Cincinnati Bell 2014 Annual Report Download - page 106

Table of Contents
Form 10-K Part II
Cincinnati Bell Inc.
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The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years:
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







2015 $ 41.3
$ 12.6
$ (0.6)
2016 41.3
11.7
(0.6)
2017 41.1
10.7
(0.5)
2018 41.0
10.0
(0.5)
2019 39.5
8.2
(0.5)
Years 2020 - 2024 182.7
33.7
(2.0)
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
The par value of the Company’s common shares is $0.01 per share. At December 31, 2014 and 2013, common shares outstanding were 209,296,068 and
208,165,275, respectively.
In 2010, the Board of Directors approved a plan for repurchase of up to $150.0 million of the Company's common shares. In 2014 and 2013, no shares were
repurchased or retired under this plan. In 2012, no shares were repurchased under this plan and the Company retired 0.1 million shares of common stock. As
of December 31, 2014, the Company had the authority to repurchase $129.2 million of its common stock.
At December 31, 2014, treasury shares of common stock held under certain management deferred compensation arrangements were 0.3 million, with a total
cost of $1.1 million. At December 31, 2013, treasury shares of common stock held under certain management deferred compensation arrangements were 0.5
million, with a total cost of $2.0 million.
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The Company is authorized to issue 1,357,299 shares of voting preferred stock without par value and 1,000,000 shares of nonvoting preferred stock without
par value. The Company issued 155,250 voting shares of 6 3/4% cumulative convertible preferred stock at stated value. These shares were subsequently
deposited into a trust in which the underlying 155,250 shares are equivalent to 3,105,000 depositary shares. Shares of this preferred stock can be converted at
any time at the option of the holder into common stock of the Company at a conversion rate of 1.44 shares of the Company common stock per depositary
share of 6 3/4% convertible preferred stock. Annual dividends of $67.50 per share (or $3.3752 per depositary share) on the outstanding 6 3/4% convertible
preferred stock are payable quarterly in arrears in cash, or in common stock in certain circumstances if cash payment is not legally permitted. The liquidation
preference on the 6 3/4% preferred stock is $1,000 per share (or $50 per depositary share). The Company paid $10.4 million in preferred stock dividends in
2014, 2013, and 2012.
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In March 2003, the Company entered into a series of recapitalization transactions which included the issuance of 17.5 million warrants that expired on March
26, 2013. Each warrant allowed the holder to purchase one share of Cincinnati Bell common stock at an exercise price of $3.00 each. During the first quarter
of 2013, warrant holders elected to exercise a total of 14.3 million warrants. As a result, the Company issued a total of 4.4 million shares of common stock and
received $5.1 million of cash proceeds for the 1.7 million of such warrants which were cash settled. During 2012, warrant holders elected to exercise a total of
3.2 million warrants, primarily on a cashless basis, and received a total of 1.5 million shares of common stock. Cash proceeds received upon exercise were
$0.1 million. There were no warrants outstanding as of December 31, 2014 and 2013.
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Shareowners’ deficit includes an accumulated other comprehensive loss that is comprised of pension and postretirement unrecognized prior service cost and
unrecognized actuarial losses, and foreign currency translation losses.
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