10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-8519

CINCINNATI BELL INC.

Ohio	31-1056105
(State of Incorporation)	(I.R.S. Employer Identification No.)

221 East Fourth Street, Cincinnati, Ohio 45202

(Address of principal executive offices) (Zip Code)

(513) 397-9900

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☐     No   ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T ( § 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes   ☐     No   ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ☐   No   ☒

Securities Registered Pursuant to Section 12(b) of the Act:

TABLE OF CONTENTS

PART I. Financial Information

Description		Page
Item 1.	Financial Statements
	Condensed Consolidated Statements of Operations (Unaudited)	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	2
	Condensed Consolidated Statements of Shareowners' Equity (Deficit) (Unaudited)	3
	Condensed Consolidated Balance Sheets (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	53
Item 4.	Controls and Procedures	53
	PART II. Other Information
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3.	Default upon Senior Securities	55
Item 4.	Mine Safety Disclosure	55
Item 5.	Other Information	55
Item 6.	Exhibits	56
	Signatures	57

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions)

(Unaudited)

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5
Costs and expenses
Cost of services and products, excluding items below		60.5			174.6			203.9			60.5			619.5			591.0
Selling, general and administrative, excluding items below		22.1			74.2			86.0			22.1			243.4			255.3
Depreciation and amortization		30.2			52.1			71.9			30.2			194.9			220.8
Restructuring and severance related charges		—			0.3			0.8			—			1.2			16.4
Transaction and integration costs		—			51.5			2.2			—			54.8			33.8
Gain on sale of assets, net		—			(2.8	)		—			—			(2.8	)		—
Total operating costs and expenses		112.8			349.9			364.8			112.8			1,111.0			1,117.3
Operating (loss) income		(1.4	)		(35.3	)		24.7			(1.4	)		27.7			32.2
Interest expense		6.4			23.2			33.4			6.4			89.1			100.6
Other components of pension and postretirement benefit plans (benefit) expense		(1.1	)		2.1			2.6			(1.1	)		6.4			9.0
Loss on extinguishment of debt		—			10.7			—			—			10.7			—
Other (income) expense, net		(0.3	)		19.7			(0.2	)		(0.3	)		19.7			(1.2	)
Loss before income taxes		(6.4	)		(91.0	)		(11.1	)		(6.4	)		(98.2	)		(76.2	)
Income tax benefit		(1.4	)		(17.3	)		(2.9	)		(1.4	)		(16.9	)		(26.2	)
Net loss		(5.0	)		(73.7	)		(8.2	)		(5.0	)		(81.3	)		(50.0	)
Preferred stock dividends		—			2.4			2.6			—			7.6			7.8
Net loss applicable to common shareowners	$	(5.0	)	$	(76.1	)	$	(10.8	)	$	(5.0	)	$	(88.9	)	$	(57.8	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

1

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in millions)

(Unaudited)

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Net loss	$	(5.0	)	$	(73.7	)	$	(8.2	)	$	(5.0	)	$	(81.3	)	$	(50.0	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation (loss) gain		(1.2	)		(1.4	)		2.0			(1.2	)		1.2			(2.1	)
Cash flow hedges:
Unrealized loss on cash flow hedges arising during the period, net of tax of ($0.2), ($0.1), $0.0, ($3.3)		—			(0.6	)		(0.5	)		—			(0.1	)		(11.3	)
Reclassification adjustment for net losses included in net income, net of tax of $4.7, $0.5, $5.8, $1.4		—			16.2			1.8			—			19.7			4.6
Defined benefit plans:
Net gain (loss) arising from remeasurement during the period, net of tax of $1.0, $1.8, ($3.4)		—			—			3.2			—			6.0			(11.5	)
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.1), ($0.4), ($0.4)		—			(0.3	)		(0.5	)		—			(1.3	)		(1.5	)
Amortization of net actuarial loss included in net income, net of tax of $1.0, $1.1, $3.6, $3.3		—			3.1			3.7			—			12.0			11.1
Reclassification adjustment for pension settlement charges included in net income, net of tax of $0.2		—			—			—			—			—			0.9
Total other comprehensive (loss) income		(1.2	)		17.0			9.7			(1.2	)		37.5			(9.8	)
Total comprehensive (loss) income	$	(6.2	)	$	(56.7	)	$	1.5		$	(6.2	)	$	(43.8	)	$	(59.8	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

2

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (DEFICIT)

(in millions)

(Unaudited)

	6 3/4 % Cumulative Convertible Preferred Shares				Common Shares				Additional Paid-in			Retained Earnings			Accumulated Other Comprehensive
Successor	Shares		Amount		Shares		Amount		Capital			(Accumulated Deficit)			Loss			Total
Balance at September 8, 2021 (remeasured upon Merger)		—	$	—		—	$	—	$	—		$	—		$	—		$	—
Net loss		—		—		—		—		—			(5.0	)		—			(5.0	)
Other comprehensive loss		—		—		—		—		—			—			(1.2	)		(1.2	)
Capital contributions by Red Fiber Parent LLC		—		—		0.5		—		1,716.1			—			—			1,716.1
Balance at September 30, 2021		—	$	—		0.5	$	—	$	1,716.1		$	(5.0	)	$	(1.2	)	$	1,709.9
Predecessor
Balance at June 30, 2021		3.1	$	129.4		50.9	$	0.5	$	2,665.3		$	(2,839.2	)	$	(139.2	)	$	(183.2	)
Net loss		—		—		—		—		—			(73.7	)		—			(73.7	)
Other comprehensive income		—		—		—		—		—			—			17.0			17.0
Stock-based compensation		—		—		—		—		2.1			—			—			2.1
Equity-based award modification		—		—		—		—		(10.2	)		—			—			(10.2	)
Dividends on preferred stock		—		—		—		—		(2.4	)		—			—			(2.4	)
Balance at September 7, 2021		3.1	$	129.4		50.9	$	0.5	$	2,654.8		$	(2,912.9	)	$	(122.2	)	$	(250.4	)
Predecessor
Balance at June 30, 2020		3.1	$	129.4		50.7	$	0.5	$	2,672.9		$	(2,817.8	)	$	(189.6	)	$	(204.6	)
Net loss		—		—		—		—		—			(8.2	)		—			(8.2	)
Other comprehensive income		—		—		—		—		—			—			9.7			9.7
Stock-based compensation		—		—		—		—		1.2			—			—			1.2
Dividends on preferred stock		—		—		—		—		(2.6	)		—			—			(2.6	)
Balance at September 30, 2020		3.1	$	129.4		50.7	$	0.5	$	2,671.5		$	(2,826.0	)	$	(179.9	)	$	(204.5	)

3

	6 3/4 % Cumulative Convertible Preferred Shares				Common Shares				Additional Paid-in			Retained Earnings			Accumulated Other Comprehensive
Successor	Shares		Amount		Shares		Amount		Capital			(Accumulated Deficit)			Loss			Total
Balance at September 8, 2021 (remeasured upon Merger)		—	$	—		—	$	—	$	—		$	—		$	—		$	—
Net loss		—		—		—		—		—			(5.0	)		—			(5.0	)
Other comprehensive loss		—		—		—		—		—			—			(1.2	)		(1.2	)
Capital contributions by Red Fiber Parent LLC		—		—		0.5		—		1,716.1			—			—			1,716.1
Balance at September 30, 2021		—	$	—		0.5	$	—	$	1,716.1		$	(5.0	)	$	(1.2	)	$	1,709.9
Predecessor
Balance at December 31, 2020		3.1	$	129.4		50.7	$	0.5	$	2,670.3		$	(2,831.6	)	$	(159.7	)	$	(191.1	)
Net loss		—		—		—		—		—			(81.3	)		—			(81.3	)
Other comprehensive income		—		—		—		—		—			—			37.5			37.5
Shares issued under employee plans		—		—		0.2		—		—			—			—			—
Shares purchased under employee plans and other		—		—		—		—		(2.0	)		—			—			(2.0	)
Stock-based compensation		—		—		—		—		4.3			—			—			4.3
Equity-based award modification		—		—		—		—		(10.2	)		—			—			(10.2	)
Dividends on preferred stock		—		—		—		—		(7.6	)		—			—			(7.6	)
Balance at September 7, 2021		3.1	$	129.4		50.9	$	0.5	$	2,654.8		$	(2,912.9	)	$	(122.2	)	$	(250.4	)
Predecessor
Balance at December 31, 2019		3.1	$	129.4		50.4	$	0.5	$	2,676.2		$	(2,776.0	)	$	(170.1	)	$	(140.0	)
Net loss		—		—		—		—		—			(50.0	)		—			(50.0	)
Other comprehensive loss		—		—		—		—		—			—			(9.8	)		(9.8	)
Shares issued under employee plans		—		—		0.3		—		—			—			—			—
Shares purchased under employee plans and other		—		—		—		—		(1.1	)		—			—			(1.1	)
Stock-based compensation		—		—		—		—		4.2			—			—			4.2
Dividends on preferred stock		—		—		—		—		(7.8	)		—			—			(7.8	)
Balance at September 30, 2020		3.1	$	129.4		50.7	$	0.5	$	2,671.5		$	(2,826.0	)	$	(179.9	)	$	(204.5	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions, except share amounts)

(Unaudited)

	Successor			Predecessor
	September 30, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	5.4		$	12.2
Receivables, less allowances of $0.9 and $23.0		337.5			369.6
Inventory, materials and supplies		61.5			35.5
Prepaid expenses		37.7			33.5
Other current assets		7.1			8.3
Total current assets		449.2			459.1
Property, plant and equipment, net		1,956.9			1,729.1
Operating lease right-of-use assets		41.4			37.4
Goodwill		646.3			161.5
Intangible assets, net		961.2			148.1
Deferred income tax assets		6.9			82.5
Other noncurrent assets		28.5			50.9
Total assets	$	4,090.4		$	2,668.6
Liabilities and Shareowners’ Equity (Deficit)
Current liabilities
Current portion of long-term debt	$	13.0		$	21.8
Accounts payable		319.9			299.2
Unearned revenue and customer deposits		56.3			68.9
Accrued taxes		25.3			28.1
Accrued interest		24.9			26.7
Accrued payroll and benefits		36.3			50.5
Other current liabilities		38.9			50.9
Total current liabilities		514.6			546.1
Long-term debt, less current portion		1,382.9			1,949.9
Operating lease liabilities		38.0			33.6
Pension and postretirement benefit obligations		149.6			200.2
Pole license agreement obligation		46.7			36.7
Deferred income tax liability		147.7			10.9
Other noncurrent liabilities		101.0			82.3
Total liabilities		2,380.5			2,859.7
Shareowners’ equity (deficit)
Preferred stock, 2,357,299 shares authorized, 155,250 shares (3,105,000,depository shares) of 6 3/4% Cumulative Convertible Preferred Stock issued and outstanding at  December 31, 2020; liquidation preference $1,000 per share ($50 per depositary share)		—			129.4
Common shares, $.01 par value; 96,000,000 shares authorized; 500,000 and 50,680,605 shares issued and outstanding at September 30, 2021 and December 31, 2020		—			0.5
Additional paid-in capital		1,716.1			2,670.3
Accumulated deficit		(5.0	)		(2,831.6	)
Accumulated other comprehensive loss		(1.2	)		(159.7	)
Total shareowners’ equity (deficit)		1,709.9			(191.1	)
Total liabilities and shareowners’ equity (deficit)	$	4,090.4		$	2,668.6

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

(Unaudited)

	Successor			Predecessor			Predecessor
	September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Cash flows from operating activities
Net loss	$	(5.0	)	$	(81.3	)	$	(50.0	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		30.2			194.9			220.8
Loss on extinguishment of debt		—			10.7			—
Provision for loss on receivables		0.9			2.1			11.6
Noncash portion of interest (income) expense		(0.3	)		4.0			4.1
Deferred income taxes		(1.1	)		(21.1	)		(26.4	)
Pension and other postretirement payments (in excess of) less than expense		(1.9	)		(0.2	)		0.3
Stock-based compensation		—			4.3			4.2
Other, net		(0.3	)		(5.2	)		(0.7	)
Changes in operating assets and liabilities:
(Increase) decrease in receivables		(20.3	)		51.1			14.8
(Increase) decrease in inventory, materials, supplies, prepaid expenses and other current assets		(3.2	)		(29.4	)		12.2
(Decrease) increase in accounts payable		(51.7	)		49.1			(56.6	)
(Decrease) increase in accrued and other current liabilities		(37.5	)		2.8			(12.2	)
(Increase) decrease in other noncurrent assets		(2.1	)		2.1			9.9
Increase in other noncurrent liabilities		29.9			8.8			6.9
Net cash (used in) provided by operating activities		(62.4	)		192.7			138.9
Cash flows from investing activities
Capital expenditures		(35.4	)		(165.2	)		(159.2	)
Acquisition of business		(1,620.7	)		—			—
Acquisition of Paniolo fiber assets		(1.3	)		(50.5	)		—
Proceeds from sale of assets		—			9.1			—
Other, net		—			(0.1	)		(1.6	)
Net cash used in investing activities		(1,657.4	)		(206.7	)		(160.8	)
Cash flows from financing activities
Capital contributions by Red Fiber Parent LLC		1,716.1			—			—
Proceeds from issuance of long-term debt		150.0			23.0			—
Net (decrease) increase in corporate credit and receivables facilities with initial maturities less than 90 days		(108.7	)		9.0			48.0
Repayment of debt		(1.4	)		(13.4	)		(19.3	)
Debt issuance costs		(42.0	)		(0.8	)		(0.5	)
Dividends paid on preferred stock		—			(7.8	)		(7.8	)
Other, net		—			(2.0	)		(1.1	)
Net cash provided by financing activities		1,714.0			8.0			19.3
Effect of exchange rate changes on cash, cash equivalents and restricted cash		—			—			(0.2	)
Net decrease in cash, cash equivalents and restricted cash		(5.8	)		(6.0	)		(2.8	)
Cash, cash equivalents and restricted cash at beginning of period		11.2			17.2			11.6
Cash, cash equivalents and restricted cash at end of period	$	5.4		$	11.2		$	8.8
Noncash investing and financing transactions:
Acquisition of property by assuming debt and other noncurrent liabilities	$	3.8		$	3.8		$	4.0
Acquisition of property on account	$	46.3		$	54.9		$	23.7

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.    Description of Business and Accounting Policies

Organization — On March 13, 2020, the Company (as defined below), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Red Fiber Parent LLC, a Delaware limited liability company (“Parent”), and RF Merger Sub Inc., an Ohio corporation and directly wholly owned subsidiary of Parent (“Merger Sub”). On September 7, 2021 (the “Closing Date” or “Merger Date”), upon the terms and subject to the conditions set forth in the Merger Agreement, and in accordance with the applicable provisions of the Ohio General Corporation Law (the “OGCL”), Merger Sub merged with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). At the effective time of the Merger (the “Effective Time”), the separate corporate existence of Merger Sub ceased, and the Company survived the Merger as a wholly owned private subsidiary of Parent.  As of the date of this filing, the Company has ceased to be a registrant (see Note 11), however due to contractual language in certain indentures, the Company is required to voluntarily file with the U.S. Securities and Exchange Commission (“SEC”).

As a result of the Merger, for accounting purposes, Parent is the acquirer and Cincinnati Bell Inc. is the acquiree and accounting predecessor. The financial statement presentation includes the financial statements of historical Cincinnati Bell Inc. as “Predecessor” for periods prior to the Closing Date and of the Company as “Successor” for the periods after the Closing Date. In connection with the Merger and the related accounting determination, the Company has elected to apply push-down accounting and reflect in its financial statements the fair value of its assets and liabilities. The Consolidated Financial Statements and footnotes include a black line division between the columns titled "Predecessor" and "Successor" to signify that the amounts shown for the periods prior to and following the Merger are not comparable. The Company has elected to record all expenses that were contingent on the closing of the Merger in the Predecessor period. See Note 2 for additional information on the Merger.

Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide diversified telecommunications and technology services. For ease of reference, the terms “Cincinnati Bell,” “we,” “our Company,” “the Company,” “us,” or “our” as used in this report refer to both the Predecessor and the Successor and their respective subsidiaries.

The Company generates a large portion of its revenue by serving customers in Cincinnati, Ohio, Dayton, Ohio and the islands of Hawaii. An economic downturn or natural disaster occurring in these, or a portion of these, limited operating territories could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas.

The Company has receivables with one customer, Verizon Communications Inc., which make up 15% and 20% of the outstanding accounts receivable balance at September 30, 2021 and December 31, 2020, respectively. Revenue derived from foreign operations was approximately 6% of consolidated revenue for the Successor period and each of the Predecessor periods included within the three and nine months ended September 30, 2021. Revenue derived from foreign operations was approximately 5% of consolidated revenue for the three and nine months ended September 30, 2020.

Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, other comprehensive income, financial position and cash flows for each period presented.

The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting.

The Company’s Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K.

Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”), “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions.

7

Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company’s accounting policies in the Successor Period are consistent with the accounting policies in the Predecessor Period.  

Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash consists of funds held in an escrow account associated with the acquisition of substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 2 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows:

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	5.4	$	12.2
Restricted cash included in Other noncurrent assets		—		5.0
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows	$	5.4	$	17.2

Restructuring Liability — As of September 30, 2021, restructuring liabilities have been established for employee separations. As of September 30, 2021 and December 31, 2020, $0.1 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets.

Income and Operating Taxes

Income taxes — In accordance with ASC 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of permanent items such as nondeductible transaction costs, portions of officers’ compensation, and meals and entertainment expenses that are not fully deductible for tax.

Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price.

Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the requisite service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, expected holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire.

8

In connection with the consummation of the Merger, certain previously granted stock-based awards vested on the Closing Date per the terms of the change of control clauses in each plan and were paid at the share purchase price of $15.50. As a result, the following awards vested and were paid on the date of acquisition: (i) time-based restricted stock units and performance-based stock units associated with the 2019 – 2021 long-term incentive plan granted under the 2017 Long-Term Incentive Plan; (ii) time-based restricted stock units granted to non-employee directors in 2020 under the 2017 Stock Plan for Non-Employee Directors; and (iii) time-based restricted stock units granted under the Hawaiian Telcom 2010 Equity Incentive Plan in the first quarter of 2018 which the Company assumed responsibility for the eventual payout upon the acquisition of Hawaiian Telcom. Due to the accelerated vesting and cash payment of these awards, the Company recorded additional compensation expense of $9.3 million to “Selling, general and administrative” expense in the Predecessor period on the Condensed Consolidated Statements of Operations. As of September 30, 2021, there are no outstanding awards granted under the 2017 Long-Term Incentive Plan, 2017 Stock Plan for Non-Employee Directors and Hawaiian Telcom 2010 Equity Incentive Plan.

The Company granted cash-settled awards of $10.5 million in 2020 that originally vested at the end of a three year period. In accordance with the terms of these awards, vesting and payment of the first 25% of the award was accelerated with the consummation of the Merger. The awards remain outstanding in the Successor period and will be paid out 25% at the six month anniversary of the Closing Date and 50% will be paid out on the 18 month anniversary of the Closing Date. The remaining unrecognized compensation expense for the cash-settled awards will be recognized ratably over the remaining 18 months of the award.  

Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period.

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. These amendments are effective as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740), and clarifies certain aspects of the current guidance to promote consistency among reporting entities, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. Most amendments within ASU 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted the standard effective January 1, 2021. The Company has evaluated the amendments that must be applied on a retrospective or modified retrospective basis and concluded that no adjustments are necessary. The Company has applied all other amendments on a prospective basis, and the changes did not have a material effect on its condensed consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.

2.    Mergers and Acquisitions

Acquisition by Red Fiber Parent LLC

On September 7, 2021, pursuant to the Merger Agreement and in accordance with the applicable provisions of the OGCL, Parent completed the acquisition of Cincinnati Bell in an all cash transaction valued at approximately $3.1 billion, including assumption of debt of $1,357.1 million. Upon the Effective Time, the separate existence of Merger Sub ceased and the Company survived the Merger as a wholly owned subsidiary of Parent.

9

Pursuant to the Merger Agreement, each of Cincinnati Bell’s issued and outstanding Common Shares was converted into the right to receive $15.50 per share in cash, without interest. Effective September 7, 2021, trading of the Company’s Common Shares was suspended on the New York Stock Exchange (“NYSE”) and the Common Shares were subsequently delisted from the NYSE. On September 22, 2021, the Company redeemed Depositary Shares simultaneously with the redemption of the 6 3/4% Preferred Shares, at a redemption price of $50 per Depositary Share (equivalent to $1,000 per 6 3/4% Preferred Share), and the Depositary Shares were subsequently delisted from the NYSE.

The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values, using primarily Level 3 inputs, as described in Note 8, as of the Merger Date. Transaction costs of the acquirer are not included as a component of consideration transferred but are accounted for as expenses in the period in which such costs are incurred, or, if related to the issuance of debt, capitalized as debt issuance costs. Acquisition-related transaction costs incurred as part of the Merger, primarily included advisory, legal and accounting fees.

The valuation of the assets acquired and liabilities assumed was based on estimated fair values at the Merger Date. The preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed reflect various preliminary fair value estimates and analyses, including preliminary work performed by third-party valuation specialists, which are subject to change within the measurement period as valuations are finalized. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is incomplete at September 30, 2021. The primary areas of the preliminary purchase price allocations that are not yet finalized relate to the fair values of property, plant and equipment, the valuation of intangible assets acquired, income and non-income based taxes and goodwill. The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired as of the Merger Date during the measurement period.  

Measurement period adjustments will be applied retrospectively to the Merger Date. However, given the circumstances of this acquisition which closed during the third quarter of 2021, as well as the size and complexity of the transaction, the entire purchase price allocation disclosed herein is considered provisional at this time and subject to adjustment to reflect new information obtained about factors and circumstances that existed as of the Closing Date that if known would have affected the measurement of the amounts recognized as of that date, while the measurement period remains open. We have not finalized the allocation of the purchase price as it requires extensive use of accounting estimates and valuation methodologies in the determination of such fair values. Any subsequent changes in the estimated fair values assumed upon the finalization of more detailed analysis within the measurement period will change the allocation of the purchase price and will be adjusted during the period in which the amounts are determined. The allocation of goodwill to our Entertainment and Communications reporting unit and IT Services and Hardware reporting unit is preliminary as of the date of this filing.

The purchase price for Cincinnati Bell Inc. consisted of the following:

(dollars in millions)
Cash consideration for Cincinnati Bell Inc. stock	$	807.3
Cash consideration for preferred stock		155.2
Cash consideration for debt repayment		658.2
Total purchase price	$	1,620.7

10

Based on fair value estimates, the purchase price has been allocated on a preliminary basis to individual assets acquired and liabilities assumed as follows:

(dollars in millions)	Cincinnati Bell Inc.
Assets acquired
Cash	$	11.2
Receivables		318.5
Inventory, materials and supplies		56.4
Prepaid expenses		5.6
Other current assets		40.5
Property, plant and equipment		1,950.7
Operating lease right-of-use assets		42.3
Goodwill		646.3
Intangible assets		969.6
Deferred tax assets		6.9
Other noncurrent assets		20.2
Total assets acquired		4,068.2
Liabilities assumed
Current portion of long-term debt		11.8
Accounts payable		381.1
Unearned revenue and customer deposits		51.2
Accrued taxes		24.6
Accrued interest		19.4
Accrued payroll and benefits		49.3
Other current liabilities		75.0
Long-term debt, less current portion		1,378.0
Operating lease liabilities		38.6
Pension and postretirement benefit obligations		151.6
Pole license agreement obligation		46.7
Deferred income tax liability		148.8
Other noncurrent liabilities		71.4
Total liabilities assumed		2,447.5
Net assets acquired	$	1,620.7

In connection with this acquisition, the Company recorded goodwill attributable to increased access to a diversified customer base, acquired workforce in the United States, Canada, United Kingdom and India with industry expertise and expected synergies. The goodwill related to this acquisition is not deductible for tax purposes.

The Company recorded definite-lived intangible assets related to the customer relationships, trade names and technology and an indefinite-lived intangible asset related to FCC licenses. The preliminary fair value of the most significant identified intangible assets, customer relationships and trade names, were valued using the multi-period excess earnings method and relief from royalty method, under the income approach. The Company applied judgment which involved the use of significant assumptions with respect to revenue growth rates, customer attrition rate, discount rate and terminal growth rate in relation to the customer relationships and royalty rates and discount rate in relation to the trade names. The preliminary fair values of the identifiable intangible assets acquired on the Merger Date were as follows:

(dollars in millions)	Fair Value		Useful Lives
Customer relationships	$	850.0	15 years
Trade names		108.0	3 to 10 years
Technology		5.0	7 years
FCC licenses and spectrum usage rights		6.6	Indefinite
Total identifiable intangible assets	$	969.6

11

Transaction costs were expensed as incurred and recorded to “Transaction and integration costs” on the Condensed Consolidated Statements of Operations. Cincinnati Bell Inc. incurred cumulative transaction costs associated with the Merger Agreement of $64.4 million recorded in the Predecessor periods, of which $54.6 million was recorded in the Predecessor period of 2021 and $8.7 million was recorded in the nine months ended September 30, 2020. No transaction costs related to the Merger were recorded in the Successor period. Transaction costs of $44.0 million that were paid on the Merger Date were recorded in the Predecessor period and included as an assumed liability. Additionally, $2.9 million of severance associated with a change of control clause in an employee’s contract was recorded in the Predecessor period and is expected to be paid in the fourth quarter of 2021. Transaction-related bonuses of $5.3 million were also recorded in the Predecessor period but due to timing of payroll, were paid prior to the Merger Date.

Additional expenses recorded in the Predecessor period include certain stock-based compensation awards that were accelerated upon the Merger Date, which resulted in a nonrecurring expense of $9.3 million that was recorded to SG&A, and Loss on Extinguishment of Debt of $10.7 million due to the repayment of the Corporate Credit Agreement at the Effective Time. Stock-based compensation was paid on the Merger Date and included in the cash consideration for Cincinnati Bell Inc. stock.

Subsequent to the Merger Date, the Company issued a new Credit Agreement and Term Loan due 2028 for which note issuance costs of $32.0 million were capitalized as a reduction to the outstanding debt balances and a Revolving Credit Facility due 2026 for which note issuance costs of $6.1 million were capitalized to “Other noncurrent assets” on the Condensed Consolidated Balance Sheets.

Prior to entering into the Merger Agreement, the Company previously entered into an Agreement and Plan of Merger, dated December 21, 2019, (as amended from time to time, the “Brookfield Merger Agreement”) with affiliates of the Brookfield Infrastructure Group (“Brookfield”), the infrastructure investment division of Brookfield Asset Management, which was subsequently amended. On March 13, 2020, the Company terminated the Brookfield Merger Agreement and entered into the Merger Agreement. In connection with the termination of the Brookfield Merger Agreement in the first quarter of 2020, the Company paid to an affiliate of Brookfield a termination fee of $24.8 million as required by the terms of the Brookfield Merger Agreement. The termination fee is recorded in “Transaction and integration costs” on the Condensed Consolidated Statements of Operations in the Predecessor period.

Acquisition of Paniolo Fiber Assets

On August 31, 2021, the Company acquired substantially all of the operating assets of Paniolo Cable Company, LLC (the “Paniolo Acquisition”), previously held by the bankruptcy estate of Paniolo, which include inter-island submarine and middle-mile terrestrial fiber infrastructure assets in Hawaii as well as central offices and landing stations for the submarine fiber. The Company accounted for the Paniolo Acquisition as an asset acquisition under ASC 805-10-55 “Business Combinations” because the assets acquired from Paniolo do not include an assembled workforce, and the gross value of the assets acquired meets the screen test in ASC 805-10-55-5A related to substantially all of the fair value being concentrated in a single asset or group of assets (i.e., the fiber infrastructure assets) and, thus, the assets are not considered a business. The acquisition of Paniolo’s assets augments the Company’s existing backbone network and increases the Company’s total submarine and terrestrial fiber footprint by more than 400 miles.  

The aggregate purchase price paid upon closing of the Paniolo Acquisition after transactional costs was $52.3 million, consisting of $29.3 million in cash and $23.0 million in committed purchase money financing. As of September 30, 2021 an insignificant amount of transaction costs are recorded in “Accounts Payable” on the Condensed Consolidated Balance Sheets. The assets are recorded as network equipment and buildings in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets. As of September 30, 2021, $0.5 million and $22.4 million of the committed purchase money financing was recorded in “Current portion of long-term debt” and “Long-term debt, less current portion,” respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2020, the Company funded $5.0 million to an escrow account to fund a portion of the purchase price and entered into an agreement with Paniolo to maintain the Paniolo network prior to the close of the acquisition. This escrow amount was classified as restricted cash and recorded in “Other noncurrent assets” on the Condensed Consolidated Balance Sheets as of December 31, 2020.

3.    Revenue

The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States ("SEA-US") trans-Pacific submarine cable system.

Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, typically have contracts with a duration of one to five years and automatically renew on a month-to-month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year. Contracts associated with the SEA-US cable system typically range from 15 to 25 years and payment is prepaid.

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The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with varied renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays for such good or service will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("Hawaiian Telcom"), the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts typically have a duration ranging from 15 to 25 years.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, or a series of distinct goods or services, and is the unit of account defined in ASC Topic 606. The transaction price identified in the contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contract modifications for changes to services provided are routine throughout the term of our contracts. In most instances, contract modifications are for the addition or reduction of services that are distinct, and price changes are based on the stand-alone selling price of the service and, as such, are accounted for on a prospective basis as a new contract.

Goods and services are sold individually, or a contract may include multiple goods or services. For contracts with multiple goods and services, the transaction price identified in the contract is allocated to each performance obligation using the stand-alone selling price of each distinct good or service in the contract.

Certain customers of the Company may receive cash-based rebates based on volume of sales, which are accounted for as variable consideration. Potential rebates are considered at contract inception in our estimate of transaction price based on the estimated projection of sales volume. Estimates are reassessed quarterly.

Performance obligations are satisfied either over time as services are performed or at a point in time. Substantially all of our service revenue is recognized over time. For services transferred over time, the Company has elected the practical expedient to recognize revenue based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are provided evenly over the month and are substantially the same over the life of the contract. As the Company has elected the practical expedients detailed at ASC 606-10-50-13, revenue for these unsatisfied performance obligations that will be billed in future periods has not been disclosed.

As of September 30, 2021, our estimated revenue, including a financing component, expected to be recognized in the future related to performance obligations associated with customer contracts that are unsatisfied (or partially unsatisfied) is $138.0 million. Approximately 75% of this revenue is related to a new IRU contract entered into in the Successor period to provide dedicated fiber routes for a period of 20 years. Certain IRU contracts extend for periods of up to 30 years and are invoiced at the beginning of the contract term. The revenue from such contracts is recognized over time as services are provided over the contract term. The expected revenue to be recognized for existing IRU contracts is as follows:

(dollars in millions)
Three months ended December 31, 2021	$	0.8
2022		4.0
2023		6.1
2024		7.9
2025		7.9
Thereafter		111.3

13

Entertainment and Communications

The Company has identified four distinct performance obligations in the Entertainment and Communications segment, namely Data, Voice, Video and Other. For each of the Data, Voice and Video services, service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement, the customer takes full control over the services as the service is delivered, and as such, Data, Voice and Video are identified to be a series of distinct services. Services provided by the Entertainment and Communications segment can be categorized into three main categories that include Consumer/SMB Fiber, Enterprise Fiber and Legacy, each of which may include one or more of the aforementioned performance obligations. Data services include high-speed internet access, digital subscriber lines, ethernet, routed network services, SONET (Synchronous Optical Network), dedicated internet access, wavelength, digital signal and IRU revenue. Voice services include traditional and fiber voice lines, switched access, digital trunking and consumer long distance calling. Video services are offered through our fiber network to residential and commercial customers based on various standard plans with the opportunity to add premium channels. To receive video services, customers are required to use the Company's set top boxes that are billed as part of the monthly recurring service. Set top boxes are not considered a separate performance obligation from video because the equipment is necessary for the service to operate and the customer has no alternative use for the equipment.

Services and products not included in Data, Voice or Video are included in Other revenue and are comprised of wire care, time and materials projects and advertising. Transfer of control of these services and products is evaluated on an individual project basis and can occur over time or at a point in time.

The Company uses multiple methods to determine stand-alone selling prices in the Entertainment and Communications segment. For Data, Video and Voice products in Consumer/SMB Fiber, market rate is the primary method used to determine stand-alone selling prices. For Data performance obligations under the Enterprise Fiber category, and Voice, Data and Other performance obligations under the Legacy category, stand-alone selling prices are determined based on a list price, discount off of list price, a tariff rate, a margin percentage range, or a minimum margin percentage.

IT Services and Hardware

The Company has identified four distinct performance obligations in the IT Services and Hardware segment. These performance obligations are Communications, Cloud, Consulting and Infrastructure Solutions. Communications services are monthly services that include data and VoIP services, tailored solutions that include converged IP communications of data, voice, video and mobility applications, enterprise long distance, MPLS (Multi-Protocol Label Switching) and conferencing services. Cloud services include storage, backup, disaster recovery, SLA-based monitoring and management, cloud computing and cloud consulting. Consulting services provide customers with IT staffing, consulting and emerging technology solutions. Infrastructure Solutions includes the sale of hardware and maintenance contracts as well as installation projects.

For the sale of hardware, the Company evaluated whether it is the principal or the agent. The Company has concluded it acts as an agent because it does not control the inventory before it is transferred to customers, it does not have the ability to direct the product to anyone besides the purchasing customer, and it does not integrate the hardware with any of its own goods or services. Based on this assessment, the performance obligation is to arrange a sale of hardware between the vendor and the customer. In the instance where there is an issue with the hardware, the Company coordinates with the manufacturer to facilitate a return in accordance with the standard manufacturer warranty. Hardware returns are not significant to the Company.

Within the IT Services and Hardware segment, stand-alone selling prices for the four performance obligations are determined based on either a margin percentage range, minimum margin percentage or discount from standard price list if it is determined to be representative of stand-alone selling price.

For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is either shipped or delivered in accordance with the terms of the contract. For certain projects within Communications and Consulting, revenue is recognized when the customer communicates acceptance of the services performed. For contracts with freight on board shipping terms, management has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, and, therefore, has not evaluated whether shipping and handling activities are promised services to its customers.

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Contract Balances 

The Company recognizes incremental fulfillment costs as an asset when installation expenses are incurred as part of performing the agreement for Voice, Video and Data product offerings in the Entertainment and Communications segment in which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We also recognize an asset for incremental fulfillment costs for certain Communications services in the IT Services and Hardware segment that require us to incur installation and provisioning expenses. The asset recognized for Communication services is amortized over the average contract life. Churn rates and average contract life are reviewed on an annual basis. Fulfillment costs are capitalized to “Other noncurrent assets.” The related amortization expense is recorded to “Cost of services and products.”

The Company recognizes an asset for the incremental costs of acquiring a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs related to Voice, Video, Data and certain Communications and Cloud services meet the requirements to be capitalized. The contract asset established for the costs of acquiring a contract is recorded to “Other noncurrent assets.” Sales incentives are amortized ratably over the period that services are delivered using either an average churn rate or average contract term, both representative of the expected period of benefit of the asset capitalized. Customer churn rates and average contract term assumptions are reviewed on an annual basis. The related amortization expense is recorded to “Selling, general and administrative.”

Management has elected to use the practical expedient detailed in ASC 340-40-25-4 to expense any costs to fulfill a contract and costs to obtain a contract as they are incurred when the amortization period would have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects and certain Cloud services. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Communications projects.

