Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Entity Registrant Name | Windstream Holdings, Inc. | |
Entity Central Index Key | 1,282,266 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 96,114,653 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Windstream Services, LLC | ||
Entity Registrant Name | Windstream Services, LLC | |
Entity Central Index Key | 1,585,644 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
WINDSTREAM HOLDINGS, INC. CONSO
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues and sales: | ||||
Service revenues | $ 1,318.9 | $ 1,451.2 | $ 3,990.8 | $ 4,210.2 |
Product sales | 26 | 47.4 | 87.1 | 128.1 |
Total revenues and sales | 1,344.9 | 1,498.6 | 4,077.9 | 4,338.3 |
Costs and expenses: | ||||
Cost of services (exclusive of depreciation and amortization included below) | 677.5 | 703.9 | 2,013.5 | 2,069.1 |
Cost of products sold | 21.5 | 41.5 | 74.6 | 111.8 |
Selling, general and administrative | 190.1 | 215.8 | 590.8 | 656.5 |
Depreciation and amortization | 321 | 350.5 | 934 | 1,033 |
Merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 |
Restructuring charges | 2.5 | 5.3 | 12.8 | 15.7 |
Total costs and expenses | 1,215.5 | 1,320.1 | 3,636.2 | 3,960.6 |
Operating income | 129.4 | 178.5 | 441.7 | 377.7 |
Dividend income on CS&L common stock | 0 | 17.6 | 17.6 | 30.6 |
Other income (expense), net | 0.6 | (0.2) | (2.5) | 7.9 |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 0 | 15.2 | 0 |
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (35.8) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | (181.9) | 0 |
Interest expense | (216.4) | (230.2) | (653.5) | (588.8) |
Loss before income taxes | (108.6) | (26.7) | (381.4) | (208.4) |
Income tax benefit | (42.4) | (19.5) | (84.8) | (95.3) |
Net loss | $ (66.2) | $ (7.2) | $ (296.6) | $ (113.1) |
Basic and diluted loss per share: | ||||
Net loss | $ (0.72) | $ (0.08) | $ (3.19) | $ (1.16) |
WINDSTREAM HOLDINGS, INC. CONS3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net loss | $ (66.2) | $ (7.2) | $ (296.6) | $ (113.1) |
Available-for-sale securities: | ||||
Unrealized holding (loss) gain arising during the period | 0 | (200.4) | 156.1 | (309.7) |
Gain on disposal recognized in the period | 0 | 0 | (51.5) | 0 |
Other-than-temporary impairment loss recognized in the period | 0 | 0 | 181.9 | 0 |
Change in available-for-sale securities | 0 | (200.4) | 286.5 | (309.7) |
Interest rate swaps: | ||||
Unrealized loss on designated interest rate swaps | (5.9) | (25.4) | (17.5) | (13.1) |
Amortization of net unrealized losses on de-designated interest rate swaps | 0.8 | 2.9 | 3 | 10 |
Income tax benefit | 1.9 | 8.7 | 5.6 | 1.2 |
Change in interest rate swaps | (3.2) | (13.8) | (8.9) | (1.9) |
Postretirement and pension plans: | ||||
Change in net actuarial gain (loss) for employee benefit plans | 0.1 | 0 | 0.5 | (0.6) |
Plan curtailment | 0 | (3) | (5.5) | (16.4) |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0.1 | 0.2 | 0.2 | 0.7 |
Amortization of prior service credits | (0.3) | (0.8) | (0.9) | (3.4) |
Income tax benefit | 0 | 1.6 | 2.2 | 7.5 |
Change in postretirement and pension plans | (0.1) | (2) | (3.5) | (12.2) |
Other comprehensive (loss) income | (3.3) | (216.2) | 274.1 | (323.8) |
Comprehensive loss | $ (69.5) | $ (223.4) | $ (22.5) | $ (436.9) |
WINDSTREAM HOLDINGS, INC. CONS4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||||
Cash and cash equivalents | $ 61.4 | $ 31.3 | $ 97.2 | $ 27.8 |
Accounts receivable (less allowance for doubtful accounts of $29.3 and $33.1, respectively) | 649.7 | 643.9 | ||
Inventories | 80.3 | 79.5 | ||
Prepaid expenses and other | 129.6 | 120.6 | ||
Total current assets | 921 | 875.3 | ||
Goodwill | 4,213.6 | 4,213.6 | ||
Other intangibles, net | 1,365.3 | 1,504.7 | ||
Net property, plant and equipment | 5,238.8 | 5,279.8 | ||
Investment in CS&L common stock | 0 | 549.2 | ||
Other assets | 84.9 | 95.5 | ||
Total Assets | 11,823.6 | 12,518.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 13.4 | 5.9 | ||
Current portion of long-term lease obligations | 164.5 | 152.7 | ||
Accounts payable | 327.8 | 430.1 | ||
Advance payments and customer deposits | 183.9 | 193.9 | ||
Accrued taxes | 77.6 | 84.1 | ||
Accrued interest | 93.1 | 78.4 | ||
Other current liabilities | 288.1 | 322 | ||
Total current liabilities | 1,148.4 | 1,267.1 | ||
Long-term debt | 4,852.7 | 5,164.6 | ||
Long-term lease obligations | 4,875.7 | 5,000.4 | ||
Deferred income taxes | 199.7 | 287.4 | ||
Other liabilities | 496.8 | 492.2 | ||
Total liabilities | 11,573.3 | 12,211.7 | ||
Commitments and Contingencies (See Note 14) | ||||
Shareholders’ Equity: | ||||
Common stock, $0.0001 par value, 166.7 shares authorized, 96.1 and 96.7 shares issued and outstanding, respectively | 0 | 0 | ||
Additional paid-in capital | 569.3 | 602.9 | ||
Accumulated other comprehensive loss | (10.3) | (284.4) | ||
Accumulated deficit | (308.7) | (12.1) | ||
Total shareholders’ equity | 250.3 | 306.4 | ||
Total Liabilities and Shareholders’ Equity | $ 11,823.6 | $ 12,518.1 |
WINDSTREAM HOLDINGS, INC. CONS5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 29.3 | $ 33.1 |
Shareholders’ Equity: | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 166.7 | 166.7 |
Common stock, shares issued | 96.1 | 96.7 |
Common stock, shares outstanding | 96.1 | 96.7 |
WINDSTREAM HOLDINGS, INC. CONS6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (296.6) | $ (113.1) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 934 | 1,033 |
Provision for doubtful accounts | 33.1 | 37.1 |
Share-based compensation expense | 31.8 | 42.9 |
Deferred income taxes | (80) | (103.3) |
Net gain on disposal of investment in CS&L common stock | (15.2) | 0 |
Noncash portion of net loss on early extinguishment of debt | (51.9) | (15) |
Other-than-temporary impairment loss on investment in CS&L common stock | 181.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 3 | 10 |
Plan curtailment | (5.5) | (16.5) |
Other, net | 1.2 | (13) |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (35.9) | (58.9) |
Prepaid income taxes | (9.7) | 4.3 |
Prepaid expenses and other | 17.9 | (9.1) |
Accounts payable | (91.3) | (37.9) |
Accrued interest | 14.8 | 34.2 |
Accrued taxes | (6.4) | (2) |
Other current liabilities | 18.3 | 8.2 |
Other liabilities | (10.9) | (3.8) |
Other, net | (10.5) | (40.8) |
Net cash provided from operating activities | 622.1 | 756.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (753.4) | (744.4) |
Proceeds from the sale of property | 6.3 | 0 |
Grant funds received for broadband stimulus projects | 0 | 23.5 |
Network expansion funded by Connect America Fund - Phase I | 0 | (67.4) |
Change in restricted cash | 0 | 6.7 |
Other, net | (6.5) | 8.9 |
Net cash used in investing activities | (753.6) | (772.7) |
Cash Flows from Financing Activities: | ||
Dividends paid to shareholders | (44.1) | (354.1) |
Payment received from CS&L in spin-off | 0 | 1,035 |
Repayments of debt and swaps | (2,919.6) | (2,098.6) |
Proceeds of debt issuance | 3,340 | 1,620 |
Debt issuance costs | (12.3) | (4.3) |
Stock repurchases | (28.9) | (20) |
Payments under long-term lease obligations | (113.2) | (59.3) |
Payments under capital lease obligations | (53.1) | (24.7) |
Other, net | (7.2) | (8.2) |
Net cash provided from financing activities | 161.6 | 85.8 |
Increase in cash and cash equivalents | 30.1 | 69.4 |
Cash and Cash Equivalents: | ||
Beginning of period | 31.3 | 27.8 |
End of period | 61.4 | 97.2 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 629.3 | 545 |
Income taxes paid, net | $ 8.3 | $ 0.8 |
WINDSTREAM HOLDINGS, INC. CONS7
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2016 - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance at Dec. 31, 2015 | $ 306.4 | $ 602.9 | $ (284.4) | $ (12.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (296.6) | 0 | 0 | (296.6) |
Other comprehensive income (loss), net of tax: | ||||
Change in available-for-sale securities | 286.5 | 0 | 286.5 | 0 |
Change in postretirement and pension plans | (3.5) | 0 | (3.5) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 1.9 | 0 | 1.9 | 0 |
Change in designated interest rate swaps | (10.8) | 0 | (10.8) | 0 |
Comprehensive income (loss) | (22.5) | 0 | 274.1 | (296.6) |
Share-based compensation | 16.8 | 16.8 | 0 | 0 |
Stock options exercised | 0.5 | 0.5 | 0 | 0 |
Stock issued for management incentive compensation plans | 5.6 | 5.6 | 0 | 0 |
Stock issued to employee savings plan (See Note 5) | 24 | 24 | 0 | 0 |
Stock repurchases | (28.9) | (28.9) | 0 | 0 |
Taxes withheld on vested restricted stock and other | (8) | (8) | 0 | 0 |
Dividends of $.45 per share declared to shareholders | (43.6) | (43.6) | 0 | 0 |
Ending balance at Sep. 30, 2016 | $ 250.3 | $ 569.3 | $ (10.3) | $ (308.7) |
WINDSTREAM HOLDINGS, INC. CONS8
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) | 9 Months Ended |
Sep. 30, 2016$ / shares | |
Dividends, per share declared to shareholders | $ 0.45 |
WINDSTREAM SERVICES, LLC CONSOL
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues and sales: | ||||
Service revenues | $ 1,318.9 | $ 1,451.2 | $ 3,990.8 | $ 4,210.2 |
Product sales | 26 | 47.4 | 87.1 | 128.1 |
Total revenues and sales | 1,344.9 | 1,498.6 | 4,077.9 | 4,338.3 |
Costs and expenses: | ||||
Cost of services (exclusive of depreciation and amortization included below) | 677.5 | 703.9 | 2,013.5 | 2,069.1 |
Cost of products sold | 21.5 | 41.5 | 74.6 | 111.8 |
Selling, general and administrative | 190.1 | 215.8 | 590.8 | 656.5 |
Depreciation and amortization | 321 | 350.5 | 934 | 1,033 |
Merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 |
Restructuring charges | 2.5 | 5.3 | 12.8 | 15.7 |
Total costs and expenses | 1,215.5 | 1,320.1 | 3,636.2 | 3,960.6 |
Operating income | 129.4 | 178.5 | 441.7 | 377.7 |
Dividend income on CS&L common stock | 0 | 17.6 | 17.6 | 30.6 |
Other income (expense), net | 0.6 | (0.2) | (2.5) | 7.9 |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 0 | 15.2 | 0 |
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (35.8) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | (181.9) | 0 |
Interest expense | (216.4) | (230.2) | (653.5) | (588.8) |
Loss before income taxes | (108.6) | (26.7) | (381.4) | (208.4) |
Income tax benefit | (42.4) | (19.5) | (84.8) | (95.3) |
Net loss | (66.2) | (7.2) | (296.6) | (113.1) |
Windstream Services, LLC | ||||
Revenues and sales: | ||||
Service revenues | 1,318.9 | 1,451.2 | 3,990.8 | 4,210.2 |
Product sales | 26 | 47.4 | 87.1 | 128.1 |
Total revenues and sales | 1,344.9 | 1,498.6 | 4,077.9 | 4,338.3 |
Costs and expenses: | ||||
Cost of services (exclusive of depreciation and amortization included below) | 677.5 | 703.9 | 2,013.5 | 2,069.1 |
Cost of products sold | 21.5 | 41.5 | 74.6 | 111.8 |
Selling, general and administrative | 189.8 | 215.5 | 589.4 | 654.9 |
Depreciation and amortization | 321 | 350.5 | 934 | 1,033 |
Merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 |
Restructuring charges | 2.5 | 5.3 | 12.8 | 15.7 |
Total costs and expenses | 1,215.2 | 1,319.8 | 3,634.8 | 3,959 |
Operating income | 129.7 | 178.8 | 443.1 | 379.3 |
Dividend income on CS&L common stock | 0 | 17.6 | 17.6 | 30.6 |
Other income (expense), net | 0.6 | (0.2) | (2.5) | 7.9 |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 0 | 15.2 | 0 |
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (35.8) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | (181.9) | 0 |
Interest expense | (216.4) | (230.2) | (653.5) | (588.8) |
Loss before income taxes | (108.3) | (26.4) | (380) | (206.8) |
Income tax benefit | (42.3) | (19.4) | (84.3) | (94.7) |
Net loss | $ (66) | $ (7) | $ (295.7) | $ (112.1) |
WINDSTREAM SERVICES, LLC CONS10
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net loss | $ (66.2) | $ (7.2) | $ (296.6) | $ (113.1) |
Available-for-sale securities: | ||||
Unrealized holding (loss) gain arising during the period | 0 | (200.4) | 156.1 | (309.7) |
Gain on disposal recognized in the period | 0 | 0 | (51.5) | 0 |
Other-than-temporary impairment loss recognized in the period | 0 | 0 | 181.9 | 0 |
Change in available-for-sale securities | 0 | (200.4) | 286.5 | (309.7) |
Interest rate swaps: | ||||
Unrealized loss on designated interest rate swaps | (5.9) | (25.4) | (17.5) | (13.1) |
Amortization of net unrealized losses on de-designated interest rate swaps | 0.8 | 2.9 | 3 | 10 |
Income tax benefit | 1.9 | 8.7 | 5.6 | 1.2 |
Change in interest rate swaps | (3.2) | (13.8) | (8.9) | (1.9) |
Postretirement and pension plans: | ||||
Change in net actuarial gain (loss) for employee benefit plans | 0.1 | 0 | 0.5 | (0.6) |
Plan curtailment | 0 | (3) | (5.5) | (16.4) |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0.1 | 0.2 | 0.2 | 0.7 |
Amortization of prior service credits | (0.3) | (0.8) | (0.9) | (3.4) |
Income tax benefit | 0 | 1.6 | 2.2 | 7.5 |
Change in postretirement and pension plans | (0.1) | (2) | (3.5) | (12.2) |
Other comprehensive (loss) income | (3.3) | (216.2) | 274.1 | (323.8) |
Comprehensive loss | (69.5) | (223.4) | (22.5) | (436.9) |
Windstream Services, LLC | ||||
Net loss | (66) | (7) | (295.7) | (112.1) |
Available-for-sale securities: | ||||
Unrealized holding (loss) gain arising during the period | 0 | (200.4) | 156.1 | (309.7) |
Gain on disposal recognized in the period | 0 | 0 | (51.5) | 0 |
Other-than-temporary impairment loss recognized in the period | 0 | 0 | 181.9 | 0 |
Change in available-for-sale securities | 0 | (200.4) | 286.5 | (309.7) |
Interest rate swaps: | ||||
Unrealized loss on designated interest rate swaps | (5.9) | (25.4) | (17.5) | (13.1) |
Amortization of net unrealized losses on de-designated interest rate swaps | 0.8 | 2.9 | 3 | 10 |
Income tax benefit | 1.9 | 8.7 | 5.6 | 1.2 |
Change in interest rate swaps | (3.2) | (13.8) | (8.9) | (1.9) |
Postretirement and pension plans: | ||||
Change in net actuarial gain (loss) for employee benefit plans | 0.1 | 0 | 0.5 | (0.6) |
Plan curtailment | 0 | (3) | (5.5) | (16.4) |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0.1 | 0.2 | 0.2 | 0.7 |
Amortization of prior service credits | (0.3) | (0.8) | (0.9) | (3.4) |
Income tax benefit | 0 | 1.6 | 2.2 | 7.5 |
Change in postretirement and pension plans | (0.1) | (2) | (3.5) | (12.2) |
Other comprehensive (loss) income | (3.3) | (216.2) | 274.1 | (323.8) |
Comprehensive loss | $ (69.3) | $ (223.2) | $ (21.6) | $ (435.9) |
WINDSTREAM SERVICES, LLC CONS11
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||||
Cash and cash equivalents | $ 61.4 | $ 31.3 | $ 97.2 | $ 27.8 |
Accounts receivable (less allowance for doubtful accounts of $29.3 and $33.1, respectively) | 649.7 | 643.9 | ||
Inventories | 80.3 | 79.5 | ||
Prepaid expenses and other | 129.6 | 120.6 | ||
Total current assets | 921 | 875.3 | ||
Goodwill | 4,213.6 | 4,213.6 | ||
Other intangibles, net | 1,365.3 | 1,504.7 | ||
Net property, plant and equipment | 5,238.8 | 5,279.8 | ||
Investment in CS&L common stock | 0 | 549.2 | ||
Other assets | 84.9 | 95.5 | ||
Total Assets | 11,823.6 | 12,518.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 13.4 | 5.9 | ||
Current portion of long-term lease obligations | 164.5 | 152.7 | ||
Accounts payable | 327.8 | 430.1 | ||
Advance payments and customer deposits | 183.9 | 193.9 | ||
Accrued taxes | 77.6 | 84.1 | ||
Accrued interest | 93.1 | 78.4 | ||
Other current liabilities | 288.1 | 322 | ||
Total current liabilities | 1,148.4 | 1,267.1 | ||
Long-term debt | 4,852.7 | 5,164.6 | ||
Long-term lease obligations | 4,875.7 | 5,000.4 | ||
Deferred income taxes | 199.7 | 287.4 | ||
Other liabilities | 496.8 | 492.2 | ||
Total liabilities | 11,573.3 | 12,211.7 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Additional paid-in capital | 569.3 | 602.9 | ||
Accumulated other comprehensive loss | (10.3) | (284.4) | ||
Accumulated deficit | (308.7) | (12.1) | ||
Total member equity | 250.3 | 306.4 | ||
Total Liabilities and Member Equity | 11,823.6 | 12,518.1 | ||
Windstream Services, LLC | ||||
Current Assets: | ||||
Cash and cash equivalents | 61.4 | 31.3 | $ 97.2 | $ 27.8 |
Accounts receivable (less allowance for doubtful accounts of $29.3 and $33.1, respectively) | 649.7 | 643.9 | ||
Inventories | 80.3 | 79.5 | ||
Prepaid expenses and other | 129.6 | 120.6 | ||
Total current assets | 921 | 875.3 | ||
Goodwill | 4,213.6 | 4,213.6 | ||
Other intangibles, net | 1,365.3 | 1,504.7 | ||
Net property, plant and equipment | 5,238.8 | 5,279.8 | ||
Investment in CS&L common stock | 0 | 549.2 | ||
Other assets | 84.9 | 95.5 | ||
Total Assets | 11,823.6 | 12,518.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 13.4 | 5.9 | ||
Current portion of long-term lease obligations | 164.5 | 152.7 | ||
Accounts payable | 327.8 | 430.1 | ||
Advance payments and customer deposits | 183.9 | 193.9 | ||
Payable to Windstream Holdings, Inc. | 14.9 | 15.1 | ||
Accrued taxes | 77.6 | 84.1 | ||
Accrued interest | 93.1 | 78.4 | ||
Other current liabilities | 273.2 | 306.9 | ||
Total current liabilities | 1,148.4 | 1,267.1 | ||
Long-term debt | 4,852.7 | 5,164.6 | ||
Long-term lease obligations | 4,875.7 | 5,000.4 | ||
Deferred income taxes | 199.7 | 287.4 | ||
Other liabilities | 496.8 | 492.2 | ||
Total liabilities | 11,573.3 | 12,211.7 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Additional paid-in capital | 565.8 | 600.3 | ||
Accumulated other comprehensive loss | (10.3) | (284.4) | ||
Accumulated deficit | (305.2) | (9.5) | ||
Total member equity | 250.3 | 306.4 | ||
Total Liabilities and Member Equity | $ 11,823.6 | $ 12,518.1 |
WINDSTREAM SERVICES, LLC CONS12
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance for doubtful accounts | $ 29.3 | $ 33.1 |
Windstream Services, LLC | ||
Accounts receivable, allowance for doubtful accounts | $ 29.3 | $ 33.1 |
WINDSTREAM SERVICES, LLC CONS13
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (296.6) | $ (113.1) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 934 | 1,033 |
Provision for doubtful accounts | 33.1 | 37.1 |
Share-based compensation expense | 31.8 | 42.9 |
Deferred income taxes | (80) | (103.3) |
Net gain on disposal of investment in CS&L common stock | (15.2) | 0 |
Noncash portion of net loss on early extinguishment of debt | (51.9) | (15) |
Other-than-temporary impairment loss on investment in CS&L common stock | 181.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 3 | 10 |
Plan curtailment | (5.5) | (16.5) |
Other, net | 1.2 | (13) |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (35.9) | (58.9) |
Prepaid income taxes | (9.7) | 4.3 |
Prepaid expenses and other | 17.9 | (9.1) |
Accounts payable | (91.3) | (37.9) |
Accrued interest | 14.8 | 34.2 |
Accrued taxes | (6.4) | (2) |
Other current liabilities | 18.3 | 8.2 |
Other liabilities | (10.9) | (3.8) |
Other, net | (10.5) | (40.8) |
Net cash provided from operating activities | 622.1 | 756.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (753.4) | (744.4) |
Proceeds from the sale of property | 6.3 | 0 |
Grant funds received for broadband stimulus projects | 0 | 23.5 |
Network expansion funded by Connect America Fund - Phase I | 0 | (67.4) |
Change in restricted cash | 0 | 6.7 |
Other, net | (6.5) | 8.9 |
Net cash used in investing activities | (753.6) | (772.7) |
Cash Flows from Financing Activities: | ||
Payment received from CS&L in spin-off | 0 | 1,035 |
Repayments of debt and swaps | (2,919.6) | (2,098.6) |
Proceeds of debt issuance | 3,340 | 1,620 |
Debt issuance costs | (12.3) | (4.3) |
Payments under long-term lease obligations | (113.2) | (59.3) |
Payments under capital lease obligations | (53.1) | (24.7) |
Other, net | (7.2) | (8.2) |
Net cash provided from financing activities | 161.6 | 85.8 |
Increase in cash and cash equivalents | 30.1 | 69.4 |
Cash and Cash Equivalents: | ||
Beginning of period | 31.3 | 27.8 |
End of period | 61.4 | 97.2 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 629.3 | 545 |
Income taxes paid, net | 8.3 | 0.8 |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net loss | (295.7) | (112.1) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 934 | 1,033 |
Provision for doubtful accounts | 33.1 | 37.1 |
Share-based compensation expense | 31.8 | 42.9 |
Deferred income taxes | (80) | (103.3) |
Net gain on disposal of investment in CS&L common stock | (15.2) | 0 |
Noncash portion of net loss on early extinguishment of debt | (51.9) | (15) |
Other-than-temporary impairment loss on investment in CS&L common stock | 181.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 3 | 10 |
Plan curtailment | (5.5) | (16.5) |
Other, net | 1.2 | (13) |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (35.9) | (58.9) |
Prepaid income taxes | (9.7) | 4.3 |
Prepaid expenses and other | 17.9 | (9.1) |
Accounts payable | (91.3) | (37.9) |
Accrued interest | 14.8 | 34.2 |
Accrued taxes | (6.4) | (2) |
Other current liabilities | 18.3 | 8.2 |
Other liabilities | (10.9) | (3.8) |
Other, net | (10.5) | (40.8) |
Net cash provided from operating activities | 623 | 757.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (753.4) | (744.4) |
Proceeds from the sale of property | 6.3 | 0 |
Grant funds received for broadband stimulus projects | 0 | 23.5 |
Network expansion funded by Connect America Fund - Phase I | 0 | (67.4) |
Change in restricted cash | 0 | 6.7 |
Other, net | (6.5) | 8.9 |
Net cash used in investing activities | (753.6) | (772.7) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (73.9) | (375.1) |
Payment received from CS&L in spin-off | 0 | 1,035 |
Repayments of debt and swaps | (2,919.6) | (2,098.6) |
Proceeds of debt issuance | 3,340 | 1,620 |
Debt issuance costs | (12.3) | (4.3) |
Payments under long-term lease obligations | (113.2) | (59.3) |
Payments under capital lease obligations | (53.1) | (24.7) |
Other, net | (7.2) | (8.2) |
Net cash provided from financing activities | 160.7 | 84.8 |
Increase in cash and cash equivalents | 30.1 | 69.4 |
Cash and Cash Equivalents: | ||
Beginning of period | 31.3 | 27.8 |
End of period | 61.4 | 97.2 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 629.3 | 545 |
Income taxes paid, net | $ 8.3 | $ 0.8 |
WINDSTREAM SERVICES, LLC CONS14
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENT OF MEMBER EQUITY (UNAUDITED) Statement - 9 months ended Sep. 30, 2016 - USD ($) $ in Millions | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Windstream Services, LLC | Windstream Services, LLCAdditional Paid-In Capital | Windstream Services, LLCAccumulated Other Comprehensive Loss | Windstream Services, LLCAccumulated Deficit |
Beginning balance at Dec. 31, 2015 | $ 306.4 | $ 602.9 | $ (284.4) | $ (12.1) | $ 306.4 | $ 600.3 | $ (284.4) | $ (9.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (296.6) | 0 | 0 | (296.6) | (295.7) | 0 | 0 | (295.7) |
Other comprehensive income (loss), net of tax: | ||||||||
Change in available-for-sale securities | 286.5 | 0 | 286.5 | 0 | 286.5 | 0 | 286.5 | 0 |
Change in postretirement and pension plans | (3.5) | 0 | (3.5) | 0 | (3.5) | 0 | (3.5) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 1.9 | 0 | 1.9 | 0 | 1.9 | 0 | 1.9 | 0 |
Change in designated interest rate swaps | (10.8) | 0 | (10.8) | 0 | (10.8) | 0 | (10.8) | 0 |
Comprehensive income (loss) | (22.5) | 0 | 274.1 | (296.6) | (21.6) | 0 | 274.1 | (295.7) |
Share-based compensation | 16.8 | 16.8 | 0 | 0 | 16.8 | 16.8 | 0 | 0 |
Stock options exercised | 0.5 | 0.5 | 0 | 0 | 0.5 | 0.5 | 0 | 0 |
Stock issued for management incentive compensation plans | 5.6 | 5.6 | 0 | 0 | 5.6 | 5.6 | 0 | 0 |
Stock issued to employee savings plan (See Note 5) | 24 | 24 | 0 | 0 | 24 | 24 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (8) | (8) | 0 | 0 | (8) | (8) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (73.4) | (73.4) | 0 | 0 | ||||
Ending balance at Sep. 30, 2016 | $ 250.3 | $ 569.3 | $ (10.3) | $ (308.7) | $ 250.3 | $ 565.8 | $ (10.3) | $ (305.2) |
Preparation of Interim Financia
