Cincinnati Bell 2008 Annual Report Download - page 197

The following information sets forth the Condensed Consolidating Balance Sheets of the Company as of
December 31, 2008 and 2007 and the Condensed Consolidating Statements of Operations and Cash Flows for the
years ended December 31, 2008, 2007, and 2006 of (1) CBI, the parent company, as the guarantor, (2) CBT, as
the issuer, and (3) the non-guarantor subsidiaries on a combined basis:
Condensed Consolidating Statements of Operations
Year Ended December 31, 2008
(dollars in millions)
Parent
(Guarantor) CBT
Other
(Non-guarantors) Eliminations Total
Revenue ................................... $ — $716.7 $736.4 $ (50.1) $1,403.0
Operating costs and expenses .................. 20.8 480.6 646.5 (50.1) 1,097.8
Operating income (loss) ...................... (20.8) 236.1 89.9 — 305.2
Interest expense ............................. 119.6 14.8 25.2 (19.9) 139.7
Other expense (income) ....................... (30.9) 7.1 (6.8) 19.9 (10.7)
Income (loss) before equity in earnings of
subsidiaries and income taxes ................ (109.5) 214.2 71.5 — 176.2
Income tax expense (benefit) ................... (32.7) 79.3 27.0 — 73.6
Equity in earnings of subsidiaries, net of tax ...... 179.4 — — (179.4) —
Net income ................................. 102.6 134.9 44.5 (179.4) 102.6
Preferred stock dividends ..................... 10.4 — — — 10.4
Net income applicable to common shareowners .... $ 92.2 $134.9 $ 44.5 $(179.4) $ 92.2
Year Ended December 31, 2007
Parent
(Guarantor) CBT
Other
(Non-guarantors) Eliminations Total
Revenue ................................... $ — $752.6 $638.8 $ (42.8) $1,348.6
Operating costs and expenses .................. 23.7 526.3 559.0 (42.8) 1,066.2
Operating income (loss) ...................... (23.7) 226.3 79.8 — 282.4
Interest expense ............................. 137.8 14.9 30.0 (27.8) 154.9
Other expense (income) ....................... (31.7) 5.8 (4.3) 27.8 (2.4)
Income (loss) before equity in earnings of
subsidiaries and income taxes ................ (129.8) 205.6 54.1 — 129.9
Income tax expense (benefit) ................... (37.2) 73.2 20.7 — 56.7
Equity in earnings of subsidiaries, net of tax ...... 165.8 — — (165.8) —
Net income ................................. 73.2 132.4 33.4 (165.8) 73.2
Preferred stock dividends ..................... 10.4 — — — 10.4
Net income applicable to common shareowners .... $ 62.8 $132.4 $ 33.4 $(165.8) $ 62.8
Year Ended December 31, 2006
Parent
(Guarantor) CBT
Other
(Non-guarantors) Eliminations Total
Revenue ................................... $ — $747.3 $557.6 $ (34.8) $1,270.1
Operating costs and expenses .................. 22.0 481.3 489.1 (34.8) 957.6
Operating income (loss) ...................... (22.0) 266.0 68.5 — 312.5
Interest expense ............................. 146.1 15.1 32.6 (31.7) 162.1
Other expense (income) ....................... (32.5) 0.3 (3.7) 31.7 (4.2)
Income (loss) before equity in earnings of
subsidiaries and income taxes ................ (135.6) 250.6 39.6 — 154.6
Income tax expense (benefit) ................... (35.8) 89.8 14.3 — 68.3
Equity in earnings of subsidiaries, net of tax ...... 186.1 — — (186.1) —
Net income ................................. 86.3 160.8 25.3 (186.1) 86.3
Preferred stock dividends ..................... 10.4 — — — 10.4
Net income applicable to common shareowners .... $ 75.9 $160.8 $ 25.3 $(186.1) $ 75.9
97
Form 10-K