CINCINNATI BELL INC.

201 EAST FOURTH STREET

CINCINNATI, OHIO 45202


     January 31, 2005



	 	 	 
	Goldman Sachs Direct Investment Fund 2000, L.P.
	 	Dover Capital Management 2 LLC
	Goldman, Sachs & Co.
	 	c/o Falcon Investment Group
	GS Capital Partners 2000, L.P.
	 	4350 Von Karman Ave.
	GS Capital Partners 2000 Offshore, L.P.
	 	Suite 400
	GS Capital Partners 2000 GmbH & Co. Beteiligungs KG
	 	Newport Beach, CA 92660-2007
	GS Capital Partners 2000 Employee Fund, L.P.
	 	 
	c/o Goldman, Sachs & Co.
	 	 
	85 Broad Street
	 	 
	New York, New York 10004
	 	 
	
	 	 
	TCW/Crescent Mezzanine Partners III, L.P.
	 	C-Squared CDO Ltd.
	TCW/Crescent Mezzanine Trust III
	 	c/o TCW/Crescent Mezzanine LLC
	TCW/Crescent Mezzanine Partners III Netherlands, L.P.
	 	200 Park Avenue, 22nd Floor
	c/o TCW/Crescent Mezzanine LLC
	 	New York, New York 10166
	200 Crescent Court, Suite 1600
	 	 
	Dallas, Texas 75201
	 	 
	
	 	 
	Western and Southern Life Insurance Company
	 	GS Mezzanine Partners II, L.P.
	c/o Fort Washington Investment Advisers
	 	GS Mezzanine Partners II Offshore, L.P.
	420 East 4th Street
	 	85 Broad Street
	Cincinnati, Ohio 45202
	 	New York, New York 10004
	
	 	 
	Oak Hill Securities Fund, L.P.
	 	Lerner Enterprises, L.P.
	Oak Hill Securities Fund II, L.P.
	 	P&PK Family Limited Partnership
	Oak Hill Credit Partners I, Limited
	 	Cardinal Investment Partners I, L.P.
	Oak Hill Credit Partners II, Limited
	 	c/o Oak Hill Advisors, L.P.
	c/o Oak Hill Advisors, L.P.
	 	201 Main Street, Suite 2600
	201 Main Street, Suite 2600
	 	Fort Worth, Texas 76102
	Forth Worth, Texas 76102
	 	 





Re: Amendment to the Purchase Agreement


Ladies and Gentlemen:


     Reference is made to the Purchase Agreement (the “Purchase Agreement”), dated as of December 9, 2002, as amended to the date hereof (the “Purchase Agreement”), among Cincinnati Bell Inc. (f/k/a Broadwing Inc.), an Ohio corporation (the “Company”), and the persons specified as Purchasers in Schedule 1 to the Purchase Agreement, regarding the purchase of the Company’s Senior Subordinated Discount Notes due 2009 and warrants to purchase common stock of the Company. Capitalized terms used herein but not defined herein have the meanings ascribed thereto in the Purchase Agreement.


     The parties hereto hereby agree as follows:











     1. The Purchase Agreement shall be amended as follows:


     1.1. The following new Section 1A is hereby added immediately after Section 1 of the Purchase Agreement:


     “1 A. The Company represents and warrants to the Purchasers that Schedule 1A sets forth as of January 31, 2005 (except to the extent that such Schedule 1A refers to an earlier date, in which case as of such date) all material liabilities of the members of the BCI Group as of the date hereof that would be required to be reflected in, or referred to in the notes to, a balance sheet of the BCI Group prepared in accordance with United States generally accepted accounting principles.”


     1.2.    Clause (ii) of Section 9 is hereby deleted in its entirety and replaced with the following:


     “(ii) Annual Statements. As soon as available, but in any event within ninety-five (95) days after the end of each fiscal year of the Company, or, in the case of the information required by clause (x) below for the fiscal year ended December 31, 2003, only, within one hundred twenty-five (125) days after the end of such fiscal year, a copy of:


     (x) (a) an audited consolidated balance sheet of the Company and its subsidiaries and (b) an unaudited consolidated balance sheet of the Company and its Restrictive Subsidiaries, in each case as at the end of such year, together with consolidating balance sheets for each of the Company’s Primary Business Segments, and


     (y) (a) audited consolidated statements of income or operations, stockholders’ equity and cash flows of the Company and its subsidiaries and (b) unaudited consolidated statements of income or operations, stockholders’ equity and cash flows of the Company and its Restricted Subsidiaries, in each case for such year, together with consolidating information for each of the Company’s Primary Business Segments,


in each case setting forth in comparative form the figures for the prior fiscal year, all in reasonable detail, prepared in accordance with GAAP, fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from normal year-end adjustments, and accompanied by:


     (A) with respect to the financial statements referred to in clauses (x)(a) and (y)(a) above, an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such consolidated financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP and that the examination of such accountants in connection with such financial statements (other than


2











consolidating statements) has been made in accordance with generally accepted auditing standards in the United States, and that such audit provides a reasonable basis for such opinion in the circumstances,


     (B) with respect to the financial statements referred to in clauses (x)(a) and (y)(a) above, a written statement by the independent certified public accountants giving the report thereon stating whether, in connection with their audit examination, any condition or event that constitutes a Default or Event of Default with respect to the covenants contained in Section 5.02 and Section 5.04 of the Indenture has come to their attention and, if such a condition or event has come to their attention, specifying the nature and period of existence thereof; provided that such accountants shall not be liable by reason of any failure to obtain knowledge of any such Default or Event of Default that would not be disclosed in the course of their audit examination, and


     (C) a certificate of the chief financial officer or chief executive officer on behalf of the Company stating that such financial statements have been prepared in accordance with GAAP applicable to periodic financial statements generally and fairly present, in all material respects, the financial position of the companies being reported on and their results of operations and income, retained earnings and stockholders’ equity, and cash flows;


provided, however, that if the Company is then subject to the reporting requirements under Section 13 or 15(d) of the Exchange Act, the delivery by the Company to such Purchaser or such Subsequent Purchaser of an Annual Report on Form 10-K or any successor form within the time periods above described shall satisfy the requirements of this Section 9(ii) with respect to financial statements for the Company and its subsidiaries;  provided that the documents referred to in clauses (A) and (C) of this Section 9(ii) shall nonetheless be provided.”


     1.3. Clause (iii) of Section 9 is hereby amended by deleting clause (3) thereof in its entirety and renumbering clause (4) thereof as clause (3).


     1.4. The Schedules to the Purchase Agreement are hereby amended by adding thereto Schedule 1A that is attached to this letter agreement.


     2. Except as specifically set forth herein, the provisions of the Purchase Agreement and the Exhibits and Schedules attached thereto remain in full force and effect. This letter agreement shall not constitute an amendment or waiver of any provision of the Purchase Agreement and shall not be construed as a waiver or consent to any further or future action on the part of the Company, except to the extent expressly set forth herein.


     3. The amendments to the Purchase Agreement set forth in this letter agreement will become effective only upon the consummation of a refinancing of, or an amendment or waiver to, the Company’s Third Amendment and Restatement of the


3











Credit Agreement dated as of November 17, 2003, as amended to the date hereof, among the Company, BCSI Inc., the lenders party thereto, Bank of America, N.A., as syndication agent, Citicorp USA, Inc., as administrative agent, Credit Suisse First Boston and The Bank of New York, as co-documentation agents, and the other persons party thereto, that permits such amendments.


4











     This letter agreement shall be governed by the internal laws of the State of New York, without regard to the conflict-of-law principles thereof which would require the application of laws of any other state.



	 	 	 
	
	Very truly yours,
	 	 	 
	
	CINCINNATI BELL INC. (f/k/a Broadwing Inc.)
	 	 	 
	
	By:  	/s/ Mark W. Peterson
	 	 	

	
	 	Name: Mark W. Peterson
	
	 	Title: Treasure






	 	 
	Agreed to and accepted by:
	 	 
	GS MEZZANINE PARTNERS II, L.P.
	 	 
	By:	GS Mezzanine Advisors II, L.L.C.,
its general partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Vice President
	 	 
	GS MEZZANINE PARTNERS II OFFSHORE, L.P.
	 	 
	By:	GS Mezzanine Advisors II, L.L.C.
its general partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Vice President
	 	 
	Agreed to and accepted by:
	 	 
	GOLDMAN SACHS DIRECT INVESTMENT FUND 2000, L.P.
	 	 
	By:	GS Employee Funds 2000 GP, L.L.C,
its general partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Vice President
	 	 
	Agreed to and accepted by:





5












	 	 
	GOLDMAN, SACHS & Co.
	 	 
	By:	/s/ Kenneth Glassman
	 	

	 	Name: Kenneth Glassman
	 	Title: Managing Director
	 	 
	Agreed to and accepted by:
	 	 
	GS CAPITAL PARTNERS 2000, L.P.
	 	 
	By:	GS Advisors 2000, L.L.C.
its General Partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Vice President
	 	 
	Agreed to and accepted by:
	 	 
	GS CAPITAL PARTNERS 2000 OFFSHORE, L.P.
	 	 
	By:	GS Advisors 2000, L.L.C.
its General Partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Vice President
	 	 
	Agreed to and accepted by:
	 	 
	GS CAPITAL PARTNERS 2000, GmbH & CO. BETEILIGUNGS KG
	 	 
	By:	Goldman Sachs Management GP GmbH
its General Partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Managing Director
	 	 
	Agreed to and accepted by:
	 	 
	GS CAPITAL PARTNERS 2000, EMPLOYEE FUND, L.P.





6












	 	 
	By:	GS Emplopyee Funds 2000 GP, L.L.C.
its General Partner
	 	 
	By:	/s/ John E. Bowman
	 	

	 	Name: John E. Bowman
	 	Title: Vice President
	 	 
	Agreed to and accepted by:
	 	 
	TCW/CRESCENT MEZZANINE PARTNERS III, L.P.
	TCW/CRESCENT MEZZANINE TRUST III
	TCW/CRESCENT MEZZANINE PARTNERS III NETHERLANDS, L.P.
	 	 
	By:	TCW/Crescent Mezzanine Management III, L.L.C,
its Investment Manager
	 	 
	By:	TCW Asset Management Company,
its Sub-Advisor
	 	 
	By:	/s/ Timothy P. Costello
	 	

	 	Name: TIMOTHY P. COSTELLO
	 	Title: MANAGING DIRECTOR
	 	 
	Agreed to and accepted by:
	 	 
	C-SQUARED CDO LTD.
	 	 
	By:	TCW Advisors, Inc.,
as its Portfolio Manager
	 	 
	By:	/s/ Timothy P. Costello
	 	

	 	Name: TIMOTHY P. COSTELLO
	 	Title: MANAGING DIRECTOR
	 	 
	By:	/s/ James M. Hassett
	 	

	 	Name: James M. Hassett
	 	Title: Managing Director





7












	 	 
	Agreed to and accepted by:
	 	 
	WESTERN AND SOUTHERN LIFE INSURANCE COMPANY
	 	 
	By:	/s/ Bradler  J. Hunkler
	 	

	 	Name: Bradler  J. Hunkler
	 	Title: Vice President
	 	 
	By:	/s/ James J. Vance
	 	

	 	Name:   James J. Vance
	 	Title: Vice  President
	 	 
	Agreed to and accepted by:
	 	 
	DOVER CAPITAL MANAGEMENT 2 LLC
	 	 
	By:	/s/ Richard Meage
	 	

	 	Name: Richard Meage
	 	Title: Manager
	 	 
	Agreed and accepted by:
	 	 
	OAKHILL SECURITIES FUND, L.P.
	 	 
