Cincinnati Bell 2011 Annual Report Download - page 229

Form 10-K Part II Cincinnati Bell Inc.
17. Supplemental Guarantor Information
Cincinnati Bell Telephone Notes
CBT, a wholly-owned subsidiary of Cincinnati Bell Inc. (the “Parent Company”), had $207.5 million in
notes outstanding at December 31, 2011 that are guaranteed by the Parent Company and no other subsidiaries of
the Parent Company. The guarantee is full and unconditional. The Parent Company’s subsidiaries generate
substantially all of its income and cash flow and generally distribute or advance the funds necessary to meet the
Parent Company’s debt service obligations. As of December 31, 2011, management completed a restructuring of
certain of its legal entities. Cincinnati Bell Complete Protection Inc. was merged into Cincinnati Bell Inc.
The following information sets forth the Condensed Consolidating Balance Sheets of the Company as of
December 31, 2011 and 2010 and the Condensed Consolidating Statements of Operations and Cash Flows for the
years ended December 31, 2011, 2010, and 2009 of (1) CBI, the parent company, as the guarantor, (2) CBT, as
the issuer, and (3) the non-guarantor subsidiaries on a combined basis. The condensed consolidating financial
statements shown below have been retroactively restated to reflect the merger of Cincinnati Bell Complete
Protection Inc. into Cincinnati Bell Inc. (the Parent and guarantor) for all periods.
Condensed Consolidating Statements of Operations
Year Ended December 31, 2011
(dollars in millions)
Parent
(Guarantor)
CBT
(Issuer)
Other
Non-guarantors Eliminations Total
Revenue ................................. $ 3.4 $655.8 $860.6 $ (57.4) $1,462.4
Operating costs and expenses ................. 23.6 435.6 801.1 (57.4) 1,202.9
Operating income (loss) ..................... (20.2) 220.2 59.5 — 259.5
Interest expense, net ........................ 161.8 3.4 49.8 — 215.0
Other expense (income), net ................. (0.9) 7.5 (5.7) — 0.9
Income (loss) before equity in earnings of
subsidiaries and income taxes .............. (181.1) 209.3 15.4 — 43.6
Income tax expense (benefit) ................. (56.4) 76.0 5.4 — 25.0
Equity in earnings of subsidiaries, net of tax ..... 143.3 — — (143.3) —
Net income ............................... 18.6 133.3 10.0 (143.3) 18.6
Preferred stock dividends .................... 10.4 — — — 10.4
Net income applicable to common shareowners . . $ 8.2 $133.3 $ 10.0 $(143.3) $ 8.2
Year Ended December 31, 2010
(dollars in millions)
Parent
(Guarantor)
CBT
(Issuer)
Other
Non-guarantors Eliminations Total
Revenue ................................. $ 5.5 $668.1 $761.2 $ (57.8) $1,377.0
Operating costs and expenses ................. 34.5 435.0 666.0 (57.8) 1,077.7
Operating income (loss) ..................... (29.0) 233.1 95.2 — 299.3
Interest expense, net ........................ 137.9 9.8 37.5 — 185.2
Other expense (income), net ................. 45.2 7.6 (5.9) — 46.9
Income (loss) before equity in earnings of
subsidiaries and income taxes .............. (212.1) 215.7 63.6 — 67.2
Income tax expense (benefit) ................. (61.3) 82.2 18.0 — 38.9
Equity in earnings of subsidiaries, net of tax ..... 179.1 — — (179.1) —
Net income ............................... 28.3 133.5 45.6 (179.1) 28.3
Preferred stock dividends .................... 10.4 — — — 10.4
Net income applicable to common shareowners . . $ 17.9 $133.5 $ 45.6 $(179.1) $ 17.9
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Form 10-K