Preparation of Interim Financial Statements: | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Basis of Presentation and Recently Issued Accounting Pronouncements: | Preparation of Interim Financial Statements: In these consolidated financial statements, unless the context requires otherwise, the use of the terms “Windstream,” “we,” “us” or “our” shall refer to Windstream Holdings, Inc. and its subsidiaries, including Windstream Services, LLC, and the term “Windstream Services” shall refer to Windstream Services, LLC and its subsidiaries. Organizational Structure –Windstream Holdings, Inc. (“Windstream Holdings”) is a publicly traded holding company and the parent of Windstream Services, LLC (“Windstream Services”). Windstream Holdings common stock trades on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol “WIN”. Windstream Holdings owns a 100 percent interest in Windstream Services. Windstream Services and its guarantor subsidiaries are the sole obligors of all outstanding debt obligations and, as a result also file periodic reports with the Securities and Exchange Commission (“SEC”). Windstream Holdings is not a guarantor of nor subject to the restrictive covenants included in any of Windstream Services’ debt agreements. The Windstream Holdings board of directors and officers oversee both companies. Description of Business – We are a leading provider of advanced network communications and technology solutions for consumers, businesses, enterprise organizations and wholesale customers across the United States. We offer bundled services, including broadband, security solutions, voice and digital television to consumers. We also provide data, cloud solutions, unified communications and managed services to business and enterprise clients. We supply core transport solutions on a local and long-haul fiber-optic network spanning approximately 129,000 miles. Consumer service revenues are generated from the provisioning of high-speed Internet, voice and video services to consumers. Small business service revenues include revenues from integrated voice and data services, advanced data and traditional voice and long-distance services provided to small business customers. Wholesale revenues include revenues from other communications services providers for special access circuits and fiber connections, voice and data transport services, and revenues from the reselling of our services. Enterprise service revenues include revenues from integrated voice and data services, advanced data, traditional voice and long-distance services provided to enterprise customers. Regulatory revenues include switched access revenues, federal and state Universal Service Fund (“USF”) revenues and amounts received from Connect America Fund - Phase II. Other service revenues include USF surcharge revenues, other miscellaneous services and consumer revenues generated in markets where we lease the connection to the customer premise. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2015 , was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. In our opinion, these financial statements reflect all adjustments that are necessary for a fair statement of results of operations and financial condition for the interim periods presented including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 , which was filed with the SEC on February 25, 2016 . Windstream Holdings and its domestic subsidiaries, including Windstream Services, file a consolidated federal income tax return. As such, Windstream Services and its subsidiaries are not separate taxable entities for federal and certain state income tax purposes. In instances when Windstream Services does not file a separate return, income taxes as presented within the accompanying consolidated financial statements attribute current and deferred income taxes of Windstream Holdings to Windstream Services and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method. Income tax provisions presented for Windstream Services and its subsidiaries are prepared under the “separate return method.” The separate return method represents a hypothetical computation assuming that the reported revenue and expenses of Windstream Services and its subsidiaries were incurred by separate taxable entities. The preparation of financial statements, in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. 1. Preparation of Interim Financial Statements, Continued: There are no significant differences between the consolidated results of operations, financial condition, and cash flows of Windstream Holdings and those of Windstream Services other than for certain expenses incurred directly by Windstream Holdings principally consisting of audit, legal and board of director fees, NASDAQ listing fees, other shareholder-related costs, income taxes, common stock activity, and payables from Windstream Services to Windstream Holdings. Earnings per share data has not been presented for Windstream Services, because that entity has not issued publicly held common stock as defined in accordance with U.S. GAAP. Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Services. Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact net loss or comprehensive loss. Recently Issued Authoritative Guidance Revenue Recognition – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard outlines a single comprehensive revenue recognition model for entities to follow in accounting for revenue from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. ASU 2014-09 may be adopted by applying the provisions of the new standard on a retrospective basis to all periods presented in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect adjustment in the year of adoption. When issued, ASU 2014-09 was to be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption was not permitted. In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year to December 15, 2017 for annual reporting periods beginning after that date, or January 1, 2018, for calendar companies like Windstream. Entities are permitted to early adopt the standard, but not before the original effective date of December 15, 2016. We are in the process of determining the method of adoption and assessing the impact the new standard will have on our consolidated financial statements. We expect to adopt this standard effective January 1, 2018. In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09. In conjunction with our assessment of ASU 2014-09, we are currently evaluating the impacts of this new guidance. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. In May 2016, the FASB also issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-10 provides more detailed guidance with respect to identifying performance obligations and accounting for licensing arrangements, including intellectual property licenses, royalties, license restrictions and renewals. ASU 2016-11 rescinds several SEC Staff announcements that are codified in Topic 605: Revenue Recognition, including, among other items, guidance relating to accounting for consideration given by a vendor to a customer, as well as accounting for shipping and handling fees and freight services. ASU 2016-12 provides clarification to Topic 606 on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. ASU 2016-12 also clarifies that an entity retrospectively applying the guidance in Topic 606 is not required to disclose the effect of the accounting change in the period of adoption. The effective date and transition requirements for each of these amendments are the same as the effective date and transition requirements of ASU 2014-09. In conjunction with our assessment of ASU 2014-09, we are currently evaluating the impacts that these amendments will have on our consolidated financial statements. 1. Preparation of Interim Financial Statements, Continued: Fair Value Measurement Disclosures – In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value Per Share (or Its Equivalent), which amends certain fair value measurement disclosures. The standard removes the requirement to categorize within the fair value hierarchy investments for which fair value is measured using the net asset value per share practical expedient and also removes certain related disclosure requirements. ASU 2015-07 is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 31, 2015, with early adoption permitted. Adoption of ASU 2015-07 will impact certain annual disclosures related to our qualified pension plan assets, but otherwise is not expected to have a material impact on our consolidated financial statements. Valuation of Inventory – In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The updated guidance requires that an entity should measure inventory valued using a first-in, first-out or average cost method at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 should be applied on a prospective basis and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We do not expect that the adoption of ASU 2015-11 will have a material impact to our consolidated results of operations, financial position or cash flows. Leases – In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require that virtually all lease arrangements that do not meet the criteria of a short-term lease be presented on the lessee’s balance sheet by recording a right-of-use asset and a lease liability equal to the present value of the related future lease payments. The income statement impacts of the leases will depend on the nature of the leasing arrangement and will be similar to existing accounting for operating and capital leases. The new standard does not substantially change the accounting for lessors. The new standard will also require additional disclosures regarding an entity’s leasing arrangements and will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. Derivatives and Hedging – In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We do not expect that the adoption of ASU 2016-05 will have a material impact on our consolidated financial statements. Employee Share-Based Payment Accountin g – In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the new guidance all excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, should be recognized as income tax expense or benefit in the income statement, eliminating the notion of the APIC pool. The excess tax benefits will be classified as operating activities along with other income tax cash flows rather than financing activities in the statement of cash flows. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. ASU 2016-19 also allows entities to elect to either estimate the total number of awards that are expected to vest or account for forfeitures when they occur. Additionally, ASU 2016-09 clarifies that cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements should be presented as a financing activity in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. 1. Preparation of Interim Financial Statements, Continued: Financial Instruments - Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This new standard also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using a modified retrospective transition approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. Statement of Cash Flows – In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard provides guidance on how certain cash receipts and cash payments should be presented and classified in the statement of cash flows, including among others, debt prepayment and extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and distributions received from equity method investees. The standard also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use of the underlying cash flows. ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated statement of cash flows. |
Long-term Debt and Lease Obliga
Long-term Debt and Lease Obligations: Long-term Debt and Lease Obligations: (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Long-term Debt: Windstream Holdings has no debt obligations. All debt, including the senior secured credit facility described below, have been incurred by Windstream Services and its subsidiaries. Windstream Holdings is neither a guarantor of nor subject to the restrictive covenants imposed by such debt. Long-term debt was as follows at: (Millions) September 30, December 31, Issued by Windstream Services: Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 $ 573.8 $ 578.2 Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) 747.0 — Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 625.0 300.0 Debentures and notes, without collateral: 2017 Notes – 7.875%, due November 1, 2017 — 904.1 2020 Notes – 7.750%, due October 15, 2020 700.0 700.0 2021 Notes – 7.750%, due October 1, 2021 809.3 920.4 2022 Notes – 7.500%, due June 1, 2022 441.2 485.9 2023 Notes – 7.500%, due April 1, 2023 343.5 540.1 2023 Notes – 6.375%, due August 1, 2023 585.7 700.0 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (b) 100.0 100.0 (Discount) premium on long-term debt, net (c) (5.9 ) 4.6 Unamortized debt issuance costs (c) (53.5 ) (62.8 ) 4,866.1 5,170.5 Less current maturities (13.4 ) (5.9 ) Total long-term debt $ 4,852.7 $ 5,164.6 2. Long-term Debt, Continued: (a) If the maturity of the revolving line of credit is not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan will be April 24, 2020; provided further, if the 2020 Notes have not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan will be July 15, 2020. (b) These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. (c) The net (discount) premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. Senior Secured Credit Facility - On March 29, 2016, Windstream Services executed an incremental amendment to its existing senior secured credit facility to provide for the issuance of an aggregate principal amount $600.0 million term loan under Tranche B6 due March 29, 2021, the proceeds of which were used to repurchase $441.1 million of outstanding 7.875 percent notes due November 1, 2017 (the “2017 Notes”) pursuant to a tender offer and to repay other debt obligations of Windstream Services along with related fees and expenses. The Tranche B6 term loan was issued at a discount of $15.0 million . Debt issuance costs associated with the Tranche B6 borrowings were $10.7 million , which were capitalized and will be amortized over the life of the term loan. On September 30, 2016, Windstream Services repriced at par $597.0 million of borrowings outstanding under Tranche B6 and issued at par an incremental $150.0 million of borrowings under Tranche B6. In connection with the repricing, Windstream Services incurred $6.7 million in arrangement, legal and other fees. Based on an analysis of participating creditors, Windstream Services concluded that a portion of the repricing transaction should be accounted for as a new debt issuance, a portion as a debt modification, and the remainder as a debt extinguishment. As a result, $0.6 million of the arrangement, legal and other fees were recorded as debt issuance costs, with the remaining $6.1 million charged to interest expense in accordance with debt modification accounting. At the time of the repricing transaction, unamortized debt issuance and discount related to the original issuance of Tranche B6 term loan totaled $24.4 million , of which $3.1 million were included in the loss on debt extinguishment recognized in the third quarter of 2016, while the remaining $21.3 million continue to be deferred and amortized to interest expense over the remaining life of the term loan in accordance with debt modification accounting. On April 24, 2015, Windstream Services had previously amended its existing senior secured credit facility to include a revolving line of credit in an aggregate principal amount of $1,250.0 million and Tranche B5 term loan. The amended credit facility provides that Windstream Services may seek to obtain incremental revolving or term loans in an unlimited amount subject to maintaining a maximum secured leverage ratio and other customary conditions, including obtaining commitments and pro forma compliance with financial maintenance covenants consisting of a maximum debt to consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio and a minimum interest coverage ratio. In addition, Windstream Services may request extensions of the maturity date under any of its existing revolving or term loan facilities. Interest rates applicable to the Tranche B5 term loan are, at Windstream Services’ option, equal to either a base rate plus a margin of 1.75 percent per annum or London Interbank Offered Rate (“LIBOR”) plus a margin of 2.75 percent per annum. LIBOR and the base rate for the Tranche B5 term loan shall at no time be less than 0.75 percent and 1.75 percent , respectively. As a result of the September 30, 2016 repricing discussed above, interest rates applicable to the Tranche B6 decreased 1.00 percent from LIBOR plus 5.00 percent per annum to LIBOR plus 4.00 percent per annum. Windstream Services retained the option to have interest on Tranche B6 be equal to a base rate plus a margin of 4.00 percent per annum. LIBOR and the base rate for the Tranche B6 term loan shall at no time be less than 0.75 percent and 4.00 percent , respectively. Tranche B5 and B6 term loans made under the credit facility are subject to quarterly amortization payments in an aggregate amount equal to 0.25 percent of the initial principal amount of such term loans, with the remaining balance payable on August 8, 2019 and March 29, 2021, respectively. The senior secured credit facility is guaranteed, jointly and severally, by certain of Windstream Services’ wholly owned subsidiaries. 2. Long-term Debt, Continued: Revolving line of credit - As a result of the April 24, 2015 amendment to the credit facility, the maturity date of the revolving line of credit was extended to April 24, 2020. Windstream Services may obtain revolving loans and may issue up to $30.0 million of letters of credit, which upon issuance reduce the amount available for other extensions of credit. Accordingly, the total amount outstanding under the letters of credit and the indebtedness incurred under the revolving line of credit may not exceed $1,250.0 million . Borrowings under the revolving line of credit may be used for permitted acquisitions, working capital and other general corporate purposes of Windstream Services and its subsidiaries. Windstream Services will pay a commitment fee on the unused portion of the commitments under the revolving credit facility that will range from 0.40 percent to 0.50 percent per annum, depending on the debt to consolidated EBITDA ratio of Windstream Services and its subsidiaries. Revolving loans made under the credit facility are not subject to interim amortization and such loans are not required to be repaid prior to April 24, 2020, other than to the extent the outstanding borrowings exceed the aggregate commitments under the revolving credit facility. Interest rates applicable to loans under the revolving line of credit are, at Windstream Services’ option, equal to either a base rate plus a margin ranging from 0.25 percent to 1.00 percent per annum or LIBOR plus a margin ranging from 1.25 percent to 2.00 percent per annum, based on the debt to consolidated EBITDA ratio of Windstream Services and its subsidiaries. During the first nine months of 2016 , Windstream Services borrowed $2,605.0 million under the revolving line of credit in its senior secured credit facility and retired $2,280.0 million of these borrowings through September 30, 2016 . Considering letters of credit of $24.2 million , the amount available for borrowing under the revolving line of credit was $600.8 million at September 30, 2016 . During the first nine months of 2016 , the variable interest rate on the revolving line of credit ranged from 2.25 percent to 4.50 percent , and the weighted average rate on amounts outstanding was 2.54 percent during the period. Comparatively, the variable interest rate ranged from 2.19 percent to 4.50 percent during the first nine months of 2015 , with a weighted average rate on amounts outstanding during the period of 2.44 percent . Completion of Debt-for-Equity Exchange - In connection with the spin-off of certain telecommunications network assets, including fiber and copper networks and other real estate, into an independent, publicly-traded real estate investment trust (“REIT”), Communications Sales & Leasing, Inc. (“CS&L”), completed on April 24, 2015, Windstream Services retained a passive ownership interest in approximately 19.6 percent of the common stock of CS&L. In two separate transactions completed in June 2016, Windstream Services transferred all of its shares of CS&L common stock to its bank creditors in exchange for the retirement of $672.0 million of aggregate borrowings outstanding under its revolving line of credit and to satisfy transaction-related expenses. In completing the debt for equity exchange, Windstream Services recognized a net gain on the disposal of the CS&L common stock (see Note 9). Debentures and Notes Repaid in 2016 2017 Notes - On September 30, 2016, Windstream Services redeemed the remaining $369.5 million aggregate principal amount outstanding of its 7.875 percent senior unsecured notes due November 1, 2017, (the “2017 Notes”) at a redemption price of $396.4 million , which included a premium payable to creditors of $26.9 million . At the time of redemption, there was $2.7 million in unamortized net discount and debt issuance costs related to these notes. During the first nine months of 2016, Windstream Services also repurchased $93.5 million aggregate principal amount of the 2017 Notes at a repurchase price of $97.8 million , including accrued and unpaid interest, under a debt repurchase program authorized by Windstream Services’ board of directors. In addition, on March 29, 2016, Windstream Services repurchased $441.1 million aggregate principal amount of the 2017 Notes for total consideration of $477.5 million , plus accrued interest, pursuant to a cash tender offer. Under the tender offer, Windstream Services paid total consideration of $1,082.50 per $1,000 principal amount of the 2017 Notes, which included a $30 early tender payment, plus accrued and unpaid interest. At the time of the repurchases, there was $5.7 million in unamortized net discount and debt issuance costs related to the repurchased notes. Proceeds from the issuance of the Tranche B6 term loan and available borrowings under the amended revolving line of credit were used to fund the redemption and repurchases of the 2017 Notes, which were accounted for as debt extinguishments. 2. Long-term Debt, Continued: Partial Repurchase of Senior Notes - Pursuant to the debt repurchase program discussed above, during the first nine months of 2016, Windstream Services also repurchased in the open market $466.8 million aggregate principal amount of its senior unsecured notes consisting of the following: • $111.1 million aggregate principal amount of 7.750 percent senior unsecured notes due October 1, 2021 , (the “2021 Notes”), at a repurchase price of $93.7 million , including accrued and unpaid interest; • $44.8 million aggregate principal amount of 7.500 percent senior unsecured notes due June 1, 2022 , (the “2022 Notes”), at a repurchase price of $36.2 million , including accrued and unpaid interest; and • $196.6 million aggregate principal amount of 7.500 percent senior unsecured notes due April 1, 2023 and $114.3 million aggregate principal amount of 6.375 percent senior unsecured notes due August 1, 2023 , (collectively the “2023 Notes”) at a repurchase price of $168.5 million and $99.6 million , including accrued and unpaid interest, respectively. The repurchases were funded utilizing available borrowings under the amended revolving line of credit. At the time of repurchase, there was $5.3 million in unamortized premium and debt issuance costs related to the repurchased notes. The partial repurchases were accounted for under the extinguishment method of accounting, and as a result, Windstream Services recognized a net gain on the early extinguishment of these debt obligations. Debentures and Notes Repaid in 2015 During the third quarter of 2015, Windstream Services repurchased in the open market an aggregate principal amount of $253.7 million of its 2017, 2021, 2022 and 2023 Notes. At the time of repurchase, there was $3.3 million in unamortized net discount and debt issuance costs related to the repurchased notes. The partial repurchase was accounted for under the extinguishment method of accounting, and as a result, Windstream Services recognized a total pretax gain of $7.6 million during the third quarter of 2015. 2018 Notes - On May 27, 2015, Windstream Services redeemed all of its $400.0 million aggregate principal amount of 8.125 percent senior unsecured notes due September 1, 2018 (the “2018 Notes”), at a redemption price payable in cash equal to $1,040.63 per $1,000 principal amount of the notes, plus accrued and unpaid interest. At the time of redemption, there was $1.4 million and $4.0 million in unamortized discount and debt issuance costs, respectively, related to the 2018 Notes. PAETEC 2018 - On May 27, 2015, PAETEC Holding, LLC (“PAETEC”), a direct, wholly-owned subsidiary of Windstream Services, redeemed all $450.0 million of the outstanding aggregate principal amount of 9.875 percent notes due 2018 (the “PAETEC 2018 Notes”), at a redemption price payable in cash equal to $1,049.38 per $1,000 principal amount of the notes, plus accrued and unpaid interest. At the time of redemption, there was $16.9 million in unamortized premium related to the PAETEC 2018 Notes. Cinergy Communications Company - On April 24, 2015, Windstream Services repaid all $1.9 million of the outstanding aggregate principal amount of these unsecured notes utilizing available borrowings under the amended revolving line of credit. Windstream used a portion of the $1.035 billion cash payment received from CS&L in the spin-off of certain telecommunication network assets to redeem the 2018 Notes and the PAETEC 2018 Notes. The redemptions were accounted for as extinguishments and Windstream Services recognized a loss in connection with the early extinguishment of these two debt obligations. In conjunction with the spin-off, Windstream completed a debt-for-debt exchange retiring $1.7 billion aggregate principal amount of borrowings outstanding under Tranches A3, A4 and B4 of Windstream Services’ senior credit facility and $752.2 million aggregate principal amount of borrowings outstanding under the revolving line of credit. Following the completion of the debt-for-debt exchange, Windstream Services repaid the remaining $241.8 million aggregate principal amount of borrowings under Tranche B4. The debt-for-debt exchange and repayment were accounted for under the extinguishment method of accounting and, as a result, Windstream Services recognized a loss due to the extinguishment of the aforementioned debt obligations of $15.9 million in both the three and nine month periods ended September 30, 2015 . 2. Long-term Debt, Continued: Net (Loss) Gain on Early Extinguishment of Debt The net (loss) gain on early extinguishment of debt was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Senior secured credit facility: Premium on early redemption $ — $ — $ — $ (6.6 ) Third-party fees for early redemption — — — (0.7 ) Unamortized discount on original issuance (1.7 ) — (1.7 ) — Unamortized debt issuance costs on original issuance (1.4 ) — (1.4 ) (8.6 ) Loss on early extinguishment of senior secured credit facility (3.1 ) — (3.1 ) (15.9 ) 2017 Notes: Premium on early redemption $ (26.9 ) $ — $ (26.9 ) $ — Premium on repurchases — (7.0 ) (40.6 ) (7.0 ) Third-party fees for repurchases — — (2.4 ) — Unamortized discount on original issuance (1.0 ) (0.8 ) (3.0 ) (0.8 ) Unamortized debt issuance costs on original issuance (1.7 ) (1.5 ) (5.4 ) (1.5 ) Loss on early extinguishment of 2017 Notes (29.6 ) (9.3 ) (78.3 ) (9.3 ) 2018 Notes: Premium on early redemption — — — (16.3 ) Unamortized discount on original issuance — — — (1.4 ) Unamortized debt issuance costs on original issuance — — — (4.0 ) Loss on early extinguishment of 2018 Notes — — — (21.7 ) Partial repurchases of 2021, 2022 and 2023 Notes: Discount on repurchases 14.8 17.9 68.7 17.9 Unamortized premium on original issuance 0.1 0.3 0.9 0.3 Unamortized debt issuance costs on original issuance (2.3 ) (1.3 ) (6.2 ) (1.3 ) Gain on early extinguishment from partial repurchases of 2021, 2022 and 2023 Notes 12.6 16.9 63.4 16.9 PAETEC 2018 Notes: Premium on early redemption — — — (22.2 ) Unamortized premium on original issuance — — — 16.9 Loss on early extinguishment of PAETEC 2018 Notes — — — (5.3 ) Cinergy Communications Company Notes: Premium on early redemption — — — (0.5 ) Loss on early extinguishment of Cinergy Communication Company Notes — — — (0.5 ) Net (loss) gain on early extinguishment of debt $ (20.1 ) $ 7.6 $ (18.0 ) $ (35.8 ) 2. Long-term Debt, Continued: Maturities for long-term debt outstanding as of September 30, 2016 , excluding $(5.9) million of unamortized net discount and $53.5 million of unamortized debt issuance costs, were as follows: Twelve month period ended: (Millions) September 30, 2017 $ 13.4 September 30, 2018 13.4 September 30, 2019 569.4 September 30, 2020 632.5 September 30, 2021 1,417.1 Thereafter 2,279.7 Total $ 4,925.5 Interest Expense Interest expense was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Interest expense - long-term debt $ 89.6 $ 98.2 $ 270.7 $ 347.0 Interest expense - long-term lease obligations: Telecommunications network assets 124.8 128.2 377.1 224.2 Real estate contributed to pension plan 1.5 1.7 4.6 5.1 Impact of interest rate swaps 2.2 4.7 7.9 17.2 Interest on capital leases and other — 0.6 1.6 2.0 Less capitalized interest expense (1.7 ) (3.2 ) (8.4 ) (6.7 ) Total interest expense $ 216.4 $ 230.2 $ 653.5 $ 588.8 Debt Compliance The terms of Windstream Services’ credit facility and indentures include customary covenants that, among other things, require maintenance of certain financial ratios and restrict Windstream Services’ ability to incur additional indebtedness. These financial ratios include a maximum leverage ratio of 4.5 to 1.0 and a minimum interest coverage ratio of 2.75 to 1.0 . In addition, the covenants include restrictions on dividend and certain other types of payments. As of September 30, 2016 , Windstream Services was in compliance with all of these covenants. In addition, certain of Windstream Services’ debt agreements contain various covenants and restrictions specific to the subsidiary that is the legal counterparty to the agreement. Under Windstream Services’ long-term debt agreements, acceleration of principal payments would occur upon payment default, violation of debt covenants not cured within 30 days, a change in control including a person or group obtaining 50 percent or more ownership interest in Windstream Services, or breach of certain other conditions set forth in the borrowing agreements. Windstream Services and its subsidiaries were in compliance with these covenants as of September 30, 2016 . |
Derivatives_
