Cincinnati Bell 2010 Annual Report Download - page 177

termination benefits and curtailment charges are included in “Pension and postretirement obligations” in the
Consolidated Balance Sheets at December 31, 2010 and 2009.
The following table summarizes the activity in the employee separation obligation liability:
December 31,
(dollars in millions) 2010 2009
Balance, beginning of period .................................... $14.4 $ 8.0
Charge ..................................................... 8.7 10.5
Utilization .................................................. (11.4) (4.1)
Balance, end of period ......................................... $11.7 $14.4
Lease Abandonment
The lease abandonment charges primarily consist of $3.3 million incurred by the Wireline segment in the
second quarter of 2010 representing future lease costs, net of sublease income, on office space abandoned by the
Company primarily resulting from the decrease in headcount over the past several years. In addition, existing
liabilities for the abandoned space were transferred to the restructuring reserve. The lease obligations are
expected to continue through 2015.
In 2001, the Company adopted a restructuring plan which included initiatives to eliminate non-strategic
operations and merge internet operations in the Company’s other operations. The Company completed the plan
prior to 2003, except for certain lease obligations, which are expected to continue through 2015 and for which a
$3.6 million liability remains as of December 31, 2010.
At December 31, 2010, $2.0 million of the lease abandonment reserve was included in “Other current
liabilities” and $5.2 million was included in “Other noncurrent liabilities” in the Consolidated Balance Sheet. At
December 31, 2009, $0.7 million of the lease abandonment reserve was included in “Other current liabilities” and
$3.7 million was included in “Other noncurrent liabilities” in the Consolidated Balance Sheet.
December 31,
(dollars in millions) 2010 2009
Balance, beginning of period ..................................... $4.4 $5.1
Reclassification ................................................ 0.9 —
Charge ....................................................... 3.5 —
Utilization, net ................................................ (1.6) (0.7)
Balance, end of period .......................................... $7.2 $4.4
Other
Other 2010 restructuring charges primarily consist of $1.4 million for payments to be made in order to
conform the Company’s commission incentive program for the Data Center Colocation segment.
10. Employee Benefit Plans and Postretirement Benefits
Savings Plans
The Company sponsors several defined contribution plans covering substantially all employees. The
Company’s contributions to the plans are based on matching a portion of the employee contributions. Company
and employee contributions are invested in various investment funds at the direction of the employee. Company
contributions to the defined contribution plans were $4.8 million, $3.6 million, and $6.0 million for 2010, 2009,
and 2008, respectively. In May 2009, Company contributions were suspended for management employees
through the end of 2009. These contributions were restored in 2010.
87
Form 10-K