	By:	Oak Hill Securities GenPar, L.P.
its General Partner
	 	 
	By:	Oak Hill Securities MGP, Inc.
its General Partner
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory
	 	 
	Agreed to and accepted by:
	 	 
	OAK HILL SECURITIES FUND II, L.P.
	 	 
	By:	Oak Hill Securities GenPar II, L.P.
its General Partner
	 	 
	By:	Oak Hill Securities MGP II, Inc.
its General Partner
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory





8












	 	 
	Agreed to and accepted by:
	 	 
	OAK HILL ASSET MANAGEMENT, INC.
As advisor and attomey-in-fact to Lerner Enterprises, L.P.
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory
	 	 
	Agreed to and accepted by:
	 	 
	OAK HILL ASSET MANAGEMENT, INC.
As advisor and attorney-in -fact to P&PK Family Ltd. Partnership
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory
	 	 
	Agreed to and accepted by:
	 	 
	OAK HILL ASSET MANAGEMENT, INC.
 As advisor and attorney-in-fact to CARDINAL INVESTMENT PARTNERS I, L.P.
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory
	 	 
	Agreed to and accepted by:
	 	 
	OAK HILL CREDIT PARTNERS I, LIMITED
	 	 
	By:	Oak Hill CLO Management II, LLC
As Investment Manger
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory





9












	 	 
	Agreed to and accepted by:
	 	 
	OAK HILL CREDIT PARTNERS II, LIMITED
	 	 
	By:	Oak Hill CLO Management II, LLC
As Investment Manager
	 	 
	By: 	/s/ [ILLEGIBLE]
	 	

	 	Name: [ILLEGIBLE]
	 	Title: Authorized signatory





10











LIABILITIES OF THE BCI GROUP












CINCINNATI BELL INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER, 2004
(Dollars in millions)


	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	3RD QTR
	 	4TH QTR
	 	1ST QTR
	 	2ND QTR
	 	3RD QTR
	 	VS. PRIOR QUARTER
	 	VS. PRIOR YEAR-END

	
	 	2003	 	2003	 	2004	 	2004	 	2004	 	CHANGE	 	CHANGE	 	%
	ASSETS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Cash
	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Unrestricted Cash & Cash Equivalents
	 	 	32.8	 	 	 	26.0	 	 	 	22.8	 	 	 	22.3	 	 	 	23.0	 	 	 	0.6	 	 	 	(3.1	)	 	 	 	 
	Intercompany Notes Receivable
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Reserve for BRCOM Uncollectible IC Notes
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Intercompany Interest Receivable - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Intercompany Accounts Receivable, Gross
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Accounts Receivable, External
	 	 	159.4	 	 	 	160.6	 	 	 	137.1	 	 	 	148.0	 	 	 	151.8	 	 	 	3.9	 	 	 	(8.8	)	 	 	 	 
	Allowance
	 	 	(20.4	)	 	 	(20.2	)	 	 	(16.5	)	 	 	(15.2	)	 	 	(15.2	)	 	 	(0.0	)	 	 	4.9	 	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	Accounts Receivable, Net
	 	 	139.0	 	 	 	140.5	 	 	 	120.6	 	 	 	132.7	 	 	 	136.6	 	 	 	3.9	 	 	 	(3.9	)	 	 	 	 
	Materials and Supplies
	 	 	40.5	 	 	 	33.6	 	 	 	35.7	 	 	 	45.4	 	 	 	36.6	 	 	 	(8.8	)	 	 	3.0	 	 	 	 	 
	Prepaid Expense
	 	 	17.1	 	 	 	15.9	 	 	 	24.5	 	 	 	23.2	 	 	 	18.3	 	 	 	(4.9	)	 	 	2.4	 	 	 	 	 
	Other Current Assets
	 	 	2.2	 	 	 	43.3	 	 	 	40.6	 	 	 	53.9	 	 	 	40.1	 	 	 	(13.8	)	 	 	(3.1	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	CURRENT ASSETS
	 	 	231.7	 	 	 	259.3	 	 	 	244.3	 	 	 	277.7	 	 	 	254.6	 	 	 	(23.0	)	 	 	(4.7	)	 	 	 	 
	Property, Plant & Equipment - Gross
	 	 	2,485.7	 	 	 	2,507.2	 	 	 	2,505.8	 	 	 	2,536.3	 	 	 	2,542.8	 	 	 	6.6	 	 	 	35.6	 	 	 	 	 
	Property, Plant & Equipment - CIP
	 	 	42.7	 	 	 	17.8	 	 	 	18.2	 	 	 	17.4	 	 	 	20.4	 	 	 	3.1	 	 	 	2.7	 	 	 	 	 
	Property, Plant & Equipment - Impairment
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Accumulated Depreciation
	 	 	(1,605.2	)	 	 	(1,626.2	)	 	 	(1,648.31	)	 	 	(1,663.7	)	 	 	(1,702.9	)	 	 	(19.2	)	 	 	(76.7	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	Property, Plant & Equipment - Net
	 	 	923.2	 	 	 	898.8	 	 	 	875.7	 	 	 	869.9	 	 	 	860.4	 	 	 	(9.6	)	 	 	(38.4	)	 	 	 	 
	Intangible Assets, Net
	 	 	88.3	 	 	 	86.1	 	 	 	85.3	 	 	 	84.7	 	 	 	78.6	 	 	 	(6.1	)	 	 	(9.5	)	 	 	 	 
	Long Term Notes Receivable
	 	 	0.0	 	 	 	0.0	 	 	 	0.3	 	 	 	0.4	 	 	 	0.4	 	 	 	(0.0	)	 	 	0.4	 	 	 	 	 
	Investments (incl. in BRCOM)
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Other Investments
	 	 	4.2	 	 	 	4.2	 	 	 	3.9	 	 	 	3.9	 	 	 	3.8	 	 	 	(0.1	)	 	 	(0.4	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	Investments
	 	 	4.2	 	 	 	4.2	 	 	 	3.9	 	 	 	3.9	 	 	 	3.8	 	 	 	(0.1	)	 	 	(0.4	)	 	 	 	 
	Deferred Tax Asset
	 	 	0.0	 	 	 	697.0	 	 	 	689.2	 	 	 	662.4	 	 	 	660.7	 	 	 	(1.7	)	 	 	(36.2	)	 	 	 	 
	Long Term Notes Intercompany - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Deferred Charges & Noncurrent Assets
	 	 	110.9	 	 	 	126.1	 	 	 	126.3	 	 	 	122.9	 	 	 	126.4	 	 	 	6.5	 	 	 	2.3	 	 	 	 	 
	Net Assets of Discontinued Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	NONCURRENT ASSETS
	 	 	1,126.6	 	 	 	1,614.2	 	 	 	1,780.5	 	 	 	1,744.3	 	 	 	1,732.3	 	 	 	(12.0	)	 	 	(81.8	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	TOTAL ASSETS
	 	 	1,358.3	 	 	 	2,073.5	 	 	 	2,024.9	 	 	 	2,022.0	 	 	 	1,987.0	 	 	 	(35.0	)	 	 	(86.6	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable - Intercompany
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Accounts Payable - Trade
	 	 	59.0	 	 	 	64.5	 	 	 	52.2	 	 	 	70.8	 	 	 	56.0	 	 	 	(14.8	)	 	 	(8.5	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	Accounts Payable - Net
	 	 	59.0	 	 	 	64.5	 	 	 	52.2	 	 	 	70.8	 	 	 	58.0	 	 	 	(14.8	)	 	 	(8.5	)	 	 	 	 
	Accounts Payable - Intercompany
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accrued Liabilities
	 	 	103.6	 	 	 	94.6	 	 	 	66.0	 	 	 	81.1	 	 	 	81.2	 	 	 	0.1	 	 	 	(13.4	)	 	 	 	 
	Intercompany Notes Payable
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Accrued Taxes
	 	 	54.4	 	 	 	43.9	 	 	 	34.0	 	 	 	30.7	 	 	 	41.3	 	 	 	10.5	 	 	 	(2.7	)	 	 	 	 
	Advanced Billings & Customer Deposits
	 	 	39.2	 	 	 	41.5	 	 	 	40.2	 	 	 	41.3	 	 	 	41.1	 	 	 	(0.3	)	 	 	(0.4	)	 	 	 	 
	Accrued Compensated Absences
	 	 	2.8	 	 	 	3.8	 	 	 	4.0	 	 	 	3.8	 	 	 	3.2	 	 	 	(0.6	)	 	 	(0.6	)	 	 	 	 
	Restructuring
	 	 	24.3	 	 	 	4.2	 	 	 	1.6	 	 	 	1.2	 	 	 	1.0	 	 	 	(0.2	)	 	 	(3.2	)	 	 	 	 
	Other Currant Liabilities
	 	 	30.7	 	 	 	29.6	 	 	 	47.0	 	 	 	50.4	 	 	 	40.0	 	 	 	(10.4	)	 	 	10.3	 	 	 	 	 
	Short-Term Bank Note
	 	 	106.0	 	 	 	5.3	 	 	 	48.6	 	 	 	10.3	 	 	 	4.7	 	 	 	(5.6	)	 	 	(0.6	)	 	 	 	 
	Other Short-Term Debt
	 	 	29.7	 	 	 	8.1	 	 	 	7.1	 	 	 	6.6	 	 	 	5.9	 	 	 	(0.6	)	 	 	(2.1	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	CURRENT LIABILITIES
	 	 	449.8	 	 	 	295.5	 	 	 	320.7	 	 	 	298.1	 	 	 	274.3	 	 	 	(21.6	)	 	 	(21.1	)	 	 	 	 
	Bank Note
	 	 	533.9	 	 	 	603.2	 	 	 	507.8	 	 	 	510.7	 	 	 	484.3	 	 	 	(26.4	)	 	 	(118.9	)	 	 	 	 
	Convertible Bonds
	 	 	534.5	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Other Long Term Debt
	 	 	1,139.6	 	 	 	1,671.3	 	 	 	1,676.7	 	 	 	1,682.1	 	 	 	1,691.3	 	 	 	9.2	 	 	 	19.9	 	 	 	 	 
	NonCurrent Intercompany Debt
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Minority Interest
	 	 	40.0	 	 	 	39.7	 	 	 	39.6	 	 	 	40.9	 	 	 	41.1	 	 	 	0.2	 	 	 	1.5	 	 	 	 	 
	LT Restructuring
	 	 	0.0	 	 	 	11.5	 	 	 	10.8	 	 	 	10.5	 	 	 	10.0	 	 	 	(0.5	)	 	 	(1.5	)	 	 	 	 
	Unearned Revenue
	 	 	12.3	 	 	 	11.0	 	 	 	11.1	 	 	 	10.7	 	 	 	10.4	 	 	 	(0.4	)	 	 	(1.6	)	 	 	 	 
	Total Noncurrent Liabilities
	 	 	181.0	 	 	 	119.8	 	 	 	126.6	 	 	 	127.1	 	 	 	116.7	 	 	 	(10.4	)	 	 	(3.1	)	 	 	 	 
	Net Liabilities from Discontinued Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	NONCURRENT LIABILITIES
	 	 	2,441.3	 	 	 	2,457.5	 	 	 	2,372.0		 	 	2,382.0	 	 	 	2,353.7	 	 	 	(28.3	)	 	 	(103.7	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	TOTAL LIABILITIES
	 	 	2,891.0	 	 	 	2,752.9	 	 	 	2,003.5		 	 	2,678.2	 	 	 	2,628.0	 	 	 	(50.1	)	 	 	(124.9	)	 	 	 	 
	MEZZANINE FINANCING:

	Convertible Preferred Stock
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Exchangeable Preferred stock
	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	TOTAL MEZZANINE FINANCING
	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Convertible Preferred Stock
	 	 	129.4	 	 	 	129.4	 	 	 	129.4	 	 	 	129.4	 	 	 	129.4	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Common Stock
	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Paid-in Capital
	 	 	2,937.5	 	 	 	2,040.6	 	 	 	2,940.4	 	 	 	2,938.1	 	 	 	2,935.7	 	 	 	(2.4	)	 	 	(4.9	)	 	 	 	 
	Retained Earnings
	 	 	(4,447.2	)	 	 	(3,604.2	)	 	 	(3,509.3	)	 	 	(3,578.4	)	 	 	(3,560.9	)	 	 	17.5	 	 	 	43.3	 	 	 	 	 
	Accumulated Other Comprehensive Income
	 	 	(9.5	)	 	 	(2.3	)	 	 	(2.3	)	 	 	(2.5	)	 	 	(2.5	)	 	 	0.0	 	 	 	(0.2	)	 	 	 	 
	Treasury Stock
	 	 	(145.5	)	 	 	(145.5	)	 	 	(145.5	)	 	 	(145.5	)	 	 	(145.4	)	 	 	0.1	 	 	 	0.1	 	 	 	 	 
	Investment Valuation Allowance
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Foreign Currency Adjustment
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	Other Shareowners’ Equity
	 	 	0.0	 	 	 	0.0	 	 	 	00	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	TOTAL EQUITY
	 	 	(1,532.8	)	 	 	(879.4	)	 	 	(688.7	)	 	 	(656.2	)	 	 	(641.1	)	 	 	15.1	 	 	 	38.3	 	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY
	 	 	1,358.3	 	 	 	2,073.5	 	 	 	2,024.9	 	 	 	2,022.0	 	 	 	1,987.0	 	 	 	(35.0	)	 	 	(86.6	)	 	 	 	 
	 	 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
		 	 	
	 	 	 	 	 
	Total Credit Facility Balance
	 	 	639.9	 	 	 	608.4	 	 	 	556.4	 	 	 	521.0	 	 	 	469.0	 	 	 	(32.0	)	 	 	(119.4	)	 	 	 	 
	Net Debt (See Note)
	 	 	2,310.9	 	 	 	2,261.8	 	 	 	2,217.4	 	 	 	2,187.6	 	 	 	2,159.5	 	 	 	(28.1	)	 	 	(102.3	)	 	 	 	 







	 	 
	Note: 
	

“Net Debt” includes Short-Term Bank Note, Other Short-Term
Notes, Bank Notes, Convertible Bonds, Other Long-Term Debt and the
portion of minority interest associated with the BROOM 12 1/2%
Preferred stock; offset by Cash and Cash Equivalents and Swap
Liability


 





	 	 	 
	
	 	2/2/2005 6:05 PM
	Unrestricted Group 093004 Balance Sheet.xls (Consol)
	Cincinnati Bell Inc. Confidential	Report #Consol















Amounts for the current month are PRELIMINARY


CINCINNATI  BELL  INC. - RESTRICTED  ENTITIES
INCLUDES CBT, CBW,  CBAD, PUBLIC AND CORPORATE; EXCLUDES CONSOLIDATED BRCOM
CONSOLIDATED BALANCE SHEET
SEPTEMBER, 2004
(Dollars in millions)