15

The following table presents the activity for the Company’s contract assets:

	Successor
	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of September 8, 2021 (remeasured upon Merger)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Additions		0.2			0.3			0.5			0.8			—			0.8			1.0			0.3			1.3
Amortization		—			—			—			—			—			—			—			—			—
Balance as of September 30, 2021	$	0.2		$	0.3		$	0.5		$	0.8		$	—		$	0.8		$	1.0		$	0.3		$	1.3
	Predecessor
	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of December 31, 2020	$	3.5		$	3.9		$	7.4		$	15.8		$	3.6		$	19.4		$	19.3		$	7.5		$	26.8
Additions		0.9			1.0			1.9			2.6			—			2.6			3.5			1.0			4.5
Amortization		(1.9	)		(0.7	)		(2.6	)		(2.7	)		(0.4	)		(3.1	)		(4.6	)		(1.1	)		(5.7	)
Balance as of March 31, 2021		2.5			4.2			6.7			15.7			3.2			18.9			18.2			7.4			25.6
Additions		0.9			0.8			1.7			2.6			0.2			2.8			3.5			1.0			4.5
Amortization		(1.9	)		(0.7	)		(2.6	)		(2.3	)		(0.3	)		(2.6	)		(4.2	)		(1.0	)		(5.2	)
Balance as of June 30, 2021		1.5			4.3			5.8			16.0			3.1			19.1			17.5			7.4			24.9
Additions		0.7			0.8			1.5			2.0			0.2			2.2			2.7			1.0			3.7
Amortization		(1.4	)		(0.5	)		(1.9	)		(1.7	)		(0.4	)		(2.1	)		(3.1	)		(0.9	)		(4.0	)
Balance as of September 7, 2021	$	0.8		$	4.6		$	5.4		$	16.3		$	2.9		$	19.2		$	17.1		$	7.5		$	24.6

Fulfillment costs and costs of acquisition were remeasured in the Successor period in accordance with ASC 805.

The Company recognizes a liability for cash received upfront for IRU contracts. At September 30, 2021 and December 31, 2020, $1.7 million and $1.6 million, respectively, of contract liabilities were included in "Other current liabilities." At September 30, 2021 and December 31, 2020, $58.1 million and $26.2 million, respectively, of contract liabilities were included in "Other noncurrent liabilities."

16

Disaggregated Revenue

The following table presents revenues disaggregated by product and service lines:

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Data	$	31.6		$	91.7		$	119.8		$	31.6		$	334.6		$	358.8
Video		12.2			35.3			48.1			12.2			131.8			145.1
Voice		15.8			46.8			65.5			15.8			177.3			197.6
Other		2.1			6.6			7.6			2.1			20.5			23.0
Total Entertainment and Communications		61.7			180.4			241.0			61.7			664.2			724.5
Consulting		21.6			56.5			49.4			21.6			193.6			138.5
Cloud		6.6			18.7			21.1			6.6			66.4			63.0
Communications		14.2			40.1			53.9			14.2			149.1			160.3
Infrastructure Solutions		9.6			23.4			30.8			9.6			83.3			82.7
Total IT Services and Hardware		52.0			138.7			155.2			52.0			492.4			444.5
Intersegment revenue		(2.3	)		(4.5	)		(6.7	)		(2.3	)		(17.9	)		(19.5	)
Total revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5

The following table presents revenues disaggregated by contract type:

	Successor
	September 8, 2021 to September 30, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	2.1	$	11.1	$	—		$	13.2
Products and Services transferred over time		58.0		40.2		—			98.2
Intersegment revenue		1.6		0.7		(2.3	)		—
Total revenue	$	61.7	$	52.0	$	(2.3	)	$	111.4
	Predecessor
	July 1, 2021 to September 7, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	4.1	$	25.1	$	—		$	29.2
Products and Services transferred over time		172.9		112.5		—			285.4
Intersegment revenue		3.4		1.1		(4.5	)		—
Total revenue	$	180.4	$	138.7	$	(4.5	)	$	314.6
	Predecessor
	Three Months Ended September 30, 2020
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	6.6	$	34.1	$	—		$	40.7
Products and Services transferred over time		229.5		119.3		—			348.8
Intersegment revenue		4.9		1.8		(6.7	)		—
Total revenue	$	241.0	$	155.2	$	(6.7	)	$	389.5

17

	Successor
	September 8, 2021 to September 30, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	2.1	$	11.1	$	—		$	13.2
Products and Services transferred over time		58.0		40.2		—			98.2
Intersegment revenue		1.6		0.7		(2.3	)		—
Total revenue	$	61.7	$	52.0	$	(2.3	)	$	111.4
	Predecessor
	January 1, 2021 to September 7, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	15.8	$	90.1	$	—		$	105.9
Products and Services transferred over time		635.3		397.5		—			1,032.8
Intersegment revenue		13.1		4.8		(17.9	)		—
Total revenue	$	664.2	$	492.4	$	(17.9	)	$	1,138.7
	Predecessor
	Nine Months Ended September 30, 2020
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	19.1	$	93.2	$	—		$	112.3
Products and Services transferred over time		690.6		346.6		—			1,037.2
Intersegment revenue		14.8		4.7		(19.5	)		—
Total revenue	$	724.5	$	444.5	$	(19.5	)	$	1,149.5

4.    Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020			Depreciable Lives (Years)
Land and rights-of-way	$	132.3		$	115.7		20 – Indefinite
Buildings and leasehold improvements		184.8			323.8		5 – 40
Network equipment		1,498.6			4,180.0		2 – 50
Office software, furniture, fixtures and vehicles		89.6			243.7		2 – 14
Construction in process		73.4			60.4		n/a
Gross value		1,978.7			4,923.6
Accumulated depreciation		(21.8	)		(3,194.5	)
Property, plant and equipment, net	$	1,956.9		$	1,729.1

18

In connection with the Merger, a fair value step-up of $162.1 million was recorded to property, plant and equipment (“PP&E”). The estimated fair value of the PP&E was determined using Level 3 inputs within the fair value hierarchy, as described in Note 8. A combination of cost and market approaches were used to estimate the fair values of the PP&E as of the Merger Date. The depreciable lives of property, plant and equipment remained consistent in the Successor period as compared to the Predecessor period. See Note 2 for additional information regarding the Merger.

Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $21.8 million in the Successor period and $49.4 million and $185.0 million, respectively, in the Predecessor periods included within the three and nine months ended September 30, 2021. Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $68.3 million and $210.0 million, respectively, for the three and nine months ended September 30, 2020.

No asset impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.

5.    Goodwill and Intangible Assets

Goodwill

The changes in the Company's goodwill consisted of the following:

	Successor
(dollars in millions)	IT Services and Hardware		Entertainment and Communications		Total Company
Goodwill, balance as of September 8, 2021 (remeasured upon Merger)	$	—	$	—	$	—
Activity during the year:
Merger		157.4		488.9		646.3
Goodwill, balance as of September 30, 2021	$	157.4	$	488.9	$	646.3
	Predecessor
(dollars in millions)	IT Services and Hardware		Entertainment and Communications		Total Company
Goodwill, balance as of December 31, 2020	$	149.1	$	12.4	$	161.5
Activity during the year:
Currency translations		0.7		—		0.7
Goodwill, balance as of September 7, 2021	$	149.8	$	12.4	$	162.2

As mentioned in Note 2, in connection with the Merger, the Company’s assets and liabilities were measured at fair value as of the date of the Merger.  The allocation of goodwill to our Entertainment and Communications reporting unit and IT Services and Hardware reporting unit is preliminary as of the date of this filing.

No impairment losses were recognized in goodwill for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.

19

Intangible Assets

The Company’s intangible assets consisted of the following:

	Successor							Predecessor
	September 30, 2021							December 31, 2020
	Gross Carrying		Accumulated			Net		Gross Carrying		Accumulated			Net
(dollars in millions)	Amount		Amortization			Amount		Amount		Amortization			Amount
Intangible assets subject to amortization
Customer relationships	$	850.0	$	(7.1	)	$	842.9	$	141.6	$	(38.9	)	$	102.7
Trade names		108.0		(1.2	)		106.8		41.7		(9.4	)		32.3
Technology		5.0		(0.1	)		4.9		9.9		(3.2	)		6.7
Total		963.0		(8.4	)		954.6		193.2		(51.5	)		141.7
Intangible assets not subject to amortization
FCC licenses and spectrum usage rights		6.6		—			6.6		6.4		—			6.4
Total intangible assets	$	969.6	$	(8.4	)	$	961.2	$	199.6	$	(51.5	)	$	148.1

In connection with the Merger, the company recorded $969.6 million of intangible assets, as shown in the table above, representing the fair values at the Merger Date. See Note 2 for additional information regarding the Merger. They are amortized over their useful lives based on a number of assumptions including the estimated period of economic benefit and utilization.

In the Successor period, amortization expense for finite-lived intangible assets was $8.4 million. In the Predecessor periods included within the three and nine months ended September 30, 2021, amortization expense for finite-lived intangible assets was $2.7 million and $9.9 million, respectively. In the three and nine months ended September 30, 2020, amortization expense for finite-lived intangible assets was $3.6 million and $10.8 million, respectively. No impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.

The estimated useful lives for each finite-lived intangible asset class are as follows:

	Successor	Predecessor
	September 30, 2021	December 31, 2020
Customer relationships	15 years	8 to 15 years
Trade names	3 to 10 years	10 to 15 years
Technology	7 years	10 years

The annual estimated amortization expense for future years is as follows:

(dollars in millions)
Three months ended December 31, 2021	$	33.0
2022		120.0
2023		112.9
2024		103.8
2025		92.1
Thereafter		492.8
Total	$	954.6

20

6.    Debt and Other Financing Arrangements

The Company’s debt consists of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020
Current portion of long-term debt:
Corporate Credit Agreement - Tranche B Term Loan due 2024	$	—		$	6.0
Credit Agreement - Term Loan due 2028		1.5			—
Paniolo Fiber Assets Financing Arrangement		0.5			—
Other financing arrangements		0.9			1.9
Finance lease liabilities		10.1			13.9
Current portion of long-term debt		13.0			21.8
Long-term debt, less current portion:
Receivables Facility		75.1			182.0
Corporate Credit Agreement - Revolving Credit Facility		—			67.0
Credit Agreement - Revolving Credit Facility due 2026		—			—
Credit Agreement - Tranche B Term Loan due 2024		—			580.5
Credit Agreement - Term Loan due 2028		148.5			—
7 1/4% Senior Notes due 2023 (1)		24.3			22.3
7% Senior Notes due 2024 (1)		637.2			625.0
8% Senior Notes due 2025 (1)		365.5			350.0
Various Cincinnati Bell Telephone notes (1)		97.8			87.9
Paniolo Fiber Assets Financing Arrangement		22.4			—
Other financing arrangements		0.5			0.9
Finance lease liabilities		47.1			52.1
		1,418.4			1,967.7
Net unamortized premium (2)		—			1.1
Unamortized note issuance costs (3)		(35.5	)		(18.9	)
Long-term debt, less current portion		1,382.9			1,949.9
Total debt	$	1,395.9		$	1,971.7

(1) As of September 30, 2021, the net carrying amounts of the 7 ¼% Senior Notes due 2023, 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments related to the Merger of $2.0 million, $12.2 million, $15.5 million and $9.9 million, respectively. Each adjustment is being amortized over the life of the respective notes and is recorded as a reduction of interest expense.  

(2) Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period.  

(3) Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below.

The estimated fair value of the Company’s borrowings, was determined using Level 2 inputs within the fair value hierarchy, as described in Note 8. Based on closing or estimated market prices of the Company’s debt, a fair-value step-up of $39.6 million was recorded as of the Merger Date.

Consent Solicitation for 7.000% Senior Notes due 2024 and 8.000% Senior Notes due 2025

On July 2, 2020, the Company announced the successful completion of the consent solicitations with respect to certain proposed amendments to the change of control provisions contained in the (i) indenture, dated as of September 22, 2016 (as supplemented and amended, the “2024 Notes Indenture”) governing its 7.000% Senior Notes due 2024 (the “2024 Notes”) and (ii) indenture, dated as of October 6, 2017 (as supplemented and amended, the “2025 Notes Indenture,” and together with the 2024 Notes Indenture, the “Indentures”) governing its 8.000% Senior Notes due 2025 (the “2025 Notes,” and together with the 2024 Notes, the “Notes”).  

On July 2, 2020, the Company, certain of the Company’s subsidiaries, as guarantors, and Regions Bank, as trustee, entered into supplemental indentures to the Indentures to effectuate the amendments, which became operative substantially concurrently with the consummation of the Merger on September 7, 2021, when the Company paid the consent fees that totaled $3.9 million to the holders of the Notes.  These fees were capitalized as a reduction to the outstanding debt balances as of the Merger Date.

21

Credit Agreement (effective 2021)

In connection with the Merger Agreement, at the Effective Time (the date on which the Effective Time occurred, the “Closing Date”) the Company entered into a new Credit Agreement (the "Credit Agreement") and terminated the existing Corporate Credit Agreement. The Credit Agreement provides for (i) a five-year $275 million senior secured revolving credit facility, including both a letter of credit subfacility of up to $40 million and a swingline loan subfacility of up to $10 million (the “Revolving Credit Facility due 2026”) and (ii) a seven-year $150 million senior secured term loan facility (the “Term Loan due 2028”). The Revolving Credit Facility due 2026 expires in September 2026, and the Term Loan due 2028 expires in September 2028. Borrowings under the Term Loan due 2028 were used in part to finance a portion of the fees and expenses relating to the acquisition of the Company and the establishment of the Credit Agreement, to refinance existing company indebtedness, and for working capital and general corporate purposes. Borrowings under the Revolving Credit Facility due 2026 may be used to provide ongoing working capital as well as for other general corporate purposes of the Company.  

Borrowings under the Term Loan due 2028 will bear interest, initially, at a rate equal to, at the Company’s option, either:

• a base rate determined by reference to the highest of (i) the Federal Funds Rate (determined for any day as the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus 1/2 of 1%, (ii) the rate of interest in effect for such day as publicly announced from time to time by Goldman Sachs as its “prime rate” in effect at its principal office in New York City and notified to the Company, and (iii) to the extent ascertainable, the one month Eurocurrency rate plus 1.00%, plus, in any such case, 3.25%; or

• a Eurocurrency rate determined by reference to the London interbank offered rate for dollars for the relevant interest period, adjusted for statutory reserve requirements, plus 4.25%.

From and after the delivery by the Company to the administrative agent for the Credit Agreement of financial statements for the first fiscal quarter ended after the Closing Date, the applicable margin over the base rate or Eurocurrency rate for the Term Loan due 2028 will be in the range of (x) 3.75% and 4.75% (for Eurocurrency loans) and (y) 2.75% and 3.75% (for base rate loans) based on a pricing grid as determined by reference to the applicable Secured Net Leverage Ratio (as defined in the Credit Agreement) for the most recent four fiscal quarter period for which financial statements have been delivered.

The Company incurred deferred financing costs of $32.0 million related to the issuance of the Term Loan due 2028 and capitalized as a reduction to the outstanding debt balances as of the Merger Date. 

Borrowings under the Revolving Credit Facility due 2026 will bear interest, initially, at a rate equal to, at the Company’s option, either:

• a base rate determined by reference to the highest of (i) the Federal Funds Rate (determined for any day as the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus 1/2 of 1%, (ii) the rate of interest in effect for such day as publicly announced from time to time by Goldman Sachs as its “prime rate” in effect at its principal office in New York City and notified to the Company, and (iii) to the extent ascertainable, the one month Eurocurrency rate plus 1.00%, plus, in any such case, 3.25%; or

• a Eurocurrency rate determined by reference to the London interbank offered rate for dollars for the relevant interest period, adjusted for statutory reserve requirements, plus 4.25%.

From and after the delivery by the Company to the administrative agent for the Credit Agreement of financial statements for the first fiscal quarter ended after the Closing Date, the applicable margin over the base rate or Eurocurrency rate for the Revolving Credit Facility due 2026 will be in the range of (x) 3.75% and 4.25% (for Eurocurrency loans) and (y) 2.75% and 3.25% (for base rate loans) based on a pricing grid as determined by reference to the applicable Secured Net Leverage Ratio for the most recent four fiscal quarter period for which financial statements have been delivered.

The base rate and Eurodollar rate for the Term Loan due 2028 and the Revolving Credit Facility due 2026 (collectively, the “Facilities”) are subject to a 0.00% floor.

In addition, the Company will be required to pay a commitment fee on any unused portion of the Revolving Credit Facility due 2026 at a rate of 0.50% per annum, or, if the Secured Net Leverage Ratio for the most recent four fiscal quarter period for which financial statements have been delivered is equal to or less than 3.25 to 1.00, 0.375% per annum. The Company will also pay customary letter of credit fees, including a fronting fee equal to 0.125% per annum of the dollar equivalent of the maximum amount available to be drawn under all outstanding letters of credit, as well as customary issuance and administration fees. At September 30, 2021, there were no borrowings under the Revolving Credit Facility due 2026, leaving $275.0 million available.

22

One of the syndicated lenders in the Credit Agreement is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company’s average outstanding loan balance. The Company will recognize the patronage, generally as declared, in “Other (income) expense, net.” The stock component will be recognized at its stated cost basis.

The Company may voluntarily repay and reborrow outstanding loans under the Revolving Credit Facility due 2026 at any time without a premium or a penalty, other than customary “breakage” costs with respect to LIBOR revolving loans.

In addition, certain of our variable rate debt, including debt under the Credit Agreement and the Receivables Facility, uses LIBOR as one of the benchmarks for establishing the rate of interest and may be hedged with LIBOR-based interest rate derivatives. LIBOR is the subject of recent regulatory guidance and proposals for reform. These reforms and other pressures may cause LIBOR to be replaced with a new benchmark in the future or to perform differently than in the past. The consequences of these developments cannot be entirely predicted, but could include an increase in the cost of our variable rate indebtedness.

The Company incurred deferred financing costs of $6.1 million related to the issuance of the Revolving Credit Facility due 2026 and capitalized to “Other noncurrent assets” on the Condensed Consolidated Balance Sheets as of the Merger Date. 

In November 2021, the Company entered into an Amendment (the “Amendment No. 1”) to its current Credit Agreement to provide for, among other things, (i) a $125 million upsize to the Revolving Credit Facility, increasing the Revolving Credit Facility to $400 million, (ii) a $350 million incremental increase to its existing Term Loan (the “Incremental Term Loan Increase”), increasing the total existing Term Loan facility to $500 million and (iii) the incurrence of a new tranche of $650 million senior secured term loans (the “Term B-2 Loans”). The proceeds of the Incremental Term Loan Increase and the Term B-2 Loans were deposited into an escrow account and will be used by the Company to satisfy, discharge and redeem in full all of the Company’s existing (x) 7.000% Senior Notes due 2024 (the “2024 Notes”) and (y) 8.000% Senior Notes due 2025 (the “2025 Notes”), and to pay fees and expenses in connection with the redemption of the 2024 Notes and the 2025 Notes. The Term B-2 Loans mature in November 2028. The Amendment No. 1 also extended the maturity of the Term Loans (including the Incremental Term Loan Increase) to November 2028 and reduced the interest applicable to the Term Loans and the Revolving Credit Facility.

Guarantors and Security Interests, Credit Agreement

All obligations under the Facilities are unconditionally guaranteed by the direct parent of the Company and each of the existing and future direct and indirect material, wholly-owned domestic subsidiaries of the Company, subject to certain exceptions (including for Cincinnati Bell Funding LLC, Cincinnati Bell Funding Canada Ltd. (and any other similar special purpose receivables financing subsidiary), the Company's joint ventures, subsidiaries prohibited by applicable law or contractual obligation from becoming guarantors, immaterial subsidiaries, unrestricted subsidiaries, foreign subsidiaries, and other customary exceptions as more fully described in the Credit Agreement.  Obligations outstanding under the Credit Agreement are secured by perfected first priority pledges of and security interests in (i) the equity interests of the Company held by its direct parent and (ii) substantially all of the assets of the Company and each subsidiary guarantor (subject to customary exceptions as more fully described in the Credit Agreement), including equity interests of each subsidiary guarantor under the Credit Agreement.

Corporate Credit Agreement (effective 2017)

In connection with the Merger Agreement, at the Effective Time, the outstanding loans under the Corporate Credit Agreement, dated as of October 2, 2017, were paid in full together with accrued interest and unpaid fees. As a result of the Company terminating the Corporate Credit Agreement, certain previously deferred costs and unamortized discount associated with the Corporate Credit Agreement’s Revolving Credit Facility and Tranche B Term Loan due 2024 were written off in the Predecessor period. The loss on extinguishment of debt associated with the transaction was $10.7 million.

Paniolo Fiber Assets Financing

In connection with the Paniolo Acquisition in the third quarter of 2021, the Company’s wholly-owned subsidiary, Hawaiian Telcom Inc. (“HTI”), entered into a purchase money financing agreement to finance a portion of the Paniolo Acquisition. The Paniolo fiber assets financing arrangement provides for a five-year $23.0 million loan secured by the Paniolo assets acquired in the transaction. Borrowings under the Paniolo fiber assets financing arrangement bear interest at a rate per annum equal to LIBOR plus 3.0%. The Company guarantees HTI’s borrowings under the Paniolo fiber assets financing arrangement.

23

Accounts Receivable Securitization Facility

As of September 30, 2021, the Company had $75.1 million in borrowings and $14.8 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $125.1 million remaining availability on the total borrowing capacity of $215.0 million. In the second quarter of 2021, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit availability and renew the facility. The amendments extended the facility’s renewal date until June 2023 and the facility’s termination date to June 2024. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was increased from $200.0 million to $215.0 million in the aggregate. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. In addition, the amendments removed the provision that the LIBOR rate for the Receivables Facility may not fall below 0.75%.

Under the Receivables Facility, certain U.S. and Canadian subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”) or Cincinnati Bell Funding Canada Ltd. ("CBFC"), wholly-owned consolidated subsidiaries of the Company. Although CBF and CBFC are wholly-owned consolidated subsidiaries of the Company, CBF and CBFC are legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF or CBFC, such accounts receivable are legally assets of CBF and CBFC and, as such, are not available to creditors of other subsidiaries or the parent company. The Receivables Facility includes an option for CBF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of September 30, 2021, the outstanding balance of certain accounts receivable sold, rather than borrowed against, was $3.9 million.

7.    Leases

Lessee Disclosures

The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers and fleet vehicles. Upon adoption of ASC 842, the Company elected not to recognize leases with terms of one-year or less on the balance sheet.

Supplemental balance sheet information related to the Company's leases is as follows:

		Successor		Predecessor
(dollars in millions)	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating lease assets, net of amortization	Operating lease right-of-use assets	$	41.4	$	37.4
Finance lease assets, net of amortization	Property, plant and equipment, net		15.4		28.0
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities		8.8		9.6
Noncurrent operating lease liabilities	Operating lease liabilities		38.0		33.6
Total operating lease liabilities			46.8		43.2
Finance lease liabilities:
Current finance lease liabilities	Current portion of long-term debt		10.1		13.9
Noncurrent finance lease liabilities	Long-term debt, less current portion		47.1		52.1
Total finance lease liabilities		$	57.2	$	66.0

.

Supplemental cash flow information related to leases is as follows:

	Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	0.3	$	2.9	$	3.3
Operating cash flows from operating leases	$	0.8	$	7.2	$	9.5
Financing cash flows from finance leases	$	1.2	$	9.9	$	13.9
Right-of-use assets obtained in exchange for lease obligations:
New operating leases	$	—	$	11.5	$	6.8
New finance leases	$	—	$	3.8	$	4.0

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Sale-Leaseback Disclosures

On August 31, 2021, the Company simultaneously exercised its bargain purchase option on real property located in Cincinnati, Ohio, previously classified as a finance lease, and sold it to a third party for $9.1 million. Net proceeds from the transactions were approximately $6.6 million after transactional costs. Concurrently with the sale, the Company entered into an operating lease arrangement with the third party purchaser of the property for a portion of the building to maintain use of the location as an office space. The transaction qualified for sale-leaseback accounting in accordance with ASC 842, and the Company recognized a gain on the sale of $2.8 million in August, 2021. The Company recorded an operating lease right-of-use asset and liability of $7.7 million related to the leaseback agreement on September 1, 2021.

8.    Financial Instruments and Fair Value Measurements

Fair Value Measurements

The Company defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. To increase consistency and comparability in fair value measurements, the Company uses a three-level hierarchy that prioritizes the use of observable inputs. The three levels are:

Level 1 — Quoted market prices for identical instruments in an active market;

Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and

Level 3 — Unobservable inputs that reflect management's determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data.

The determination of where an asset or liability falls in the hierarchy requires significant judgment.

Interest Rate Swaps

The Company uses interest rate swap agreements to minimize its exposure to interest rate fluctuations on variable rate debt borrowings. Interest rate swaps involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the underlying notional amounts between parties.

In the second quarter of 2018, the Company entered into one forward starting non-amortizing interest rate swap with a notional amount of $300.0 million to convert variable rate debt to fixed rate debt. The interest rate swap became effective in June 2018 with an expiration date in June 2023. The interest rate swap resulted in interest payments based on an average fixed rate of 2.938% plus the applicable margin per the requirements in the Corporate Credit Agreement.

In the first quarter of 2019, the Company entered into three forward starting non-amortizing interest rate swaps, with a notional amount of $89.0 million each, to convert variable rate debt to fixed rate debt. The interest rate swaps became effective in March 2019 with expiration dates in March 2024. The interest rate swaps resulted in interest payments based on an average fixed rate per swap of 2.275%, 2.244% and 2.328% plus the applicable margin per the requirements in the Corporate Credit Agreement.

Upon inception, the interest rate swaps were designated as cash flow hedges under ASC 815, with gains and losses, net of tax, measured on an ongoing basis recorded in accumulated other comprehensive loss. The fair value of the interest rate swaps was categorized as Level 2 in the fair value hierarchy as they were based on well-recognized financial principles and available market data.

The Company terminated four interest rate swaps in the Predecessor period in connection with the repayment in full of the Term Loan B under the Corporate Credit Agreement that occurred as part of the Merger Agreement. As a result of the repayment, the hedged interest payments were no longer considered probable of occurring and a loss on termination of $20.1 million that had been previously recorded to Accumulated Other Comprehensive Income ("AOCI") was recorded in the Predecessor period in “Other (income) expense, net” on the Condensed Consolidated Statements of Operations. Cash payments resulting from the termination of the interest rate swaps are classified as operating activities in the Company’s Condensed Consolidated Statement of Cash Flows.

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As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows:

		Predecessor
(dollars in millions)	Balance Sheet Location	December 31, 2020		Quoted Prices in active markets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Liabilities:
Interest Rate Swap	Other current liabilities	$	9.3	$	—	$	9.3	$	—
Interest Rate Swap	Other noncurrent liabilities	$	16.1	$	—	$	16.1	$	—

The amount of gains (losses) recognized in AOCI (effective portion) net of reclassifications into earnings is as follows:

	Successor		Predecessor		Predecessor		Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Interest Rate Swap	$	—	$	—	$	1.7	$	—	$	5.3	$	(8.6	)

The amount of losses reclassified from AOCI into earnings is as follows:

		Successor		Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	Statement of Operations Location	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Interest Rate Swap	Other (income) expense, net	$	—	$	(20.1	)	$	—		$	—	$	(20.1	)	$	—
Interest Rate Swap	Interest expense	$	—	$	(0.8	)	$	(2.3	)	$	—	$	(5.4	)	$	(6.0	)

Disclosure on Financial Instruments

The carrying values of the Company's financial instruments approximate the estimated fair values as of September 30, 2021 and December 31, 2020, except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows:  

	Successor				Predecessor
	September 30, 2021				December 31, 2020
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion*	$	1,372.8	$	1,370.5	$	1,921.8	$	1,973.4
Other financing arrangements		53.8		53.8		42.1		58.6

*Excludes finance leases, other financing arrangements and note issuance costs.

In connection with the Merger, the Successor period carrying values of the Company’s long-term debt and other financing arrangements include fair value adjustments as of the Merger Date. The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at September 30, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. As of September 30, 2021, the current borrowing rate was estimated by applying the Company's credit spread to the risk-free rate for a similar duration borrowing.

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9.    Pension and Postretirement Plans

As of September 30, 2021, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Cincinnati (collectively the "Cincinnati Plans"), and one noncontributory defined benefit plan for union employees, one cash balance pension plan for nonunion employees, and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively the "Hawaii Plans").

In connection with the Merger, the Company remeasured the pension and postretirement projected benefit obligations as of the Merger Date. As a result, the Company's pension and postretirement benefit obligations decreased $22.3 million and $4.3 million, respectively. The decrease in the benefit obligations is primarily driven by changes in the discount rate as well as gains to record pension assets to fair value. Additionally, actuarial gains (losses) and prior service costs (benefits) recorded in "Accumulated other comprehensive loss" of $101.6 million were remeasured as of the Merger Date.

In the periods July 1, 2021 to September 7, 2021 and January 1, 2021 to September 7, 2021, the Hawaii defined benefit plan for union employees made lump sum payments of $0.8 million and $7.4 million, respectively, resulting in a reduction of the benefit obligation of $7.4 million. The lump sum payments to the plan participants exceeded the sum of the service cost and the interest cost component of the net pension cost resulting in a nominal pension settlement cost for the period January 1, 2021 to September 7, 2021. In the three and nine months ended September 30, 2020, the Hawaii defined benefit plans made lump sum payments of $3.4 million and $10.8 million, respectively, resulting in a reduction of the benefit obligation of $10.8 million. The Company recorded a pension settlement cost of $1.1 million in the nine months ended September 30, 2020 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost.

In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for all periods presented.

Unrecognized actuarial net gains and losses for the Cincinnati Plans and the Hawaii Plans are primarily generated by differences between assumed and actual rates of return on invested assets, changes in discount rates and healthcare costs. Because gains and losses reflect refinements in estimates, as well as real changes in economic values, and because some gains in one period may be offset by losses in another or vice versa, we are not required to recognize these gains and losses in the periods that they occur. Instead, if the gains and losses exceed a 10% corridor defined in the accounting literature, the excess is amortized over a defined term. In conjunction with remeasuring the pension and postretirement benefit obligations, the amortization period for the Cincinnati pension plans in the Successor period was updated to amortize the excess over the average remaining life expectancy of plan participants from the average future working lifetime which was utilized in the Predecessor period. This change is not expected to have an impact in the 2021 Successor period as gains or losses will not be generated until December 31, the next measurement date. Additionally in the Successor period, the market-related value of assets is equal to the fair market value.  Previously, the market-related value of assets was determined using a five-year moving market average method. Except for these changes described related to the Cincinnati pension plans, no other changes to methodology were made in the Successor period as a result of the Merger.

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Pension and postretirement costs (benefits) are as follows:

	Pension Benefits									Postretirement and Other Benefits
	Successor			Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020
Service cost	$	—		$	—		$	—		$	—	$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		0.9			2.7			4.6			0.1		0.5			0.9
Expected return on plan assets		(2.1	)		(5.2	)		(7.1	)		—		—			—
Amortization of:
Prior service benefit		—			—			—			—		(0.4	)		(0.6	)
Actuarial loss		—			4.5			4.5			—		—			0.3
Pension / postretirement costs	$	(1.2	)	$	2.0		$	2.0		$	0.1	$	0.2		$	0.7

	Pension Benefits									Postretirement and Other Benefits
	Successor			Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Service cost	$	—		$	—		$	—		$	—	$	0.3		$	0.3
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		0.9			10.2			14.2			0.1		1.8			2.8
Expected return on plan assets		(2.1	)		(19.9	)		(21.6	)		—		—			—
Amortization of:
Prior service benefit		—			—			—			—		(1.7	)		(1.9	)
Actuarial loss		—			16.0			13.5			—		—			0.9
Pension settlement charges		—			—			1.1			—		—			—
Pension / postretirement costs	$	(1.2	)	$	6.3		$	7.2		$	0.1	$	0.4		$	2.1

Amortizations of prior service benefit and actuarial loss in the Predecessor periods represent reclassifications from accumulated other comprehensive income.

In conjunction with remeasuring the pension and postretirement benefit obligations, the weighted-average assumptions used in accounting for and measuring the projected benefit obligations as of the date of the Merger were reviewed and determined to still be appropriate with the exception of the discount rates. The following are the weighted-average discount rate assumptions used in accounting for and measuring the projected benefit obligations:

	Pension Benefits		Postretirement and Other Benefits
	Successor	Predecessor	Successor	Predecessor
	September 8, 2021	December 31, 2020	September 8, 2021	December 31, 2020
Cincinnati plans	2.60%	2.40%	2.60%	2.40%
Hawaii plans	2.50%	2.30%	2.80%	2.60%

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Contributions to the qualified and non-qualified pension plans in the Predecessor period were $0.9 million and $1.8 million, respectively. In the Successor period, there were no contributions to the qualified pension plans and contributions to the non-qualified pension plans were $0.2 million. For the nine months ended September 30, 2020, contributions to the qualified and non-qualified pension plans were $2.8 million and $2.0 million, respectively. Based on current assumptions, no additional contributions are expected to be made to the qualified pension plans in 2021. Contributions to the non-qualified pension plans in 2021 are expected to be approximately $3 million.

For the Predecessor and Successor periods in 2021, contributions to our postretirement plans were $4.3 million and $0.5 million, respectively. For the nine months ended September 30, 2020, contributions to our postretirement plans were $4.3 million. Management expects to make cash payments of approximately $8 million related to its postretirement health plans in 2021.

10.    Income Taxes

As of September 30, 2021, the Company had a deferred tax asset of $6.9 million and a deferred tax liability of $147.7 million compared to a deferred tax asset of $82.5 million and a deferred tax liability of $10.9 million as of December 31, 2020. The increase to net deferred tax liabilities is a result of preliminary adjustments on the Merger Date due to the change in fair value of certain assets and liabilities. The most significant adjustments are driven by the increase in value of the Company’s intangibles (other than goodwill) and increase in value related to fixed assets. These were offset, in part, by deferred tax assets related to the initial fair value adjustments which included note issuance and other debt-related costs, costs of acquisition and fulfillment costs that were deferred in accordance with ASC 606, and other deferred tax assets.

As of September 30, 2021, the Company had U.S. federal net operating loss carryforwards of $848.5 million with a deferred tax asset value of $178.2 million. U.S. tax laws place limitations on the annual utilization of tax loss carryforwards of acquired entities, as well as on losses generated in tax years prior to 2018. Approximately $55.8 million of federal tax loss carryforwards will expire in 2022 if unused. Tax law limitations should not materially impact utilization of the Company’s tax loss carryforwards.

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11.    Shareowners' Equity (Deficit)

Pursuant to the Merger Agreement, Parent acquired all of the equity interests in the Company. In connection with the consummation of the Merger Agreement, each of our issued and outstanding Common Shares was converted to $15.50 in cash per Common Share and paid to the shareholders.  

On September 22, 2021, the Company redeemed each of our issued and outstanding Depositary Shares simultaneously with the redemption of the 6 ¾% Preferred Shares at a redemption price of $50 per Depositary Share (equivalent to $1,000 per 6 ¾% Preferred Share).  

As of September 30, 2021, Parent is the sole shareholder of the Company’s 500,000 Common Shares, each with $0.01 par value.  No other shares remain issued and outstanding subsequent to the Closing Date.  

Subsequent to September 30, 2021, Parent amended and restated the articles of incorporation of Cincinnati Bell effective October 18, 2021 to reduce the number of authorized shares from 96,000,000 Common Shares to 100 Common Shares, each with $0.01 par value.

