Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 91,527,360 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 664,073,650 | ||
Windstream Services, LLC [Member] | |||
Entity Registrant Name | Windstream Services, LLC | ||
Entity Central Index Key | 1,585,644 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Revenues and sales: | ||||||||||||||||||||||
Service revenues | $ 5,598.6 | $ 5,647.6 | $ 5,775.5 | |||||||||||||||||||
Product sales | 166.7 | 181.9 | 212.6 | |||||||||||||||||||
Total revenues and sales | $ 1,427 | $ 1,498.6 | $ 1,421.1 | $ 1,418.6 | $ 1,443.1 | $ 1,455.5 | $ 1,466 | $ 1,464.9 | 5,765.3 | 5,829.5 | 5,988.1 | |||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization included below) | 2,762 | 2,773.3 | 2,541.2 | |||||||||||||||||||
Cost of products sold | 145.2 | 156.6 | 183.9 | |||||||||||||||||||
Selling, general and administrative | 866.5 | 929.8 | 874.3 | |||||||||||||||||||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,340.9 | |||||||||||||||||||
Merger and integration costs | 95 | 40.4 | 30.2 | |||||||||||||||||||
Restructuring charges | 20.7 | 35.9 | 8.6 | |||||||||||||||||||
Total costs and expenses | 5,255.9 | 5,322.4 | 4,979.1 | |||||||||||||||||||
Operating income | 131.7 | 178.5 | 79.3 | 119.9 | 20.5 | 151.6 | 167.2 | 167.8 | 509.4 | 507.1 | 1,009 | |||||||||||
Other income (expense), net | 57.5 | 0.1 | (12.5) | |||||||||||||||||||
Gain on sale of data center business | 326.1 | 0 | 0 | |||||||||||||||||||
Loss on early extinguishment of debt | (36.4) | 0 | (28.5) | |||||||||||||||||||
Interest expense | (813.2) | (571.8) | (627.7) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | 43.4 | (64.6) | 340.3 | |||||||||||||||||||
Income tax expense (benefit) | 16 | (25.1) | 105.3 | |||||||||||||||||||
Income (loss) from continuing operations | 27.4 | (39.5) | 235 | |||||||||||||||||||
Discontinued operations | 0 | 0 | 6 | [1] | ||||||||||||||||||
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | $ 27.4 | $ (39.5) | $ 241 | |||||||||||
Basic and diluted earnings (loss) per share: (a) | ||||||||||||||||||||||
From continuing operations | $ 0.24 | $ (0.45) | $ 2.35 | |||||||||||||||||||
From discontinued operations | 0 | 0 | 0.06 | |||||||||||||||||||
Net income (loss) | $ 1.41 | [2] | $ (0.08) | [2] | $ (1.13) | [2] | $ 0.05 | [2] | $ (0.80) | [2] | $ 0.07 | [2] | $ 0.13 | [2] | $ 0.15 | [2] | $ 0.24 | [2] | $ (0.45) | [2] | $ 2.41 | |
[1] | None of the income from discontinued operations was allocable to participating securities in 2013. | |||||||||||||||||||||
[2] | Quarterly earnings (loss) per share amounts may not add to full-year earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. |
WINDSTREAM HOLDINGS, INC. CONS3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | $ 27.4 | $ (39.5) | $ 241 |
Available-for-sale securities: | |||||||||||
Unrealized holding loss arising during the period | (286.5) | 0 | 0 | ||||||||
Unrealized holding loss on available-for-sale securities | (286.5) | 0 | 0 | ||||||||
Interest rate swaps: | |||||||||||
Changes in designated interest rate swaps | (8.8) | (23.2) | 28.2 | ||||||||
Amortization of unrealized losses on de-designated interest rate swaps | 11.6 | 15.8 | 35.9 | ||||||||
Income tax (expense) benefit | (1.1) | 2.9 | (24.5) | ||||||||
Unrealized gain (loss) on interest rate swaps | 1.7 | (4.5) | 39.6 | ||||||||
Postretirement and pension plans: | |||||||||||
Prior service credit arising during the period | 1.8 | 0.1 | 0.9 | ||||||||
Change in net actuarial gain (loss) for postretirement plan | 0.1 | (3.6) | 9.9 | ||||||||
Plan curtailments and settlements | (18) | (10) | (31.8) | ||||||||
Amounts included in net periodic benefit cost: | |||||||||||
Amortization of net actuarial loss | 1 | 0.1 | 1.7 | ||||||||
Amortization of prior service credits | (3.9) | (5.9) | (8.7) | ||||||||
Income tax benefit | 7.3 | 7.4 | 10.5 | ||||||||
Change in postretirement and pension plans | (11.7) | (11.9) | (17.5) | ||||||||
Other comprehensive (loss) income | (296.5) | (16.4) | 22.1 | ||||||||
Comprehensive (loss) income | $ (269.1) | $ (55.9) | $ 263.1 |
WINDSTREAM HOLDINGS, INC. CONS4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ||||
Cash and cash equivalents | $ 31.3 | $ 27.8 | $ 48.2 | $ 132 |
Restricted cash | 0 | 6.7 | ||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 643.9 | 635.5 | ||
Inventories | 79.5 | 63.7 | ||
Prepaid expenses and other | 120.6 | 164.6 | ||
Total current assets | 875.3 | 898.3 | ||
Goodwill | 4,213.6 | 4,352.8 | ||
Other intangibles, net | 1,504.7 | 1,764 | ||
Net property, plant and equipment | 5,279.8 | 5,412.3 | ||
Investment in CS&L common stock | 549.2 | 0 | ||
Other assets | 95.5 | 92.9 | ||
Total Assets | 12,518.1 | 12,520.3 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 5.9 | 717.5 | ||
Current portion of long-term lease obligations | 152.7 | 0 | ||
Accounts payable | 430.1 | 403.3 | ||
Advance payments and customer deposits | 193.9 | 214.7 | ||
Accrued dividends | 15.1 | 152.4 | ||
Accrued taxes | 84.1 | 95.2 | ||
Accrued interest | 78.4 | 102.5 | ||
Other current liabilities | 306.9 | 357.4 | ||
Total current liabilities | 1,267.1 | 2,043 | ||
Long-term debt | 5,164.6 | 7,846.5 | ||
Long-term lease obligations | 5,000.4 | 81 | ||
Deferred income taxes | 287.4 | 1,773.2 | ||
Other liabilities | 492.2 | 551.8 | ||
Total liabilities | $ 12,211.7 | $ 12,295.5 | ||
Commitments and Contingencies (See Note 14) | ||||
Shareholders' Equity: | ||||
Common stock, $0.0001 par value, 166.7 shares authorized, 96.7 and 100.5 shares issued and outstanding, respectively | $ 0 | $ 0 | ||
Additional paid-in capital | 602.9 | 252.2 | ||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | 28.5 | |
Accumulated deficit | (12.1) | (39.5) | ||
Total shareholders’ equity | 306.4 | 224.8 | $ 840.2 | $ 1,104.8 |
Total Liabilities and Shareholders’ Equity | $ 12,518.1 | $ 12,520.3 |
WINDSTREAM HOLDINGS, INC. CONS5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 33.1 | $ 43.4 |
Shareholders' Equity: | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 166,700,000 | 166,700,000 |
Common stock, shares issued | 96,700,000 | 100,500,000 |
Common stock, shares outstanding | 96,700,000 | 100,500,000 |
WINDSTREAM HOLDINGS, INC. CONS6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Provided from Operations: | |||
Net income (loss) | $ 27.4 | $ (39.5) | $ 241 |
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,341.5 |
Provision for doubtful accounts | 47.1 | 54.9 | 63.5 |
Share-based compensation expense | 55.3 | 41.8 | 44.9 |
Pension expense (income) | 1.2 | 128.3 | (115.3) |
Deferred income taxes | (16.3) | (13.4) | 134.8 |
Unamortized net premium on retired debt | (14.8) | 0 | (38.1) |
Amortization of unrealized losses on de-designated interest rate swaps | 11.6 | 15.8 | 35.9 |
Gains from sales of data center and software businesses | (326.1) | 0 | 0 |
Plan curtailments and other, net | (14.3) | 6.8 | (15.8) |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (69.5) | (55) | (46.4) |
Prepaid income taxes | 0 | 1.1 | (7) |
Prepaid expenses and other | 1.4 | (6) | (12.4) |
Accounts payable | 31.1 | (13.1) | (21) |
Accrued interest | (26.4) | (3.1) | (10.2) |
Accrued taxes | 17.9 | (9) | (0.1) |
Other current liabilities | (17.7) | 8.4 | (49) |
Other liabilities | (11.6) | (21.5) | (9.2) |
Other, net | (36.2) | (15.6) | (3.3) |
Net cash provided from operations | 1,026.6 | 1,467.3 | 1,519.4 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (1,055.3) | (786.5) | (841) |
Broadband network expansion funded by stimulus grants | 0 | (13.3) | (36.1) |
Changes in restricted cash | 6.7 | 3 | 16.8 |
Grant funds received for broadband stimulus projects | 23.5 | 33.2 | 68 |
Grant funds received from Connect America Fund - Phase I | 0 | 26 | 60.7 |
Network expansion funded by Connect America Fund - Phase I | (73.9) | (12.8) | 0 |
Acquisition of a business | 0 | (22.6) | 0 |
Dispositions of data center and software businesses | 574.2 | 0 | 30 |
Other, net | 2.8 | 3.9 | (6) |
Net cash used in investing activities | (522) | (769.1) | (707.6) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | (369.2) | (602.2) | (593.6) |
Payment received from CS&L in spin-off | 1,035 | 0 | 0 |
Funding received from CS&L for tenant capital improvements | 43.1 | 0 | 0 |
Repayments of debt and swaps | (3,350.9) | (1,395.4) | (5,161) |
Proceeds of debt issuance | 2,335 | 1,315 | 4,919.6 |
Debt issuance costs | (4.3) | 0 | (30) |
Stock repurchases | (46.2) | 0 | 0 |
Payments under long-term lease obligations | (102.6) | 0 | 0 |
Payments under capital lease obligations | (31.5) | (26.8) | (23.9) |
Other, net | (9.5) | (9.2) | (6.7) |
Net cash used in financing activities | (501.1) | (718.6) | (895.6) |
Increase (decrease) in cash and cash equivalents | 3.5 | (20.4) | (83.8) |
Cash and Cash Equivalents: | |||
Beginning of period | 27.8 | 48.2 | 132 |
End of period | 31.3 | 27.8 | 48.2 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of interest capitalized | 828.9 | 564.4 | 601.5 |
Income taxes paid (refunded), net | 1.1 | (8.8) | 5.7 |
Data Center and Software Businesses [Member] | |||
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Gains from sales of data center and software businesses | $ (326.1) | $ 0 | $ (14.4) |
WINDSTREAM HOLDINGS, INC. CONS7
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2012 | $ 1,104.8 | $ 1,098.4 | $ 6.4 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 241 | 0 | 0 | 241 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding loss on available-for-sale securities | 0 | |||
Change in postretirement and pension plans | (17.5) | 0 | (17.5) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 22.2 | 0 | 22.2 | 0 |
Changes in designated interest rate swaps | 17.4 | 0 | 17.4 | 0 |
Comprehensive income (loss) | 263.1 | 0 | 22.1 | 241 |
Share-based compensation expense (See Note 9) | 26.8 | 26.8 | 0 | 0 |
Stock options exercised | 0.8 | 0.8 | 0 | 0 |
Stock issued to employee savings plan (See Note 8) | 20.4 | 20.4 | 0 | 0 |
Stock issued to qualified pension plan (See Note 8) | 27.8 | 27.8 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (8) | (8) | 0 | 0 |
Dividends per share declared to stockholders | (595.5) | (354.5) | 0 | (241) |
Ending balance at Dec. 31, 2013 | 840.2 | 811.7 | 28.5 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (39.5) | 0 | 0 | (39.5) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding loss on available-for-sale securities | 0 | |||
Change in postretirement and pension plans | (11.9) | 0 | (11.9) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 9.8 | 0 | 9.8 | 0 |
Changes in designated interest rate swaps | (14.3) | 0 | (14.3) | 0 |
Comprehensive income (loss) | (55.9) | 0 | (16.4) | (39.5) |
Share-based compensation expense (See Note 9) | 22.1 | 22.1 | 0 | 0 |
Stock options exercised | 1.6 | 1.6 | 0 | 0 |
Stock issued for management incentive compensation plans (See Note 9) | 1.4 | 1.4 | 0 | 0 |
Stock issued to employee savings plan (See Note 8) | 21.6 | 21.6 | 0 | 0 |
Stock issued to qualified pension plan (See Note 8) | 8.3 | 8.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (11.6) | (11.6) | 0 | 0 |
Dividends per share declared to stockholders | (602.9) | (602.9) | 0 | 0 |
Ending balance at Dec. 31, 2014 | 224.8 | 252.2 | 12.1 | (39.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 27.4 | 0 | 0 | 27.4 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding loss on available-for-sale securities | (286.5) | 0 | (286.5) | 0 |
Change in postretirement and pension plans | (11.7) | 0 | (11.7) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 7.1 | 0 | 7.1 | 0 |
Changes in designated interest rate swaps | (5.4) | 0 | (5.4) | 0 |
Comprehensive income (loss) | (269.1) | 0 | (296.5) | 27.4 |
Effect of REIT spin-off (See Note 3) | 585.6 | 585.6 | 0 | 0 |
Share-based compensation expense (See Note 9) | 25 | 25 | 0 | 0 |
Stock issued for management incentive compensation plans (See Note 9) | 5.9 | 5.9 | 0 | 0 |
Stock issued to employee savings plan (See Note 8) | 21.6 | 21.6 | 0 | 0 |
Stock repurchases | (46.2) | (46.2) | 0 | 0 |
Taxes withheld on vested restricted stock and other | (9.7) | (9.7) | 0 | 0 |
Dividends per share declared to stockholders | (231.5) | (231.5) | 0 | 0 |
Ending balance at Dec. 31, 2015 | $ 306.4 | $ 602.9 | $ (284.4) | $ (12.1) |
WINDSTREAM HOLDINGS, INC. CONS8
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends, per share declared to stockholders | $ 2.31 | $ 6 | $ 6 |
WINDSTREAM SERVICES, LLC CONSOL
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATION - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues and sales: | ||||||||||||
Service revenues | $ 5,598.6 | $ 5,647.6 | $ 5,775.5 | |||||||||
Product sales | 166.7 | 181.9 | 212.6 | |||||||||
Total revenues and sales | $ 1,427 | $ 1,498.6 | $ 1,421.1 | $ 1,418.6 | $ 1,443.1 | $ 1,455.5 | $ 1,466 | $ 1,464.9 | 5,765.3 | 5,829.5 | 5,988.1 | |
Costs and expenses: | ||||||||||||
Cost of services (exclusive of depreciation and amortization included below) | 2,762 | 2,773.3 | 2,541.2 | |||||||||
Cost of products sold | 145.2 | 156.6 | 183.9 | |||||||||
Selling, general and administrative | 866.5 | 929.8 | 874.3 | |||||||||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,340.9 | |||||||||
Merger and integration costs | 95 | 40.4 | 30.2 | |||||||||
Restructuring charges | 20.7 | 35.9 | 8.6 | |||||||||
Total costs and expenses | 5,255.9 | 5,322.4 | 4,979.1 | |||||||||
Operating income | 131.7 | 178.5 | 79.3 | 119.9 | 20.5 | 151.6 | 167.2 | 167.8 | 509.4 | 507.1 | 1,009 | |
Other income (expense), net | 57.5 | 0.1 | (12.5) | |||||||||
Gain on sale of data center business | 326.1 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | (36.4) | 0 | (28.5) | |||||||||
Interest expense | (813.2) | (571.8) | (627.7) | |||||||||
Income (loss) from continuing operations before income taxes | 43.4 | (64.6) | 340.3 | |||||||||
Income tax expense (benefit) | 16 | (25.1) | 105.3 | |||||||||
Income (loss) from continuing operations | 27.4 | (39.5) | 235 | |||||||||
Discontinued operations | 0 | 0 | 6 | [1] | ||||||||
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | 27.4 | (39.5) | 241 | |
Windstream Services, LLC [Member] | ||||||||||||
Revenues and sales: | ||||||||||||
Service revenues | 5,598.6 | 5,647.6 | 5,775.5 | |||||||||
Product sales | 166.7 | 181.9 | 212.6 | |||||||||
Total revenues and sales | 5,765.3 | 5,829.5 | 5,988.1 | |||||||||
Costs and expenses: | ||||||||||||
Cost of services (exclusive of depreciation and amortization included below) | 2,762 | 2,773.3 | 2,541.2 | |||||||||
Cost of products sold | 145.2 | 156.6 | 183.9 | |||||||||
Selling, general and administrative | 864.5 | 927.5 | 873.8 | |||||||||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,340.9 | |||||||||
Merger and integration costs | 95 | 40.4 | 30.2 | |||||||||
Restructuring charges | 20.7 | 35.9 | 8.6 | |||||||||
Total costs and expenses | 5,253.9 | 5,320.1 | 4,978.6 | |||||||||
Operating income | 511.4 | 509.4 | 1,009.5 | |||||||||
Other income (expense), net | 57.5 | 0.1 | (12.5) | |||||||||
Gain on sale of data center business | 326.1 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | (36.4) | 0 | (28.5) | |||||||||
Interest expense | (813.2) | (571.8) | (627.7) | |||||||||
Income (loss) from continuing operations before income taxes | 45.4 | (62.3) | 340.8 | |||||||||
Income tax expense (benefit) | 16.8 | (24.2) | 105.5 | |||||||||
Income (loss) from continuing operations | 28.6 | (38.1) | 235.3 | |||||||||
Discontinued operations | 0 | 0 | 6 | |||||||||
Net income (loss) | $ 28.6 | $ (38.1) | $ 241.3 | |||||||||
[1] | None of the income from discontinued operations was allocable to participating securities in 2013. |
WINDSTREAM SERVICES, LLC CONS10
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 27.4 | $ (39.5) | $ 241 |
Available-for-sale securities: | |||
Unrealized holding loss arising during the period | (286.5) | 0 | 0 |
Unrealized holding loss on available-for-sale securities | (286.5) | 0 | 0 |
Interest rate swaps: | |||
Changes in designated interest rate swaps | (8.8) | (23.2) | 28.2 |
Amortization of unrealized losses on de-designated interest rate swaps | 11.6 | 15.8 | 35.9 |
Income tax (expense) benefit | (1.1) | 2.9 | (24.5) |
Unrealized gain (loss) on interest rate swaps | 1.7 | (4.5) | 39.6 |
Postretirement and pension plans: | |||
Prior service credit arising during the period | (1.8) | (0.1) | (0.9) |
Change in net actuarial gain (loss) for postretirement plan | 0.1 | (3.6) | 9.9 |
Plan curtailments and settlements | (18) | (10) | (31.8) |
Amounts included in net periodic benefit cost: | |||
Amortization of net actuarial loss | 1 | 0.1 | 1.7 |
Amortization of prior service credits | (3.9) | (5.9) | (8.7) |
Income tax benefit | 7.3 | 7.4 | 10.5 |
Change in postretirement and pension plans | (11.7) | (11.9) | (17.5) |
Other comprehensive (loss) income | (296.5) | (16.4) | 22.1 |
Comprehensive (loss) income | (269.1) | (55.9) | 263.1 |
Windstream Services, LLC [Member] | |||
Net income (loss) | 28.6 | (38.1) | 241.3 |
Available-for-sale securities: | |||
Unrealized holding loss arising during the period | (286.5) | 0 | 0 |
Unrealized holding loss on available-for-sale securities | (286.5) | 0 | 0 |
Interest rate swaps: | |||
Changes in designated interest rate swaps | (8.8) | (23.2) | 28.2 |
Amortization of unrealized losses on de-designated interest rate swaps | 11.6 | 15.8 | 35.9 |
Income tax (expense) benefit | (1.1) | 2.9 | (24.5) |
Unrealized gain (loss) on interest rate swaps | 1.7 | (4.5) | 39.6 |
Postretirement and pension plans: | |||
Prior service credit arising during the period | 1.8 | 0.1 | 0.9 |
Change in net actuarial gain (loss) for postretirement plan | 0.1 | (3.6) | 9.9 |
Plan curtailments and settlements | (18) | (10) | (31.8) |
Amounts included in net periodic benefit cost: | |||
Amortization of net actuarial loss | 1 | 0.1 | 1.7 |
Amortization of prior service credits | (3.9) | (5.9) | (8.7) |
Income tax benefit | 7.3 | 7.4 | 10.5 |
Change in postretirement and pension plans | (11.7) | (11.9) | (17.5) |
Other comprehensive (loss) income | (296.5) | (16.4) | 22.1 |
Comprehensive (loss) income | $ (267.9) | $ (54.5) | $ 263.4 |
WINDSTREAM SERVICES, LLC CONS11
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) Statement - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 31.3 | $ 27.8 |
Restricted cash | 0 | 6.7 |
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 643.9 | 635.5 |
Inventories | 79.5 | 63.7 |
Prepaid expenses and other | 120.6 | 164.6 |
Total current assets | 875.3 | 898.3 |
Goodwill | 4,213.6 | 4,352.8 |
Other intangibles, net | 1,504.7 | 1,764 |
Net property, plant and equipment | 5,279.8 | 5,412.3 |
Investment in CS&L common stock | 549.2 | 0 |
Other assets | 95.5 | 92.9 |
Total Assets | 12,518.1 | 12,520.3 |
Current Liabilities: | ||
Current maturities of long-term debt | 5.9 | 717.5 |
Current portion of long-term lease obligations | 152.7 | 0 |
Accounts payable | 430.1 | 403.3 |
Advance payments and customer deposits | 193.9 | 214.7 |
Accrued taxes | 84.1 | 95.2 |
Accrued interest | 78.4 | 102.5 |
Other current liabilities | 306.9 | 357.4 |
Total current liabilities | 1,267.1 | 2,043 |
Long-term debt | 5,164.6 | 7,846.5 |
Long-term lease obligations | 5,000.4 | 81 |
Deferred income taxes | 287.4 | 1,773.2 |
Other liabilities | 492.2 | 551.8 |
Total liabilities | $ 12,211.7 | $ 12,295.5 |
Commitments and Contingencies (See Note 14) | ||