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	3RD QTR	 	4TH QTR	 	1ST QTR	 	2ND QTR	 	3RD QTR	 	VS. PLAN	 	VS. PRIOR QUARTER	 	VS. PRIOR YEAR-END
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	
	 	2003	 	2003	 	2004	 	2004	 	2004	 	CHANGE	 	%	 	CHANGE	 	%	 	CHANGE	 	%
	ASSETS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Cash
	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	n/m	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Unrestricted Cash A Cash Equivalents
	 	 	32.7	 	 	 	26.0	 	 	 	22.8	 	 	 	22.3	 	 	 	23.0	 	 	 	(3.1	)	 	 	(12	%)	 	 	0.6	 	 	 	3	%	 	 	(3.1	)	 	 	(12	%)
	Intercompany Notes Receivable - BRCOM
	 	 	31.5	 	 	 	157.3	 	 	 	166.5	 	 	 	187.0	 	 	 	203.2	 	 	 	60.5	 	 	 	42	%	 	 	16.2	 	 	 	9	%	 	 	46.0	 	 	 	29	%
	Reserve for  BRCOM Uncollectable IC  Notes
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Intercompany Interest Receivable - BRCOM
	 	 	0.1	 	 	 	1.0	 	 	 	0.5	 	 	 	0.6	 	 	 	0.7	 	 	 	0.7	 	 	 	n/m	 	 	 	0.2	 	 	 	27	%	 	 	(0.3	)	 	 	(26	%)
	Intercompany Accounts Receivable - BRCOM
	 	 	268.0	 	 	 	16.5	 	 	 	18.0	 	 	 	6.5	 	 	 	(1.4	)	 	 	(1.4	)	 	 	n/m	 	 	 	(7.9	)	 	 	(122	%)	 	 	(17.9	)	 	 	(109	%)
	Accounts  Receivable, External
	 	 	137.7	 	 	 	139.4	 	 	 	116.9	 	 	 	129.0	 	 	 	130.1	 	 	 	(8.0	)	 	 	(6	%)	 	 	1.1	 	 	 	1	%	 	 	(9.4	)	 	 	(7	%)
	Allowance
	 	 	(18.0	)	 	 	(17.7	)	 	 	(12.7	)	 	 	(13.1	)	 	 	(12.8	)	 	 	4.4	 	 	 	25	%	 	 	0.3	 	 	 	2	%	 	 	4.8	 	 	 	27	%
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Accounts Receivable, Net
	 	 	119.7	 	 	 	121.8	 	 	 	104.2	 	 	 	115.9	 	 	 	117.2	 	 	 	(3.6	)	 	 	(3	%)	 	 	1.3	 	 	 	1	%	 	 	(4.5	)	 	 	(4	%)
	Materials and Supplies
	 	 	36.0	 	 	 	32.2	 	 	 	30.4	 	 	 	31.5	 	 	 	30.2	 	 	 	(0.5	)	 	 	(2	%)	 	 	(1.3	)	 	 	(4	%)	 	 	(2.0	)	 	 	(8	%)
	Prepaid Expense
	 	 	16.2	 	 	 	15.3	 	 	 	24.0	 	 	 	22.6	 	 	 	17.9	 	 	 	(2.0	)	 	 	(10	%)	 	 	(4.7	)	 	 	(21	%)	 	 	2.6	 	 	 	17	%
	Other Current Assets
	 	 	11.5	 	 	 	13.6	 	 	 	14.5	 	 	 	17.2	 	 	 	17.4	 	 	 	1.0	 	 	 	(5	%)	 	 	0.1	 	 	 	1	%	 	 	3.5	 	 	 	25	%
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	CURRENT ASSETS
	 	 	515.8	 	 	 	383.9	 	 	 	380.9	 	 	 	403.8	 	 	 	406.2	 	 	 	49.7	 	 	 	14	%	 	 	4.5	 	 	 	1	%	 	 	24.3	 	 	 	6	%
	Property, Plant & Equipment - Gross
	 	 	2,482.8	 	 	 	2,504.1	 	 	 	2,502.5	 	 	 	2,532.6	 	 	 	2,529.6	 	 	 	(42.8	)	 	 	(2	%)	 	 	(3.2	)	 	 	(0	%)	 	 	25.5	 	 	 	1	%
	Property, Plant & Equipment-CIP
	 	 	42.7	 	 	 	17.8	 	 	 	18.2	 	 	 	17.4	 	 	 	17.2	 	 	 	(1.1	)	 	 	(6	%)	 	 	(0.1	)	 	 	(1	%)	 	 	(0.5	)	 	 	(3	%)
	Property, Plant & Equipment-Impairment
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Accumulated Depreciation
	 	 	(1,604.8	)	 	 	(1,625.6	)	 	 	(1,647.5	)	 	 	(1,682.8	)	 	 	(1,701.7	)	 	 	40.2	 	 	 	2	%	 	 	(18.9	)	 	 	1	%	 	 	(76.1	)	 	 	(5	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Property, Plant & Equipment - Net
	 	 	920.6	 	 	 	896.3	 	 	 	873.2	 	 	 	867.4	 	 	 	845.1	 	 	 	(3.7	)	 	 	(0	%)	 	 	(22.3	)	 	 	(3	%)	 	 	(51.1	)	 	 	(6	%)
	Intangible Assets, Net
	 	 	88.3	 	 	 	88.1	 	 	 	85.3	 	 	 	84.7	 	 	 	78.6	 	 	 	(9.1	)	 	 	(10	%)	 	 	(6.1	)	 	 	(7	%)	 	 	(9.5	)	 	 	(11	%)
	Long  Term  Notes Receivable
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Investment  in BRCOM
	 	 	(452.1	)	 	 	472.3	 	 	 	295.8	 	 	 	295.9	 	 	 	295.9	 	 	 	296.9	 	 	 	n/m	 	 	 	0.0	 	 	 	0	%	 	 	(176.4	)	 	 	(37	%)
	Other  Investments
	 	 	1.4	 	 	 	1.4	 	 	 	1.4	 	 	 	1.4	 	 	 	1.4	 	 	 	(0.1	) 	 	 	(6	%)	 	 	(0.1	)	 	 	(6	%)	 	 	(0.1	) 	 	 	(6	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Investments
	 	 	(450.6	)	 	 	473.8	 	 	 	297.3	 	 	 	297.3	 	 	 	297.3	 	 	 	295.8	 	 	 	n/m	 	 	 	(0.1	)	 	 	(0	%)	 	 	(176.5	)	 	 	(37	%)
	Deferred Tex Asset
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	 	 	 	 	 	 
	Long Term Notes Intercompany - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Deferred Charges &  Noncurrent  Assets
	 	 	110.8	 	 	 	191.0	 	 	 	188.6	 	 	 	179.7	 	 	 	162.9	 	 	 	(378.9	)	 	 	(67	%)	 	 	3.3	 	 	 	2	%	 	 	(8.1	)	 	 	(4	%)
	Net Assets of  Discontinued Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	NONCURRENT ASSETS
	 	 	668.0	 	 	 	1,649.1	 	 	 	1,444.3	 	 	 	1,429.1	 	 	 	1,404.0	 	 	 	(95.9	)	 	 	(6	%)	 	 	(25.1	)	 	 	(2	%)	 	 	(245.2	)	 	 	(18	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL ASSETS
	 	 	1,184.8	 	 	 	2,033.1	 	 	 	1,825.2	 	 	 	1,832.9	 	 	 	1,812.2	 	 	 	(46.3	)	 	 	(2	%)	 	 	(20.7	)	 	 	(1	%)	 	 	(220.9	)	 	 	(11	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts  Payable - Intercompany
	 	 	8.5	 	 	 	48.6	 	 	 	53.0	 	 	 	52.3	 	 	 	52.7	 	 	 	52.7	 	 	 	n/m	 	 	 	0.5	 	 	 	1	%	 	 	4.2	 	 	 	9	%
	Accounts Payable - Trade
	 	 	50.1	 	 	 	54.7	 	 	 	48.8	 	 	 	62.8	 	 	 	49.8	 	 	 	(0.0	) 	 	 	(0	%)	 	 	(13.0	) 	 	 	(21	%)	 	 	(4.9	)	 	 	(9	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Accounts  Payable-Net
	 	 	58.5	 	 	 	103.2	 	 	 	101.9	 	 	 	115.1	 	 	 	102.5	 	 	 	52.7	 	 	 	106	%	 	 	(12.5	)	 	 	(11	%)	 	 	(0.7	)	 	 	(1	%)
	Accounts Payable - Intercompany
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accrued Liabilities
	 	 	79.2	 	 	 	68.1	 	 	 	58.1	 	 	 	58.6	 	 	 	60.9	 	 	 	7.1	 	 	 	13	%	 	 	2.3	 	 	 	4	%	 	 	(7.2	)	 	 	(11	%)
	Intercompany Notes  Payable
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Accrued  Taxes
	 	 	(271.0	)	 	 	(143.3	)	 	 	(143.9	)	 	 	(136.3	)	 	 	(129.7	)	 	 	15.7	 	 	 	11	%	 	 	8.7	 	 	 	6	%	 	 	13.7	 	 	 	10	%
	Advanced  Billings & Customer  Deposits
	 	 	38.6	 	 	 	39.5	 	 	 	38.3	 	 	 	39.6	 	 	 	39.2	 	 	 	1.0	 	 	 	3	%	 	 	(0.5	)	 	 	(1	%)	 	 	(0.4	)	 	 	(1	%)
	Accrued Compensated Absences
	 	 	2.8	 	 	 	3.3	 	 	 	3.5	 	 	 	3.3	 	 	 	2.8	 	 	 	0.4	 	 	 	15	%	 	 	(0.6	)	 	 	(17	%)	 	 	(0.6	)	 	 	(17	%)
	Restructuring
	 	 	4.6	 	 	 	2.6	 	 	 	1.0	 	 	 	0.8	 	 	 	0.7	 	 	 	(6.6	)	 	 	(90	%)	 	 	(0.1	)	 	 	(10	%)	 	 	(1.8	)	 	 	(71	%)
	Other Current  Liabilities
	 	 	30.2	 	 	 	29.6	 	 	 	47.0	 	 	 	50.4	 	 	 	40.0	 	 	 	(3.2	)	 	 	(7	%)	 	 	(10.4	)	 	 	(21	%)	 	 	10.3	 	 	 	35	%
	Short-Term Bank Note  (See  Notes 3 & 4)
	 	 	106.0	 	 	 	5.3	 	 	 	48.6	 	 	 	10.3	 	 	 	4.7	 	 	 	(93.0	)	 	 	(85	%)	 	 	(5.6	)	 	 	(54	%)	 	 	(0.6	)	 	 	(10	%)
	Other Short-Term Debt
	 	 	26.9	 	 	 	5.3	 	 	 	5.5	 	 	 	4.9	 	 	 	4.7	 	 	 	0.1	 	 	 	1	%	 	 	(0.2	)	 	 	(5	%)	 	 	(0.7	)	 	 	(12	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	CURRENT  LIABILITIES
	 	 	75.8	 	 	 	113.7	 	 	 	158.9	 	 	 	144.8	 	 	 	125.9	 	 	 	(25.9	)	 	 	(17	%)	 	 	(18.9	)	 	 	(13	%)	 	 	12.2	 	 	 	11	%
	Bank Note (See Notes 3 & 4)
	 	 	393.2	 	 	 	603.2	 	 	 	507.8	 	 	 	510.7	 	 	 	484.3	 	 	 	76.9	 	 	 	19	%	 	 	(26.4	)	 	 	(5	%)	 	 	(118.9	)	 	 	(20	%)
	Convertible  Bonds
	 	 	534.5	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Other  Long  Term  Debt
	 	 	1,139.6	 	 	 	1,671.3	 	 	 	1,676.7	 	 	 	1,682.4	 	 	 	1,691.1	 	 	 	3.8	 	 	 	0	%	 	 	8.6	 	 	 	1	%	 	 	19.7	 	 	 	1	%
	NonCurrent  Intercompany Debt
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Minority Interest
	 	 	39.2	 	 	 	38.9	 	 	 	39.0	 	 	 	40.2	 	 	 	40.4	 	 	 	(2.1	)	 	 	(5	%)	 	 	0.2	 	 	 	1	%	 	 	1.5	 	 	 	4	%
	LT Restructuring
	 	 	0.0	 	 	 	7.4	 	 	 	6.9	 	 	 	6.8	 	 	 	6.5	 	 	 	6.5	 	 	 	n/m	 	 	 	(0.3	)	 	 	(5	%)	 	 	(0.9	)	 	 	(13	%)
	Unearned Revenue
	 	 	12.3	 	 	 	11.9	 	 	 	11.1	 	 	 	10.7	 	 	 	10.4	 	 	 	(1.6	)	 	 	(13	%)	 	 	(0.4	)	 	 	(4	%)	 	 	(1.6	)	 	 	(13	%)
	Noncurrent Deferred  Income Taxes
	 	 	261.5	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	(120.0	)	 	 	(100	%)	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Post  Retirement (FAS 106)
	 	 	52.6	 	 	 	55.1	 	 	 	59.1	 	 	 	62.4	 	 	 	64.7	 	 	 	1.2	 	 	 	2	%	 	 	2.4	 	 	 	4	%	 	 	9.6	 	 	 	17	%
	Other  Noncurrent Liabilities
	 	 	30.9	 	 	 	32.8	 	 	 	33.2	 	 	 	31.1	 	 	 	30.0	 	 	 	(3.8	)	 	 	(11	%)	 	 	(1.1	)	 	 	(3	%)	 	 	(2.8	)	 	 	(8	%)
	Total  Noncurrent  Liabilities
	 	 	83.5	 	 	 	87.9	 	 	 	92.3	 	 	 	93.5	 	 	 	94.8	 	 	 	(2.5	)	 	 	(3	%)	 	 	1.3	 	 	 	1	%	 	 	6.8	 	 	 	8	%
	Net  Liabilities from  Discontinued  Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	NONCURRENT  LIABILITIES
	 	 	2,463.6	 	 	 	2,420.8	 	 	 	2,333.9	 	 	 	2,344.3	 	 	 	2,327.4	 	 	 	(39.0	)	 	 	(2	%)	 	 	(16.9	)	 	 	(1	%)	 	 	(93.4	)	 	 	(4	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL LIABILITIES
	 	 	2,539.6	 	 	 	2,534.5	 	 	 	2,493.8	 	 	 	2,489.1	 	 	 	2,453.3	 	 	 	(64.9	)	 	 	(3	%)	 	 	(35.8	)	 	 	(1	%)	 	 	(81.21	)	 	 	(2	%)
	MEZZANINE FINANCING:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Convertible Preferred Stock
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Exchangeable Preferred Stock
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL MEZZANINE FINANCING
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Convertible Preferred Stock
	 	 	129.4	 	 	 	129.4	 	 	 	129.4	 	 	 	129.4	 	 	 	129.4	 	 	 	(0.0	)	 	 	(0	%)	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Common  Stock
	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Paid-In Capital
	 	 	2,937.5	 	 	 	2,940.6	 	 	 	2,940.4	 	 	 	2,936.1	 	 	 	2,935.7	 	 	 	3.0	 	 	 	0	%	 	 	(2.4	)	 	 	(0	%)	 	 	(4.9	)	 	 	(0	%)
	Retained Earnings
	 	 	(4,269.2	)	 	 	(3,426.2	)	 	 	(3,593.3	)	 	 	(3,578.4	)	 	 	(3,560.9	)	 	 	15.7	 	 	 	0	%	 	 	17.5	 	 	 	0	%	 	 	(134.7	)	 	 	(4	%)
	Accumulated Other Comprehensive Income
	 	 	(9.5	)	 	 	(2.3	)	 	 	(2.3	)	 	 	(2.5	)	 	 	(2.5	)	 	 	(0.2	)	 	 	(8	%)	 	 	0.0	 	 	 	0	%	 	 	(0.2	)	 	 	(8	%)
	Treasury  Stock
	 	 	(145.5	)	 	 	(145.5	)	 	 	(145.5	)	 	 	(145.5	)	 	 	(145.4	)	 	 	0.1	 	 	 	0	%	 	 	0.1	 	 	 	0	%	 	 	0.1	 	 	 	0	%
	Investment Valuation  Allowance
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Foreign  Currency Adjustment
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Other Shareowners’  Equity
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL EQUITY
	 	 	(1,354.6	)	 	 	(501.4	)	 	 	(668.7	)	 	 	(656.2	)	 	 	(641.1	)	 	 	18.6	 	 	 	3	%	 	 	15.1	 	 	 	2	%	 	 	(139.7	)	 	 	(26	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY
	 	 	1,184.8	 	 	 	2,033.1	 	 	 	1,825.2	 	 	 	1,632.9	 	 	 	1,812.2	 	 	 	(46.3	)	 	 	(2	%)	 	 	(20.71	)	 	 	(1	%)	 	 	(220.9	)	 	 	(11	%)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Total Credit Facility Balance
	 	 	499.2	 	 	 	608.4	 	 	 	556.4	 	 	 	521.0	 	 	 	489.0	 	 	 	16.1	 	 	 	3	%	 	 	32.0	 	 	 	6	%	 	 	119.4	 	 	 	20	%
	Net Debt (See Note)
	 	 	2,167.4	 	 	 	2,259.1	 	 	 	2,215.8	 	 	 	2,186.3	 	 	 	2,158.1	 	 	 	12.9	 	 	 	1	%	 	 	27.9	 	 	 	1	%	 	 	101.1	 	 	 	4	%





Note: “Net Debt” includes Short-Term Bank Note, Other Short-Term Debt, Bank Notes, Convertible Bonds and Other Long-Term Debt; offset by Cash and Cash Equivalents, and Swap Liability.


Note 2: All intercompany transactions within Restricted Group have been eliminated. Transactions between the Restricted Group & BRCOM are not eliminated, but are presented separately.


Note 3: CBI guarantees the borrowing under the credit facility directly at BRCOM. The  BRCOM  direct borrowings are not  reflected above.


