Cincinnati Bell 2013 Annual Report Download - page 255

Form 10-K/A Part IV Cincinnati Bell Inc.
CyrusOne Inc. and CyrusOne LP
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS—(continued)
would be achieved. For cash-settled awards which are indexed to CBI’s common stock price, compensation
expense was recognized for changes in the market price of CBI’s common stock. Subsequent to December 31,
2012, all unvested share-based awards issued by CBI to CyrusOne employees were forfeited.
Allocated stock-based compensation expense incurred by the Predecessor was $3.4 million and $0.6 million
in 2012 and 2011, respectively. The allocated cost was determined based upon specific identification of awards
to specific data center employees as well as shared employees. For shared employees, the allocated cost was
based upon the individual’s estimated percentage of time spent on data center activities. The tax benefit
associated with stock-based compensation was $0.9 million and $0.2 million in 2012 and 2011, respectively.
17. Related Party Transactions
Prior to November 20, 2012, CyrusOne Inc., CyrusOne GP, CyrusOne LP and its subsidiaries were operated
by CBI during the periods presented. The consolidated financial statements have been prepared from the records
maintained by CBI and may not necessarily be indicative of the conditions that would have existed or the results
of operations that would have occurred if the business had been operated as an unaffiliated company. The
consolidated and combined financial statements reflect the following transactions with CBI and its affiliated
entities, including Cincinnati Bell Telephone (“CBT”) and Cincinnati Bell Technology Solutions (“CBTS”):
Revenues—The Company records revenues from CBI under contractual service arrangements. These
services include leasing of data center space, power and cooling in certain of our data center facilities network
interface services and office space.
Operating Expenses—The Company records expenses from CBI incurred in relation to network support,
services calls, monitoring and management, storage and backup, IT systems support, and connectivity services.
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Form 10-K/A