Member Equity: | ||
Additional paid-in capital | $ 602.9 | $ 252.2 |
Accumulated other comprehensive (loss) income | (284.4) | 12.1 |
Accumulated deficit | (12.1) | (39.5) |
Total member equity | 306.4 | 224.8 |
Total Liabilities and Member Equity | 12,518.1 | 12,520.3 |
Windstream Services, LLC [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 31.3 | 27.8 |
Restricted cash | 0 | 6.7 |
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 643.9 | 635.5 |
Inventories | 79.5 | 63.7 |
Prepaid expenses and other | 120.6 | 164.6 |
Total current assets | 875.3 | 898.3 |
Goodwill | 4,213.6 | 4,352.8 |
Other intangibles, net | 1,504.7 | 1,764 |
Net property, plant and equipment | 5,279.8 | 5,412.3 |
Investment in CS&L common stock | 549.2 | 0 |
Other assets | 95.5 | 92.9 |
Total Assets | 12,518.1 | 12,520.3 |
Current Liabilities: | ||
Current maturities of long-term debt | 5.9 | 717.5 |
Current portion of long-term lease obligations | 152.7 | 0 |
Accounts payable | 430.1 | 403.3 |
Advance payments and customer deposits | 193.9 | 214.7 |
Payable to Windstream Holdings, Inc. | 15.1 | 152.4 |
Accrued taxes | 84.1 | 95.2 |
Accrued interest | 78.4 | 102.5 |
Other current liabilities | 306.9 | 357.4 |
Total current liabilities | 1,267.1 | 2,043 |
Long-term debt | 5,164.6 | 7,846.5 |
Long-term lease obligations | 5,000.4 | 81 |
Deferred income taxes | 287.4 | 1,773.2 |
Other liabilities | 492.2 | 551.8 |
Total liabilities | $ 12,211.7 | $ 12,295.5 |
Commitments and Contingencies (See Note 14) | ||
Member Equity: | ||
Additional paid-in capital | $ 600.3 | $ 250.8 |
Accumulated other comprehensive (loss) income | (284.4) | 12.1 |
Accumulated deficit | (9.5) | (38.1) |
Total member equity | 306.4 | 224.8 |
Total Liabilities and Member Equity | $ 12,518.1 | $ 12,520.3 |
WINDSTREAM SERVICES, LLC CONS12
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICALS) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 33.1 | $ 43.4 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 166,700,000 | 166,700,000 |
Common stock, shares issued | 96,700,000 | 100,500,000 |
Common stock, shares outstanding | 96,700,000 | 100,500,000 |
Windstream Services, LLC [Member] | ||
Accounts receivable, allowance for doubtful accounts | $ 33.1 | $ 43.4 |
WINDSTREAM SERVICES, LLC CONS13
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Provided from Operations: | |||
Net income (loss) | $ 27.4 | $ (39.5) | $ 241 |
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,341.5 |
Provision for doubtful accounts | 47.1 | 54.9 | 63.5 |
Share-based compensation expense | 55.3 | 41.8 | 44.9 |
Pension expense (income) | 1.2 | 128.3 | (115.3) |
Deferred income taxes | (16.3) | (13.4) | 134.8 |
Unamortized net premium on retired debt | (14.8) | 0 | (38.1) |
Amortization of unrealized losses on de-designated interest rate swaps | 11.6 | 15.8 | 35.9 |
Gains from sales of data center and software businesses | (326.1) | 0 | 0 |
Plan curtailment and other, net | (14.3) | 6.8 | (15.8) |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (69.5) | (55) | (46.4) |
Prepaid income taxes | 0 | 1.1 | (7) |
Prepaid expenses and other | 1.4 | (6) | (12.4) |
Accounts payable | 31.1 | (13.1) | (21) |
Accrued interest | (26.4) | (3.1) | (10.2) |
Accrued taxes | 17.9 | (9) | (0.1) |
Other current liabilities | (17.7) | 8.4 | (49) |
Other liabilities | (11.6) | (21.5) | (9.2) |
Other, net | (36.2) | (15.6) | (3.3) |
Net cash provided from operations | 1,026.6 | 1,467.3 | 1,519.4 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (1,055.3) | (786.5) | (841) |
Broadband network expansion funded by stimulus grants | 0 | (13.3) | (36.1) |
Changes in restricted cash | 6.7 | 3 | 16.8 |
Grant funds received for broadband stimulus projects | 23.5 | 33.2 | 68 |
Grant funds received from Connect America Fund - Phase I | 0 | 26 | 60.7 |
Network expansion funded by Connect America Fund - Phase I | (73.9) | (12.8) | 0 |
Acquisition of a business | 0 | (22.6) | 0 |
Dispositions of software business | 574.2 | 0 | 30 |
Other, net | 2.8 | 3.9 | (6) |
Net cash used in investing activities | (522) | (769.1) | (707.6) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | (369.2) | (602.2) | (593.6) |
Payment received from CS&L in spin-off | 1,035 | 0 | 0 |
Funding received from CS&L for tenant capital improvements | 43.1 | 0 | 0 |
Repayments of debt and swaps | (3,350.9) | (1,395.4) | (5,161) |
Proceeds of debt issuance | 2,335 | 1,315 | 4,919.6 |
Debt issuance costs | (4.3) | 0 | (30) |
Payments under long-term lease obligations | (102.6) | 0 | 0 |
Payments under capital lease obligations | (31.5) | (26.8) | (23.9) |
Other, net | (9.5) | (9.2) | (6.7) |
Net cash used in financing activities | (501.1) | (718.6) | (895.6) |
Decrease in cash and cash equivalents | 3.5 | (20.4) | (83.8) |
Cash and Cash Equivalents: | |||
Beginning of period | 27.8 | 48.2 | 132 |
End of period | 31.3 | 27.8 | 48.2 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of interest capitalized | 828.9 | 564.4 | 601.5 |
Income taxes paid (refunded), net | 1.1 | (8.8) | 5.7 |
Windstream Services, LLC [Member] | |||
Cash Provided from Operations: | |||
Net income (loss) | 28.6 | (38.1) | 241.3 |
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,341.5 |
Provision for doubtful accounts | 47.1 | 54.9 | 63.5 |
Share-based compensation expense | 55.3 | 41.8 | 44.9 |
Pension expense (income) | 1.2 | 128.3 | (115.3) |
Deferred income taxes | (16.3) | (13.4) | 134.8 |
Unamortized net premium on retired debt | (14.8) | 0 | (38.1) |
Amortization of unrealized losses on de-designated interest rate swaps | 11.6 | 15.8 | 35.9 |
Gains from sales of data center and software businesses | (326.1) | 0 | 0 |
Plan curtailment and other, net | (14.3) | 6.8 | (15.8) |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (69.5) | (55) | (46.4) |
Prepaid income taxes | 0 | 1.1 | (7) |
Prepaid expenses and other | 1.4 | (6) | (12.4) |
Accounts payable | 31.1 | (13.1) | (21) |
Accrued interest | (26.4) | (3.1) | (10.2) |
Accrued taxes | 17.9 | (9) | 0 |
Other current liabilities | (17.7) | 8.4 | (49) |
Other liabilities | (11.6) | (21.5) | (9.2) |
Other, net | (36.2) | (15.6) | (3.3) |
Net cash provided from operations | 1,027.8 | 1,468.7 | 1,519.8 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (1,055.3) | (786.5) | (841) |
Broadband network expansion funded by stimulus grants | 0 | (13.3) | (36.1) |
Changes in restricted cash | 6.7 | 3 | 16.8 |
Grant funds received for broadband stimulus projects | 23.5 | 33.2 | 68 |
Grant funds received from Connect America Fund - Phase I | 0 | 26 | 60.7 |
Network expansion funded by Connect America Fund - Phase I | (73.9) | (12.8) | 0 |
Acquisition of a business | 0 | (22.6) | 0 |
Dispositions of software business | 574.2 | 0 | 30 |
Other, net | 2.8 | 3.9 | (6) |
Net cash used in investing activities | (522) | (769.1) | (707.6) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | (444.6) |
Distributions to Windstream Holdings, Inc. | (416.6) | (603.6) | (149.4) |
Payment received from CS&L in spin-off | 1,035 | 0 | 0 |
Funding received from CS&L for tenant capital improvements | 43.1 | 0 | 0 |
Repayments of debt and swaps | (3,350.9) | (1,395.4) | (5,161) |
Proceeds of debt issuance | 2,335 | 1,315 | 4,919.6 |
Debt issuance costs | (4.3) | 0 | (30) |
Payments under long-term lease obligations | (102.6) | 0 | 0 |
Payments under capital lease obligations | (31.5) | (26.8) | (23.9) |
Other, net | (9.5) | (9.2) | (6.7) |
Net cash used in financing activities | (502.3) | (720) | (896) |
Decrease in cash and cash equivalents | 3.5 | (20.4) | (83.8) |
Cash and Cash Equivalents: | |||
Beginning of period | 27.8 | 48.2 | 132 |
End of period | 31.3 | 27.8 | 48.2 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of interest capitalized | 828.9 | 564.4 | 601.5 |
Income taxes paid (refunded), net | 1.1 | (8.8) | 5.7 |
Data Center and Software Businesses [Member] | |||
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Gains from sales of data center and software businesses | (326.1) | 0 | (14.4) |
Data Center and Software Businesses [Member] | Windstream Services, LLC [Member] | |||
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Gains from sales of data center and software businesses | $ (326.1) | $ 0 | $ (14.4) |
WINDSTREAM SERVICES, LLC CONS14
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) Statement - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Windstream Services, LLC [Member] | Windstream Services, LLC [Member]Common Stock and Additional Paid-In Capital | Windstream Services, LLC [Member]Accumulated Other Comprehensive Income (Loss) | Windstream Services, LLC [Member]Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2012 | $ 1,104.8 | $ 1,098.4 | $ 6.4 | $ 0 | $ 1,104.8 | $ 1,098.4 | $ 6.4 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 241 | 0 | 0 | 241 | 241.3 | 0 | 0 | 241.3 |
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized holding loss on available-for-sale securities | 0 | 0 | ||||||
Change in postretirement and pension plans | (17.5) | 0 | (17.5) | 0 | (17.5) | 0 | (17.5) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 22.2 | 0 | 22.2 | 0 | 22.2 | 0 | 22.2 | 0 |
Changes in designated interest rate swaps | 17.4 | 0 | 17.4 | 0 | 17.4 | 0 | 17.4 | 0 |
Comprehensive income (loss) | 263.1 | 0 | 22.1 | 241 | 263.4 | 0 | 22.1 | 241.3 |
Share-based compensation expense (See Note 9) | 26.8 | 26.8 | 0 | 0 | 26.8 | 26.8 | 0 | 0 |
Stock options exercised | 0.8 | 0.8 | 0 | 0 | 0.8 | 0.8 | 0 | 0 |
Stock issued to employee savings plan (See Note 8) | 20.4 | 20.4 | 0 | 0 | 20.4 | 20.4 | 0 | 0 |
Stock issued to qualified pension plan (See Note 8) | 27.8 | 27.8 | 0 | 0 | 27.8 | 27.8 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (8) | (8) | 0 | 0 | (8) | (8) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (595.5) | (354.2) | 0 | (241.3) | ||||
Ending balance at Dec. 31, 2013 | 840.2 | 811.7 | 28.5 | 0 | 840.5 | 812 | 28.5 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (39.5) | 0 | 0 | (39.5) | (38.1) | 0 | 0 | (38.1) |
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized holding loss on available-for-sale securities | 0 | 0 | ||||||
Change in postretirement and pension plans | (11.9) | 0 | (11.9) | 0 | (11.9) | 0 | (11.9) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 9.8 | 0 | 9.8 | 0 | 9.8 | 0 | 9.8 | 0 |
Changes in designated interest rate swaps | (14.3) | 0 | (14.3) | 0 | (14.3) | 0 | (14.3) | 0 |
Comprehensive income (loss) | (55.9) | 0 | (16.4) | (39.5) | (54.5) | 0 | (16.4) | (38.1) |
Share-based compensation expense (See Note 9) | 22.1 | 22.1 | 0 | 0 | 22.1 | 22.1 | 0 | 0 |
Stock options exercised | 1.6 | 1.6 | 0 | 0 | 1.6 | 1.6 | 0 | 0 |
Stock issued for management incentive compensation plans (See Note 9) | 1.4 | 1.4 | 0 | 0 | 1.4 | 1.4 | 0 | 0 |
Stock issued to employee savings plan (See Note 8) | 21.6 | 21.6 | 0 | 0 | 21.6 | 21.6 | 0 | 0 |
Stock issued to qualified pension plan (See Note 8) | 8.3 | 8.3 | 0 | 0 | 8.3 | 8.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (11.6) | (11.6) | 0 | 0 | (11.6) | (11.6) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (604.6) | (604.6) | 0 | 0 | ||||
Ending balance at Dec. 31, 2014 | 224.8 | 252.2 | 12.1 | (39.5) | 224.8 | 250.8 | 12.1 | (38.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 27.4 | 0 | 0 | 27.4 | 28.6 | 0 | 0 | 28.6 |
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized holding loss on available-for-sale securities | (286.5) | 0 | (286.5) | 0 | (286.5) | 0 | (286.5) | 0 |
Change in postretirement and pension plans | (11.7) | 0 | (11.7) | 0 | (11.7) | 0 | (11.7) | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 7.1 | 0 | 7.1 | 0 | 7.1 | 0 | 7.1 | 0 |
Changes in designated interest rate swaps | (5.4) | 0 | (5.4) | 0 | (5.4) | 0 | (5.4) | 0 |
Comprehensive income (loss) | (269.1) | 0 | (296.5) | 27.4 | (267.9) | 0 | (296.5) | 28.6 |
Effect of REIT spin-off (See Note 3) | 585.6 | 585.6 | 0 | 0 | 585.6 | 585.6 | 0 | 0 |
Share-based compensation expense (See Note 9) | 25 | 25 | 0 | 0 | 25 | 25 | 0 | 0 |
Stock issued for management incentive compensation plans (See Note 9) | 5.9 | 5.9 | 0 | 0 | 5.9 | 5.9 | 0 | 0 |
Stock issued to employee savings plan (See Note 8) | 21.6 | 21.6 | 0 | 0 | 21.6 | 21.6 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (9.7) | (9.7) | 0 | 0 | (9.7) | (9.7) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (278.9) | (278.9) | 0 | 0 | ||||
Ending balance at Dec. 31, 2015 | $ 306.4 | $ 602.9 | $ (284.4) | $ (12.1) | $ 306.4 | $ 600.3 | $ (284.4) | $ (9.5) |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Millions) For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the period of August 30, 2013 (date of formation) to December 31, 2013 Operating revenues: Leasing income from subsidiaries $ 446.0 $ — $ — Total operating revenues 446.0 — — Costs and expenses: Selling, general and administrative 2.0 2.3 0.5 Depreciation expense 239.7 — — Total costs and expenses 241.7 2.3 0.5 Operating income (loss) 204.3 (2.3 ) (0.5 ) Interest expense on long-term lease obligation with CS&L (351.6 ) — — Loss before income taxes and equity in subsidiaries (147.3 ) (2.3 ) (0.5 ) Income tax benefit (57.0 ) (0.9 ) (0.2 ) Loss before equity in subsidiaries (90.3 ) (1.4 ) (0.3 ) Equity earnings (losses) from subsidiaries 117.7 (38.1 ) 137.6 Net income (loss) $ 27.4 $ (39.5 ) $ 137.3 Comprehensive (loss) income $ (269.1 ) $ (55.9 ) $ 134.4 See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement BALANCE SHEETS (Millions, except par value) Assets 2015 2014 Current Assets: Distributions receivable from Windstream Services $ 15.1 $ 152.4 Total current assets 15.1 152.4 Investment and affiliate related balances 2,009.5 224.8 Net property, plant and equipment 2,301.3 — Deferred income taxes 1,076.0 — Total Assets $ 5,401.9 $ 377.2 Liabilities and Shareholders’ Equity Current liabilities: Accrued dividends $ 15.1 $ 152.4 Current portion of long-term lease obligation 152.7 — Total current liabilities 167.8 152.4 Long-term lease obligation 4,927.7 — Total liabilities 5,095.5 152.4 Shareholders’ Equity: Common stock, $0.0001 par value, 166.7 shares authorized, 96.7 and 100.5 shares issued and outstanding — — Additional paid-in capital 602.9 252.2 Accumulated other comprehensive (loss) income (284.4 ) 12.1 Accumulated deficit (12.1 ) (39.5 ) Total shareholders’ equity 306.4 224.8 Total Liabilities and Shareholders’ Equity $ 5,401.9 $ 377.2 See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement STATEMENTS OF CASH FLOWS (Millions) For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the period of August 30, 2013 (date of formation) to December 31, 2013 Cash Provided from Operations: Net income (loss) $ 27.4 $ (39.5 ) $ 137.3 Adjustments to reconcile net income (loss) to net cash provided from operations: Equity (earnings) losses from subsidiaries (117.7 ) 38.1 (137.6 ) Depreciation expense 239.7 — — Deferred income taxes (56.2 ) — — Changes in operating assets and liabilities, net: Other current assets — — (0.1 ) Net cash provided from (used in) operating activities 93.2 (1.4 ) (0.4 ) Cash Flows from Investing Activities: Additions to property, plant and equipment (43.1 ) — — Net cash used in investing activities (43.1 ) — — Cash Flows from Financing Activities: Distributions from Windstream Services 416.6 603.6 149.4 Funding received from CS&L 43.1 — — Dividends paid to shareholders (369.2 ) (602.2 ) (149.0 ) Stock repurchases (46.2 ) — — Payments under long-term lease obligation (94.4 ) — — Net cash (used in) provided from financing activities (50.1 ) 1.4 0.4 Change in cash and cash equivalents — — — Cash and Cash Equivalents: Beginning of period — — — End of period $ — $ — $ — See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement Background and Basis of Presentation: Notwithstanding the accounting treatment for the spin-off transaction as further discussed below, following its formation on August 30, 2013, Windstream Holdings, Inc. (“Windstream Holdings”) has no material assets or operations other than its ownership in Windstream Services, LLC (“Windstream Services”), formerly Windstream Corporation, and its subsidiaries. Effective February 28, 2015, Windstream Corporation was converted to a limited liability company. Following the conversion Windstream Holdings owns a 100 percent interest in Windstream Services. On April 24, 2015, Windstream Holdings completed the spin-off of certain telecommunications network assets and other real estate, into an independent, publicly traded real estate investment trust, Communications Sales & Leasing, Inc. (“CS&L”). Immediately prior to the effective time of the spin-off, Windstream Services and its subsidiaries contributed the network assets to Windstream Holdings for distribution to CS&L. The telecommunications network assets consisted of copper cable and fiber optic cable lines, telephone poles, underground conduits, concrete pads, attachment hardware (e.g., bolts and lashings), pedestals, guy wires, anchors, signal repeaters, and central office land and buildings, with a net book value of approximately $2.5 billion at the time of spin-off. Following the spin-off transaction, on April 24, 2015, Windstream Holdings entered into a long-term triple-net master lease with CS&L to lease back the telecommunications network assets. Due to various forms of continuing involvement, including Windstream Services or its subsidiaries, retaining bare legal title (but not beneficial ownership) to the various easements, permits and pole attachments related to the telecommunications network assets, the transaction was accounted for as a failed spin-leaseback for financial reporting purposes. As a result, the accompanying condensed parent company financial statements include the telecommunications network assets and other real estate assets, the long-term lease obligation associated with the master lease and the related deferred income taxes. As the master lease was entered into by Windstream Holdings for the direct benefit of Windstream Services and its subsidiaries, Windstream Services is also deemed to have continuing involvement due to retaining its regulatory obligations associated with operating the telecommunications network assets. Accordingly, the effects of the failed spin-leaseback transaction have also been reflected in the standalone consolidated financial statements of Windstream Services (collectively referred to as “CS&L spin transactions”). Certain covenants within Windstream Services’ senior secured credit facility may restrict its ability to distribute funds to Windstream Holdings in the form of dividends, loans or advances. Accordingly, these condensed financial statements of Windstream Holdings have been presented on a “Parent Only” basis. Under this basis of presentation, Windstream Holdings’ investment in its consolidated subsidiaries are presented under the equity method of accounting. Amounts reflected in these condensed parent company financial statements for investment and affiliated related balances and equity earnings from subsidiaries have been adjusted to account for the effects of the telecommunications network assets, long-term lease obligation, depreciation expense, principal and interest payments on the long-term lease obligation and related income tax effects that are also included in the net income and equity of Windstream Services. Equity income (losses) from subsidiaries for 2015 includes $89.1 million of intercompany income related to the CS&L spin transactions. On April 24, 2015, Windstream Holdings amended its certificate of incorporation to decrease the number of authorized shares of common stock from 1.0 billion to 166.7 million and enacted a one-for-six reverse stock split with respect to all outstanding shares of common stock which became effective April 26, 2015. Share data of Windstream Holdings has been retrospectively adjusted to reflect the decrease in authorized shares and the reverse stock split. The condensed parent company financial statements should be read in conjunction with the consolidated financial statements and notes of Windstream Holdings and subsidiaries included in the Financial Supplement to this Annual Report on Form 10-K. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | WINDSTREAM HOLDINGS, INC. WINDSTREAM SERVICES, LLC SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Millions) Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Period Charged to Cost and Expenses Charged to Other Accounts Deductions Balance at End of Period Allowance for doubtful accounts, customers and others: For the years ended: December 31, 2015 $ 43.4 $ 47.1 $ — $ 57.4 (a) $ 33.1 December 31, 2014 $ 40.0 $ 54.8 $ — $ 51.4 (a) $ 43.4 December 31, 2013 $ 42.6 $ 63.5 $ — $ 66.1 (a) $ 40.0 Valuation allowance for deferred tax assets: For the years ended: December 31, 2015 $ 94.9 $ 3.8 $ 75.4 (b) $ 26.2 (c) $ 147.9 December 31, 2014 $ 84.9 $ 10.0 $ — $ — $ 94.9 December 31, 2013 $ 85.9 $ 7.1 $ — $ 8.1 (d) $ 84.9 Accrued liabilities related to merger, integration and restructuring charges: For the years ended: December 31, 2015 $ 11.2 $ 115.7 (e) $ — $ 121.8 (h) $ 5.1 December 31, 2014 $ 14.0 $ 76.3 (f) $ — $ 79.1 (h) $ 11.2 December 31, 2013 $ 20.1 $ 38.8 (g) $ — $ 44.9 (h) $ 14.0 Notes: (a) Accounts charged off net of recoveries of amounts previously written off. (b) Reflects adjustment to valuation allowances on net operating loss carryforwards due to the effects of the REIT spin-off, which was charged to additional paid-in capital. (c) Reduction of valuation allowances on net operating loss carryforwards due to the effects of the reorganization of certain subsidiaries to limited liability companies completed during the first quarter of 2015. (d) Reversal of valuation allowances on net operating loss carryforwards realized due to the sale of Pinnacle Software Company and on capital loss carryforwards realized as a result of capital gains recognized. (e) Costs primarily consist of charges incurred related to the REIT spin-off, the sale of our data center business and charges related to 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 PAETEC acquisition. Restructuring charges primarily include severance and other employee benefit costs resulting from workforce reductions completed during the year and costs incurred related to a special shareholder meeting. (f) Costs primarily consist of charges for various information technology conversions, consulting fees and other expenses incurred related to the REIT spin-off and severance and other employee benefit costs resulting from workforce reductions completed during the year. (g) Costs primarily represent charges related to information technology conversions and network efficiency projects. (h) Represents cash outlays for merger, integration and restructuring costs. See Note 10, “Merger, Integration and Restructuring Charges”, to the consolidated financial statements on page F-82 in the Financial Supplement, which is incorporated herein by reference, for additional information regarding the merger, integration and restructuring charges recorded by us in 2015, 2014 and 2013. |
Background and Basis for Presen
Background and Basis for Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation: | Background and Basis for Presentation: 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”), formerly Windstream Corporation. Windstream Holdings common stock trades on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol “WIN”. Effective February 28, 2015, Windstream Corporation was converted to a limited liability company (“LLC”). Following the conversion, Windstream Holdings owns a 100 percent interest in Windstream Services. The conversion of Windstream Services to a LLC has been accounted for as a change in reporting entity and accordingly, the historical equity presentation of Windstream Services reflects the effect of the LLC conversion for all periods presented. 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. As further discussed in Note 3, on April 24, 2015, we completed the spin-off of certain telecommunications network assets, including our fiber and copper networks and other real estate into an independent, publicly traded real estate investment trust (“REIT”). Upon completion of the spin-off, we amended our certificate of incorporation to decrease the number of authorized shares of common stock from 1.0 billion to 166.7 million and enacted a one -for- six reverse stock split with respect to all of our outstanding shares of common stock which became effective on April 26, 2015. All share data of Windstream Holdings presented has been retrospectively adjusted to reflect the effects of the decrease in its authorized shares and the reverse stock split, as appropriate. Description of Business – We are a leading provider of advanced network communications and technology solutions for consumers, businesses, enterprise organizations and carrier partners 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 125,000 miles. Enterprise service revenues include revenues from integrated voice and data services, advanced data, traditional voice and long-distance services provided to enterprise customers. 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. Carrier revenues include revenues from other carriers for special access circuits and fiber connections as well as voice and data services sold on a wholesale basis. 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. As further discussed in Note 3, substantially all of this business was transferred to the REIT. Basis of Presentation – The consolidated financial statements include the accounts of Windstream Holdings, Windstream Services and the accounts of its subsidiaries. All affiliated transactions have been eliminated. 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 accounting principles generally accepted in the United States (“U.S. GAAP”). Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Services. 1. Background and Basis for Presentation, Continued: Revisions to Prior Period Financial Statements During the first quarter of 2015, management became aware of and corrected for the immaterial misclassification of certain operating expenses. The previously reported amounts included certain costs related to customer service delivery, customer care and field operations that had been classified as selling, general and administrative expense and should have been reported as cost of services. These revisions did not impact previously reported operating income, net income (loss) or comprehensive (loss) income. The following table presents the effect of the revisions to Windstream Holdings’ consolidated statements of operations for the years ended December 31: 2014 2013 (Millions) As Previously Reported Effect of Revision As Revised As Previously Reported Effect of Revision As Revised Cost of services $ 2,719.3 $ 54.0 $ 2,773.3 $ 2,492.1 $ 49.1 $ 2,541.2 Selling, general and administrative $ 983.8 $ (54.0 ) $ 929.8 $ 923.4 $ (49.1 ) $ 874.3 The effect of the revisions to Windstream Services’ consolidated statements of operations would be the same for all periods presented. We evaluated the materiality of these revisions and have determined they were not material to any prior period. During the second quarter of 2015, management identified a classification error within the shareholders’ equity section of our consolidated balance sheet as of December 31, 2014. Specifically, additional paid-in capital as originally reported of $212.7 million was understated by $39.5 million while retained earnings as originally reported of zero was overstated by $39.5 million due to the manner in which dividends were recorded during the year. As this classification error had no effect on our total shareholders’ equity balance as of December 31, 2014, management determined the related impact was not material to the previously issued financial statements. The accompanying consolidated balance sheet as of December 31, 2014 has been revised to correct this classification error. Certain other prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact net income (loss) or comprehensive (loss) income. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Changes: | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies and New Accounting Pronouncements [Abstract] | |
Summary of Significant Accounting Policies: | Summary of Significant Accounting Policies and Changes: Significant Accounting Policies Use of Estimates – The preparation of financial statements, in accordance with 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. Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. Restricted Cash – Cash balances restricted for uses other than current operations have been presented as restricted cash. In connection with broadband stimulus grants, we placed cash into pledged deposit accounts representing our share of committed spend on construction contracts that were subject to review by the Rural Utilities Service (“RUS”). Changes in the restricted cash balances have been presented as cash inflows or outflows in the investing activities section of the consolidated statements of cash flows. 2. Summary of Significant Accounting Policies and Changes, Continued: Accounts Receivable – Accounts receivable consist principally of trade receivables from customers and are generally unsecured and due within 30 days. Expected credit losses related to trade accounts receivable are recorded as an allowance for doubtful accounts in the consolidated balance sheets. In establishing the allowance for doubtful accounts, we consider a number of factors, including historical collection experience, aging of the accounts receivable balances, current economic conditions and a specific customer’s ability to meet its financial obligations. When internal collection efforts on accounts have been exhausted, the accounts are written off by reducing the allowance for doubtful accounts. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-off, we must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled receivables related to communications services and product sales of $41.5 million and $40.2 million at December 31, 2015 and 2014 , respectively. Inventories – Inventories consist of finished goods and are stated at the lower of cost or market value. Cost is determined using either an average original cost or specific identification method of valuation. Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist of prepaid services, rent, insurance, maintenance contracts and refundable deposits. Prepayments are expensed on a straight-line basis over the corresponding life of the underlying agreements. Broadband Stimulus Grants – Capital expenditures related to the broadband stimulus grants were initially recorded to construction in progress. A receivable totaling 75 percent of the gross spend, representing the expected reimbursement from the RUS was recorded during the same period, offsetting the amounts recorded in construction in progress. The resulting balance sheet presentation reflects our 25 percent investment in these assets in property, plant and equipment. Once placed into service, depreciation of the asset was calculated and recorded based on our 25 percent investment in the equipment. Initial outlays to purchase stimulus-related assets have been presented as outflows in the investing activities section of the consolidated statements of cash flows. Grant funds received from the RUS have been presented as inflows in the investing activities section of the consolidated statements of cash flows. As of December 31, 2015, we had received all amounts due from the RUS related to these grants. Connect America Fund Support – In conjunction with reforming USF, the Federal Communications Commission (“FCC”) established the Connect America Fund (“CAF”) which provides incremental broadband funding to a number of unserved and underserved locations. CAF includes both short-term (“ CAF Phase I”) and a longer-term (“CAF Phase II”) framework. We received $86.7 million in CAF Phase I support for upgrades and new deployments of broadband service. Pursuant to commitments we made with the FCC, we agreed to match, on at least a dollar-for-dollar basis, the total amount of CAF Phase I support we received. As construction projects which utilized CAF Phase I support were initiated, a portion of the CAF Phase I support received was reclassified from other liabilities as an offset to construction in progress to effectively reduce the capitalized cost of the constructed asset. For each construction dollar we spent, an equal amount was transferred from other liabilities to construction in progress to reflect our dollar-for-dollar matching requirement. As of December 31, 2015, we had utilized all CAF Phase I support we had received. Comparatively, as of December 31, 2014, $53.9 million of CAF Phase I support was recorded in other current liabilities and $20.0 million was recorded in other liabilities, in the accompanying consolidated balance sheet. CAF Phase I support received and used to construct network assets during the period has been presented within the investing activities section of the consolidated statements of cash flows. On August 5, 2015, we notified the FCC of our acceptance of CAF Phase II support of approximately $175.0 million per year for a six year period to fund the deployment of voice and high-speed Internet capable infrastructures for approximately 400,000 eligible locations in 17 of the 18 states in which we are the incumbent provider. The CAF Phase II support in these 17 states will substantially replace funding we received under the federal USF high-cost support program. We declined the annual statewide funding in one state, New Mexico, where our projected cost to comply with the FCC’s deployment requirements greatly exceeded the funding offer. We will be eligible to participate in a competitive bidding process for the CAF Phase II support in New Mexico, along with other interested eligible competitors under an auction process administered by the FCC, which is expected to be held during 2016. We will continue to receive annual USF support in New Mexico frozen at 2011 levels until the CAF Phase II competitive bidding process is completed. Funds received under CAF Phase II are recognized as service revenues ratably over the period to which the funding pertains. 2. Summary of Significant Accounting Policies and Changes, Continued: Asset Disposals – On December 18, 2015, Windstream Services completed the sale of a substantial portion of our data center business to TierPoint LLC (“TierPoint”) for $574.2 million in cash, net of the $0.8 million working capital settlement, and recorded a pretax gain of $326.1 million . Excluding the effects of the gain, pretax losses for the data center business were $(0.5) million , $(17.6) million and $(19.1) million in 2015, 2014, and 2013, respectively. The sale of the data center business did not represent a strategic shift in our business nor had a major effect on our consolidated results of operations, financial position or cash flows, and accordingly, does not qualify for reporting as a discontinued operation. As part of the transaction, we established an ongoing reciprocal strategic partnership with TierPoint, allowing both companies to sell their respective products and services to each other’s prospective customers through referrals. On December 5, 2013, we completed the sale of Pinnacle Software Company (“Pinnacle”), a software company acquired in conjunction with the 2011 acquisition of PAETEC Holding Corp. (“PAETEC”) for $30.0 million in cash. The software business has been reported as discontinued operations for the year ended December 31, 2013. See Note 17 for further discussion of discontinued operations. Goodwill and Other Intangible Assets – Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets, and the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. In accordance with authoritative guidance, goodwill is to be assigned to a company’s reporting units and tested for impairment at least annually using a consistent measurement date, which for us has been January 1st of each year. Goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit for which discrete financial information is available and our executive management team regularly reviews the operating results of that component. Additionally, components of an operating segment can be combined as a single reporting unit if the components have similar economic characteristics. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit’s goodwill must be determined and compared to the carrying value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. Under the qualitative assessment, if an entity determines that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the entity is not required to complete the two step goodwill impairment evaluation. As of January 1, 2015, we had three reporting units, excluding corporate level activities. In performing our annual goodwill impairment assessment, we estimated the fair value of each of our three reporting units utilizing both an income approach and a market approach. The income approach was based on the present value of projected cash flows and a terminal value, which represented the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. The market approach included the use of comparable multiples of publicly traded companies operating in businesses similar to ours. We also reconciled the estimated fair value of our reporting units to our total invested capital. As of January 1, 2015, based on our assessment performed with respect to our three reporting units as described above, we concluded that goodwill for all of our reporting units was not impaired as of that date, and accordingly, no further analysis was required. During the fourth quarter of 2015, in connection with the disposal of our data center business and the reorganization of our business operations, we reassessed our reporting unit structure as of November 1, 2015 and determined that we had five reporting units, consisting of our four reportable operating segments and the data center operations subsequently sold and excluding corporate activities. We are required to reassign goodwill to reporting units each time we reorganize our internal reporting structure that results in a change in the composition of our reporting units. Our reporting units are not separate legal entities with discrete balance sheet information. As a result, assets and liabilities utilized in or relating to multiple reporting units have been allocated to the reporting units using consistent and reasonable allocation methodologies. Immediately prior to the change in our reporting unit structure and reassignment of goodwill, we determined that no goodwill impairment existed as of November 1, 2015. In conjunction with our change in reporting units and the reallocation of goodwill, we have also elected to change on a go forward basis the date of our annual goodwill impairment assessment from January 1st to November 1st, which we believe is preferable because it more closely aligns with the timing of our internal strategic planning process. Following the sale of the data center business, we no longer have a separate data center reporting unit for purposes of performing our annual goodwill impairment assessment. 