Note 4: BRCOM direct borrowings under credit facility  $0 million



	 	 	 
	Unrestricted Group 093004 Balance Sheet.xls (Restricted)
	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM Report #Restricted














CINCINNATI BELL INC. - UNRESTRICTED ENTITIES


INCLUDES CBTS AND BRCOM SUBSIDIARIES



BALANCE SHEET



SEPTEMBER, 2004



(Dollars in millions)




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	3RD QTR
	 	4TH QTR
	 	1ST QTR
	 	2ND QTR
	 	3RD  QTR
	 	VS. PRIOR
 QUARTER
	 	VS. PRIOR 
YEAR-END

	
	 	2003	 	2003	 	2004	 	2004	 	2004	 	CHANGE	 	CHANGE
	ASSETS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercompany Notes Receivable - BRCOM
	 	 	(31.5	)	 	 	(157.3	)	 	 	(166.5	)	 	 	(187.0	)	 	 	(203.2	)	 	 	(16.2	)	 	 	(46.0	)
	Intercompany Interest Receivable - BRCOM
	 	 	(0.1	)	 	 	(1.0	)	 	 	(0.5	)	 	 	(0.6	)	 	 	(0.7	)	 	 	(0.2	)	 	 	0.3	 
	Intercompany Accounts Receivable - BRCOM
	 	 	(268.0	)	 	 	(16.5	)	 	 	(18.0	)	 	 	(6.5	)	 	 	1.4	 	 	 	7.9	 	 	 	17.9	 
	Accounts Receivable, External
	 	 	21.7	 	 	 	21.2	 	 	 	20.2	 	 	 	18.9	 	 	 	21.7	 	 	 	2.8	 	 	 	0.5	 
	Allowance
	 	 	(2.4	)	 	 	(2.5	)	 	 	(3.8	)	 	 	(2.1	)	 	 	(2.4	)	 	 	(0.3	)	 	 	0.1	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	Accounts Receivable, Net
	 	 	19.3	 	 	 	18.7	 	 	 	16.4	 	 	 	16.8	 	 	 	19.3	 	 	 	2.5	 	 	 	0.6	 
	Materials and Supplies
	 	 	4.6	 	 	 	1.4	 	 	 	5.4	 	 	 	13.9	 	 	 	6.4	 	 	 	(7.5	)	 	 	5.0	 
	Prepaid Expense
	 	 	0.9	 	 	 	0.6	 	 	 	0.6	 	 	 	0.6	 	 	 	0.4	 	 	 	(0.2	)	 	 	(0.2	)
	Other Current Assets
	 	 	(9.3	)	 	 	29.4	 	 	 	26.1	 	 	 	36.7	 	 	 	22.8	 	 	 	(13.9	)	 	 	(6.7	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	CURRENT ASSETS
	 	 	(284.1	)	 	 	(124.6	)	 	 	(136.6	)	 	 	(126.1	)	 	 	(153.6	)	 	 	(27.5	)	 	 	(29.0	)
	Property, Plant & Equipment - Gross
	 	 	3.0	 	 	 	3.1	 	 	 	3.3	 	 	 	3.5	 	 	 	13.3	 	 	 	9.8	 	 	 	10.1	 
	Property, Plant & Equipment - CIP
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	3.2	 	 	 	3.2	 	 	 	3.2	 
	Accumulated Depreciation
	 	 	(0.4	)	 	 	(0.6	)	 	 	(0.8	)	 	 	(1.0	)	 	 	(1.2	)	 	 	(0.2	)	 	 	(0.6	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	Property, Plant & Equipment - Net
	 	 	2.6	 	 	 	2.6	 	 	 	2.5	 	 	 	2.5	 	 	 	15.3	 	 	 	12.7	 	 	 	12.7	 
	Long Term Notes Receivable
	 	 	0.0	 	 	 	0.0	 	 	 	0.3	 	 	 	0.4	 	 	 	0.4	 	 	 	(0.0	)	 	 	0.4	 
	Investment in BRCOM
	 	 	452.1	 	 	 	(472.3	)	 	 	(295.8	)	 	 	(295.9	)	 	 	(295.9	)	 	 	(0.0	)	 	 	176.4	 
	Other Investments
	 	 	2.8	 	 	 	2.8	 	 	 	2.5	 	 	 	2.5	 	 	 	2.4	 	 	 	(0.0	)	 	 	(0.3	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	Investments
	 	 	454.8	 	 	 	(469.6	)	 	 	(293.4	)	 	 	(293.4	)	 	 	(293.5	)	 	 	(0.0	)	 	 	176.1	 
	Noncurrent Deferred Tax Asset
	 	 	0.0	 	 	 	697.0	 	 	 	689.2	 	 	 	662.4	 	 	 	660.7	 	 	 	(1.7	)	 	 	(36.2	)
	Long Term Notes Intercompany - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Deferred Charges & Noncurrent Assets
	 	 	0.2	 	 	 	(64.9	)	 	 	(62.3	)	 	 	(56.8	)	 	 	(54.5	)	 	 	2.2	 	 	 	10.4	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	NONCURRENT ASSETS
	 	 	457.5	 	 	 	165.0	 	 	 	336.3	 	 	 	315.2	 	 	 	328.4	 	 	 	13.2	 	 	 	163.3	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL ASSETS
	 	 	173.4	 	 	 	40.4	 	 	 	199.7	 	 	 	189.1	 	 	 	174.8	 	 	 	(14.3	)	 	 	134.3	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable - Intercompany
	 	 	(8.5	)	 	 	(48.6	)	 	 	(53.0	)	 	 	(52.3	)	 	 	(52.7	)	 	 	(0.5	)	 	 	(4.2	)
	Accounts Payable - Trade
	 	 	9.0	 	 	 	9.8	 	 	 	3.3	 	 	 	8.0	 	 	 	6.2	 	 	 	(1.8	)	 	 	(3.6	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	Accounts Payable - Net
	 	 	0.5	 	 	 	(38.8	)	 	 	(49.7	)	 	 	(44.3	)	 	 	(46.5	)	 	 	(2.3	)	 	 	(7.8	)
	Accrued Liabilities
	 	 	24.4	 	 	 	26.5	 	 	 	27.9	 	 	 	22.4	 	 	 	20.3	 	 	 	(2.2	)	 	 	(6.2	)
	Accrued Taxes
	 	 	325.5	 	 	 	187.3	 	 	 	177.9	 	 	 	169.0	 	 	 	170.9	 	 	 	1.9	 	 	 	(16.3	)
	Advanced Billings & Customer Deposits
	 	 	0.6	 	 	 	2.0	 	 	 	2.0	 	 	 	1.7	 	 	 	1.9	 	 	 	0.2	 	 	 	(0.1	)
	Accrued Compensated Absences
	 	 	0.0	 	 	 	0.4	 	 	 	0.4	 	 	 	0.5	 	 	 	0.4	 	 	 	(0.1	)	 	 	(0.0	)
	Restructuring
	 	 	19.7	 	 	 	1.6	 	 	 	0.6	 	 	 	0.4	 	 	 	0.2	 	 	 	(0.1	)	 	 	(1.4	)
	Other Current Liabilities
	 	 	0.5	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Other Short-Term Debt
	 	 	2.8	 	 	 	2.7	 	 	 	1.6	 	 	 	1.6	 	 	 	1.2	 	 	 	(0.4	)	 	 	(1.5	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	CURRENT LIABILITIES
	 	 	374.0	 	 	 	181.7	 	 	 	160.7	 	 	 	151.4	 	 	 	148.4	 	 	 	(2.9	)	 	 	(33.3	)
	Bank Note (See Notes 3 & 4)
	 	 	140.7	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Other Long Term Debt
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	(0.3	)	 	 	0.2	 	 	 	0.6	 	 	 	0.2	 
	Minority Interest
	 	 	0.7	 	 	 	0.7	 	 	 	0.7	 	 	 	0.7	 	 	 	0.7	 	 	 	0.0	 	 	 	0.0	 
	LT Restructuring
	 	 	0.0	 	 	 	4.1	 	 	 	3.9	 	 	 	3.7	 	 	 	3.5	 	 	 	(0.2	)	 	 	(0.6	)
	Noncurrent Deferred Income Taxes
	 	 	(261.5	)	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Total Noncurrent Liabilities
	 	 	97.5	 	 	 	31.9	 	 	 	34.3	 	 	 	33.6	 	 	 	21.9	 	 	 	(11.8	)	 	 	(10.0	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	NONCURRENT LIABILITIES
	 	 	(22.5	)	 	 	36.7	 	 	 	39.0	 	 	 	37.7	 	 	 	26.3	 	 	 	(11.4	)	 	 	(10.4	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL LIABILITIES
	 	 	351.4	 	 	 	218.4	 	 	 	199.7	 	 	 	189.1	 	 	 	174.8	 	 	 	(14.3	)	 	 	(43.7	)
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Retained Earnings
	 	 	(178.0	)	 	 	(178.0	)	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	178.0	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL EQUITY
	 	 	(178.0	)	 	 	(178.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	0.0	 	 	 	178.0	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL LIABILITIES & EQUITY
	 	 	173.4	 	 	 	40.4	 	 	 	199.7	 	 	 	189.1	 	 	 	174.8	 	 	 	(14.3	)	 	 	134.3	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	Total Credit Facility Balance
	 	 	140.7	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Net Debt (See Note)
	 	 	2,310.9	 	 	 	2,261.8	 	 	 	2,217.4	 	 	 	2,187.6	 	 	 	2,159.5	 	 	 	(28.1	)	 	 	(102.3	)





Note 1: “Net Debt” includes Short-Term Bank Note, Other Short-Term Debt, Bank Notes, Convertible Bonds and Other Long-Term Debt; offset by Cash and Cash Equivalents, and Swap Liability.


Note 2: All intercompany transactions within Restricted Group have been eliminated. Transactions between the Restricted Group & BRCOM are not eliminated, but are presented separately.



	 	 	 
	
	 	2/2/2005 6:06 PM
	Unrestricted Group 093004 Balance Sheet.xls (Unrestricted)
	Cincinnati BELL Inc. Confidential	Report #Unrestricted














BROADBAND SEGMENT

BALANCE SHEET

SEPTEMBER,  2004

(Dollars in millions)