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component were as follows:

(dollars in millions)
Successor	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Unrealized Loss on Cash Flow Hedges, Net				Foreign Currency Translation (Loss) Gain			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Foreign currency loss		—				—				(1.2	)		(1.2	)
Balance as of September 30, 2021	$	—			$	—			$	(1.2	)	$	(1.2	)
Predecessor
Balance as of June 30, 2021	$	(124.9	)		$	(15.7	)		$	1.4		$	(139.2	)
Reclassifications, net		2.8		(a)		16.2		(b)		—			19.0
Unrealized loss on cash flow hedges arising during the period, net		—				(0.6	)	(c)		—			(0.6	)
Foreign currency loss		—				—				(1.4	)		(1.4	)
Balance as of September 7, 2021	$	(122.1	)		$	(0.1	)		$	—		$	(122.2	)
Balance as of June 30, 2020	$	(159.4	)		$	(22.7	)		$	(7.5	)	$	(189.6	)
Remeasurement of benefit obligations		3.2				—				—			3.2
Reclassifications, net		3.2		(a)		1.8		(b)		—			5.0
Unrealized loss on cash flow hedges arising during the period, net		—				(0.5	)	(c)		—			(0.5	)
Foreign currency gain		—				—				2.0			2.0
Balance as of September 30, 2020	$	(153.0	)		$	(21.4	)		$	(5.5	)	$	(179.9	)

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(dollars in millions)
Successor	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Unrealized Loss on Cash Flow Hedges, Net				Foreign Currency Translation (Loss) Gain			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Foreign currency loss		—				—				(1.2	)		(1.2	)
Balance as of September 30, 2021	$	—			$	—			$	(1.2	)	$	(1.2	)
Predecessor
Balance as of December 31, 2020	$	(138.8	)		$	(19.7	)		$	(1.2	)	$	(159.7	)
Remeasurement of benefit obligations		6.0				—				—			6.0
Reclassifications, net		10.7		(a)		19.7		(b)		—			30.4
Unrealized loss on cash flow hedges arising during the period, net		—				(0.1	)	(c)		—			(0.1	)
Foreign currency gain		—				—				1.2			1.2
Balance as of September 7, 2021	$	(122.1	)		$	(0.1	)		$	—		$	(122.2	)
Balance as of December 31, 2019	$	(152.0	)		$	(14.7	)		$	(3.4	)	$	(170.1	)
Remeasurement of benefit obligations		(11.5	)			—				—			(11.5	)
Reclassifications, net		10.5		(a)		4.6		(b)		—			15.1
Unrealized loss on cash flow hedges arising during the period, net		—				(11.3	)	(c)		—			(11.3	)
Foreign currency loss		—				—				(2.1	)		(2.1	)
Balance as of September 30, 2020	$	(153.0	)		$	(21.4	)		$	(5.5	)	$	(179.9	)

(a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures.

(b) These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings.

(c) The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures.

12.    Business Segment Information

The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Company operates two business segments identified as Entertainment and Communications and IT Services and Hardware.

The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength, digital signal and IRU. Video services provide our customers access to over 400 entertainment channels, over 150 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a live TV streaming application. Voice represents traditional voice lines as well as fiber voice lines, consumer long distance, switched access and digital trunking. Other services consist of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services.

The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions.

Certain corporate administrative expenses have been allocated to the segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated.

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Selected financial data for the Company’s business segment information is as follows:

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Revenue
Entertainment and Communications	$	61.7		$	180.4		$	241.0		$	61.7		$	664.2		$	724.5
IT Services and Hardware		52.0			138.7			155.2			52.0			492.4			444.5
Intersegment		(2.3	)		(4.5	)		(6.7	)		(2.3	)		(17.9	)		(19.5	)
Total revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5
Intersegment revenue
Entertainment and Communications	$	1.6		$	3.4		$	4.9		$	1.6		$	13.1		$	14.8
IT Services and Hardware		0.7			1.1			1.8			0.7			4.8			4.7
Total intersegment revenue	$	2.3		$	4.5		$	6.7		$	2.3		$	17.9		$	19.5
Operating (loss) income
Entertainment and Communications	$	(2.3	)	$	18.9		$	27.2		$	(2.3	)	$	78.3		$	69.8
IT Services and Hardware		1.7			9.0			4.6			1.7			25.2			11.5
Corporate		(0.8	)		(63.2	)		(7.1	)		(0.8	)		(75.8	)		(49.1	)
Total operating (loss) income	$	(1.4	)	$	(35.3	)	$	24.7		$	(1.4	)	$	27.7		$	32.2
Expenditures for long-lived assets*
Entertainment and Communications	$	33.4		$	92.0		$	57.6		$	33.4		$	199.8		$	144.2
IT Services and Hardware		3.3			4.0			3.9			3.3			15.9			16.7
Corporate		1,620.7			—			—			1,620.7			—			—
Total expenditures for long-lived assets	$	1,657.4		$	96.0		$	61.5		$	1,657.4		$	215.7		$	160.9
Depreciation and amortization
Entertainment and Communications	$	24.3		$	44.5		$	61.6		$	24.3		$	166.9		$	190.0
IT Services and Hardware		5.8			7.6			10.2			5.8			27.9			30.7
Corporate		0.1			—			0.1			0.1			0.1			0.1
Total depreciation and amortization	$	30.2		$	52.1		$	71.9		$	30.2		$	194.9		$	220.8
* Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Assets
Entertainment and Communications	$	2,885.3	$	1,803.3
IT Services and Hardware		844.9		477.2
Corporate and eliminations		360.2		388.1
Total assets	$	4,090.4	$	2,668.6

13.    Subsequent Events

On May 2, 2022, the Company acquired Agile Networks LLC, based in Canton, Ohio, for approximately $65 million. Agile Networks LLC provides internet, co-location and data transport services primarily to customers in Ohio and Pennsylvania. We are currently in the process of assessing the accounting for this transaction and will disclose our preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed in the second quarter ended June 30, 2022. 

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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” “will,” “proposes,” “potential,” “could,” “should,” “outlook” or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances, including but not limited to, the possible impacts of the current adverse economic conditions associated with the COVID-19 global health pandemic, are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the caption “Risk Factors” in Part II, Item 1A, and those discussed in other documents the Company filed with the Securities and Exchange Commission (“SEC”). Actual results may differ materially and adversely from those expressed in any forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements for any reason.

Introduction

This Management’s Discussion and Analysis section provides an overview of Cincinnati Bell Inc.'s financial condition as of September 30, 2021 and the results of operations for the periods January 1, 2021 through September 7, 2021, July 1, 2021 through September 7, 2021, September 8, 2021 through September 30, 2021 and the three and nine months ended September 30, 2020. References in this Quarterly Report to “Successor” refer to the Company on or after September 8, 2021 and references to “Predecessor” refer to the results prior to September 8, 2021. This discussion should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and accompanying notes as well as the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Results for interim periods may not be indicative of results for the full year or any other interim period.

Our results of operations as reported in our Consolidated Financial Statements for these periods are prepared in accordance with GAAP. Although GAAP requires that we report on our results for the period from January 1, 2021 through September 7, 2021 and the period from September 8, 2021 through September 30, 2021 separately, management views the Company’s operating results for the year ended December 31, 2021 by combining the results of the applicable Predecessor and Successor periods because such presentation provides the most meaningful comparison of our results to prior periods.

To enhance the analysis of our operating results for the periods presented, we have included a discussion of selected financial and operating data of the Predecessor and Successor on a combined basis for the three and nine months ended September 30, 2021. This presentation consists of the mathematical addition of selected financial and operating data of the Predecessor for the period from January 1, 2021 to September 7, 2021 plus the comparable financial and operating data of the Successor for the period from September 8, 2021 to September 30, 2021. There are no other adjustments made in the combined presentation. The mathematical combination of selected financial and operating data is included below under the heading "Three Months Ended September 30, 2021" and “Nine Months Ended September 30, 2021” and this data is a non-GAAP presentation. Management believes that this selected financial and operating data provides investors with useful information upon which to assess our operating performance because the results of operations for a three and nine-month period correspond to how we have reported our results in the past and how we will report our results in the future.

Acquisition by Red Fiber Parent LLC

On March 13, 2020, Cincinnati Bell entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Red Fiber Parent LLC, a Delaware limited liability company (“Parent”), and RF Merger Sub Inc., an Ohio corporation and directly wholly owned subsidiary of Parent (“Merger Sub”). On September 7, 2021 (the “Closing Date” or “Merger Date”), upon the terms and subject to the conditions set forth in the Merger Agreement and in accordance with the applicable provisions of the OGCL, the Merger was completed. At the effective time of the Merger (the “Effective Time”), the separate corporate existence of Merger Sub ceased, and the Company survived the Merger as a wholly owned subsidiary of Parent.

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Upon completion of the Merger, Parent was deemed the accounting acquirer and Cincinnati Bell Inc. the accounting acquiree. Under the acquisition method of accounting, the assets and liabilities associated with Cincinnati Bell Inc. were recorded at their preliminary fair values measured as of the acquisition date. The excess of the purchase price over the estimated fair values of the net assets acquired was recorded as goodwill. The capital contribution as a result of the Merger included cash from Parent in the amount of $1,716.1 million. These proceeds were used to pay on the date of the Merger (1) $807.3 million of consideration payable to Common Shareholders, including restricted stock awards that vested upon Closing Date to certain employees, (2) $155.2 million of consideration payable to Preferred Shareholders, (3) $658.2 million of existing debt and accrued interest under the Corporate Credit Agreement and (4) transaction costs of $44.0 million primarily related to legal costs and acquisition-related advisory fees associated with the Merger. The Company also incurred note issuance costs of $38.1 million related to the Credit Agreement entered into in connection with the Merger. The Note issuance costs were capitalized as a reduction to the outstanding debt balances or to “Other noncurrent assets” for costs associated with the Revolving Credit Facility due 2026 in the Successor period. In addition, certain stock-based compensation awards were accelerated upon the Closing Date, which resulted in expense of approximately $9.3 million recorded to SG&A in the Predecessor period.

Prior to entering into the Merger Agreement, the Company previously entered the Brookfield Merger Agreement with affiliates of Brookfield, the infrastructure investment division of Brookfield Asset Management, which was subsequently amended. On March 13, 2020, the Company terminated the Brookfield Merger Agreement and entered into the Merger Agreement. In connection with the termination of the Brookfield Merger Agreement, the Company paid to an affiliate of Brookfield a termination fee of $24.8 million as required by the terms of the Brookfield Merger Agreement. The termination fee is recorded in “Transaction and integration costs” on the Condensed Consolidated Statements of Operations in the nine months ended September 30, 2020.

Executive Summary

Segment results described in the Executive Summary and Consolidated Results of Operations sections are net of intercompany eliminations.

Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide integrated communications and IT solutions that keep consumer and enterprise customers connected with each other and with the world. Through its Entertainment and Communications segment, the Company provides Data, Video, and Voice solutions to consumer and enterprise customers over an expanding fiber network and a legacy copper network. In addition, enterprise customers across the United States, Canada and Europe rely on the IT Services and Hardware segment for the sale and service of efficient, end-to-end communications and IT systems and solutions.

Consolidated revenue for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $36.5 million and $100.6 million, respectively, as compared to the same periods in the prior year due to strategic revenue growth in both segments offsetting declines in Legacy revenue.

For the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, Consumer/SMB Fiber revenue increased $7.4 million and $19.4 million, respectively, as compared to the same periods in 2020 as the Company continues to focus on high-speed internet activations while Legacy revenue decreased $6.4 million and $18.2 million, respectively, as compared to the comparable periods in the prior year. IT Services and Hardware experienced revenue growth in all practices in both comparable periods, with the most significant growth in the Consulting practice in which revenue increased 58% and 55% for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, respectively, as compared to the same periods in the prior year.

Operating loss for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 was $36.7 million compared to operating income of $24.7 million in the three months ended September 30, 2020. Revenue growth in both segments was more than offset by transaction and integration charges, higher depreciation and amortization expenses related to the increased value of property, plant and equipment and intangibles as a result of adjustments recorded as of the Merger Date, and increased SG&A expenses primarily due to the accelerated vesting of certain stock-based awards on the Closing Date resulting in additional expense of $9.3 million.

Operating income for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 totaled $26.3 million, down $5.9 million compared to the nine months ended September 30, 2020. The decrease in operating income is due to similar trends that impacted the quarter. In addition, transaction and integration charges recorded in the nine months ended September 30, 2020 include a termination fee of $24.8 million paid to an affiliate of Brookfield in the first quarter of 2020, and lower restructuring and severance related charges are due to the voluntary severance program (“VSP”) finalized in the three months ended March 31, 2020.

Loss before income taxes totaled $97.4 million and $104.6 million for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, respectively, resulting in an increase in the loss as compared to the comparable periods in 2020. Lower interest expense and pension and postretirement benefit plans expense in each of the comparable periods were more than offset by the decrease in operating income and recording a loss on termination of interest rate swaps of $20.1 million and loss on extinguishment of debt of $10.7 million in the Predecessor period included within the three months ended September 30, 2021.

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Impact of COVID-19 on Our Business

The COVID-19 pandemic has resulted, and is likely to continue to result, in significant economic disruption. As of the date of this filing, significant uncertainty continues to exist concerning the magnitude of the impact and duration of the COVID-19 pandemic. We have begun to see logistics challenges in obtaining inventory in a timely manner due to demand exceeding the supply of certain inventory products.  Additionally, access to skilled employees and contractors could create delays or increased costs in the planned build-out of the fiber network in both geographies. As a business with employees greater than 100 and who provides services to certain government agencies, the reaction by employees to the vaccine requirement may create additional negative impacts on the Company’s existing employee base.

On March 13, 2020, in response to the COVID-19 pandemic, the Federal Communications Commission (“FCC”) called on broadband and telephone service providers to keep Americans connected as the country reacted to the serious disruptions caused by the coronavirus outbreak. Cincinnati Bell, on behalf of all of its affiliates, including Hawaiian Telecom, signed on to the Keep Americans Connected Pledge (the “Pledge”) and committed to waive late fees for, and not terminate service to, any of our consumer or small business customers who did not pay their bills timely due to an inability to pay caused by the COVID-19 crisis. The impacts to revenue as a result of these commitments primarily occurred during the second quarter of 2020 and included a decline in revenue related to late payment fees and certain other one-time fees. The impacts to revenue as a result of these commitments were limited in the nine months ended September 30, 2021. The Pledge expired on June 30, 2020, and customer accounts in the Cincinnati market that were not cured were disconnected during the third and fourth quarters of 2020. Balances associated with accounts that have been disconnected were fully reserved as of December 31, 2020 and were written off during the first quarter of 2021. 

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We expect the ultimate significance of the impact on our financial condition, results of operations, or cash flows will be dictated by the length of time that such circumstances continue, which will depend on the currently unknowable extent and duration of the COVID-19 pandemic, effectiveness of the vaccine and timeliness that individuals receive the vaccine. COVID-19 also makes it more challenging for management to estimate future performance of our businesses, particularly over the near term. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees, customers, suppliers and shareholders.

Consolidated Results of Operations

	Successor		Predecessor		Non-GAAP Combined		Predecessor		Successor		Predecessor		Non-GAAP Combined		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2021		Three Months Ended to September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Revenue
Entertainment and Communications	$	60.1	$	177.0	$	237.1	$	236.1	$	60.1	$	651.1	$	711.2	$	709.7
IT Services and Hardware		51.3		137.6		188.9		153.4		51.3		487.6		538.9		439.8
Total revenue	$	111.4	$	314.6	$	426.0	$	389.5	$	111.4	$	1,138.7	$	1,250.1	$	1,149.5

Entertainment and Communications revenue for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased compared to the same periods in 2020 primarily due to revenue growth associated with our Consumer/SMB Fiber products as well as revenue from late payment fees and other one-time charges that were temporarily suspended in 2020 more than offsetting Legacy decline.  

IT Services and Hardware revenue for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased compared to the same periods in the prior year due to revenue growth in each of the practices in each of the comparable periods. The most significant contributor was the Consulting practice in which revenue increased by $28.7 million and $76.7 million in the combined Predecessor and Successor periods included within three and nine months ended September 30, 2021, respectively, as compared to the same periods in 2020.

Operating Costs

	Successor		Predecessor		Non-GAAP Combined		Predecessor		Successor		Predecessor		Non-GAAP Combined		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Cost of services and products
Entertainment and Communications	$	27.4	$	82.0	$	109.4	$	105.8	$	27.4	$	296.4	$	323.8	$	314.7
IT Services and Hardware		33.1		92.6		125.7		98.1		33.1		323.1		356.2		276.3
Total cost of services and products	$	60.5	$	174.6	$	235.1	$	203.9	$	60.5	$	619.5	$	680.0	$	591.0

Entertainment and Communications costs for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 increased $3.6 million and $9.1 million, respectively, as compared to the same periods in 2020 due to increases in operating taxes, contract services and operating materials. The increase in operating taxes is due to increased regulatory fees in addition to lower operating taxes in 2020 due to favorable audit results that resulted in a nonrecurring benefit of $4.2 million in the nine months ended September 30, 2020. Contract services increased $0.7 million and $2.9 million for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, respectively, as compared to the same periods in the prior year primarily due to a project completed in the prior year to outsource certain functions as well as a significant general liability insurance claim incurred in the first quarter of 2021. The increase in operating materials is due to increased purchases associated with the expansion of our fiber network. These increases were partially offset by a decrease in payroll expense for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 as compared to the same periods in 2020 due to fewer headcount as a result of the restructuring activities executed in prior years and a one-time award granted to employees in the third quarter of 2020.

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IT Services and Hardware costs for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $27.6 million and $79.9 million, respectively, as compared to the comparable periods in the prior year due to increases in payroll related costs, contractor costs, software licensing costs and regulatory fees. In the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, payroll related costs increased $0.5 million and $10.9 million, respectively, and contractor costs increased $25.3 million and $63.2 million, respectively, as compared to the same periods in the prior year. These costs increased due to additional headcount to support the growth in the Communications and Consulting practices. The increase in payroll related costs in the combined Predecessor and Successor periods included within the three months ended September 30, 2021 was partially offset by higher bonus expense recorded in the third quarter of 2020 related to a one-time bonus to reward employees for their efforts during COVID-19. Higher software licensing costs were also incurred to support the revenue growth in the Communications practice.

	Successor		Predecessor		Non-GAAP Combined		Predecessor		Successor		Predecessor		Non-GAAP Combined		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Selling, general and administrative
Entertainment and Communications	$	11.6	$	34.0	$	45.6	$	44.4	$	11.6	$	118.3	$	129.9	$	130.2
IT Services and Hardware		9.8		28.6		38.4		36.7		9.8		104.2		114.0		110.0
Corporate		0.7		11.6		12.3		4.9		0.7		20.9		21.6		15.1
Total selling, general and administrative	$	22.1	$	74.2	$	96.3	$	86.0	$	22.1	$	243.4	$	265.5	$	255.3

SG&A costs increased for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 compared to the same period in the prior year. Increases in Entertainment and Communications and IT Services and Hardware as compared to the same period in the prior year are primarily due to cost containment strategies taken in 2020 to reduce the negative impact of the COVID-19 pandemic on the business that were no longer in place for the third quarter of 2021. Higher payroll related costs, increased advertising expense and increased travel expenses contributed to the increase of SG&A costs in both segments. Corporate SG&A increased compared to the same period in the prior year due to unrecognized compensation expense that was accelerated upon the closing of the Merger for previously granted stock awards to officers, key employees and Non-Employee Directors that vested upon the Closing Date of $9.3 million.

Similar trends that impacted the three months ended September 30, 2021 for both segments are impacting SG&A costs for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021. The increases in Entertainment and Communications are more than offset by decreased bad debt expense of $7.7 million due to favorable collections in 2021. Increased Corporate SG&A costs in the nine months ended September 30, 2021 for the combined Predecessor and Successor periods are due to compensation expense partially offset by lower consulting and contractor expenses due to certain expenses that will longer be incurred as a result of becoming a private company.

	Successor		Predecessor		Non-GAAP Combined		Predecessor		Successor		Predecessor		Non-GAAP Combined		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2021		Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
Depreciation and amortization expense
Entertainment and Communications	$	24.3	$	44.5	$	68.8	$	61.6	$	24.3	$	166.9	$	191.2	$	190.0
IT Services and Hardware		5.8		7.6		13.4		10.2		5.8		27.9		33.7		30.7
Corporate		0.1		—		0.1		0.1		0.1		0.1		0.2		0.1
Total depreciation and amortization expense	$	30.2	$	52.1	$	82.3	$	71.9	$	30.2	$	194.9	$	225.1	$	220.8

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Depreciation and amortization expense increased for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 compared to the same periods in 2020 primarily due to additional expense recorded in the Successor period in the Entertainment and Communications segment and IT Services and Hardware segment of $9.0 million and $4.2 million, respectively, related to the increased value of property, plant and equipment and intangibles as a result of new intangibles and fair value adjustments due to the Merger.

	Successor		Predecessor			Non-GAAP Combined			Predecessor		Successor		Predecessor			Non-GAAP Combined			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2021			Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Other operating costs
Restructuring and severance related charges	$	—	$	0.3		$	0.3		$	0.8	$	—	$	1.2		$	1.2		$	16.4
Transaction and integration costs		—		51.5			51.5			2.2		—		54.8			54.8			33.8
Gain on sale of assets, net		—		(2.8	)		(2.8	)		—		—		(2.8	)		(2.8	)		—
Total other operating costs	$	—	$	49.0		$	49.0		$	3.0	$	—	$	53.2		$	53.2		$	50.2

Restructuring and severance charges recorded for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 are primarily due to initiatives to reduce and contain costs in the IT Services and Hardware segment. Restructuring and severance charges recorded in the nine months ended September 30, 2020 are primarily related to a VSP for certain bargained and management employees in an effort to reduce costs associated with our copper field and network operations in the Entertainment and Communications segment.

Transaction and integration costs, recorded as a Corporate expense, for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021, are primarily associated with the Merger Agreement. The Company elected to record all expenses that were triggered by the transaction closing in the Predecessor period. Included in transaction and integration costs are legal and financial advisory costs of $44.0 million that were paid on the Merger Date as well as $2.4 million of costs incurred prior to the Merger Date, transaction-related bonuses of $5.3 million, and severance associated with a change of control termination clause in an employee contract of $2.9 million. Other transaction costs of $0.2 million recorded in the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 are related to other projects. Transaction and integration costs incurred in 2020, recorded as a Corporate expense, are primarily due to the termination fee of $24.8 million paid to an affiliate of Brookfield to terminate the Brookfield Merger Agreement in the first quarter of 2020. The Company also incurred transaction and integration costs in the three and nine months ended September 30, 2020 associated with the Merger Agreement.

The gain on sale of assets, net recorded in the Predecessor period included within the three months ended September 30, 2021 is related to the sale and leaseback of a building in the IT Services and Hardware segment.

Non-operating Costs

	Successor			Predecessor			Non-GAAP Combined			Predecessor			Successor			Predecessor			Non-GAAP Combined			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Non-operating costs
Interest expense	$	6.4		$	23.2		$	29.6		$	33.4		$	6.4		$	89.1		$	95.5		$	100.6
Other components of pension and postretirement benefit plans expense		(1.1	)		2.1			1.0			2.6			(1.1	)		6.4			5.3			9.0
Loss of extinguishment of debt		—			10.7			10.7			—			—			10.7			10.7			—
Other (income) expense, net		(0.3	)		19.7			19.4			(0.2	)		(0.3	)		19.7			19.4			(1.2	)
Income tax benefit		(1.4	)		(17.3	)		(18.7	)		(2.9	)		(1.4	)		(16.9	)		(18.3	)		(26.2	)

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Interest expense decreased for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 compared to the same period in the prior year due to the decrease in LIBOR rates.

Loss on extinguishment of debt recorded in the Predecessor period included within the nine months ended September 30, 2021 is due to the termination of the Company’s former Corporate Credit Agreement in connection with the Merger.

Other (income) expense, net recorded in the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 is primarily comprised of loss on termination of the interest rate swaps of $20.1 million recorded in the third quarter of 2021.

The income tax benefit increased for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 compared to the same period in the prior year, primarily due to an increase in the loss before income taxes.

The income tax benefit is lower for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 compared to the same period in the prior year, despite a higher loss before income taxes, primarily due to nondeductible transaction costs incurred in the Predecessor period. The comparable period tax benefit was higher than the statutory rate due most notably to the release of the valuation allowance on previously-disallowed interest expense as a result of favorable temporary provisions in the CARES Act.

Entertainment and Communications

The Entertainment and Communications segment provides products and services that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. Cincinnati Bell Telephone Company LLC ("CBT"), a subsidiary of the Company, is the incumbent local exchange carrier ("ILEC") for a geography that covers a radius of approximately 25 miles around Cincinnati, Ohio, and includes parts of northern Kentucky and southeastern Indiana. CBT has operated in this territory for over 145 years. Voice and data services in the Enterprise Fiber and Legacy categories that are delivered beyond the Company's ILEC territory, particularly in Dayton and Mason, Ohio, are provided through the operations of Cincinnati Bell Extended Territories LLC ("CBET"), a subsidiary of CBT. On July 2, 2018, the Company acquired Hawaiian Telcom. Hawaiian Telcom is the ILEC for the State of Hawaii and the largest full-service provider of communications services and products in the state. Originally incorporated in Hawaii in 1883 as Mutual Telephone Company, Hawaiian Telcom has a strong heritage of over 135 years as Hawaii’s communications carrier. Its services are offered on all of Hawaii’s major islands, except its video service, which currently is only available on the island of Oahu.

Consumer/SMB Fiber products include high-speed internet access, voice lines and video. The Company is able to deliver speeds of up to 30 megabits or more to approximately 75% of Greater Cincinnati and up to 20 megabits or more to approximately 50% of Hawaii's total addressable market.

Enterprise Fiber products include metro-ethernet, dedicated internet access, wavelength, IRU contracts, and wireless backhaul to macro-towers and small cell. As enterprise customers migrate from legacy products and copper-based technology, our metro-ethernet product becomes the preferred method of transport due to its ability to support multiple applications on a single physical connection.

Legacy products include traditional voice lines, consumer long distance, switched access, digital trunking, DSL, DS0, DS1, DS3 and other value-added services such as caller identification, voicemail, call waiting and call return.

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	Successor			Predecessor			Non-GAAP Combined			Predecessor			Successor			Predecessor			Non-GAAP Combined			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Revenue:
Data	$	31.6		$	91.7		$	123.3		$	119.8		$	31.6		$	334.6		$	366.2		$	358.8
Video		12.2			35.3			47.5			48.1			12.2			131.8			144.0			145.1
Voice		15.8			46.8			62.6			65.5			15.8			177.3			193.1			197.6
Other		2.1			6.6			8.7			7.6			2.1			20.5			22.6			23.0
Total Revenue		61.7			180.4			242.1			241.0			61.7			664.2			725.9			724.5
Operating costs and expenses:
Cost of services and products		28.1			83.1			111.2			107.8			28.1			301.2			329.3			319.7
Selling, general and administrative		11.6			33.9			45.5			44.4			11.6			118.3			129.9			130.2
Depreciation and amortization		24.3			44.5			68.8			61.6			24.3			166.9			191.2			190.0
Restructuring and severance charges		—			—			—			—			—			(0.5	)		(0.5	)		14.8
Total operating costs and expenses		64.0			161.5			225.5			213.8			64.0			585.9			649.9			654.7
Operating (loss) income	$	(2.3	)	$	18.9		$	16.6		$	27.2		$	(2.3	)	$	78.3		$	76.0		$	69.8
Operating margin		(3.7	)%		10.5	%		6.9	%		11.3	%		(3.7	)%		11.8	%		10.5	%		9.6	%
Capital expenditures	$	32.1		$	41.5		$	73.6		$	55.9		$	32.1		$	149.3		$	181.4		$	142.5

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Entertainment and Communications, continued

	Successor		Predecessor
Metrics information (in thousands):	September 30, 2021		September 30, 2020		Change			% Change
Cincinnati
Fioptics
Data
Internet FTTP*		255.4		235.0		20.4			9	%
Internet FTTN*		23.2		27.7		(4.5	)		(16	)%
Total Fioptics Internet		278.6		262.7		15.9			6	%
Video
Video FTTP*		106.5		108.7		(2.2	)		(2	)%
Video FTTN*		18.3		20.8		(2.5	)		(12	)%
Total Fioptics Video		124.8		129.5		(4.7	)		(4	)%
Voice
Fioptics Voice Lines		102.0		104.4		(2.4	)		(2	)%
Fioptics Units Passed
Units passed FTTP*		515.6		494.8		20.8			4	%
Units passed FTTN*		131.9		138.0		(6.1	)		(4	)%
Total Fioptics units passed		647.5		632.8		14.7			2	%
Enterprise Fiber
Data
Ethernet Bandwidth (Gb)		7,027		5,978		1,049			18	%
Legacy
Data
DSL		55.0		63.3		(8.3	)		(13	)%
Voice
Legacy Voice Lines		160.5		180.3		(19.8	)		(11	)%

* Fiber-to-the-Premise (FTTP), Fiber-to-the-Node (FTTN)

41

Entertainment and Communications, continued

	Successor		Predecessor
Metrics information (in thousands):	September 30, 2021		September 30, 2020		Change			% Change
Hawaii
Consumer / SMB Fiber
Data
Internet FTTP*		64.4		58.6		5.8			10	%
Internet FTTN*		9.1		11.7		(2.6	)		(22	)%
Total Consumer / SMB Fiber Internet		73.5		70.3		3.2			5	%
Video
Video FTTP*		29.7		30.6		(0.9	)		(3	)%
Video FTTN*		8.4		11.4		(3.0	)		(26	)%
Total Consumer / SMB Fiber Video		38.1		42.0		(3.9	)		(9	)%
Voice
Consumer / SMB Fiber Voice Lines		28.5		29.8		(1.3	)		(4	)%
Consumer / SMB Fiber Units Passed **
Units passed FTTP*		203.2		178.1		25.1			14	%
Units passed FTTN*		66.8		72.5		(5.7	)		(8	)%
Total Consumer / SMB Fiber units passed		270.0		250.6		19.4			8	%
Enterprise Fiber
Data
Ethernet Bandwidth (Gb)		4,225		4,063		162			4	%
Legacy
Data
DSL		31.5		38.2		(6.7	)		(18	)%
Voice
Legacy Voice Lines		140.8		164.2		(23.4	)		(14	)%

*Fiber-to-the-Premise (FTTP), Fiber-to-the-Node (FTTN)

** Includes units passed for both consumer and business on Oahu and neighboring islands.

42

Entertainment and Communications, continued

Revenue

	Successor						Predecessor						Non-GAAP Combined						Predecessor
	September 8, 2021 to September 30, 2021						July 1, 2021 to September 7, 2021						Three Months Ended September 30, 2021						Three Months Ended September 30, 2020
	Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total
Revenue
Consumer / SMB Fiber *
Data	$	12.5	$	2.7	$	15.2	$	35.7	$	7.7	$	43.4	$	48.2	$	10.4	$	58.6	$	43.0	$	9.1	$	52.1
Video		9.9		2.3		12.2		28.7		6.6		35.3		38.6		8.9		47.5		38.7		9.4		48.1
Voice		2.1		0.7		2.8		6.5		2.1		8.6		8.6		2.8		11.4		8.9		2.7		11.6
Other		0.2		—		0.2		2.1		—		2.1		2.3		—		2.3		0.4		0.2		0.6
		24.7		5.7		30.4		73.0		16.4		89.4		97.7		22.1		119.8		91.0		21.4		112.4
Enterprise Fiber
Data		5.5		2.9		8.4		15.6		8.1		23.7		21.1		11.0		32.1		21.4		10.6		32.0
Legacy
Data		5.1		2.9		8.0		15.3		9.3		24.6		20.4		12.2		32.6		23.4		12.3		35.7
Voice		6.5		6.5		13.0		19.0		19.2		38.2		25.5		25.7		51.2		27.9		26.0		53.9
Other		1.0		0.9		1.9		2.1		2.4		4.5		3.1		3.3		6.4		3.1		3.9		7.0
		12.6		10.3		22.9		36.4		30.9		67.3		49.0		41.2		90.2		54.4		42.2		96.6
Total Entertainment and Communications revenue	$	42.8	$	18.9	$	61.7	$	125.0	$	55.4	$	180.4	$	167.8	$	74.3	$	242.1	$	166.8	$	74.2	$	241.0

	Successor						Predecessor						Non-GAAP Combined						Predecessor
	September 8, 2021 to September 30, 2021						January 1, 2021 to September 7, 2021						Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
	Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total
Revenue
Consumer / SMB Fiber *
Data	$	12.5	$	2.7	$	15.2	$	127.3	$	28.1	$	155.4	$	139.8	$	30.8	$	170.6	$	126.0	$	26.5	$	152.5
Video		9.9		2.3		12.2		106.9		24.9		131.8		116.8		27.2		144.0		116.3		28.8		145.1
Voice		2.1		0.7		2.8		23.7		7.9		31.6		25.8		8.6		34.4		25.0		8.1		33.1
Other		0.2		—		0.2		2.6		—		2.6		2.8		—		2.8		1.1		0.6		1.7
		24.7		5.7		30.4		260.5		60.9		321.4		285.2		66.6		351.8		268.4		64.0		332.4
Enterprise Fiber
Data		5.5		2.9		8.4		57.8		29.3		87.1		63.3		32.2		95.5		64.3		31.0		95.3
Legacy
Data		5.1		2.9		8.0		59.1		33.0		92.1		64.2		35.9		100.1		71.6		39.4		111.0
Voice		6.5		6.5		13.0		72.9		72.8		145.7		79.4		79.3		158.7		85.7		78.8		164.5
Other		1.0		0.9		1.9		9.0		8.9		17.9		10.0		9.8		19.8		9.3		12.0		21.3
		12.6		10.3		22.9		141.0		114.7		255.7		153.6		125.0		278.6		166.6		130.2		296.8
Total Entertainment and Communications revenue	$	42.8	$	18.9	$	61.7	$	459.3	$	204.9	$	664.2	$	502.1	$	223.8	$	725.9	$	499.3	$	225.2	$	724.5

* Represents Fioptics in Cincinnati

43

Entertainment and Communications, continued

Cincinnati Fioptics and Hawaii Consumer/SMB Fiber (collectively, "Consumer/SMB Fiber")

Consumer/SMB Fiber revenue for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $7.4 million and $19.4 million, respectively, as compared to the same periods in the prior year. The increase in the subscriber base for internet more than offset the decline in video and voice subscribers. The internet subscriber base continues to increase as we focus our attention on growing the internet FTTP subscriber base. In addition, the Average Revenue Per User (“ARPU”) for the three and nine months ended September 30, 2021 increased for internet in Cincinnati by 6% and 5%, respectively, and in Hawaii by 9% and 11%, respectively, as compared to the same periods in 2020 primarily due to price increases and more customers subscribing to higher broadband tiers. Video ARPU also increased in the three and nine months ended September 30, 2021 in Cincinnati by 4% and 5%, respectively, and in Hawaii by 6% and 4%, respectively, as compared to the comparable periods in the prior year which partially offset the decline in video subscribers. Video ARPU increases are related to price increases as well as the change in the mix of subscribers. Voice revenue increased in the nine months ended September 30, 2021 as compared to the same period in the prior year primarily due to revenue associated with customer surcharges related to increased regulatory fees which more than offset the decline in voice subscribers. Other revenue increased for the three and nine months ended September 30, 2021 as compared to the comparable periods in 2020 primarily due to revenue associated with fiber build projects in Cincinnati. Consumer/SMB Fiber revenue was also unfavorably impacted in the nine months ended September 30, 2020 due to a decline in certain nonrecurring revenue as a result of the Company’s participation in the Pledge that expired on June 30, 2020.

Enterprise Fiber

Enterprise Fiber revenue for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 was nearly flat compared to the comparable periods in the prior year. Increased revenue as a result of customers migrating from legacy product offerings to higher bandwidth fiber solutions, as evidenced by the 18% and 4% increases in Ethernet Bandwidth in Cincinnati and Hawaii, respectively, was offset by pricing pressures to provide higher speeds at a lower cost.

Legacy

Legacy revenue decreased for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 as compared to the same periods in the prior year due to the decline in voice lines and DSL subscribers. Voice lines declined 11% and 14% in Cincinnati and Hawaii, respectively, as the traditional voice lines become less relevant. DSL subscribers decreased by 13% and 18% in Cincinnati and Hawaii, respectively, as subscribers demand the higher speeds that can be provided by fiber. In addition, declines in DS1, DS3 and digital trunking have contributed to the revenue decline for these products in 2021 compared to the same periods in the prior year as customers migrate away from these solutions to fiber-based solutions.