2. Summary of Significant Accounting Policies and Changes, Continued: In completing the reassignment of goodwill as of November 1, 2015, we estimated the fair value of our reporting units using an income approach. The income approach is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. We corroborated the results of the income approach by aggregating the fair values of the reporting units and comparing the total value to overall market multiples for guideline public companies operating in the same lines of business as our reporting units. We also reconciled the estimated fair value of our reporting units to our total invested capital. Goodwill was then reassigned to the reporting units using a relative fair value allocation approach. Other intangible assets arising from business combinations such as franchise rights, customer lists, and cable franchise rights are initially recorded at estimated fair value. We amortize customer lists using the sum-of-the-digits method over an estimated life of 9 to 15 years . All other intangible assets are amortized using a straight-line method over the estimated useful lives. (See Note 4 for additional information.) Net Property, Plant and Equipment – Property, plant and equipment are stated at original cost, less accumulated depreciation. Property, plant and equipment consists of central office equipment, office and warehouse facilities, outside communications plant, customer premise equipment, furniture, fixtures, vehicles, machinery, other equipment and software to support the business units in the distribution of telecommunications products. The costs of additions, replacements, substantial improvements and extension of the network to the customer premise, including related labor costs, are capitalized, while the costs of maintenance and repairs are expensed as incurred. Depreciation expense amounted to $1,146.3 million , $1,130.3 million , and $1,049.7 million in 2015 , 2014 and 2013 , respectively. Net property, plant and equipment consisted of the following as of December 31: (Millions) Depreciable Lives 2015 2014 Land $ 43.4 $ 44.3 Building and improvements 3-40 years 604.9 655.5 Central office equipment 3-40 years 6,013.9 5,750.4 Outside communications plant 7-47 years 7,245.3 6,906.6 Furniture, vehicles and other equipment 3-23 years 1,660.2 1,616.0 Construction in progress 527.6 365.2 16,095.3 15,338.0 Less accumulated depreciation (10,815.5 ) (9,925.7 ) Net property, plant and equipment $ 5,279.8 $ 5,412.3 Of the total net property, plant and equipment at December 31, 2015 listed above, approximately $2.4 billion was transferred to Communications Sales & Leasing, Inc. (“CS&L”) in connection with the spin-off and then was leased back by Windstream Holdings (see Note 3). Under the master lease agreement with CS&L, any capital improvements, including upgrades or replacements to the leased network assets, funded by us become the property of CS&L at the time such improvements are placed in service. As further discussed in Note 5, we accounted for the spin-off transaction as a failed spin-leaseback for financial reporting purposes and, as a result the net book value of the assets initially transferred to CS&L and any subsequent capital improvements made by us continue to be reported in our consolidated balance sheet as property, plant and equipment and are depreciated over the initial lease term of 15 years . Our regulated operations use a group composite depreciation method. Under this method, when plant is retired, the original cost, net of salvage value, is charged against accumulated depreciation and no immediate gain or loss is recognized on the disposition of the plant. For our non-regulated operations, when depreciable plant is retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts, with the corresponding gain or loss reflected in operating results. The RUS has retained a security interest in the assets funded by the broadband stimulus grants over their economic life, which varies by grant for periods up to 23 years . In the event of default of terms of the agreement, the RUS could exercise the rights under its retained security interest to gain control and ownership of these assets. In addition, in the event of a proposed change in control of Windstream, the acquiring party would need to receive approval from the RUS prior to consummating the proposed transaction, for which pre-approval will not be reasonably withheld. 2. Summary of Significant Accounting Policies and Changes, Continued: We capitalize interest in connection with the acquisition or construction of plant assets. Capitalized interest is included in the cost of the asset with a corresponding reduction in interest expense. Capitalized interest amounted to $10.4 million , $3.7 million and $7.9 million in 2015 , 2014 and 2013 , respectively. Asset Retirement Obligations – We recognize asset retirement obligations in accordance with authoritative guidance on accounting for asset retirement obligations and conditional asset retirement obligations, which requires recognition of a liability for the fair value of an asset retirement obligation if the amount can be reasonably estimated. Our asset retirement obligations include legal obligations to remediate the asbestos in certain buildings if we exit them, to properly dispose of our chemically-treated telephone poles at the time they are removed from service and to restore certain leased properties to their previous condition upon exit from the lease. These asset retirement obligations totaled $53.1 million and $53.4 million as of December 31, 2015 and 2014 , respectively, and are included in other liabilities in the accompanying consolidated balance sheets. Impairment of Long-Lived Assets – We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. Investment in CS&L Common Stock – Shares of CS&L retained by Windstream Services following the spin-off of certain network and real estate assets (see Note 3) are classified as available-for-sale and recorded at fair value with unrealized gains and losses reported in accumulated other comprehensive (loss) income. No deferred income taxes are recorded with respect to the unrealized gains and losses due to the tax-free qualification of the spin-off. Information pertaining to this investment at December 31, 2015 was as follows: (Millions) Cost Fair Value Carrying Value Unrealized Loss CS&L common stock $835.7 $549.2 $549.2 $(286.5) As of December 31, 2015, Windstream Services has held the shares of CS&L common stock for less than 12 months. In assessing whether the unrealized loss was an other-than-temporary impairment, we considered that as of December 31, 2015: (i) CS&L had only been in operation for slightly more than 8 months and had not had sufficient time to execute on its strategy to expand and diversify its leasing business in any substantive way; (ii) the positive impact, prior to the recent macroeconomic environment, of CS&L’s announcement on January 6, 2016 that it had executed an agreement to acquire PEG Bandwidth, LLC, which owns an extensive fiber network; (iii) the stability of CS&L’s cash flows and leasing income streams under the master lease agreement due to the 15-year initial lease term and Windstream Services’ improved leverage following the repayment of $3.2 billion of long-term debt in connection with the spin-off; and (iv) Windstream Services’ ability to hold the CS&L common stock for up to 15 more months, a time period that is sufficient to allow for the recovery of the unrealized losses. Based on these factors, we did not consider our investment in CS&L common stock to be other-than-temporarily impaired as of December 31, 2015. Derivative Instruments – 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. 2. Summary of Significant Accounting Policies and Changes, Continued: Revenue Recognition – Service revenues are primarily derived from providing access to or usage of our networks and facilities. Service revenues are recognized over the period that the corresponding services are rendered to customers. Revenues that are billed in advance include monthly recurring network access and data services, special access and monthly recurring voice, Internet and other related charges. The unearned portion of these revenues is included in advance payments and customer deposits in the accompanying consolidated balance sheets. Revenues derived from other telecommunications services, including interconnection, long distance and enhanced service revenues are recognized monthly as services are provided. Revenue from sales of indefeasible rights to use fiber optic network facilities (“IRUs”) and the related telecommunications network maintenance arrangements is generally recognized over the term of the related lease or contract. Sales of communications products including customer premise equipment and modems are recognized when products are delivered to and accepted by customers. Fees assessed to customers for service activation are deferred upon service activation and recognized as service revenue on a straight-line basis over the expected life of the customer relationship in accordance with authoritative guidance on multiple element arrangements. Certain costs associated with activating such services are deferred and recognized as an operating expense over the same period. In determining whether to include in revenues and expenses the taxes and surcharges assessed and collected from customers and remitted to government authorities, including USF charges, sales, use, value added and excise taxes, we evaluate, among other factors, whether we are the primary obligor or principal tax payer for the fees and taxes assessed in each jurisdiction in which we operate. In those jurisdictions for which we are the primary obligor, we record the taxes and surcharges on a gross basis and include in revenues and costs of services and products. In jurisdictions in which we function as a collection agent for the government authority, we record the taxes on a net basis and exclude the amounts from our revenues and costs of services and products. Advertising – Advertising costs are expensed as incurred. Advertising expense totaled $52.9 million , $59.5 million and $42.4 million in 2015 , 2014 and 2013 , respectively. Share-Based Compensation – In accordance with authoritative guidance on share-based compensation, we value all time-based awards to employees at fair value on the date of the grant, and recognize that value as compensation expense over the period that each award vests. Performance-based awards are valued at fair value at the end of each reporting period until final performance targets are set. Share-based compensation expense for performance-based awards is recognized when it is probable and estimable as measured against performance metrics. Share-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Pension Benefits – We recognize changes in the fair value of plan assets and actuarial gains and losses due to actual experience differing from actuarial assumptions, as a component of net periodic benefit expense (income) in the fourth quarter in the year in which the gains and losses occur, and if applicable in any quarter in which an interim remeasurement is required. The remaining components of net periodic benefit (income) expense, primarily service and interest costs and assumed return on plan assets, are recognized ratably on a quarterly basis. Operating Leases – Certain of our operating lease agreements include scheduled rent escalations during the initial lease term and/or during succeeding optional renewal periods. We account for these operating leases in accordance with authoritative guidance for operating leases with non-level rent payments. Accordingly, the scheduled increases in rent expense are recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured. The difference between rent expense and rent paid is recorded as deferred rent and is included in other liabilities in the accompanying consolidated balance sheets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term, including renewal option periods that are reasonably assured. Income Taxes – We account for income taxes in accordance with guidance on accounting for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. In addition, we adopted authoritative guidance which addresses uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold that the income tax positions must achieve before being recognized in the financial statements. 2. Summary of Significant Accounting Policies and Changes, Continued: 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. Earnings (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 are 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 exclude 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. 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. Options and warrants granted in conjunction with past acquisitions are included in the computation of dilutive earnings per share using the treasury stock method. All per share information presented has been retrospectively adjusted to reflect the effects of the one -for- six reverse stock split which became effective on April 26, 2015. A reconciliation of net income (loss) and number of shares used in computing basic and diluted earnings (loss) per share was as follows for the years ended December 31: (Millions, except per share amounts) 2015 2014 2013 Basic and diluted earnings (loss) per share: Numerator: Income (loss) from continuing operations $ 27.4 $ (39.5 ) $ 235.0 Income from continuing operations allocable to participating securities (3.5 ) (5.0 ) (4.1 ) Adjusted income (loss) from continuing operations attributable to common shares 23.9 (44.5 ) 230.9 Income from discontinued operations (a) — — 6.0 Net income (loss) attributable to common shares $ 23.9 $ (44.5 ) $ 236.9 Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 102.0 100.3 98.8 Weighted average participating securities (3.1 ) (0.8 ) (0.6 ) Weighted average basic and diluted shares outstanding 98.9 99.5 98.2 Basic and diluted earnings (loss) per share: From continuing operations $.24 ($.45 ) $2.35 From discontinued operations — — .06 Net income (loss) $.24 ($.45 ) $2.41 (a) None of the income from discontinued operations was allocable to participating securit |
Completion of Spin-off of Certa
Completion of Spin-off of Certain Network and Real Estate Assets: (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Completion of Spin-off of Certain Network and Real Estate Assets [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Completion of Spin-off of Certain Network and Real Estate Assets: On April 24, 2015 , we completed the spin-off of certain telecommunications network assets, including our fiber and copper networks and other real estate, into an independent, publicly traded REIT. The spin-off also included substantially all of our consumer CLEC business. The telecommunications network assets consisted of copper cable and fiber optic cable lines, telephone poles, underground conduits, concrete pads, attachment hardware (e.g., bolts and lashings), pedestals, guy wires, anchors, signal repeaters, and central office land and buildings, with a net book value of approximately $2.5 billion at the time of spin-off. We requested and received a private letter ruling from the Internal Revenue Service on the qualification of the spin-off as a tax-free transaction and the designation of the telecommunications network assets as real estate. Pursuant to the plan of distribution and immediately prior to the effective time of the spin-off, we contributed the telecommunications network assets and the consumer CLEC business to Communications Sales & Leasing, Inc. (“CS&L”), a wholly owned subsidiary of Windstream, in exchange for: (i) the issuance to Windstream of CS&L common stock of which 80.4 percent of the shares were distributed on a pro rata basis to Windstream’s stockholders, (ii) cash payment to Windstream in the amount of $1.035 billion and (iii) the distribution by CS&L to Windstream of approximately $2.5 billion of CS&L debt securities. After giving effect to the interest in CS&L retained by Windstream, each Windstream Holdings shareholder received one share of CS&L for every five shares of Windstream Holdings common stock held as of the record date of April 10, 2015 in the form of a tax-free dividend. An ex-date of April 27, 2015 was established by NASDAQ, and all trades through the close of business on April 24, 2015 carried the right to receive the distribution. No fractional shares were distributed in connection with the spin-off, with a cash payment being made in lieu of any fractional shares. In connection with the distribution, CS&L borrowed approximately $2.14 billion through a new senior credit agreement. CS&L also issued debt securities in the private placement market to fund the cash payment and to issue its debt securities to Windstream, consisting of $1,110.0 million aggregate principal amount of 8.25 percent senior notes due April 15, 2023 and $400.0 million aggregate principal amount of 6.00 percent senior secured notes due October 15, 2023 . The CS&L unsecured notes and the borrowings under CS&L’s new senior credit agreement were issued at a discount, and accordingly, at the date of distribution, CS&L issued to Windstream approximately $2.5 billion of its debt securities consisting of $970.2 million in term loans, $400.0 million in secured and $1,077.3 million in unsecured notes (the “CS&L Securities”). In connection with the spin-off transaction, Windstream entered into an exchange agreement (the “Exchange Agreement”), with J.P. Morgan Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc. (together, the “Investment Banks”), and CS&L. Pursuant to the terms of the Exchange Agreement, Windstream agreed to transfer the CS&L Securities and cash to the Investment Banks, in exchange for the transfer by the Investment Banks to Windstream of certain debt securities of Windstream Services consisting of $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 held by the Investment Banks. On April 24, 2015 , following the completion of the spin-off transaction, Windstream and the Investment Banks completed the exchange of debt securities pursuant to the terms of the Exchange Agreement. We incurred approximately $35.4 million of costs in completing the debt-for-debt exchange. In conjunction with the retirement of debt, Windstream Services terminated seven of its ten interest rate swaps designated as cash flow hedges of the variable cash flows paid on its senior secured credit facility. Windstream Services paid $22.7 million to terminate the interest rate swaps. As of the spin-off date, excluding restricted shares held by Windstream employees and directors, Windstream retained a passive ownership interest in approximately 19.6 percent of the common stock of CS&L. Windstream intends to use all of its shares of CS&L to retire additional Windstream Services debt within 18 to 24 months from the date of the spin-off, subject to market conditions. For employees and directors remaining with Windstream, restricted stock awarded pursuant to our equity incentive plans and held by employees and directors at the time of the distribution continue to represent the right to receive shares of Windstream Holdings’ common stock. In addition, the holders of these restricted shares received restricted shares of CS&L common stock equivalent to the number of shares of CS&L common stock that was received with respect to each share of unrestricted Windstream Holdings’ common stock at the time of the distribution. The existing Windstream Holdings’ restricted stock and newly issued CS&L restricted stock remain subject to vesting and other terms and conditions as prescribed by our equity incentive plans. The number of Windstream Holdings’ shares underlying any outstanding stock options and the related per share exercise price were adjusted to maintain both the aggregate fair market value of stock underlying the stock options and the relationship between the per share exercise price and the related per share market value, pursuant to the terms of the applicable Windstream Holdings’ equity incentive plans and taking into account the change in the market value of Windstream Holdings’ common stock as a result of the distribution. As further discussed in Note 5, following the spin-off, Windstream entered into an agreement to lease back the telecommunications network assets from CS&L. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets: | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets: Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets, and the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. Changes in the carrying amount of goodwill were as follows: (Millions) Balance at December 31, 2014 $ 4,352.8 Dispositions during the period: Consumer CLEC business transferred to CS&L in conjunction with the spin-off (a) (12.8 ) Data center business sold to TierPoint (a) (126.4 ) Balance at December 31, 2015 $ 4,213.6 (a) Represents the portion of historical goodwill allocated to the disposed businesses. As previously discussed in Note 2 in connection with the restructuring of our operations, we reassessed our reporting unit structure as November 1, 2015 and reassigned goodwill to our new reporting units using a relative fair value method. Goodwill assigned to our four operating segments was as follows: (Millions) Consumer and Small Business - ILEC $ 2,321.2 Carrier 1,176.4 Enterprise 598.0 Small Business - CLEC 118.0 Total goodwill $ 4,213.6 Immediately prior to the change in our reporting unit structure and reassignment of goodwill, we determined that no goodwill impairment existed as of November 1, 2015. Intangible assets were as follows at December 31: 2015 2014 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (286.1 ) $ 999.0 $ 1,285.1 $ (243.3 ) $ 1,041.8 Customer lists (a) 1,791.7 (1,304.7 ) 487.0 1,914.0 (1,203.4 ) 710.6 Cable franchise rights 17.3 (6.8 ) 10.5 17.3 (5.7 ) 11.6 Other (b) 9.6 (1.4 ) 8.2 — — — Balance $ 3,103.7 $ (1,599.0 ) $ 1,504.7 $ 3,216.4 $ (1,452.4 ) $ 1,764.0 (a) In connection with the spin-off, we transferred customer lists with a gross cost of $34.5 million and a net carrying value of $13.1 million to CS&L (see Note 3). At the date of sale, customer lists associated with the data center operations had a gross cost of $87.8 million and a net carrying value of $35.7 million . (b) During 2015, we acquired for cash non-exclusive licenses to various patents, which are being amortized on a straight-line basis over the estimated useful life of 3 years . 4. Goodwill and Other Intangible Assets, Continued: Intangible asset amortization methodology and useful lives were as follows as of December 31, 2015 : Intangible Assets Amortization Methodology Estimated Useful Life Franchise rights straight-line 30 years Customer lists sum of years digits 9 - 15 years Cable franchise rights straight-line 15 years Other straight-line 3 years Amortization expense for intangible assets subject to amortization was $220.2 million , $256.1 million and $291.2 million in 2015 , 2014 and 2013 , respectively. Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the years ended December 31 : Year (Millions) 2016 $ 185.3 2017 158.7 2018 131.9 2019 104.8 2020 86.4 Thereafter 837.6 Total $ 1,504.7 |
Long-term Debt and Lease Obliga
Long-term Debt and Lease Obligations: | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-term Debt and Capital Lease Obligations: | Long-term Debt and Lease Obligations: 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 December 31: (Millions) 2015 2014 Issued by Windstream Services: Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 (a) $ — $ 344.3 Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 (a) — 255.0 Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 (a) — 1,318.1 Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 578.2 584.1 Senior secured credit facility, Revolving line of credit – variable rates, due 300.0 625.0 Debentures and notes, without collateral: 2017 Notes – 7.875%, due November 1, 2017 (b) 904.1 1,100.0 2018 Notes – 8.125%, due September 1, 2018 — 400.0 2020 Notes – 7.750%, due October 15, 2020 700.0 700.0 2021 Notes – 7.750%, due October 1, 2021 (b) 920.4 950.0 2022 Notes – 7.500%, due June 1, 2022 (b) 485.9 500.0 2023 Notes – 7.500%, due April 1, 2023 (b) 540.1 600.0 2023 Notes – 6.375%, due August 1, 2023 700.0 700.0 Issued by subsidiaries of the Company: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 100.0 100.0 Cinergy Communications Company – 6.58%, due January 1, 2022 — 1.9 Debentures and notes, without collateral: PAETEC 2018 Notes – 9.875%, due December 1, 2018 — 450.0 Premium on long-term debt, net (c) 4.6 23.3 Unamortized debt issuance costs (c) (62.8 ) (87.7 ) 5,170.5 8,564.0 Less current maturities (5.9 ) (717.5 ) Total long-term debt $ 5,164.6 $ 7,846.5 Weighted average interest rate 6.8 % 6.5 % Weighted maturity 5.3 years 5.1 years (a) Debt obligation was retired in connection with completion of the debt-for-debt exchange (see Note 3). (b) During 2015, Windstream Services repurchased in the open market a portion of this debt obligation. (c) The net premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. 5. Long-term Debt and Lease Obligations, Continued: Senior Secured Credit Facility - In connection with the REIT spin-off, on April 24, 2015, Windstream Services amended its existing senior secured credit facility which includes a revolving line of credit in an aggregate principal amount of $1,250.0 million and a 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 term loans 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 term loans shall at no time be less than 0.75 percent and 1.75 percent , respectively. 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. The senior secured credit facility is guaranteed, jointly and severally, by certain of Windstream Services’ wholly owned subsidiaries. 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. 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 from December 17, 2015 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 2015, Windstream Services borrowed $2,335.0 million under the revolving line of credit in its senior secured credit facility and through completion of the debt-for-debt exchange and repayments retired $2,660.0 million of these borrowings in 2015 . Considering letters of credit of $23.1 million , the amount available for borrowing under the revolving line of credit was $926.9 million at December 31, 2015 . The variable interest rate on the revolving line of credit ranged from 2.19 percent to 4.50 percent , and the weighted average rate on amounts outstanding was 2.39 percent during 2015, as compared to variable interest rates during 2014 which ranged from 2.41 percent to 4.50 percent with a weighted average rate on amounts outstanding of 2.49 percent . 5. Long-term Debt and Lease Obligations, Continued: Debentures and Notes Repaid in 2015 Partial Repurchase of Senior Notes - In August 2015, Windstream Services’ board of directors authorized a debt repurchase program pursuant to which Windstream Services may purchase or redeem up to $300.0 million of any of its unsecured notes through one or more open market purchase offers, tender offers, privately negotiated transactions, or other purchase transactions, with the amount of such purchases funded by either borrowings under the revolving line of credit, new term loans under the senior secured credit facility, or a combination thereof. On December 17, 2015, Windstream Services’ board of directors increased the capacity of the debt repurchase program authorizing Windstream Services to repurchase up to an additional $200.0 million of its unsecured notes. During the third and fourth quarters of 2015, Windstream Services repurchased in the open market $299.5 million aggregate principal amount of its senior unsecured notes consisting of the following: • $195.9 million aggregate principal amount of 7.875 percent senior unsecured notes due November 1, 2017, (the “2017 Notes) at a repurchase price of $209.6 million , including accrued and unpaid interest; • $29.6 million aggregate principal amount of 7.750 percent senior unsecured notes due October 1, 2021, (the “2021 Notes), at a repurchase price of $25.8 million , including accrued and unpaid interest; • $14.1 million aggregate principal amount of 7.500 percent senior unsecured notes due June 1, 2022, (the “2022 Notes), at a repurchase price of $11.5 million , including accrued and unpaid interest; and • $59.9 million aggregate principal amount of 7.500 percent senior unsecured notes due April 1, 2023, (the “2023 Notes) at a repurchase price of $50.2 million , including accrued and unpaid interest. At the time of repurchase, there was $3.9 million in unamortized net discount and debt issuance costs related to the repurchased notes. The repurchases were funded utilizing available borrowings under the amended revolving line of credit. 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 Notes - 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. Windstream used a portion of the $1.035 billion cash payment received from CS&L in conjunction with the spin-off of certain telecommunication network assets to redeem these two debt obligations (see Note 3). 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 Services may call certain debentures and notes at various premiums on early redemption. These debentures and notes consist of $700.0 million in aggregate principal amount of 7.750 percent senior notes due October 15, 2020, the remaining aggregate principal amounts due related to the 2021, 2022, and 2023 Notes and $700.0 million in aggregate principal amount of 6.375 percent senior notes due August 1, 2023 . In addition, Windstream Services may call debt issued by Windstream Holdings of the Midwest, Inc. at various premiums upon early redemption. 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 December 31, 2015 , Windstream Services was in compliance with all of these covenants. 5. Long-term Debt and Lease Obligations, Continued: 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 of Windstream Services’ outstanding voting stock, 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 December 31, 2015 . Maturities for long-term debt outstanding as of December 31, 2015 , excluding $4.6 million of unamortized net premium and $62.8 million of unamortized debt issuance costs, were as follows for the years ended December 31: Year (Millions) 2016 $ 5.9 2017 910.0 2018 5.9 2019 560.5 2020 1,000.0 Thereafter 2,746.4 Total $ 5,228.7 Loss on Extinguishment of Debt The net loss on extinguishment of debt was as follows for the year ended December 31 : (Millions) 2015 Senior secured credit facility borrowings: Premium on early redemption $ (6.6 ) Third-party fees for early redemption (0.7 ) Unamortized debt issuance costs on original issuance (8.6 ) Loss on early extinguishment of senior secured credit facility borrowings (15.9 ) 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 ) 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 ) Partial repurchase of 2017, 2021, 2022 and 2023 Notes: Discount on early repurchase 10.9 Unamortized net discount on original issuance (0.7 ) Unamortized debt issuance costs on original issuance (3.2 ) Gain on early extinguishment of partial repurchase of 2017, 7.0 Cinergy Communications Company Notes: Premium on early redemption (0.5 ) Loss on early extinguishment of Cinergy Communication Company Notes (0.5 ) Total loss on early extinguishment of debt $ (36.4 ) 5. Long-term Debt and Lease Obligations, Continued: As previously discussed in conjunction with the spin-off, Windstream completed a debt-for-debt exchange and also repaid the remaining 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 . As previously discussed, Windstream Services retired all of the outstanding 2018 Notes and all of the PAETEC 2018 Notes in conjunction with the spin-off. The retirements were accounted for under the extinguishment method of accounting, and as a result, Windstream Services recognized losses due to the extinguishment of the aforementioned debt obligations during the second quarter of 2015. Under the debt repurchase program previously discussed, Windstream Services repurchased in the open market certain of its senior unsecured notes representing an aggregate principal amount of $299.5 million . The partial repurchase was accounted for under the extinguishment method of accounting, and as a result, Windstream Services recognized a pretax gain of $7.0 million . The loss on extinguishment of debt was as follows for the year ended December 31 : (Millions) 2013 2019 Notes: Premium on early redemption $ (13.6 ) Third-party fees for early redemption (0.5 ) Unamortized debt issuance costs on original issuance (0.6 ) Loss on early extinguishment for 2019 Notes (14.7 ) Senior secured credit facility: Unamortized debt issuance costs on original issuance (2.5 ) Loss on early extinguishment for senior secured credit (2.5 ) PAETEC 2017 Notes: Premium on early redemption (51.5 ) Third-party fees for early redemption (1.0 ) Unamortized premium on original issuance 41.2 Loss on early extinguishment for PAETEC 2017 Notes (11.3 ) Total loss on early extinguishment of debt $ (28.5 ) During 2013, Windstream Services retired all $500.0 million of the outstanding $500.0 million aggregate principal amount of 7.000 percent senior unsecured notes due March 15, 2019 (“2019 Notes”) using proceeds from the private placement of $500.0 million in aggregate principal amount of 7.750 percent senior unsecured notes due October 1, 2021 . Windstream Services also retired all $650.0 million of 8.875 percent notes due June 30, 2017 (“ PAETEC 2017 Notes”). The PAETEC 2017 Notes were repurchased using proceeds from the issuance of the $700.0 million in aggregate principal amount of 6.375 percent senior unsecured notes due August 1, 2023 . Windstream Services also amended its senior secured credit facility including issuance of Tranche B4, the proceeds of which were used to repay Tranche A2, Tranche B and Tranche B2 during 2013. The retirements and a portion of the credit facility amendment were accounted for under the extinguishment method of accounting, and as a result, Windstream Services recognized losses due to the extinguishment of the aforementioned debt obligations during 2013. 5. Long-term Debt and Lease Obligations, Continued: Long-term Lease Obligations Leaseback of Telecommunications Network Assets - Following the spin-off transaction (see Note 3), on April 24, 2015, Windstream Holdings entered into a long-term triple-net master lease with CS&L to lease back the telecommunications network assets. Under terms of the master lease, Windstream Holdings has the exclusive right to use the telecommunications network assets for an initial term of 15 years with up to four , five -year renewal options. Windstream Holdings is required to pay all property taxes, insurance, and repair or maintenance costs associated with the leased property. The master lease provides for an annual rent of $650.0 million paid in equal monthly installments in advance and is fixed for the first three years. Thereafter, rent will increase on an annual basis at a base rent escalator of 0.5 percent . Future lease payments due under the agreement reset to fair market rental rates upon Windstream Holdings’ execution of the renewal options. During December 2015, we requested and CS&L agreed to fund $43.1 million of capital expenditures. As a result, the annual lease payment increased at a rate of 8.125 percent of the funds received from CS&L, or from $650.0 million to $653.5 million . CS&L also has the right, but not the obligation, upon Windstream’s request, to fund additional capital expenditures of Windstream in an aggregate amount of up to $250.0 million for a maximum period of five years . Monthly rent paid by us to CS&L will increase in accordance with the master lease effective as of the date of the funding. If CS&L exercises this right, the lease payments under the master lease will be adjusted at a rate of 8.125 percent of the capital expenditures funded by CS&L during the first two years and at a floating rate based on CS&L’s cost of capital thereafter. Additionally, if CS&L agrees to fund the entire $250.0 million , the initial term of the master lease will be increased from 15 years to 20 years and the number of renewal terms will be reduced from four renewal terms of five years each to three renewal terms of five years each. Due to various forms of continuing involvement, including Windstream Services or its subsidiaries, retaining bare legal title (but not beneficial ownership) to the various easements, permits and pole attachments related to the telecommunications network assets, we accounted for the transaction as a failed spin-leaseback for financial reporting purposes. As a result, the net book value of the network assets transferred to CS&L continue to be reported in our consolidated balance sheet and all depreciable assets will be fully depreciated over the initial lease term of 15 years . At inception of the master lease, we recorded a long-term lease obligation of approximately $5.1 billion equal to the sum of the minimum future annual lease payments over the 15 -year lease term discounted to the present value based on Windstream Services’ incremental borrowing rate. Funding received from CS&L in December 2015 for capital expenditures was recorded as an increase to the long-term lease obligation. The effective interest rate on the long-term lease obligation is approximately 10.1 percent . As annual lease payments are made, a portion of the payment will decrease the long-term lease obligation with the balance of the payment charged to interest expense using the effective interest method. As the master lease was entered into by Windstream Holdings for the direct benefit of Windstream Services and its subsidiaries, Windstream Services is also deemed to have continuing involvement due to retaining its regulatory obligations associated with operating the telecommunications network assets. Accordingly, the effects of the failed spin-leaseback transaction have also been reflected in the standalone consolidated financial statements of Windstream Services. Notwithstanding the foregoing accounting treatment, neither Windstream Services or its subsidiaries is a counterparty or obligor to the master lease agreement. Leaseback of Real Estate Contributed to Pension Plan - During the third quarter of 2014, we contributed certain of our owned real property to the Windstream Pension Plan and then entered into agreements to leaseback the properties for continued use by our operating subsidiaries. Independent appraisals of the properties contributed were obtained and at the dates of contribution the properties’ aggregate fair value was $80.9 million . The lease agreements include initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.3 million . The lease agreements provide for annual rent increases ranging from 2.0 percent to 3.0 percent over the initial lease term and may be renewed for up to three additional five -year terms. The properties are managed on behalf of the Windstream Pension Plan by an independent fiduciary and terms of the lease agreements were negotiated with the fiduciary on an arm’s-length basis. During the fourth quarter of 2015 in conjunction with the sale of the data center business, Windstream Services repurchased at fair value one of the properties contributed to the Windstream Pension Plan for $8.2 million in cash. As a result, we derecognized a portion of the associated long-term lease obligation of $8.7 million and recorded a pretax gain of $0.5 million . Following the repurchase, aggregate annual rent due under the lease agreements declined from approximately $6.3 million to $6.0 million . 