Derivatives: | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives: Windstream Services enters into interest rate swap agreements to mitigate the interest rate risk inherent in its variable rate senior secured credit facility. Derivative instruments are accounted for in accordance with authoritative guidance for recognition, measurement and disclosures about derivative instruments and hedging activities, including when a derivative or other financial instrument can be designated as a hedge. This guidance requires recognition of all derivative instruments at fair value, and accounting for the changes in fair value depends on whether the derivative has been designated as, qualifies as and is effective as a hedge. Changes in fair value of the effective portions of cash flow hedges are recorded as a component of other comprehensive (loss) income in the current period. Any ineffective portion of the hedges is recognized in earnings in the current period. Prior to September 21, 2016, Windstream Services was party to three pay fixed, receive variable interest rate swap agreements to serve as cash flow hedges of the interest rate risk inherent in its senior secured credit facility. The swaps had a notional value of $675.0 million and were scheduled to mature on October 17, 2019. The average fixed interest rate paid was 3.604 percent and included a component which served to settle the liability existing on Windstream Services swaps at the time of the transaction. The variable rate received reset on the seventeenth day of each month to the one-month LIBOR. In transactions completed on September 21, 2016 and September 23, 2016, Windstream Services renegotiated its three existing swaps and reduced the average fixed interest rate it pays on the interest rate swaps from 3.604 percent to 2.984 percent , effective October 17, 2016, and extended the maturity of swaps to October 17, 2021. The variable interest rate on the swaps continues to be based on one-month LIBOR and resets on the seventeenth day of each month. On September 21, 2016, Windstream also entered into an additional pay fixed, receive variable interest rate swap agreement with a bank counterparty with a notional value of $200.0 million , fixed interest rate paid of 1.1275 percent and a maturity date of October 17, 2021. Similar to Windstream Services’ other swaps, the variable rate received on the new swap is the one-month LIBOR and resets on the seventeenth day of each month. Windstream Services has designated each of its four swaps as cash flow hedges of the interest rate risk inherent in borrowings outstanding under its senior secured credit facility due to changes in the LIBOR benchmark interest rate. All of the swaps are hedging probable variable cash flows which extend up to one year beyond the maturity of certain components of Windstream Services’ variable rate debt. Consistent with past practice, Windstream Services expects to extend or otherwise replace these components of its debt with variable rate debt. The three renegotiated swaps are off-market swaps, meaning they contain an embedded financing element, which the swap counterparties recover through an incremental charge in the fixed rate over what would be charged for an at-market swap. As such, a portion of the cash payment on the swaps represents the rate that Windstream Services would pay on a hypothetical at-market interest rate swap and is recognized in interest expense. The remaining portion represents the repayment of the embedded financing element and reduces the initial swap liability. As a result of refinancing transactions completed in 2013, April 2015 and September 2016, Windstream Services de-designated certain interest rate swaps and froze the accumulated net gains and losses in accumulated other comprehensive loss related to those swaps. The frozen balance is amortized from accumulated other comprehensive loss to interest expense over the remaining life of the original swaps. All derivative instruments are recognized at fair value in the accompanying consolidated balance sheets as either assets or liabilities, depending on the rights or obligations under the related contracts. Set forth below is information related to interest rate swap agreements: (Millions, except for percentages) September 30, December 31, Designated portion, measured at fair value: Other current liabilities $ 15.4 $ 18.3 Other non-current liabilities $ 44.1 $ 33.4 Accumulated other comprehensive loss $ (3.2 ) $ (0.9 ) De-designated portion, unamortized value: Accumulated other comprehensive loss $ (12.4 ) $ (0.2 ) Weighted average fixed rate paid 2.93 % 2.99 % Variable rate received 0.53 % 0.35 % 3. Derivatives, Continued: Derivatives are assessed for effectiveness each quarter and any ineffectiveness is recognized in other (expense) income, net in our consolidated statements of operations. Ineffectiveness recognized on the cash flow hedges was $0.5 million and $(0.6) million for the three and nine month periods ended September 30 , 2016 , respectively. Comparatively, ineffectiveness on the cash flow hedges was $(0.4) million and $(3.9) million for the three and nine month periods ended September 30 , 2015 , respectively. All or a portion of the change in fair value of Windstream Services’ interest rate swap agreements recorded in accumulated other comprehensive loss may be recognized in earnings in certain situations. If Windstream Services extinguishes all of its variable rate debt, or a portion of its variable rate debt such that the variable rate interest received on the swaps exceeds the variable rate interest paid on its debt, all or a portion of the change in fair value of the swaps may be recognized in earnings. In addition, the change in fair value of the swaps may be recognized in earnings if Windstream Services determines it is no longer probable that it will have future variable rate cash flows to hedge against or if a swap agreement is terminated prior to maturity. Windstream Services has assessed the counterparty risk and determined that no substantial risk of default exists as of September 30, 2016 . Each counterparty is a bank with a current credit rating at or above A , as determined by Moody’s Investors Service, Standard & Poor’s Corporation and Fitch Ratings. Windstream Services expects to recognize losses of $(7.5) million , net of taxes, in interest expense in the next twelve months related to the unamortized value of the de-designated portion of interest rate swap agreements and the interest settlements for the three remaining interest swap agreements at September 30, 2016 . Payments on the swaps are presented in the financing activities section of the accompanying consolidated statements of cash flows due to the embedded financing element discussed above. Changes in derivative instruments were as follows for the nine month periods ended September 30 : (Millions) 2016 2015 Changes in fair value of effective portion, net of tax (a) $ (10.8 ) $ (8.0 ) Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) $ 1.9 $ 6.1 (a) Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. The agreements with each of the derivative counterparties contain cross-default provisions, whereby if Windstream Services were to default on certain indebtedness, it could also be declared in default on its derivative obligations and may be required to net settle any outstanding derivative liability positions with its counterparties at the swap termination value of $63.8 million including accrued interest and excluding the credit valuation adjustment to measure non-performance risk. In addition, certain of the agreements with the counterparties contain provisions where if a specified event or condition, such as a merger, occurs that materially changes Windstream Services’ creditworthiness in an adverse manner, Windstream Services may be required to fully collateralize its derivative obligations. At September 30, 2016 , Windstream Services had not posted any collateral related to its interest rate swap agreements. Balance Sheet Offsetting Windstream Services is party to master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with counterparties. For financial statement presentation purposes, Windstream Services does not offset assets and liabilities under these arrangements. The following table presents the liabilities subject to an enforceable master netting arrangement as of September 30, 2016 and December 31, 2015 . As of September 30, 2016 and December 31, 2015 , all swap agreements with counterparties were in a liability position and, accordingly, there were no assets to be recognized in the accompanying consolidated balance sheets as of those dates. 3. Derivatives, Continued: Information pertaining to derivative liabilities was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Recognized Liabilities Net Amount of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount September 30, 2016: Interest rate swaps $ 59.5 $ 59.5 $ — $ — $ 59.5 December 31, 2015: Interest rate swaps $ 51.7 $ 51.7 $ — $ — $ 51.7 |
Fair Value Measurements_
Fair Value Measurements: | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements: | Fair Value Measurements: Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Authoritative guidance defines the following three tier hierarchy for assessing the inputs used in fair value measurements: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 – Unobservable inputs The highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority is given to unobservable inputs (level 3 measurement). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of fair value of assets and liabilities and their placement within the fair value hierarchy levels. Our non-financial assets and liabilities, including property, plant and equipment, goodwill, intangible assets and asset retirement obligations, are measured at fair value on a non-recurring basis. No event occurred during the nine month period ended September 30, 2016 requiring our non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, investment in CS&L common stock, accounts payable, long-term debt and interest rate swaps. The carrying amount of cash, accounts receivable and accounts payable was estimated by management to approximate fair value due to the relatively short period of time to maturity for those instruments. Cash equivalents, investment in CS&L common stock, long-term debt and interest rate swaps are measured at fair value on a recurring basis. Cash equivalents were not significant as of September 30, 2016 or December 31, 2015 . The fair values of the investment in CS&L common stock, interest rate swaps and long-term debt were determined using the following inputs at: (Millions) September 30, December 31, Recorded at Fair Value in the Financial Statements: Investment in CS&L common stock - Level 1 $ — $ 549.2 Derivatives - Interest rate swap liabilities - Level 2 $ 59.5 $ 51.7 Not Recorded at Fair Value in the Financial Statements: (a) Long-term debt, including current maturities - Level 2 $ 4,849.1 $ 4,452.7 (a) Recognized at carrying value of $4,919.6 million and $5,233.3 million in long-term debt, including current maturities, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of September 30, 2016 and December 31, 2015 , respectively. 4. Fair Value Measurements, Continued: The fair value of CS&L common stock was based on the quoted market price of the shares on the last day of the reporting period. The CS&L common stock trades on NASDAQ. The fair values of interest rate swaps are determined based on the present value of expected future cash flows using observable, quoted LIBOR swap rates for the full term of the swaps and also incorporate credit valuation adjustments to appropriately reflect both Windstream Services’ own non-performance risk and non-performance risk of the respective counterparties. As of September 30, 2016 and December 31, 2015 , the fair values of the interest rate swaps were reduced by $3.6 million and $2.9 million , respectively, to reflect non-performance risk. In calculating the fair value of Windstream Services’ long-term debt, the fair value of the debentures and notes was calculated based on quoted market prices of the specific issuances in an active market when available. The fair value of the other debt obligations was estimated based on appropriate market interest rates applied to the debt instruments. In calculating the fair value of the Windstream Holdings of the Midwest, Inc. notes, an appropriate market price of similar instruments in an active market considering credit quality, nonperformance risk and maturity of the instrument was used. We do not have any assets or liabilities measured for purposes of the fair value hierarchy at fair value using significant unobservable inputs (Level 3). We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the fair value hierarchy during the nine month period ended September 30, 2016 . |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits: | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans and Postretirement Benefits Other Than Pensions: | Employee Benefit Plans and Postretirement Benefits: We maintain a non-contributory qualified defined benefit pension plan. Future benefit accruals for all eligible nonbargaining employees covered by the pension plan have ceased. We also maintain supplemental executive retirement plans that provide unfunded, non-qualified supplemental retirement benefits to a select group of management employees. Additionally, we provide postretirement healthcare and life insurance benefits for eligible employees. Employees share in, and we fund, the costs of these plans as benefits are paid. The components of pension benefit (income) expense (including provision for executive retirement agreements) were as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Benefits earned during the period $ 2.1 $ 2.4 $ 6.3 $ 7.1 Interest cost on benefit obligation 13.8 13.3 41.5 40.0 Net actuarial loss (gain) — — 2.4 (2.8 ) Amortization of prior service credit — (0.1 ) (0.2 ) (0.1 ) Expected return on plan assets (16.2 ) (17.5 ) (48.6 ) (52.6 ) Net periodic benefit (income) expense $ (0.3 ) $ (1.9 ) $ 1.4 $ (8.4 ) The components of postretirement benefits expense (income) were as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Interest cost on benefit obligation $ 0.4 $ 0.3 $ 1.0 $ 0.9 Amortization of net actuarial loss 0.1 0.2 0.2 0.7 Amortization of prior service credit (0.3 ) (0.7 ) (0.7 ) (3.3 ) Plan curtailment — (3.0 ) (5.5 ) (16.5 ) Net periodic benefit expense (income) $ 0.2 $ (3.2 ) $ (5.0 ) $ (18.2 ) During the first quarter of 2016, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective March 14, 2016 . As a result, we remeasured the plan and recognized curtailment gains totaling $5.5 million , which was recognized in cost of services and selling, general and administrative expenses, with the offsetting effect recorded as a reduction in accumulated other comprehensive loss. 5. Employee Benefit Plans and Postretirement Benefits, Continued: During the third quarter of 2015, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective October 1, 2015 . As a result, we remeasured the plan and recognized curtailment gains totaling $3.0 million , of which $2.4 million was recognized in cost of services expenses and $0.6 million was recognized in selling, general and administrative expenses, with the offsetting effect recorded as a reduction in accumulated other comprehensive income of $3.0 million . During the second quarter of 2015, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective June 8, 2015 . As a result, we remeasured the plan and recognized curtailment gains totaling $13.5 million , of which $10.7 million was recognized in cost of services expenses and $2.8 million was recognized in selling, general and administrative expenses, with the offsetting effect recorded as a reduction in accumulated other comprehensive loss of $13.4 million and other liabilities of $0.1 million . We contributed $1.9 million to the postretirement plan during the nine month period ended September 30, 2016 , and expect to contribute an additional $0.2 million for postretirement benefits throughout the remainder of 2016, excluding amounts that will be funded by participant contributions to the plan. In October 2016, we made an employer contribution of $1.3 million in cash to the qualified pension plan to meet our 2016 funding requirements and to avoid certain benefit restrictions. We also expect to make cash contributions in 2016 totaling $0.9 million to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans. The amount and timing of future contributions to our qualified pension plan are based on a myriad of factors including investment performance, changes in future discount rates and changes in the demographics of the population participating in the plan. We also sponsor an employee savings plan under section 401(k) of the Internal Revenue Code, which covers substantially all salaried employees and certain bargaining unit employees. Windstream matches on an annual basis up to a maximum of 4.0 percent of employee pre-tax contributions to the plan for employees contributing up to 5.0 percent of their eligible pre-tax compensation. We recorded expenses of $5.0 million and $15.7 million in the three and nine month periods ended September 30, 2016 , respectively, as compared to $4.7 million and $14.9 million for the same periods in 2015 related to our matching contribution under the employee savings plan, which was included in cost of services and selling, general and administrative expenses in our consolidated statements of operations. Expense related to our 2016 matching contribution expected to be made in Windstream Holdings common stock is included in share-based compensation expense in the accompanying consolidated statements of cash flow. Additionally, we contributed 3.2 million shares of our common stock to the plan for the 2015 annual matching contribution during the nine month period ended September 30, 2016 . At the time of our contribution, the shares had a fair value of approximately $24.0 million as determined by the plan trustee. |
Share-Based Compensation Plans_
Share-Based Compensation Plans: Share-Based Compensation Plans: (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans: | Share-Based Compensation Plans: Under the Amended and Restated 2006 Equity Incentive Plan (the “Incentive Plan”), we may issue a maximum of 24.3 million equity stock awards in the form of restricted stock, restricted stock units, stock appreciation rights or stock options. As of September 30, 2016 , the Incentive Plan had remaining capacity of approximately 6.1 million awards. As of September 30, 2016 , we had additional remaining capacity of approximately 0.3 million awards from a similar equity incentive plan assumed in a prior acquisition. Our Board of Directors approves grants of restricted stock and restricted stock units to officers, executives, non-employee directors and certain management employees. These grants include the standard annual grants to these employee and director groups as a key component of their annual incentive compensation plan and one-time grants may include time-based and performance-based awards. Time-based awards granted to employees vest over a service period of two or three years. Each recipient of the performance-based restricted stock units may vest in a number of shares from zero to 150.0 percent of their award based on attainment of certain operating targets, some of which are indexed to the performance of Standard & Poor’s 500 Stock Index, over a three-year period. The 2016 annual and three-year operating targets for these performance based restricted stock units were approved by the Board of Directors in February 2016. For equity awards that contain only service conditions for vesting, we calculate to the fair value of the award based on Windstream Holdings’ closing price on the grant date determined in accordance with the applicable authoritative guidance. 6. Share-Based Compensation Plans, Continued: The vesting periods and grant date fair value for restricted stock and restricted stock units issued were as follows for the nine month period ended September 30 , 2016 : (Number of shares in thousands, dollars in millions) Restricted stock: Vest ratably over a three-year service period 1,343.3 Vest two years from date of grant, service based 53.2 Vest three years from date of grant, service based 53.6 Vest one year from date of grant, service based - granted to non-employee directors 198.0 Total granted 1,648.1 Grant date fair value $ 9.7 Restricted stock units: Vest contingently at the end of a three-year performance period 1,277.4 Grant date fair value $ 6.8 Restricted stock activity for the nine month period ended September 30, 2016 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2015 3,252.4 $ 15.36 Granted 1,648.1 $ 5.88 Vested (1,102.3 ) $ 17.30 Forfeited (476.4 ) $ 10.99 Non-vested at September 30, 2016 3,321.8 $ 10.64 Restricted stock unit activity for the nine month period ended September 30, 2016 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2015 216.3 $ 16.16 Granted 1,277.4 $ 5.34 Vested (113.7 ) $ 21.67 Forfeited (167.2 ) $ 6.10 Non-vested at September 30, 2016 1,212.8 $ 5.63 At September 30, 2016 , unrecognized compensation expense for restricted stock and restricted stock units totaled $25.7 million and is expected to be recognized over the weighted average vesting period of 1.8 years. Unrecognized compensation expense is included in additional paid-in capital in the accompanying consolidated balance sheets and statements of shareholders’ and member equity. Share-based compensation expense for restricted stock and restricted stock units was $4.2 million and $15.5 million for the three and nine month periods ended September 30, 2016 , respectively, as compared to $6.6 million and $17.1 million for the same periods in 2015 . In addition to including amounts related to restricted stock and restricted units, share-based compensation expense presented in the accompanying consolidated statements of cash flow also includes amounts related to certain executive and management incentive compensation plans and the matching contribution to the employee savings plan for which payments to eligible participants are expected to be made in Windstream Holdings common stock. 6. Share-Based Compensation Plans, Continued: A summary of share-based compensation expense was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Restricted stock and restricted units $ 4.2 $ 6.6 $ 15.5 $ 17.1 Employee savings plan (See Note 5) 5.0 4.7 15.7 14.9 Executive and management incentive compensation plans — 3.3 0.6 10.9 Share-based compensation expense $ 9.2 $ 14.6 $ 31.8 $ 42.9 |
Merger, Integration and Restruc
Merger, Integration and Restructuring Charges: | 9 Months Ended |
Sep. 30, 2016 | |
Merger Integration and Restructuring Charges [Abstract] | |
Merger, Integration and Restructuring Charges: | Merger, Integration and Restructuring Charges: We incur costs to complete a merger or acquisition and integrate its operations into our business, which are presented as merger and integration expense in our consolidated results of operations. These costs include transaction costs, such as accounting, legal and broker fees; severance and related costs; IT and network conversion; rebranding; and consulting fees. We also incurred investment banking fees, legal, accounting and other consulting fees related to the spin-off of certain network and real estate assets into an independent, publicly traded REIT. During the fourth quarter of 2015, we began a network optimization project designed to consolidate traffic onto network facilities operated by us and reduce the usage of other carriers’ networks, including service areas acquired in the acquisition of PAETEC Holding, Corp. (“PAETEC”). In undertaking this initiative, which we expect to complete during 2016, we incurred costs to migrate traffic to lower cost circuits and to terminate existing contracts prior to their expiration. Costs related to the network optimization project and the REIT spin-off primarily account for the merger and integration costs incurred for the periods presented. Restructuring charges are primarily incurred as a result of evaluations of our operating structure. Among other things, these evaluations explore opportunities to provide greater flexibility in managing and financing existing and future strategic operations, for task automation and the balancing of our workforce based on the current needs of our customers. Severance, lease exit costs and other related charges are included in restructuring charges. During the first nine months of 2016 , restructuring charges primarily consisted of severance and other employee-related costs totaling $11.3 million related to the completion of several small workforce reductions. Restructuring charges in the first nine months of 2015 principally consisted of $10.8 million of severance and other employee-related costs incurred in connection with completing several small workforce reductions and $3.1 million related to a special shareholder meeting held on February 20, 2015 to approve a one -for- six reverse stock split of Windstream Holdings’ common stock and the conversion of Windstream Corporation to Windstream Services. A summary of the merger, integration and restructuring charges recorded was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Merger and integration costs: Information technology conversion costs $ — $ 1.3 $ — $ 7.4 Costs related to REIT spin-off — 0.2 — 65.2 Network optimization and conversion costs 2.9 — 9.5 — Consulting and other costs — 1.6 1.0 1.9 Total merger and integration costs 2.9 3.1 10.5 74.5 Restructuring charges 2.5 5.3 12.8 15.7 Total merger, integration and restructuring charges $ 5.4 $ 8.4 $ 23.3 $ 90.2 After giving consideration to tax benefits on deductible items, merger, integration and restructuring charges decreased net income $3.3 million and $14.3 million for the three and nine month periods ended September 30, 2016 , as compared to $5.2 million and $44.5 million for the same periods in 2015. 7. Merger, Integration and Restructuring Charges, Continued: The following is a summary of the activity related to the liabilities associated with merger, integration and restructuring charges at September 30 : (Millions) 2016 Balance, beginning of period $ 5.1 Merger, integration and restructuring charges 23.3 Cash outlays during the period (23.2 ) Balance, end of period $ 5.2 As of September 30, 2016 , unpaid merger, integration and restructuring liabilities consisted of $3.2 million associated with the restructuring initiatives and $2.0 million related to merger and integration activities. Payments of these liabilities will be funded through operating cash flows. |
Other-Than-Temporary Impairment
Other-Than-Temporary Impairment Loss on Investment in CS&L Common Stock: (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-Sale Securities [Text Block] | Other-Than-Temporary Impairment Loss on Investment in CS&L Common Stock: In connection with the spin-off of certain telecommunications network assets to CS&L completed on April 24, 2015, Windstream Services retained a passive ownership interest in approximately 19.6 percent of the common stock of CS&L. Shares of CS&L retained by Windstream Services were classified as available-for-sale and recorded at fair value. During the first quarter of 2016, we recorded an other-than-temporary impairment loss of $(181.9) million for the difference between the fair value of the CS&L common stock as of March 31, 2016 and our cost basis, which had been based on the market value of the shares on the date of spin-off. We recorded the other-than-temporarily impairment due to the duration in which the CS&L shares had traded at a market price below our initial cost basis. Following the recognition of the other-than-temporary impairment loss, the cost basis of the CS&L shares was adjusted to equal the March 31, 2016 market value of $653.8 million . Subsequent changes in the market value of the CS&L shares were recorded in accumulated other comprehensive income. No deferred income taxes were recorded with respect to the unrealized gain or loss due to the tax-free qualification of the spin-off. |
Net Gain on Disposal of Investm