Operating Costs and Expenses

Cost of services and products for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $3.4 million and $9.6 million, respectively, as compared to the comparable periods in 2020 due to increases in operating taxes, contract services and operating materials which were partially offset by a decrease in payroll related costs. The increase in operating taxes is due to increased regulatory fees in addition to lower operating taxes in 2020 due to favorable audit results that resulted in a nonrecurring benefit of $4.2 million in the nine months ended September 30, 2020. In the three and nine months ended September 30, 2021, contract services increased $0.7 million and $2.9 million, respectively, as compared to the same periods in 2020 primarily due to outsourcing certain functions in the prior year as well as a significant general liability insurance claim incurred in the first quarter of 2021. Operating materials increased $1.6 million and $1.9 million in the three and nine months ended September 30, 2021, respectively, as compared to the same periods in the prior year as a result of increased purchases associated with the expansion of our fiber network. Payroll related costs decreased $2.1 million and $4.0 million for the three and nine months ended September 30, 2021, respectively, as compared to the comparable periods in the prior year primarily due to lower headcount as a result of restructuring activities executed in prior years in addition to higher bonus expense recorded in the third quarter of 2020 associated with a one-time bonus awarded to employees for their efforts during COVID-19.

SG&A expenses increased $1.1 million for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 as compared to the same period in the prior year due to increased contract services of $0.5 million for higher utilization of outside contractors on certain specialized projects, increased advertising of $1.3 million as the Company delayed certain marketing campaigns and promotional events in 2020 and other nonrecurring savings realized in the three months ended September 30, 2020 as a result of cost containment strategies implemented to reduce the negative impact of the COVID-19 pandemic on the business. The increase was partially offset by decreased bad debt expense of $1.3 million compared to the three months ended September 30, 2020. The decrease in bad debt expense is a result of updating our estimate of the impact of the economic downturn associated with the COVID-19 pandemic on the Company’s receivables in the three months ended September 30, 2020 as well as increased focus on collection efforts.

44

Entertainment and Communications, continued

SG&A expenses decreased $0.3 million for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 as compared to the same period in 2020 primarily due to decreased bad debt expense of $7.7 million compared to the nine months ended September 30, 2020 as a result of updating our estimate in 2020 as well as focus on collection efforts and favorable resolution of reserved balances in the first quarter of 2021 associated with a customer that filed for bankruptcy in a prior period. The decrease in bad debt expense was partially offset by increased payroll related costs due to additional headcount and similar trends impacting the three months ended September 30, 2021.

Depreciation and amortization expense increased $7.2 million and $1.2 million for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, respectively, as compared to the same periods in 2020 primarily due to additional expense of $9.0 million recorded in the Successor period related to the increased value of property, plant and equipment and intangibles as a result of fair value adjustments. The increase was partially offset due to fewer assets placed in service in connection with the expansion of our fiber network in the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 as compared to the same periods in the prior year.

Restructuring and severance charge reversals recorded in the Predecessor period included within the nine months ended September 30, 2021 are due to employees that transitioned to new positions in the Company and were previously included in the VSP offered in the first quarter of 2020. Restructuring and severance charges recorded in the nine months ended September 30, 2020 are primarily related to a VSP for certain bargained and management employees in an effort to continue to reduce costs associated with our copper field and network operations.

Capital Expenditures

	Successor						Predecessor						Non-GAAP Combined						Predecessor
	September 8, 2021 to September 30, 2021						July 1, 2021 to September 7, 2021						Three Months Ended September 30, 2021						Three Months Ended September 30, 2020
	Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total
Consumer / SMB Fiber capital expenditures *
Construction	$	8.2	$	2.1	$	10.3	$	8.6	$	5.6	$	14.2	$	16.8	$	7.7	$	24.5	$	6.1	$	4.1	$	10.2
Installation		4.7		2.6		7.3		7.3		2.9		10.2		12.0		5.5		17.5		8.4		3.4		11.8
Other		1.0		0.2		1.2		0.8		—		0.8		1.8		0.2		2.0		2.4		0.2		2.6
Total Consumer / SMB Fiber		13.9		4.9		18.8		16.7		8.5		25.2		30.6		13.4		44.0		16.9		7.7		24.6
Enterprise Fiber		2.4		1.4		3.8		1.6		2.1		3.7		4.0		3.5		7.5		4.4		2.7		7.1
Other		5.4		4.1		9.5		6.3		6.3		12.6		11.7		10.4		22.1		9.8		14.4		24.2
Total Entertainment and Communications capital expenditures	$	21.7	$	10.4	$	32.1	$	24.6	$	16.9	$	41.5	$	46.3	$	27.3	$	73.6	$	31.1	$	24.8	$	55.9

	Successor						Predecessor						Non-GAAP Combined						Predecessor
	September 8, 2021 to September 30, 2021						January 1, 2021 to September 7, 2021						Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
	Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total		Cincinnati		Hawaii		Total
Consumer / SMB Fiber capital expenditures *
Construction	$	8.2	$	2.1	$	10.3	$	22.3	$	16.7	$	39.0	$	30.5	$	18.8	$	49.3	$	14.1	$	9.5	$	23.6
Installation		4.7		2.6		7.3		30.6		9.5		40.1		35.3		12.1		47.4		25.1		10.6		35.7
Other		1.0		0.2		1.2		3.3		0.4		3.7		4.3		0.6		4.9		6.9		0.3		7.2
Total Consumer / SMB Fiber		13.9		4.9		18.8		56.2		26.6		82.8		70.1		31.5		101.6		46.1		20.4		66.5
Enterprise Fiber		2.4		1.4		3.8		14.5		9.6		24.1		16.9		11.0		27.9		8.8		8.2		17.0
Other		5.4		4.1		9.5		19.4		23.0		42.4		24.8		27.1		51.9		26.8		32.2		59.0
Total Entertainment and Communications capital expenditures	$	21.7	$	10.4	$	32.1	$	90.1	$	59.2	$	149.3	$	111.8	$	69.6	$	181.4	$	81.7	$	60.8	$	142.5

* Represents Fioptics in Cincinnati

45

Entertainment and Communications, continued

Capital expenditures in Cincinnati are incurred to expand our Fioptics product suite, upgrade and increase capacity for our networks, and to extend the life of our fiber and copper networks. As of September 30, 2021, the Company is able to deliver its Fioptics services with speeds up to 30 megabits or more to approximately 647,500 residential and commercial addresses, or 75% of our operating territory in Cincinnati. Cincinnati construction capital expenditures for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $10.7 million and $16.4 million, respectively, as compared to the same periods in 2020 due to passing more addresses in 2021 and the timing of capital expenditures, which does not necessarily coincide with the timing of when addresses become available. The increase in Consumer/SMB Fiber units passed in 2021 was partially offset due to decommissioning a legacy video platform, thereby disqualifying approximately 13,200 addresses. Cincinnati installation capital expenditures are primarily related to the timing of expenditures for customer premise equipment (“CPE”) utilized for installations. In the combined Predecessor and Successor periods for the three and nine months ended September 30, 2021, Cincinnati installation capital expenditures increased $3.6 million and $10.2 million, respectively, as compared to the same periods in 2020 primarily due to higher volume of CPE purchased.

Enterprise Fiber capital expenditures in Cincinnati are related to success-based fiber builds, including associated equipment, for enterprise and carrier projects to provide ethernet services as well as network refresh projects that ensure we continue to grow our capacity and services within the network core. Cincinnati Enterprise Fiber capital expenditures increased $8.1 million in the nine months ended September 30, 2021 as compared to the same period in the prior year primarily due to increased spend associated with a scheduled network refresh project in addition to fiber build projects. Other capital expenditures are related to IT projects, cable and equipment maintenance and capacity additions, real estate upgrades and maintenance, plus other minor capital purchases.

Hawaii construction capital expenditures for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $3.6 million and $9.3 million, respectively, as compared to the same periods in the prior year due to building out 6,700 new addresses in the third quarter of 2021, primarily in rural areas and on the neighbor islands, and 15,700 new addresses in the nine months ended September 30, 2021. Hawaii installation capital expenditures increased $2.1 million and $1.5 million in the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, respectively, as compared to the comparable periods in 2020 primarily due to increased internet installations on the neighbor islands. Enterprise fiber capital in Hawaii is primarily driven by new ethernet customers. Hawaii capital expenditures classified as Other include IT projects, real estate projects, road jobs or plant damage projects, and network upgrades or optimization projects.

46

IT Services and Hardware

The IT Services and Hardware segment provides end-to-end IT solutions ranging from consulting to implementation to ongoing optimization of existing technology. These solutions include Cloud, Communications and Consulting services along with the sale and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions. These services and products are provided through the Company's subsidiaries in various geographic areas throughout the United States, Canada and Europe. By offering a full range of equipment and strategic services in conjunction with the Company’s fiber and copper networks, the IT Services and Hardware segment provides our customers personalized solutions designed to meet their business objectives.

Cloud services include the design, implementation and on-going management of the customer’s infrastructure. This includes on-premise, public cloud and private cloud solutions. The Company assists customers with the risk assessment phase through an in-depth understanding of the customer’s business as well as designing and building a solution, using either the customer's existing infrastructure or new cloud based options that transforms the way that the customer does business.

Communications solutions help to transform the way our customers do business by connecting employees, customers, and business partners. By upgrading legacy technologies through customized build projects and reducing customer costs, the Company helps to transform the customer’s business. These services include Unified Communications as a Service ("UCaaS"), Software-Defined Wide Area Network ("SD-WAN"), Network as a Service ("NaaS"), Contact Center and Collaboration.

Using our experience and expertise, Infrastructure Solutions are tailored to our customers’ organizational goals. We offer a complete portfolio of services that provide customers with efficient and optimized IT solutions that are agile and responsive to their business and are integrated, simplified and manageable. Through consulting with customers, the Company will build a solution using standard manufacturer equipment to meet our customers’ specific requirements.

Consulting services help customers assess their business and technology needs and provide the talent needed to ensure success. The Company is a premier provider of application services and IT staffing.

	Successor			Predecessor			Non-GAAP Combined			Predecessor			Successor			Predecessor			Non-GAAP Combined			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2021
Revenue:
Consulting	$	21.6		$	56.5		$	78.1		$	49.4		$	21.6		$	193.6		$	215.2		$	138.5
Cloud		6.6			18.7			25.3			21.1			6.6			66.4			73.0			63.0
Communications		14.2			40.1			54.3			53.9			14.2			149.1			163.3			160.3
Infrastructure Solutions		9.6			23.4			33.0			30.8			9.6			83.3			92.9			82.7
Total revenue		52.0			138.7			190.7			155.2			52.0			492.4			544.4			444.5
Operating costs and expenses:
Cost of services and products		34.6			95.8			130.4			102.7			34.6			335.6			370.2			290.2
Selling, general and administrative		9.9			28.8			38.7			36.9			9.9			104.8			114.7			110.6
Depreciation and amortization		5.8			7.6			13.4			10.2			5.8			27.9			33.7			30.7
Restructuring and severance related charges		—			0.3			0.3			0.8			—			1.7			1.7			1.5
Gain on sale of assets, net		—			(2.8	)		(2.8	)		—			—			(2.8	)		(2.8	)		—
Total operating costs and expenses		50.3			129.7			180.0			150.6			50.3			467.2			517.5			433.0
Operating income	$	1.7		$	9.0		$	10.7		$	4.6		$	1.7		$	25.2		$	26.9		$	11.5
Operating margin		3.3	%		6.5	%		5.6	%		3.0	%		3.3	%		5.1	%		4.9	%		2.6	%
Capital expenditures	$	3.3		$	4.0		$	7.3		$	3.9		$	3.3		$	15.9		$	19.2		$	16.7

47

IT Services and Hardware, continued

	Successor		Predecessor
Metrics information:	September 30, 2021		September 30, 2020		Change		% Change
Consulting
Billable Resources		2,232		1,437		795		55	%
Communications
NaaS Locations		10,407		5,419		4,988		92	%
SD - WAN Locations		6,321		2,783		3,538	n/m
Hosted UCaaS Profiles*		301,715		277,610		24,105		9	%

* Includes Hawaii Hosted UCaaS Profiles

Revenue

IT Services and Hardware segment revenue for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 increased $35.5 million as compared to the comparable period in the prior year. Consulting revenue is the most significant contributor in which revenue increased $28.7 million in the combined Predecessor and Successor periods included within the three months ended September 30, 2021 as compared to the same period in the prior year due to obtaining new projects throughout 2020 which continue to bill and grow in 2021. Cloud revenue increased $4.2 million for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 as compared to the comparable period in 2020 due to providing ongoing monitoring and management services to new customers obtained in 2020 that continue to bill in 2021 in addition to an increase in professional services projects. Communications revenue increased $0.4 million for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 as compared to the same period in the prior year. The increase in revenue as a result of customers migrating to newer technologies which has increased the Company’s Hosted UCaaS profiles, NaaS locations and SD-WAN locations was partially offset by the decline in legacy communications revenue. The increase in Infrastructure Solutions revenue is due primarily to increased revenue associated with professional services projects.

IT Services and Hardware segment revenue increased $99.9 million for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 as compared to the same period in the prior year primarily due to growth in the Consulting practice of $76.7 million and other similar trends that impacted the quarter. In addition, Communications strategic revenue growth in 2021 was also partially offset by usage-based revenue recognized in the nine months ended September 30, 2020 associated with customers mitigating the impact of the COVID-19 pandemic on their businesses. Infrastructure Solutions revenue increased $10.2 million for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 as compared to the same period in the prior year due to lower hardware sales in the nine months ended September 30, 2020 due to the impacts of COVID-19 and higher revenue in 2021 associated with professional services projects.

Operating Costs and Expenses

IT Services and Hardware cost of services and products for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 increased $27.7 million and $80.0 million, respectively, as compared to the same periods in 2020 due to increases in payroll related costs, contractor costs, software licensing costs and regulatory fees. In the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, the increases in payroll related costs of $0.5 million and $10.9 million, respectively, and contractor costs of $25.3 million and $63.2 million, respectively, as compared to the same periods in the prior year are due to additional headcount to support the growth in the Communications and Consulting practices. Primarily as a result of the consulting projects obtained in 2020, billable resources increased by 795 persons compared to September 30, 2020. The increase in payroll related costs in both comparable periods was partially offset by higher bonus expense incurred in the third quarter of 2020 related to a one-time bonus to reward employees for their efforts during COVID-19. Higher software licensing costs were also incurred to support the revenue growth in the Communications practice.

SG&A expenses increased $1.8 million for the combined Predecessor and Successor periods included within the three months ended September 30, 2021 as compared to the comparable period in 2020 primarily due to an increase in payroll related costs and employee related costs. The increase in employee related costs is due to restrictions in certain geographies being eased and employees beginning to travel in the second and third quarters of 2021.

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IT Services and Hardware, continued

SG&A expenses increased $4.1 million for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 as compared to the same period in the prior year primarily due to an increase in payroll related costs due to additional headcount as well as employee contract termination costs incurred in the first quarter of 2020 that did not recur in 2021. These increases were partially offset by a decrease in bad debt expense due to updating our estimate of the expected impact of the economic downturn associated with the COVID-19 pandemic on the Company’s receivables in the nine months ended September 30, 2020. Employee related and travel activities increased in the nine months ended September 30, 2021 as restrictions eased; however activity continued to be limited in the first quarter of 2021 resulting in a nominal decrease in expense for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 as compared to the same period in 2020.

Depreciation and amortization expense increased $3.2 million and $3.0 million for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021, respectively, as compared to the same periods in 2020 due to additional expense of $4.2 million recorded in the Successor period related to the increased value of property, plant and equipment and intangibles as a result of fair value adjustments.

Restructuring and severance related charges recorded in the Predecessor periods included within the three and nine months ended September 30, 2021 and 2020 are associated with initiatives to reduce and contain costs.

Capital Expenditures

Capital expenditures are dependent on the timing of success-based projects. Capital expenditures for the combined Predecessor and Successor periods included within the three and nine months ended September 30, 2021 were primarily related to projects supporting the Cloud and Communications practices. In addition to success-based projects, the Company incurred $3.0 million for implementation work associated with internal software projects in the combined Predecessor and Successor periods included within the nine months ended September 30, 2021.

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Financial Condition, Liquidity, and Capital Resources

As of September 30, 2021, the Company had an accumulated deficit of $5.0 million and $1,395.9 million of outstanding indebtedness.

The Company’s primary source of cash is generated by operations. The Company generated $130.3 million of cash flows from operations in the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 and $138.9 million of cash flows from operations during the nine months ended September 30, 2020. As of September 30, 2021, the Company had $405.5 million of short-term liquidity, comprised of $5.4 million of cash and cash equivalents, $275.0 million of undrawn capacity on our Revolving Credit Facility due 2026 (defined below), and $125.1 million available under the Receivables Facility.

The Receivables Facility permits maximum borrowings of up to $215.0 million. As of September 30, 2021, the Company had borrowings of $75.1 million and $14.8 million of letters of credit outstanding under the Receivables Facility on a borrowing capacity of $215.0 million. While we expect to continue to renew this facility, we would be required to use cash, our Revolving Credit Facility due 2026, or other sources to repay any outstanding balance on the Receivables Facility if it was not renewed.

The Company’s primary uses of cash are for capital expenditures and debt service and, to a lesser extent, to fund pension and retiree medical obligations. In connection with the Merger and the initial capitalization by Parent, the Company paid $807.3 million as consideration to Common Shareholders, including restricted stock awards that vested on the Merger Date to certain employees, $155.2 million as consideration to Preferred Shareholders and $44.0 million of transaction costs primarily related to legal costs and acquisition-related advisory fees associated with the Merger. In the first quarter of 2020, as a result of terminating the Brookfield Merger Agreement, we paid an affiliate of Brookfield a termination fee of $24.8 million on March 13, 2020. The Company believes that its cash on hand, cash generated from operations, and available funding under its credit facilities will be adequate to meet its cash requirements for the next twelve months.

In connection with the Merger at the Effective Time, the Company entered into a new Credit Agreement (the "Credit Agreement") and terminated the existing Corporate Credit Agreement. The Credit Agreement provides for (i) a five-year $275 million senior secured revolving credit facility including both a letter of credit subfacility of up to $40 million and a swingline loan subfacility of up to $10 million (the “Revolving Credit Facility due 2026”) and (ii) a seven-year $150 million senior secured term loan facility (the “Term Loan due 2028”). The Revolving Credit Facility due 2026 matures in September 2026, and the Term Loan due 2028 matures in September 2028. Borrowings under the Term Loan due 2028 were used in part to refinance existing company indebtedness and for working capital and general corporate purposes.  The Company capitalized $32.0 million of costs incurred as a result of the Term Loan due 2028 as a reduction of debt. In addition, $6.1 million of costs incurred as a result of the Revolving Credit Facility due 2026 were capitalized and recorded in “Other noncurrent assets.” Borrowings under the Revolving Credit Facility due 2026 are used to provide ongoing working capital as well as other general corporate cash flow needs of the Company. At September 30, 2021, there were no outstanding borrowings under the Revolving Credit Facility due 2026, leaving $275.0 million available.

The Credit Agreement includes a springing financial covenant that requires the Company to maintain a maximum secured net leverage ratio of 5.75 to 1.00 when utilization under the Revolving Credit Facility due 2026 exceeds 35% of the commitments thereunder. In addition, the Credit Agreement contains customary affirmative and negative covenants, including but not limited to, certain restrictions on the Company's ability to incur additional indebtedness, create liens, pay dividends, make certain investments, prepay other indebtedness, sell, transfer, lease, or dispose of assets and enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions.

The Credit Agreement is subject to customary events of default (which are in some cases subject to certain exceptions, thresholds and grace periods), including, but not limited to, nonpayment of principal or interest, failure to perform or observe covenants, breaches of representations and warranties, cross payment defaults of any indebtedness having an aggregate outstanding principal amount of not less than the greater of $112.0 million and 3.75% of consolidated tangible assets, and cross acceleration to certain other indebtedness, certain bankruptcy-related events or proceedings, the entry of final monetary judgments or orders, ERISA defaults, invalidity of collateral documents or material guarantees and certain change of control events. If the Company were to violate any of its covenants and were unable to cure such default or obtain a waiver, it would be considered a default. If the Company were in default under the Credit Agreement, no additional borrowings under this facility would be available until the default was waived or cured.

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In the second quarter of 2021, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit availability and renew the facility. The amendments extended the facility’s renewal date until June 2023 and the facility’s termination date to June 2024. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was increased from $200.0 million to $215.0 million in the aggregate. In addition, the amendments removed the provision that the LIBOR rate for the Receivables Facility may not fall below 0.75%. Capacity on the AR facility is calculated and will continue to be calculated based on the quantity and quality of outstanding accounts receivables. Therefore, if the Company experiences declines in revenue or extends discounts to customers, the capacity could be negatively impacted and reduce our short term liquidity. Management is continuously monitoring liquidity to ensure sufficient cash is available. 

As of September 30, 2021, the Company was in compliance with the Credit Agreement covenants and ratios.

Cash Flows

Cash provided by operating activities during the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 totaled $130.3 million, a decrease of $8.6 million compared to the same period in 2020. The decrease is due primarily to increased transaction and termination costs of $10.7 million, loss on termination of interest rate swaps of $20.1 million and payment to employees for the partial year bonus per the terms of the Merger Agreement, partially offset by cash receipt in the third quarter of 2021 for a long term revenue contract that was paid in advance as well as lower restructuring and severance payments in 2021 compared to the same period in the prior year.

Cash flows used in investing activities during the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 and nine months ended September 30, 2020 totaled $1,864.1 million and $160.8 million, respectively. Cash flows used in investing activities in the Successor period include $1,620.7 million related to consideration transferred associated with the Merger Agreement.  Consideration transferred includes payments to Common Shareholders, payments to Preferred Shareholders, and the extinguishment of existing debt and accrued interest under the Corporate Credit Agreement. In addition, cash flows used in investing activities for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 includes the acquisition of fiber assets from Paniolo Cable Company, LLC for $51.8 million and increased capital expenditures of $41.4 million compared to the same period in the prior year.

Cash flows provided by financing activities during the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 and nine months ended September 30, 2020 totaled $1,722.0 million and $19.3 million, respectively. Cash flows provided by financing activities during the combined Predecessor and Successor periods included within the nine months ended September 30, 2021 are primarily related to the Merger and capital contributions by Red Fiber Parent LLC. The issuance of the Term Loan due 2028 and issuance of the Paniolo fiber assets financing also contributed financing cash inflows of $173.0 million. These increases were partially offset by debt issuance costs associated with the Term Loan due 2028 and payments on the Receivables Facility of $106.7 million. In the nine months ended September 30, 2020, the Company borrowed $48.0 million on the Receivables Facility.

Indentures

The Company’s Senior Notes are governed by indentures which contain covenants that, among other things, limit the Company’s ability to incur additional debt or liens, pay dividends or make other restricted payments, sell, transfer, lease or dispose of assets and make investments or merge with another company. The Company is in compliance with all of its debt indentures as of September 30, 2021. While the Company is no longer a SEC registrant or issuer following the merger transaction, certain covenants included in the 7 ¼% Notes due 2023 and the Cincinnati Bell Telephone Notes due 2028 require the Company to make ongoing voluntary filings with the SEC. Subsequent to September 30, 2021, the Company filed an extension with the SEC to extend the filing deadline from November 15, 2021, the required filing date for a non-accelerated filer, to November 22, 2021. However, due to the engagement of a new independent auditor and complexity of the evaluation, accounting and financial statement presentation and disclosures as a result of the Merger, the Company’s periodic report on the Form 10-Q was not filed timely causing the Company to no longer be in compliance with these reporting requirements. The Company is actively working to resolve all past due filings with the SEC.

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Regulatory Matters

Universal Services

On June 1, 2021, the FCC released an Order addressing Hawaiian Telcom’s Petition for Waiver in which it requested that the FCC modify its CAF II buildout obligation to account for the 523 locations destroyed or isolated by the Kilauea Volcano eruptions that began in May 2018. The FCC granted Hawaiian Telcom’s request relative to the 370 locations for which Hawaiian Telcom had completed its CAF II deployment prior to the locations being destroyed by the volcano. The additional 153 locations included in Hawaiian Telcom’s original request were not included in the FCC Order after Hawaiian Telcom informed the FCC that it had identified CAF II eligible alternate locations in other areas. Hawaiian Telcom anticipates that it will be able to meet its buildout obligation to these alternative locations by the end of 2021.

Refer to the Company’s Annual Report on Form 10-K for the year ended 2020 for a complete description of regulatory matters.

Contingencies

In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with accounting principles generally accepted in the United States. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

Critical Accounting Policies

The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Application of these principles requires management to make estimates or judgments that affect the amounts reported in the accompanying Condensed Consolidated Financial Statements and information available as of the date of the financial statements. As this information changes, the financial statements could reflect different estimates or judgments.

Business Combinations — In accounting for business combinations, we apply the accounting requirements of FASB ASC 805, “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period.

The Company’s most critical accounting policies and estimates are described in its Annual Report on Form 10-K for the year ended December 31, 2020. With the exception of the addition of business combinations as discussed above, there have been no other material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended December 31, 2020.

Recently Issued Accounting Standards

Refer to Note 1 of the Condensed Consolidated Financial Statements for further information on recently issued accounting standards. The adoption of new accounting standards did not have a material impact on the Company’s financial results for the combined Predecessor and Successor periods included within the nine months ended September 30, 2021.

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Item 3.     Quantitative and Qualitative Disclosures About Market Risk

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for a description of the Company's market risks.

Item 4.     Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Cincinnati Bell Inc.’s management, with the participation of the Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in SEC Rule 13a-15(e)) as of the end of the period covered by this report. Based on this evaluation, Cincinnati Bell Inc.’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, such controls and procedures were effective.

(b) Changes in internal control over financial reporting.

Cincinnati Bell Inc.’s management, with the participation of the Chief Executive Officer and Chief Financial Officer, have evaluated any changes in the Company’s internal control over financial reporting that occurred during the third quarter of 2021 and have concluded that there were no changes to Cincinnati Bell Inc.’s internal control over financial reporting during the third quarter of 2021 that materially affect, or are reasonably likely to materially affect, Cincinnati Bell Inc.’s internal control over financial reporting. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact to their design and operating effectiveness.

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PART II. OTHER INFORMATION

Item 1.     Legal Proceedings

Cincinnati Bell and its subsidiaries are involved in a number of legal proceedings. Liabilities are established for legal claims when losses associated with the claims are judged to be probable and the loss can be reasonably estimated. In many lawsuits and arbitrations, including most class action lawsuits, it is not possible to determine whether a liability has been incurred or to estimate the amount of the liability until the case is close to resolution, in which case a liability will not be recognized until that time. Based on information currently available, consultation with counsel, available insurance coverage and recognized liabilities, the Company believes that the eventual outcome of all claims will not, individually or in the aggregate, have a material effect on the Company’s financial position or results of operations.

Item 1A.     Risk Factors

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for a comprehensive listing of the Company’s risk factors. With the exception of the risks described below related to our indebtedness, there are no material changes to existing risks for the Successor period and Predecessor period included within the nine months ended September 30, 2021.

Risks Related to Our Indebtedness

The Company’s debt could limit its ability to fund operations, raise additional capital, and fulfill its obligations, which, in turn, would have a material adverse effect on the Company’s businesses and prospects generally.

In connection with the Merger, in September 2021, the Company entered into a new Credit Agreement (the "Credit Agreement") and terminated the Company’s existing corporate credit agreement. The Credit Agreement provides for (i) a five-year $275 million senior secured revolving credit facility including both a letter of credit subfacility of up to $40 million and a swingline loan subfacility of up to $10 million (the “Revolving Credit Facility”) and (ii) a seven-year $150 million senior secured term loan facility (the “Term Loan”). The Revolving Credit Facility matures in September 2026, and the Term Loan matures in September 2028. Borrowings under the Term Loan were used in part to refinance existing company indebtedness, and for working capital and general corporate purposes. At September 30, 2021, there were no outstanding borrowings under the Revolving Credit Facility, leaving $275.0 million available.

The Company’s debt has important consequences, including the following:

• the Company is required to use a substantial portion of its cash flow from operations to pay principal and interest on our debt, thereby reducing the availability of cash flow to fund working capital, capital expenditures, strategic acquisitions, investments and alliances, and other general corporate requirements;

• there is a variable interest rate on a portion of its debt which will increase if the market interest rates increase;

• the Company’s debt increases its vulnerability to adverse changes in the credit markets, which adverse changes could increase the Company's borrowing costs and limit the availability of financing;

• the Company’s debt service obligations limit its flexibility to plan for or react to changes in its business and the industries in which it operates;

• the Company’s level of debt and shareowners’ deficit may restrict it from raising additional financing on satisfactory terms to fund working capital, capital expenditures, strategic acquisitions, investments and alliances, and other general corporate requirements; and

• the Company’s debt instruments contain limitations on the Company and require the Company to comply with specified financial ratios and other restrictive covenants.  Failure to comply with these covenants, if not cured or waived, could limit availability to the cash required to fund the Company's operations and general obligations and could result in the Company’s dissolution, bankruptcy, liquidation or reorganization.

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The Company’s credit agreement and other indebtedness impose significant restrictions on the Company.

The Company’s debt instruments impose, and the terms of any future debt may impose, operating and other restrictions on the Company.  These restrictions affect, and in many respects limit or prohibit, among other things, the Company’s ability to:

• incur additional indebtedness;

• create liens;

• make investments;

• enter into transactions with affiliates;

• sell assets;

• guarantee indebtedness;

• declare or pay dividends or make other distributions to shareholders;

• repurchase equity interests;

• enter into agreements that restrict dividends or other payments from subsidiaries;

• issue or sell capital stock of certain of our subsidiaries;

• consolidate, merge, or transfer all or substantially all of our assets and the assets of our subsidiaries on a consolidated basis; and

• change our fiscal year.

The Credit Agreement also requires the Company to achieve and maintain compliance with specified financial ratios.

The restrictions contained in the terms of the Credit Agreement and our other debt instruments could:

• limit the Company’s ability to plan for or react to market conditions or meet capital needs or otherwise restrict the Company’s activities or business plans; and

• adversely affect the Company’s ability to finance our operations, strategic acquisitions, investments or alliances, other capital needs, or to engage in other business activities that would be in our interest.

A breach of any of the debt's restrictive covenants or the Company’s inability to comply with the required financial ratios would result in a default under some or all of the debt agreements.  During the occurrence and continuance of a default, lenders may elect to declare all outstanding borrowings, together with accrued interest and other fees, to be immediately due and payable.  Additionally, under the Credit Agreement, the lenders may elect not to provide loans under the Revolving Credit Facility until such default is cured or waived.  The Company’s debt instruments also contain cross-acceleration provisions, which generally cause each instrument to be subject to early repayment of outstanding principal and related interest upon a qualifying acceleration of any other debt instrument, subject to certain materiality thresholds.  Failure to comply with these covenants, if not cured or waived, would limit the cash available to the Company required to fund operations and our general obligations and could result in the Company’s dissolution, bankruptcy, liquidation or reorganization.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

During the Predecessor period of January 1, 2021 to September 7, 2021, the Company had no unregistered sales of equity securities. The Company also had no purchases of its common stock during the Predecessor period of January 1, 2021 to September 7, 2021.

Item 3.     Defaults upon Senior Securities

None.

Item 4.     Mine Safety Disclosure

None.

Item 5.     Other Information

No reportable items.