5. Long-term Debt and Lease Obligations, Continued: Due to various forms of continuing involvement, including Windstream Services’ benefit from the future appreciation of the property, the transaction has been accounted for as a failed contribution-leaseback. Accordingly, the properties continue to be reported as assets of Windstream and depreciated over their remaining useful lives until termination of the lease agreement. We recorded a long-term lease obligation equal to the fair value of the properties at the date of contribution. No gain or loss was recognized on the contribution. As lease payments are made to the Windstream Pension Plan, a portion of the payment is applied to the long-term lease obligation with the balance of the payment charged to interest expense using the effective interest method. A summary of the current and noncurrent portions of the long-term lease obligations was as follows: December 31, 2015 December 31, 2014 (Millions) Current Noncurrent Total Current Noncurrent Total Assets Subject to Leaseback: Telecommunications network assets $ 152.7 $ 4,927.7 $ 5,080.4 $ — $ — $ — Real estate contributed to pension plan — 72.7 72.7 — 81.0 81.0 Total $ 152.7 $ 5,000.4 $ 5,153.1 $ — $ 81.0 $ 81.0 Undiscounted future minimum payments during the initial terms of the leases were as follows for the years ended December 31: (Millions) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan Total Year 2016 $ 653.6 $ 6.0 $ 659.6 2017 653.5 6.2 659.7 2018 655.4 6.3 661.7 2019 658.9 6.5 665.4 2020 662.2 6.7 668.9 Thereafter 6,328.5 76.3 6,404.8 Total $ 9,612.1 $ 108.0 $ 9,720.1 Capital Lease Obligations We lease facilities and equipment for use in our operations. These facilities and equipment are included in outside communications plant in property, plant and equipment in the accompanying consolidated balance sheets. Lease agreements that include a bargain purchase option, transfer of ownership, contractual lease term equal to or greater than 75 percent of the remaining estimated economic life of the leased facilities or equipment or minimum lease payments equal to or greater than 90 percent of the fair value of the leased facilities or equipment are accounted for as capital leases in accordance with authoritative guidance for capital leases. These capital lease obligations are included in the accompanying consolidated balance sheets within other current liabilities and other liabilities. During 2015 and 2014, we acquired equipment under capital leases of $36.4 million and $0.5 million , respectively. 5. Long-term Debt and Lease Obligations, Continued: Future minimum lease payments under capital lease obligations were as follows for the years ended December 31: Year (Millions) 2016 $ 48.2 2017 13.0 2018 0.6 2019 0.6 2020 0.5 Thereafter 1.2 Total future payments 64.1 Less: Amounts representing interest 2.9 Present value of minimum lease payments $ 61.2 Interest Expense Interest expense was as follows for the years ended December 31: (Millions) 2015 2014 2013 Interest expense - long-term debt $ 442.0 $ 539.9 $ 584.7 Interest expense - long-term lease obligations: Telecommunications network assets 351.6 — — Real estate contributed to pension plan 6.7 2.8 — Impact of interest rate swaps 20.5 29.0 48.0 Interest on capital leases and other 2.8 3.8 2.9 Less capitalized interest expense (10.4 ) (3.7 ) (7.9 ) Total interest expense $ 813.2 $ 571.8 $ 627.7 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivatives [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments: Prior to the spin-off of CS&L, Windstream Services had entered into four 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 $900.0 million and were scheduled to mature October 17, 2019. The fixed interest rate paid was 3.391 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 addition, Windstream Services also had entered into six pay fixed, receive variable interest rate swap agreements, designated as cash flow hedges of the previously unhedged interest rate risk inherent in its senior secured credit facility. These swaps had a fixed notional value of $750.0 million and were scheduled to mature on June 17, 2016. The fixed rate paid ranged from 1.026 to 1.040 percent plus a fixed spread of 2.750 percent . The variable rate received reset on the seventeenth day of each month to the one-month LIBOR subject to a minimum rate of 0.750 percent . All ten of the swaps were designated as cash flow hedges of the benchmark LIBOR interest rate risk created by the variable rate cash flows paid on Windstream Services’ senior secured credit facility, which had varying maturity dates from December 30, 2016 to January 23, 2020. In conjunction with completing the debt-for-debt exchange previously discussed (see Note 3), Windstream Services terminated seven of the ten interest rate swaps, consisting of all six of the swaps scheduled to mature on June 17, 2016 and one of the swaps scheduled to mature on October 17, 2019. As a result, Windstream Services paid $22.7 million to the respective counterparties and recognized a pretax loss of $1.7 million upon termination of the seven interest rate swap agreements as a reclassification from accumulated other comprehensive (loss) income to other income (expense). Two of the remaining three interest rate swaps were renegotiated to more closely align with the characteristics of Tranche B5 of Windstream Services’ senior secured credit facility. Windstream Services de-designated the three remaining swaps and froze the accumulated losses of $3.0 million reported in accumulated other comprehensive income related to these swaps. This frozen balance will be amortized from accumulated other comprehensive income to interest expense over the remaining life of the original swaps. 6. Derivative Instruments, Continued: The three remaining swaps have a notional value of $675.0 million and are hedging probable variable cash flows which extend up to one year beyond the maturity of certain components of the 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 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. 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 our interest rate swap agreements: (Millions, except for percentages) 2015 2014 Designated portion, measured at fair value Other assets $ — $ 0.4 Other current liabilities $ 18.3 $ 28.5 Other non-current liabilities $ 33.4 $ 48.7 Accumulated other comprehensive (loss) income $ (0.9 ) $ 4.9 De-designated portion, unamortized value Accumulated other comprehensive loss $ (0.2 ) $ (8.8 ) Weighted average fixed rate paid 2.99 % 3.57 % Variable rate received 0.35 % 0.16 % Derivatives are assessed for effectiveness each quarter and any ineffectiveness is recognized in other income (expense), net in our consolidated statements of operations. Ineffectiveness recognized on the cash flow hedges was $(3.7) million , $(0.3) million and $1.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. All or a portion of the change in fair value of Windstream Services’ interest rate swap agreements recorded in accumulated other comprehensive income 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 December 31, 2015 . 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 $7.7 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 December 31, 2015 . 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 the value of these derivative instruments were as follows for the years ended December 31: (Millions) 2015 2014 2013 Changes in fair value of effective portion, net of tax (a) $ (5.4 ) $ (14.3 ) $ 17.4 Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) $ 7.1 $ 9.8 $ 22.2 (a) Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. 6. Derivative Instruments, Continued: 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 $55.4 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 December 31, 2015 , 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 tables present the assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2015 and 2014 . As of 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 that date. Information pertaining to derivative assets was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Recognized Assets Net Amount of Assets presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2014: Interest rate swaps $ 0.4 $ 0.4 $ (0.3 ) $ — $ 0.1 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 December 31, 2015: Interest rate swaps $ 51.7 $ 51.7 $ — $ — $ 51.7 December 31, 2014: Interest rate swaps $ 77.2 $ 77.2 $ (0.3 ) $ — $ 76.9 |
Fair Value Measurements_
Fair Value Measurements: | 12 Months Ended |
Dec. 31, 2015 | |
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 valuation of fair value 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 year ended December 31, 2015 requiring these non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable, accounts receivable, investment in CS&L common stock, accounts payable, long-term debt and interest rate swaps. The carrying amount of cash, restricted 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 December 31, 2015 or 2014. The fair values of cash equivalents, investment in CS&L common stock, interest rate swaps and long-term debt were determined using the following inputs at December 31: (Millions) 2015 2014 Recorded at Fair Value in the Financial Statements: Investment in CS&L common stock - Level 1 $ 549.2 $ — Derivatives: Interest rate swap assets - Level 2 $ — $ 0.4 Interest rate swap liabilities - Level 2 $ 51.7 $ 77.2 Not Recorded at Fair Value in the Financial Statements: (a) Long-term debt, including current maturities - Level 2 $ 4,452.7 $ 8,777.5 (a) Recognized at carrying value of $5,233.3 million and $8,651.7 million in long-term debt, including current maturities, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of December 31, 2015 and 2014 , respectively. The fair value of CS&L common stock is 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 December 31, 2015 and 2014 , the fair values of the interest rate swaps were reduced by $2.9 million and $3.3 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 other transfers within the fair value hierarchy during the year ended December 31, 2015 . |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits: | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans and Postretirement Benefits: | 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) and postretirement benefits income were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (Millions) 2015 2014 2013 2015 2014 2013 Benefits earned during the year $ 9.5 $ 8.2 $ 10.5 $ — $ — $ — Interest cost on benefit obligation 53.2 58.9 52.5 1.3 1.3 1.4 Net actuarial loss (gain) 8.7 128.6 (110.4 ) — — — Amortization of net actuarial loss — — — 1.0 0.1 1.7 Amortization of prior service credit (0.1 ) (0.1 ) (0.1 ) (3.8 ) (5.8 ) (8.6 ) Plan curtailments and settlements — — — (18.0 ) (11.5 ) (32.2 ) Expected return on plan assets (70.1 ) (67.3 ) (67.8 ) — — — Net periodic benefit expense (income) $ 1.2 $ 128.3 $ (115.3 ) $ (19.5 ) $ (15.9 ) $ (37.7 ) During 2015, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective on June 8, 2015, October 1, 2015, and November 1, 2015. As a result, we remeasured the plan and recognized curtailment gains totaling $18.0 million , of which $14.3 million was recognized in cost of services expenses and $3.7 million was recognized in selling, general and administrative expenses, with the offsetting effects recorded as a reduction in accumulated other comprehensive income of $18.0 million . During 2014, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective on April 1, 2014, April 3, 2014, May 1, 2014, and May 31, 2014. We also eliminated the subsidies for certain active and current retirees effective January 1, 2015. As a result, we remeasured the plan and recognized curtailment and settlement gains totaling $11.5 million , of which $7.1 million was recognized in cost of services expenses and $4.4 million was recognized in selling, general and administrative expenses, with the offsetting effects recorded as a reduction in accumulated other comprehensive income of $10.0 million and other liabilities of $1.5 million . During 2013, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effect ive August 1, 2013, October 1, 2013 or January 1, 2014. As a result, we remeasured the plan and recognized curtailment gains totaling $32.2 million , of which $24.1 million was recognized in cost of services expenses and $8.1 million was recognized in selling, general and administrative expenses, with offsetting effect s recorded as reductions in accumulated other comprehensive income of $31.8 million and other liabilities of $0.4 million . We recognize actuarial gains and losses for pension benefits as a component of net periodic benefit expense (income) in the year in which the gains and losses occur. In determining our annual postretirement benefits cost, we amortize unrecognized actuarial gains and losses exceeding 10.0 percent of the projected benefit obligation over the lesser of 10 years or the average remaining service life of active employees. We do not amortize unrecognized actuarial gains and losses below the 10.0 percent corridor. 8. Employee Benefit Plans and Postretirement Benefits, Continued: A summary of plan assets, projected benefit obligation and funded status of the plans (including executive retirement agreements) were as follows at December 31: Pension Benefits Postretirement Benefits (Millions) 2015 2014 2015 2014 Fair value of plan assets at beginning of year $ 1,042.0 $ 959.7 $ 0.3 $ 0.3 Actual return on plan assets (1.6 ) 144.6 — — Employer contributions 0.9 89.9 2.5 3.8 Participant contributions — — 4.3 0.4 Benefits paid (a) (74.7 ) (65.6 ) (6.7 ) (4.2 ) Settlements (b) — (86.6 ) — — Fair value of plan assets at end of year $ 966.6 $ 1,042.0 $ 0.4 $ 0.3 Projected benefit obligation at beginning of year $ 1,331.8 $ 1,210.6 $ 30.6 $ 31.4 Interest cost on projected benefit obligations 53.2 58.9 1.3 1.3 Service costs 9.5 8.2 — — Participant contributions — — 4.3 0.4 Plan amendments (1.4 ) — (0.4 ) (0.2 ) Actuarial (gain) loss (62.9 ) 206.3 (0.1 ) 3.4 Benefits paid (a) (74.7 ) (65.6 ) (6.7 ) (4.2 ) Settlements (b) — (86.6 ) — (1.5 ) Projected benefit obligation at end of year $ 1,255.5 $ 1,331.8 $ 29.0 $ 30.6 Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: Current liabilities $ (1.9 ) $ (0.8 ) $ (2.1 ) $ (2.3 ) Noncurrent liabilities (287.0 ) (289.0 ) (26.5 ) (28.0 ) Funded status recognized in the consolidated balance sheets $ (288.9 ) $ (289.8 ) $ (28.6 ) $ (30.3 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss $ — $ — $ (4.7 ) $ (5.8 ) Prior service credits 1.8 0.5 7.8 29.2 Net amount recognized in accumulated other comprehensive income $ 1.8 $ 0.5 $ 3.1 $ 23.4 (a) During 2015 and 2014 , pension benefits paid from Windstream’s assets totaled $0.9 million and $0.8 million , respectively. All postretirement benefits in both years were paid from Windstream’s assets. (b) In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan, during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream. Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension benefit as of December 2014. All lump-sum payments were made from existing plan assets. Estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit (income) expense in 2016, including executive retirement agreements, are as follows: (Millions) Pension Benefits Postretirement Benefits Net actuarial loss $ — $ 0.5 Prior service credits $ (0.3 ) $ (1.7 ) 8. Employee Benefit Plans and Postretirement Benefits, Continued: The accumulated benefit obligation of our pension plan and executive retirement agreements, was $1,236.9 million , $1,309.7 million and $1,193.0 million at December 31, 2015 , 2014 and 2013 , respectively. Assumptions – Actuarial assumptions used to calculate pension and postretirement benefits (income) expense were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (a) (Millions) 2015 2014 2013 2015 2014 2013 Discount rate 4.14 % 5.01 % 3.85 % 4.21 % 4.76 % 3.87 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % 2.00 % — % — % — % (a) As a result of the various remeasurements of our postretirement benefit obligations previously discussed, key assumptions including the discount rate were updated as of each remeasurement date. Actuarial assumptions used to calculate the projected benefit obligations were as follows at December 31: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Discount rate 4.55 % 4.14 % 4.67 % 4.21 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % — % — % In developing the expected long-term rate of return assumption, we considered the plan’s historical rate of return, as well as input from our investment advisors. Projected returns on qualified pension plan assets were based on broad equity and bond indices and include a targeted asset allocation of 25.0 percent to equities, 55.0 percent to fixed income securities, and 20.0 percent to alternative investments, with an aggregate expected long-term rate of return of approximately 7.0 percent . Information regarding the healthcare cost trend rate was as follows for the years ended December 31: 2015 2014 Healthcare cost trend rate assumed for next year 7.00 % 7.50 % Rate that the cost trend ultimately declines to 5.00 % 5.00 % Year that the rate reaches the terminal rate 2024 2020 For the year ended December 31, 2015 , a one percent increase in the assumed healthcare cost trend rate would increase the postretirement benefit cost by approximately $0.1 million , while a one percent decrease in the rate would reduce the postretirement benefit cost by approximately $0.1 million . As of December 31, 2015 , a one percent increase in the assumed healthcare cost trend rate would increase the postretirement benefit obligation by approximately $2.8 million , while a one percent decrease in the rate would reduce the postretirement benefit obligation by approximately $2.3 million . Plan Assets – Our pension plan assets are allocated to asset categories based on the specific