Net Gain on Disposal of Investment in CS&L Common Stock (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Net Gain on Disposal of Investment in CS&L Common Stock: As previously discussed in Note 2, in June 2016, Windstream Services disposed of all of its shares of CS&L common stock through the completion of two debt-for-equity exchanges, pursuant to which Windstream Services transferred the CS&L shares to its bank creditors in exchange for the retirement of $672.0 million of borrowings outstanding under its revolving line of credit and to satisfy transaction-related expenses. During the third quarter of 2016, Windstream Services recorded legal and other fees related to the completion of the debt-for-equity exchanges. Net of expenses, Windstream Services recognized a net gain on disposal of $15.2 million during the nine months ended September 30, 2016. Unrealized gains related to the CS&L common stock at the time of consummating the debt-for-equity exchanges were reclassified from accumulated other comprehensive income and included in the determination of the net gain on disposal. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income: | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss balances, net of tax, were as follows: (Millions) September 30, December 31, Pension and postretirement plans $ (0.7 ) $ 2.8 Unrealized holding loss on available-for-sale securities — (286.5 ) Unrealized holding losses on interest rate swaps: Designated portion (2.0 ) (0.6 ) De-designated portion (7.6 ) (0.1 ) Accumulated other comprehensive loss $ (10.3 ) $ (284.4 ) 10. Accumulated Other Comprehensive Loss, Continued: Changes in accumulated other comprehensive loss balances, net of tax, were as follows: (Millions) Unrealized Holding Loss on Available-for-Sale Securities (Losses) Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2015 $ (286.5 ) $ (0.7 ) $ 2.8 $ (284.4 ) Other comprehensive income (loss) before reclassifications 156.1 (10.8 ) 0.3 145.6 Amounts reclassified from other accumulated comprehensive loss (a) 130.4 1.9 (3.8 ) 128.5 Balance at September 30, 2016 $ — $ (9.6 ) $ (0.7 ) $ (10.3 ) (a) See separate table below for details about these reclassifications. Reclassifications out of accumulated other comprehensive loss were as follows: (Millions) Amount Reclassified from Accumulated Other Comprehensive Loss Details about Accumulated Other Comprehensive Loss Components Three Months Ended Nine Months Ended Affected Line Item in the Consolidated Statements of Operations 2016 2015 2016 2015 Available-for-sale securities: Gain on disposal recognized in the period $ — $ — $ (51.5 ) $ — Net (loss) gain on disposal of investment in CS&L common stock Other-than-temporary impairment recognized in the period — — 181.9 — Other-than-temporary impairment loss on investment in CS&L common stock — — 130.4 — Net loss Interest rate swaps: Amortization of unrealized losses on de-designated interest rate swaps 0.8 2.9 3.0 10.0 Interest expense 0.8 2.9 3.0 10.0 Loss before income taxes (0.3 ) (1.2 ) (1.1 ) (3.9 ) Income tax benefit 0.5 1.7 1.9 6.1 Net loss Pension and postretirement plans: Plan curtailment — (3.0 ) (5.5 ) (16.4 ) (a) Amortization of net actuarial loss 0.1 0.2 0.2 0.7 (a) Amortization of prior service credits (0.3 ) (0.8 ) (0.9 ) (3.4 ) (a) (0.2 ) (3.6 ) (6.2 ) (19.1 ) Loss before income taxes — 1.6 2.4 7.3 Income tax benefit (0.2 ) (2.0 ) (3.8 ) (11.8 ) Net loss Total reclassifications for the period, net of tax $ 0.3 $ (0.3 ) $ 128.5 $ (5.7 ) Net loss (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit (income) expense (see Note 5). |
(Loss) Earnings Per Share_ Earn
(Loss) Earnings Per Share: Earnings Per Share Text Block (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Loss per Share: We compute basic earnings (loss) per share by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares containing a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares are considered participating securities, and the impact is included in the computation of earnings (loss) per share pursuant to the two-class method. Calculations of earnings (loss) per share under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. Diluted earnings (loss) per share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and warrants. Diluted earnings (loss) per share excludes all potentially dilutive securities if their effect is anti-dilutive. We also issue performance-based restricted stock units as part of our share-based compensation plan. Certain of these restricted stock units contain a forfeitable right to receive dividends. Because dividends attributable to these shares are forfeited if the vesting provisions are not met, they are considered non-participating restricted shares and are not dilutive under the two-class method until the performance conditions have been satisfied. As of September 30, 2016 , the performance conditions for the outstanding restricted stock units have not yet been satisfied. Options and warrants granted in conjunction with past acquisitions are included in the computation of dilutive earnings per share using the treasury stock method. A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows: Three Months Ended Nine Months Ended (Millions, except per share amounts) 2016 2015 2016 2015 Basic and diluted loss per share: Numerator: Net loss $ (66.2 ) $ (7.2 ) $ (296.6 ) $ (113.1 ) Income allocable to participating securities (0.6 ) (0.5 ) (1.9 ) (3.0 ) Net loss attributable to common shares $ (66.8 ) $ (7.7 ) $ (298.5 ) $ (116.1 ) Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 96.2 102.9 98.7 102.6 Weighted average participating securities (3.4 ) (3.6 ) (5.1 ) (2.7 ) Weighted average basic and diluted shares outstanding 92.8 99.3 93.6 99.9 Basic and diluted loss per share: Net loss ($.72 ) ($.08 ) ($3.19 ) ($1.16 ) Options to purchase shares of stock issuable under stock-based compensation plans that were excluded from the computation of diluted shares outstanding because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be anti-dilutive, totaled 0.4 million shares for both the three and nine month periods ended September 30, 2016 , as compared to 0.5 million and 0.4 million shares for the three and nine month periods ended September 30, 2015 , respectively. |
Segment Information_ (Notes)
Segment Information: (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |
Segment Reporting Disclosure [Text Block] | Segment Information: Our business unit organizational structure is focused on our core customer relationships. During the third quarter of 2016, we changed the name of our Carrier segment to Wholesale to better reflect our customer base and the products and services we are selling in the marketplace. Historically, we were solely focused on serving telecom companies based in the United States, but over the past year, we have expanded our focus to sell our products and services to non-traditional telecom companies, including content providers, data center operators and international carriers requiring voice and data transport services in the United States. Following this name change, we operate and report these four customer-based segments: • Consumer and Small Business - ILEC - We manage as one business our residential and small business operations in those markets in which we are the incumbent local exchange carrier (“ILEC”) due to the similarities with respect to service offerings, marketing strategies and customer service delivery. Products and services offered to these customers include traditional local and long-distance voice services and high-speed Internet services, which are delivered primarily over network facilities operated by us. We offer consumer video services primarily through a relationship with Dish Network LLC and we also own and operate cable television franchises in some of our service areas. During 2015, we launched Kinetic, a complete video entertainment offering in our Lincoln, Nebraska and Lexington, Kentucky markets, and we launched this service in Sugar Land, Texas in April 2016. Residential customers can bundle voice, high-speed Internet and video services, to provide one convenient billing solution and receive bundle discounts. Small Business - ILEC services offer a wide range of advanced Internet, voice, and web conferencing products. These services are equipped to deliver high-speed Internet with competitive speeds, value added services to enhance business productivity and options to bundle services for a global business solution to meet our small business customer needs. • Wholesale - Our wholesale operations are focused on providing products and services to other communications services providers. Our service offerings leverage Windstream’s extensive fiber network to provide wave transport services, carrier Ethernet services, fiber-to-tower connections to support backhaul services to wireless carriers, and high speed Internet access. We also offer traditional services including special access services and Time Division Multiplexing (“TDM”) private line transport. The combination of these services allow wholesale customers to provide voice and data services to their customers through the use of our network or in combination with their own networks. • Enterprise - Our enterprise operations consist of our business customer relationships that generate $1,500 or more in revenue per month. Products and services offered to these customers include integrated voice and data services, which deliver voice and broadband services over a single Internet connection, multi-site networking services which provide a fast and private connection between business locations, as well as a variety of other data services, including cloud computing and collocation and managed services as an alternative to traditional information technology infrastructure. • Small Business - CLEC - These operations consist of our business customer relationships that generate less than $1,500 in revenue per month and are located in services areas in which we are a competitive local exchange carrier (“CLEC”) and provide services over network facilities primarily leased from other carriers. Products and services provided to these customers include integrated voice and data services, advanced data and traditional voice and long-distance services, as well as value added services including online backup, managed web design and web hosting, and various e-mail services. We evaluate performance of the segments based on segment income, which is computed as segment revenues and sales less segment operating expenses. As further discussed below, certain operating revenues and expenses are not assigned to our segments. Segment revenues are based upon each customer’s classification to an individual segment and include all services provided to that customer. Certain operating revenues are derived from activities that are centrally-managed by us and, accordingly, these revenues are not included in any of our four segments presented below. These other operating revenues include revenue from federal and state universal service funds, CAF Phase II support, and funds received from federal access recovery mechanisms. We also generate other service revenues from providing switched access services, which include usage-based revenues from long-distance companies and other carriers for access to our network to complete long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for the use of network facilities. Other operating revenues also include certain surcharges assessed to our customers, including billings for our required contributions to federal and state USF programs, product sales to contractors and consumer revenues generated in markets where we lease the connection to the customer premise. Revenues attributable to disposed businesses are not assigned to the segments and are also included in other service revenues for all periods prior to the dates of disposal. For the periods presented, the disposed operations consist of the sold data center and directory publishing businesses completed in December and April of 2015, respectively, as well as, the consumer CLEC business transferred to CS&L in connection with the REIT spin-off. 12. Segment Information, Continued: Segment expenses include specific expenses incurred as a direct result of providing services and products to segment customers; selling, general and administrative expenses that are directly associated with specific segment customers or activities; and certain allocated expenses which include network expenses, facilities expenses and other expenses, such as vehicle and real estate-related expenses. We do not assign depreciation and amortization expense, merger and integration costs, restructuring charges, stock-based compensation and pension costs to our segments, because these expenses are centrally managed and are not monitored by or reported to the chief operating decision maker (“CODM”) by segment. Similarly, certain regulatory fees, cost of products sold to contractors, interconnection costs in consumer markets where we lease the connection to the customer premise and centrally-managed administrative functions, such as accounting and finance, information technology, engineering, network management, legal and human resources, are not assigned to our segments. Interest expense and net (loss) gain on early extinguishment of debt have also been excluded from segment operating results because we manage our financing activities on a total company basis and have not assigned any long-term debt obligations to the segments. Amounts related to our investment in CS&L common stock consisting of dividend income, net gain on disposal and other-than-temporary impairment loss, as well as other income (expense), net, and income tax benefit are not monitored as a part of our segment operations and, therefore, these items also have been excluded from our segment operating results. Asset information by segment is not monitored or reported to the CODM and therefore has not been presented. All of our customers are located in the United States and we do not have any single customer that provides more than 10 percent of our total consolidated revenues and sales. The following table summarizes our segment results: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Consumer and Small Business - ILEC: Revenues and sales $ 395.6 $ 401.8 $ 1,188.0 $ 1,207.7 Costs and expenses 183.5 178.0 522.4 503.0 Segment income 212.1 223.8 665.6 704.7 Wholesale: Revenues 155.2 168.7 478.3 517.2 Costs and expenses 44.3 44.8 135.0 139.2 Segment income 110.9 123.9 343.3 378.0 Enterprise: Revenues and sales 511.2 527.1 1,533.6 1,540.3 Costs and expenses 428.1 463.8 1,300.2 1,377.5 Segment income 83.1 63.3 233.4 162.8 Small Business - CLEC: Revenues 118.7 139.0 372.7 427.5 Costs and expenses 81.4 92.7 252.9 288.0 Segment income 37.3 46.3 119.8 139.5 Total segment revenues and sales 1,180.7 1,236.6 3,572.6 3,692.7 Total segment costs and expenses 737.3 779.3 2,210.5 2,307.7 Total segment income $ 443.4 $ 457.3 $ 1,362.1 $ 1,385.0 12. Segment Information, Continued: The following table reconciles total segment revenues and sales to total consolidated revenues and sales: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Total segment revenues and sales $ 1,180.7 $ 1,236.6 $ 3,572.6 $ 3,692.7 Regulatory and other operating revenues and sales 164.2 230.6 505.3 542.8 Revenue and sales related to disposed businesses — 31.4 — 102.8 Total consolidated revenues and sales $ 1,344.9 $ 1,498.6 $ 4,077.9 $ 4,338.3 The following table reconciles segment income to consolidated net loss: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Total segment income $ 443.4 $ 457.3 $ 1,362.1 $ 1,385.0 Revenues and sales related to disposed businesses — 31.4 — 102.8 Regulatory and other operating revenues and sales 164.2 230.6 505.3 542.8 Depreciation and amortization (321.0 ) (350.5 ) (934.0 ) (1,033.0 ) Other unassigned operating expenses (157.2 ) (168.3 ) (491.7 ) (550.7 ) Operating expenses related to disposed businesses — (22.0 ) — (69.2 ) Dividend income on CS&L common stock — 17.6 17.6 30.6 Other income (expense), net 0.6 (0.2 ) (2.5 ) 7.9 Net (loss) gain on disposal of investment in CS&L common stock (2.1 ) — 15.2 — Net (loss) gain on early extinguishment of debt (20.1 ) 7.6 (18.0 ) (35.8 ) Other-than-temporary impairment loss on investment in CS&L common stock — — (181.9 ) — Interest expense (216.4 ) (230.2 ) (653.5 ) (588.8 ) Income tax benefit 42.4 19.5 84.8 95.3 Net loss $ (66.2 ) $ (7.2 ) $ (296.6 ) $ (113.1 ) |
Supplemental Guarantor Informat
Supplemental Guarantor Information: | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Guarantor Information: | Supplemental Guarantor Information: Debentures and notes, without collateral, issued by Windstream Services, LLC In connection with the issuance of the 7.750 percent senior notes due October 15, 2020, the 7.750 percent senior notes due October 1, 2021, the 7.500 percent senior notes due June 1, 2022, the 7.500 percent senior notes due April 1, 2023 and the 6.375 percent senior notes due August 1, 2023 (“the guaranteed notes”), certain of Windstream Services’ wholly-owned subsidiaries (the “Guarantors”), provide guarantees of those debentures. These guarantees are full and unconditional, subject to certain customary release provisions, as well as joint and several. All personal property assets and related operations of the Guarantors are pledged as collateral on the senior secured credit facility of Windstream Services. Certain Guarantors may be subject to restrictions on their ability to distribute earnings to Windstream Services. The remaining subsidiaries of Windstream Services (the “Non-Guarantors”) are not guarantors of the guaranteed notes. Windstream Holdings is not a guarantor of any Windstream Services debt instruments. Effective July 1, 2016, the guaranteed notes were amended to include a subsidiary as a Guarantor. Previously, this subsidiary was classified as a Non-Guarantor. As a result, prior period information has been revised to reflect the change in the guarantor reporting structure. 13. Supplemental Guarantor Information, Continued: In addition to revising the condensed consolidating financial statements for the change in the guarantor reporting structure, we also made revisions to correct certain errors that were not material to the condensed consolidating balance sheet as of December 31, 2015, which impacted Windstream Services, the Guarantors and Non-Guarantors with applicable offsetting adjustments in the Eliminations column. These revisions had no impact to the condensed consolidating statements of comprehensive income (loss) or cash flows for any period. The effects of the revisions were as follows: For Windstream Services, we reduced investment in consolidated subsidiaries and affiliates payable, net by $118.3 million . For Guarantors, we increased investment in consolidated subsidiaries by $43.0 million , decreased affiliates receivable, net by $166.1 million and increased accumulated deficit by $123.1 million . For Non-Guarantors, we increased investment in consolidated subsidiaries by $0.8 million , increased affiliates receivable, net by $61.1 million and increased retained earnings by $61.9 million . The applicable offsetting effects of these corrections were included in the Eliminations column. The following information presents condensed consolidating and combined statements of comprehensive income (loss) for the three and nine month periods ended September 30 , 2016 and 2015 , condensed consolidating and combined balance sheets as of September 30, 2016 and December 31, 2015 , and condensed consolidating and combined statements of cash flows for the three and nine month periods ended September 30 , 2016 and 2015 of Windstream Services, the Guarantors and the Non-Guarantors. Investments consist of investments in net assets of subsidiaries held by Windstream Services and other subsidiaries, and have been presented using the equity method of accounting. Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 253.6 $ 1,074.1 $ (8.8 ) $ 1,318.9 Product sales — 24.0 2.0 — 26.0 Total revenues and sales — 277.6 1,076.1 (8.8 ) 1,344.9 Costs and expenses: Cost of services — 108.2 577.6 (8.3 ) 677.5 Cost of products sold — 19.0 2.5 — 21.5 Selling, general and administrative — 32.1 158.2 (0.5 ) 189.8 Depreciation and amortization 3.3 76.0 241.7 — 321.0 Merger and integration costs — — 2.9 — 2.9 Restructuring charges — — 2.5 — 2.5 Total costs and expenses 3.3 235.3 985.4 (8.8 ) 1,215.2 Operating (loss) income (3.3 ) 42.3 90.7 — 129.7 Losses from consolidated subsidiaries (15.5 ) (26.4 ) (6.3 ) 48.2 — Other (expense) income, net 0.5 0.3 (0.2 ) — 0.6 Net loss on disposal of investment in CS&L common stock (2.1 ) — — — (2.1 ) Net loss on early extinguishment of debt (20.1 ) — — — (20.1 ) Intercompany interest income (expense) 31.7 (12.3 ) (19.4 ) — — Interest expense (90.1 ) (37.7 ) (88.6 ) — (216.4 ) Loss before income taxes (98.9 ) (33.8 ) (23.8 ) 48.2 (108.3 ) Income tax benefit (32.9 ) (2.8 ) (6.6 ) — (42.3 ) Net loss $ (66.0 ) $ (31.0 ) $ (17.2 ) $ 48.2 $ (66.0 ) Comprehensive loss $ (69.3 ) $ (31.0 ) $ (17.2 ) $ 48.2 $ (69.3 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 314.7 $ 1,142.5 $ (6.0 ) $ 1,451.2 Product sales — 41.6 5.8 — 47.4 Total revenues and sales — 356.3 1,148.3 (6.0 ) 1,498.6 Costs and expenses: Cost of services — 111.7 597.6 (5.4 ) 703.9 Cost of products sold — 36.6 4.9 — 41.5 Selling, general and administrative — 41.0 175.1 (0.6 ) 215.5 Depreciation and amortization 4.4 86.6 259.5 — 350.5 Merger and integration costs — — 3.1 — 3.1 Restructuring charges — 1.8 3.5 — 5.3 Total costs and expenses 4.4 277.7 1,043.7 (6.0 ) 1,319.8 Operating (loss) income (4.4 ) 78.6 104.6 — 178.8 Earnings (losses) from consolidated subsidiaries 15.4 (138.3 ) (5.9 ) 128.8 — Dividend income on CS&L common stock 17.6 — — — 17.6 Other (expense) income, net (0.4 ) 0.3 (0.1 ) — (0.2 ) Net gain on early extinguishment of debt 7.6 — — — 7.6 Intercompany interest income (expense) 28.3 (9.5 ) (18.8 ) — — Interest expense (101.2 ) (38.1 ) (90.9 ) — (230.2 ) Loss before income taxes (37.1 ) (107.0 ) (11.1 ) 128.8 (26.4 ) Income tax (benefit) expense (30.1 ) 2.2 8.5 — (19.4 ) Net loss $ (7.0 ) $ (109.2 ) $ (19.6 ) $ 128.8 $ (7.0 ) Comprehensive loss $ (223.2 ) $ (109.2 ) $ (19.6 ) $ 128.8 $ (223.2 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 763.7 $ 3,248.2 $ (21.1 ) $ 3,990.8 Product sales — 77.6 9.5 — 87.1 Total revenues and sales — 841.3 3,257.7 (21.1 ) 4,077.9 Costs and expenses: Cost of services — 309.7 1,723.1 (19.3 ) 2,013.5 Cost of products sold — 66.5 8.1 — 74.6 Selling, general and administrative — 107.6 483.6 (1.8 ) 589.4 Depreciation and amortization 10.5 225.2 698.3 — 934.0 Merger and integration costs — — 10.5 — 10.5 Restructuring charges — 1.8 11.0 — 12.8 Total costs and expenses 10.5 710.8 2,934.6 (21.1 ) 3,634.8 Operating (loss) income (10.5 ) 130.5 323.1 — 443.1 Losses from consolidated subsidiaries (11.2 ) (73.4 ) (20.4 ) 105.0 — Dividend income on CS&L common stock 17.6 — — — 17.6 Other expense, net (0.3 ) (0.2 ) (2.0 ) — (2.5 ) Net gain on disposal of investment in CS&L common stock 15.2 — — — 15.2 Net loss on early extinguishment of debt (18.0 ) — — — (18.0 ) Other-than-temporary impairment loss on investment in CS&L common stock (181.9 ) — — — (181.9 ) Intercompany interest income (expense) 89.3 (33.1 ) (56.2 ) — — Interest expense (273.5 ) (112.3 ) (267.7 ) — (653.5 ) Loss before income taxes (373.3 ) (88.5 ) (23.2 ) 105.0 (380.0 ) Income tax benefit (77.6 ) (5.8 ) (0.9 ) — (84.3 ) Net loss $ (295.7 ) $ (82.7 ) $ (22.3 ) $ 105.0 $ (295.7 ) Comprehensive loss $ (21.6 ) $ (82.7 ) $ (22.3 ) $ 105.0 $ (21.6 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 883.6 $ 3,346.1 $ (19.5 ) $ 4,210.2 Product sales — 112.2 15.9 — 128.1 Total revenues and sales — 995.8 3,362.0 (19.5 ) 4,338.3 Costs and expenses: Cost of services — 344.8 1,741.0 (16.7 ) 2,069.1 Cost of products sold — 97.2 14.6 — 111.8 Selling, general and administrative — 115.9 541.8 (2.8 ) 654.9 Depreciation and amortization 13.7 255.1 764.2 — 1,033.0 Merger and integration costs — — 74.5 — 74.5 Restructuring charges — 4.1 11.6 — 15.7 Total costs and expenses 13.7 817.1 3,147.7 (19.5 ) 3,959.0 Operating (loss) income (13.7 ) 178.7 214.3 — 379.3 Earnings (losses) from consolidated subsidiaries 19.4 (192.0 ) (5.7 ) 178.3 — Dividend income on CS&L common stock 30.6 — — — 30.6 Other (expense) income, net (2.9 ) 0.5 10.3 — 7.9 Net loss on early extinguishment of debt (30.0 ) (5.3 ) (0.5 ) — (35.8 ) Intercompany interest income (expense) 92.7 (37.8 ) (54.9 ) — — Interest expense (343.5 ) (84.4 ) (160.9 ) — (588.8 ) (Loss) income before income taxes (247.4 ) (140.3 ) 2.6 178.3 (206.8 ) Income tax (benefit) expense (135.3 ) 9.5 31.1 — (94.7 ) Net loss $ (112.1 ) $ (149.8 ) $ (28.5 ) $ 178.3 $ (112.1 ) Comprehensive loss $ (435.9 ) $ (149.8 ) $ (28.5 ) $ 178.3 $ (435.9 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet (Unaudited) As of September 30, 2016 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 22.0 $ 1.8 $ 37.6 $ — $ 61.4 Accounts receivable, net — 199.2 450.5 — 649.7 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 529.7 1,915.5 (2,445.2 ) — Inventories — 68.4 11.9 — 80.3 Prepaid expenses and other 16.8 38.0 74.8 — 129.6 Total current assets 38.8 841.9 2,490.3 (2,450.0 ) 921.0 Investments in consolidated subsidiaries 6,199.8 290.0 229.4 (6,719.2 ) — Notes receivable - affiliate — 311.4 — (311.4 ) — Goodwill 1,636.7 1,364.4 1,212.5 — 4,213.6 Other intangibles, net 525.0 264.4 575.9 — 1,365.3 Net property, plant and equipment 7.3 1,225.6 4,005.9 — 5,238.8 Deferred income taxes — 317.4 236.6 (554.0 ) — Other assets 12.9 16.3 55.7 — 84.9 Total Assets $ 8,420.5 $ 4,631.4 $ 8,806.3 $ (10,034.6 ) $ 11,823.6 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 13.4 $ — $ — $ — $ 13.4 Current portion of long-term lease obligations — 48.3 116.2 — 164.5 Accounts payable — 105.3 222.5 — 327.8 Affiliates payable, net 2,460.1 — — (2,445.2 ) 14.9 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 42.0 141.9 — 183.9 Accrued taxes 0.8 17.4 59.4 — 77.6 Accrued interest 88.6 3.5 1.0 — 93.1 Other current liabilities 42.8 47.1 183.3 — 273.2 Total current liabilities 2,605.7 263.6 729.1 (2,450.0 ) 1,148.4 Long-term debt 4,753.1 99.6 — — 4,852.7 Long-term lease obligations — 1,418.1 3,457.6 — 4,875.7 Notes payable - affiliate — — 311.4 (311.4 ) — Deferred income taxes 753.7 — — (554.0 ) 199.7 Other liabilities 57.7 41.5 397.6 — 496.8 Total liabilities 8,170.2 1,822.8 4,895.7 (3,315.4 ) 11,573.3 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 565.8 3,150.8 825.3 (3,976.1 ) 565.8 Accumulated other comprehensive loss (10.3 ) — (0.7 ) 0.7 (10.3 ) (Accumulated deficit) retained earnings (305.2 ) (381.6 ) 3,004.1 (2,622.5 ) (305.2 ) Total equity 250.3 2,808.6 3,910.6 (6,719.2 ) 250.3 Total Liabilities and Equity $ 8,420.5 $ 4,631.4 $ 8,806.3 $ (10,034.6 ) $ 11,823.6 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet (Unaudited) As of December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ — $ 1.1 $ 33.5 $ (3.3 ) $ 31.3 Accounts receivable, net — 219.4 424.5 — 643.9 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 449.4 2,486.8 (2,936.2 ) — Inventories — 69.1 10.4 — 79.5 Prepaid expenses and other 321.8 32.6 64.4 (298.2 ) 120.6 Total current assets 321.8 776.4 3,019.6 (3,242.5 ) 875.3 Investments in consolidated subsidiaries 6,214.0 363.5 256.7 (6,834.2 ) — Notes receivable - affiliate — 314.1 — (314.1 ) — Goodwill 1,636.7 1,364.4 1,212.5 — 4,213.6 Other intangibles, net 554.3 282.8 667.6 — 1,504.7 Net property, plant and equipment 8.4 1,249.7 4,021.7 — 5,279.8 Investment in CS&L common stock 549.2 — — — 549.2 Deferred income taxes — 299.4 217.1 (516.5 ) — Other assets 14.2 56.3 25.0 — 95.5 Total Assets $ 9,298.6 $ 4,706.6 $ 9,420.2 $ (10,907.3 ) $ 12,518.1 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 5.9 $ — $ — $ — $ 5.9 Current portion of long-term lease obligations — 44.4 108.3 — 152.7 Accounts payable — 93.2 336.9 — 430.1 Affiliates payable, net 2,951.3 — — (2,936.2 ) 15.1 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 27.0 166.9 — 193.9 Accrued taxes 0.3 11.3 370.7 (298.2 ) 84.1 Accrued interest 75.3 1.9 1.2 — 78.4 Other current liabilities 42.6 47.8 216.5 — 306.9 Total current liabilities 3,075.4 225.6 1,205.3 (3,239.2 ) 1,267.1 Long-term debt 5,065.1 99.5 — — 5,164.6 Long-term lease obligations — 1,455.2 3,545.2 — 5,000.4 Notes payable - affiliate — — 314.1 (314.1 ) — Deferred income taxes 803.9 — — (516.5 ) 287.4 Other liabilities 47.8 25.2 419.2 — 492.2 Total liabilities 8,992.2 1,805.5 5,483.8 (4,069.8 ) 12,211.7 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 600.3 3,150.9 825.3 (3,976.2 ) 600.3 Accumulated other comprehensive (loss) income (284.4 ) — 2.8 (2.8 ) (284.4 ) (Accumulated deficit) retained earnings (9.5 ) (289.2 ) 3,026.4 (2,737.2 ) (9.5 ) Total equity 306.4 2,901.1 3,936.4 (6,837.5 ) 306.4 Total Liabilities and Equity $ 9,298.6 $ 4,706.6 $ 9,420.2 $ (10,907.3 ) $ 12,518.1 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash provided from operating activities $ 123.7 $ 297.2 $ 202.1 $ — $ 623.0 Cash Flows from Investing Activities: Additions to property, plant and equipment (0.5 ) (132.5 ) (620.4 ) — (753.4 ) Proceeds from sale of property — 1.0 5.3 — 6.3 Other, net (4.0 ) — (2.5 ) — (6.5 ) Net cash used in investing activities (4.5 ) (131.5 ) (617.6 ) — (753.6 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (73.9 ) — — — (73.9 ) Repayments of debt and swaps (2,919.6 ) — — — (2,919.6 ) Proceeds of debt issuance 3,340.0 — — — 3,340.0 Debt issuance costs (12.3 ) — — — (12.3 ) Intercompany transactions, net (424.2 ) (134.0 ) 554.9 3.3 — Payments under long-term lease obligations — (33.3 ) (79.9 ) — (113.2 ) Payments under capital lease obligations — (0.4 ) (52.7 ) — (53.1 ) Other, net (7.2 ) 2.7 (2.7 ) — (7.2 ) Net cash (used in) provided from financing activities (97.2 ) (165.0 ) 419.6 3.3 160.7 Increase in cash and cash equivalents 22.0 0.7 4.1 3.3 30.1 Cash and Cash Equivalents: Beginning of period — 1.1 33.5 (3.3 ) 31.3 End of period $ 22.0 $ 1.8 $ 37.6 $ — $ 61.4 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash (used in) provided from operating activities $ (46.7 ) $ 206.2 $ 597.8 $ — $ 757.3 Cash Flows from Investing Activities: Additions to property, plant and equipment (0.8 ) (122.9 ) (620.7 ) — (744.4 ) Grant funds received for broadband stimulus projects 23.5 — — — 23.5 Network expansion funded by Connect America Fund - Phase I — (16.5 ) (50.9 ) — (67.4 ) Change in restricted cash 6.7 — — — 6.7 Other, net (4.1 ) 0.1 12.9 — 8.9 Net cash provided from (used in) investing activities 25.3 (139.3 ) (658.7 ) — (772.7 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (375.1 ) — — — (375.1 ) Payment received from CS&L in spin-off 1,035.0 — — — 1,035.0 Repayments of debt and swaps (1,646.7 ) (450.0 ) (1.9 ) — (2,098.6 ) Proceeds of debt issuance 1,620.0 — — — 1,620.0 Debt issuance costs (4.3 ) — — — (4.3 ) Intercompany transactions, net (550.0 ) 394.0 130.0 26.0 — Payments under long-term lease obligations — (11.3 ) (48.0 ) — (59.3 ) Payments under capital lease obligations — (4.2 ) (20.5 ) — (24.7 ) Other, net (8.2 ) 2.7 (2.7 ) — (8.2 ) Net cash provided from (used in) financing activities 70.7 (68.8 ) 56.9 26.0 84.8 Increase (decrease) in cash and cash equivalents 49.3 (1.9 ) (4.0 ) 26.0 69.4 Cash and Cash Equivalents: Beginning of period — 3.8 50.0 (26.0 ) 27.8 End of period $ 49.3 $ 1.9 $ 46.0 $ — $ 97.2 |