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Item 6.     Exhibits

			Incorporated by Reference
Exhibit Number	Exhibit Description	Form	Filing Date	Exhibit No.	SEC File No.	Filed Herewith
2.1	Agreement and Plan of Merger, dated as of March 13, 2020, by and among Cincinnati Bell Inc., Red Fiber Parent LLC and RF Merger Sub Inc.	8-K	3/13/2020	2.1	1-8519
3.1	Amended and Restated Articles of Incorporation of Cincinnati Bell Inc.	8-K	4/30/2008	3.1	1-8519
3.2	Amendment to the Amended and Restated Articles of Incorporation of Cincinnati Bell Inc.	8-K	10/5/2016	3.1	1-8519
3.3	Second Amended and Restated Regulations of Cincinnati Bell Inc.	8-K	9/7/2021	3.1	1-8519
10.1	Credit Agreement, dated as of September 7, 2021, among Red Fiber Parent LLC, RF Merger Sub Inc., Goldman Sachs Bank USA, as administrative and collateral agent, each L/C Issuer and Swing Line Lender; each other Lender, Cincinnati Bell Inc. (and as successor in interest to RF Merger Sub Inc.) and other parties thereto from time to time.	8-K	9/7/2021	10.1	1-8519
31.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					+
31.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					+
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					+
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					+
101	The following financial statements from Cincinnati Bell Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Shareholders’ Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

The Company's reports on Form 10-K, 10-Q, and 8-K are available free of charge in the Investor Relations section of the Company's website: http://www.cincinnatibell.com. The Company will furnish any other exhibit at cost.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Cincinnati Bell Inc.
Date:	May 13, 2022	/s/ Joshua T. Duckworth
		Joshua T. Duckworth
		Chief Financial Officer
Date:	May 13, 2022	/s/ Suzanne E. Maratta
		Suzanne E. Maratta
		Chief Accounting Officer

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EX-31.1

Exhibit 31.1

Certifications

I, Leigh R. Fox, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 13, 2022	/s/ Leigh R. Fox
		Leigh R. Fox
		Chief Executive Officer

EX-31.2

Exhibit 31.2

Certifications

I, Joshua T. Duckworth, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 13, 2022	/s/ Joshua T. Duckworth
		Joshua T. Duckworth
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cincinnati Bell Inc. (the “Company”) on Form 10-Q for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Leigh R. Fox, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Leigh R. Fox

Leigh R. Fox

Chief Executive Officer

May 13, 2022

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cincinnati Bell Inc. (the “Company”) on Form 10-Q for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joshua T. Duckworth, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Joshua T. Duckworth

Joshua T. Duckworth

Chief Financial Officer

May 13, 2022

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Document and Entity Information Document	9 Months Ended
	Sep. 30, 2021 shares
Cover [Abstract]
Entity Registrant Name	CINCINNATI BELL INC.
Entity Central Index Key	0000716133
Entity Current Reporting Status	No
Entity Interactive Data Current	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	0
Entity File Number	1-8519
Entity Tax Identification Number	31-1056105
Entity Address, Address Line One	221 East Fourth Street
Entity Address, City or Town	Cincinnati
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45202
City Area Code	513
Local Phone Number	397-9900
Entity Incorporation, State or Country Code	OH
Document Quarterly Report	true
Document Transition Report	false

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Condensed Consolidated Statements of Operations - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue	$ 111.4	$ 314.6	$ 389.5	$ 1,138.7	$ 1,149.5
Costs and expenses
Cost of services and products, excluding items below	60.5	174.6	203.9	619.5	591.0
Selling, general and administrative, excluding items below	22.1	74.2	86.0	243.4	255.3
Depreciation and amortization	30.2	52.1	71.9	194.9	220.8
Restructuring and severance related charges	0.0	0.3	0.8	1.2	16.4
Transaction and integration costs	0.0	51.5	2.2	54.8	33.8
Gain on sale of assets, net	0.0	(2.8)	0.0	(2.8)	0.0
Total operating costs and expenses	112.8	349.9	364.8	1,111.0	1,117.3
Operating (loss) income	(1.4)	(35.3)	24.7	27.7	32.2
Interest expense	6.4	23.2	33.4	89.1	100.6
Other components of pension and postretirement benefit plans (benefit) expense	(1.1)	2.1	2.6	6.4	9.0
Loss on extinguishment of debt	0.0	10.7	0.0	10.7	0.0
Other (income) expense, net	(0.3)	19.7	(0.2)	19.7	(1.2)
Loss before income taxes	(6.4)	(91.0)	(11.1)	(98.2)	(76.2)
Income tax benefit	(1.4)	(17.3)	(2.9)	(16.9)	(26.2)
Net loss	(5.0)	(73.7)	(8.2)	(81.3)	(50.0)
Preferred stock dividends	0.0	2.4	2.6	7.6	7.8
Net loss applicable to common shareowners	$ (5.0)	$ (76.1)	$ (10.8)	$ (88.9)	$ (57.8)

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (5.0)	$ (73.7)	$ (8.2)	$ (81.3)	$ (50.0)
Other comprehensive (loss) income, net of tax:
Foreign currency translation (loss) gain	(1.2)	(1.4)	2.0	1.2	(2.1)
Cash flow hedges:
Unrealized loss on cash flow hedges arising during the period, net of tax of ($0.2), ($0.1), $0.0, ($3.3)	0.0	(0.6)	(0.5)	(0.1)	(11.3)
Reclassification adjustment for net losses included in net income, net of tax of $4.7, $0.5, $5.8, $1.4	0.0	16.2	1.8	19.7	4.6
Defined benefit plans:
Net gain (loss) arising from remeasurement during the period, net of tax of $1.0, $1.8, ($3.4)	0.0	0.0	3.2	6.0	(11.5)
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.1), ($0.4), ($0.4)	0.0	(0.3)	(0.5)	(1.3)	(1.5)
Amortization of net actuarial loss included in net income, net of tax of $1.0, $1.1, $3.6, $3.3	0.0	3.1	3.7	12.0	11.1
Reclassification adjustment for pension settlement charges included in net income, net of tax of $0.2	0.0	0.0	0.0	0.0	0.9
Total other comprehensive (loss) income	(1.2)	17.0	9.7	37.5	(9.8)
Total comprehensive (loss) income	$ (6.2)	$ (56.7)	$ 1.5	$ (43.8)	$ (59.8)

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Unrealized (loss) gain on cash flow hedges arising during the period, tax	$ (0.2)	$ (0.1)	$ 0.0	$ (3.3)
Reclassification adjustment for net losses included in net income, tax	4.7	0.5	5.8	1.4
Net gain (loss) arising from remeasurement during the period, tax		1.0	1.8	(3.4)
Amortization of prior service benefits included in net income, tax	(0.1)	(0.1)	(0.4)	(0.4)
Amortization of net actuarial loss included in net income, tax	$ 1.0	$ 1.1	$ 3.6	3.3
Reclassification adjustment for pension settlement charges included in net income, tax				$ 0.2

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Condensed Consolidated Statements of Shareowners' Equity (Deficit) - USD ($) shares in Millions, $ in Millions	Total	Cumulative Convertible Preferred Shares [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2019	$ (140.0)	$ 129.4	$ 0.5	$ 2,676.2	$ (2,776.0)	$ (170.1)
Beginning Balance, Shares at Dec. 31, 2019		3.1
Beginning Balance, Shares at Dec. 31, 2019			50.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(50.0)				(50.0)
Other comprehensive income (loss)	(9.8)					(9.8)
Stock-based compensation	4.2			4.2
Dividends on preferred stock	(7.8)			(7.8)
Shares issued under employee plans			$ 0.0	0.0
Shares issued under employee plans, Shares			0.3
Shares purchased under employee plans and other	(1.1)			(1.1)
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2020	(204.5)	$ 129.4	$ 0.5	2,671.5	(2,826.0)	(179.9)
Ending Balance, Shares at Sep. 30, 2020		3.1
Ending Balance, Shares at Sep. 30, 2020			50.7
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2020	(204.6)	$ 129.4	$ 0.5	2,672.9	(2,817.8)	(189.6)
Beginning Balance, Shares at Jun. 30, 2020		3.1
Beginning Balance, Shares at Jun. 30, 2020			50.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8.2)				(8.2)
Other comprehensive income (loss)	9.7					9.7
Stock-based compensation	1.2			1.2
Dividends on preferred stock	(2.6)			(2.6)
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2020	(204.5)	$ 129.4	$ 0.5	2,671.5	(2,826.0)	(179.9)
Ending Balance, Shares at Sep. 30, 2020		3.1
Ending Balance, Shares at Sep. 30, 2020			50.7
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2020	(191.1)	$ 129.4	$ 0.5	2,670.3	(2,831.6)	(159.7)
Beginning Balance, Shares at Dec. 31, 2020		3.1
Beginning Balance, Shares at Dec. 31, 2020			50.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(81.3)				(81.3)
Other comprehensive income (loss)	37.5					37.5
Stock-based compensation	4.3			4.3
Dividends on preferred stock	(7.6)			(7.6)
Equity-based award modification	(10.2)			(10.2)
Shares issued under employee plans, Shares			0.2
Shares purchased under employee plans and other	(2.0)			(2.0)
Ending Balance, Shareowners' Equity (Deficit) at Sep. 07, 2021	(250.4)	$ 129.4	$ 0.5	2,654.8	(2,912.9)	(122.2)
Ending Balance, Shares at Sep. 07, 2021		3.1
Ending Balance, Shares at Sep. 07, 2021			50.9
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2021	(183.2)	$ 129.4	$ 0.5	2,665.3	(2,839.2)	(139.2)
Beginning Balance, Shares at Jun. 30, 2021		3.1
Beginning Balance, Shares at Jun. 30, 2021			50.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(73.7)				(73.7)
Other comprehensive income (loss)	17.0					17.0
Stock-based compensation	2.1			2.1
Dividends on preferred stock	(2.4)			(2.4)
Equity-based award modification	(10.2)			(10.2)
Ending Balance, Shareowners' Equity (Deficit) at Sep. 07, 2021	(250.4)	$ 129.4	$ 0.5	2,654.8	(2,912.9)	(122.2)
Ending Balance, Shares at Sep. 07, 2021		3.1
Ending Balance, Shares at Sep. 07, 2021			50.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5.0)
Other comprehensive income (loss)	(1.2)
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2021	1,709.9			1,716.1	(5.0)	(1.2)
Ending Balance, Shares at Sep. 30, 2021			0.5
Beginning Balance, Shareowners' Equity (Deficit) at Sep. 08, 2021	0.0	$ 0.0	$ 0.0	0.0	0.0	0.0
Beginning Balance, Shares at Sep. 08, 2021		0.0
Beginning Balance, Shares at Sep. 08, 2021			0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5.0)				(5.0)
Other comprehensive income (loss)	(1.2)					(1.2)
Capital contributions by Red Fiber Parent LLC	1,716.1			1,716.1
Capital contributions by Red Fiber Parent LLC, Shares			0.5
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2021	$ 1,709.9			$ 1,716.1	$ (5.0)	$ (1.2)
Ending Balance, Shares at Sep. 30, 2021			0.5

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 5.4	$ 12.2
Receivables, less allowances of $0.9 and $23.0	337.5	369.6
Inventory, materials and supplies	61.5	35.5
Prepaid expenses	37.7	33.5
Other current assets	7.1	8.3
Total current assets	449.2	459.1
Property, plant and equipment, net	1,956.9	1,729.1
Operating lease right-of-use assets	41.4	37.4
Goodwill	646.3	161.5
Intangible assets, net	961.2	148.1
Deferred income tax assets	6.9	82.5
Other noncurrent assets	28.5	50.9
Total assets	4,090.4	2,668.6
Current liabilities
Current portion of long-term debt	13.0	21.8
Accounts payable	319.9	299.2
Unearned revenue and customer deposits	56.3	68.9
Accrued taxes	25.3	28.1
Accrued interest	24.9	26.7
Accrued payroll and benefits	36.3	50.5
Other current liabilities	38.9	50.9
Total current liabilities	514.6	546.1
Long-term debt, less current portion	1,382.9	1,949.9
Operating lease liabilities	38.0	33.6
Pension and postretirement benefit obligations	149.6	200.2
Pole license agreement obligation	46.7	36.7
Deferred income tax liability	147.7	10.9
Other noncurrent liabilities	101.0	82.3
Total liabilities	2,380.5	2,859.7
Shareowners’ equity (deficit)
Preferred stock, 2,357,299 shares authorized, 155,250 shares (3,105,000,depository shares) of 6 3/4% Cumulative Convertible Preferred Stock issued and outstanding at December 31, 2020; liquidation preference $1,000 per share ($50 per depositary share)	0.0	129.4
Common shares, $.01 par value; 96,000,000 shares authorized; 500,000 and 50,680,605 shares issued and outstanding at September 30, 2021 and December 31, 2020	0.0	0.5
Additional paid-in capital	1,716.1	2,670.3
Accumulated deficit	(5.0)	(2,831.6)
Accumulated other comprehensive loss	(1.2)	(159.7)
Total shareowners’ equity (deficit)	1,709.9	(191.1)
Total liabilities and shareowners’ equity (deficit)	$ 4,090.4	$ 2,668.6

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2020	Sep. 30, 2021
Statement Of Financial Position [Abstract]
Allowance for receivables	$ 23,000,000.0	$ 900,000
Preferred Stock, Shares Authorized	2,357,299
Preferred Stock, 6 3/4% Cumulative Convertible, Shares Issued	155,250
Preferred Stock, 6 3/4% Cumulative Convertible, Shares Outstanding	155,250
Preferred Stock, Depository Shares	3,105,000
Preferred Stock, Dividend Rate, Percentage	6.75%
Preferred Stock, Liquidation Preference Per Share	$ 1,000
Preferred Stock Liquidation Depository Per Share	$ 50
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	96,000,000	96,000,000
Common Stock, Shares, Issued	50,680,605	500,000
Common Stock, Shares, Outstanding	50,680,605	500,000

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	1 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020
Cash flows from operating activities
Net loss	$ (5.0)	$ (81.3)	$ (50.0)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	30.2	194.9	220.8
Loss on extinguishment of debt	0.0	10.7	0.0
Provision for loss on receivables	0.9	2.1	11.6
Noncash portion of interest (income) expense	(0.3)	4.0	4.1
Deferred income taxes	(1.1)	(21.1)	(26.4)
Pension and other postretirement payments (in excess of) less than expense	(1.9)	(0.2)	0.3
Stock-based compensation	0.0	4.3	4.2
Other, net	(0.3)	(5.2)	(0.7)
Changes in operating assets and liabilities:
(Increase) decrease in receivables	(20.3)	51.1	14.8
(Increase) decrease in inventory, materials, supplies, prepaid expenses and other current assets	(3.2)	(29.4)	12.2
(Decrease) increase in accounts payable	(51.7)	49.1	(56.6)
(Decrease) increase in accrued and other current liabilities	(37.5)	2.8	(12.2)
(Increase) decrease in other noncurrent assets	(2.1)	2.1	9.9
Increase in other noncurrent liabilities	29.9	8.8	6.9
Net cash (used in) provided by operating activities	(62.4)	192.7	138.9
Cash flows from investing activities
Capital expenditures	(35.4)	(165.2)	(159.2)
Acquisition of business	(1,620.7)	0.0	0.0
Acquisition of Paniolo fiber assets	(1.3)	(50.5)	0.0
Proceeds from sale of assets	0.0	9.1	0.0
Other, net	0.0	(0.1)	(1.6)
Net cash used in investing activities	(1,657.4)	(206.7)	(160.8)
Cash flows from financing activities
Capital contributions by Red Fiber Parent LLC	1,716.1	0.0	0.0
Proceeds from issuance of long-term debt	150.0	23.0	0.0
Net (decrease) increase in corporate credit and receivables facilities with initial maturities less than 90 days	(108.7)	9.0	48.0
Repayment of debt	(1.4)	(13.4)	(19.3)
Debt issuance costs	(42.0)	(0.8)	(0.5)
Dividends paid on preferred stock	0.0	(7.8)	(7.8)
Other, net	0.0	(2.0)	(1.1)
Net cash provided by financing activities	1,714.0	8.0	19.3
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.0	0.0	(0.2)
Net decrease in cash, cash equivalents and restricted cash	(5.8)	(6.0)	(2.8)
Cash, cash equivalents and restricted cash at beginning of period	11.2	17.2	11.6
Cash, cash equivalents and restricted cash at end of period	5.4	11.2	8.8
Noncash investing and financing transactions:
Acquisition of property by assuming debt and other noncurrent liabilities	3.8	3.8	4.0
Acquisition of property on account	$ 46.3	$ 54.9	$ 23.7

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Description of Business and Accounting Policies

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Accounting Policies

1.    Description of Business and Accounting Policies

Organization — On March 13, 2020, the Company (as defined below), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Red Fiber Parent LLC, a Delaware limited liability company (“Parent”), and RF Merger Sub Inc., an Ohio corporation and directly wholly owned subsidiary of Parent (“Merger Sub”). On September 7, 2021 (the “Closing Date” or “Merger Date”), upon the terms and subject to the conditions set forth in the Merger Agreement, and in accordance with the applicable provisions of the Ohio General Corporation Law (the “OGCL”), Merger Sub merged with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). At the effective time of the Merger (the “Effective Time”), the separate corporate existence of Merger Sub ceased, and the Company survived the Merger as a wholly owned private subsidiary of Parent.  As of the date of this filing, the Company has ceased to be a registrant (see Note 11), however due to contractual language in certain indentures, the Company is required to voluntarily file with the U.S. Securities and Exchange Commission (“SEC”).

As a result of the Merger, for accounting purposes, Parent is the acquirer and Cincinnati Bell Inc. is the acquiree and accounting predecessor. The financial statement presentation includes the financial statements of historical Cincinnati Bell Inc. as “Predecessor” for periods prior to the Closing Date and of the Company as “Successor” for the periods after the Closing Date. In connection with the Merger and the related accounting determination, the Company has elected to apply push-down accounting and reflect in its financial statements the fair value of its assets and liabilities. The Consolidated Financial Statements and footnotes include a black line division between the columns titled "Predecessor" and "Successor" to signify that the amounts shown for the periods prior to and following the Merger are not comparable. The Company has elected to record all expenses that were contingent on the closing of the Merger in the Predecessor period. See Note 2 for additional information on the Merger.

Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide diversified telecommunications and technology services. For ease of reference, the terms “Cincinnati Bell,” “we,” “our Company,” “the Company,” “us,” or “our” as used in this report refer to both the Predecessor and the Successor and their respective subsidiaries.

The Company generates a large portion of its revenue by serving customers in Cincinnati, Ohio, Dayton, Ohio and the islands of Hawaii. An economic downturn or natural disaster occurring in these, or a portion of these, limited operating territories could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas.

The Company has receivables with one customer, Verizon Communications Inc., which make up 15% and 20% of the outstanding accounts receivable balance at September 30, 2021 and December 31, 2020, respectively. Revenue derived from foreign operations was approximately 6% of consolidated revenue for the Successor period and each of the Predecessor periods included within the three and nine months ended September 30, 2021. Revenue derived from foreign operations was approximately 5% of consolidated revenue for the three and nine months ended September 30, 2020.

Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, other comprehensive income, financial position and cash flows for each period presented.

The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting.

The Company’s Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K.

Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”), “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions.

Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company’s accounting policies in the Successor Period are consistent with the accounting policies in the Predecessor Period.  

Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash consists of funds held in an escrow account associated with the acquisition of substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 2 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows:

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	5.4	$	12.2
Restricted cash included in Other noncurrent assets		—		5.0
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows	$	5.4	$	17.2

Restructuring Liability — As of September 30, 2021, restructuring liabilities have been established for employee separations. As of September 30, 2021 and December 31, 2020, $0.1 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets.

Income and Operating Taxes

Income taxes — In accordance with ASC 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of permanent items such as nondeductible transaction costs, portions of officers’ compensation, and meals and entertainment expenses that are not fully deductible for tax.

Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price.

Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the requisite service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, expected holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire.

In connection with the consummation of the Merger, certain previously granted stock-based awards vested on the Closing Date per the terms of the change of control clauses in each plan and were paid at the share purchase price of $15.50. As a result, the following awards vested and were paid on the date of acquisition: (i) time-based restricted stock units and performance-based stock units associated with the 2019 – 2021 long-term incentive plan granted under the 2017 Long-Term Incentive Plan; (ii) time-based restricted stock units granted to non-employee directors in 2020 under the 2017 Stock Plan for Non-Employee Directors; and (iii) time-based restricted stock units granted under the Hawaiian Telcom 2010 Equity Incentive Plan in the first quarter of 2018 which the Company assumed responsibility for the eventual payout upon the acquisition of Hawaiian Telcom. Due to the accelerated vesting and cash payment of these awards, the Company recorded additional compensation expense of $9.3 million to “Selling, general and administrative” expense in the Predecessor period on the Condensed Consolidated Statements of Operations. As of September 30, 2021, there are no outstanding awards granted under the 2017 Long-Term Incentive Plan, 2017 Stock Plan for Non-Employee Directors and Hawaiian Telcom 2010 Equity Incentive Plan.

The Company granted cash-settled awards of $10.5 million in 2020 that originally vested at the end of a three year period. In accordance with the terms of these awards, vesting and payment of the first 25% of the award was accelerated with the consummation of the Merger. The awards remain outstanding in the Successor period and will be paid out 25% at the six month anniversary of the Closing Date and 50% will be paid out on the 18 month anniversary of the Closing Date. The remaining unrecognized compensation expense for the cash-settled awards will be recognized ratably over the remaining 18 months of the award.  

Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period.

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. These amendments are effective as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740), and clarifies certain aspects of the current guidance to promote consistency among reporting entities, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. Most amendments within ASU 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted the standard effective January 1, 2021. The Company has evaluated the amendments that must be applied on a retrospective or modified retrospective basis and concluded that no adjustments are necessary. The Company has applied all other amendments on a prospective basis, and the changes did not have a material effect on its condensed consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.

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Mergers and Acquisitions

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Mergers and Acquisitions

2.    Mergers and Acquisitions

Acquisition by Red Fiber Parent LLC

On September 7, 2021, pursuant to the Merger Agreement and in accordance with the applicable provisions of the OGCL, Parent completed the acquisition of Cincinnati Bell in an all cash transaction valued at approximately $3.1 billion, including assumption of debt of $1,357.1 million. Upon the Effective Time, the separate existence of Merger Sub ceased and the Company survived the Merger as a wholly owned subsidiary of Parent.

Pursuant to the Merger Agreement, each of Cincinnati Bell’s issued and outstanding Common Shares was converted into the right to receive $15.50 per share in cash, without interest. Effective September 7, 2021, trading of the Company’s Common Shares was suspended on the New York Stock Exchange (“NYSE”) and the Common Shares were subsequently delisted from the NYSE. On September 22, 2021, the Company redeemed Depositary Shares simultaneously with the redemption of the 6 3/4% Preferred Shares, at a redemption price of $50 per Depositary Share (equivalent to $1,000 per 6 3/4% Preferred Share), and the Depositary Shares were subsequently delisted from the NYSE.

The Company accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values, using primarily Level 3 inputs, as described in Note 8, as of the Merger Date. Transaction costs of the acquirer are not included as a component of consideration transferred but are accounted for as expenses in the period in which such costs are incurred, or, if related to the issuance of debt, capitalized as debt issuance costs. Acquisition-related transaction costs incurred as part of the Merger, primarily included advisory, legal and accounting fees.

The valuation of the assets acquired and liabilities assumed was based on estimated fair values at the Merger Date. The preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed reflect various preliminary fair value estimates and analyses, including preliminary work performed by third-party valuation specialists, which are subject to change within the measurement period as valuations are finalized. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is incomplete at September 30, 2021. The primary areas of the preliminary purchase price allocations that are not yet finalized relate to the fair values of property, plant and equipment, the valuation of intangible assets acquired, income and non-income based taxes and goodwill. The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired as of the Merger Date during the measurement period.  

Measurement period adjustments will be applied retrospectively to the Merger Date. However, given the circumstances of this acquisition which closed during the third quarter of 2021, as well as the size and complexity of the transaction, the entire purchase price allocation disclosed herein is considered provisional at this time and subject to adjustment to reflect new information obtained about factors and circumstances that existed as of the Closing Date that if known would have affected the measurement of the amounts recognized as of that date, while the measurement period remains open. We have not finalized the allocation of the purchase price as it requires extensive use of accounting estimates and valuation methodologies in the determination of such fair values. Any subsequent changes in the estimated fair values assumed upon the finalization of more detailed analysis within the measurement period will change the allocation of the purchase price and will be adjusted during the period in which the amounts are determined. The allocation of goodwill to our Entertainment and Communications reporting unit and IT Services and Hardware reporting unit is preliminary as of the date of this filing.

The purchase price for Cincinnati Bell Inc. consisted of the following:

(dollars in millions)
Cash consideration for Cincinnati Bell Inc. stock	$	807.3
Cash consideration for preferred stock		155.2
Cash consideration for debt repayment		658.2
Total purchase price	$	1,620.7

Based on fair value estimates, the purchase price has been allocated on a preliminary basis to individual assets acquired and liabilities assumed as follows:

(dollars in millions)	Cincinnati Bell Inc.
Assets acquired
Cash	$	11.2
Receivables		318.5
Inventory, materials and supplies		56.4
Prepaid expenses		5.6
Other current assets		40.5
Property, plant and equipment		1,950.7
Operating lease right-of-use assets		42.3
Goodwill		646.3
Intangible assets		969.6
Deferred tax assets		6.9
Other noncurrent assets		20.2
Total assets acquired		4,068.2
Liabilities assumed
Current portion of long-term debt		11.8
Accounts payable		381.1
Unearned revenue and customer deposits		51.2
Accrued taxes		24.6
Accrued interest		19.4
Accrued payroll and benefits		49.3
Other current liabilities		75.0
Long-term debt, less current portion		1,378.0
Operating lease liabilities		38.6
Pension and postretirement benefit obligations		151.6
Pole license agreement obligation		46.7
Deferred income tax liability		148.8
Other noncurrent liabilities		71.4
Total liabilities assumed		2,447.5
Net assets acquired	$	1,620.7

In connection with this acquisition, the Company recorded goodwill attributable to increased access to a diversified customer base, acquired workforce in the United States, Canada, United Kingdom and India with industry expertise and expected synergies. The goodwill related to this acquisition is not deductible for tax purposes.

The Company recorded definite-lived intangible assets related to the customer relationships, trade names and technology and an indefinite-lived intangible asset related to FCC licenses. The preliminary fair value of the most significant identified intangible assets, customer relationships and trade names, were valued using the multi-period excess earnings method and relief from royalty method, under the income approach. The Company applied judgment which involved the use of significant assumptions with respect to revenue growth rates, customer attrition rate, discount rate and terminal growth rate in relation to the customer relationships and royalty rates and discount rate in relation to the trade names. The preliminary fair values of the identifiable intangible assets acquired on the Merger Date were as follows:

(dollars in millions)	Fair Value		Useful Lives
Customer relationships	$	850.0	15 years
Trade names		108.0	3 to 10 years
Technology		5.0	7 years
FCC licenses and spectrum usage rights		6.6	Indefinite
Total identifiable intangible assets	$	969.6

Transaction costs were expensed as incurred and recorded to “Transaction and integration costs” on the Condensed Consolidated Statements of Operations. Cincinnati Bell Inc. incurred cumulative transaction costs associated with the Merger Agreement of $64.4 million recorded in the Predecessor periods, of which $54.6 million was recorded in the Predecessor period of 2021 and $8.7 million was recorded in the nine months ended September 30, 2020. No transaction costs related to the Merger were recorded in the Successor period. Transaction costs of $44.0 million that were paid on the Merger Date were recorded in the Predecessor period and included as an assumed liability. Additionally, $2.9 million of severance associated with a change of control clause in an employee’s contract was recorded in the Predecessor period and is expected to be paid in the fourth quarter of 2021. Transaction-related bonuses of $5.3 million were also recorded in the Predecessor period but due to timing of payroll, were paid prior to the Merger Date.

Additional expenses recorded in the Predecessor period include certain stock-based compensation awards that were accelerated upon the Merger Date, which resulted in a nonrecurring expense of $9.3 million that was recorded to SG&A, and Loss on Extinguishment of Debt of $10.7 million due to the repayment of the Corporate Credit Agreement at the Effective Time. Stock-based compensation was paid on the Merger Date and included in the cash consideration for Cincinnati Bell Inc. stock.

Subsequent to the Merger Date, the Company issued a new Credit Agreement and Term Loan due 2028 for which note issuance costs of $32.0 million were capitalized as a reduction to the outstanding debt balances and a Revolving Credit Facility due 2026 for which note issuance costs of $6.1 million were capitalized to “Other noncurrent assets” on the Condensed Consolidated Balance Sheets.

Prior to entering into the Merger Agreement, the Company previously entered into an Agreement and Plan of Merger, dated December 21, 2019, (as amended from time to time, the “Brookfield Merger Agreement”) with affiliates of the Brookfield Infrastructure Group (“Brookfield”), the infrastructure investment division of Brookfield Asset Management, which was subsequently amended. On March 13, 2020, the Company terminated the Brookfield Merger Agreement and entered into the Merger Agreement. In connection with the termination of the Brookfield Merger Agreement in the first quarter of 2020, the Company paid to an affiliate of Brookfield a termination fee of $24.8 million as required by the terms of the Brookfield Merger Agreement. The termination fee is recorded in “Transaction and integration costs” on the Condensed Consolidated Statements of Operations in the Predecessor period.

Acquisition of Paniolo Fiber Assets

On August 31, 2021, the Company acquired substantially all of the operating assets of Paniolo Cable Company, LLC (the “Paniolo Acquisition”), previously held by the bankruptcy estate of Paniolo, which include inter-island submarine and middle-mile terrestrial fiber infrastructure assets in Hawaii as well as central offices and landing stations for the submarine fiber. The Company accounted for the Paniolo Acquisition as an asset acquisition under ASC 805-10-55 “Business Combinations” because the assets acquired from Paniolo do not include an assembled workforce, and the gross value of the assets acquired meets the screen test in ASC 805-10-55-5A related to substantially all of the fair value being concentrated in a single asset or group of assets (i.e., the fiber infrastructure assets) and, thus, the assets are not considered a business. The acquisition of Paniolo’s assets augments the Company’s existing backbone network and increases the Company’s total submarine and terrestrial fiber footprint by more than 400 miles.  

The aggregate purchase price paid upon closing of the Paniolo Acquisition after transactional costs was $52.3 million, consisting of $29.3 million in cash and $23.0 million in committed purchase money financing. As of September 30, 2021 an insignificant amount of transaction costs are recorded in “Accounts Payable” on the Condensed Consolidated Balance Sheets. The assets are recorded as network equipment and buildings in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets. As of September 30, 2021, $0.5 million and $22.4 million of the committed purchase money financing was recorded in “Current portion of long-term debt” and “Long-term debt, less current portion,” respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2020, the Company funded $5.0 million to an escrow account to fund a portion of the purchase price and entered into an agreement with Paniolo to maintain the Paniolo network prior to the close of the acquisition. This escrow amount was classified as restricted cash and recorded in “Other noncurrent assets” on the Condensed Consolidated Balance Sheets as of December 31, 2020.

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Revenue

9 Months Ended

Sep. 30, 2021

Revenue From Contract With Customer [Abstract]

Revenue

3.    Revenue

The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States ("SEA-US") trans-Pacific submarine cable system.

Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, typically have contracts with a duration of one to five years and automatically renew on a month-to-month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year. Contracts associated with the SEA-US cable system typically range from 15 to 25 years and payment is prepaid.

The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with varied renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays for such good or service will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("Hawaiian Telcom"), the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts typically have a duration ranging from 15 to 25 years.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, or a series of distinct goods or services, and is the unit of account defined in ASC Topic 606. The transaction price identified in the contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contract modifications for changes to services provided are routine throughout the term of our contracts. In most instances, contract modifications are for the addition or reduction of services that are distinct, and price changes are based on the stand-alone selling price of the service and, as such, are accounted for on a prospective basis as a new contract.

Goods and services are sold individually, or a contract may include multiple goods or services. For contracts with multiple goods and services, the transaction price identified in the contract is allocated to each performance obligation using the stand-alone selling price of each distinct good or service in the contract.

Certain customers of the Company may receive cash-based rebates based on volume of sales, which are accounted for as variable consideration. Potential rebates are considered at contract inception in our estimate of transaction price based on the estimated projection of sales volume. Estimates are reassessed quarterly.

Performance obligations are satisfied either over time as services are performed or at a point in time. Substantially all of our service revenue is recognized over time. For services transferred over time, the Company has elected the practical expedient to recognize revenue based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are provided evenly over the month and are substantially the same over the life of the contract. As the Company has elected the practical expedients detailed at ASC 606-10-50-13, revenue for these unsatisfied performance obligations that will be billed in future periods has not been disclosed.

As of September 30, 2021, our estimated revenue, including a financing component, expected to be recognized in the future related to performance obligations associated with customer contracts that are unsatisfied (or partially unsatisfied) is $138.0 million. Approximately 75% of this revenue is related to a new IRU contract entered into in the Successor period to provide dedicated fiber routes for a period of 20 years. Certain IRU contracts extend for periods of up to 30 years and are invoiced at the beginning of the contract term. The revenue from such contracts is recognized over time as services are provided over the contract term. The expected revenue to be recognized for existing IRU contracts is as follows:

(dollars in millions)
Three months ended December 31, 2021	$	0.8
2022		4.0
2023		6.1
2024		7.9
2025		7.9
Thereafter		111.3

Entertainment and Communications

The Company has identified four distinct performance obligations in the Entertainment and Communications segment, namely Data, Voice, Video and Other. For each of the Data, Voice and Video services, service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement, the customer takes full control over the services as the service is delivered, and as such, Data, Voice and Video are identified to be a series of distinct services. Services provided by the Entertainment and Communications segment can be categorized into three main categories that include Consumer/SMB Fiber, Enterprise Fiber and Legacy, each of which may include one or more of the aforementioned performance obligations. Data services include high-speed internet access, digital subscriber lines, ethernet, routed network services, SONET (Synchronous Optical Network), dedicated internet access, wavelength, digital signal and IRU revenue. Voice services include traditional and fiber voice lines, switched access, digital trunking and consumer long distance calling. Video services are offered through our fiber network to residential and commercial customers based on various standard plans with the opportunity to add premium channels. To receive video services, customers are required to use the Company's set top boxes that are billed as part of the monthly recurring service. Set top boxes are not considered a separate performance obligation from video because the equipment is necessary for the service to operate and the customer has no alternative use for the equipment.

Services and products not included in Data, Voice or Video are included in Other revenue and are comprised of wire care, time and materials projects and advertising. Transfer of control of these services and products is evaluated on an individual project basis and can occur over time or at a point in time.

The Company uses multiple methods to determine stand-alone selling prices in the Entertainment and Communications segment. For Data, Video and Voice products in Consumer/SMB Fiber, market rate is the primary method used to determine stand-alone selling prices. For Data performance obligations under the Enterprise Fiber category, and Voice, Data and Other performance obligations under the Legacy category, stand-alone selling prices are determined based on a list price, discount off of list price, a tariff rate, a margin percentage range, or a minimum margin percentage.

IT Services and Hardware

The Company has identified four distinct performance obligations in the IT Services and Hardware segment. These performance obligations are Communications, Cloud, Consulting and Infrastructure Solutions. Communications services are monthly services that include data and VoIP services, tailored solutions that include converged IP communications of data, voice, video and mobility applications, enterprise long distance, MPLS (Multi-Protocol Label Switching) and conferencing services. Cloud services include storage, backup, disaster recovery, SLA-based monitoring and management, cloud computing and cloud consulting. Consulting services provide customers with IT staffing, consulting and emerging technology solutions. Infrastructure Solutions includes the sale of hardware and maintenance contracts as well as installation projects.

For the sale of hardware, the Company evaluated whether it is the principal or the agent. The Company has concluded it acts as an agent because it does not control the inventory before it is transferred to customers, it does not have the ability to direct the product to anyone besides the purchasing customer, and it does not integrate the hardware with any of its own goods or services. Based on this assessment, the performance obligation is to arrange a sale of hardware between the vendor and the customer. In the instance where there is an issue with the hardware, the Company coordinates with the manufacturer to facilitate a return in accordance with the standard manufacturer warranty. Hardware returns are not significant to the Company.

Within the IT Services and Hardware segment, stand-alone selling prices for the four performance obligations are determined based on either a margin percentage range, minimum margin percentage or discount from standard price list if it is determined to be representative of stand-alone selling price.

For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is either shipped or delivered in accordance with the terms of the contract. For certain projects within Communications and Consulting, revenue is recognized when the customer communicates acceptance of the services performed. For contracts with freight on board shipping terms, management has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, and, therefore, has not evaluated whether shipping and handling activities are promised services to its customers.

Contract Balances 

The Company recognizes incremental fulfillment costs as an asset when installation expenses are incurred as part of performing the agreement for Voice, Video and Data product offerings in the Entertainment and Communications segment in which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We also recognize an asset for incremental fulfillment costs for certain Communications services in the IT Services and Hardware segment that require us to incur installation and provisioning expenses. The asset recognized for Communication services is amortized over the average contract life. Churn rates and average contract life are reviewed on an annual basis. Fulfillment costs are capitalized to “Other noncurrent assets.” The related amortization expense is recorded to “Cost of services and products.”

The Company recognizes an asset for the incremental costs of acquiring a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs related to Voice, Video, Data and certain Communications and Cloud services meet the requirements to be capitalized. The contract asset established for the costs of acquiring a contract is recorded to “Other noncurrent assets.” Sales incentives are amortized ratably over the period that services are delivered using either an average churn rate or average contract term, both representative of the expected period of benefit of the asset capitalized. Customer churn rates and average contract term assumptions are reviewed on an annual basis. The related amortization expense is recorded to “Selling, general and administrative.”

Management has elected to use the practical expedient detailed in ASC 340-40-25-4 to expense any costs to fulfill a contract and costs to obtain a contract as they are incurred when the amortization period would have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects and certain Cloud services. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Communications projects.

The following table presents the activity for the Company’s contract assets:

	Successor
	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of September 8, 2021 (remeasured upon Merger)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Additions		0.2			0.3			0.5			0.8			—			0.8			1.0			0.3			1.3
Amortization		—			—			—			—			—			—			—			—			—
Balance as of September 30, 2021	$	0.2		$	0.3		$	0.5		$	0.8		$	—		$	0.8		$	1.0		$	0.3		$	1.3
	Predecessor
	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of December 31, 2020	$	3.5		$	3.9		$	7.4		$	15.8		$	3.6		$	19.4		$	19.3		$	7.5		$	26.8
Additions		0.9			1.0			1.9			2.6			—			2.6			3.5			1.0			4.5
Amortization		(1.9	)		(0.7	)		(2.6	)		(2.7	)		(0.4	)		(3.1	)		(4.6	)		(1.1	)		(5.7	)
Balance as of March 31, 2021		2.5			4.2			6.7			15.7			3.2			18.9			18.2			7.4			25.6
Additions		0.9			0.8			1.7			2.6			0.2			2.8			3.5			1.0			4.5
Amortization		(1.9	)		(0.7	)		(2.6	)		(2.3	)		(0.3	)		(2.6	)		(4.2	)		(1.0	)		(5.2	)
Balance as of June 30, 2021		1.5			4.3			5.8			16.0			3.1			19.1			17.5			7.4			24.9
Additions		0.7			0.8			1.5			2.0			0.2			2.2			2.7			1.0			3.7
Amortization		(1.4	)		(0.5	)		(1.9	)		(1.7	)		(0.4	)		(2.1	)		(3.1	)		(0.9	)		(4.0	)
Balance as of September 7, 2021	$	0.8		$	4.6		$	5.4		$	16.3		$	2.9		$	19.2		$	17.1		$	7.5		$	24.6

Fulfillment costs and costs of acquisition were remeasured in the Successor period in accordance with ASC 805.

The Company recognizes a liability for cash received upfront for IRU contracts. At September 30, 2021 and December 31, 2020, $1.7 million and $1.6 million, respectively, of contract liabilities were included in "Other current liabilities." At September 30, 2021 and December 31, 2020, $58.1 million and $26.2 million, respectively, of contract liabilities were included in "Other noncurrent liabilities."

