Cincinnati Bell 2013 Annual Report Download - page 164

3. Investment in CyrusOne
On January 24, 2013, we completed the initial public offering of CyrusOne, our former Data Center
Colocation segment. As of this date, we no longer control CyrusOne’s operations and we removed the following
assets and liabilities of CyrusOne from our consolidated financial statements:
(dollars in millions)
Cash $ 12.2
Receivables .................................................................... 41.5
Other current assets .............................................................. 13.4
Property, plant and equipment ..................................................... 736.2
Goodwill and intangibles ......................................................... 377.7
Other noncurrent assets ........................................................... 44.0
Total assets ........................................................................ 1,225.0
Current portion of long-term debt 6.3
Accounts payable ............................................................... 29.4
Unearned revenue and customer deposits ............................................. 24.1
Other current liabilities ........................................................... 12.9
Long-term debt ................................................................. 550.3
Other noncurrent liabilities ........................................................ 92.3
Total liabilities ..................................................................... 715.3
Net assets ......................................................................... $ 509.7
Our 69% effective ownership is held in the form of 1.9 million shares of unregistered common stock of
CyrusOne Inc. and 42.6 million of economically equivalent partnership units in its underlying operating entity,
CyrusOne LP. For the year ended December 31, 2013, our equity method share of CyrusOne’s net loss was $10.7
million.
Commencing January 17, 2014, we may exchange the partnership units of CyrusOne LP into cash, or shares
of common stock of CyrusOne, as determined by CyrusOne, on a one-for-one basis based upon the fair value of a
share of CyrusOne common stock, subject to certain limitations which restrict the volume of shares we are
permitted to sell. The restrictions lapse upon the effectiveness of CyrusOne Inc.’s registration statement, to be
filed by March 24, 2014.
As of December 31, 2013, the fair value of this investment was $993.2 million based on the quoted market
price of CyrusOne’s common stock, which is considered a Level 1 measurement in the fair value hierarchy.
Summarized financial information for CyrusOne is as follows:
(dollars in millions)
January 24, 2013 to
December 31, 2013
Revenue .................................................................... $248.4
Operating income ............................................................. 28.9
Net loss ..................................................................... (15.6)
(dollars in millions)
As of
December 31, 2013
Net investment in real estate ..................................................... $ 883.8
Total assets .................................................................. 1,506.8
Total liabilities ................................................................ 729.2
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Form 10-K Part II Cincinnati Bell Inc.