Commitments and Contingencies_
Commitments and Contingencies: | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies: | Commitments and Contingencies: On February 9, 2015, a putative stockholder filed a Shareholder Class Action Complaint in the Delaware Court of Chancery (the “Court”), captioned Doppelt v. Windstream Holdings, Inc., et al. , C.A. No. 10629-VCN, against the Company and its Board of Directors. This complaint was accompanied by a motion for a preliminary injunction seeking to enjoin the spin-off. The Court, ruling from the bench on February 19, 2015 - the day before a special meeting of stockholders was scheduled to vote on a reverse stock split and amended governing documents (the “Proposals”) - denied plaintiff’s motion for a preliminary injunction, reasoning that much of the information sought by plaintiff had been disclosed in public filings available on the United States Securities and Exchange Commission’s website, the Windstream Holdings’ board of directors was in no way conflicted, and while approval of the Proposals would facilitate the spin-off, approval was not necessary to effect the spin-off. On March 16, 2015, plaintiff, joined by a second putative Windstream stockholder, filed an Amended Shareholder Class Action Complaint alleging breaches of fiduciary duty by the Company and its Board concerning Windstream’s disclosures and seeking to rescind the spin-off and unspecified monetary damages. On February 5, 2016, the Court granted in part and denied in part defendants’ motion to dismiss the amended complaint. The Court dismissed Windstream, and plaintiffs’ demand to rescind the spin-off, but otherwise denied the motion. In addition, numerous copyright holders represented by RightsCorp, Inc. (“RightsCorp”) have asserted that our customers have utilized our services to allegedly illegally download and share alleged copyrighted material via peer-to-peer or “filesharing” programs. These holders maintain that Windstream is responsible for alleged infringement because after notification, Windstream did not shut off service to customers alleged to be repeat infringers, and, further, that Windstream may not claim safe harbor pursuant to the Digital Millennium Copyright Act of 1998. On June 27, 2016, Windstream filed a complaint for declaratory judgment in the United States District Court - Southern District of New York against RightsCorp and BMG Rights Management (US) LLC, a client of RightsCorp, seeking a declaration that it is not liable under applicable laws for any alleged copyright infringement and that the defendants are not entitled to any alleged damages from Windstream for alleged copyright infringement. We believe that we have valid defenses to the claims asserted in the lawsuit and the claims asserted by RightsCorp and its client that are the subject matter of Windstream’s declaratory action, and we plan to vigorously defend the claims being pursued against us in both matters. While the ultimate resolution of the matters is not currently predictable, if there are adverse rulings against Windstream in either of these two matters, either ruling could constitute a material adverse outcome on the future consolidated results of our income, cash flows, or financial condition. We are party to various legal proceedings and the ultimate resolution of these legal proceedings cannot be determined at this time. However, based on current circumstances, management does not believe such proceedings, individually or in the aggregate, will have a material adverse effect on the future consolidated results of our income, cash flows or financial condition. Finally, management is currently not aware of any environmental matters, individually or in the aggregate, that would have a material adverse effect on our consolidated financial condition or results of our operations. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events: | Subsequent Events: During October 2016, Windstream Services settled $138.5 million of its pension benefit obligations by irrevocably transferring the retiree pension liabilities to an insurance company through the purchase of group annuity contracts. The purchase of the annuity contracts was funded with pension plan assets and resulted in a pretax settlement gain of $0.9 million . In connection with the settlement, Windstream Services is required to re-measure its pension benefit obligations as of the settlement date. In accordance with our accounting policy, we immediately recognize as net periodic benefit expense any actuarial gains or losses arising due to changes in actuarial assumptions at year-end or whenever an interim re-measurement is required. As a result, Windstream Services will recognize a pretax actuarial loss of $68.2 million in the fourth quarter of 2016. The actuarial loss primarily resulted from a reduction in the discount rate used to measure the pension benefit obligations from 4.55 percent at January 1, 2016 to 3.80 percent as of the settlement date. 15. Subsequent Events, Continued: On November 5, 2016, Windstream Holdings entered into an Agreement and Plan of Merger (the “'Merger Agreement”') with EarthLink Holdings Corp (“EarthLink”'), Europa Merger Sub, Inc. (“Merger Sub 1”) and Europa Merger Sub, LLC (“Merger Sub 2”). Subject to the terms and conditions of the Merger Agreement, Merger Sub 1 will merge with and into EarthLink with EarthLink surviving as an indirect, wholly-owned subsidiary of Windstream (the “Initial Merger”) and, immediately following the effective time of the Initial Merger, EarthLink will merge with and into Merger Sub 2, with Merger Sub 2 surviving as an indirect, wholly-owned subsidiary of Windstream (the “'Merger”'). EarthLink provides data, voice and managed network services to retail and wholesale business customers and nationwide Internet access and related value-added services to residential customers. Upon completion of the Merger, Windstream will add more than 700,000 customers and approximately 16,000 incremental route fiber miles. In the Merger, each share of EarthLink common stock will be exchanged for .818 shares of Windstream Holdings common stock. In the aggregate, Windstream Holdings will issue approximately 93 million shares of its common stock. Windstream will also assume approximately $436 million of EarthLink’s long-term debt, which Windstream expects to refinance. The transaction is valued at approximately $1.1 billion . Consummation of the Merger is subject to certain conditions, including the approval of the Merger by the stockholders of both Windstream Holdings and EarthLink and the receipt of regulatory approvals, including, without limitation, the approval of the FCC and the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The transaction is expected to close during the first half of 2017. |
Preparation of Interim Financ30
Preparation of Interim Financial Statements: Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business – We are a leading provider of advanced network communications and technology solutions for consumers, businesses, enterprise organizations and wholesale customers across the United States. We offer bundled services, including broadband, security solutions, voice and digital television to consumers. We also provide data, cloud solutions, unified communications and managed services to business and enterprise clients. We supply core transport solutions on a local and long-haul fiber-optic network spanning approximately 129,000 miles. Consumer service revenues are generated from the provisioning of high-speed Internet, voice and video services to consumers. Small business service revenues include revenues from integrated voice and data services, advanced data and traditional voice and long-distance services provided to small business customers. Wholesale revenues include revenues from other communications services providers for special access circuits and fiber connections, voice and data transport services, and revenues from the reselling of our services. Enterprise service revenues include revenues from integrated voice and data services, advanced data, traditional voice and long-distance services provided to enterprise customers. Regulatory revenues include switched access revenues, federal and state Universal Service Fund (“USF”) revenues and amounts received from Connect America Fund - Phase II. Other service revenues include USF surcharge revenues, other miscellaneous services and consumer revenues generated in markets where we lease the connection to the customer premise. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2015 , was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. In our opinion, these financial statements reflect all adjustments that are necessary for a fair statement of results of operations and financial condition for the interim periods presented including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 , which was filed with the SEC on February 25, 2016 . Windstream Holdings and its domestic subsidiaries, including Windstream Services, file a consolidated federal income tax return. As such, Windstream Services and its subsidiaries are not separate taxable entities for federal and certain state income tax purposes. In instances when Windstream Services does not file a separate return, income taxes as presented within the accompanying consolidated financial statements attribute current and deferred income taxes of Windstream Holdings to Windstream Services and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method. Income tax provisions presented for Windstream Services and its subsidiaries are prepared under the “separate return method.” The separate return method represents a hypothetical computation assuming that the reported revenue and expenses of Windstream Services and its subsidiaries were incurred by separate taxable entities. |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements, in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. |
New Accounting Pronouncements, Policy [Policy Text Block] | Revenue Recognition – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard outlines a single comprehensive revenue recognition model for entities to follow in accounting for revenue from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. ASU 2014-09 may be adopted by applying the provisions of the new standard on a retrospective basis to all periods presented in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect adjustment in the year of adoption. When issued, ASU 2014-09 was to be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption was not permitted. In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year to December 15, 2017 for annual reporting periods beginning after that date, or January 1, 2018, for calendar companies like Windstream. Entities are permitted to early adopt the standard, but not before the original effective date of December 15, 2016. We are in the process of determining the method of adoption and assessing the impact the new standard will have on our consolidated financial statements. We expect to adopt this standard effective January 1, 2018. In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09. In conjunction with our assessment of ASU 2014-09, we are currently evaluating the impacts of this new guidance. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. In May 2016, the FASB also issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ASU 2016-10 provides more detailed guidance with respect to identifying performance obligations and accounting for licensing arrangements, including intellectual property licenses, royalties, license restrictions and renewals. ASU 2016-11 rescinds several SEC Staff announcements that are codified in Topic 605: Revenue Recognition, including, among other items, guidance relating to accounting for consideration given by a vendor to a customer, as well as accounting for shipping and handling fees and freight services. ASU 2016-12 provides clarification to Topic 606 on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. ASU 2016-12 also clarifies that an entity retrospectively applying the guidance in Topic 606 is not required to disclose the effect of the accounting change in the period of adoption. The effective date and transition requirements for each of these amendments are the same as the effective date and transition requirements of ASU 2014-09. In conjunction with our assessment of ASU 2014-09, we are currently evaluating the impacts that these amendments will have on our consolidated financial statements. 1. Preparation of Interim Financial Statements, Continued: Fair Value Measurement Disclosures – In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value Per Share (or Its Equivalent), which amends certain fair value measurement disclosures. The standard removes the requirement to categorize within the fair value hierarchy investments for which fair value is measured using the net asset value per share practical expedient and also removes certain related disclosure requirements. ASU 2015-07 is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 31, 2015, with early adoption permitted. Adoption of ASU 2015-07 will impact certain annual disclosures related to our qualified pension plan assets, but otherwise is not expected to have a material impact on our consolidated financial statements. Valuation of Inventory – In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The updated guidance requires that an entity should measure inventory valued using a first-in, first-out or average cost method at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 should be applied on a prospective basis and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We do not expect that the adoption of ASU 2015-11 will have a material impact to our consolidated results of operations, financial position or cash flows. Leases – In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require that virtually all lease arrangements that do not meet the criteria of a short-term lease be presented on the lessee’s balance sheet by recording a right-of-use asset and a lease liability equal to the present value of the related future lease payments. The income statement impacts of the leases will depend on the nature of the leasing arrangement and will be similar to existing accounting for operating and capital leases. The new standard does not substantially change the accounting for lessors. The new standard will also require additional disclosures regarding an entity’s leasing arrangements and will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. Derivatives and Hedging – In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (a consensus of the Emerging Issues Task Force). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We do not expect that the adoption of ASU 2016-05 will have a material impact on our consolidated financial statements. Employee Share-Based Payment Accountin g – In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the new guidance all excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, should be recognized as income tax expense or benefit in the income statement, eliminating the notion of the APIC pool. The excess tax benefits will be classified as operating activities along with other income tax cash flows rather than financing activities in the statement of cash flows. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. ASU 2016-19 also allows entities to elect to either estimate the total number of awards that are expected to vest or account for forfeitures when they occur. Additionally, ASU 2016-09 clarifies that cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements should be presented as a financing activity in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. 1. Preparation of Interim Financial Statements, Continued: Financial Instruments - Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This new standard also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using a modified retrospective transition approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. Statement of Cash Flows – In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This standard provides guidance on how certain cash receipts and cash payments should be presented and classified in the statement of cash flows, including among others, debt prepayment and extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and distributions received from equity method investees. The standard also clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use of the underlying cash flows. ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated statement of cash flows. |
Long-term Debt and Lease Obli31
Long-term Debt and Lease Obligations: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt was as follows at: (Millions) September 30, December 31, Issued by Windstream Services: Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 $ 573.8 $ 578.2 Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) 747.0 — Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 625.0 300.0 Debentures and notes, without collateral: 2017 Notes – 7.875%, due November 1, 2017 — 904.1 2020 Notes – 7.750%, due October 15, 2020 700.0 700.0 2021 Notes – 7.750%, due October 1, 2021 809.3 920.4 2022 Notes – 7.500%, due June 1, 2022 441.2 485.9 2023 Notes – 7.500%, due April 1, 2023 343.5 540.1 2023 Notes – 6.375%, due August 1, 2023 585.7 700.0 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (b) 100.0 100.0 (Discount) premium on long-term debt, net (c) (5.9 ) 4.6 Unamortized debt issuance costs (c) (53.5 ) (62.8 ) 4,866.1 5,170.5 Less current maturities (13.4 ) (5.9 ) Total long-term debt $ 4,852.7 $ 5,164.6 2. Long-term Debt, Continued: (a) If the maturity of the revolving line of credit is not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan will be April 24, 2020; provided further, if the 2020 Notes have not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan will be July 15, 2020. (b) These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. (c) The net (discount) premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. |
Schedule of Extinguishment of Debt [Table Text Block] | The net (loss) gain on early extinguishment of debt was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Senior secured credit facility: Premium on early redemption $ — $ — $ — $ (6.6 ) Third-party fees for early redemption — — — (0.7 ) Unamortized discount on original issuance (1.7 ) — (1.7 ) — Unamortized debt issuance costs on original issuance (1.4 ) — (1.4 ) (8.6 ) Loss on early extinguishment of senior secured credit facility (3.1 ) — (3.1 ) (15.9 ) 2017 Notes: Premium on early redemption $ (26.9 ) $ — $ (26.9 ) $ — Premium on repurchases — (7.0 ) (40.6 ) (7.0 ) Third-party fees for repurchases — — (2.4 ) — Unamortized discount on original issuance (1.0 ) (0.8 ) (3.0 ) (0.8 ) Unamortized debt issuance costs on original issuance (1.7 ) (1.5 ) (5.4 ) (1.5 ) Loss on early extinguishment of 2017 Notes (29.6 ) (9.3 ) (78.3 ) (9.3 ) 2018 Notes: Premium on early redemption — — — (16.3 ) Unamortized discount on original issuance — — — (1.4 ) Unamortized debt issuance costs on original issuance — — — (4.0 ) Loss on early extinguishment of 2018 Notes — — — (21.7 ) Partial repurchases of 2021, 2022 and 2023 Notes: Discount on repurchases 14.8 17.9 68.7 17.9 Unamortized premium on original issuance 0.1 0.3 0.9 0.3 Unamortized debt issuance costs on original issuance (2.3 ) (1.3 ) (6.2 ) (1.3 ) Gain on early extinguishment from partial repurchases of 2021, 2022 and 2023 Notes 12.6 16.9 63.4 16.9 PAETEC 2018 Notes: Premium on early redemption — — — (22.2 ) Unamortized premium on original issuance — — — 16.9 Loss on early extinguishment of PAETEC 2018 Notes — — — (5.3 ) Cinergy Communications Company Notes: Premium on early redemption — — — (0.5 ) Loss on early extinguishment of Cinergy Communication Company Notes — — — (0.5 ) Net (loss) gain on early extinguishment of debt $ (20.1 ) $ 7.6 $ (18.0 ) $ (35.8 ) |
Schedule of Maturities of Long-term Debt [Table Text Block] | Maturities for long-term debt outstanding as of September 30, 2016 , excluding $(5.9) million of unamortized net discount and $53.5 million of unamortized debt issuance costs, were as follows: Twelve month period ended: (Millions) September 30, 2017 $ 13.4 September 30, 2018 13.4 September 30, 2019 569.4 September 30, 2020 632.5 September 30, 2021 1,417.1 Thereafter 2,279.7 Total $ 4,925.5 |
Interest Expense, Net Disclosure | Interest expense was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Interest expense - long-term debt $ 89.6 $ 98.2 $ 270.7 $ 347.0 Interest expense - long-term lease obligations: Telecommunications network assets 124.8 128.2 377.1 224.2 Real estate contributed to pension plan 1.5 1.7 4.6 5.1 Impact of interest rate swaps 2.2 4.7 7.9 17.2 Interest on capital leases and other — 0.6 1.6 2.0 Less capitalized interest expense (1.7 ) (3.2 ) (8.4 ) (6.7 ) Total interest expense $ 216.4 $ 230.2 $ 653.5 $ 588.8 |
Derivatives_ Schedule of Deriva
Derivatives: Schedule of Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Set forth below is information related to interest rate swap agreements: (Millions, except for percentages) September 30, December 31, Designated portion, measured at fair value: Other current liabilities $ 15.4 $ 18.3 Other non-current liabilities $ 44.1 $ 33.4 Accumulated other comprehensive loss $ (3.2 ) $ (0.9 ) De-designated portion, unamortized value: Accumulated other comprehensive loss $ (12.4 ) $ (0.2 ) Weighted average fixed rate paid 2.93 % 2.99 % Variable rate received 0.53 % 0.35 % |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Changes in derivative instruments were as follows for the nine month periods ended September 30 : (Millions) 2016 2015 Changes in fair value of effective portion, net of tax (a) $ (10.8 ) $ (8.0 ) Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) $ 1.9 $ 6.1 (a) Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. |
Offsetting Liabilities | Information pertaining to derivative liabilities was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Recognized Liabilities Net Amount of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount September 30, 2016: Interest rate swaps $ 59.5 $ 59.5 $ — $ — $ 59.5 December 31, 2015: Interest rate swaps $ 51.7 $ 51.7 $ — $ — $ 51.7 |
Fair Value Measurements_ (Table
Fair Value Measurements: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of cash equivalents and interest rate swaps | The fair values of the investment in CS&L common stock, interest rate swaps and long-term debt were determined using the following inputs at: (Millions) September 30, December 31, Recorded at Fair Value in the Financial Statements: Investment in CS&L common stock - Level 1 $ — $ 549.2 Derivatives - Interest rate swap liabilities - Level 2 $ 59.5 $ 51.7 Not Recorded at Fair Value in the Financial Statements: (a) Long-term debt, including current maturities - Level 2 $ 4,849.1 $ 4,452.7 (a) Recognized at carrying value of $4,919.6 million and $5,233.3 million in long-term debt, including current maturities, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of September 30, 2016 and December 31, 2015 , respectively. |
Employee Benefit Plans and Po34
Employee Benefit Plans and Postretirement Benefits: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension And Other Postretirement Benefits, Net Periodic Benefit Costs, Disclosure | The components of pension benefit (income) expense (including provision for executive retirement agreements) were as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Benefits earned during the period $ 2.1 $ 2.4 $ 6.3 $ 7.1 Interest cost on benefit obligation 13.8 13.3 41.5 40.0 Net actuarial loss (gain) — — 2.4 (2.8 ) Amortization of prior service credit — (0.1 ) (0.2 ) (0.1 ) Expected return on plan assets (16.2 ) (17.5 ) (48.6 ) (52.6 ) Net periodic benefit (income) expense $ (0.3 ) $ (1.9 ) $ 1.4 $ (8.4 ) The components of postretirement benefits expense (income) were as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Interest cost on benefit obligation $ 0.4 $ 0.3 $ 1.0 $ 0.9 Amortization of net actuarial loss 0.1 0.2 0.2 0.7 Amortization of prior service credit (0.3 ) (0.7 ) (0.7 ) (3.3 ) Plan curtailment — (3.0 ) (5.5 ) (16.5 ) Net periodic benefit expense (income) $ 0.2 $ (3.2 ) $ (5.0 ) $ (18.2 ) |
Share-Based Compensation Plan35
Share-Based Compensation Plans: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The vesting periods and grant date fair value for restricted stock and restricted stock units issued were as follows for the nine month period ended September 30 , 2016 : (Number of shares in thousands, dollars in millions) Restricted stock: Vest ratably over a three-year service period 1,343.3 Vest two years from date of grant, service based 53.2 Vest three years from date of grant, service based 53.6 Vest one year from date of grant, service based - granted to non-employee directors 198.0 Total granted 1,648.1 Grant date fair value $ 9.7 Restricted stock units: Vest contingently at the end of a three-year performance period 1,277.4 Grant date fair value $ 6.8 |