Disaggregated Revenue

The following table presents revenues disaggregated by product and service lines:

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Data	$	31.6		$	91.7		$	119.8		$	31.6		$	334.6		$	358.8
Video		12.2			35.3			48.1			12.2			131.8			145.1
Voice		15.8			46.8			65.5			15.8			177.3			197.6
Other		2.1			6.6			7.6			2.1			20.5			23.0
Total Entertainment and Communications		61.7			180.4			241.0			61.7			664.2			724.5
Consulting		21.6			56.5			49.4			21.6			193.6			138.5
Cloud		6.6			18.7			21.1			6.6			66.4			63.0
Communications		14.2			40.1			53.9			14.2			149.1			160.3
Infrastructure Solutions		9.6			23.4			30.8			9.6			83.3			82.7
Total IT Services and Hardware		52.0			138.7			155.2			52.0			492.4			444.5
Intersegment revenue		(2.3	)		(4.5	)		(6.7	)		(2.3	)		(17.9	)		(19.5	)
Total revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5

The following table presents revenues disaggregated by contract type:

	Successor
	September 8, 2021 to September 30, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	2.1	$	11.1	$	—		$	13.2
Products and Services transferred over time		58.0		40.2		—			98.2
Intersegment revenue		1.6		0.7		(2.3	)		—
Total revenue	$	61.7	$	52.0	$	(2.3	)	$	111.4
	Predecessor
	July 1, 2021 to September 7, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	4.1	$	25.1	$	—		$	29.2
Products and Services transferred over time		172.9		112.5		—			285.4
Intersegment revenue		3.4		1.1		(4.5	)		—
Total revenue	$	180.4	$	138.7	$	(4.5	)	$	314.6
	Predecessor
	Three Months Ended September 30, 2020
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	6.6	$	34.1	$	—		$	40.7
Products and Services transferred over time		229.5		119.3		—			348.8
Intersegment revenue		4.9		1.8		(6.7	)		—
Total revenue	$	241.0	$	155.2	$	(6.7	)	$	389.5

	Successor
	September 8, 2021 to September 30, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	2.1	$	11.1	$	—		$	13.2
Products and Services transferred over time		58.0		40.2		—			98.2
Intersegment revenue		1.6		0.7		(2.3	)		—
Total revenue	$	61.7	$	52.0	$	(2.3	)	$	111.4
	Predecessor
	January 1, 2021 to September 7, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	15.8	$	90.1	$	—		$	105.9
Products and Services transferred over time		635.3		397.5		—			1,032.8
Intersegment revenue		13.1		4.8		(17.9	)		—
Total revenue	$	664.2	$	492.4	$	(17.9	)	$	1,138.7
	Predecessor
	Nine Months Ended September 30, 2020
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	19.1	$	93.2	$	—		$	112.3
Products and Services transferred over time		690.6		346.6		—			1,037.2
Intersegment revenue		14.8		4.7		(19.5	)		—
Total revenue	$	724.5	$	444.5	$	(19.5	)	$	1,149.5

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

4.    Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020			Depreciable Lives (Years)
Land and rights-of-way	$	132.3		$	115.7		20 – Indefinite
Buildings and leasehold improvements		184.8			323.8		5 – 40
Network equipment		1,498.6			4,180.0		2 – 50
Office software, furniture, fixtures and vehicles		89.6			243.7		2 – 14
Construction in process		73.4			60.4		n/a
Gross value		1,978.7			4,923.6
Accumulated depreciation		(21.8	)		(3,194.5	)
Property, plant and equipment, net	$	1,956.9		$	1,729.1

In connection with the Merger, a fair value step-up of $162.1 million was recorded to property, plant and equipment (“PP&E”). The estimated fair value of the PP&E was determined using Level 3 inputs within the fair value hierarchy, as described in Note 8. A combination of cost and market approaches were used to estimate the fair values of the PP&E as of the Merger Date. The depreciable lives of property, plant and equipment remained consistent in the Successor period as compared to the Predecessor period. See Note 2 for additional information regarding the Merger.

Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $21.8 million in the Successor period and $49.4 million and $185.0 million, respectively, in the Predecessor periods included within the three and nine months ended September 30, 2021. Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $68.3 million and $210.0 million, respectively, for the three and nine months ended September 30, 2020.

No asset impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5.    Goodwill and Intangible Assets

Goodwill

The changes in the Company's goodwill consisted of the following:

	Successor
(dollars in millions)	IT Services and Hardware		Entertainment and Communications		Total Company
Goodwill, balance as of September 8, 2021 (remeasured upon Merger)	$	—	$	—	$	—
Activity during the year:
Merger		157.4		488.9		646.3
Goodwill, balance as of September 30, 2021	$	157.4	$	488.9	$	646.3
	Predecessor
(dollars in millions)	IT Services and Hardware		Entertainment and Communications		Total Company
Goodwill, balance as of December 31, 2020	$	149.1	$	12.4	$	161.5
Activity during the year:
Currency translations		0.7		—		0.7
Goodwill, balance as of September 7, 2021	$	149.8	$	12.4	$	162.2

As mentioned in Note 2, in connection with the Merger, the Company’s assets and liabilities were measured at fair value as of the date of the Merger.  The allocation of goodwill to our Entertainment and Communications reporting unit and IT Services and Hardware reporting unit is preliminary as of the date of this filing.

No impairment losses were recognized in goodwill for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.

Intangible Assets

The Company’s intangible assets consisted of the following:

	Successor							Predecessor
	September 30, 2021							December 31, 2020
	Gross Carrying		Accumulated			Net		Gross Carrying		Accumulated			Net
(dollars in millions)	Amount		Amortization			Amount		Amount		Amortization			Amount
Intangible assets subject to amortization
Customer relationships	$	850.0	$	(7.1	)	$	842.9	$	141.6	$	(38.9	)	$	102.7
Trade names		108.0		(1.2	)		106.8		41.7		(9.4	)		32.3
Technology		5.0		(0.1	)		4.9		9.9		(3.2	)		6.7
Total		963.0		(8.4	)		954.6		193.2		(51.5	)		141.7
Intangible assets not subject to amortization
FCC licenses and spectrum usage rights		6.6		—			6.6		6.4		—			6.4
Total intangible assets	$	969.6	$	(8.4	)	$	961.2	$	199.6	$	(51.5	)	$	148.1

In connection with the Merger, the company recorded $969.6 million of intangible assets, as shown in the table above, representing the fair values at the Merger Date. See Note 2 for additional information regarding the Merger. They are amortized over their useful lives based on a number of assumptions including the estimated period of economic benefit and utilization.

In the Successor period, amortization expense for finite-lived intangible assets was $8.4 million. In the Predecessor periods included within the three and nine months ended September 30, 2021, amortization expense for finite-lived intangible assets was $2.7 million and $9.9 million, respectively. In the three and nine months ended September 30, 2020, amortization expense for finite-lived intangible assets was $3.6 million and $10.8 million, respectively. No impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.

The estimated useful lives for each finite-lived intangible asset class are as follows:

	Successor	Predecessor
	September 30, 2021	December 31, 2020
Customer relationships	15 years	8 to 15 years
Trade names	3 to 10 years	10 to 15 years
Technology	7 years	10 years

The annual estimated amortization expense for future years is as follows:

(dollars in millions)
Three months ended December 31, 2021	$	33.0
2022		120.0
2023		112.9
2024		103.8
2025		92.1
Thereafter		492.8
Total	$	954.6

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Debt and Other Financing Arrangements

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt and Other Financing Arrangements

6.    Debt and Other Financing Arrangements

The Company’s debt consists of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020
Current portion of long-term debt:
Corporate Credit Agreement - Tranche B Term Loan due 2024	$	—		$	6.0
Credit Agreement - Term Loan due 2028		1.5			—
Paniolo Fiber Assets Financing Arrangement		0.5			—
Other financing arrangements		0.9			1.9
Finance lease liabilities		10.1			13.9
Current portion of long-term debt		13.0			21.8
Long-term debt, less current portion:
Receivables Facility		75.1			182.0
Corporate Credit Agreement - Revolving Credit Facility		—			67.0
Credit Agreement - Revolving Credit Facility due 2026		—			—
Credit Agreement - Tranche B Term Loan due 2024		—			580.5
Credit Agreement - Term Loan due 2028		148.5			—
7 1/4% Senior Notes due 2023 (1)		24.3			22.3
7% Senior Notes due 2024 (1)		637.2			625.0
8% Senior Notes due 2025 (1)		365.5			350.0
Various Cincinnati Bell Telephone notes (1)		97.8			87.9
Paniolo Fiber Assets Financing Arrangement		22.4			—
Other financing arrangements		0.5			0.9
Finance lease liabilities		47.1			52.1
		1,418.4			1,967.7
Net unamortized premium (2)		—			1.1
Unamortized note issuance costs (3)		(35.5	)		(18.9	)
Long-term debt, less current portion		1,382.9			1,949.9
Total debt	$	1,395.9		$	1,971.7

(1) As of September 30, 2021, the net carrying amounts of the 7 ¼% Senior Notes due 2023, 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments related to the Merger of $2.0 million, $12.2 million, $15.5 million and $9.9 million, respectively. Each adjustment is being amortized over the life of the respective notes and is recorded as a reduction of interest expense.  

(2) Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period.  

(3) Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below.

The estimated fair value of the Company’s borrowings, was determined using Level 2 inputs within the fair value hierarchy, as described in Note 8. Based on closing or estimated market prices of the Company’s debt, a fair-value step-up of $39.6 million was recorded as of the Merger Date.

Consent Solicitation for 7.000% Senior Notes due 2024 and 8.000% Senior Notes due 2025

On July 2, 2020, the Company announced the successful completion of the consent solicitations with respect to certain proposed amendments to the change of control provisions contained in the (i) indenture, dated as of September 22, 2016 (as supplemented and amended, the “2024 Notes Indenture”) governing its 7.000% Senior Notes due 2024 (the “2024 Notes”) and (ii) indenture, dated as of October 6, 2017 (as supplemented and amended, the “2025 Notes Indenture,” and together with the 2024 Notes Indenture, the “Indentures”) governing its 8.000% Senior Notes due 2025 (the “2025 Notes,” and together with the 2024 Notes, the “Notes”).  

On July 2, 2020, the Company, certain of the Company’s subsidiaries, as guarantors, and Regions Bank, as trustee, entered into supplemental indentures to the Indentures to effectuate the amendments, which became operative substantially concurrently with the consummation of the Merger on September 7, 2021, when the Company paid the consent fees that totaled $3.9 million to the holders of the Notes.  These fees were capitalized as a reduction to the outstanding debt balances as of the Merger Date.

Credit Agreement (effective 2021)

In connection with the Merger Agreement, at the Effective Time (the date on which the Effective Time occurred, the “Closing Date”) the Company entered into a new Credit Agreement (the "Credit Agreement") and terminated the existing Corporate Credit Agreement. The Credit Agreement provides for (i) a five-year $275 million senior secured revolving credit facility, including both a letter of credit subfacility of up to $40 million and a swingline loan subfacility of up to $10 million (the “Revolving Credit Facility due 2026”) and (ii) a seven-year $150 million senior secured term loan facility (the “Term Loan due 2028”). The Revolving Credit Facility due 2026 expires in September 2026, and the Term Loan due 2028 expires in September 2028. Borrowings under the Term Loan due 2028 were used in part to finance a portion of the fees and expenses relating to the acquisition of the Company and the establishment of the Credit Agreement, to refinance existing company indebtedness, and for working capital and general corporate purposes. Borrowings under the Revolving Credit Facility due 2026 may be used to provide ongoing working capital as well as for other general corporate purposes of the Company.  

Borrowings under the Term Loan due 2028 will bear interest, initially, at a rate equal to, at the Company’s option, either:

• a base rate determined by reference to the highest of (i) the Federal Funds Rate (determined for any day as the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus 1/2 of 1%, (ii) the rate of interest in effect for such day as publicly announced from time to time by Goldman Sachs as its “prime rate” in effect at its principal office in New York City and notified to the Company, and (iii) to the extent ascertainable, the one month Eurocurrency rate plus 1.00%, plus, in any such case, 3.25%; or

• a Eurocurrency rate determined by reference to the London interbank offered rate for dollars for the relevant interest period, adjusted for statutory reserve requirements, plus 4.25%.

From and after the delivery by the Company to the administrative agent for the Credit Agreement of financial statements for the first fiscal quarter ended after the Closing Date, the applicable margin over the base rate or Eurocurrency rate for the Term Loan due 2028 will be in the range of (x) 3.75% and 4.75% (for Eurocurrency loans) and (y) 2.75% and 3.75% (for base rate loans) based on a pricing grid as determined by reference to the applicable Secured Net Leverage Ratio (as defined in the Credit Agreement) for the most recent four fiscal quarter period for which financial statements have been delivered.

The Company incurred deferred financing costs of $32.0 million related to the issuance of the Term Loan due 2028 and capitalized as a reduction to the outstanding debt balances as of the Merger Date. 

Borrowings under the Revolving Credit Facility due 2026 will bear interest, initially, at a rate equal to, at the Company’s option, either:

• a base rate determined by reference to the highest of (i) the Federal Funds Rate (determined for any day as the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus 1/2 of 1%, (ii) the rate of interest in effect for such day as publicly announced from time to time by Goldman Sachs as its “prime rate” in effect at its principal office in New York City and notified to the Company, and (iii) to the extent ascertainable, the one month Eurocurrency rate plus 1.00%, plus, in any such case, 3.25%; or

• a Eurocurrency rate determined by reference to the London interbank offered rate for dollars for the relevant interest period, adjusted for statutory reserve requirements, plus 4.25%.

From and after the delivery by the Company to the administrative agent for the Credit Agreement of financial statements for the first fiscal quarter ended after the Closing Date, the applicable margin over the base rate or Eurocurrency rate for the Revolving Credit Facility due 2026 will be in the range of (x) 3.75% and 4.25% (for Eurocurrency loans) and (y) 2.75% and 3.25% (for base rate loans) based on a pricing grid as determined by reference to the applicable Secured Net Leverage Ratio for the most recent four fiscal quarter period for which financial statements have been delivered.

The base rate and Eurodollar rate for the Term Loan due 2028 and the Revolving Credit Facility due 2026 (collectively, the “Facilities”) are subject to a 0.00% floor.

In addition, the Company will be required to pay a commitment fee on any unused portion of the Revolving Credit Facility due 2026 at a rate of 0.50% per annum, or, if the Secured Net Leverage Ratio for the most recent four fiscal quarter period for which financial statements have been delivered is equal to or less than 3.25 to 1.00, 0.375% per annum. The Company will also pay customary letter of credit fees, including a fronting fee equal to 0.125% per annum of the dollar equivalent of the maximum amount available to be drawn under all outstanding letters of credit, as well as customary issuance and administration fees. At September 30, 2021, there were no borrowings under the Revolving Credit Facility due 2026, leaving $275.0 million available.

One of the syndicated lenders in the Credit Agreement is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company’s average outstanding loan balance. The Company will recognize the patronage, generally as declared, in “Other (income) expense, net.” The stock component will be recognized at its stated cost basis.

The Company may voluntarily repay and reborrow outstanding loans under the Revolving Credit Facility due 2026 at any time without a premium or a penalty, other than customary “breakage” costs with respect to LIBOR revolving loans.

In addition, certain of our variable rate debt, including debt under the Credit Agreement and the Receivables Facility, uses LIBOR as one of the benchmarks for establishing the rate of interest and may be hedged with LIBOR-based interest rate derivatives. LIBOR is the subject of recent regulatory guidance and proposals for reform. These reforms and other pressures may cause LIBOR to be replaced with a new benchmark in the future or to perform differently than in the past. The consequences of these developments cannot be entirely predicted, but could include an increase in the cost of our variable rate indebtedness.

The Company incurred deferred financing costs of $6.1 million related to the issuance of the Revolving Credit Facility due 2026 and capitalized to “Other noncurrent assets” on the Condensed Consolidated Balance Sheets as of the Merger Date. 

In November 2021, the Company entered into an Amendment (the “Amendment No. 1”) to its current Credit Agreement to provide for, among other things, (i) a $125 million upsize to the Revolving Credit Facility, increasing the Revolving Credit Facility to $400 million, (ii) a $350 million incremental increase to its existing Term Loan (the “Incremental Term Loan Increase”), increasing the total existing Term Loan facility to $500 million and (iii) the incurrence of a new tranche of $650 million senior secured term loans (the “Term B-2 Loans”). The proceeds of the Incremental Term Loan Increase and the Term B-2 Loans were deposited into an escrow account and will be used by the Company to satisfy, discharge and redeem in full all of the Company’s existing (x) 7.000% Senior Notes due 2024 (the “2024 Notes”) and (y) 8.000% Senior Notes due 2025 (the “2025 Notes”), and to pay fees and expenses in connection with the redemption of the 2024 Notes and the 2025 Notes. The Term B-2 Loans mature in November 2028. The Amendment No. 1 also extended the maturity of the Term Loans (including the Incremental Term Loan Increase) to November 2028 and reduced the interest applicable to the Term Loans and the Revolving Credit Facility.

Guarantors and Security Interests, Credit Agreement

All obligations under the Facilities are unconditionally guaranteed by the direct parent of the Company and each of the existing and future direct and indirect material, wholly-owned domestic subsidiaries of the Company, subject to certain exceptions (including for Cincinnati Bell Funding LLC, Cincinnati Bell Funding Canada Ltd. (and any other similar special purpose receivables financing subsidiary), the Company's joint ventures, subsidiaries prohibited by applicable law or contractual obligation from becoming guarantors, immaterial subsidiaries, unrestricted subsidiaries, foreign subsidiaries, and other customary exceptions as more fully described in the Credit Agreement.  Obligations outstanding under the Credit Agreement are secured by perfected first priority pledges of and security interests in (i) the equity interests of the Company held by its direct parent and (ii) substantially all of the assets of the Company and each subsidiary guarantor (subject to customary exceptions as more fully described in the Credit Agreement), including equity interests of each subsidiary guarantor under the Credit Agreement.

Corporate Credit Agreement (effective 2017)

In connection with the Merger Agreement, at the Effective Time, the outstanding loans under the Corporate Credit Agreement, dated as of October 2, 2017, were paid in full together with accrued interest and unpaid fees. As a result of the Company terminating the Corporate Credit Agreement, certain previously deferred costs and unamortized discount associated with the Corporate Credit Agreement’s Revolving Credit Facility and Tranche B Term Loan due 2024 were written off in the Predecessor period. The loss on extinguishment of debt associated with the transaction was $10.7 million.

Paniolo Fiber Assets Financing

In connection with the Paniolo Acquisition in the third quarter of 2021, the Company’s wholly-owned subsidiary, Hawaiian Telcom Inc. (“HTI”), entered into a purchase money financing agreement to finance a portion of the Paniolo Acquisition. The Paniolo fiber assets financing arrangement provides for a five-year $23.0 million loan secured by the Paniolo assets acquired in the transaction. Borrowings under the Paniolo fiber assets financing arrangement bear interest at a rate per annum equal to LIBOR plus 3.0%. The Company guarantees HTI’s borrowings under the Paniolo fiber assets financing arrangement.

Accounts Receivable Securitization Facility

As of September 30, 2021, the Company had $75.1 million in borrowings and $14.8 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $125.1 million remaining availability on the total borrowing capacity of $215.0 million. In the second quarter of 2021, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit availability and renew the facility. The amendments extended the facility’s renewal date until June 2023 and the facility’s termination date to June 2024. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was increased from $200.0 million to $215.0 million in the aggregate. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. In addition, the amendments removed the provision that the LIBOR rate for the Receivables Facility may not fall below 0.75%.

Under the Receivables Facility, certain U.S. and Canadian subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”) or Cincinnati Bell Funding Canada Ltd. ("CBFC"), wholly-owned consolidated subsidiaries of the Company. Although CBF and CBFC are wholly-owned consolidated subsidiaries of the Company, CBF and CBFC are legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF or CBFC, such accounts receivable are legally assets of CBF and CBFC and, as such, are not available to creditors of other subsidiaries or the parent company. The Receivables Facility includes an option for CBF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of September 30, 2021, the outstanding balance of certain accounts receivable sold, rather than borrowed against, was $3.9 million.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

7.    Leases

Lessee Disclosures

The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers and fleet vehicles. Upon adoption of ASC 842, the Company elected not to recognize leases with terms of one-year or less on the balance sheet.

Supplemental balance sheet information related to the Company's leases is as follows:

		Successor		Predecessor
(dollars in millions)	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating lease assets, net of amortization	Operating lease right-of-use assets	$	41.4	$	37.4
Finance lease assets, net of amortization	Property, plant and equipment, net		15.4		28.0
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities		8.8		9.6
Noncurrent operating lease liabilities	Operating lease liabilities		38.0		33.6
Total operating lease liabilities			46.8		43.2
Finance lease liabilities:
Current finance lease liabilities	Current portion of long-term debt		10.1		13.9
Noncurrent finance lease liabilities	Long-term debt, less current portion		47.1		52.1
Total finance lease liabilities		$	57.2	$	66.0

.

Supplemental cash flow information related to leases is as follows:

	Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	0.3	$	2.9	$	3.3
Operating cash flows from operating leases	$	0.8	$	7.2	$	9.5
Financing cash flows from finance leases	$	1.2	$	9.9	$	13.9
Right-of-use assets obtained in exchange for lease obligations:
New operating leases	$	—	$	11.5	$	6.8
New finance leases	$	—	$	3.8	$	4.0

Sale-Leaseback Disclosures

On August 31, 2021, the Company simultaneously exercised its bargain purchase option on real property located in Cincinnati, Ohio, previously classified as a finance lease, and sold it to a third party for $9.1 million. Net proceeds from the transactions were approximately $6.6 million after transactional costs. Concurrently with the sale, the Company entered into an operating lease arrangement with the third party purchaser of the property for a portion of the building to maintain use of the location as an office space. The transaction qualified for sale-leaseback accounting in accordance with ASC 842, and the Company recognized a gain on the sale of $2.8 million in August, 2021. The Company recorded an operating lease right-of-use asset and liability of $7.7 million related to the leaseback agreement on September 1, 2021.

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Financial Instruments and Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

8.    Financial Instruments and Fair Value Measurements

Fair Value Measurements

The Company defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. To increase consistency and comparability in fair value measurements, the Company uses a three-level hierarchy that prioritizes the use of observable inputs. The three levels are:

Level 1 — Quoted market prices for identical instruments in an active market;

Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and

Level 3 — Unobservable inputs that reflect management's determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data.

The determination of where an asset or liability falls in the hierarchy requires significant judgment.

Interest Rate Swaps

The Company uses interest rate swap agreements to minimize its exposure to interest rate fluctuations on variable rate debt borrowings. Interest rate swaps involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the underlying notional amounts between parties.

In the second quarter of 2018, the Company entered into one forward starting non-amortizing interest rate swap with a notional amount of $300.0 million to convert variable rate debt to fixed rate debt. The interest rate swap became effective in June 2018 with an expiration date in June 2023. The interest rate swap resulted in interest payments based on an average fixed rate of 2.938% plus the applicable margin per the requirements in the Corporate Credit Agreement.

In the first quarter of 2019, the Company entered into three forward starting non-amortizing interest rate swaps, with a notional amount of $89.0 million each, to convert variable rate debt to fixed rate debt. The interest rate swaps became effective in March 2019 with expiration dates in March 2024. The interest rate swaps resulted in interest payments based on an average fixed rate per swap of 2.275%, 2.244% and 2.328% plus the applicable margin per the requirements in the Corporate Credit Agreement.

Upon inception, the interest rate swaps were designated as cash flow hedges under ASC 815, with gains and losses, net of tax, measured on an ongoing basis recorded in accumulated other comprehensive loss. The fair value of the interest rate swaps was categorized as Level 2 in the fair value hierarchy as they were based on well-recognized financial principles and available market data.

The Company terminated four interest rate swaps in the Predecessor period in connection with the repayment in full of the Term Loan B under the Corporate Credit Agreement that occurred as part of the Merger Agreement. As a result of the repayment, the hedged interest payments were no longer considered probable of occurring and a loss on termination of $20.1 million that had been previously recorded to Accumulated Other Comprehensive Income ("AOCI") was recorded in the Predecessor period in “Other (income) expense, net” on the Condensed Consolidated Statements of Operations. Cash payments resulting from the termination of the interest rate swaps are classified as operating activities in the Company’s Condensed Consolidated Statement of Cash Flows.

As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows:

		Predecessor
(dollars in millions)	Balance Sheet Location	December 31, 2020		Quoted Prices in active markets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Liabilities:
Interest Rate Swap	Other current liabilities	$	9.3	$	—	$	9.3	$	—
Interest Rate Swap	Other noncurrent liabilities	$	16.1	$	—	$	16.1	$	—

The amount of gains (losses) recognized in AOCI (effective portion) net of reclassifications into earnings is as follows:

	Successor		Predecessor		Predecessor		Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Interest Rate Swap	$	—	$	—	$	1.7	$	—	$	5.3	$	(8.6	)

The amount of losses reclassified from AOCI into earnings is as follows:

		Successor		Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	Statement of Operations Location	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Interest Rate Swap	Other (income) expense, net	$	—	$	(20.1	)	$	—		$	—	$	(20.1	)	$	—
Interest Rate Swap	Interest expense	$	—	$	(0.8	)	$	(2.3	)	$	—	$	(5.4	)	$	(6.0	)

Disclosure on Financial Instruments

The carrying values of the Company's financial instruments approximate the estimated fair values as of September 30, 2021 and December 31, 2020, except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows:  

	Successor				Predecessor
	September 30, 2021				December 31, 2020
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion*	$	1,372.8	$	1,370.5	$	1,921.8	$	1,973.4
Other financing arrangements		53.8		53.8		42.1		58.6

*Excludes finance leases, other financing arrangements and note issuance costs.

In connection with the Merger, the Successor period carrying values of the Company’s long-term debt and other financing arrangements include fair value adjustments as of the Merger Date. The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at September 30, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. As of September 30, 2021, the current borrowing rate was estimated by applying the Company's credit spread to the risk-free rate for a similar duration borrowing.

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Pension and Postretirement Plans

9 Months Ended

Sep. 30, 2021

Compensation And Retirement Disclosure [Abstract]

Pension and Postretirement Plans

9.    Pension and Postretirement Plans

As of September 30, 2021, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Cincinnati (collectively the "Cincinnati Plans"), and one noncontributory defined benefit plan for union employees, one cash balance pension plan for nonunion employees, and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively the "Hawaii Plans").

In connection with the Merger, the Company remeasured the pension and postretirement projected benefit obligations as of the Merger Date. As a result, the Company's pension and postretirement benefit obligations decreased $22.3 million and $4.3 million, respectively. The decrease in the benefit obligations is primarily driven by changes in the discount rate as well as gains to record pension assets to fair value. Additionally, actuarial gains (losses) and prior service costs (benefits) recorded in "Accumulated other comprehensive loss" of $101.6 million were remeasured as of the Merger Date.

In the periods July 1, 2021 to September 7, 2021 and January 1, 2021 to September 7, 2021, the Hawaii defined benefit plan for union employees made lump sum payments of $0.8 million and $7.4 million, respectively, resulting in a reduction of the benefit obligation of $7.4 million. The lump sum payments to the plan participants exceeded the sum of the service cost and the interest cost component of the net pension cost resulting in a nominal pension settlement cost for the period January 1, 2021 to September 7, 2021. In the three and nine months ended September 30, 2020, the Hawaii defined benefit plans made lump sum payments of $3.4 million and $10.8 million, respectively, resulting in a reduction of the benefit obligation of $10.8 million. The Company recorded a pension settlement cost of $1.1 million in the nine months ended September 30, 2020 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost.

In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for all periods presented.

Unrecognized actuarial net gains and losses for the Cincinnati Plans and the Hawaii Plans are primarily generated by differences between assumed and actual rates of return on invested assets, changes in discount rates and healthcare costs. Because gains and losses reflect refinements in estimates, as well as real changes in economic values, and because some gains in one period may be offset by losses in another or vice versa, we are not required to recognize these gains and losses in the periods that they occur. Instead, if the gains and losses exceed a 10% corridor defined in the accounting literature, the excess is amortized over a defined term. In conjunction with remeasuring the pension and postretirement benefit obligations, the amortization period for the Cincinnati pension plans in the Successor period was updated to amortize the excess over the average remaining life expectancy of plan participants from the average future working lifetime which was utilized in the Predecessor period. This change is not expected to have an impact in the 2021 Successor period as gains or losses will not be generated until December 31, the next measurement date. Additionally in the Successor period, the market-related value of assets is equal to the fair market value.  Previously, the market-related value of assets was determined using a five-year moving market average method. Except for these changes described related to the Cincinnati pension plans, no other changes to methodology were made in the Successor period as a result of the Merger.

Pension and postretirement costs (benefits) are as follows:

	Pension Benefits									Postretirement and Other Benefits
	Successor			Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020
Service cost	$	—		$	—		$	—		$	—	$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		0.9			2.7			4.6			0.1		0.5			0.9
Expected return on plan assets		(2.1	)		(5.2	)		(7.1	)		—		—			—
Amortization of:
Prior service benefit		—			—			—			—		(0.4	)		(0.6	)
Actuarial loss		—			4.5			4.5			—		—			0.3
Pension / postretirement costs	$	(1.2	)	$	2.0		$	2.0		$	0.1	$	0.2		$	0.7

	Pension Benefits									Postretirement and Other Benefits
	Successor			Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Service cost	$	—		$	—		$	—		$	—	$	0.3		$	0.3
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		0.9			10.2			14.2			0.1		1.8			2.8
Expected return on plan assets		(2.1	)		(19.9	)		(21.6	)		—		—			—
Amortization of:
Prior service benefit		—			—			—			—		(1.7	)		(1.9	)
Actuarial loss		—			16.0			13.5			—		—			0.9
Pension settlement charges		—			—			1.1			—		—			—
Pension / postretirement costs	$	(1.2	)	$	6.3		$	7.2		$	0.1	$	0.4		$	2.1

Amortizations of prior service benefit and actuarial loss in the Predecessor periods represent reclassifications from accumulated other comprehensive income.

In conjunction with remeasuring the pension and postretirement benefit obligations, the weighted-average assumptions used in accounting for and measuring the projected benefit obligations as of the date of the Merger were reviewed and determined to still be appropriate with the exception of the discount rates. The following are the weighted-average discount rate assumptions used in accounting for and measuring the projected benefit obligations:

	Pension Benefits		Postretirement and Other Benefits
	Successor	Predecessor	Successor	Predecessor
	September 8, 2021	December 31, 2020	September 8, 2021	December 31, 2020
Cincinnati plans	2.60%	2.40%	2.60%	2.40%
Hawaii plans	2.50%	2.30%	2.80%	2.60%

Contributions to the qualified and non-qualified pension plans in the Predecessor period were $0.9 million and $1.8 million, respectively. In the Successor period, there were no contributions to the qualified pension plans and contributions to the non-qualified pension plans were $0.2 million. For the nine months ended September 30, 2020, contributions to the qualified and non-qualified pension plans were $2.8 million and $2.0 million, respectively. Based on current assumptions, no additional contributions are expected to be made to the qualified pension plans in 2021. Contributions to the non-qualified pension plans in 2021 are expected to be approximately $3 million.

For the Predecessor and Successor periods in 2021, contributions to our postretirement plans were $4.3 million and $0.5 million, respectively. For the nine months ended September 30, 2020, contributions to our postretirement plans were $4.3 million. Management expects to make cash payments of approximately $8 million related to its postretirement health plans in 2021.

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

10.    Income Taxes

As of September 30, 2021, the Company had a deferred tax asset of $6.9 million and a deferred tax liability of $147.7 million compared to a deferred tax asset of $82.5 million and a deferred tax liability of $10.9 million as of December 31, 2020. The increase to net deferred tax liabilities is a result of preliminary adjustments on the Merger Date due to the change in fair value of certain assets and liabilities. The most significant adjustments are driven by the increase in value of the Company’s intangibles (other than goodwill) and increase in value related to fixed assets. These were offset, in part, by deferred tax assets related to the initial fair value adjustments which included note issuance and other debt-related costs, costs of acquisition and fulfillment costs that were deferred in accordance with ASC 606, and other deferred tax assets.

As of September 30, 2021, the Company had U.S. federal net operating loss carryforwards of $848.5 million with a deferred tax asset value of $178.2 million. U.S. tax laws place limitations on the annual utilization of tax loss carryforwards of acquired entities, as well as on losses generated in tax years prior to 2018. Approximately $55.8 million of federal tax loss carryforwards will expire in 2022 if unused. Tax law limitations should not materially impact utilization of the Company’s tax loss carryforwards.

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Shareowners' Equity (Deficit)

9 Months Ended

Sep. 30, 2021

Shareowners Deficit [Abstract]

Shareowners' Equity (Deficit)

11.    Shareowners' Equity (Deficit)

Pursuant to the Merger Agreement, Parent acquired all of the equity interests in the Company. In connection with the consummation of the Merger Agreement, each of our issued and outstanding Common Shares was converted to $15.50 in cash per Common Share and paid to the shareholders.  

On September 22, 2021, the Company redeemed each of our issued and outstanding Depositary Shares simultaneously with the redemption of the 6 ¾% Preferred Shares at a redemption price of $50 per Depositary Share (equivalent to $1,000 per 6 ¾% Preferred Share).  

As of September 30, 2021, Parent is the sole shareholder of the Company’s 500,000 Common Shares, each with $0.01 par value.  No other shares remain issued and outstanding subsequent to the Closing Date.  

Subsequent to September 30, 2021, Parent amended and restated the articles of incorporation of Cincinnati Bell effective October 18, 2021 to reduce the number of authorized shares from 96,000,000 Common Shares to 100 Common Shares, each with $0.01 par value.

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss by component were as follows:

(dollars in millions)
Successor	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Unrealized Loss on Cash Flow Hedges, Net				Foreign Currency Translation (Loss) Gain			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Foreign currency loss		—				—				(1.2	)		(1.2	)
Balance as of September 30, 2021	$	—			$	—			$	(1.2	)	$	(1.2	)
Predecessor
Balance as of June 30, 2021	$	(124.9	)		$	(15.7	)		$	1.4		$	(139.2	)
Reclassifications, net		2.8		(a)		16.2		(b)		—			19.0
Unrealized loss on cash flow hedges arising during the period, net		—				(0.6	)	(c)		—			(0.6	)
Foreign currency loss		—				—				(1.4	)		(1.4	)
Balance as of September 7, 2021	$	(122.1	)		$	(0.1	)		$	—		$	(122.2	)
Balance as of June 30, 2020	$	(159.4	)		$	(22.7	)		$	(7.5	)	$	(189.6	)
Remeasurement of benefit obligations		3.2				—				—			3.2
Reclassifications, net		3.2		(a)		1.8		(b)		—			5.0
Unrealized loss on cash flow hedges arising during the period, net		—				(0.5	)	(c)		—			(0.5	)
Foreign currency gain		—				—				2.0			2.0
Balance as of September 30, 2020	$	(153.0	)		$	(21.4	)		$	(5.5	)	$	(179.9	)

(dollars in millions)
Successor	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Unrealized Loss on Cash Flow Hedges, Net				Foreign Currency Translation (Loss) Gain			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Foreign currency loss		—				—				(1.2	)		(1.2	)
Balance as of September 30, 2021	$	—			$	—			$	(1.2	)	$	(1.2	)
Predecessor
Balance as of December 31, 2020	$	(138.8	)		$	(19.7	)		$	(1.2	)	$	(159.7	)
Remeasurement of benefit obligations		6.0				—				—			6.0
Reclassifications, net		10.7		(a)		19.7		(b)		—			30.4
Unrealized loss on cash flow hedges arising during the period, net		—				(0.1	)	(c)		—			(0.1	)
Foreign currency gain		—				—				1.2			1.2
Balance as of September 7, 2021	$	(122.1	)		$	(0.1	)		$	—		$	(122.2	)
Balance as of December 31, 2019	$	(152.0	)		$	(14.7	)		$	(3.4	)	$	(170.1	)
Remeasurement of benefit obligations		(11.5	)			—				—			(11.5	)
Reclassifications, net		10.5		(a)		4.6		(b)		—			15.1
Unrealized loss on cash flow hedges arising during the period, net		—				(11.3	)	(c)		—			(11.3	)
Foreign currency loss		—				—				(2.1	)		(2.1	)
Balance as of September 30, 2020	$	(153.0	)		$	(21.4	)		$	(5.5	)	$	(179.9	)

(a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures.

(b) These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings.

(c) The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures.

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Business Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segment Information

12.    Business Segment Information

The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Company operates two business segments identified as Entertainment and Communications and IT Services and Hardware.

