Shareowners' Equity (Deficit)

12 Months Ended

Dec. 31, 2021

Shareowners Deficit [Abstract]

Shareowners' Equity (Deficit)

12.    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.  

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).  

Effective October 18, 2021, Parent amended and restated the Articles of Incorporation of Cincinnati Bell to reduce the number of authorized shares from 96,000,000 Common Shares to 100 Common Shares, each with $0.01 par value. As of December 31, 2021, Parent is the sole shareholder of the Company’s 100 Common Shares.    

Accumulated Other Comprehensive Loss

Shareowners’ equity (deficit) includes accumulated other comprehensive income (loss) that is comprised of pension and postretirement unrecognized prior service benefit (cost) and unrecognized actuarial gains (losses), and foreign currency translation losses. Shareowners’ equity (deficit) also includes an accumulated other comprehensive loss recorded in the Predecessor periods for unrealized loss on cash flow hedges arising during the period.  

The changes in accumulated other comprehensive income (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			Total
Balance as of September 8, 2021 (remeasured upon Merger)	$	—			$	—			$	—		$	—
Remeasurement of benefit obligations		2.6				—				—			2.6
Foreign currency loss		—				—				(1.4	)		(1.4	)
Balance as of December 31, 2021	$	2.6			$	—			$	(1.4	)	$	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	)
Predecessor
Balance as of December 31, 2019	$	(152.0	)		$	(14.7	)		$	(3.4	)	$	(170.1	)
Remeasurement of benefit obligations		(2.7	)			—				—			(2.7	)
Reclassifications, net		15.9		(a)		6.4		(b)		—			22.3
Unrealized loss on cash flow hedges arising during the period, net		—				(11.4	)	(c)		—			(11.4	)
Foreign currency gain		—				—				2.2			2.2
Balance as of December 31, 2020	$	(138.8	)		$	(19.7	)		$	(1.2	)	$	(159.7	)

(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 Consolidated Statements of Operations. See Note 11 for further disclosures.

(b) These reclassifications are reported within "Interest expense" and “Other (income) expense, net” on the 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 Consolidated Balance Sheets in the Predecessor period. See Note 10 for further disclosures.