Schedule of Nonvested Share Activity [Table Text Block] | Restricted stock activity for the nine month period ended September 30, 2016 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2015 3,252.4 $ 15.36 Granted 1,648.1 $ 5.88 Vested (1,102.3 ) $ 17.30 Forfeited (476.4 ) $ 10.99 Non-vested at September 30, 2016 3,321.8 $ 10.64 Restricted stock unit activity for the nine month period ended September 30, 2016 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2015 216.3 $ 16.16 Granted 1,277.4 $ 5.34 Vested (113.7 ) $ 21.67 Forfeited (167.2 ) $ 6.10 Non-vested at September 30, 2016 1,212.8 $ 5.63 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | A summary of share-based compensation expense was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Restricted stock and restricted units $ 4.2 $ 6.6 $ 15.5 $ 17.1 Employee savings plan (See Note 5) 5.0 4.7 15.7 14.9 Executive and management incentive compensation plans — 3.3 0.6 10.9 Share-based compensation expense $ 9.2 $ 14.6 $ 31.8 $ 42.9 |
Merger, Integration and Restr36
Merger, Integration and Restructuring Charges: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Merger Integration and Restructuring Charges [Abstract] | |
Schedule of Merger, Integration and Restructuring Activities | A summary of the merger, integration and restructuring charges recorded was as follows: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Merger and integration costs: Information technology conversion costs $ — $ 1.3 $ — $ 7.4 Costs related to REIT spin-off — 0.2 — 65.2 Network optimization and conversion costs 2.9 — 9.5 — Consulting and other costs — 1.6 1.0 1.9 Total merger and integration costs 2.9 3.1 10.5 74.5 Restructuring charges 2.5 5.3 12.8 15.7 Total merger, integration and restructuring charges $ 5.4 $ 8.4 $ 23.3 $ 90.2 |
Schedule of Restructuring and Reorganization Costs (Benefits), Net | The following is a summary of the activity related to the liabilities associated with merger, integration and restructuring charges at September 30 : (Millions) 2016 Balance, beginning of period $ 5.1 Merger, integration and restructuring charges 23.3 Cash outlays during the period (23.2 ) Balance, end of period $ 5.2 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive (Loss) Income: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive loss balances, net of tax, were as follows: (Millions) September 30, December 31, Pension and postretirement plans $ (0.7 ) $ 2.8 Unrealized holding loss on available-for-sale securities — (286.5 ) Unrealized holding losses on interest rate swaps: Designated portion (2.0 ) (0.6 ) De-designated portion (7.6 ) (0.1 ) Accumulated other comprehensive loss $ (10.3 ) $ (284.4 ) |
Changes in accumulated other comprehensive income, net of tax [Table Text Block] | Changes in accumulated other comprehensive loss balances, net of tax, were as follows: (Millions) Unrealized Holding Loss on Available-for-Sale Securities (Losses) Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2015 $ (286.5 ) $ (0.7 ) $ 2.8 $ (284.4 ) Other comprehensive income (loss) before reclassifications 156.1 (10.8 ) 0.3 145.6 Amounts reclassified from other accumulated comprehensive loss (a) 130.4 1.9 (3.8 ) 128.5 Balance at September 30, 2016 $ — $ (9.6 ) $ (0.7 ) $ (10.3 ) (a) See separate table below for details about these reclassifications. |
Reclassifications out of accumulated other comprehensive income [Table Text Block] | Reclassifications out of accumulated other comprehensive loss were as follows: (Millions) Amount Reclassified from Accumulated Other Comprehensive Loss Details about Accumulated Other Comprehensive Loss Components Three Months Ended Nine Months Ended Affected Line Item in the Consolidated Statements of Operations 2016 2015 2016 2015 Available-for-sale securities: Gain on disposal recognized in the period $ — $ — $ (51.5 ) $ — Net (loss) gain on disposal of investment in CS&L common stock Other-than-temporary impairment recognized in the period — — 181.9 — Other-than-temporary impairment loss on investment in CS&L common stock — — 130.4 — Net loss Interest rate swaps: Amortization of unrealized losses on de-designated interest rate swaps 0.8 2.9 3.0 10.0 Interest expense 0.8 2.9 3.0 10.0 Loss before income taxes (0.3 ) (1.2 ) (1.1 ) (3.9 ) Income tax benefit 0.5 1.7 1.9 6.1 Net loss Pension and postretirement plans: Plan curtailment — (3.0 ) (5.5 ) (16.4 ) (a) Amortization of net actuarial loss 0.1 0.2 0.2 0.7 (a) Amortization of prior service credits (0.3 ) (0.8 ) (0.9 ) (3.4 ) (a) (0.2 ) (3.6 ) (6.2 ) (19.1 ) Loss before income taxes — 1.6 2.4 7.3 Income tax benefit (0.2 ) (2.0 ) (3.8 ) (11.8 ) Net loss Total reclassifications for the period, net of tax $ 0.3 $ (0.3 ) $ 128.5 $ (5.7 ) Net loss (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit (income) expense (see Note 5). |
(Loss) Earnings Per Share_ Sche
(Loss) Earnings Per Share: Schedule of Earnings per Share, Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows: Three Months Ended Nine Months Ended (Millions, except per share amounts) 2016 2015 2016 2015 Basic and diluted loss per share: Numerator: Net loss $ (66.2 ) $ (7.2 ) $ (296.6 ) $ (113.1 ) Income allocable to participating securities (0.6 ) (0.5 ) (1.9 ) (3.0 ) Net loss attributable to common shares $ (66.8 ) $ (7.7 ) $ (298.5 ) $ (116.1 ) Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 96.2 102.9 98.7 102.6 Weighted average participating securities (3.4 ) (3.6 ) (5.1 ) (2.7 ) Weighted average basic and diluted shares outstanding 92.8 99.3 93.6 99.9 Basic and diluted loss per share: Net loss ($.72 ) ($.08 ) ($3.19 ) ($1.16 ) |
Segment Information_ (Tables)
Segment Information: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes our segment results: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Consumer and Small Business - ILEC: Revenues and sales $ 395.6 $ 401.8 $ 1,188.0 $ 1,207.7 Costs and expenses 183.5 178.0 522.4 503.0 Segment income 212.1 223.8 665.6 704.7 Wholesale: Revenues 155.2 168.7 478.3 517.2 Costs and expenses 44.3 44.8 135.0 139.2 Segment income 110.9 123.9 343.3 378.0 Enterprise: Revenues and sales 511.2 527.1 1,533.6 1,540.3 Costs and expenses 428.1 463.8 1,300.2 1,377.5 Segment income 83.1 63.3 233.4 162.8 Small Business - CLEC: Revenues 118.7 139.0 372.7 427.5 Costs and expenses 81.4 92.7 252.9 288.0 Segment income 37.3 46.3 119.8 139.5 Total segment revenues and sales 1,180.7 1,236.6 3,572.6 3,692.7 Total segment costs and expenses 737.3 779.3 2,210.5 2,307.7 Total segment income $ 443.4 $ 457.3 $ 1,362.1 $ 1,385.0 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The following table reconciles total segment revenues and sales to total consolidated revenues and sales: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Total segment revenues and sales $ 1,180.7 $ 1,236.6 $ 3,572.6 $ 3,692.7 Regulatory and other operating revenues and sales 164.2 230.6 505.3 542.8 Revenue and sales related to disposed businesses — 31.4 — 102.8 Total consolidated revenues and sales $ 1,344.9 $ 1,498.6 $ 4,077.9 $ 4,338.3 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table reconciles segment income to consolidated net loss: Three Months Ended Nine Months Ended (Millions) 2016 2015 2016 2015 Total segment income $ 443.4 $ 457.3 $ 1,362.1 $ 1,385.0 Revenues and sales related to disposed businesses — 31.4 — 102.8 Regulatory and other operating revenues and sales 164.2 230.6 505.3 542.8 Depreciation and amortization (321.0 ) (350.5 ) (934.0 ) (1,033.0 ) Other unassigned operating expenses (157.2 ) (168.3 ) (491.7 ) (550.7 ) Operating expenses related to disposed businesses — (22.0 ) — (69.2 ) Dividend income on CS&L common stock — 17.6 17.6 30.6 Other income (expense), net 0.6 (0.2 ) (2.5 ) 7.9 Net (loss) gain on disposal of investment in CS&L common stock (2.1 ) — 15.2 — Net (loss) gain on early extinguishment of debt (20.1 ) 7.6 (18.0 ) (35.8 ) Other-than-temporary impairment loss on investment in CS&L common stock — — (181.9 ) — Interest expense (216.4 ) (230.2 ) (653.5 ) (588.8 ) Income tax benefit 42.4 19.5 84.8 95.3 Net loss $ (66.2 ) $ (7.2 ) $ (296.6 ) $ (113.1 ) |
Supplemental Guarantor Inform40
Supplemental Guarantor Information: (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 253.6 $ 1,074.1 $ (8.8 ) $ 1,318.9 Product sales — 24.0 2.0 — 26.0 Total revenues and sales — 277.6 1,076.1 (8.8 ) 1,344.9 Costs and expenses: Cost of services — 108.2 577.6 (8.3 ) 677.5 Cost of products sold — 19.0 2.5 — 21.5 Selling, general and administrative — 32.1 158.2 (0.5 ) 189.8 Depreciation and amortization 3.3 76.0 241.7 — 321.0 Merger and integration costs — — 2.9 — 2.9 Restructuring charges — — 2.5 — 2.5 Total costs and expenses 3.3 235.3 985.4 (8.8 ) 1,215.2 Operating (loss) income (3.3 ) 42.3 90.7 — 129.7 Losses from consolidated subsidiaries (15.5 ) (26.4 ) (6.3 ) 48.2 — Other (expense) income, net 0.5 0.3 (0.2 ) — 0.6 Net loss on disposal of investment in CS&L common stock (2.1 ) — — — (2.1 ) Net loss on early extinguishment of debt (20.1 ) — — — (20.1 ) Intercompany interest income (expense) 31.7 (12.3 ) (19.4 ) — — Interest expense (90.1 ) (37.7 ) (88.6 ) — (216.4 ) Loss before income taxes (98.9 ) (33.8 ) (23.8 ) 48.2 (108.3 ) Income tax benefit (32.9 ) (2.8 ) (6.6 ) — (42.3 ) Net loss $ (66.0 ) $ (31.0 ) $ (17.2 ) $ 48.2 $ (66.0 ) Comprehensive loss $ (69.3 ) $ (31.0 ) $ (17.2 ) $ 48.2 $ (69.3 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 314.7 $ 1,142.5 $ (6.0 ) $ 1,451.2 Product sales — 41.6 5.8 — 47.4 Total revenues and sales — 356.3 1,148.3 (6.0 ) 1,498.6 Costs and expenses: Cost of services — 111.7 597.6 (5.4 ) 703.9 Cost of products sold — 36.6 4.9 — 41.5 Selling, general and administrative — 41.0 175.1 (0.6 ) 215.5 Depreciation and amortization 4.4 86.6 259.5 — 350.5 Merger and integration costs — — 3.1 — 3.1 Restructuring charges — 1.8 3.5 — 5.3 Total costs and expenses 4.4 277.7 1,043.7 (6.0 ) 1,319.8 Operating (loss) income (4.4 ) 78.6 104.6 — 178.8 Earnings (losses) from consolidated subsidiaries 15.4 (138.3 ) (5.9 ) 128.8 — Dividend income on CS&L common stock 17.6 — — — 17.6 Other (expense) income, net (0.4 ) 0.3 (0.1 ) — (0.2 ) Net gain on early extinguishment of debt 7.6 — — — 7.6 Intercompany interest income (expense) 28.3 (9.5 ) (18.8 ) — — Interest expense (101.2 ) (38.1 ) (90.9 ) — (230.2 ) Loss before income taxes (37.1 ) (107.0 ) (11.1 ) 128.8 (26.4 ) Income tax (benefit) expense (30.1 ) 2.2 8.5 — (19.4 ) Net loss $ (7.0 ) $ (109.2 ) $ (19.6 ) $ 128.8 $ (7.0 ) Comprehensive loss $ (223.2 ) $ (109.2 ) $ (19.6 ) $ 128.8 $ (223.2 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 763.7 $ 3,248.2 $ (21.1 ) $ 3,990.8 Product sales — 77.6 9.5 — 87.1 Total revenues and sales — 841.3 3,257.7 (21.1 ) 4,077.9 Costs and expenses: Cost of services — 309.7 1,723.1 (19.3 ) 2,013.5 Cost of products sold — 66.5 8.1 — 74.6 Selling, general and administrative — 107.6 483.6 (1.8 ) 589.4 Depreciation and amortization 10.5 225.2 698.3 — 934.0 Merger and integration costs — — 10.5 — 10.5 Restructuring charges — 1.8 11.0 — 12.8 Total costs and expenses 10.5 710.8 2,934.6 (21.1 ) 3,634.8 Operating (loss) income (10.5 ) 130.5 323.1 — 443.1 Losses from consolidated subsidiaries (11.2 ) (73.4 ) (20.4 ) 105.0 — Dividend income on CS&L common stock 17.6 — — — 17.6 Other expense, net (0.3 ) (0.2 ) (2.0 ) — (2.5 ) Net gain on disposal of investment in CS&L common stock 15.2 — — — 15.2 Net loss on early extinguishment of debt (18.0 ) — — — (18.0 ) Other-than-temporary impairment loss on investment in CS&L common stock (181.9 ) — — — (181.9 ) Intercompany interest income (expense) 89.3 (33.1 ) (56.2 ) — — Interest expense (273.5 ) (112.3 ) (267.7 ) — (653.5 ) Loss before income taxes (373.3 ) (88.5 ) (23.2 ) 105.0 (380.0 ) Income tax benefit (77.6 ) (5.8 ) (0.9 ) — (84.3 ) Net loss $ (295.7 ) $ (82.7 ) $ (22.3 ) $ 105.0 $ (295.7 ) Comprehensive loss $ (21.6 ) $ (82.7 ) $ (22.3 ) $ 105.0 $ (21.6 ) 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 883.6 $ 3,346.1 $ (19.5 ) $ 4,210.2 Product sales — 112.2 15.9 — 128.1 Total revenues and sales — 995.8 3,362.0 (19.5 ) 4,338.3 Costs and expenses: Cost of services — 344.8 1,741.0 (16.7 ) 2,069.1 Cost of products sold — 97.2 14.6 — 111.8 Selling, general and administrative — 115.9 541.8 (2.8 ) 654.9 Depreciation and amortization 13.7 255.1 764.2 — 1,033.0 Merger and integration costs — — 74.5 — 74.5 Restructuring charges — 4.1 11.6 — 15.7 Total costs and expenses 13.7 817.1 3,147.7 (19.5 ) 3,959.0 Operating (loss) income (13.7 ) 178.7 214.3 — 379.3 Earnings (losses) from consolidated subsidiaries 19.4 (192.0 ) (5.7 ) 178.3 — Dividend income on CS&L common stock 30.6 — — — 30.6 Other (expense) income, net (2.9 ) 0.5 10.3 — 7.9 Net loss on early extinguishment of debt (30.0 ) (5.3 ) (0.5 ) — (35.8 ) Intercompany interest income (expense) 92.7 (37.8 ) (54.9 ) — — Interest expense (343.5 ) (84.4 ) (160.9 ) — (588.8 ) (Loss) income before income taxes (247.4 ) (140.3 ) 2.6 178.3 (206.8 ) Income tax (benefit) expense (135.3 ) 9.5 31.1 — (94.7 ) Net loss $ (112.1 ) $ (149.8 ) $ (28.5 ) $ 178.3 $ (112.1 ) Comprehensive loss $ (435.9 ) $ (149.8 ) $ (28.5 ) $ 178.3 $ (435.9 ) |
Condensed Consolidating Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet (Unaudited) As of September 30, 2016 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 22.0 $ 1.8 $ 37.6 $ — $ 61.4 Accounts receivable, net — 199.2 450.5 — 649.7 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 529.7 1,915.5 (2,445.2 ) — Inventories — 68.4 11.9 — 80.3 Prepaid expenses and other 16.8 38.0 74.8 — 129.6 Total current assets 38.8 841.9 2,490.3 (2,450.0 ) 921.0 Investments in consolidated subsidiaries 6,199.8 290.0 229.4 (6,719.2 ) — Notes receivable - affiliate — 311.4 — (311.4 ) — Goodwill 1,636.7 1,364.4 1,212.5 — 4,213.6 Other intangibles, net 525.0 264.4 575.9 — 1,365.3 Net property, plant and equipment 7.3 1,225.6 4,005.9 — 5,238.8 Deferred income taxes — 317.4 236.6 (554.0 ) — Other assets 12.9 16.3 55.7 — 84.9 Total Assets $ 8,420.5 $ 4,631.4 $ 8,806.3 $ (10,034.6 ) $ 11,823.6 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 13.4 $ — $ — $ — $ 13.4 Current portion of long-term lease obligations — 48.3 116.2 — 164.5 Accounts payable — 105.3 222.5 — 327.8 Affiliates payable, net 2,460.1 — — (2,445.2 ) 14.9 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 42.0 141.9 — 183.9 Accrued taxes 0.8 17.4 59.4 — 77.6 Accrued interest 88.6 3.5 1.0 — 93.1 Other current liabilities 42.8 47.1 183.3 — 273.2 Total current liabilities 2,605.7 263.6 729.1 (2,450.0 ) 1,148.4 Long-term debt 4,753.1 99.6 — — 4,852.7 Long-term lease obligations — 1,418.1 3,457.6 — 4,875.7 Notes payable - affiliate — — 311.4 (311.4 ) — Deferred income taxes 753.7 — — (554.0 ) 199.7 Other liabilities 57.7 41.5 397.6 — 496.8 Total liabilities 8,170.2 1,822.8 4,895.7 (3,315.4 ) 11,573.3 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 565.8 3,150.8 825.3 (3,976.1 ) 565.8 Accumulated other comprehensive loss (10.3 ) — (0.7 ) 0.7 (10.3 ) (Accumulated deficit) retained earnings (305.2 ) (381.6 ) 3,004.1 (2,622.5 ) (305.2 ) Total equity 250.3 2,808.6 3,910.6 (6,719.2 ) 250.3 Total Liabilities and Equity $ 8,420.5 $ 4,631.4 $ 8,806.3 $ (10,034.6 ) $ 11,823.6 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet (Unaudited) As of December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ — $ 1.1 $ 33.5 $ (3.3 ) $ 31.3 Accounts receivable, net — 219.4 424.5 — 643.9 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 449.4 2,486.8 (2,936.2 ) — Inventories — 69.1 10.4 — 79.5 Prepaid expenses and other 321.8 32.6 64.4 (298.2 ) 120.6 Total current assets 321.8 776.4 3,019.6 (3,242.5 ) 875.3 Investments in consolidated subsidiaries 6,214.0 363.5 256.7 (6,834.2 ) — Notes receivable - affiliate — 314.1 — (314.1 ) — Goodwill 1,636.7 1,364.4 1,212.5 — 4,213.6 Other intangibles, net 554.3 282.8 667.6 — 1,504.7 Net property, plant and equipment 8.4 1,249.7 4,021.7 — 5,279.8 Investment in CS&L common stock 549.2 — — — 549.2 Deferred income taxes — 299.4 217.1 (516.5 ) — Other assets 14.2 56.3 25.0 — 95.5 Total Assets $ 9,298.6 $ 4,706.6 $ 9,420.2 $ (10,907.3 ) $ 12,518.1 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 5.9 $ — $ — $ — $ 5.9 Current portion of long-term lease obligations — 44.4 108.3 — 152.7 Accounts payable — 93.2 336.9 — 430.1 Affiliates payable, net 2,951.3 — — (2,936.2 ) 15.1 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 27.0 166.9 — 193.9 Accrued taxes 0.3 11.3 370.7 (298.2 ) 84.1 Accrued interest 75.3 1.9 1.2 — 78.4 Other current liabilities 42.6 47.8 216.5 — 306.9 Total current liabilities 3,075.4 225.6 1,205.3 (3,239.2 ) 1,267.1 Long-term debt 5,065.1 99.5 — — 5,164.6 Long-term lease obligations — 1,455.2 3,545.2 — 5,000.4 Notes payable - affiliate — — 314.1 (314.1 ) — Deferred income taxes 803.9 — — (516.5 ) 287.4 Other liabilities 47.8 25.2 419.2 — 492.2 Total liabilities 8,992.2 1,805.5 5,483.8 (4,069.8 ) 12,211.7 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 600.3 3,150.9 825.3 (3,976.2 ) 600.3 Accumulated other comprehensive (loss) income (284.4 ) — 2.8 (2.8 ) (284.4 ) (Accumulated deficit) retained earnings (9.5 ) (289.2 ) 3,026.4 (2,737.2 ) (9.5 ) Total equity 306.4 2,901.1 3,936.4 (6,837.5 ) 306.4 Total Liabilities and Equity $ 9,298.6 $ 4,706.6 $ 9,420.2 $ (10,907.3 ) $ 12,518.1 |
Condensed Consolidating Statement of Cash Flows [Table Text Block] | Condensed Consolidating Statement of Cash Flows (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash provided from operating activities $ 123.7 $ 297.2 $ 202.1 $ — $ 623.0 Cash Flows from Investing Activities: Additions to property, plant and equipment (0.5 ) (132.5 ) (620.4 ) — (753.4 ) Proceeds from sale of property — 1.0 5.3 — 6.3 Other, net (4.0 ) — (2.5 ) — (6.5 ) Net cash used in investing activities (4.5 ) (131.5 ) (617.6 ) — (753.6 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (73.9 ) — — — (73.9 ) Repayments of debt and swaps (2,919.6 ) — — — (2,919.6 ) Proceeds of debt issuance 3,340.0 — — — 3,340.0 Debt issuance costs (12.3 ) — — — (12.3 ) Intercompany transactions, net (424.2 ) (134.0 ) 554.9 3.3 — Payments under long-term lease obligations — (33.3 ) (79.9 ) — (113.2 ) Payments under capital lease obligations — (0.4 ) (52.7 ) — (53.1 ) Other, net (7.2 ) 2.7 (2.7 ) — (7.2 ) Net cash (used in) provided from financing activities (97.2 ) (165.0 ) 419.6 3.3 160.7 Increase in cash and cash equivalents 22.0 0.7 4.1 3.3 30.1 Cash and Cash Equivalents: Beginning of period — 1.1 33.5 (3.3 ) 31.3 End of period $ 22.0 $ 1.8 $ 37.6 $ — $ 61.4 13. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows (Unaudited) Nine Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash (used in) provided from operating activities $ (46.7 ) $ 206.2 $ 597.8 $ — $ 757.3 Cash Flows from Investing Activities: Additions to property, plant and equipment (0.8 ) (122.9 ) (620.7 ) — (744.4 ) Grant funds received for broadband stimulus projects 23.5 — — — 23.5 Network expansion funded by Connect America Fund - Phase I — (16.5 ) (50.9 ) — (67.4 ) Change in restricted cash 6.7 — — — 6.7 Other, net (4.1 ) 0.1 12.9 — 8.9 Net cash provided from (used in) investing activities 25.3 (139.3 ) (658.7 ) — (772.7 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (375.1 ) — — — (375.1 ) Payment received from CS&L in spin-off 1,035.0 — — — 1,035.0 Repayments of debt and swaps (1,646.7 ) (450.0 ) (1.9 ) — (2,098.6 ) Proceeds of debt issuance 1,620.0 — — — 1,620.0 Debt issuance costs (4.3 ) — — — (4.3 ) Intercompany transactions, net (550.0 ) 394.0 130.0 26.0 — Payments under long-term lease obligations — (11.3 ) (48.0 ) — (59.3 ) Payments under capital lease obligations — (4.2 ) (20.5 ) — (24.7 ) Other, net (8.2 ) 2.7 (2.7 ) — (8.2 ) Net cash provided from (used in) financing activities 70.7 (68.8 ) 56.9 26.0 84.8 Increase (decrease) in cash and cash equivalents 49.3 (1.9 ) (4.0 ) 26.0 69.4 Cash and Cash Equivalents: Beginning of period — 3.8 50.0 (26.0 ) 27.8 End of period $ 49.3 $ 1.9 $ 46.0 $ — $ 97.2 |
Preparation of Interim Financ41
Preparation of Interim Financial Statements: (Details) | 9 Months Ended |
Sep. 30, 2016Mi | |
Number of Fiber Route Miles | 129,000 |
Windstream Holdings, Inc. | |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 100.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Mar. 29, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
(Discount) premium on long-term debt, net (b) | [1] | $ (5.9) | $ 4.6 | |
Unamortized debt issuance costs (b) | [1] | (53.5) | (62.8) | |
Carrying value | 4,866.1 | 5,170.5 | ||
Less current maturities | (13.4) | (5.9) | ||
Total long-term debt | 4,852.7 | 5,164.6 | ||
Senior secured credit facility, Tranche B5 - variable rates, due August 8, 2019 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | 573.8 | 578.2 | ||
Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility | [2] | 747 | 0 | |
(Discount) premium on long-term debt, net (b) | [2] | $ (15) | ||
Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Senior secured credit facility, Revolving line of credit | 625 | 300 | ||
2017 Notes - 7.875%, due November 1, 2017 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 0 | 904.1 | ||
2020 Notes - 7.750%, due October 15, 2020 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 700 | 700 | ||
2021 Notes - 7.750% due October 1, 2021 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 809.3 | 920.4 | ||
2022 Notes - 7.500% due June 1, 2022 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 441.2 | 485.9 | ||
2023 Notes - 7.500% due April 1, 2023 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 343.5 | 540.1 | ||
2023 Notes - 6.375%, due August 1, 2023 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 585.7 | 700 | ||
Windstream Holdings of the Midwest, Inc. | Windstream Holdings of the Midwest, Inc. - 6.75%, due April 1, 2028 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debentures and notes issued by subsidiaries | [3] | $ 100 | $ 100 | |
[1] | The net (discount) premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. | |||
[2] | If the maturity of the revolving line of credit is not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan will be April 24, 2020; provided further, if the 2020 Notes have not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan will be July 15, 2020. | |||
[3] | These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. |
Long-Term Debt Interest Rate (D
Long-Term Debt Interest Rate (Details) | Sep. 30, 2016 |
Unsecured Debt | 2017 Notes - 7.875%, due November 1, 2017 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.875% |
Unsecured Debt | 2020 Notes - 7.750%, due October 15, 2020 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.75% |
Unsecured Debt | 2021 Notes - 7.750% due October 1, 2021 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.75% |
Unsecured Debt | 2022 Notes - 7.500% due June 1, 2022 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% |
Unsecured Debt | 2023 Notes - 7.500% due April 1, 2023 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% |
Unsecured Debt | 2023 Notes - 6.375%, due August 1, 2023 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.375% |
Windstream Holdings of the Midwest, Inc. | Secured Debt | Windstream Holdings of the Midwest, Inc. - 6.75%, due April 1, 2028 | |
Debt Disclosure [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.75% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Mar. 29, 2016 | May 27, 2015 | Apr. 24, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Aug. 23, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | [1] | $ 5,900,000 | $ 5,900,000 | $ (4,600,000) | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,700,000 | 2,700,000 | |||||||||
Net (loss) gain on early extinguishment of debt | 20,100,000 | $ (7,600,000) | $ 18,000,000 | $ 35,800,000 | |||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | ||||||||||
Dividends, Cash | $ 43,600,000 | ||||||||||
Unamortized debt issuance costs | [1] | $ (53,500,000) | $ (53,500,000) | (62,800,000) | |||||||
Leverage ration under covenant | 4.5 | 4.5 | |||||||||
Interest coverage ratio under covenant | 2.75 | 2.75 | |||||||||
Secured Debt | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior secured credit facilities, new borrowings | [2] | $ 600,000,000 | |||||||||
Debt Instrument, Unamortized Discount (Premium), Net | [2] | 15,000,000 | |||||||||
Debt Issuance Cost | [2] | 10,700,000 | |||||||||
Senior Secured Credit Facilities, Repriced | [2] | $ 597,000,000 | $ 597,000,000 | ||||||||
Line of Credit Facility, Increase (Decrease), Net | [2] | 150,000,000 | |||||||||
Third party fees for early redemption | [2] | 6,700,000 | |||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 24,400,000 | 24,400,000 | |||||||||
Net (loss) gain on early extinguishment of debt | 3,100,000 | ||||||||||
Senior secured credit facility | [2] | 747,000,000 | 747,000,000 | 0 | |||||||
Secured Debt | Senior secured credit facility, Tranche B5 - variable rates, due August 8, 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior secured credit facility | 573,800,000 | 573,800,000 | 578,200,000 | ||||||||
Secured Debt | Tranche B4, Notes 2020 [Member] [Domain] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Debt | $ 241,800,000 | ||||||||||
Unsecured Debt | Partial Repurchase of Senior Unsecured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | 466,800,000 | 253,700,000 | 466,800,000 | 253,700,000 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 5,300,000 | 3,300,000 | 3,300,000 | ||||||||
Net (loss) gain on early extinguishment of debt | (7,600,000) | ||||||||||
Unsecured Debt | 2017 Notes - 7.875%, due November 1, 2017 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | 441,100,000 | $ 369,500,000 | $ 93,500,000 | $ 369,500,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | 7.875% | |||||||||
Third party fees for early redemption | $ 0 | 0 | $ 2,400,000 | 0 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 5,700,000 | ||||||||||
Net (loss) gain on early extinguishment of debt | 29,600,000 | 9,300,000 | 78,300,000 | 9,300,000 | |||||||
Repayments of Debt | 477,500,000 | $ 97,800,000 | 396,400,000 | ||||||||
Discount (Premium) on early extinguishment of debt | (26,900,000) | 0 | (26,900,000) | 0 | |||||||
Debt Repurchase, Total Consideration Paid per $1,000 | 1,082.50 | ||||||||||
Debt Repurchase, Principal Amount on Which Total Consideration Paid | 1,000 | ||||||||||
Debt Repurchase, Early Tender Payment | $ 30 | ||||||||||
Notes Payable | 0 | 0 | 904,100,000 | ||||||||
Write off of Deferred Debt Issuance Cost | 1,700,000 | 1,500,000 | 5,400,000 | 1,500,000 | |||||||
Amortization of Debt Discount (Premium) | (1,000,000) | (800,000) | (3,000,000) | (800,000) | |||||||
Unsecured Debt | 2021 Notes - 7.750% due October 1, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 111,100,000 | $ 111,100,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||||||
Repayments of Debt | $ 93,700,000 | ||||||||||
Notes Payable | $ 809,300,000 | 809,300,000 | 920,400,000 | ||||||||
Unsecured Debt | 2022 Notes - 7.500% due June 1, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 44,800,000 | $ 44,800,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |||||||||
Repayments of Debt | $ 36,200,000 | ||||||||||
Notes Payable | $ 441,200,000 | 441,200,000 | 485,900,000 | ||||||||
Unsecured Debt | 2023 Notes - 7.500% due April 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 196,600,000 | $ 196,600,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |||||||||
Repayments of Debt | $ 168,500,000 | ||||||||||
Notes Payable | $ 343,500,000 | 343,500,000 | 540,100,000 | ||||||||
Unsecured Debt | 2023 Notes - 6.375%, due August 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 114,300,000 | $ 114,300,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | |||||||||