The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength, digital signal and IRU. Video services provide our customers access to over 400 entertainment channels, over 150 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a live TV streaming application. Voice represents traditional voice lines as well as fiber voice lines, consumer long distance, switched access and digital trunking. Other services consist of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services.

The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions.

Certain corporate administrative expenses have been allocated to the segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated.

Selected financial data for the Company’s business segment information is as follows:

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Revenue
Entertainment and Communications	$	61.7		$	180.4		$	241.0		$	61.7		$	664.2		$	724.5
IT Services and Hardware		52.0			138.7			155.2			52.0			492.4			444.5
Intersegment		(2.3	)		(4.5	)		(6.7	)		(2.3	)		(17.9	)		(19.5	)
Total revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5
Intersegment revenue
Entertainment and Communications	$	1.6		$	3.4		$	4.9		$	1.6		$	13.1		$	14.8
IT Services and Hardware		0.7			1.1			1.8			0.7			4.8			4.7
Total intersegment revenue	$	2.3		$	4.5		$	6.7		$	2.3		$	17.9		$	19.5
Operating (loss) income
Entertainment and Communications	$	(2.3	)	$	18.9		$	27.2		$	(2.3	)	$	78.3		$	69.8
IT Services and Hardware		1.7			9.0			4.6			1.7			25.2			11.5
Corporate		(0.8	)		(63.2	)		(7.1	)		(0.8	)		(75.8	)		(49.1	)
Total operating (loss) income	$	(1.4	)	$	(35.3	)	$	24.7		$	(1.4	)	$	27.7		$	32.2
Expenditures for long-lived assets*
Entertainment and Communications	$	33.4		$	92.0		$	57.6		$	33.4		$	199.8		$	144.2
IT Services and Hardware		3.3			4.0			3.9			3.3			15.9			16.7
Corporate		1,620.7			—			—			1,620.7			—			—
Total expenditures for long-lived assets	$	1,657.4		$	96.0		$	61.5		$	1,657.4		$	215.7		$	160.9
Depreciation and amortization
Entertainment and Communications	$	24.3		$	44.5		$	61.6		$	24.3		$	166.9		$	190.0
IT Services and Hardware		5.8			7.6			10.2			5.8			27.9			30.7
Corporate		0.1			—			0.1			0.1			0.1			0.1
Total depreciation and amortization	$	30.2		$	52.1		$	71.9		$	30.2		$	194.9		$	220.8
* Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Assets
Entertainment and Communications	$	2,885.3	$	1,803.3
IT Services and Hardware		844.9		477.2
Corporate and eliminations		360.2		388.1
Total assets	$	4,090.4	$	2,668.6

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Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

13.    Subsequent Events

On May 2, 2022, the Company acquired Agile Networks LLC, based in Canton, Ohio, for approximately $65 million. Agile Networks LLC provides internet, co-location and data transport services primarily to customers in Ohio and Pennsylvania. We are currently in the process of assessing the accounting for this transaction and will disclose our preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed in the second quarter ended June 30, 2022. 

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Description of Business and Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, other comprehensive income, financial position and cash flows for each period presented.

The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting.

The Company’s Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K.

Business Combination

Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”), “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions.

Use of Estimates

Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

Accounting Policies

Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company’s accounting policies in the Successor Period are consistent with the accounting policies in the Predecessor Period.  

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash consists of funds held in an escrow account associated with the acquisition of substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 2 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows:

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	5.4	$	12.2
Restricted cash included in Other noncurrent assets		—		5.0
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows	$	5.4	$	17.2

Restructuring Liability

Restructuring Liability — As of September 30, 2021, restructuring liabilities have been established for employee separations. As of September 30, 2021 and December 31, 2020, $0.1 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets.

Income Taxes

Income taxes — In accordance with ASC 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of permanent items such as nondeductible transaction costs, portions of officers’ compensation, and meals and entertainment expenses that are not fully deductible for tax.

Operating Taxes

Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price.

Stock-Based Compensation

Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the requisite service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, expected holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire.

In connection with the consummation of the Merger, certain previously granted stock-based awards vested on the Closing Date per the terms of the change of control clauses in each plan and were paid at the share purchase price of $15.50. As a result, the following awards vested and were paid on the date of acquisition: (i) time-based restricted stock units and performance-based stock units associated with the 2019 – 2021 long-term incentive plan granted under the 2017 Long-Term Incentive Plan; (ii) time-based restricted stock units granted to non-employee directors in 2020 under the 2017 Stock Plan for Non-Employee Directors; and (iii) time-based restricted stock units granted under the Hawaiian Telcom 2010 Equity Incentive Plan in the first quarter of 2018 which the Company assumed responsibility for the eventual payout upon the acquisition of Hawaiian Telcom. Due to the accelerated vesting and cash payment of these awards, the Company recorded additional compensation expense of $9.3 million to “Selling, general and administrative” expense in the Predecessor period on the Condensed Consolidated Statements of Operations. As of September 30, 2021, there are no outstanding awards granted under the 2017 Long-Term Incentive Plan, 2017 Stock Plan for Non-Employee Directors and Hawaiian Telcom 2010 Equity Incentive Plan.

The Company granted cash-settled awards of $10.5 million in 2020 that originally vested at the end of a three year period. In accordance with the terms of these awards, vesting and payment of the first 25% of the award was accelerated with the consummation of the Merger. The awards remain outstanding in the Successor period and will be paid out 25% at the six month anniversary of the Closing Date and 50% will be paid out on the 18 month anniversary of the Closing Date. The remaining unrecognized compensation expense for the cash-settled awards will be recognized ratably over the remaining 18 months of the award.  

Derivative Financial Instruments

Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. These amendments are effective as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740), and clarifies certain aspects of the current guidance to promote consistency among reporting entities, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. Most amendments within ASU 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company adopted the standard effective January 1, 2021. The Company has evaluated the amendments that must be applied on a retrospective or modified retrospective basis and concluded that no adjustments are necessary. The Company has applied all other amendments on a prospective basis, and the changes did not have a material effect on its condensed consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.

Revenue

The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States ("SEA-US") trans-Pacific submarine cable system.

Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, typically have contracts with a duration of one to five years and automatically renew on a month-to-month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year. Contracts associated with the SEA-US cable system typically range from 15 to 25 years and payment is prepaid.

The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with varied renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays for such good or service will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("Hawaiian Telcom"), the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts typically have a duration ranging from 15 to 25 years.

Fair Value Measurement

The fair value of the interest rate swaps was categorized as Level 2 in the fair value hierarchy as they were based on well-recognized financial principles and available market data.In connection with the Merger, the Successor period carrying values of the Company’s long-term debt and other financing arrangements include fair value adjustments as of the Merger Date. The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at September 30, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy.

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Description of Business and Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows:

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	5.4	$	12.2
Restricted cash included in Other noncurrent assets		—		5.0
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows	$	5.4	$	17.2

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Mergers and Acquisitions (Tables) - Cincinnati Bell Inc. [Member]

9 Months Ended

Sep. 30, 2021

Schedule of Consideration

The purchase price for Cincinnati Bell Inc. consisted of the following:

(dollars in millions)
Cash consideration for Cincinnati Bell Inc. stock	$	807.3
Cash consideration for preferred stock		155.2
Cash consideration for debt repayment		658.2
Total purchase price	$	1,620.7

Purchase Price Allocation

Based on fair value estimates, the purchase price has been allocated on a preliminary basis to individual assets acquired and liabilities assumed as follows:

(dollars in millions)	Cincinnati Bell Inc.
Assets acquired
Cash	$	11.2
Receivables		318.5
Inventory, materials and supplies		56.4
Prepaid expenses		5.6
Other current assets		40.5
Property, plant and equipment		1,950.7
Operating lease right-of-use assets		42.3
Goodwill		646.3
Intangible assets		969.6
Deferred tax assets		6.9
Other noncurrent assets		20.2
Total assets acquired		4,068.2
Liabilities assumed
Current portion of long-term debt		11.8
Accounts payable		381.1
Unearned revenue and customer deposits		51.2
Accrued taxes		24.6
Accrued interest		19.4
Accrued payroll and benefits		49.3
Other current liabilities		75.0
Long-term debt, less current portion		1,378.0
Operating lease liabilities		38.6
Pension and postretirement benefit obligations		151.6
Pole license agreement obligation		46.7
Deferred income tax liability		148.8
Other noncurrent liabilities		71.4
Total liabilities assumed		2,447.5
Net assets acquired	$	1,620.7

Preliminary Fair Values of Identifiable Intangible Assets Acquired

The preliminary fair values of the identifiable intangible assets acquired on the Merger Date were as follows:

(dollars in millions)	Fair Value		Useful Lives
Customer relationships	$	850.0	15 years
Trade names		108.0	3 to 10 years
Technology		5.0	7 years
FCC licenses and spectrum usage rights		6.6	Indefinite
Total identifiable intangible assets	$	969.6

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Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue From Contract With Customer [Abstract]

Schedule of Expected Revenue to be Recognized for Existing IRU Contracts

The expected revenue to be recognized for existing IRU contracts is as follows:

(dollars in millions)
Three months ended December 31, 2021	$	0.8
2022		4.0
2023		6.1
2024		7.9
2025		7.9
Thereafter		111.3

Schedule of Activity of Contract Assets

The following table presents the activity for the Company’s contract assets:

	Successor
	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of September 8, 2021 (remeasured upon Merger)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Additions		0.2			0.3			0.5			0.8			—			0.8			1.0			0.3			1.3
Amortization		—			—			—			—			—			—			—			—			—
Balance as of September 30, 2021	$	0.2		$	0.3		$	0.5		$	0.8		$	—		$	0.8		$	1.0		$	0.3		$	1.3
	Predecessor
	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of December 31, 2020	$	3.5		$	3.9		$	7.4		$	15.8		$	3.6		$	19.4		$	19.3		$	7.5		$	26.8
Additions		0.9			1.0			1.9			2.6			—			2.6			3.5			1.0			4.5
Amortization		(1.9	)		(0.7	)		(2.6	)		(2.7	)		(0.4	)		(3.1	)		(4.6	)		(1.1	)		(5.7	)
Balance as of March 31, 2021		2.5			4.2			6.7			15.7			3.2			18.9			18.2			7.4			25.6
Additions		0.9			0.8			1.7			2.6			0.2			2.8			3.5			1.0			4.5
Amortization		(1.9	)		(0.7	)		(2.6	)		(2.3	)		(0.3	)		(2.6	)		(4.2	)		(1.0	)		(5.2	)
Balance as of June 30, 2021		1.5			4.3			5.8			16.0			3.1			19.1			17.5			7.4			24.9
Additions		0.7			0.8			1.5			2.0			0.2			2.2			2.7			1.0			3.7
Amortization		(1.4	)		(0.5	)		(1.9	)		(1.7	)		(0.4	)		(2.1	)		(3.1	)		(0.9	)		(4.0	)
Balance as of September 7, 2021	$	0.8		$	4.6		$	5.4		$	16.3		$	2.9		$	19.2		$	17.1		$	7.5		$	24.6

Schedule of Revenues Disaggregation by Product and Service Lines

The following table presents revenues disaggregated by product and service lines:

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Data	$	31.6		$	91.7		$	119.8		$	31.6		$	334.6		$	358.8
Video		12.2			35.3			48.1			12.2			131.8			145.1
Voice		15.8			46.8			65.5			15.8			177.3			197.6
Other		2.1			6.6			7.6			2.1			20.5			23.0
Total Entertainment and Communications		61.7			180.4			241.0			61.7			664.2			724.5
Consulting		21.6			56.5			49.4			21.6			193.6			138.5
Cloud		6.6			18.7			21.1			6.6			66.4			63.0
Communications		14.2			40.1			53.9			14.2			149.1			160.3
Infrastructure Solutions		9.6			23.4			30.8			9.6			83.3			82.7
Total IT Services and Hardware		52.0			138.7			155.2			52.0			492.4			444.5
Intersegment revenue		(2.3	)		(4.5	)		(6.7	)		(2.3	)		(17.9	)		(19.5	)
Total revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5

The following table presents revenues disaggregated by contract type:

	Successor
	September 8, 2021 to September 30, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	2.1	$	11.1	$	—		$	13.2
Products and Services transferred over time		58.0		40.2		—			98.2
Intersegment revenue		1.6		0.7		(2.3	)		—
Total revenue	$	61.7	$	52.0	$	(2.3	)	$	111.4
	Predecessor
	July 1, 2021 to September 7, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	4.1	$	25.1	$	—		$	29.2
Products and Services transferred over time		172.9		112.5		—			285.4
Intersegment revenue		3.4		1.1		(4.5	)		—
Total revenue	$	180.4	$	138.7	$	(4.5	)	$	314.6
	Predecessor
	Three Months Ended September 30, 2020
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	6.6	$	34.1	$	—		$	40.7
Products and Services transferred over time		229.5		119.3		—			348.8
Intersegment revenue		4.9		1.8		(6.7	)		—
Total revenue	$	241.0	$	155.2	$	(6.7	)	$	389.5

	Successor
	September 8, 2021 to September 30, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	2.1	$	11.1	$	—		$	13.2
Products and Services transferred over time		58.0		40.2		—			98.2
Intersegment revenue		1.6		0.7		(2.3	)		—
Total revenue	$	61.7	$	52.0	$	(2.3	)	$	111.4
	Predecessor
	January 1, 2021 to September 7, 2021
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	15.8	$	90.1	$	—		$	105.9
Products and Services transferred over time		635.3		397.5		—			1,032.8
Intersegment revenue		13.1		4.8		(17.9	)		—
Total revenue	$	664.2	$	492.4	$	(17.9	)	$	1,138.7
	Predecessor
	Nine Months Ended September 30, 2020
(dollars in millions)	Entertainment and Communications		IT Services and Hardware		Intersegment revenue elimination			Total
Products and Services transferred at a point in time	$	19.1	$	93.2	$	—		$	112.3
Products and Services transferred over time		690.6		346.6		—			1,037.2
Intersegment revenue		14.8		4.7		(19.5	)		—
Total revenue	$	724.5	$	444.5	$	(19.5	)	$	1,149.5

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Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020			Depreciable Lives (Years)
Land and rights-of-way	$	132.3		$	115.7		20 – Indefinite
Buildings and leasehold improvements		184.8			323.8		5 – 40
Network equipment		1,498.6			4,180.0		2 – 50
Office software, furniture, fixtures and vehicles		89.6			243.7		2 – 14
Construction in process		73.4			60.4		n/a
Gross value		1,978.7			4,923.6
Accumulated depreciation		(21.8	)		(3,194.5	)
Property, plant and equipment, net	$	1,956.9		$	1,729.1

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the Company's goodwill consisted of the following:

	Successor
(dollars in millions)	IT Services and Hardware		Entertainment and Communications		Total Company
Goodwill, balance as of September 8, 2021 (remeasured upon Merger)	$	—	$	—	$	—
Activity during the year:
Merger		157.4		488.9		646.3
Goodwill, balance as of September 30, 2021	$	157.4	$	488.9	$	646.3
	Predecessor
(dollars in millions)	IT Services and Hardware		Entertainment and Communications		Total Company
Goodwill, balance as of December 31, 2020	$	149.1	$	12.4	$	161.5
Activity during the year:
Currency translations		0.7		—		0.7
Goodwill, balance as of September 7, 2021	$	149.8	$	12.4	$	162.2

Schedule of Intangible Assets

The Company’s intangible assets consisted of the following:

	Successor							Predecessor
	September 30, 2021							December 31, 2020
	Gross Carrying		Accumulated			Net		Gross Carrying		Accumulated			Net
(dollars in millions)	Amount		Amortization			Amount		Amount		Amortization			Amount
Intangible assets subject to amortization
Customer relationships	$	850.0	$	(7.1	)	$	842.9	$	141.6	$	(38.9	)	$	102.7
Trade names		108.0		(1.2	)		106.8		41.7		(9.4	)		32.3
Technology		5.0		(0.1	)		4.9		9.9		(3.2	)		6.7
Total		963.0		(8.4	)		954.6		193.2		(51.5	)		141.7
Intangible assets not subject to amortization
FCC licenses and spectrum usage rights		6.6		—			6.6		6.4		—			6.4
Total intangible assets	$	969.6	$	(8.4	)	$	961.2	$	199.6	$	(51.5	)	$	148.1

Schedule of Estimated Useful Lives for Finite-lived Intangible Assets

The estimated useful lives for each finite-lived intangible asset class are as follows:

	Successor	Predecessor
	September 30, 2021	December 31, 2020
Customer relationships	15 years	8 to 15 years
Trade names	3 to 10 years	10 to 15 years
Technology	7 years	10 years

Schedule of Estimated Amortization Expense

The annual estimated amortization expense for future years is as follows:

(dollars in millions)
Three months ended December 31, 2021	$	33.0
2022		120.0
2023		112.9
2024		103.8
2025		92.1
Thereafter		492.8
Total	$	954.6

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Debt and Other Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s debt consists of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020
Current portion of long-term debt:
Corporate Credit Agreement - Tranche B Term Loan due 2024	$	—		$	6.0
Credit Agreement - Term Loan due 2028		1.5			—
Paniolo Fiber Assets Financing Arrangement		0.5			—
Other financing arrangements		0.9			1.9
Finance lease liabilities		10.1			13.9
Current portion of long-term debt		13.0			21.8
Long-term debt, less current portion:
Receivables Facility		75.1			182.0
Corporate Credit Agreement - Revolving Credit Facility		—			67.0
Credit Agreement - Revolving Credit Facility due 2026		—			—
Credit Agreement - Tranche B Term Loan due 2024		—			580.5
Credit Agreement - Term Loan due 2028		148.5			—
7 1/4% Senior Notes due 2023 (1)		24.3			22.3
7% Senior Notes due 2024 (1)		637.2			625.0
8% Senior Notes due 2025 (1)		365.5			350.0
Various Cincinnati Bell Telephone notes (1)		97.8			87.9
Paniolo Fiber Assets Financing Arrangement		22.4			—
Other financing arrangements		0.5			0.9
Finance lease liabilities		47.1			52.1
		1,418.4			1,967.7
Net unamortized premium (2)		—			1.1
Unamortized note issuance costs (3)		(35.5	)		(18.9	)
Long-term debt, less current portion		1,382.9			1,949.9
Total debt	$	1,395.9		$	1,971.7

(1) As of September 30, 2021, the net carrying amounts of the 7 ¼% Senior Notes due 2023, 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments related to the Merger of $2.0 million, $12.2 million, $15.5 million and $9.9 million, respectively. Each adjustment is being amortized over the life of the respective notes and is recorded as a reduction of interest expense.  

(2) Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period.  

(3) Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below.

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to the Company's leases is as follows:

		Successor		Predecessor
(dollars in millions)	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating lease assets, net of amortization	Operating lease right-of-use assets	$	41.4	$	37.4
Finance lease assets, net of amortization	Property, plant and equipment, net		15.4		28.0
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities		8.8		9.6
Noncurrent operating lease liabilities	Operating lease liabilities		38.0		33.6
Total operating lease liabilities			46.8		43.2
Finance lease liabilities:
Current finance lease liabilities	Current portion of long-term debt		10.1		13.9
Noncurrent finance lease liabilities	Long-term debt, less current portion		47.1		52.1
Total finance lease liabilities		$	57.2	$	66.0

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows:

	Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	0.3	$	2.9	$	3.3
Operating cash flows from operating leases	$	0.8	$	7.2	$	9.5
Financing cash flows from finance leases	$	1.2	$	9.9	$	13.9
Right-of-use assets obtained in exchange for lease obligations:
New operating leases	$	—	$	11.5	$	6.8
New finance leases	$	—	$	3.8	$	4.0

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Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets

As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows:

		Predecessor
(dollars in millions)	Balance Sheet Location	December 31, 2020		Quoted Prices in active markets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Liabilities:
Interest Rate Swap	Other current liabilities	$	9.3	$	—	$	9.3	$	—
Interest Rate Swap	Other noncurrent liabilities	$	16.1	$	—	$	16.1	$	—

Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Net of Reclassification into Earnings

The amount of gains (losses) recognized in AOCI (effective portion) net of reclassifications into earnings is as follows:

	Successor		Predecessor		Predecessor		Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021		Three Months Ended September 30, 2020		September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Interest Rate Swap	$	—	$	—	$	1.7	$	—	$	5.3	$	(8.6	)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The amount of losses reclassified from AOCI into earnings is as follows:

		Successor		Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	Statement of Operations Location	September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Interest Rate Swap	Other (income) expense, net	$	—	$	(20.1	)	$	—		$	—	$	(20.1	)	$	—
Interest Rate Swap	Interest expense	$	—	$	(0.8	)	$	(2.3	)	$	—	$	(5.4	)	$	(6.0	)

Schedule of Carrying and Fair Values by Balance Sheet Grouping

The carrying and fair values of these items are as follows:

	Successor				Predecessor
	September 30, 2021				December 31, 2020
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion*	$	1,372.8	$	1,370.5	$	1,921.8	$	1,973.4
Other financing arrangements		53.8		53.8		42.1		58.6

*Excludes finance leases, other financing arrangements and note issuance costs.

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Pension and Postretirement Plans (Tables)

9 Months Ended

Sep. 30, 2021

Compensation And Retirement Disclosure [Abstract]

Schedule of Pension and Postretirement Costs (Benefits)

Pension and postretirement costs (benefits) are as follows:

	Pension Benefits									Postretirement and Other Benefits
	Successor			Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020
Service cost	$	—		$	—		$	—		$	—	$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		0.9			2.7			4.6			0.1		0.5			0.9
Expected return on plan assets		(2.1	)		(5.2	)		(7.1	)		—		—			—
Amortization of:
Prior service benefit		—			—			—			—		(0.4	)		(0.6	)
Actuarial loss		—			4.5			4.5			—		—			0.3
Pension / postretirement costs	$	(1.2	)	$	2.0		$	2.0		$	0.1	$	0.2		$	0.7

	Pension Benefits									Postretirement and Other Benefits
	Successor			Predecessor			Predecessor			Successor		Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020			September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Service cost	$	—		$	—		$	—		$	—	$	0.3		$	0.3
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		0.9			10.2			14.2			0.1		1.8			2.8
Expected return on plan assets		(2.1	)		(19.9	)		(21.6	)		—		—			—
Amortization of:
Prior service benefit		—			—			—			—		(1.7	)		(1.9	)
Actuarial loss		—			16.0			13.5			—		—			0.9
Pension settlement charges		—			—			1.1			—		—			—
Pension / postretirement costs	$	(1.2	)	$	6.3		$	7.2		$	0.1	$	0.4		$	2.1

Schedule of Weighted-Average Discount Rate Assumptions

The following are the weighted-average discount rate assumptions used in accounting for and measuring the projected benefit obligations:

	Pension Benefits		Postretirement and Other Benefits
	Successor	Predecessor	Successor	Predecessor
	September 8, 2021	December 31, 2020	September 8, 2021	December 31, 2020
Cincinnati plans	2.60%	2.40%	2.60%	2.40%
Hawaii plans	2.50%	2.30%	2.80%	2.60%

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Shareowners' Equity (Deficit) (Tables)

9 Months Ended

Sep. 30, 2021

Shareowners Deficit [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Loss by Component

The changes in accumulated other comprehensive loss by component were as follows:

(dollars in millions)
Successor	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Unrealized Loss on Cash Flow Hedges, Net				Foreign Currency Translation (Loss) Gain			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Foreign currency loss		—				—				(1.2	)		(1.2	)
Balance as of September 30, 2021	$	—			$	—			$	(1.2	)	$	(1.2	)
Predecessor
Balance as of June 30, 2021	$	(124.9	)		$	(15.7	)		$	1.4		$	(139.2	)
Reclassifications, net		2.8		(a)		16.2		(b)		—			19.0
Unrealized loss on cash flow hedges arising during the period, net		—				(0.6	)	(c)		—			(0.6	)
Foreign currency loss		—				—				(1.4	)		(1.4	)
Balance as of September 7, 2021	$	(122.1	)		$	(0.1	)		$	—		$	(122.2	)
Balance as of June 30, 2020	$	(159.4	)		$	(22.7	)		$	(7.5	)	$	(189.6	)
Remeasurement of benefit obligations		3.2				—				—			3.2
Reclassifications, net		3.2		(a)		1.8		(b)		—			5.0
Unrealized loss on cash flow hedges arising during the period, net		—				(0.5	)	(c)		—			(0.5	)
Foreign currency gain		—				—				2.0			2.0
Balance as of September 30, 2020	$	(153.0	)		$	(21.4	)		$	(5.5	)	$	(179.9	)

(dollars in millions)
Successor	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Unrealized Loss on Cash Flow Hedges, Net				Foreign Currency Translation (Loss) Gain			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Foreign currency loss		—				—				(1.2	)		(1.2	)
Balance as of September 30, 2021	$	—			$	—			$	(1.2	)	$	(1.2	)
Predecessor
Balance as of December 31, 2020	$	(138.8	)		$	(19.7	)		$	(1.2	)	$	(159.7	)
Remeasurement of benefit obligations		6.0				—				—			6.0
Reclassifications, net		10.7		(a)		19.7		(b)		—			30.4
Unrealized loss on cash flow hedges arising during the period, net		—				(0.1	)	(c)		—			(0.1	)
Foreign currency gain		—				—				1.2			1.2
Balance as of September 7, 2021	$	(122.1	)		$	(0.1	)		$	—		$	(122.2	)
Balance as of December 31, 2019	$	(152.0	)		$	(14.7	)		$	(3.4	)	$	(170.1	)
Remeasurement of benefit obligations		(11.5	)			—				—			(11.5	)
Reclassifications, net		10.5		(a)		4.6		(b)		—			15.1
Unrealized loss on cash flow hedges arising during the period, net		—				(11.3	)	(c)		—			(11.3	)
Foreign currency loss		—				—				(2.1	)		(2.1	)
Balance as of September 30, 2020	$	(153.0	)		$	(21.4	)		$	(5.5	)	$	(179.9	)

(a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures.

(b) These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings.

(c) The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures.

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Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Selected Financial Data for the Company's Business Segment Information

Selected financial data for the Company’s business segment information is as follows:

	Successor			Predecessor			Predecessor			Successor			Predecessor			Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021			July 1, 2021 to September 7, 2021			Three Months Ended September 30, 2020			September 8, 2021 to September 30, 2021			January 1, 2021 to September 7, 2021			Nine Months Ended September 30, 2020
Revenue
Entertainment and Communications	$	61.7		$	180.4		$	241.0		$	61.7		$	664.2		$	724.5
IT Services and Hardware		52.0			138.7			155.2			52.0			492.4			444.5
Intersegment		(2.3	)		(4.5	)		(6.7	)		(2.3	)		(17.9	)		(19.5	)
Total revenue	$	111.4		$	314.6		$	389.5		$	111.4		$	1,138.7		$	1,149.5
Intersegment revenue
Entertainment and Communications	$	1.6		$	3.4		$	4.9		$	1.6		$	13.1		$	14.8
IT Services and Hardware		0.7			1.1			1.8			0.7			4.8			4.7
Total intersegment revenue	$	2.3		$	4.5		$	6.7		$	2.3		$	17.9		$	19.5
Operating (loss) income
Entertainment and Communications	$	(2.3	)	$	18.9		$	27.2		$	(2.3	)	$	78.3		$	69.8
IT Services and Hardware		1.7			9.0			4.6			1.7			25.2			11.5
Corporate		(0.8	)		(63.2	)		(7.1	)		(0.8	)		(75.8	)		(49.1	)
Total operating (loss) income	$	(1.4	)	$	(35.3	)	$	24.7		$	(1.4	)	$	27.7		$	32.2
Expenditures for long-lived assets*
Entertainment and Communications	$	33.4		$	92.0		$	57.6		$	33.4		$	199.8		$	144.2
IT Services and Hardware		3.3			4.0			3.9			3.3			15.9			16.7
Corporate		1,620.7			—			—			1,620.7			—			—
Total expenditures for long-lived assets	$	1,657.4		$	96.0		$	61.5		$	1,657.4		$	215.7		$	160.9
Depreciation and amortization
Entertainment and Communications	$	24.3		$	44.5		$	61.6		$	24.3		$	166.9		$	190.0
IT Services and Hardware		5.8			7.6			10.2			5.8			27.9			30.7
Corporate		0.1			—			0.1			0.1			0.1			0.1
Total depreciation and amortization	$	30.2		$	52.1		$	71.9		$	30.2		$	194.9		$	220.8
* Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020

	Successor		Predecessor
(dollars in millions)	September 30, 2021		December 31, 2020
Assets
Entertainment and Communications	$	2,885.3	$	1,803.3
IT Services and Hardware		844.9		477.2
Corporate and eliminations		360.2		388.1
Total assets	$	4,090.4	$	2,668.6

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Description of Business and Accounting Policies - Narrative (Details)	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($) Customer	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021 USD ($) $ / shares	Sep. 30, 2021 USD ($) Customer	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) Customer
Description of Business and Accounting Policies [Line Items]
Revenue derived from foreign operations	6.00%	6.00%	5.00%	6.00%		5.00%
Restructuring liabilities included in other current liabilities	$ 100,000				$ 100,000		$ 4,500,000
Share-based compensation arrangement outstanding awards granted	$ 0				$ 0
Cash-settled awards, granted value						$ 10,500,000
Cash-settled awards, vesting period						3 years
Cash-settled awards, remaining unrecognized compensation expense, period for recognition						18 months
Vesting One [Member]
Description of Business and Accounting Policies [Line Items]
Cash-settled awards, vesting payment percentage					25.00%
Vesting Two [Member]
Description of Business and Accounting Policies [Line Items]
Cash-settled awards, vesting payment percentage					25.00%
Vesting Three [Member]
Description of Business and Accounting Policies [Line Items]
Cash-settled awards, vesting payment percentage					50.00%
Red Fiber Parent LLC [Member]
Description of Business and Accounting Policies [Line Items]
Share based compensation arrangement by share based purchase price | $ / shares				$ 15.50
Red Fiber Parent LLC [Member] | SG&A [Member]
Description of Business and Accounting Policies [Line Items]
Incremental stock-based compensation expense				$ 9,300,000
Verizon Communications Inc. [Member]
Description of Business and Accounting Policies [Line Items]
Accounts receivable from one customer greater than 10%, percentage	15.00%				15.00%		20.00%
Number of customers, exceeds 10% of total accounts receivable | Customer	1				1		1

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Description of Business and Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2021	Sep. 07, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Cash and cash equivalents	$ 5.4		$ 12.2
Restricted cash included in Other noncurrent assets	0.0		5.0
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows	$ 5.4	$ 11.2	$ 17.2	$ 8.8	$ 11.6

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Mergers and Acquisitions - Narrative (Details)					1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended	12 Months Ended	20 Months Ended
	Sep. 22, 2021 USD ($) $ / shares	Sep. 07, 2021 USD ($) $ / shares	Aug. 31, 2021 USD ($) mi	Mar. 13, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 07, 2021 USD ($) $ / shares	Sep. 30, 2020 USD ($)	Sep. 07, 2021 USD ($) $ / shares	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Sep. 07, 2021 USD ($) $ / shares	Sep. 08, 2021 USD ($)
Business Acquisition [Line Items]
Gross value of acquisition					$ 1,620,700,000			$ 0	$ 0
Preferred Stock, Dividend Rate, Percentage										6.75%
Transaction and integration costs					0	$ 51,500,000	$ 2,200,000	54,800,000	33,800,000
Loss on extinguishment of debt					0	$ (10,700,000)	$ 0	$ (10,700,000)	0
Funded to escrow account					0					$ 5,000,000.0
Red Fiber Parent LLC [Member]
Business Acquisition [Line Items]
Gross value of acquisition		$ 3,100,000,000
Debt assumed		$ 1,357,100,000
Common shares price per share as stock consideration | $ / shares		$ 15.50				$ 15.50		$ 15.50			$ 15.50
Preferred stock redemption percentage	6.75%
Preferred stock redemption price per Depositary Share | $ / shares	$ 50
Preferred stock redemption preference per redemption percentage	$ 1,000
Preferred Stock, Dividend Rate, Percentage	6.75%
Cumulative transaction costs					$ 0			$ 54,600,000	$ 8,700,000		$ 64,400,000
Transaction and integration costs		$ 44,000,000.0
Severance Costs								2,900,000
Transaction-related bonuses								5,300,000
Loss on extinguishment of debt								10,700,000
Red Fiber Parent LLC [Member] | New Credit Agreement and Term Loan Due 2028 [Member]
Business Acquisition [Line Items]
Note issuance costs capitalized												$ 32,000,000.0
Debt instrument maturity year					2028
Red Fiber Parent LLC [Member] | Revolving Credit Facility Due 2026 [Member]
Business Acquisition [Line Items]
Note issuance costs capitalized												$ 6,100,000
Debt instrument maturity year					2026
Red Fiber Parent LLC [Member] | SG&A [Member]
Business Acquisition [Line Items]
Incremental stock-based compensation expense								$ 9,300,000
Brookfield Infrastructure Group [Member]
Business Acquisition [Line Items]
Termination fee				$ 24,800,000
Paniolo Acquisition [Member]
Business Acquisition [Line Items]
Gross value of acquisition			$ 29,300,000
Aggregate purchase price			52,300,000
Business combination committed purchase money financing			$ 23,000,000.0
Current portion of long-term debt					$ 500,000
Long-term debt, less current portion					$ 22,400,000
Funded to escrow account										$ 5,000,000.0
Paniolo Acquisition [Member] | Minimum [Member]
Business Acquisition [Line Items]
Fiber route miles | mi			400

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Mergers and Acquisitions - Schedule of Consideration (Details) - Cincinnati Bell Inc. [Member] $ in Millions	Sep. 07, 2021 USD ($)
Business Acquisition [Line Items]
Cash consideration for Cincinnati Bell Inc. stock	$ 807.3
Cash consideration for preferred stock	155.2
Cash consideration for debt repayment	658.2
Total purchase price	$ 1,620.7

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Mergers and Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions	Sep. 30, 2021	Sep. 08, 2021	Sep. 07, 2021	Dec. 31, 2020
Assets acquired
Goodwill	$ 646.3	$ 0.0	$ 162.2	$ 161.5
Cincinnati Bell Inc. [Member]
Assets acquired
Cash			11.2
Receivables			318.5
Inventory, materials and supplies			56.4
Prepaid expenses			5.6
Other current assets			40.5
Property, plant and equipment			1,950.7
Operating lease right-of-use assets			42.3
Goodwill			646.3
Intangible assets			969.6
Deferred tax assets			6.9
Other noncurrent assets			20.2
Total assets acquired			4,068.2
Liabilities assumed
Current portion of long-term debt			11.8
Accounts payable			381.1
Unearned revenue and customer deposits			51.2
Accrued taxes			24.6
Accrued interest			19.4
Accrued payroll and benefits			49.3
Other current liabilities			75.0
Long-term debt, less current portion			1,378.0
Operating lease liabilities			38.6
Pension and postretirement benefit obligations			151.6
Pole license agreement obligation			46.7
Deferred income tax liability			148.8
Other noncurrent liabilities			71.4
Total liabilities assumed			2,447.5
Net assets acquired			$ 1,620.7

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Mergers and Acquisitions - Preliminary Fair Values of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Sep. 07, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Fair Value		$ 963.0	$ 193.2
Fair Value		969.6	199.6
Customer Relationships [Member]
Business Acquisition [Line Items]
Fair Value		$ 850.0	$ 141.6
Customer Relationships [Member] | Minimum [Member]
Business Acquisition [Line Items]
Useful Lives		15 years	8 years
Customer Relationships [Member] | Maximum [Member]
Business Acquisition [Line Items]
Useful Lives			15 years
Trade Names [Member]
Business Acquisition [Line Items]
Fair Value		$ 108.0	$ 41.7
Trade Names [Member] | Minimum [Member]
Business Acquisition [Line Items]
Useful Lives		3 years	10 years
Trade Names [Member] | Maximum [Member]
Business Acquisition [Line Items]
Useful Lives		10 years	15 years
Technology [Member]
Business Acquisition [Line Items]
Fair Value		$ 5.0	$ 9.9
Useful Lives		7 years	10 years
Cincinnati Bell Inc. [Member]
Business Acquisition [Line Items]
Fair Value	$ 969.6
Cincinnati Bell Inc. [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Fair Value	$ 850.0
Useful Lives	15 years
Cincinnati Bell Inc. [Member] | Trade Names [Member]
Business Acquisition [Line Items]
Fair Value	$ 108.0
Cincinnati Bell Inc. [Member] | Trade Names [Member] | Minimum [Member]
Business Acquisition [Line Items]
Useful Lives	3 years
Cincinnati Bell Inc. [Member] | Trade Names [Member] | Maximum [Member]
Business Acquisition [Line Items]
Useful Lives	10 years
Cincinnati Bell Inc. [Member] | Technology [Member]
Business Acquisition [Line Items]
Fair Value	$ 5.0
Useful Lives	7 years
Cincinnati Bell Inc. [Member] | FCC Licenses and Spectrum Usage Rights [Member]
Business Acquisition [Line Items]
Fair Value	$ 6.6