strategy employed by the asset’s investment manager. The asset allocation for our pension plan by asset category was as follows for the years ended December 31: Target Allocation Percentage of Plan Assets Asset Category 2016 2015 2014 Equity securities 18.6% - 30.6% 23.3 % 26.9 % Fixed income securities 41.7% - 68.7% 53.4 % 53.9 % Alternative investments 13.7% - 23.7% 21.8 % 18.2 % Money market and other short-term interest bearing securities 0.0% - 4.0% 1.5 % 1.0 % 100.0 % 100.0 % 8. Employee Benefit Plans and Postretirement Benefits, Continued: We utilize a third party to assist in evaluating the allocation of the total assets in the pension trust, taking into consideration the pension liabilities and funded status of the pension plan. Assets are managed utilizing a liability driven investment approach, meaning that assets are managed within a risk management framework which addresses the need to generate incremental returns in the context of an appropriate level of risk, based on plan liability profiles and changes in funded status. The return objectives are to satisfy funding obligations when and as prescribed by law and to keep pace with the growth of the pension plan liabilities. Given the long time horizon for paying out benefits and our strong financial condition, the pension plan can accept an average level of risk relative to other similar plans. The liquidity needs of the pension plan are manageable given that lump sum payments are not available to most participants. Equity securities include stocks of both large and small capitalization domestic and international companies. Equity securities are expected to provide both diversification and long-term real asset growth. Domestic equities may include modest holdings of non-U.S. equities, purchased by domestic equity managers as long as they are traded in the U.S and denominated in U.S. dollars and both active and passive (index) investment strategies. International equities provide a broad exposure to return opportunities and investment characteristics associated with the world equity markets outside the U.S. The pension plan’s equity holdings are diversified by investment style, market capitalization, market or region, and economic sector. Fixed income securities include securities issued by the U.S. Government and other governmental agencies, asset-backed securities and debt securities issued by domestic and international entities, and derivative instruments comprised of swaps, futures, forwards and options. These securities are expected to provide diversification benefits, and are expected to reduce asset volatility and pension funding volatility, and a stable source of income. Alternative investments may include hedge funds and hedge funds of funds, commodities, both private and public real estate and private equity investments. In addition to attractive diversification benefits, the alternative investments are expected to provide both income and capital appreciation. Investments in money market and other short-term interest bearing securities are maintained to provide liquidity for benefit payments with protection of principal being the primary objective. The pension plan is permitted to make investments in our common stock. On March 7, 2014, we contributed 1.0 million shares of our common stock to the Windstream Pension Plan to meet our quarterly 2014 funding requirements. At the time of this contribution, the shares had an appraised value, as determined by a third party valuation firm, of approximately $8.3 million . Similarly, in 2013, we contributed approximately $27.8 million of our common stock to the Windstream Pension Plan to meet our remaining 2013 funding obligations and a portion of our expected 2014 funding obligation. As previously discussed in Note 5, we contributed certain of our own real property to our qualified pension plan during the third quarter of 2014. Independent appraisals of the properties contributed were obtained and the Windstream Pension Plan recorded the contribution based on the properties’ aggregate fair value of $80.9 million at the dates of contribution. We subsequently entered into leases for the contributed properties with initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.3 million . The lease agreements provide for annual rent increases ranging from 2.0 percent to 3.0 percent over the initial lease term and may be renewed for up to three additional 5 -year terms. The properties are managed on behalf of the Windstream Pension Plan by an independent fiduciary and terms of the lease agreements were negotiated with the fiduciary on an arm’s-length basis. During the fourth quarter of 2015 in conjunction with the sale of the data center business, Windstream Services repurchased at fair value one of the properties contributed to the Windstream Pension Plan for $8.2 million in cash. Following the repurchase, annual rent due under the lease agreements declined from approximately $6.3 million to $6.0 million . 8. Employee Benefit Plans and Postretirement Benefits, Continued: The fair values of our pension plan assets were determined using the following inputs as of December 31, 2015 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund (a) $ 70.1 $ — $ 70.1 $ — Guaranteed annuity contract (b) 1.1 — — 1.1 Common collective trust funds (c) 255.4 — 255.4 — Government and agency securities (d) 281.5 — 281.5 — Corporate bonds and asset backed securities (d) 30.9 — 30.9 — Common and preferred stocks - domestic (d) 40.0 39.9 — 0.1 Common and preferred stocks - international (d) 23.1 23.1 — — Derivative financial instruments (e) 19.0 — 19.0 — Hedge fund of funds (f) 62.0 — — 62.0 Mutual fund (d) 61.0 61.0 — — Real estate and private equity funds (g) 145.6 — — 145.6 Other (h) 0.8 0.8 — — Total investments $ 990.5 $ 124.8 $ 656.9 $ 208.8 Dividends and interest receivable 5.2 Pending trades and other liabilities (29.1 ) Total plan assets $ 966.6 The fair values of our pension plan assets were determined using the following inputs as of December 31, 2014 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund (a) $ 42.4 $ — $ 42.4 $ — Guaranteed annuity contract (b) 1.4 — — 1.4 Common collective trust funds (c) 330.8 — 330.8 — Government and agency securities (d) 285.6 — 285.6 — Corporate bonds and asset backed securities (d) 34.4 — 34.4 — Common and preferred stocks - domestic (d) 54.8 54.7 — 0.1 Common and preferred stocks - international (d) 25.3 25.3 — — Derivative financial instruments (e) 16.9 — 16.9 — Hedge fund of funds (f) 61.9 — — 61.9 Mutual fund (d) 66.7 66.7 — — Real estate and private equity funds (g) 138.2 — — 138.2 Other (h) 0.6 0.6 — — Total investments $ 1,059.0 $ 147.3 $ 710.1 $ 201.6 Dividends and interest receivable 3.7 Pending trades and other liabilities (20.7 ) Total plan assets $ 1,042.0 8. Employee Benefit Plans and Postretirement Benefits, Continued: (a) The money market fund is based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. (b) The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. (c) Units in common collective trust funds are valued by reference to the funds’ underlying assets and are based on the net asset value as reported by the fund manager on the last business day of the Plan year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. (d) Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued at their quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. (e) Derivative financial instruments consist primarily of swaps and are valued at fair value based on models that reflect the contractual terms of the instruments. Inputs include primarily observable market information, such as swap curves, benchmark yields, rating updates and interdealer broker quotes at the end of the Plan year. (f) Hedge fund of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined by the fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. (g) The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. (h) Other investments consists of investments in foreign currency, which are valued at their quoted market price on the last day of the Plan year. 8. Employee Benefit Plans and Postretirement Benefits, Continued: The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value using significant unobservable input: (Millions) Domestic equities Hedge fund of funds Real estate and private equity funds Guaranteed annuity contract Total Balance at December 31, 2013 $ 0.1 $ 60.2 $ 52.8 $ 1.9 $ 115.0 Gains related to plan assets sold during the year — — 0.9 — 0.9 Gains on plan assets still held at year-end — 1.7 5.7 0.1 7.5 Purchases and sales, net — — 78.8 (0.6 ) 78.2 Transfers in and/or out of level 3 — — — — — Balance at December 31, 2014 0.1 61.9 138.2 1.4 201.6 Gains related to plan assets sold during the year — — 1.0 — 1.0 Gains on plan assets still held at year-end — 0.1 10.7 0.1 10.9 Purchases and sales, net — — (4.3 ) (0.4 ) (4.7 ) Transfers in and/or out of level 3 — — — — — Balance at December 31, 2015 $ 0.1 $ 62.0 $ 145.6 $ 1.1 $ 208.8 Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. There were no transfers in or out of levels 1, 2, or 3 for the years ended December 31, 2015 and 2014. There have been no significant changes in the methodology used to value investments from prior year. The valuation methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the valuation methods are consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Estimated Future Employer Contributions and Benefit Payments – Estimated future employer contributions, benefit payments, including executive retirement agreements, are as follows as of December 31, 2015 : (Millions) Pension Benefits Postretirement Benefits Expected employer contributions in 2016 $ 1.9 $ 2.1 Expected benefit payments: 2016 $ 79.8 $ 2.1 2017 82.3 2.0 2018 81.2 1.8 2019 82.1 1.7 2020 83.8 1.5 2021-2025 417.8 6.8 The 2016 expected employer contribution for pension benefits consists of $1.0 million to the qualified pension plan to meet our 2016 funding requirements and $0.9 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. We intend to fund these contributions using cash. 8. Employee Benefit Plans and Postretirement Benefits, Continued: Employee Savings 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 expense of $19.3 million , $18.3 million and $18.1 million in 2015 , 2014 and 2013 , respectively, related to our matching contribution under the employee savings plan, which was included in cost of services and selling, general and administrative in our consolidated statements of operations. Expense related to our 2015 matching contribution expected to be made in Windstream stock is included in share-based compensation expense in the accompanying consolidated statements of cash flow. During both 2015 and 2014, we contributed 2.7 million shares of our common stock to the plan for the 2014 and 2013 annual matching contribution. At the time of these contributions, the shares had a value of approximately $21.6 million as determined by the plan trustee. During 2013, we contributed $20.4 million of our common stock to the plan for the 2012 annual matching contribution. |
Share-Based Compensation Plans_
Share-Based Compensation Plans: | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans: | Share-Based Compensation Plans: All share-based compensation award information presented has been retrospectively adjusted to reflect the effects of the one -for- six reverse stock split which became effective on April 26, 2015 (see Note 1). Effective May 6, 2015, the Amended and Restated 2006 Equity Incentive Plan (the “Incentive Plan”) was further amended to equitably adjust the number of shares of common stock under the plan in order to (i) reduce the shares available to address the effect of the one-for-six reverse stock split; and (ii) increase the shares available to address the effect of the REIT spin-off on the market value of Windstream Holdings common stock and to preserve the equity value of the Incentive Plan. As a result of the amendment, 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 December 31, 2015 , the Incentive Plan had remaining capacity of 9.1 million awards. As of December 31, 2015 , we had additional remaining capacity of 0.4 million awards under a similar equity incentive plan acquired in the PAETEC acquisition. Restricted Stock and Restricted Stock Units - During 2015 , 2014 and 2013 , 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 generally 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 vesting periods and grant date fair value for restricted stock and restricted stock units issued was as follows for the years ended December 31: (Number of shares in thousands, dollars in millions) 2015 2014 2013 Vest ratably over a three-year service period 2,739.2 488.2 375.7 Vest ratably over a two-year service period — 3.1 11.4 Vest variably over a three-year service period 62.6 41.2 31.0 Vest contingently over a three-year performance period 283.4 196.1 131.1 Vest one year from date of grant, service based - granted to non-employee directors 73.7 20.2 13.6 Vest two years from date of grant, service based 6.9 — — Vest three years from date of grant, service based 381.1 31.6 — Total granted 3,546.9 780.4 562.8 Grant date fair value $ 37.1 $ 39.3 $ 32.6 9. Share-Based Compensation Plans, Continued: For performance based restricted stock units granted in 2015 the operating targets for the first vesting period were approved by the Board of Directors in May 2015 . For the performance based restricted stock granted in 2014 , the operating targets for the first two vesting periods were approved by the Board of Directors in March 2014 and February 2015 . For performance based restricted stock granted in 2013 , the operating targets for the first, second and third vesting periods were approved by the Board of Directors in February 2013 , March 2014 and February 2015 , respectively. For 2015 and 2013 measurement periods, each of the operating targets were met by the end of their respective measurement periods. The operating targets for the 2014 measurement period were not met and these awards were forfeited. Restricted stock and restricted stock unit activity for the year ended December 31, 2015 was as follows: (Thousands) Underlying Number of Shares Weighted Average Fair Value Per Share Non-vested at December 31, 2014 978.0 $ 53.68 Granted 3,546.9 $ 10.46 Vested (529.7 ) $ 45.07 Forfeited (442.1 ) $ 25.76 Non-vested at December 31, 2015 3,553.1 $ 15.29 At December 31, 2015 , unrecognized compensation expense totaled $32.0 million and is expected to be recognized over the weighted average vesting period of 1.9 years . Unrecognized compensation expense is included in additional paid-in capital in the accompanying consolidated balance sheets and statements of shareholders’ and member equity. The total fair value of shares vested during 2015 , 2014 and 2013 was $23.9 million , $28.5 million and $24.2 million , respectively. Share-based compensation expense recognized for restricted stock and restricted stock units was $25.0 million , $22.0 million and $26.7 million for 2015 , 2014 and 2013 , respectively. Stock Options - At December 31, 2015, we had approximately 0.5 million of vested stock option awards outstanding, all of which had been issued in conjunction with past acquisitions as replacement awards to former employees of the acquired companies. Substantially all of these options have exercise prices that are significantly higher than the current market price of our common stock and therefore are not likely to be exercised during the next twelve months. No other stock options have been granted by us during the three year period ended December 31, 2015. At December 31, 2015 and 2014, there was no unrecognized share-based compensation expense related to stock options granted. In both 2014 and 2013, compensation expense related to stock options granted was $0.1 million . In addition to including amounts related to restricted stock, restricted units and stock options, share-based compensation expense presented in the accompanying consolidated statements of cash flow also includes amounts related to certain 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 stock. Except for 2015 and the second and third quarters of 2014, payments made under the applicable management incentive plans had been in the form of cash. A summary of share-based compensation expense was as follows for the years ended December 31: (Millions) 2015 2014 2013 Restricted stock, restricted units and stock options $ 25.0 $ 22.1 $ 26.8 Employee savings plan (See Note 8) 19.3 18.3 18.1 Management incentive compensation plans 11.0 1.4 — Share-based compensation expense $ 55.3 $ 41.8 $ 44.9 |
Merger, Integration and Restruc
Merger, Integration and Restructuring Charges: | 12 Months Ended |
Dec. 31, 2015 | |
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 REIT spin-off and the sale of a portion of our data center business. 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 PAETEC acquisition. 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. The PAETEC acquisition and costs related to the spin-off and sale of our data center business 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 2015, we incurred restructuring charges of $15.6 million related to the completion of several small workforce reductions. Additionally, we incurred charges of $3.1 million related to the special shareholder meeting held on February 20, 2015 to approve the one -for- six reverse stock split and the conversion of Windstream Corporation to Windstream Services. During 2014, we completed two workforce reductions to increase operational efficiency by eliminating a total of approximately 750 positions, including 295 resulting from voluntary separation initiatives. We also completed several smaller workforce reductions throughout the year. In connection with these workforce reductions, we incurred pre-tax restructuring charges of $24.1 million during 2014, primarily consisting of severance and other employee benefit costs. As a result of certain changes in our executive management team, we also incurred severance-related costs of $6.3 million in 2014. The following is a summary of the merger, integration and restructuring charges recorded for the years ended December 31: (Millions) 2015 2014 2013 Merger and integration costs Information technology conversion costs $ 7.5 $ 20.8 $ 17.3 Costs related to REIT spin-off (See Note 3) 65.1 15.5 — Costs related to sale of data center business 10.3 — — Network optimization and conversion costs 5.9 — — Consulting and other costs 6.2 4.1 12.9 Total merger and integration costs 95.0 40.4 30.2 Restructuring charges 20.7 35.9 8.6 Total merger, integration and restructuring charges $ 115.7 $ 76.3 $ 38.8 After giving consideration to tax benefits on deductible items, the effect of merger, integration and restructuring charges decreased net income $71.2 million , $46.6 million and $24.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The following is a summary of the activity related to the liabilities associated with our merger, integration and restructuring charges at December 31: (Millions) 2015 2014 Balance, beginning of period $ 11.2 $ 14.0 Merger, integration and restructuring charges 115.7 76.3 Cash outlays during the period (121.8 ) (79.1 ) Balance, end of period $ 5.1 $ 11.2 As of December 31, 2015 , unpaid merger, integration and restructuring liabilities consisted of $2.6 million associated with the restructuring initiatives and $2.5 million related to merger and integration activities. Payments of these liabilities will be funded through operating cash flows. During 2015 , cash outlays were $99.4 million related to merger and integration activities and $22.4 million for restructuring initiatives. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income: | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive (Loss) Income: Accumulated other comprehensive (loss) income balances, net of tax, were as follows for the years ended December 31: (Millions) 2015 2014 2013 Pension and postretirement plans $ 2.8 $ 14.5 $ 26.4 Unrealized holding loss on available-for-sale securities (286.5 ) — — Unrealized holding (losses) gains on interest rate swaps Designated portion (0.6 ) 3.1 17.4 De-designated portion (0.1 ) (5.5 ) (15.3 ) Accumulated other comprehensive (loss) income $ (284.4 ) $ 12.1 $ 28.5 Changes in accumulated other comprehensive (loss) income balances, net of tax, were as follows: (Millions) Unrealized Holding Loss on Available-for-Sale Securities Net Losses on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2014 $ — $ (2.4 ) $ 14.5 $ 12.1 Other comprehensive (loss) income before reclassifications (286.5 ) (5.4 ) 1.2 (290.7 ) Amounts reclassified from other accumulated comprehensive income (loss) (a) — 7.1 (12.9 ) (5.8 ) Balance at December 31, 2015 $ (286.5 ) $ (0.7 ) $ 2.8 $ (284.4 ) (a) See separate table below for details about these reclassifications. Reclassifications out of accumulated other comprehensive (loss) income were as follows for the years ended December 31: Details about Accumulated Other Comprehensive (Loss) Income Components (Millions) Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Consolidated Statements of Operations 2015 2014 2013 Losses on interest rate swaps: Amortization of unrealized losses on de-designated interest rate swaps $ 11.6 $ 15.8 $ 35.9 Interest expense 11.6 15.8 35.9 Income (loss) from continuing operations before income taxes (4.5 ) (6.0 ) (13.7 ) Income tax expense (benefit) 7.1 9.8 22.2 Net income (loss) Pension and postretirement plans: Plan curtailment (18.0 ) (10.0 ) (31.8 ) (a) Amortization of net actuarial loss 1.0 0.1 1.7 (a) Amortization of prior service credits (3.9 ) (5.9 ) (8.7 ) (a) (20.9 ) (15.8 ) (38.8 ) Income (loss) from continuing operations before income taxes 8.0 6.1 14.7 Income tax expense (benefit) (12.9 ) (9.7 ) (24.1 ) Net income (loss) Total reclassifications for the period, net of tax $ (5.8 ) $ 0.1 $ (1.9 ) Net income (loss) (a) These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit (income) expense (See Note 8). |
