Group of $93.7 million to $79.2 million. As the payment to TowerBrook for the adjustment was remitted in April 2025, the $14.5 million was recorded in “Other current liabilities” on the Condensed Consolidated Balance Sheets at March 31, 2025.

Management evaluated the criteria to report a disposal group as held for sale and concluded that all of the criteria were met as of February 2024. Accordingly, the Company has reported the results of operations for the Disposal Group as discontinued operations in the Condensed Consolidated Statements of Operations through the date of sale.

All depreciation and amortization expense associated with intangible assets, property, plant and equipment and right of use assets associated with the Disposal Group ceased as of February 2, 2024.

Financial results of the Disposal Group for the quarter ended March 31, 2024 reported as Income from discontinued operations (net of tax) on the Condensed Consolidated Statements of Operations are as follows:

	Three Months Ended March 31, 2024
Revenue	$	184.3
Costs and expenses
Cost of services and products, excluding items below		122.3
Selling, general and administrative, excluding items below		43.9
Depreciation and amortization		5.7
Restructuring and severance related charges		0.4
Transaction costs		4.1
Total operating costs and expenses		176.4
Operating income		7.9
Interest expense		0.4
Other income, net		(0.9	)
Income from discontinued operations before income taxes		8.4
Income tax expense		1.6
Net income from discontinued operations	$	6.8

The following is selected operating and investing cash flow activity from discontinued operations included in the Condensed Consolidated Statements of Cash Flows:

	Three Months Ended March 31,
	2025			2024
Depreciation and amortization	$	—		$	5.7
Settlement adjustment on sale of discontinued operations	$	(14.5	)	$	—
Capital expenditures	$	—		$	(4.3	)