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	3rd Qtr	 	4th Qtr	 	1st Qtr	 	2nd Qtr	 	3rd  Qtr	 	vs. PRIOR QUARTER	 	vs. PRIOR YEAR-END
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	
	 	2003	 	2003	 	2004	 	2004	 	2004	 	CHANGE	 	%	 	CHANGE	 	%
	ASSETS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Cash
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Cash & Cash Equivalents
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Intercompany Notes Receivable - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Reserve for BRCOM Uncollectible IC Notes
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Intercompany Interest Receivable - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Intercompany Accounts Receivable, Gross
	 	 	4.2	 	 	 	48.8	 	 	 	48.9	 	 	 	48.6	 	 	 	48.8	 	 	 	0.2	 	 	 	0	%	 	 	(0.1	)	 	 	(0	%)
	Accounts Receivable, Gross
	 	 	0.2	 	 	 	0.4	 	 	 	0.2	 	 	 	0.2	 	 	 	0.2	 	 	 	0.0	 	 	 	0	%	 	 	(0.2	)	 	 	(46	%)
	Allowance
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	Accounts Receivable, Net
	 	 	0.2	 	 	 	0.4	 	 	 	0.2	 	 	 	0.2	 	 	 	0.2	 	 	 	0.0	 	 	 	0	%	 	 	(0.2	)	 	 	(46	%)
	Materials and Supplies
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Prepaid Expense
	 	 	0.4	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.1	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Other Current Assets
	 	 	0.7	 	 	 	0.7	 	 	 	0.3	 	 	 	0.3	 	 	 	0.0	 	 	 	(0.3	)	 	 	(100	%)	 	 	(0.7	)	 	 	(100	%)
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	CURRENT ASSETS
	 	 	5.5	 	 	 	49.9	 	 	 	49.4	 	 	 	49.1	 	 	 	49.0	 	 	 	(0.1	)	 	 	(0	)%	 	 	(0.9	)	 	 	(2	)%
	Property, Plant & Equipment - Gross
	 	 	0.9	 	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Accumulated Depreciation
	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	Property, Plant & Equipment - Net
	 	 	0.9	 	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Intangible Assets, Net
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Investment in BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0	%	 	 	(0.3	)	 	 	(10	%)
	Other Investments
	 	 	2.7	 	 	 	2.7	 	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	Investments
	 	 	2.7	 	 	 	2.7	 	 	 	2.5	 	 	 	2.5	 	 	 	2.5	 	 	 	0.0	 	 	 	 	 	 	 	(0.3	)	 	 	 	 
	Noncurrent Deferred Tax Asset
	 	 	0.0	 	 	 	473.4	 	 	 	469.5	 	 	 	466.6	 	 	 	459.2	 	 	 	(7.4	)	 	 	(2	%)	 	 	(14.2	)	 	 	(3	%)
	Long Term Notes Intercompany - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Deferred Charges & Noncurrent Assets
	 	 	(0.2	)	 	 	(0.3	)	 	 	(0.3	)	 	 	(0.3	)	 	 	(0.3	)	 	 	(0.0	)	 	 	(0	%)	 	 	(0.0	)	 	 	(0	%)
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	NONCURRENT ASSETS
	 	 	3.5	 	 	 	476.3	 	 	 	472.1	 	 	 	469.1	 	 	 	461.7	 	 	 	(7.4	)	 	 	(2	)%	 	 	(14.5	)	 	 	(3	)%
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL ASSETS
	 	 	8.9	 	 	 	526.2	 	 	 	521.5	 	 	 	518.3	 	 	 	510.8	 	 	 	(7.5	)	 	 	(1	)%	 	 	(15.4	%)	 	 	(3	)%
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable - Intercompany
	 	 	267.4	 	 	 	15.1	 	 	 	6.9	 	 	 	(0.9	)	 	 	(2.8	)	 	 	(1.9	)	 	 	n/m	 	 	 	(17.9	)	 	 	(119	%)
	Accounts Payable - Trade
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	Accounts Payable - Net
	 	 	267.4	 	 	 	15.1	 	 	 	6.9	 	 	 	(0.9	)	 	 	(2.8	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accrued Liabilities
	 	 	23.3	 	 	 	25.3	 	 	 	23.5	 	 	 	20.8	 	 	 	18.4	 	 	 	(2.4	)	 	 	(12	%)	 	 	(6.9	)	 	 	(27	%)
	Intercompany Notes Payable
	 	 	31.5	 	 	 	168.8	 	 	 	178.3	 	 	 	188.6	 	 	 	188.7	 	 	 	0.1	 	 	 	0	%	 	 	19.9	 	 	 	12	%
	Accrued Taxes
	 	 	159.1	 	 	 	9.3	 	 	 	4.2	 	 	 	3.2	 	 	 	11.8	 	 	 	8.6	 	 	 	n/m	 	 	 	2.6	 	 	 	28	%
	Restructuring
	 	 	19.7	 	 	 	1.6	 	 	 	0.6	 	 	 	0.4	 	 	 	0.2	 	 	 	(0.1	)	 	 	(36	%)	 	 	(1.4	)	 	 	(85	%)
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	CURRENT LIABILITIES
	 	 	501.5	 	 	 	220.1	 	 	 	213.5	 	 	 	212.2	 	 	 	216.4	 	 	 	4.2	 	 	 	2	%	 	 	(3.8	)	 	 	(2	%)
	Bank  Note
	 	 	140.7	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Minority Interest
	 	 	0.7	 	 	 	0.7	 	 	 	0.7	 	 	 	0.7	 	 	 	0.7	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	LT Restructuring
	 	 	0.0	 	 	 	4.1	 	 	 	3.9	 	 	 	3.7	 	 	 	3.5	 	 	 	(0.2	)	 	 	(5	%)	 	 	(0.6	)	 	 	(14	%)
	Other NonCurrent Liabilities
	 	 	9.7	 	 	 	31.9	 	 	 	34.3	 	 	 	33.6	 	 	 	21.9	 	 	 	(11.7	)	 	 	(35	%)	 	 	(10.0	)	 	 	(31	%)
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	NONCURRENT LIABILITIES
	 	 	151.1	 	 	 	36.7	 	 	 	39.0	 	 	 	38.0	 	 	 	26.1	 	 	 	(11.9	)	 	 	(31	)%	 	 	(10.6	)	 	 	(29	)%
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL LIABILTIES
	 	 	652.6	 	 	 	256.8	 	 	 	252.4	 	 	 	250.2	 	 	 	242.5	 	 	 	(7.7	)	 	 	(3	)%	 	 	(14.3	)	 	 	(6	)%
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paid-in Capital
	 	 	3,318.4	 	 	 	2,944.6	 	 	 	2,944.6	 	 	 	2,944.6	 	 	 	2,944.6	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Retained Earnings
	 	 	(3,965.5	)	 	 	(2,678.8	)	 	 	(2,679.1	)	 	 	(2,680.1	)	 	 	(2,679.9	)	 	 	0.2	 	 	 	0	%	 	 	(1.1	)	 	 	(0	%)
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL EQUITY
	 	 	(647.1	)	 	 	265.8	 	 	 	265.5	 	 	 	264.6	 	 	 	264.7	 	 	 	0.2	 	 	 	0	%	 	 	(1.1	)	 	 	(0	)%
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY
	 	 	5.5	 	 	 	522.6	 	 	 	517.9	 	 	 	514.7	 	 	 	507.2	 	 	 	(7.5	)	 	 	(1	%)	 	 	(15.4	)	 	 	(3	%)
	
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 
	Net  Debt  (See Note)
	 	 	435.4	 	 	 	135.1	 	 	 	136.3	 	 	 	139.2	 	 	 	137.1	 	 	 	(2.0	)	 	 	(1	%)	 	 	2.0	 	 	 	2	%





Note: “Net Debt” includes Intercompany Accounts Payable, Intercompany Notes Payable, Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds, Other
 Long-Te and 12 1/2% Preferred tock; offset by Cash and Cash Equivalents, Intercompany Notes Receivable and Intercompany Accounts Receivable.



	 	 	 
	Unrestricted Group  093004  Balance  Sheet.xls (Broadband)
	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM
Report Broadband














HARDWARE & MANAGED SERVICES 



BALANCE SHEET 




SEPTEMBER, 2004




(Dollars in millions)




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	3rd Qtr	 	4th Qtr	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	vs. PRIOR	 	QUARTER	 	vs. PRIOR	 	YEAR-END
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	
	 	2003	 	2003	 	2003	 	2003	 	2004	 	CHANGE	 	%	 	CHANGE	 	%
	ASSETS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Cash
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 	 	 	0.0	 	 	 	 	 
	Cash & Cash Equivalents
	 	 	0.1	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	51	%	 	 	(0.0	)	 	 	(32	%)
	Intercompany Notes Receivable
	 	 	(0.0	)	 	 	11.5	 	 	 	11.8	 	 	 	1.6	 	 	 	(14.5	)	 	 	(16.1	)	 	 	n/m	 	 	 	(26.0	)	 	 	n/m	 
	Intercompany Accounts Receivable, Gross
	 	 	5.5	 	 	 	1.0	 	 	 	5.4	 	 	 	4.9	 	 	 	5.2	 	 	 	0.3	 	 	 	6	%	 	 	4.2	 	 	 	n/m	 
	Accounts Receivable, Gross
	 	 	21.4	 	 	 	31.3	 	 	 	20.0	 	 	 	18.7	 	 	 	21.5	 	 	 	2.8	 	 	 	15	%	 	 	(9.8	)	 	 	(31	%)
	Allowance
	 	 	(2.4	)	 	 	(3.6	)	 	 	(3.8	)	 	 	(2.1	)	 	 	(2.4	)	 	 	(0.3	)	 	 	(13	%)	 	 	1.2	 	 	 	34	%
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Accounts Receivable, Net
	 	 	19.0	 	 	 	27.7	 	 	 	16.2	 	 	 	16.6	 	 	 	19.1	 	 	 	2.5	 	 	 	15	%	 	 	(8.6	)	 	 	(31	%)
	Materials and Supplies
	 	 	4.6	 	 	 	3.6	 	 	 	5.4	 	 	 	13.9	 	 	 	6.4	 	 	 	(7.5	)	 	 	(54	%)	 	 	2.8	 	 	 	77	%
	Prepaid Expense
	 	 	0.5	 	 	 	0.6	 	 	 	0.5	 	 	 	0.5	 	 	 	0.3	 	 	 	(0.2	)	 	 	(35	%)	 	 	(0.2	)	 	 	(42	%)
	Other Current Assets
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	CURRENT ASSETS
	 	 	29.7	 	 	 	44.4	 	 	 	39.3	 	 	 	37.5	 	 	 	16.5	 	 	 	(21.0	)	 	 	(56	%)	 	 	(27.8	)	 	 	(63	%)
	Property, Plant & Equipment - Gross
	 	 	2.0	 	 	 	2.7	 	 	 	2.9	 	 	 	3.1	 	 	 	12.9	 	 	 	9.8	 	 	 	n/m	 	 	 	10.1	 	 	 	n/m	 
	Property, Plant & Equipment - CIP
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	3.2	 	 	 	3.2	 	 	 	n/m	 	 	 	3.2	 	 	 	n/m	 
	Accumulated Depreciation
	 	 	(0.4	)	 	 	(0.6	)	 	 	(0.8	)	 	 	(1.0	)	 	 	(1.2	)	 	 	(0.2	)	 	 	(26	%)	 	 	(0.6	)	 	 	(107	%)
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Property, Plant & Equipment - Net
	 	 	1.6	 	 	 	2.2	 	 	 	2.1	 	 	 	2.2	 	 	 	14.9	 	 	 	12.7	 	 	 	n/m	 	 	 	12.7	 	 	 	n/m	 
	Long Term Notes Receivable
	 	 	0.0	 	 	 	0.0	 	 	 	0.3	 	 	 	0.4	 	 	 	0.4	 	 	 	(0.0	)	 	 	(5	%)	 	 	0.4	 	 	 	n/m	 
	Investment in BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	n/m	 	 	 	0.0	 	 	 	n/m	 
	Other Investments
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 	 	 	0.0	 	 	 	 	 
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Investments
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 	 	 	0.0	 	 	 	 	 
	Noncurrent Deferred Tax Asset
	 	 	0.0	 	 	 	9.9	 	 	 	9.9	 	 	 	9.7	 	 	 	8.8	 	 	 	(0.9	)	 	 	(9	%)	 	 	(1.0	)	 	 	(11	%)
	Long Term Notes Intercompany - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	 	 	 	 	0.0	 	 	 	 	 
	Other NonCurrent Assets
	 	 	0.4	 	 	 	0.4	 	 	 	0.3	 	 	 	0.3	 	 	 	2.4	 	 	 	2.1	 	 	 	n/m	 	 	 	2.0	 	 	 	n/m	 
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	NONCURRENT ASSETS
	 	 	2.0	 	 	 	12.4	 	 	 	12.6	 	 	 	12.6	 	 	 	26.5	 	 	 	13.9	 	 	 	110	%	 	 	14.1	 	 	 	113	%
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL ASSETS
	 	 	31.7	 	 	 	56.8	 	 	 	51.8	 	 	 	50.1	 	 	 	43.0	 	 	 	(7.1	)	 	 	(14	%)	 	 	(13.8	)	 	 	(24	%)
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable - Intercompany
	 	 	1.8	 	 	 	11.9	 	 	 	12.3	 	 	 	8.5	 	 	 	2.6	 	 	 	(5.9	)	 	 	(70	%)	 	 	(9.3	)	 	 	(78	%)
	Accounts Payable - Trade
	 	 	9.0	 	 	 	9.8	 	 	 	3.3	 	 	 	8.0	 	 	 	6.2	 	 	 	(1.8	)	 	 	 	 	 	 	(3.6	)	 	 	 	 
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Accounts Payable - Net
	 	 	10.8	 	 	 	21.7	 	 	 	15.6	 	 	 	16.5	 	 	 	8.8	 	 	 	(1.8	)	 	 	(22	%)	 	 	(3.6	)	 	 	(37	%)
	Accrued Liabilities
	 	 	1.2	 	 	 	3.7	 	 	 	4.9	 	 	 	2.2	 	 	 	2.6	 	 	 	0.4	 	 	 	19	%	 	 	(1.1	)	 	 	(30	%)
	Accrued Taxes
	 	 	2.7	 	 	 	0.6	 	 	 	0.5	 	 	 	0.1	 	 	 	0.3	 	 	 	0.1	 	 	 	108	%	 	 	(0.3	)	 	 	(53	%)
	Advanced Billings & Customer Deposits
	 	 	0.6	 	 	 	2.7	 	 	 	2.0	 	 	 	1.7	 	 	 	1.9	 	 	 	0.2	 	 	 	12	%	 	 	(0.8	)	 	 	(31	%)
	Accrued Compensated Absences
	 	 	0.0	 	 	 	0.4	 	 	 	0.4	 	 	 	0.5	 	 	 	0.4	 	 	 	(0.1	)	 	 	(11	%)	 	 	(0.0	)	 	 	(1	%)
	Other Short-Term Debt
	 	 	2.8	 	 	 	2.7	 	 	 	1.6	 	 	 	1.3	 	 	 	1.2	 	 	 	(0.1	)	 	 	(4	%)	 	 	(1.5	)	 	 	(55	%)
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	CURRENT LIABILITIES
	 	 	18.1	 	 	 	31.9	 	 	 	25.1	 	 	 	22.3	 	 	 	15.2	 	 	 	(7.1	)	 	 	(32	%)	 	 	(16.7	)	 	 	(52	%)
	Other Long Term Debt
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.2	 	 	 	0.2	 	 	 	n/m	 	 	 	0.2	 	 	 	n/m	 
	Net Liabilities from Discontinued Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.1	 	 	 	0.0	 	 	 	(0.1	)	 	 	(100	%)	 	 	0.0	 	 	 	n/m	 
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	NONCURRENT LIABILITIES
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.1	 	 	 	02	 	 	 	0.1	 	 	 	149	%	 	 	0.2	 	 	 	n/m	 
	TOTAL LIABILITIES
	 	 	18.1	 	 	 	31.9	 	 	 	25.1	 	 	 	22.4	 	 	 	15.4	 	 	 	(6.9	)	 	 	(31	%)	 	 	(16.5	)	 	 	(52	%)
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paid-In Capital
	 	 	54.0	 	 	 	54.0	 	 	 	54.0	 	 	 	54.0	 	 	 	54.0	 	 	 	0.0	 	 	 	0	%	 	 	0.0	 	 	 	0	%
	Retained Earnings
	 	 	(40.4	)	 	 	(29.1	)	 	 	(27.3	)	 	 	(26.3	)	 	 	(26.4	)	 	 	(0.1	)	 	 	(1	%)	 	 	2.7	 	 	 	9	%
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL EQUITY
	 	 	13.6	 	 	 	24.9	 	 	 	26.8	 	 	 	27.7	 	 	 	27.6	 	 	 	(0.1	)	 	 	(1	%)	 	 	2.7	 	 	 	11	%
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY
	 	 	31.7	 	 	 	56.8	 	 	 	51.8	 	 	 	50.1	 	 	 	43.0	 	 	 	(7.1	)	 	 	(14	%)	 	 	(13.8	)	 	 	(24	%)
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	 	 	 	 	
	 	 	 	 	 
