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.