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Revenue - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Payment terms for customers, lower range	30 days
Payment term for customers, upper range	120 days
Total	$ 138.0
Unearned revenue and customer deposits	56.3	$ 68.9
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Unearned revenue and customer deposits	1.7	1.6
Other Noncurrent Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Contract liabilities, recognized, noncurrent	$ 58.1	$ 26.2
Contract Signed in Successor Period [Member]
Disaggregation Of Revenue [Line Items]
Indefeasible right of use of contract term	20 years
Revenue, Remaining Performance Obligation, Percentage	75.00%
Minimum [Member]
Disaggregation Of Revenue [Line Items]
Customer contract term	1 year
SEA-US contract term	15 years
Indefeasible right of use of contract term	15 years
Maximum [Member]
Disaggregation Of Revenue [Line Items]
Customer contract term	5 years
SEA-US contract term	25 years
Indefeasible right of use of contract term	25 years
Indefeasible Right of Use, Maximum, in Years	30 years

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Revenue - Schedule of Expected Revenue to be Recognized for Existing IRU Contracts (Details) $ in Millions	Sep. 30, 2021 USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 138.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 0.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 4.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 6.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 7.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 7.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Expected revenue to be recognized	$ 111.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

XML

Revenue - Schedule of Activity of Contract Assets (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Jun. 30, 2021	Mar. 31, 2021
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	$ 0.0	$ 24.9	$ 25.6	$ 26.8
Capitalized contract cost, Additions	1.3	3.7	4.5	4.5
Capitalized contract cost, Amortization	0.0	(4.0)	(5.2)	(5.7)
Capitalized contract cost, net, ending Balance	1.3	24.6	24.9	25.6
Fulfillment Costs [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	5.8	6.7	7.4
Capitalized contract cost, Additions	0.5	1.5	1.7	1.9
Capitalized contract cost, Amortization	0.0	(1.9)	(2.6)	(2.6)
Capitalized contract cost, net, ending Balance	0.5	5.4	5.8	6.7
Cost of Acquisition [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	19.1	18.9	19.4
Capitalized contract cost, Additions	0.8	2.2	2.8	2.6
Capitalized contract cost, Amortization	0.0	(2.1)	(2.6)	(3.1)
Capitalized contract cost, net, ending Balance	0.8	19.2	19.1	18.9
Entertainment and Communications [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	17.5	18.2	19.3
Capitalized contract cost, Additions	1.0	2.7	3.5	3.5
Capitalized contract cost, Amortization	0.0	(3.1)	(4.2)	(4.6)
Capitalized contract cost, net, ending Balance	1.0	17.1	17.5	18.2
Entertainment and Communications [Member] | Fulfillment Costs [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	1.5	2.5	3.5
Capitalized contract cost, Additions	0.2	0.7	0.9	0.9
Capitalized contract cost, Amortization	0.0	(1.4)	(1.9)	(1.9)
Capitalized contract cost, net, ending Balance	0.2	0.8	1.5	2.5
Entertainment and Communications [Member] | Cost of Acquisition [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	16.0	15.7	15.8
Capitalized contract cost, Additions	0.8	2.0	2.6	2.6
Capitalized contract cost, Amortization	0.0	(1.7)	(2.3)	(2.7)
Capitalized contract cost, net, ending Balance	0.8	16.3	16.0	15.7
IT Services and Hardware [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	7.4	7.4	7.5
Capitalized contract cost, Additions	0.3	1.0	1.0	1.0
Capitalized contract cost, Amortization	0.0	(0.9)	(1.0)	(1.1)
Capitalized contract cost, net, ending Balance	0.3	7.5	7.4	7.4
IT Services and Hardware [Member] | Fulfillment Costs [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	4.3	4.2	3.9
Capitalized contract cost, Additions	0.3	0.8	0.8	1.0
Capitalized contract cost, Amortization	0.0	(0.5)	(0.7)	(0.7)
Capitalized contract cost, net, ending Balance	0.3	4.6	4.3	4.2
IT Services and Hardware [Member] | Cost of Acquisition [Member]
Contract Asset [Roll Forward]
Capitalized contract cost, net, beginning balance	0.0	3.1	3.2	3.6
Capitalized contract cost, Additions	0.0	0.2	0.2	0.0
Capitalized contract cost, Amortization	0.0	(0.4)	(0.3)	(0.4)
Capitalized contract cost, net, ending Balance	$ 0.0	$ 2.9	$ 3.1	$ 3.2

XML

Revenue - Schedule of Revenues Disaggregation by Product and Service Lines (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Disaggregation Of Revenue [Line Items]
Revenues	$ 111.4	$ 314.6	$ 389.5	$ 1,138.7	$ 1,149.5
Operating Segments [Member] | Entertainment and Communications [Member]
Disaggregation Of Revenue [Line Items]
Revenues	61.7	180.4	241.0	664.2	724.5
Operating Segments [Member] | Entertainment and Communications [Member] | Data [Member]
Disaggregation Of Revenue [Line Items]
Revenues	31.6	91.7	119.8	334.6	358.8
Operating Segments [Member] | Entertainment and Communications [Member] | Video [Member]
Disaggregation Of Revenue [Line Items]
Revenues	12.2	35.3	48.1	131.8	145.1
Operating Segments [Member] | Entertainment and Communications [Member] | Voice [Member]
Disaggregation Of Revenue [Line Items]
Revenues	15.8	46.8	65.5	177.3	197.6
Operating Segments [Member] | Entertainment and Communications [Member] | Other [Member]
Disaggregation Of Revenue [Line Items]
Revenues	2.1	6.6	7.6	20.5	23.0
Operating Segments [Member] | IT Services and Hardware [Member]
Disaggregation Of Revenue [Line Items]
Revenues	52.0	138.7	155.2	492.4	444.5
Operating Segments [Member] | IT Services and Hardware [Member] | Consulting
Disaggregation Of Revenue [Line Items]
Revenues	21.6	56.5	49.4	193.6	138.5
Operating Segments [Member] | IT Services and Hardware [Member] | Cloud
Disaggregation Of Revenue [Line Items]
Revenues	6.6	18.7	21.1	66.4	63.0
Operating Segments [Member] | IT Services and Hardware [Member] | Communications
Disaggregation Of Revenue [Line Items]
Revenues	14.2	40.1	53.9	149.1	160.3
Operating Segments [Member] | IT Services and Hardware [Member] | Infrastructure Solutions
Disaggregation Of Revenue [Line Items]
Revenues	9.6	23.4	30.8	83.3	82.7
Intersegment Eliminations [Member]
Disaggregation Of Revenue [Line Items]
Revenues	(2.3)	(4.5)	(6.7)	(17.9)	(19.5)
Intersegment Eliminations [Member] | Entertainment and Communications [Member]
Disaggregation Of Revenue [Line Items]
Revenues	1.6	3.4	4.9	13.1	14.8
Intersegment Eliminations [Member] | IT Services and Hardware [Member]
Disaggregation Of Revenue [Line Items]
Revenues	$ 0.7	$ 1.1	$ 1.8	$ 4.8	$ 4.7

XML

Revenue - Schedule of Revenues Disaggregation by Contract Type (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Disaggregation Of Revenue [Line Items]
Revenues	$ 111.4	$ 314.6	$ 389.5	$ 1,138.7	$ 1,149.5
Intersegment Eliminations [Member]
Disaggregation Of Revenue [Line Items]
Revenues	(2.3)	(4.5)	(6.7)	(17.9)	(19.5)
Transferred at Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenues	13.2	29.2	40.7	105.9	112.3
Transferred at Point in Time [Member] | Intersegment Eliminations [Member]
Disaggregation Of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0	0.0
Transferred over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenues	98.2	285.4	348.8	1,032.8	1,037.2
Transferred over Time [Member] | Intersegment Eliminations [Member]
Disaggregation Of Revenue [Line Items]
Revenues	0.0	0.0	0.0	0.0	0.0
Entertainment and Communications [Member] | Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Revenues	61.7	180.4	241.0	664.2	724.5
Entertainment and Communications [Member] | Intersegment Eliminations [Member]
Disaggregation Of Revenue [Line Items]
Revenues	1.6	3.4	4.9	13.1	14.8
Entertainment and Communications [Member] | Transferred at Point in Time [Member] | Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Revenues	2.1	4.1	6.6	15.8	19.1
Entertainment and Communications [Member] | Transferred over Time [Member] | Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Revenues	58.0	172.9	229.5	635.3	690.6
IT Services and Hardware [Member] | Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Revenues	52.0	138.7	155.2	492.4	444.5
IT Services and Hardware [Member] | Intersegment Eliminations [Member]
Disaggregation Of Revenue [Line Items]
Revenues	0.7	1.1	1.8	4.8	4.7
IT Services and Hardware [Member] | Transferred at Point in Time [Member] | Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Revenues	11.1	25.1	34.1	90.1	93.2
IT Services and Hardware [Member] | Transferred over Time [Member] | Operating Segments [Member]
Disaggregation Of Revenue [Line Items]
Revenues	$ 40.2	$ 112.5	$ 119.3	$ 397.5	$ 346.6

XML

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Land and rights-of-way	$ 132.3	$ 115.7
Buildings and leasehold improvements	184.8	323.8
Network equipment	1,498.6	4,180.0
Office software, furniture, fixtures and vehicles	89.6	243.7
Construction in process	73.4	60.4
Gross value	1,978.7	4,923.6
Accumulated depreciation	(21.8)	(3,194.5)
Property, plant and equipment, net	$ 1,956.9	$ 1,729.1
Land [Member] | Minimum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Land [Member] | Maximum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	Indefinite
Building and Building Improvements [Member] | Minimum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Building and Building Improvements [Member] | Maximum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Equipment [Member] | Minimum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	2 years
Equipment [Member] | Maximum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	50 years
Furniture and Fixtures [Member] | Minimum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	2 years
Furniture and Fixtures [Member] | Maximum [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life	14 years

XML

Property, Plant and Equipment - Narrative (Details) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property, plant and equipment, net	$ 1,956,900,000					$ 1,729,100,000
Depreciation	21,800,000	$ 49,400,000	$ 68,300,000	$ 185,000,000.0	$ 210,000,000.0
Asset impairment losses	0	$ 0	$ 0	$ 0	$ 0
Fair Value, Inputs, Level 3 [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, net	$ 162,100,000

XML

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	1 Months Ended	8 Months Ended
	Sep. 30, 2021	Sep. 07, 2021
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 0.0	$ 161.5
Merger	646.3
Currency translations		0.7
Goodwill, ending balance	646.3	162.2
IT Services and Hardware [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	0.0	149.1
Merger	157.4
Currency translations		0.7
Goodwill, ending balance	157.4	149.8
Entertainment and Communications [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	0.0	12.4
Merger	488.9
Currency translations		0.0
Goodwill, ending balance	$ 488.9	$ 12.4

XML

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended		8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment losses recognized in goodwill	$ 0	$ 0		$ 0	$ 0		$ 0
Fair Value	969,600,000		$ 969,600,000			$ 969,600,000		$ 199,600,000
Amortization of finite-lived intangible assets	8,400,000		$ 2,700,000	3,600,000		$ 9,900,000	10,800,000
Impairment of intangible assets, finite-lived	$ 0	$ 0		$ 0	$ 0		$ 0

XML

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, gross carrying amount	$ 963.0	$ 193.2
Accumulated amortization	(8.4)	(51.5)
Intangible assets subject to amortization, net amount	954.6	141.7
Fair Value	969.6	199.6
Intangible assets, net amount	961.2	148.1
FCC Licenses and Spectrum Usage Rights [Member]
Finite Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	6.6	6.4
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, gross carrying amount	850.0	141.6
Accumulated amortization	(7.1)	(38.9)
Intangible assets subject to amortization, net amount	842.9	102.7
Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, gross carrying amount	108.0	41.7
Accumulated amortization	(1.2)	(9.4)
Intangible assets subject to amortization, net amount	106.8	32.3
Technology [Member]
Finite Lived Intangible Assets [Line Items]
Intangible assets subject to amortization, gross carrying amount	5.0	9.9
Accumulated amortization	(0.1)	(3.2)
Intangible assets subject to amortization, net amount	$ 4.9	$ 6.7

XML

Goodwill and Intangible Assets - Schedule of Estimated Useful Lives for Finite-lived Intangible Assets (Details)	1 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Customer Relationships [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years	8 years
Customer Relationships [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		15 years
Trade Names [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years	10 years
Trade Names [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years	15 years
Technology [Member]
Finite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	7 years	10 years

XML

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Three months ended December 31, 2021	$ 33.0
2022	120.0
2023	112.9
2024	103.8
2025	92.1
Thereafter	492.8
Intangible assets subject to amortization, net amount	$ 954.6	$ 141.7

XML

Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Current portion of long-term debt		$ 13.0	$ 21.8
Other Financing Arrangements, Current Portion		0.9	1.9
Finance lease liabilities, current		10.1	13.9
Receivables Facility		75.1	182.0
Corporate Credit Agreement - Revolving Credit Facility		0.0	67.0
Long-term debt, less current portion		1,382.9	1,949.9
Other Financing Arrangements, Non-Current Portion		0.5	0.9
Finance lease liabilities, Noncurrent		47.1	52.1
Long-term debt gross		1,418.4	1,967.7
Net unamortized premium		0.0	1.1	[1]
Unamortized note issuance costs	[2]	(35.5)	(18.9)
Total debt		1,395.9	1,971.7
Revolving Credit Facility Due 2026 [Member]
Debt Instrument [Line Items]
Corporate Credit Agreement - Revolving Credit Facility		0.0	0.0
Tranche B Term Loan due 2024 [Member]
Debt Instrument [Line Items]
Current portion of long-term debt		0.0	6.0
Long-term debt, less current portion		0.0	580.5
Term Loan due 2028 [Member]
Debt Instrument [Line Items]
Current portion of long-term debt		1.5	0.0
Long-term debt, less current portion		148.5	0.0
Paniolo Fiber Assets [Member]
Debt Instrument [Line Items]
Financing Arrangement, Current Portion		0.5	0.0
Financing Arrangement, Noncurrent Portion		22.4	0.0
Senior Notes due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	[3]	24.3	22.3
Senior Notes due 2024 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	[3]	637.2	625.0
Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Senior Notes, Noncurrent	[3]	365.5	350.0
Various Cincinnati Bell Telephone Notes [Member]
Debt Instrument [Line Items]
Long-term debt, less current portion	[3]	$ 97.8	$ 87.9

[1] Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period.

[2] Unamortized note issuance costs of $9.3 million were determined to not meet the definition of an asset as of the Merger Date and were therefore not recognized by the Company in the Successor period. As of September 30, 2021, unamortized note issuance costs are associated with the 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Term Loan due 2028 defined below.

[3] As of September 30, 2021, the net carrying amounts of the 7 ¼% Senior Notes due 2023, 7% Senior Notes due 2024, 8% Senior Notes due 2025 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments related to the Merger of $2.0 million, $12.2 million, $15.5 million and $9.9 million, respectively. Each adjustment is being amortized over the life of the respective notes and is recorded as a reduction of interest expense.

XML

Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Sep. 07, 2021	Dec. 31, 2020	[1]
Debt Instrument [Line Items]
Net unamortized premium	$ 0.0		$ 1.1
Merger Agreement [Member]
Debt Instrument [Line Items]
Unamortized note issuance costs adjustment		$ 9.3
Senior Notes due 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	7.25%
Senior Notes due 2023 [Member] | Merger Agreement [Member]
Debt Instrument [Line Items]
Unamortized fair value adjustments related to merger	$ 2.0
Senior Notes due 2024 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	7.00%
Senior Notes due 2024 [Member] | Merger Agreement [Member]
Debt Instrument [Line Items]
Unamortized fair value adjustments related to merger	$ 12.2
Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	8.00%
Senior Notes due 2025 [Member] | Merger Agreement [Member]
Debt Instrument [Line Items]
Unamortized fair value adjustments related to merger	$ 15.5
Various Cincinnati Bell Telephone Notes [Member] | Merger Agreement [Member]
Debt Instrument [Line Items]
Unamortized fair value adjustments related to merger	$ 9.9

[1] Net unamortized premium was determined to not meet the definition of an asset as of the Merger Date and was therefore not recognized by the Company in the Successor period.

XML

Debt and Other Financing Arrangements - Narrative (Details) - USD ($) $ in Millions	Sep. 07, 2021	Sep. 30, 2021
Line Of Credit Facility [Line Items]
Consent fees	$ 3.9
Senior Notes due 2024 [Member]
Line Of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage		7.00%
Senior Notes due 2025 [Member]
Line Of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage		8.00%
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member]
Line Of Credit Facility [Line Items]
Fair-value step-up amount	$ 39.6

XML

Debt and Other Financing Arrangements - Credit Agreement - Narrative (Details) - USD ($)		1 Months Ended		8 Months Ended	9 Months Ended
	Sep. 07, 2021	Nov. 30, 2021	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Dec. 31, 2020
Line Of Credit Facility [Line Items]
Credit agreement term	5 years
Senior secured revolving credit facility	$ 275,000,000			$ 275,000,000
Payments of debt issuance costs			$ 42,000,000.0	$ 800,000	$ 500,000
Debt instrument floor interest rate	0.00%			0.00%
Revolving credit facility			$ 0			$ 67,000,000.0
Bridge Loan [Member]
Line Of Credit Facility [Line Items]
Senior secured revolving credit facility	$ 10,000,000			$ 10,000,000
Term Loan due 2028 [Member]
Line Of Credit Facility [Line Items]
Credit agreement term	7 years
Senior secured term loan facility	$ 150,000,000			150,000,000
Debt instrument expiration date	2028-09
Payments of debt issuance costs	$ 32,000,000.0
Term Loan due 2028 [Member] | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Senior secured term loan facility		$ 500,000,000
Debt instrument expiration date		2028-11
Debt instrument incremental increase		$ 350,000,000
Term Loan due 2028 [Member] | Federal Funds Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Term Loan due 2028 [Member] | Eurocurrency [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	4.25%
Term Loan due 2028 [Member] | Eurocurrency [Member] | Minimum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%		3.75%
Term Loan due 2028 [Member] | Eurocurrency [Member] | Maximum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%		4.75%
Term Loan due 2028 [Member] | Base Rate [Member] | Minimum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.75%
Term Loan due 2028 [Member] | Base Rate [Member] | Maximum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.75%
Revolving Credit Facility Due 2026 [Member]
Line Of Credit Facility [Line Items]
Payments of debt issuance costs	$ 6,100,000
Line of credit facility commitment fee on any unused portion	0.50%
Line of credit facility, commitment fee percentage	0.375%
Line of credit facility fronting fee percentage	0.125%
Revolving credit facility			$ 0
Borrowing capacity			$ 275,000,000.0
Revolving Credit Facility Due 2026 [Member] | Maximum [Member]
Line Of Credit Facility [Line Items]
Secured net leverage ratio	3.25%
Revolving Credit Facility Due 2026 [Member] | Federal Funds Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Revolving Credit Facility Due 2026 [Member] | Eurocurrency [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	4.25%
Revolving Credit Facility Due 2026 [Member] | Eurocurrency [Member] | Minimum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%		3.75%
Revolving Credit Facility Due 2026 [Member] | Eurocurrency [Member] | Maximum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			4.25%
Revolving Credit Facility Due 2026 [Member] | Base Rate [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Revolving Credit Facility Due 2026 [Member] | Base Rate [Member] | Minimum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.75%
Revolving Credit Facility Due 2026 [Member] | Base Rate [Member] | Maximum [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.25%
Tranche B-2 Term Loan due 2028 [Member] | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Senior secured term loan facility		$ 650,000,000
Debt instrument expiration date		2028-11
Senior Notes due 2024 [Member]
Line Of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage			7.00%
Senior Notes due 2025 [Member]
Line Of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage			8.00%
Standby Letters of Credit [Member]
Line Of Credit Facility [Line Items]
Senior secured revolving credit facility	$ 40,000,000			$ 40,000,000
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Debt instrument expiration date	2026-09
Revolving Credit Facility [Member] | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Senior secured revolving credit facility		$ 400,000,000
Line of credit facility, incremental increase		$ 125,000,000

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Debt and Other Financing Arrangements - Corporate Credit Agreement - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Loss on extinguishment of debt	$ 0.0	$ 10.7	$ 0.0	$ 10.7	$ 0.0

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Debt and Other Financing Arrangements - Paniolo Fiber Assets Financing - Narrative (Details) - USD ($) $ in Millions		3 Months Ended
	Sep. 07, 2021	Sep. 30, 2021
Line Of Credit Facility [Line Items]
Credit agreement term	5 years
Paniolo Fiber Assets [Member]
Line Of Credit Facility [Line Items]
Credit agreement term		5 years
Senior secured term loan facility		$ 23.0
Paniolo Fiber Assets [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line Of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		3.00%

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Debt and Other Financing Arrangements - Accounts Receivable Securitization Facility - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Line Of Credit Facility [Line Items]
Receivables facility amount outstanding	$ 75,100,000		$ 182,000,000.0
Letters of Credit Outstanding, Amount	14,800,000
Receivables Facility Remaining Borrowing Capacity	125,100,000
Receivables Facility Maximum Borrowing Availability	$ 215,000,000.0
Accounts Receivable Facility, Renewal Term, Month and Year	2023-06
Accounts Receivable Facility, Expiration Year And Month	2024-06
Receivables facility maximum borrowing capacity	$ 215,000,000.0	$ 200,000,000.0
Accounts Receivable Sold	$ 3,900,000
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Line Of Credit Facility [Line Items]
Cancellation of provision on receivable facility, interest rate	0.75%

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Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease assets, net of amortization	$ 41.4	$ 37.4
Finance lease assets, net of amortization	$ 15.4	$ 28.0
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net	Property, plant and equipment, net
Current operating lease liabilities	$ 8.8	$ 9.6
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Noncurrent operating lease liabilities	$ 38.0	$ 33.6
Total operating lease liabilities	46.8	43.2
Current finance lease liabilities	10.1	13.9
Noncurrent finance lease liabilities	47.1	52.1
Total finance lease liabilities	$ 57.2	$ 66.0

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Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	1 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$ 0.3	$ 2.9	$ 3.3
Operating cash flows from operating leases	0.8	7.2	9.5
Financing cash flows from finance leases	1.2	9.9	13.9
Right-of-use assets obtained in exchange for lease obligations:
New operating leases	0.0	11.5	6.8
New finance leases	$ 0.0	$ 3.8	$ 4.0

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Leases - Narratives (Details) - USD ($) $ in Millions	Aug. 31, 2021	Sep. 30, 2021	Sep. 01, 2021	Dec. 31, 2020
Lessee Lease Description [Line Items]
Sale leaseback transaction sale price	$ 9.1
Net proceeds from sale-leaseback transaction after transaction cost	6.6
Gain on sale of assets	$ 2.8
Operating lease right-of-use assets		$ 41.4		$ 37.4
Leaseback Agreement
Lessee Lease Description [Line Items]
Operating lease right-of-use assets			$ 7.7
Operating lease right of use liability			$ 7.7

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Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($)	2 Months Ended	3 Months Ended
	Sep. 07, 2021	Mar. 31, 2019	Jun. 30, 2018	Dec. 31, 2020
2.938% Interest Rate Contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount			$ 300,000,000.0
Average fixed interest rate			2.938%
Interest rate swap expiration date			2023-06
2.275% Interest Rate Contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount		$ 89,000,000.0
Average fixed interest rate		2.275%
Interest rate swap expiration date		2024-03
2.244% Interest Rate Contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount		$ 89,000,000.0
Average fixed interest rate		2.244%
Interest rate swap expiration date		2024-03
2.328% Interest Rate Contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount		$ 89,000,000.0
Average fixed interest rate		2.328%
Interest rate swap expiration date		2024-03
Interest Rate Contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Termination fee	$ 20,100,000
Interest Rate Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of interest rate swaps				$ 25,400,000

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Financial Instruments and Fair Value Measurements - Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets (Details) - Estimate of Fair Value, Fair Value Disclosure [Member] - Interest Rate Contract [Member] $ in Millions	Dec. 31, 2020 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap Liability, Current	$ 9.3
Interest Rate Swap Liability, Noncurrent	16.1
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap Liability, Current	0.0
Interest Rate Swap Liability, Noncurrent	0.0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap Liability, Current	9.3
Interest Rate Swap Liability, Noncurrent	16.1
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap Liability, Current	0.0
Interest Rate Swap Liability, Noncurrent	$ 0.0

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Financial Instruments and Fair Value Measurements - Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Net of Reclassification into Earnings (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Interest Rate Swap	$ 0.0	$ 0.0	$ 1.7	$ 5.3	$ (8.6)

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Financial Instruments and Fair Value Measurements - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Other (Income) Expense, Net [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap	$ 0.0	$ (20.1)	$ 0.0	$ (20.1)	$ 0.0
Interest Expense [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap	$ 0.0	$ (0.8)	$ (2.3)	$ (5.4)	$ (6.0)

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Financial Instruments and Fair Value Measurements - Schedule of Carrying and Fair Values by Balance Sheet Grouping (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	[1]	$ 1,372.8	$ 1,921.8
Other financing arrangements		53.8	42.1
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	[1]	1,370.5	1,973.4
Other financing arrangements		$ 53.8	$ 58.6

[1] Excludes finance leases, other financing arrangements and note issuance costs.

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Pension and Postretirement Plans - Narrative (Details)		1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 07, 2021 USD ($)	Sep. 30, 2021 USD ($)	Sep. 07, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 07, 2021 USD ($)	Sep. 30, 2021 USD ($) Plan	Sep. 30, 2020 USD ($)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Actuarial gains (losses) and prior service costs (benefits) recorded in accumulated other comprehensive loss	$ 101,600,000		$ 101,600,000		$ 101,600,000
Cincinnati Plans [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Number of noncontributory defined benefit pension plans | Plan						3
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Decrease in benefit obligations	22,300,000		7,400,000	$ 10,800,000	7,400,000		$ 10,800,000
Settlements			$ 800,000	$ 3,400,000	7,400,000		10,800,000
Pension settlement charges		$ 0			0		1,100,000
Pension Plans, Defined Benefit [Member] | Qualified Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Contributions to pension plans		0			900,000		2,800,000
Pension Plans, Defined Benefit [Member] | Nonqualified Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Contributions to pension plans		200,000			1,800,000		2,000,000.0
Expected future employer contributions, next fiscal year		3,000,000				$ 3,000,000
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Decrease in benefit obligations	$ 4,300,000
Pension settlement charges		0			0		0
Contributions to pension plans		500,000			$ 4,300,000		$ 4,300,000
Expected future employer contributions, next fiscal year		$ 8,000,000				$ 8,000,000

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Pension and Postretirement Plans - Schedule of Pension and Postretirement Costs (Benefits) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	0.9	2.7	4.6	10.2	14.2
Expected return on plan assets	(2.1)	(5.2)	(7.1)	(19.9)	(21.6)
Amortization of:
Prior service benefit	0.0	0.0	0.0	0.0	0.0
Actuarial loss	0.0	4.5	4.5	16.0	13.5
Pension settlement charges	0.0			0.0	1.1
Pension / postretirement costs	(1.2)	2.0	2.0	6.3	7.2
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	0.0	0.1	0.1	0.3	0.3
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	0.1	0.5	0.9	1.8	2.8
Expected return on plan assets	0.0	0.0	0.0	0.0	0.0
Amortization of:
Prior service benefit	0.0	(0.4)	(0.6)	(1.7)	(1.9)
Actuarial loss	0.0	0.0	0.3	0.0	0.9
Pension settlement charges	0.0			0.0	0.0
Pension / postretirement costs	$ 0.1	$ 0.2	$ 0.7	$ 0.4	$ 2.1

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Pension and Postretirement Plans - Schedule of Weighted-Average Discount Rate Assumptions (Details)	Sep. 08, 2021	Dec. 31, 2020
Pension Plans, Defined Benefit [Member] | Cincinnati Plans [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	2.60%	2.40%
Pension Plans, Defined Benefit [Member] | Hawaii Plans [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	2.50%	2.30%
Other Postretirement Benefits Plan [Member] | Cincinnati Plans [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	2.60%	2.40%
Other Postretirement Benefits Plan [Member] | Hawaii Plans [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	2.80%	2.60%

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Income Taxes - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract]
Deferred income tax assets	$ 6.9	$ 82.5
Deferred income tax liability	147.7	$ 10.9
Federal net operating loss carryforwards	848.5
Federal net operating loss carryforwards, deferred tax asset value	$ 178.2
Operating loss carryforwards, expiration period	2022
Domestic Country | Expire in 2022
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract]
Federal net operating loss carryforwards	$ 55.8

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Shareowners' Equity (Deficit) - Additional Information (Details) - USD ($)		12 Months Ended
	Sep. 22, 2021	Dec. 31, 2020	Oct. 18, 2021	Sep. 30, 2021	Sep. 07, 2021
Class Of Stock [Line Items]
Preferred Stock, Dividend Rate, Percentage		6.75%
Common Stock, Par or Stated Value Per Share		$ 0.01		$ 0.01
Common Stock, Shares, Issued		50,680,605		500,000
Common Stock, Shares, Outstanding		50,680,605		500,000
Common Stock, Shares Authorized		96,000,000		96,000,000
Subsequent Event [Member]
Class Of Stock [Line Items]
Common Stock, Par or Stated Value Per Share			$ 0.01
Common Stock, Shares Authorized			100
Red Fiber Parent LLC [Member]
Class Of Stock [Line Items]
Common shares price per share as stock consideration					$ 15.50
Preferred stock redemption percentage	6.75%
Preferred stock redemption price per Depositary Share	$ 50
Preferred stock redemption preference per redemption percentage	$ 1,000
Preferred Stock, Dividend Rate, Percentage	6.75%
Common Stock, Par or Stated Value Per Share				$ 0.01
Common Stock, Shares, Issued				500,000
Common Stock, Shares, Outstanding				500,000
Common Stock, Shares Authorized				96,000,000

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Shareowners' Equity (Deficit) - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions		1 Months Ended		2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
		Sep. 30, 2021	Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		$ 0.0	$ (122.2)	$ (139.2)	$ (189.6)	$ (159.7)	$ (170.1)
Remeasurement of benefit obligations			0.0	0.0	3.2	6.0	(11.5)
Reclassifications, net				19.0	5.0	30.4	15.1
Unrealized loss on cash flow hedges arising during the period, net			0.0	(0.6)	(0.5)	(0.1)	(11.3)
Foreign currency gain (loss)		(1.2)	(1.2)	(1.4)	2.0	1.2	(2.1)
Ending balance		(1.2)	(1.2)	(122.2)	(179.9)	(122.2)	(179.9)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		0.0	(122.1)	(124.9)	(159.4)	(138.8)	(152.0)
Remeasurement of benefit obligations					3.2	6.0	(11.5)
Reclassifications, net	[1]			2.8	3.2	10.7	10.5
Unrealized loss on cash flow hedges arising during the period, net				0.0	0.0	0.0	0.0
Foreign currency gain (loss)		0.0		0.0	0.0	0.0	0.0
Ending balance		0.0	0.0	(122.1)	(153.0)	(122.1)	(153.0)
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		0.0	(0.1)	(15.7)	(22.7)	(19.7)	(14.7)
Remeasurement of benefit obligations					0.0	0.0	0.0
Reclassifications, net	[2]			16.2	1.8	19.7	4.6
Unrealized loss on cash flow hedges arising during the period, net	[3]			(0.6)	(0.5)	(0.1)	(11.3)
Foreign currency gain (loss)		0.0		0.0	0.0	0.0	0.0
Ending balance		0.0	0.0	(0.1)	(21.4)	(0.1)	(21.4)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		0.0	0.0	1.4	(7.5)	(1.2)	(3.4)
Remeasurement of benefit obligations					0.0	0.0	0.0
Reclassifications, net				0.0	0.0	0.0	0.0
Unrealized loss on cash flow hedges arising during the period, net				0.0	0.0	0.0	0.0
Foreign currency gain (loss)		(1.2)		(1.4)	2.0	1.2	(2.1)
Ending balance		$ (1.2)	$ (1.2)	$ 0.0	$ (5.5)	$ 0.0	$ (5.5)

[1] These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax and pension settlement charges, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures.

[2] These reclassifications are reported within "Interest expense" and "Other (income) expense, net" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings.

[3] The unrealized loss, net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets in the Predecessor period. See Note 8 for further disclosures.

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Business Segment Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2021 Segment
Segment Reporting [Abstract]
Number of operating segments	2

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Business Segment Information - Selected Financial Data for the Company's Business Segment Information (Details) - USD ($) $ in Millions		1 Months Ended	2 Months Ended	3 Months Ended	8 Months Ended	9 Months Ended
		Sep. 30, 2021	Sep. 07, 2021	Sep. 30, 2020	Sep. 07, 2021	Sep. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues		$ 111.4	$ 314.6	$ 389.5	$ 1,138.7	$ 1,149.5
Operating (loss) income		(1.4)	(35.3)	24.7	27.7	32.2
Expenditures for long-lived assets	[1]	1,657.4	96.0	61.5	215.7	160.9
Depreciation and amortization		30.2	52.1	71.9	194.9	220.8
Assets		4,090.4					$ 2,668.6
Operating Segments [Member] | Entertainment and Communications [Member]
Segment Reporting Information [Line Items]
Revenues		61.7	180.4	241.0	664.2	724.5
Operating (loss) income		(2.3)	18.9	27.2	78.3	69.8
Expenditures for long-lived assets	[1]	33.4	92.0	57.6	199.8	144.2
Depreciation and amortization		24.3	44.5	61.6	166.9	190.0
Assets		2,885.3					1,803.3
Operating Segments [Member] | IT Services and Hardware [Member]
Segment Reporting Information [Line Items]
Revenues		52.0	138.7	155.2	492.4	444.5
Operating (loss) income		1.7	9.0	4.6	25.2	11.5
Expenditures for long-lived assets	[1]	3.3	4.0	3.9	15.9	16.7
Depreciation and amortization		5.8	7.6	10.2	27.9	30.7
Assets		844.9					477.2
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenues		(2.3)	(4.5)	(6.7)	(17.9)	(19.5)
Intersegment Elimination [Member] | Entertainment and Communications [Member]
Segment Reporting Information [Line Items]
Revenues		1.6	3.4	4.9	13.1	14.8
Intersegment Elimination [Member] | IT Services and Hardware [Member]
Segment Reporting Information [Line Items]
Revenues		0.7	1.1	1.8	4.8	4.7
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating (loss) income		(0.8)	(63.2)	(7.1)	(75.8)	(49.1)
Expenditures for long-lived assets	[1]	1,620.7	0.0	0.0	0.0	0.0
Depreciation and amortization		0.1	0.0	0.1	0.1	0.1
Corporate and Elimination [Member]
Segment Reporting Information [Line Items]
Assets		360.2					$ 388.1
Sales [Member] | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenues		$ 2.3	$ 4.5	$ 6.7	$ 17.9	$ 19.5

[1] Includes cost of acquisitions in the Successor and Predecessor periods of 2021 and deposit for the purchase of wireless licenses in the three and nine months ended September 30, 2020

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Subsequent Events - Narrative (Details) $ in Millions	May 02, 2022 USD ($)
Agile Networks LLC [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Business acquisition	$ 65