	Net Debt (See Note)
	 	 	(0.9	)	 	 	2.2	 	 	 	(3.3	)	 	 	3.3	 	 	 	13.4	 	 	 	10.0	 	 	 	n/m	 	 	 	11.2	 	 	 	n/m	 





Note 1: “Net Debt” includes Intercompany Accounts Payable, Intercompany Notes Payable, Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds and Other Long-T offset by Cash and Cash Equivalents, Intercompany Notes Receivable and Intercompany Accounts Receivable.


Note 2: The balance sheet has been restated in December 2003 to reflect the transfer of the equipment business from CBT.



	 	 	 
	Unrestricted Group 093004 Balance Sheet. xls (Hardware)	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM 
Report #Hardware














UNRESTRICTED GROUP - ELIMINATIONS 



BALANCE SHEET
 SEPTEMBER, 2004




(Dollars in millions)




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	3rdQtr
	 	4th Qtr
	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	vs. PRIOR
 QUARTER
	 	vs. PRIOR
 YEAR-End

	
	 	2003	 	2003	 	2003	 	2003	 	2004	 	CHANGE	 	CHANGE
	ASSETS:

	Restricted Cash
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Cash & Cash Equivalents
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	(0.0	)
	Intercompany Notes Receivable
	 	 	(31.5	)	 	 	(168.8	)	 	 	(178.3	)	 	 	(188.6	)	 	 	(188.7	)	 	 	(0.1	)	 	 	(157.2	)
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercompany Accounts Receivable, Gross 
	 	 	(277.7	)	 	 	(66.2	)	 	 	(72.2	)	 	 	(59.9	)	 	 	(52.5	)	 	 	7.4 	 	 	 	225.2	 
	Accounts Receivable, Gross
	 	 	0.0	 	 	 	(10.5	)	 	 	0.0	 	 	 	(0.0	)	 	 	(0.0	)	 	 	0.0	 	 	 	(0.0	)
	Allowance
	 	 	0.0	 	 	 	1.1	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	Accounts Receivable, Net
	 	 	(0.0	)	 	 	(9.4	) 	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)	 	 	0.0	 	 	 	(0.0	)
	Materials and Supplies
	 	 	(0.0	)	 	 	(2.2	)	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Prepaid Expense
	 	 	0.0	 	 	 	(0.1	)	 	 	(0.0	)	 	 	0.0	 	 	 	(0.0	)	 	 	(0.0	)	 	 	(0.0	)
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CURRENT ASSETS
	 	 	(319.3	)	 	 	(218.9	)	 	 	(225.3	)	 	 	(212.7	)	 	 	(219.2	)	 	 	(6.4	)	 	 	100.1	 
	Investment in BRCOM
	 	 	452.1	 	 	 	(472.3	)	 	 	(295.8	)	 	 	(295.9	)	 	 	(295.9	)	 	 	(00	)	 	 	(748.0	)
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Long Term Notes Intercompany - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NONCURRENT ASSETS
	 	 	452.1	 	 	 	(323.6	)	 	 	(148.3	)	 	 	(166.5	)	 	 	(159.9	)	 	 	6.7	 	 	 	(611.9	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL ASSETS
	 	 	132.8	 	 	 	(542.6	)	 	 	(373.6	)	 	 	(379.3	)	 	 	(379.0	)	 	 	0.2	 	 	 	(511.8	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts  payable - Intercompany
	 	 	(277.7	)	 	 	(75.6	)	 	 	(72.2	)	 	 	(59.9	)	 	 	(52.5	)	 	 	7.4	 	 	 	225.2	 
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercompany  Notes Payable
	 	 	(31.5	)	 	 	(168.8	)	 	 	(178.3	)	 	 	(188.6	)	 	 	(188.7	)	 	 	(0.1	)	 	 	(157.2	)
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CURRENT LIABILITIES
	 	 	(145.6	)	 	 	(70.3	)	 	 	(77.8	)	 	 	(83.1	)	 	 	(83.2	)	 	 	(0.1)	 	 	 	62.5	 
	(ILLEGIBLE)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other NonCurrent  Liabilities
	 	 	87.9	 	 	 	(0.0	)	 	 	0.0	 	 	 	0.1	 	 	 	(0.0	)	 	 	(0.1	)	 	 	(87.9	)
	 Net Liabilities from Discontinued Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	(0.1	)	 	 	0.0	 	 	 	0.1	 	 	 	0.0	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	NONCURRENT LIABILITIES
	 	 	(173.7	)	 	 	(0.0	)	 	 	0.0	 	 	 	(0.3	)	 	 	(0.0	)	 	 	0.3	 	 	 	173.7	 
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL LIABILITIES
	 	 	(319.3	)	 	 	(70.3	)	 	 	(77.8	)	 	 	(83.4	)	 	 	(83.2	)	 	 	0.3	 	 	 	236.1	 
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paid-in Capital
	 	 	(3,375.9	) 	 	 	(3,002.2	) 	 	 	(3,002.2	) 	 	 	(3,002.2	) 	 	 	(3,002.2	) 	 	 	0.0	 	 	 	373.7	 
	Retained Earnings
	 	 	3,827.9	 	 	 	2,529.9	 	 	 	2,706.4	 	 	 	2,706.3	 	 	 	2,706.3	 	 	 	(0.0	)	 	 	(1,121.6	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL EQUITY
	 	 	452.1	 	 	 	(472.3	)	 	 	(295.8	)	 	 	(295.8	)	 	 	(295.9	)	 	 	(0.0	)	 	 	(747.9	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 
	TOTAL LIABILITIES & EQUITY
	 	 	132.8	 	 	 	(542.6	)	 	 	(373.6	)	 	 	(379.3	)	 	 	(379.0	)	 	 	0.2	 	 	 	(511.8	)
	
	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 	
	 





Note 1: “Net Debt” includes Intercompany Accounts Payable, Intercompany Notes Payable, Short-Term Bank Note, Other Short-Term Notes, Bank Notes, Convertible Bonds and Other Long-Term offset by Cash and Cash Equivalents, Intercompany Notes Receivable and Intercompany Accounts Receivable.


Note 2: The balance sheet has been restated in December 2003 to reflect the transfer of the equipment business from  CBT.



	 	 	 
	Unrestricted Group 093004 Balance Sheet.xls (Elims)

	Cincinnati Bell, Inc. Confidential	2/2/2005 6:06 PM 
Report  #Elims














CINCINNATI BELL INC.
CONSOLIDATING BALANCE SHEET
UNRESTRICTED AND RESTRICTED GROUPS
SEPTEMBER, 2004

(Dollars in millions)



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 	 	OTHER/	 	UNRE-	 	RESTRICTED	 	CONSOL-
	
	 	BRCOM	 	CBTS	 	ELIMS	 	STRICTED	 	GROUP	 	IDATED
	
	 	
	 	
	 	
	 	
	 	
	 	