Repayments of Debt | $ 99,600,000 | ||||||||||
Notes Payable | $ 585,700,000 | 585,700,000 | $ 700,000,000 | ||||||||
Unsecured Debt | Notes 2018 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | ||||||||||
Net (loss) gain on early extinguishment of debt | 0 | 0 | 0 | 21,700,000 | |||||||
Debt instrument, Redemption Price Payable per $1,000 | $ 0 | ||||||||||
Discount (Premium) on early extinguishment of debt | 0 | 0 | 0 | (16,300,000) | |||||||
Notes Payable | 400,000,000 | ||||||||||
Write off of Deferred Debt Issuance Cost | 4,000,000 | 0 | 0 | 0 | 4,000,000 | ||||||
Amortization of Debt Discount (Premium) | (1,400,000) | 0 | $ 0 | 0 | $ (1,400,000) | ||||||
Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Lines of Credit | 672,000,000 | ||||||||||
Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | 1,250,000,000 | |||||||||
Letters of Credit Outstanding, Amount | 24,200,000 | 24,200,000 | |||||||||
Letters of Credit under Revolving Line of Credit, Maximum | 30,000,000 | 30,000,000 | |||||||||
Line of Credit Facility, Increase, Additional Borrowings | 2,605,000,000 | ||||||||||
Repayments of Lines of Credit | 2,280,000,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 600,800,000 | $ 600,800,000 | |||||||||
Long-term Debt, Weighted Average Interest Rate | 2.54% | 2.44% | 2.54% | 2.44% | |||||||
Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ||||||||||
Minimum | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.19% | 2.25% | 2.19% | |||||||
Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||||
Maximum | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | 4.50% | |||||||
PAETEC Holding Corp. | Unsecured Debt | Notes, December 2018 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 450,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.875% | ||||||||||
Net (loss) gain on early extinguishment of debt | $ 0 | $ 0 | $ 0 | $ 5,300,000 | |||||||
Debt instrument, Redemption Price Payable per $1,000 | $ 1,049.38 | ||||||||||
Discount (Premium) on early extinguishment of debt | 0 | 0 | 0 | (22,200,000) | |||||||
Amortization of Debt Discount (Premium) | $ 16,900,000 | 0 | 0 | $ 0 | 16,900,000 | ||||||
Cinergy Communications Company [Member] | Secured Debt | Notes 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Repurchased Face Amount | $ 1,900,000 | ||||||||||
Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Quarterly Amortization Payment on Term Loans, Stated As A Percent of Initial Principal Amount | 0.25% | ||||||||||
Base Rate [Member] | Secured Debt | Minimum | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||
Base Rate [Member] | Secured Debt | Minimum | Senior secured credit facility, Tranche B5 - variable rates, due August 8, 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||
Base Rate [Member] | Secured Debt | Maximum | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||||||||
Base Rate [Member] | Secured Debt | Maximum | Senior secured credit facility, Tranche B5 - variable rates, due August 8, 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | 4.00% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | Senior secured credit facility, Tranche B5 - variable rates, due August 8, 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net (loss) gain on early extinguishment of debt | $ (15,900,000) | $ (15,900,000) | |||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.60% | ||||||||||
Dividends, Cash | $ 1,035,000,000 | ||||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Lines of Credit | 752,200,000 | ||||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | Windstream Holdings, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior secured credit facility | $ 1,700,000,000 | ||||||||||
Interest Expense [Member] | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Third party fees for early redemption | $ 6,100,000 | ||||||||||
Long-term Debt [Member] | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Third party fees for early redemption | 600,000 | ||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 21,300,000 | $ 21,300,000 | |||||||||
[1] | The net (discount) premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. | ||||||||||
[2] | If the maturity of the revolving line of credit is not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan will be April 24, 2020; provided further, if the 2020 Notes have not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan will be July 15, 2020. |
Long-term Debt and Lease Obli45
Long-term Debt and Lease Obligations: Schedule of Extinguishment of Debt (Details) - USD ($) $ in Millions | May 27, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Extinguishment of Debt [Line Items] | |||||
Net (loss) gain on early extinguishment of debt | $ (20.1) | $ 7.6 | $ (18) | $ (35.8) | |
Secured Debt | Senior Notes [Member] | |||||
Extinguishment of Debt [Line Items] | |||||
Premium on early redemption | 0 | 0 | 0 | (6.6) | |
Third-party fees | 0 | 0 | 0 | (0.7) | |
Unamortized (discount) premium on original issuance | (1.7) | 0 | (1.7) | 0 | |
Unamortized debt issuance costs on original issuance | (1.4) | 0 | (1.4) | (8.6) | |
Net (loss) gain on early extinguishment of debt | (3.1) | 0 | (3.1) | (15.9) | |
Unsecured Debt | Partial repurchases of 2017 Notes | |||||
Extinguishment of Debt [Line Items] | |||||
Premium on early redemption | (26.9) | 0 | (26.9) | 0 | |
Premium on repurchases | 0 | (7) | (40.6) | (7) | |
Third-party fees | 0 | 0 | (2.4) | 0 | |
Unamortized (discount) premium on original issuance | (1) | (0.8) | (3) | (0.8) | |
Unamortized debt issuance costs on original issuance | (1.7) | (1.5) | (5.4) | (1.5) | |
Net (loss) gain on early extinguishment of debt | (29.6) | (9.3) | (78.3) | (9.3) | |
Unsecured Debt | Notes 2018 [Member] | |||||
Extinguishment of Debt [Line Items] | |||||
Premium on early redemption | 0 | 0 | 0 | (16.3) | |
Unamortized (discount) premium on original issuance | $ (1.4) | 0 | 0 | 0 | (1.4) |
Unamortized debt issuance costs on original issuance | (4) | 0 | 0 | 0 | (4) |
Net (loss) gain on early extinguishment of debt | 0 | 0 | 0 | (21.7) | |
Unsecured Debt | Partial Repurchase of 2021, 2022, 2023 Notes [Domain] | |||||
Extinguishment of Debt [Line Items] | |||||
Premium on early redemption | 14.8 | 17.9 | 68.7 | 17.9 | |
Unamortized (discount) premium on original issuance | 0.1 | 0.3 | 0.9 | 0.3 | |
Unamortized debt issuance costs on original issuance | (2.3) | (1.3) | (6.2) | (1.3) | |
Net (loss) gain on early extinguishment of debt | 12.6 | 16.9 | 63.4 | 16.9 | |
Unsecured Debt | Cinergy Communications Company [Member] | |||||
Extinguishment of Debt [Line Items] | |||||
Premium on early redemption | 0 | 0 | 0 | (0.5) | |
Net (loss) gain on early extinguishment of debt | 0 | 0 | 0 | (0.5) | |
PAETEC Holding Corp. | Unsecured Debt | Notes, December 2018 [Member] | |||||
Extinguishment of Debt [Line Items] | |||||
Premium on early redemption | 0 | 0 | 0 | (22.2) | |
Unamortized (discount) premium on original issuance | $ 16.9 | 0 | 0 | 0 | 16.9 |
Net (loss) gain on early extinguishment of debt | $ 0 | $ 0 | $ 0 | $ (5.3) |
Long-term Debt and Lease Obli46
Long-term Debt and Lease Obligations: Maturity of Long-term Debt (Details) $ in Millions | Sep. 30, 2016USD ($) |
Long-term Debt, Rolling Maturity [Abstract] | |
September 30, 2017 | $ 13.4 |
September 30, 2018 | 13.4 |
September 30, 2019 | 569.4 |
September 30, 2020 | 632.5 |
September 30, 2021 | 1,417.1 |
Thereafter | 2,279.7 |
Total | $ 4,925.5 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Expense [Abstract] | ||||
Interest expense - long-term debt | $ 89.6 | $ 98.2 | $ 270.7 | $ 347 |
Interest expense - long-term lease obligation - Telecommunications network assets | 124.8 | 128.2 | 377.1 | 224.2 |
Interest expense - long-term lease obligation - Real estate contributed to pension plan | 1.5 | 1.7 | 4.6 | 5.1 |
Impact of interest rate swaps | 2.2 | 4.7 | 7.9 | 17.2 |
Interest on capital leases and other | 0 | 0.6 | 1.6 | 2 |
Less capitalized interest expense | (1.7) | (3.2) | (8.4) | (6.7) |
Total interest expense | $ 216.4 | $ 230.2 | $ 653.5 | $ 588.8 |
Derivatives_ Additional informa
Derivatives: Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 21, 2016 | Sep. 20, 2016 | Dec. 31, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 63,800,000 | $ 63,800,000 | ||||||
Other Expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $ 500,000 | $ (400,000) | $ (600,000) | $ (3,900,000) | ||||
Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Number of Instruments Held | 4 | 4 | 3 | |||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 200,000,000 | $ 675,000,000 | ||||||
Derivative, Average Fixed Interest Rate | 2.984% | 2.984% | 1.1275% | 3.604% | ||||
Derivative, Weighted Average Fixed Interest Rate | 2.93% | 2.93% | 2.99% | |||||
Variable rate received | 0.53% | 0.53% | 0.35% | |||||
Debt Instrument, Credit Rating | A | |||||||
Designated as Hedging Instrument [Member] | Interest rate swaps | Other Comprehensive Income (Loss) | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Changes in fair value of effective portion, net of tax (a) | [1] | $ (10,800,000) | (8,000,000) | |||||
De-Designated Hedging Instrument [Member] | Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (7,500,000) | (7,500,000) | ||||||
De-Designated Hedging Instrument [Member] | Interest rate swaps | Other Comprehensive Income (Loss) | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) | [1] | 1,900,000 | $ 6,100,000 | |||||
Other current liabilities | Designated as Hedging Instrument [Member] | Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 15,400,000 | 15,400,000 | $ 18,300,000 | |||||
Other noncurrent liabilities | Designated as Hedging Instrument [Member] | Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 44,100,000 | 44,100,000 | 33,400,000 | |||||
Accumulated Other Comprehensive Income (Loss) | Designated as Hedging Instrument [Member] | Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | (3,200,000) | (3,200,000) | (900,000) | |||||
Accumulated Other Comprehensive Income (Loss) | De-Designated Hedging Instrument [Member] | Interest rate swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ (12,400,000) | $ (12,400,000) | $ (200,000) | |||||
[1] | Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. |
Derivatives_ Offsetting (Detail
Derivatives: Offsetting (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Amount of Recognized Liabilities | $ 59.5 | $ 51.7 |
Net Amount of Liabilities Presented in the Consolidated Balance Sheets | 59.5 | 51.7 |
Financial Instruments, Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities | 0 | 0 |
Cash Collateral Received, Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities | 0 | 0 |
Net Amount | $ 59.5 | $ 51.7 |
Fair Value Measurements_ (Detai
Fair Value Measurements: (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | |||
Derivatives - Interest rate swap liabilities - Level 2 | $ 59.5 | $ 51.7 | |
Fair Value, Measurements, Recurring | Level 1 measurements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | |||
Investment in CS&L common stock - Level 1 | 0 | 549.2 | |
Fair Value, Measurements, Recurring | Level 2 measurements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | |||
Long-term debt, including current maturities - Level 2 | [1] | 4,849.1 | 4,452.7 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | |||
Derivatives - Interest rate swap liabilities - Level 2 | $ 59.5 | $ 51.7 | |
[1] | Recognized at carrying value of $4,919.6 million and $5,233.3 million in long-term debt, including current maturities, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of September 30, 2016 and December 31, 2015, respectively. |
Fair Value Measurements_ Fair V
Fair Value Measurements: Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Option, Events Triggering Election, Reasons | No | |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 4,919.6 | $ 5,233.3 |
Other liabilities | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease in fair value of interest rate swaps to reflect non-performance risk | $ 3.6 | $ 2.9 |
Employee Benefit Plans and Po52
Employee Benefit Plans and Postretirement Benefits: Components of Pension Expense and Postretirement Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefits earned during the period | $ 2.1 | $ 2.4 | $ 6.3 | $ 7.1 | |
Interest cost on benefit obligation | 13.8 | 13.3 | 41.5 | 40 | |
Net actuarial loss (gain) | 0 | 0 | 2.4 | (2.8) | |
Amortization of prior service credit | 0 | (0.1) | (0.2) | (0.1) | |
Expected return on plan assets | (16.2) | (17.5) | (48.6) | (52.6) | |
Net periodic benefit (income) expense | (0.3) | (1.9) | 1.4 | (8.4) | |
Postretirement Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Interest cost on benefit obligation | 0.4 | 0.3 | 1 | 0.9 | |
Amortization of net actuarial loss | 0.1 | 0.2 | 0.2 | 0.7 | |
Amortization of prior service credit | (0.3) | (0.7) | (0.7) | (3.3) | |
Plan curtailment | 0 | (3) | $ (13.5) | (5.5) | (16.5) |
Net periodic benefit (income) expense | $ 0.2 | $ (3.2) | $ (5) | $ (18.2) |
Employee Benefit Plans and Po53
Employee Benefit Plans and Postretirement Benefits: (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | ||||
Company's 401(k) Employer Match Expense | $ 5 | $ 4.7 | $ 15.7 | $ 14.9 | |
Annual matching contribution to defined contribution plan, Common Stock | 3.2 | ||||
Defined Contribution Plan, Contributions by Employer, Common Stock, Value | $ 24 | ||||
Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan curtailments | $ 0 | 3 | $ 13.5 | 5.5 | $ 16.5 |
Postretirement Benefit Contributions | 1.9 | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0.2 | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 1.3 | ||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 0.9 | ||||
Cost of Sales [Member] | Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan curtailments | 2.4 | 10.7 | |||
Selling, General and Administrative Expenses [Member] | Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan curtailments | 0.6 | 2.8 | |||
Accumulated Other Comprehensive Loss | Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan curtailments | $ 3 | 13.4 | |||
Other liabilities | Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan curtailments | $ 0.1 |
Share-Based Compensation Plan54
Share-Based Compensation Plans: Vesting Periods and Grant Date Fair Value for Restricted Stock and Restricted Stock Units Issued (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total granted | 1,648,100 |
Grant date fair value | $ | $ 9.7 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value | $ | $ 6.8 |
Vest ratably over a three-year service period | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,343,300 |
Vest two years from date of grant, service based | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 53,200 |
Vest three years from date of grant, service based | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 53,600 |
Vest one year from date of grant, service based - granted to non-employee directors | Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 198,000 |
Vest contingently at the end of a three-year performance period | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,277,400 |
Share-Based Compensation Plan55
Share-Based Compensation Plans: Restricted Stock and Restricted Stock Unit Activity (Details) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Restricted Stock | |
(Thousands) Underlying Number of Shares [Roll Forward] | |
Beginning balance, Underlying Number of Shares | shares | 3,252,400 |
Granted | shares | 1,648,100 |
Vested | shares | (1,102,300) |
Forfeited | shares | (476,400) |
Ending balance, Underlying Number of Shares | shares | 3,321,800 |
Weighted Average Fair Value | |
Beginning balance, Per Share Weighted Average Fair Value | $ / shares | $ 15.36 |
Granted | $ / shares | 5.88 |
Vested | $ / shares | 17.30 |
Forfeited | $ / shares | 10.99 |
Ending balance, Per Share Weighted Average Fair Value | $ / shares | $ 10.64 |
Restricted Stock Units (RSUs) | |
(Thousands) Underlying Number of Shares [Roll Forward] | |
Beginning balance, Underlying Number of Shares | shares | 216,300 |
Granted | shares | 1,277,400 |
Vested | shares | (113,700) |
Forfeited | shares | (167,200) |
Ending balance, Underlying Number of Shares | shares | 1,212,800 |
Weighted Average Fair Value | |
Beginning balance, Per Share Weighted Average Fair Value | $ / shares | $ 16.16 |
Granted | $ / shares | 5.34 |
Vested | $ / shares | 21.67 |
Forfeited | $ / shares | 6.10 |
Ending balance, Per Share Weighted Average Fair Value | $ / shares | $ 5.63 |
Share-Based Compensation Plan56
Share-Based Compensation Plans: Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee savings plan (See Note 5) | $ 5 | $ 4.7 | $ 15.7 | $ 14.9 |
Executive and management incentive compensation plans | 0 | 3.3 | 0.6 | 10.9 |
Share-based compensation expense | 9.2 | 14.6 | 31.8 | 42.9 |
Restricted Stock and Restricted Stock Units [Member] | Common Stock and Additional Paid-In Capital | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Restricted stock and restricted units | $ 4.2 | $ 6.6 | $ 15.5 | $ 17.1 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Operating Target Consideration Period | 3 years | |||
Unrecognized compensation expense | $ 25.7 | $ 25.7 | ||
Unrecognized compensation expense, weighted average vesting period (in years) | 1 year 10 months | |||
Share-based compensation expense | $ 16.8 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based restricted stock units, as a percentage of the award | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based restricted stock units, as a percentage of the award | 150.00% | |||
Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance under the Windstream 2006 Equity Incentive Plan | 24.3 | 24.3 | ||
Available shares for grant | 6.1 | 6.1 | ||
Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 16.8 | |||
Common Stock and Additional Paid-In Capital | Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 4.2 | $ 6.6 | $ 15.5 | $ 17.1 |
PAETEC Holding Corp. | Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Available shares for grant | 0.3 | 0.3 |
Merger, Integration and Restr58
Merger, Integration and Restructuring Charges: (Details) - USD ($) $ in Millions | Apr. 26, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Restructuring Integration and Merger Cost [Abstract] | |||||
Information technology conversion costs | $ 0 | $ 1.3 | $ 0 | $ 7.4 | |
Costs related to REIT spin-off | 0 | 0.2 | 0 | 65.2 | |
Network optimization and conversion costs | 2.9 | 0 | 9.5 | 0 | |
Consulting and other costs | 0 | 1.6 | 1 | 1.9 | |
Total merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 | |
Restructuring charges | 2.5 | 5.3 | 12.8 | 15.7 | |
Total merger, integration and restructuring charges | 5.4 | 8.4 | 23.3 | 90.2 | |
Restructuring Integration and Merger Cost [Roll Forward] | |||||
Balance, beginning of period | 5.1 | ||||
Merger, integration and restructuring charges | 23.3 | ||||
Cash outlays during the period | (23.2) | ||||
Balance, end of period | 5.2 | 5.2 | |||
Merger, Integration and Restructuring Cost, Cost Incurred to Date, Net of Tax | 3.3 | 5.2 | 14.3 | 44.5 | |
Workforce Reduction [Domain] | |||||
Restructuring Integration and Merger Cost [Roll Forward] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 11.3 | 10.8 | 11.3 | 10.8 | |
Other Restructuring [Member] | |||||
Restructuring Integration and Merger Cost [Roll Forward] | |||||
Restructuring and Related Cost, Cost Incurred to Date | $ 3.1 | $ 3.1 | |||
Restructuring Announcement [Member] | |||||
Restructuring Integration and Merger Cost [Roll Forward] | |||||
Balance, end of period | 3.2 | 3.2 | |||
Other integration [Member] | |||||
Restructuring Integration and Merger Cost [Roll Forward] | |||||
Balance, end of period | $ 2 | $ 2 | |||
Windstream Holdings, Inc. | |||||
Restructuring Integration and Merger Cost [Roll Forward] | |||||
Share conversion factor - post stock split | 1 | ||||
Share conversion factor - pre stock split | 6 |
Other-Than-Temporary Impairme59
Other-Than-Temporary Impairment Loss on Investment in CS&L Common Stock: (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Apr. 24, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Other-than-temporary impairment loss on investment in CS&L common stock | $ 0 | $ 0 | $ (181.9) | $ 0 | ||
Common Stock [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair Value | $ 653.8 | |||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.60% |
Net Gain on Disposal of Inves60
Net Gain on Disposal of Investment in CS&L Common Stock (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of Debt-for-Equity Exchanges | 2 | |||
Net (loss) gain on disposal of investment in CS&L common stock | $ (2.1) | $ 0 | $ 15.2 | $ 0 |
Line of Credit | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Repayments of Lines of Credit | $ 672 |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income [Line Items] | ||
Pension and postretirement plans | $ (0.7) | $ 2.8 |
Unrealized holding loss on available-for-sale securities | 0 | (286.5) |
Unrealized holding losses on interest rate swaps: | ||
Accumulated other comprehensive loss | (10.3) | (284.4) |
Interest rate swaps | ||
Unrealized holding losses on interest rate swaps: | ||
Designated portion | (2) | (0.6) |
De-designated portion | $ (7.6) | $ (0.1) |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive (Loss) Income: Accumulated Other Comprehensive (Loss) Income (Roll-Forward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Accumulated other comprehensive loss [Roll Forward] | ||||||
Beginning balance | $ (284.4) | |||||
Other comprehensive income (loss) before reclassifications | 145.6 | |||||
Amounts reclassified from other accumulated comprehensive loss (a) | $ 0.3 | $ (0.3) | 128.5 | [1] | $ (5.7) | |
Ending balance | (10.3) | (10.3) | ||||
Unrealized Holding Loss on Available-for-Sale Securities | ||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||
Beginning balance | (286.5) | |||||
Other comprehensive income (loss) before reclassifications | 156.1 | |||||
Amounts reclassified from other accumulated comprehensive loss (a) | [1] | 130.4 | ||||
Ending balance | 0 | 0 | ||||
(Losses) Gains on Interest Rate Swaps | ||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||
Beginning balance | (0.7) | |||||
Other comprehensive income (loss) before reclassifications | (10.8) | |||||
Amounts reclassified from other accumulated comprehensive loss (a) | [1] | 1.9 | ||||
Ending balance | (9.6) | (9.6) | ||||
Pension and Postretirement Plans | ||||||
Accumulated other comprehensive loss [Roll Forward] | ||||||
Beginning balance | 2.8 | |||||
Other comprehensive income (loss) before reclassifications | 0.3 | |||||
Amounts reclassified from other accumulated comprehensive loss (a) | (0.2) | $ (2) | (3.8) | [1] | $ (11.8) | |
Ending balance | $ (0.7) | $ (0.7) | ||||
[1] | See separate table below for details about these reclassifications. |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive (Loss) Income: Accumulated Other Comprehensive (Loss) Income (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other-than-temporary impairment loss on investment in CS&L common stock | $ 0 | $ 0 | $ 181.9 | $ 0 | ||
Net loss | (66.8) | (7.7) | (298.5) | (116.1) | ||
Interest expense | 216.4 | 230.2 | 653.5 | 588.8 | ||
Income tax benefit | (42.4) | (19.5) | (84.8) | (95.3) | ||
Net loss | 0.3 | (0.3) | 128.5 | [1] | (5.7) | |
Interest rate swaps: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net loss | [1] | 1.9 | ||||
Accumulated Defined Benefit Plans Adjustment, Plan Curtailment Attributable to Parent [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | 0 | (3) | (5.5) | (16.4) | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | 0.1 | 0.2 | 0.2 | 0.7 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [2] | (0.3) | (0.8) | (0.9) | (3.4) | |
Pension and postretirement plans: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.2) | (3.6) | (6.2) | (19.1) | ||
Income tax benefit | 0 | 1.6 | 2.4 | 7.3 | ||
Net loss | (0.2) | (2) | (3.8) | [1] | (11.8) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net (loss) gain on disposal of investment in CS&L common stock | 0 | 0 | (51.5) | 0 | ||
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | 181.9 | 0 | ||
Net loss | 0 | 0 | 130.4 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net loss | 0.5 | 1.7 | 1.9 | 6.1 | ||
Loss before income taxes | 0.8 | 2.9 | 3 | 10 | ||
Income tax benefit | (0.3) | (1.2) | (1.1) | (3.9) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps | Interest rate swaps: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ 0.8 | $ 2.9 | $ 3 | $ 10 | ||
[1] | See separate table below for details about these reclassifications. | |||||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit (income) expense (see Note 5). |
Reconciliation of Net Income an
Reconciliation of Net Income and Number of Shares Used in Computing Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net loss | $ (66.2) | $ (7.2) | $ (296.6) | $ (113.1) |
Income allocable to participating securities | (0.6) | (0.5) | (1.9) | (3) |
Net loss attributable to common shares | $ (66.8) | $ (7.7) | $ (298.5) | $ (116.1) |
Denominator: | ||||
Weighted average shares outstanding | 96.2 | 102.9 | 98.7 | 102.6 |
Weighted average participating securities | (3.4) | (3.6) | (5.1) | (2.7) |
Weighted average basic and diluted shares outstanding | 92.8 | 99.3 | 93.6 | 99.9 |
Net loss | $ (0.72) | $ (0.08) | $ (3.19) | $ (1.16) |
(Loss) Earnings Per Share_ Addi
(Loss) Earnings Per Share: Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.4 | 0.5 | 0.4 | 0.4 |
Segment Information_ (Details)
Segment Information: (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Costs and Expenses | $ 1,215.5 | $ 1,320.1 | $ 3,636.2 | $ 3,960.6 |
Operating income | 129.4 | 178.5 | $ 441.7 | 377.7 |
Number of Reportable Segments | segment | 4 | |||
Consumer and Small Business - ILEC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales | 395.6 | 401.8 | $ 1,188 | 1,207.7 |
Costs and Expenses | 183.5 | 178 | 522.4 | 503 |
Operating income | 212.1 | 223.8 | 665.6 | 704.7 |
Wholesale [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales | 155.2 | 168.7 | 478.3 | 517.2 |
Costs and Expenses | 44.3 | 44.8 | 135 | 139.2 |
Operating income | 110.9 | 123.9 | 343.3 | 378 |
Enterprise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales | 511.2 | 527.1 | 1,533.6 | 1,540.3 |
Costs and Expenses | 428.1 | 463.8 | 1,300.2 | 1,377.5 |
Operating income | 83.1 | 63.3 | 233.4 | 162.8 |
Small Business - CLEC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales | 118.7 | 139 | 372.7 | 427.5 |
Costs and Expenses | 81.4 | 92.7 | 252.9 | 288 |
Operating income | 37.3 | 46.3 | 119.8 | 139.5 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales | 1,180.7 | 1,236.6 | 3,572.6 | 3,692.7 |
Costs and Expenses | 737.3 | 779.3 | 2,210.5 | 2,307.7 |
Operating income | $ 443.4 | $ 457.3 | $ 1,362.1 | $ 1,385 |
Segment Information_ Reconcilia
Segment Information: Reconciliation of Total Segment Revenues and Sales to Total Consolidated Revenue and Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total consolidated revenues and sales | $ 1,344.9 | $ 1,498.6 | $ 4,077.9 | $ 4,338.3 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues and sales | 0 | 31.4 | 0 | 102.8 |
Regulatory and other operating revenues and sales | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues and sales | 164.2 | 230.6 | 505.3 | 542.8 |
Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues and sales | $ 1,180.7 | $ 1,236.6 | $ 3,572.6 | $ 3,692.7 |
Segment Information_ Reconcil68
Segment Information: Reconciliation of Segment Income to Consolidated Net (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ 129.4 | $ 178.5 | $ 441.7 | $ 377.7 |
Depreciation and amortization | (321) | (350.5) | (934) | (1,033) |
Costs and Expenses | (1,215.5) | (1,320.1) | (3,636.2) | (3,960.6) |