	ASSETS:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Cash
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.1	 	 	 	0.1	 
	Unrestricted Cash & Cash Equivalents
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	23.0	 	 	 	23.0	 
	Intercompany Notes Receivable - BRCOM
	 	 	0.0	 	 	 	(14.5	)	 	 	(188.7	)	 	 	(203.2	)	 	 	203.2	 	 	 	0.0	 
	Intercompany Interest Receivable - BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	(0.7	)	 	 	(0.7	)	 	 	0.7	 	 	 	0.0	 
	Intercompany Accounts Receivable - BRCOM
	 	 	48.8	 	 	 	5.2	 	 	 	(52.5	)	 	 	1.4	 	 	 	(1.4	)	 	 	0.0	 
	Accounts Receivable, External
	 	 	0.2	 	 	 	21.5	 	 	 	(0.0	)	 	 	21.7	 	 	 	130.1	 	 	 	151.8	 
	Allowance
	 	 	0.0	 	 	 	(2.4	)	 	 	0.0	 	 	 	(2.4	)	 	 	(12.8	)	 	 	(15.2	)
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	Accounts Receivable, Net
	 	 	0.2	 	 	 	19.1	 	 	 	(0.0	)	 	 	19.3	 	 	 	117.2	 	 	 	136.6	 
	Materials and Supplies
	 	 	0.0	 	 	 	6.4	 	 	 	0.0	 	 	 	6.4	 	 	 	30.2	 	 	 	36.6	 
	Prepaid Expense
	 	 	0.1	 	 	 	0.3	 	 	 	(0.0	)	 	 	0.4	 	 	 	17.9	 	 	 	18.3	 
	Other Current Assets
	 	 	0.0	 	 	 	0.0	 	 	 	22.8	 	 	 	22.8	 	 	 	17.4	 	 	 	40.1	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	CURRENT ASSETS
	 	 	49.0	 	 	 	16.5	 	 	 	(219.2	)	 	 	(153.6	)	 	 	408.2	 	 	 	254.6	 
	Property, Plant & Equipment - Gross
	 	 	0.4	 	 	 	12.9	 	 	 	0.0	 	 	 	13.3	 	 	 	2,529.6	 	 	 	2,542.8	 
	Property, Plant & Equipment - CIP
	 	 	0.0	 	 	 	3.2	 	 	 	0.0	 	 	 	3.2	 	 	 	17.2	 	 	 	20.4	 
	Accumulated Depreciation
	 	 	(0.0	)	 	 	(1.2	)	 	 	0.0	 	 	 	(1.2	)	 	 	(1,701.7	)	 	 	(1,702.9	)
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	Property, Plant & Equipment - Net
	 	 	0.4	 	 	 	14.9	 	 	 	0.0	 	 	 	15.3	 	 	 	845.1	 	 	 	860.4	 
	Intangible Assets, Net
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	78.6	 	 	 	78.6	 
	Long Term Notes Receivable
	 	 	0.0	 	 	 	0.4	 	 	 	0.0	 	 	 	0.4	 	 	 	0.0	 	 	 	0.4	 
	Investment in BRCOM
	 	 	0.0	 	 	 	0.0	 	 	 	(295.9	)	 	 	(295.9	)	 	 	295.9	 	 	 	0.0	 
	Other Investments
	 	 	2.5	 	 	 	0.0	 	 	 	(0.0	)	 	 	2.4	 	 	 	1.4	 	 	 	3.8	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	Investments
	 	 	2.5	 	 	 	0.0	 	 	 	(295.9	)	 	 	(293.5	)	 	 	297.3	 	 	 	3.8	 
	Deferred Tax Asset
	 	 	459.2	 	 	 	8.8	 	 	 	192.7	 	 	 	660.7	 	 	 	0.0	 	 	 	660.7	 
	Deferred Charges & Noncurrent Assets
	 	 	(0.3	)	 	 	2.4	 	 	 	(56.7	)	 	 	(54.5	)	 	 	182.9	 	 	 	128.4	 
	Net Assets of Discontinued Ops
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	NONCURRENT ASSETS
	 	 	461.7	 	 	 	26.5	 	 	 	(159.9	)	 	 	328.4	 	 	 	1,404.0	 	 	 	1,732.3	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	TOTAL ASSETS
	 	 	510.8	 	 	 	43.0	 	 	 	(379.0	)	 	 	174.8	 	 	 	1,812.2	 	 	 	1,987.0	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	LIABILITIES:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable - Intercompany
	 	 	(2.8	)	 	 	2.6	 	 	 	(52.5	)	 	 	(52.7	)	 	 	52.7	 	 	 	0.0	 
	Accounts Payable - Trade
	 	 	0.0	 	 	 	6.2	 	 	 	0.0	 	 	 	6.2	 	 	 	49.8	 	 	 	56.0	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	Accounts Payable - Net
	 	 	(2.8	)	 	 	8.8	 	 	 	(52.5	)	 	 	(46.5	)	 	 	102.5	 	 	 	56.0	 
	Accrued Liabilities
	 	 	18.4	 	 	 	2.6	 	 	 	(0.7	)	 	 	20.3	 	 	 	60.9	 	 	 	81.2	 
	Intercompany Notes Payable
	 	 	188.7	 	 	 	0.0	 	 	 	(188.7	)	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 
	Accrued Taxes
	 	 	11.8	 	 	 	0.3	 	 	 	158.8	 	 	 	170.9	 	 	 	(129.7	)	 	 	41.3	 
	Advanced Billings & Customer Deposits
	 	 	0.0	 	 	 	1.9	 	 	 	(0.0	)	 	 	1.9	 	 	 	39.2	 	 	 	41.1	 
	Accrued Compensated Absences
	 	 	0.0	 	 	 	0.4	 	 	 	0.0	 	 	 	0.4	 	 	 	2.8	 	 	 	3.2	 
	Restructuring
	 	 	0.2	 	 	 	0.0	 	 	 	(0.0	)	 	 	0.2	 	 	 	0.7	 	 	 	1.0	 
	Other Current Liabilities
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	40.0	 	 	 	40.0	 
	Short-Term Bank Note
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	4.7	 	 	 	4.7	 
	Other Short-Term Debt
	 	 	0.0	 	 	 	1.2	 	 	 	(0.0	)	 	 	1.2	 	 	 	4.7	 	 	 	5.9	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	CURRENT LIABILITIES
	 	 	216.4	 	 	 	15.2	 	 	 	(83.2	)	 	 	148.4	 	 	 	125.9	 	 	 	274.3	 
	
	 	 	 	 	 	 	 	 	 	 	0.0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank Note
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	484.3	 	 	 	484.3	 
	Other Long Term Debt
	 	 	0.0	 	 	 	0.2	 	 	 	(0.0	)	 	 	0.2	 	 	 	1,691.1	 	 	 	1,691.3	 
	Minority Interest
	 	 	0.7	 	 	 	0.0	 	 	 	(0.0	)	 	 	0.7	 	 	 	40.4	 	 	 	41.1	 
	LT Restructuring
	 	 	3.5	 	 	 	0.0	 	 	 	0.0	 	 	 	3.5	 	 	 	6.5	 	 	 	10.0	 
	Unearned Revenue
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	10.4	 	 	 	10.4	 
	Other Noncurrent Liabilities
	 	 	0.0	 	 	 	0.0	 	 	 	86.6	 	 	 	86.6	 	 	 	30.0	 	 	 	116.7	 
	Total Noncurrent Liabilities
	 	 	21.9	 	 	 	0.0	 	 	 	(0.0	)	 	 	21.9	 	 	 	94.8	 	 	 	116.7	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	NONCURRENT LIABILITIES
	 	 	26.1	 	 	 	0.2	 	 	 	(0.0	)	 	 	26.3	 	 	 	2,327.4	 	 	 	2,353.7	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	TOTAL LIABILITIES
	 	 	242.5	 	 	 	15.4	 	 	 	(83.2	)	 	 	174.8	 	 	 	2,453.3	 	 	 	2,628.0	 
	SHAREOWNERS’ EQUITY:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Convertible Preferred Stock
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	129.4	 	 	 	129.4	 
	Common Stock
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	2.5	 	 	 	2.5	 
	Paid-In Capital
	 	 	2,948.2	 	 	 	54.0	 	 	 	(3,002.2	)	 	 	(0.0	)	 	 	2,935.7	 	 	 	2,935.7	 
	Retained Earnings
	 	 	(2,679.9	)	 	 	(26.4	)	 	 	2,706.3	 	 	 	0.0	 	 	 	(3,560.9	)	 	 	(3,560.9	)
	Accumulated Other Comprehensive Income
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	(2.5	)	 	 	(2.5	)
	Treasury Stock
	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	0.0	 	 	 	(145.4	)	 	 	(145.4	)
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	TOTAL EQUITY
	 	 	268.3	 	 	 	27.6	 	 	 	(295.9	)	 	 	0.0	 	 	 	(641.1	)	 	 	(641.1	)
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	
	TOTAL LIABILITIES & EQUITY
	 	 	510.8	 	 	 	43.0	 	 	 	(379.0	)	 	 	174.8	 	 	 	1,812.2	 	 	 	1,987.0	 
	 	 	 	
	 	 	 	
		 	 	
	 	 	 	
		 	 	
		 	 	
	







Note 1: “Net Debt” includes Short-Term Bank Note, Other
Short-Term Debt, Bank Notes, Convertible Bonds and Other Long-Term
Debt; offset by Cash and Cash Equivalents, and Swap Liability.



	 	 	 
	
	 	2/2/2005 6:06 PM
	Unrestricted Group 093004 Balance Sheet.xls (Consolidating)	Cincinnati Bell, Inc. Confidential	Report #Consolidating



















	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category
	 	Description/Nature of Accrual
	 	Q4 ’04
	 	2005
	 	2006
	 	2007
	 	2008
	 	2009
	 	Total

	Ring Fence Availability
	 	 	Beginning Balance	 	 	 	49,100,000	 	 	 	32,631,000	 	 	 	20,268,579	 	 	 	16,168,579	 	 	 	13,568,579	 	 	 	13,558,5790	 	 	49,100,00	 
	Legal
	 	 	Subtotal	 	 	 	(800,000	)	 	 	(2,422,436	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	(3,222,436	)
	EPGN
	 	 	Accrued Capital	 	 	 	(3,100,000	)	 	 	(300,000	)	 	 	(300,000	)	 	 	(300,000	)	 	 	-	 	 	 	-      	 	 	(4,000,000	)
	Franchise Taxes
	 	 	Subtotal	 	 	 	(10,000	)	 	 	(100,000	)	 	 	(1,000,000	)	 	 	(100,000	)	 	 	(10,000	)	 	 	-      	 	 	(1,220,000	)
	Property Taxes
	 	 	Various States	 	 	 	(175,000	)	 	 	(500,000	)	 	 	(1,000,000	)	 	 	(400,000	)	 	 	-	 	 	 	 	 	 	(2,075,000	)
	Sales Taxes
	 	 	Various States	 	 	 	-	 	 	 	(8,000,000	)	 	 	(600,000	)	 	 	(600,000	)	 	 	-	 	 	 	-	 	 	(9,200,000	)
	Restructuring
	 	 	 	 	 	 	(334,000	)	 	 	(1,039,985	)	 	 	(1,200,000	)	 	 	(1,200,000	)	 	 	-	 	 	 	-     	 	 	(3,773,985	)
	Mutual Signal
	 	 	Est of amount due Global Crossing as 15% owner of Mutual Signal	 	 	 	(50,000	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	(50,000	)
	FIN 45 Liability
	 	 	Warranties & Reps associated with BCI Asset Sale to CIII	 	 	 	(2,000,000	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-      	 	 	(2,000,000	)
	Working Capital Settlement
	 	 	WC Settlement Payable to BRCOM	 	 	 	(10,000,000	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-  	 	 	  (10,000,000	)
	
	 	 	A Total Estimated Cash Payments For Period	 	 	 	(16,469,000	)	 	 	(12,362,421	)	 	 	(4,100,000	)	 	 	(2,600,000	)	 	 	(10,000	)	 	 	-	 	 	(35,541,421	)
	Ring Fence Availability
	 	 	Ending Balance	 	 	 	32,631,000	 	 	 	20,268,579	 	 	 	16,168,579	 	 	 	13,568,579	 	 	 	13,558,579	 	 	 	13,558,579	 	 	13,558,579	 






Note:  Difference between B and A represents the difference between management’s best estimated of actual cash to be paid against liabilities vs. book accruals per GAAP.