Dividend income on CS&L common stock | 0 | 17.6 | 17.6 | 30.6 |
Other income (expense), net | 0.6 | (0.2) | (2.5) | 7.9 |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 0 | 15.2 | 0 |
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (35.8) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | (181.9) | 0 |
Interest expense | (216.4) | (230.2) | (653.5) | (588.8) |
Income tax benefit | 42.4 | 19.5 | 84.8 | 95.3 |
Net loss | (66.2) | (7.2) | (296.6) | (113.1) |
Regulatory and other operating revenues and sales | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues and sales | 164.2 | 230.6 | 505.3 | 542.8 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | 443.4 | 457.3 | 1,362.1 | 1,385 |
Revenues and sales | 1,180.7 | 1,236.6 | 3,572.6 | 3,692.7 |
Costs and Expenses | (737.3) | (779.3) | (2,210.5) | (2,307.7) |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Costs and Expenses | (157.2) | (168.3) | (491.7) | (550.7) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenues and sales | 0 | 31.4 | 0 | 102.8 |
Costs and Expenses | $ 0 | $ (22) | $ 0 | $ (69.2) |
Supplemental Guarantor Inform69
Supplemental Guarantor Information: Condensed Consolidating Statement of Comprehensive Income (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues and sales: | ||||
Service revenues | $ 1,318.9 | $ 1,451.2 | $ 3,990.8 | $ 4,210.2 |
Product sales | 26 | 47.4 | 87.1 | 128.1 |
Total revenues and sales | 1,344.9 | 1,498.6 | 4,077.9 | 4,338.3 |
Costs and expenses: | ||||
Cost of services | 677.5 | 703.9 | 2,013.5 | 2,069.1 |
Cost of products sold | 21.5 | 41.5 | 74.6 | 111.8 |
Selling, general and administrative | 190.1 | 215.8 | 590.8 | 656.5 |
Depreciation and amortization | 321 | 350.5 | 934 | 1,033 |
Merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 |
Restructuring charges | 2.5 | 5.3 | 12.8 | 15.7 |
Total costs and expenses | 1,215.5 | 1,320.1 | 3,636.2 | 3,960.6 |
Operating (loss) income | 129.4 | 178.5 | 441.7 | 377.7 |
Dividend income on CS&L common stock | 0 | 17.6 | 17.6 | 30.6 |
Other (expense) income, net | 0.6 | (0.2) | (2.5) | 7.9 |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 0 | 15.2 | 0 |
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (35.8) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | (181.9) | 0 |
Interest expense | (216.4) | (230.2) | (653.5) | (588.8) |
(Loss) income before income taxes | (108.6) | (26.7) | (381.4) | (208.4) |
Income tax (benefit) expense | (42.4) | (19.5) | (84.8) | (95.3) |
Net (loss) income | (66.2) | (7.2) | (296.6) | (113.1) |
Comprehensive income (loss) | (69.5) | (223.4) | (22.5) | (436.9) |
Eliminations | ||||
Revenues and sales: | ||||
Service revenues | (8.8) | (6) | (21.1) | (19.5) |
Product sales | 0 | 0 | 0 | 0 |
Total revenues and sales | (8.8) | (6) | (21.1) | (19.5) |
Costs and expenses: | ||||
Cost of services | (8.3) | (5.4) | (19.3) | (16.7) |
Cost of products sold | 0 | 0 | 0 | 0 |
Selling, general and administrative | (0.5) | (0.6) | (1.8) | (2.8) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Merger and integration costs | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Total costs and expenses | (8.8) | (6) | (21.1) | (19.5) |
Operating (loss) income | 0 | 0 | 0 | 0 |
Earnings (losses) from consolidated subsidiaries | 48.2 | 128.8 | 105 | 178.3 |
Dividend income on CS&L common stock | 0 | 0 | 0 | |
Other (expense) income, net | 0 | 0 | 0 | 0 |
Net (loss) gain on disposal of investment in CS&L common stock | 0 | 0 | ||
Net (loss) gain on early extinguishment of debt | 0 | 0 | 0 | 0 |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | |||
Intercompany interest income (expense) | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
(Loss) income before income taxes | 48.2 | 128.8 | 105 | 178.3 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Net (loss) income | 48.2 | 128.8 | 105 | 178.3 |
Comprehensive income (loss) | 48.2 | 128.8 | 105 | 178.3 |
Consolidated | ||||
Revenues and sales: | ||||
Service revenues | 1,318.9 | 1,451.2 | 3,990.8 | 4,210.2 |
Product sales | 26 | 47.4 | 87.1 | 128.1 |
Total revenues and sales | 1,344.9 | 1,498.6 | 4,077.9 | 4,338.3 |
Costs and expenses: | ||||
Cost of services | 677.5 | 703.9 | 2,013.5 | 2,069.1 |
Cost of products sold | 21.5 | 41.5 | 74.6 | 111.8 |
Selling, general and administrative | 189.8 | 215.5 | 589.4 | 654.9 |
Depreciation and amortization | 321 | 350.5 | 934 | 1,033 |
Merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 |
Restructuring charges | 2.5 | 5.3 | 12.8 | 15.7 |
Total costs and expenses | 1,215.2 | 1,319.8 | 3,634.8 | 3,959 |
Operating (loss) income | 129.7 | 178.8 | 443.1 | 379.3 |
Earnings (losses) from consolidated subsidiaries | 0 | 0 | 0 | 0 |
Dividend income on CS&L common stock | 0 | 17.6 | 17.6 | 30.6 |
Other (expense) income, net | 0.6 | (0.2) | (2.5) | 7.9 |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 0 | 15.2 | 0 |
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (35.8) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | 0 | (181.9) | 0 |
Intercompany interest income (expense) | 0 | 0 | 0 | 0 |
Interest expense | (216.4) | (230.2) | (653.5) | (588.8) |
(Loss) income before income taxes | (108.3) | (26.4) | (380) | (206.8) |
Income tax (benefit) expense | (42.3) | (19.4) | (84.3) | (94.7) |
Net (loss) income | (66) | (7) | (295.7) | (112.1) |
Comprehensive income (loss) | (69.3) | (223.2) | (21.6) | (435.9) |
Windstream Services, LLC | ||||
Revenues and sales: | ||||
Service revenues | 0 | 0 | 0 | 0 |
Product sales | 0 | 0 | 0 | 0 |
Total revenues and sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of services | 0 | 0 | 0 | 0 |
Cost of products sold | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 3.3 | 4.4 | 10.5 | 13.7 |
Merger and integration costs | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Total costs and expenses | 3.3 | 4.4 | 10.5 | 13.7 |
Operating (loss) income | (3.3) | (4.4) | (10.5) | (13.7) |
Earnings (losses) from consolidated subsidiaries | (15.5) | 15.4 | (11.2) | 19.4 |
Dividend income on CS&L common stock | 17.6 | 17.6 | 30.6 | |
Other (expense) income, net | 0.5 | (0.4) | (0.3) | (2.9) |
Net (loss) gain on disposal of investment in CS&L common stock | (2.1) | 15.2 | ||
Net (loss) gain on early extinguishment of debt | (20.1) | 7.6 | (18) | (30) |
Other-than-temporary impairment loss on investment in CS&L common stock | (181.9) | |||
Intercompany interest income (expense) | 31.7 | 28.3 | 89.3 | 92.7 |
Interest expense | (90.1) | (101.2) | (273.5) | (343.5) |
(Loss) income before income taxes | (98.9) | (37.1) | (373.3) | (247.4) |
Income tax (benefit) expense | (32.9) | (30.1) | (77.6) | (135.3) |
Net (loss) income | (66) | (7) | (295.7) | (112.1) |
Comprehensive income (loss) | (69.3) | (223.2) | (21.6) | (435.9) |
Guarantors | ||||
Revenues and sales: | ||||
Service revenues | 253.6 | 314.7 | 763.7 | 883.6 |
Product sales | 24 | 41.6 | 77.6 | 112.2 |
Total revenues and sales | 277.6 | 356.3 | 841.3 | 995.8 |
Costs and expenses: | ||||
Cost of services | 108.2 | 111.7 | 309.7 | 344.8 |
Cost of products sold | 19 | 36.6 | 66.5 | 97.2 |
Selling, general and administrative | 32.1 | 41 | 107.6 | 115.9 |
Depreciation and amortization | 76 | 86.6 | 225.2 | 255.1 |
Merger and integration costs | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 1.8 | 1.8 | 4.1 |
Total costs and expenses | 235.3 | 277.7 | 710.8 | 817.1 |
Operating (loss) income | 42.3 | 78.6 | 130.5 | 178.7 |
Earnings (losses) from consolidated subsidiaries | (26.4) | (138.3) | (73.4) | (192) |
Dividend income on CS&L common stock | 0 | 0 | 0 | |
Other (expense) income, net | 0.3 | 0.3 | (0.2) | 0.5 |
Net (loss) gain on disposal of investment in CS&L common stock | 0 | 0 | ||
Net (loss) gain on early extinguishment of debt | 0 | 0 | 0 | (5.3) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | |||
Intercompany interest income (expense) | (12.3) | (9.5) | (33.1) | (37.8) |
Interest expense | (37.7) | (38.1) | (112.3) | (84.4) |
(Loss) income before income taxes | (33.8) | (107) | (88.5) | (140.3) |
Income tax (benefit) expense | (2.8) | 2.2 | (5.8) | 9.5 |
Net (loss) income | (31) | (109.2) | (82.7) | (149.8) |
Comprehensive income (loss) | (31) | (109.2) | (82.7) | (149.8) |
Non-Guarantors | ||||
Revenues and sales: | ||||
Service revenues | 1,074.1 | 1,142.5 | 3,248.2 | 3,346.1 |
Product sales | 2 | 5.8 | 9.5 | 15.9 |
Total revenues and sales | 1,076.1 | 1,148.3 | 3,257.7 | 3,362 |
Costs and expenses: | ||||
Cost of services | 577.6 | 597.6 | 1,723.1 | 1,741 |
Cost of products sold | 2.5 | 4.9 | 8.1 | 14.6 |
Selling, general and administrative | 158.2 | 175.1 | 483.6 | 541.8 |
Depreciation and amortization | 241.7 | 259.5 | 698.3 | 764.2 |
Merger and integration costs | 2.9 | 3.1 | 10.5 | 74.5 |
Restructuring charges | 2.5 | 3.5 | 11 | 11.6 |
Total costs and expenses | 985.4 | 1,043.7 | 2,934.6 | 3,147.7 |
Operating (loss) income | 90.7 | 104.6 | 323.1 | 214.3 |
Earnings (losses) from consolidated subsidiaries | (6.3) | (5.9) | (20.4) | (5.7) |
Dividend income on CS&L common stock | 0 | 0 | 0 | |
Other (expense) income, net | (0.2) | (0.1) | (2) | 10.3 |
Net (loss) gain on disposal of investment in CS&L common stock | 0 | 0 | ||
Net (loss) gain on early extinguishment of debt | 0 | 0 | 0 | (0.5) |
Other-than-temporary impairment loss on investment in CS&L common stock | 0 | |||
Intercompany interest income (expense) | (19.4) | (18.8) | (56.2) | (54.9) |
Interest expense | (88.6) | (90.9) | (267.7) | (160.9) |
(Loss) income before income taxes | (23.8) | (11.1) | (23.2) | 2.6 |
Income tax (benefit) expense | (6.6) | 8.5 | (0.9) | 31.1 |
Net (loss) income | (17.2) | (19.6) | (22.3) | (28.5) |
Comprehensive income (loss) | $ (17.2) | $ (19.6) | $ (22.3) | $ (28.5) |
Supplemental Guarantor Inform70
Supplemental Guarantor Information: Condensed Consolidating Balance Sheet (Unaudited) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||||
Cash and cash equivalents | $ 61.4 | $ 31.3 | $ 97.2 | $ 27.8 |
Accounts receivable, net | 649.7 | 643.9 | ||
Inventories | 80.3 | 79.5 | ||
Prepaid expenses and other | 129.6 | 120.6 | ||
Total current assets | 921 | 875.3 | ||
Goodwill | 4,213.6 | 4,213.6 | ||
Other intangibles, net | 1,365.3 | 1,504.7 | ||
Net property, plant and equipment | 5,238.8 | 5,279.8 | ||
Investment in CS&L common stock | 0 | 549.2 | ||
Other assets | 84.9 | 95.5 | ||
Total Assets | 11,823.6 | 12,518.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 13.4 | 5.9 | ||
Current portion of long-term lease obligations | 164.5 | 152.7 | ||
Accounts payable | 327.8 | 430.1 | ||
Advance payments and customer deposits | 183.9 | 193.9 | ||
Accrued taxes | 77.6 | 84.1 | ||
Accrued interest | 93.1 | 78.4 | ||
Other current liabilities | 288.1 | 322 | ||
Total current liabilities | 1,148.4 | 1,267.1 | ||
Long-term debt | 4,852.7 | 5,164.6 | ||
Long-term lease obligations | 4,875.7 | 5,000.4 | ||
Deferred income taxes | 199.7 | 287.4 | ||
Other liabilities | 496.8 | 492.2 | ||
Total liabilities | 11,573.3 | 12,211.7 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 569.3 | 602.9 | ||
Accumulated other comprehensive (loss) income | (10.3) | (284.4) | ||
(Accumulated deficit) retained earnings | (308.7) | (12.1) | ||
Total equity | 250.3 | 306.4 | ||
Total Liabilities and Equity | 11,823.6 | 12,518.1 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | (3.3) | 0 | (26) |
Accounts receivable, net | 0 | 0 | ||
Notes receivable - affiliate | (4.8) | (4.8) | ||
Affiliates receivable, net | (2,445.2) | (2,936.2) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 0 | (298.2) | ||
Total current assets | (2,450) | (3,242.5) | ||
Investments in consolidated subsidiaries | (6,719.2) | (6,834.2) | ||
Notes receivable - affiliate | (311.4) | (314.1) | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Investment in CS&L common stock | 0 | |||
Deferred income taxes | (554) | (516.5) | ||
Other assets | 0 | 0 | ||
Total Assets | (10,034.6) | (10,907.3) | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of long-term lease obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Affiliates payable, net | (2,445.2) | (2,936.2) | ||
Notes payable - affiliate | (4.8) | (4.8) | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0 | (298.2) | ||
Accrued interest | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (2,450) | (3,239.2) | ||
Long-term debt | 0 | 0 | ||
Long-term lease obligations | 0 | 0 | ||
Notes payable - affiliate | (311.4) | (314.1) | ||
Deferred income taxes | (554) | (516.5) | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (3,315.4) | (4,069.8) | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | (121.3) | (121.3) | ||
Additional paid-in capital | (3,976.1) | (3,976.2) | ||
Accumulated other comprehensive (loss) income | 0.7 | (2.8) | ||
(Accumulated deficit) retained earnings | (2,622.5) | (2,737.2) | ||
Total equity | (6,719.2) | (6,837.5) | ||
Total Liabilities and Equity | (10,034.6) | (10,907.3) | ||
Consolidated | ||||
Current Assets: | ||||
Cash and cash equivalents | 61.4 | 31.3 | 97.2 | 27.8 |
Accounts receivable, net | 649.7 | 643.9 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 80.3 | 79.5 | ||
Prepaid expenses and other | 129.6 | 120.6 | ||
Total current assets | 921 | 875.3 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 4,213.6 | 4,213.6 | ||
Other intangibles, net | 1,365.3 | 1,504.7 | ||
Net property, plant and equipment | 5,238.8 | 5,279.8 | ||
Investment in CS&L common stock | 0 | 549.2 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 84.9 | 95.5 | ||
Total Assets | 11,823.6 | 12,518.1 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 13.4 | 5.9 | ||
Current portion of long-term lease obligations | 164.5 | 152.7 | ||
Accounts payable | 327.8 | 430.1 | ||
Affiliates payable, net | 14.9 | 15.1 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 183.9 | 193.9 | ||
Accrued taxes | 77.6 | 84.1 | ||
Accrued interest | 93.1 | 78.4 | ||
Other current liabilities | 273.2 | 306.9 | ||
Total current liabilities | 1,148.4 | 1,267.1 | ||
Long-term debt | 4,852.7 | 5,164.6 | ||
Long-term lease obligations | 4,875.7 | 5,000.4 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 199.7 | 287.4 | ||
Other liabilities | 496.8 | 492.2 | ||
Total liabilities | 11,573.3 | 12,211.7 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 565.8 | 600.3 | ||
Accumulated other comprehensive (loss) income | (10.3) | (284.4) | ||
(Accumulated deficit) retained earnings | (305.2) | (9.5) | ||
Total equity | 250.3 | 306.4 | ||
Total Liabilities and Equity | 11,823.6 | 12,518.1 | ||
Windstream Services, LLC | ||||
Current Assets: | ||||
Cash and cash equivalents | 22 | 0 | 49.3 | 0 |
Accounts receivable, net | 0 | 0 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 16.8 | 321.8 | ||
Total current assets | 38.8 | 321.8 | ||
Investments in consolidated subsidiaries | 6,199.8 | 6,214 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 1,636.7 | 1,636.7 | ||
Other intangibles, net | 525 | 554.3 | ||
Net property, plant and equipment | 7.3 | 8.4 | ||
Investment in CS&L common stock | 549.2 | |||
Deferred income taxes | 0 | 0 | ||
Other assets | 12.9 | 14.2 | ||
Total Assets | 8,420.5 | 9,298.6 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 13.4 | 5.9 | ||
Current portion of long-term lease obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Affiliates payable, net | 2,460.1 | 2,951.3 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0.8 | 0.3 | ||
Accrued interest | 88.6 | 75.3 | ||
Other current liabilities | 42.8 | 42.6 | ||
Total current liabilities | 2,605.7 | 3,075.4 | ||
Long-term debt | 4,753.1 | 5,065.1 | ||
Long-term lease obligations | 0 | 0 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 753.7 | 803.9 | ||
Other liabilities | 57.7 | 47.8 | ||
Total liabilities | 8,170.2 | 8,992.2 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 565.8 | 600.3 | ||
Accumulated other comprehensive (loss) income | (10.3) | (284.4) | ||
(Accumulated deficit) retained earnings | (305.2) | (9.5) | ||
Total equity | 250.3 | 306.4 | ||
Total Liabilities and Equity | 8,420.5 | 9,298.6 | ||
Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 1.8 | 1.1 | 1.9 | 3.8 |
Accounts receivable, net | 199.2 | 219.4 | ||
Notes receivable - affiliate | 4.8 | 4.8 | ||
Affiliates receivable, net | 529.7 | 449.4 | ||
Inventories | 68.4 | 69.1 | ||
Prepaid expenses and other | 38 | 32.6 | ||
Total current assets | 841.9 | 776.4 | ||
Investments in consolidated subsidiaries | 290 | 363.5 | ||
Notes receivable - affiliate | 311.4 | 314.1 | ||
Goodwill | 1,364.4 | 1,364.4 | ||
Other intangibles, net | 264.4 | 282.8 | ||
Net property, plant and equipment | 1,225.6 | 1,249.7 | ||
Investment in CS&L common stock | 0 | |||
Deferred income taxes | 317.4 | 299.4 | ||
Other assets | 16.3 | 56.3 | ||
Total Assets | 4,631.4 | 4,706.6 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of long-term lease obligations | 48.3 | 44.4 | ||
Accounts payable | 105.3 | 93.2 | ||
Affiliates payable, net | 0 | 0 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 42 | 27 | ||
Accrued taxes | 17.4 | 11.3 | ||
Accrued interest | 3.5 | 1.9 | ||
Other current liabilities | 47.1 | 47.8 | ||
Total current liabilities | 263.6 | 225.6 | ||
Long-term debt | 99.6 | 99.5 | ||
Long-term lease obligations | 1,418.1 | 1,455.2 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 41.5 | 25.2 | ||
Total liabilities | 1,822.8 | 1,805.5 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | 39.4 | 39.4 | ||
Additional paid-in capital | 3,150.8 | 3,150.9 | ||
Accumulated other comprehensive (loss) income | 0 | 0 | ||
(Accumulated deficit) retained earnings | (381.6) | (289.2) | ||
Total equity | 2,808.6 | 2,901.1 | ||
Total Liabilities and Equity | 4,631.4 | 4,706.6 | ||
Non-Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 37.6 | 33.5 | $ 46 | $ 50 |
Accounts receivable, net | 450.5 | 424.5 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 1,915.5 | 2,486.8 | ||
Inventories | 11.9 | 10.4 | ||
Prepaid expenses and other | 74.8 | 64.4 | ||
Total current assets | 2,490.3 | 3,019.6 | ||
Investments in consolidated subsidiaries | 229.4 | 256.7 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 1,212.5 | 1,212.5 | ||
Other intangibles, net | 575.9 | 667.6 | ||
Net property, plant and equipment | 4,005.9 | 4,021.7 | ||
Investment in CS&L common stock | 0 | |||
Deferred income taxes | 236.6 | 217.1 | ||
Other assets | 55.7 | 25 | ||
Total Assets | 8,806.3 | 9,420.2 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of long-term lease obligations | 116.2 | 108.3 | ||
Accounts payable | 222.5 | 336.9 | ||
Affiliates payable, net | 0 | 0 | ||
Notes payable - affiliate | 4.8 | 4.8 | ||
Advance payments and customer deposits | 141.9 | 166.9 | ||
Accrued taxes | 59.4 | 370.7 | ||
Accrued interest | 1 | 1.2 | ||
Other current liabilities | 183.3 | 216.5 | ||
Total current liabilities | 729.1 | 1,205.3 | ||
Long-term debt | 0 | 0 | ||
Long-term lease obligations | 3,457.6 | 3,545.2 | ||
Notes payable - affiliate | 311.4 | 314.1 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 397.6 | 419.2 | ||
Total liabilities | 4,895.7 | 5,483.8 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | 81.9 | 81.9 | ||
Additional paid-in capital | 825.3 | 825.3 | ||
Accumulated other comprehensive (loss) income | (0.7) | 2.8 | ||
(Accumulated deficit) retained earnings | 3,004.1 | 3,026.4 | ||
Total equity | 3,910.6 | 3,936.4 | ||
Total Liabilities and Equity | $ 8,806.3 | $ 9,420.2 |
Supplemental Guarantor Inform71
Supplemental Guarantor Information: Condensed Consolidating Statement of Cash Flows (Unaudited) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | $ 622.1 | $ 756.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (753.4) | (744.4) |
Grant funds received for broadband stimulus projects | 0 | 23.5 |
Network expansion funded by Connect America Fund - Phase I | 0 | (67.4) |
Change in restricted cash | 0 | 6.7 |
Other, net | (6.5) | 8.9 |
Net cash provided from (used in) investing activities | (753.6) | (772.7) |
Cash Flows from Financing Activities: | ||
Payment received from CS&L in spin-off | 0 | 1,035 |
Repayments of debt and swaps | (2,919.6) | (2,098.6) |
Proceeds of debt issuance | 3,340 | 1,620 |
Debt issuance costs | (12.3) | (4.3) |
Payments under long-term lease obligations | (113.2) | (59.3) |
Payments under capital lease obligations | (53.1) | (24.7) |
Other, net | (7.2) | (8.2) |
Net cash (used in) provided from financing activities | 161.6 | 85.8 |
Increase (decrease) in cash and cash equivalents | 30.1 | 69.4 |
Cash and Cash Equivalents: | ||
Beginning of period | 31.3 | 27.8 |
End of period | 61.4 | 97.2 |
Eliminations | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 0 | 0 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | 0 | 0 |
Proceeds from sale of property | 0 | |
Grant funds received for broadband stimulus projects | 0 | |
Network expansion funded by Connect America Fund - Phase I | 0 | |
Change in restricted cash | 0 | |
Other, net | 0 | 0 |
Net cash provided from (used in) investing activities | 0 | 0 |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 |
Payment received from CS&L in spin-off | 0 | |
Repayments of debt and swaps | 0 | 0 |
Proceeds of debt issuance | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany transactions, net | 3.3 | 26 |
Payments under long-term lease obligations | 0 | 0 |
Payments under capital lease obligations | 0 | 0 |
Other, net | 0 | 0 |
Net cash (used in) provided from financing activities | 3.3 | 26 |
Increase (decrease) in cash and cash equivalents | 3.3 | 26 |
Cash and Cash Equivalents: | ||
Beginning of period | (3.3) | (26) |
End of period | 0 | 0 |
Consolidated | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 623 | 757.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (753.4) | (744.4) |
Proceeds from sale of property | 6.3 | |
Grant funds received for broadband stimulus projects | 0 | 23.5 |
Network expansion funded by Connect America Fund - Phase I | 0 | (67.4) |
Change in restricted cash | 0 | 6.7 |
Other, net | (6.5) | 8.9 |
Net cash provided from (used in) investing activities | (753.6) | (772.7) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (73.9) | (375.1) |
Payment received from CS&L in spin-off | 0 | 1,035 |
Repayments of debt and swaps | (2,919.6) | (2,098.6) |
Proceeds of debt issuance | 3,340 | 1,620 |
Debt issuance costs | (12.3) | (4.3) |
Intercompany transactions, net | 0 | 0 |
Payments under long-term lease obligations | (113.2) | (59.3) |
Payments under capital lease obligations | (53.1) | (24.7) |
Other, net | (7.2) | (8.2) |
Net cash (used in) provided from financing activities | 160.7 | 84.8 |
Increase (decrease) in cash and cash equivalents | 30.1 | 69.4 |
Cash and Cash Equivalents: | ||
Beginning of period | 31.3 | 27.8 |
End of period | 61.4 | 97.2 |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 123.7 | (46.7) |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (0.5) | (0.8) |
Proceeds from sale of property | 0 | |
Grant funds received for broadband stimulus projects | 23.5 | |
Network expansion funded by Connect America Fund - Phase I | 0 | |
Change in restricted cash | 6.7 | |
Other, net | (4) | (4.1) |
Net cash provided from (used in) investing activities | (4.5) | 25.3 |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (73.9) | (375.1) |
Payment received from CS&L in spin-off | 1,035 | |
Repayments of debt and swaps | (2,919.6) | (1,646.7) |
Proceeds of debt issuance | 3,340 | 1,620 |
Debt issuance costs | (12.3) | (4.3) |
Intercompany transactions, net | (424.2) | (550) |
Payments under long-term lease obligations | 0 | 0 |
Payments under capital lease obligations | 0 | 0 |
Other, net | (7.2) | (8.2) |
Net cash (used in) provided from financing activities | (97.2) | 70.7 |
Increase (decrease) in cash and cash equivalents | 22 | 49.3 |
Cash and Cash Equivalents: | ||
Beginning of period | 0 | 0 |
End of period | 22 | 49.3 |
Guarantors | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 297.2 | 206.2 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (132.5) | (122.9) |
Proceeds from sale of property | 1 | |
Grant funds received for broadband stimulus projects | 0 | |
Network expansion funded by Connect America Fund - Phase I | (16.5) | |
Change in restricted cash | 0 | |
Other, net | 0 | 0.1 |
Net cash provided from (used in) investing activities | (131.5) | (139.3) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 |
Payment received from CS&L in spin-off | 0 | |
Repayments of debt and swaps | 0 | (450) |
Proceeds of debt issuance | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany transactions, net | (134) | 394 |
Payments under long-term lease obligations | (33.3) | (11.3) |
Payments under capital lease obligations | (0.4) | (4.2) |
Other, net | 2.7 | 2.7 |
Net cash (used in) provided from financing activities | (165) | (68.8) |
Increase (decrease) in cash and cash equivalents | 0.7 | (1.9) |
Cash and Cash Equivalents: | ||
Beginning of period | 1.1 | 3.8 |
End of period | 1.8 | 1.9 |
Non-Guarantors | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 202.1 | 597.8 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (620.4) | (620.7) |
Proceeds from sale of property | 5.3 | |
Grant funds received for broadband stimulus projects | 0 | |
Network expansion funded by Connect America Fund - Phase I | (50.9) | |
Change in restricted cash | 0 | |
Other, net | (2.5) | 12.9 |
Net cash provided from (used in) investing activities | (617.6) | (658.7) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 |
Payment received from CS&L in spin-off | 0 | |
Repayments of debt and swaps | 0 | (1.9) |
Proceeds of debt issuance | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany transactions, net | 554.9 | 130 |
Payments under long-term lease obligations | (79.9) | (48) |
Payments under capital lease obligations | (52.7) | (20.5) |
Other, net | (2.7) | (2.7) |
Net cash (used in) provided from financing activities | 419.6 | 56.9 |
Increase (decrease) in cash and cash equivalents | 4.1 | (4) |
Cash and Cash Equivalents: | ||
Beginning of period | 33.5 | 50 |
End of period | $ 37.6 | $ 46 |
Supplemental Guarantor Inform72
Supplemental Guarantor Information: Revision of Condensed Consolidating Balance Sheet (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Windstream Services, LLC | Investment in consolidated subsidiaries and affiliates payable, net [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 118.3 |
Guarantors | Investment in consolidated subsidiaries [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 43 |
Guarantors | Affiliates payable, net [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 166.1 |
Guarantors | Retained earnings (accumulated deficit) [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 123.1 |
Non-Guarantors | Investment in consolidated subsidiaries [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 0.8 |
Non-Guarantors | Affiliates payable, net [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 61.1 |
Non-Guarantors | Retained earnings (accumulated deficit) [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 61.9 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Nov. 05, 2016USD ($)Mishares | Oct. 14, 2016USD ($) | Sep. 30, 2016Mi | Jan. 01, 2016 |
Subsequent Event [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.55% | |||
Number of Fiber Route Miles | Mi | 129,000 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 138.5 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0.9 | |||
Net actuarial loss (gain) | $ 68.2 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.80% | |||
EarthLink [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of Customers | Mi | 700,000 | |||
Number of Fiber Route Miles | Mi | 16,000 | |||
Business Combination, Equity Interest Issued or Issuable | shares | 0.818 | |||
Business Combination, Equity Interest Issued or Issuable, Number of Shares | shares | 93,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 436 | |||
Business Combination, Consideration Transferred | $ 1,100 |