Other Income (Expense), Net (No
Other Income (Expense), Net (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 12. Other Income (Expense), Net: Set forth below is a summary of other income (expense), net for the years ended December 31: (Millions) 2015 2014 2013 Interest income $ 1.3 $ 1.0 $ 1.0 Dividend income on CS&L common stock 48.4 — — Gain (loss) on disposal (a) 10.7 — (6.4 ) Other income (expense), net 0.8 (0.6 ) (8.7 ) Ineffectiveness of interest rate swaps (3.7 ) (0.3 ) 1.6 Other income (expense), net $ 57.5 $ 0.1 $ (12.5 ) (a) The gain recognized during 2015 represents the gain from the sale of our remaining non-strategic directory publishing business completed on April 1, 2015. The loss realized in 2013 was primarily due to the disposal of various non-operating real estate assets. |
Income Taxes_
Income Taxes: | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes: | Income Taxes: Income tax expense (benefit) was as follows for the years ended December 31: (Millions) 2015 2014 2013 Current: Federal $ 9.1 $ 0.8 $ (27.0 ) State 23.2 (12.5 ) (2.5 ) 32.3 (11.7 ) (29.5 ) Deferred: Federal 15.0 (18.3 ) 104.0 State (31.3 ) 4.9 30.8 (16.3 ) (13.4 ) 134.8 Income tax expense (benefit) $ 16.0 $ (25.1 ) $ 105.3 Deferred income tax expense (benefit) for all three years primarily resulted from temporary differences between depreciation and amortization expense for income tax purposes and depreciation and amortization expense recorded in the accompanying consolidated financial statements. Goodwill is not amortized for financial statement purposes in accordance with authoritative guidance on goodwill and other intangible assets. 13. Income Taxes, Continued: Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state income taxes, were as follows for the years ended December 31: 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) State income taxes, net of federal benefit 4.0 4.7 3.3 Adjust deferred taxes for state net operating loss carryforward 16.0 — (0.1 ) Transaction costs 18.7 (8.0 ) — Tax refunds — 7.3 — Valuation allowance (48.4 ) (15.4 ) (0.3 ) Income tax reserves 12.2 (0.4 ) (5.4 ) Research and development credit (8.4 ) 12.1 (2.2 ) Adjustment of deferred taxes for legal entity restructuring 6.8 — — Disallowed loss — (2.9 ) — Tax credits (1.0 ) 2.2 — Other items, net 2.0 4.3 0.6 Effective income tax rate 36.9 % 38.9 % 30.9 % In connection with the spin-off, we adjusted our deferred tax assets and liabilities, including our valuation allowance related to our federal and state net operating loss carryforwards, to reflect the transfer of the telecommunication network assets and consumer CLEC business to CS&L and the recognition of the long-term lease obligation related to the master lease with CS&L. For income tax purposes, the spin-off of the telecommunication network assets is treated as a sale and the leaseback of the assets as an operating lease. The significant components of the net deferred income tax liability (asset) were as follows at December 31: (Millions) 2015 2014 Property, plant and equipment $ 1,472.8 $ 1,146.7 Goodwill and other intangible assets 1,295.8 1,312.8 Operating loss and credit carryforward (462.5 ) (604.0 ) Postretirement and other employee benefits (120.1 ) (121.8 ) Unrealized holding loss and interest rate swaps (5.2 ) (5.3 ) Deferred compensation (4.9 ) (5.7 ) Bad debt (25.1 ) (32.1 ) Long-term lease obligations (1,993.7 ) (30.8 ) Deferred debt costs (2.0 ) (12.9 ) Restricted stock (9.7 ) (8.5 ) Other, net (5.9 ) 39.9 139.5 1,678.3 Valuation allowance 147.9 94.9 Deferred income taxes, net $ 287.4 $ 1,773.2 Deferred tax assets $ (2,670.6 ) $ (898.0 ) Deferred tax liabilities 2,958.0 2,671.2 Deferred income taxes, net $ 287.4 $ 1,773.2 At December 31, 2015 and 2014 , we had federal net operating loss carryforwards of approximately $907.0 million and $1,304.2 million , respectively, which expire in varying amounts from 2022 through 2031. The loss carryforwards at December 31, 2015 were primarily losses acquired in conjunction with our prior acquisitions including PAETEC. The 2015 decrease is primarily associated with the amount utilized for the year. 13. Income Taxes, Continued: At December 31, 2015 and 2014 , we had state net operating loss carryforwards of approximately $1,802.4 million and $1,990.6 million , respectively, which expire annually in varying amounts from 2016 through 2035. The loss carryforwards at December 31, 2015 were primarily losses acquired in conjunction with our prior acquisitions including PAETEC. The 2015 decrease is primarily associated with the amount lost due to legal entity restructuring during the year.Federal and state tax rules limit the deductibility of loss carryforwards in years following an ownership change. As a result of these limitations or the expected lack of sufficient future taxable income, we believe that it is more likely than not that the benefit from certain federal and state loss carryforwards will not be realized prior to their expiration. In September 2015, Windstream’s board of directors adopted a shareholder rights plan designed to protect our net operating loss carryforwards from the effect of limitations imposed by federal and state tax rules following an ownership change. This plan was designed to deter an ownership change (as defined in IRC Section 382) from occurring, and therefore protect our ability to utilize our federal and state net operating loss carry forwards in the future. The plan is not meant to be an anti-takeover measure and our board of directors has established a procedure to consider requests to exempt the acquisition of Windstream common stock from the rights plan, if such acquisition would not limit or impair the availability of our net operating loss carryforwards. We establish valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. Therefore, as of December 31, 2015 and 2014 , we recorded valuation allowances of $140.9 million and $94.9 million , respectively, related to federal and state loss carryforwards which are expected to expire before they are utilized. The amount of federal tax credit carryforward at December 31, 2015 and 2014 , was approximately $46.1 million and $34.6 million , respectively, which expire in varying amounts from 2031 through 2035. The amount of state tax credit carryforward at December 31, 2015 and 2014 , was approximately $24.4 million and $24.1 million , respectively, which expire in varying amounts from 2016 through 2027. Due to legal entity restructuring during the year and the expected lack of sufficient future taxable income, we believe that it is more likely than not that the benefit from some of the state tax credit carryforwards will not be realized prior to their expiration. Therefore, as of December 31, 2015 , we recorded a valuation allowance of approximately $7.0 million , net of federal benefit, to reduce deferred tax assets to amounts expected to be realized. We account for uncertainty in taxes in accordance with authoritative guidance. A reconciliation of the unrecognized tax benefits is as follows: (Millions) 2015 2014 2013 Beginning balance $ 5.6 $ 4.6 $ 18.3 Additions based on tax positions related to current year 5.0 2.3 2.7 Additions based on tax positions of prior years — — 0.7 Reductions for tax positions of prior years (0.5 ) (0.1 ) (0.2 ) Reduction as a result of a lapse of the applicable statute of limitations — (0.2 ) (16.9 ) Settlements — (1.0 ) — Ending balance $ 10.1 $ 5.6 $ 4.6 We do not expect or anticipate a significant increase or decrease over the next twelve months in the unrecognized tax benefits reported above. The total amount of unrecognized tax benefits that, if recognized, would affec t the effective tax rate are $9.9 million , $5.0 million and $3.4 million (net of indirect benefits) for the years ended December 31, 2015 , 2014 and 2013, respectively. Included in the balance at December 31, 2014 and 2013, are $0.6 million of gross tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. No such amounts existed at December 31, 2015. Because of the impact of the deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. These unrecognized tax benefits are included in other long-term liabilities in the accompanying consolidated balance sheets for the years ended December 31, 2015 and 2014 . We file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2012. However, due to acquired net operating losses, tax authorities have the ability to adjust those net operating losses related to closed years. We have identified Arkansas, California, Florida, Georgia, Illinois, Iowa, Kentucky, Nebraska, New York, North Carolina, Pennsylvania, Texas and Virginia as “major” state taxing jurisdictions. 13. Income Taxes, Continued: We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2015 , 2014 and 2013, we recognized approximately $0.1 million each year in interest and penalties. Furthermore, we had approximately $0.1 million of interest and penalties accrued at each of December 31, 2015 , 2014 and 2013. |
Commitments and Contingencies_
Commitments and Contingencies: | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies: | Commitments and Contingencies: Lease Commitments Minimum rental commitments for all non-cancellable operating leases, consisting principally of leases for network facilities, real estate, office space and office equipment were as follows as of December 31, 2015 : Year (Millions) 2016 $ 113.4 2017 85.2 2018 73.3 2019 56.2 2020 38.3 Thereafter 130.7 Total $ 497.1 Rental expense totaled $128.0 million , $134.5 million and $120.2 million in 2015 , 2014 and 2013 , respectively. Litigation On February 9, 2015, a putative stockholder filed a Shareholder Class Action Complaint in the Delaware Court of Chancery, 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 Board 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 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. We believe that we have valid defenses to both the lawsuit and the alleged infringement claim, and we plan to vigorously defend the pursuit of 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. 14. Commitments and Contingencies, Continued: We are party to various legal proceedings, including certain lawsuits claiming infringement of patents relating to various aspects of our business. In certain of the patent matters, other industry participants are also parties, and we may have claims of indemnification against vendors/suppliers. 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. |
Segment Information_ (Notes)
Segment Information: (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information: Effective November 1, 2015, we implemented a new business unit organizational structure focused on our core customer relationships to strengthen our ability to achieve our operational, strategic and financial goals. Prior to this reorganization, we operated as one reportable segment. Following this reorganization, we now operate and report the following four customer-based segments: • Consumer and Small Business - ILEC - We manage as one business our residential and small business customers who reside in 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, with plans to launch in Sugar Land, Texas in the second quarter of 2016. We expect to roll out this new service to additional markets during the next few years. 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. • Carrier - Our carrier operations consist of providing products and services to other communications services providers, including special access services, which provide network access and transport services to end users, and fiber-to-tower connections to support backhaul services to wireless carriers. We also offer on a wholesale basis voice and data transport services to other communications providers, including the resale of our services and the sale of unbundled network elements, which 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. The accounting policies used in measuring segment operating results are the same as those described in Note 2. 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. 15. Segment Information, Continued: 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. Revenues attributable to the sold data center and directory publishing businesses, as well as the consumer CLEC business transferred to CS&L are not assigned to the segments and are also included in other service revenues for all periods prior to the dates of disposal. 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 centrally-managed administrative functions, such as accounting and finance, information technology, legal and human resources, are not assigned to our segments. Interest expense and loss 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. Other income (expense), net and income tax (benefit) expense 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 for the years ended December 31: (Millions) 2015 2014 2013 Consumer and Small Business - ILEC: Revenues and sales $ 1,605.5 $ 1,644.4 $ 1,667.4 Costs and expenses 671.0 696.9 725.0 Segment income 934.5 947.5 942.4 Carrier: Revenues 687.9 729.7 779.1 Costs and expenses 185.6 172.5 176.5 Segment income 502.3 557.2 602.6 Enterprise: Revenues and sales 2,067.2 2,003.0 1,937.0 Costs and expenses 1,826.6 1,757.4 1,677.3 Segment income 240.6 245.6 259.7 Small Business - CLEC: Revenues 559.0 658.3 765.5 Costs and expenses 378.2 408.7 465.6 Segment income 180.8 249.6 299.9 Total segment revenues and sales 4,919.6 5,035.4 5,149.0 Total segment costs and expenses 3,061.4 3,035.5 3,044.4 Total segment income $ 1,858.2 $ 1,999.9 $ 2,104.6 15. Segment Information, Continued: The following table reconciles total segment revenue and sales to total consolidated revenue and sales for the years ended December 31: (Millions) 2015 2014 2013 Total segment revenues and sales $ 4,919.6 $ 5,035.4 $ 5,149.0 Regulatory and other operating revenues and sales 714.5 639.6 695.3 Revenue and sales related to disposed businesses 131.2 154.5 143.8 Total consolidated revenues and sales $ 5,765.3 $ 5,829.5 $ 5,988.1 The following table reconciles segment income to consolidated net income (loss) for the years ended December 31: (Millions) 2015 2014 2013 Total segment income $ 1,858.2 $ 1,999.9 $ 2,104.6 Revenues and sales related to disposed businesses 131.2 154.5 143.8 Regulatory and other operating revenues and sales 714.5 639.6 695.3 Depreciation and amortization 1,366.5 1,386.4 1,340.9 Other unassigned operating expenses 739.7 798.9 502.2 Operating expenses related to disposed businesses 88.3 101.6 91.6 Other income (expense), net 57.5 0.1 (12.5 ) Gain on sale of data center business 326.1 — — Loss on early extinguishment of debt (36.4 ) — (28.5 ) Interest expense (813.2 ) (571.8 ) (627.7 ) Income tax expense (benefit) 16.0 (25.1 ) 105.3 Discontinued operations — — 6.0 Net income (loss) $ 27.4 $ (39.5 ) $ 241.0 |
Supplemental Guarantor Informat
Supplemental Guarantor Information: | 12 Months Ended |
Dec. 31, 2015 | |
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 7.875 percent senior notes due November 1, 2017, 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. Following the redemption of the PAETEC 2018 notes (see Note 5), the guaranteed notes were amended to include certain subsidiaries of PAETEC as guarantors. Previously, all subsidiaries of PAETEC were Non-Guarantors. As a result, prior period information has been revised to reflect the change in the guarantor reporting structure. The following information presents condensed consolidating and combined statements of comprehensive (loss) income for the years ended December 31, 2015 , 2014 and 2013 , condensed consolidating balance sheets as of December 31, 2015 and 2014 , and condensed consolidating and combined statements of cash flows for the years ended December 31, 2015 , 2014 and 2013 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 (Loss) Income For the Year Ended December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,153.6 $ 4,470.6 $ (25.6 ) $ 5,598.6 Product sales — 145.3 21.4 — 166.7 Total revenues and sales — 1,298.9 4,492.0 (25.6 ) 5,765.3 Costs and expenses: Cost of services — 490.7 2,293.5 (22.2 ) 2,762.0 Cost of products sold — 125.0 20.2 — 145.2 Selling, general and administrative — 184.0 683.9 (3.4 ) 864.5 Depreciation and amortization 18.3 333.4 1,014.8 — 1,366.5 Merger and integration costs — — 95.0 — 95.0 Restructuring charges — 9.4 11.3 — 20.7 Total costs and expenses 18.3 1,142.5 4,118.7 (25.6 ) 5,253.9 Operating (loss) income (18.3 ) 156.4 373.3 — 511.4 Earnings (losses) from consolidated subsidiaries 239.6 (149.9 ) (7.8 ) (81.9 ) — Other income, net 45.7 0.8 11.0 — 57.5 Gain on sale of data center business — — 326.1 — 326.1 Loss on early extinguishment of debt (30.7 ) (5.3 ) (0.4 ) — (36.4 ) Intercompany interest income (expense) 115.9 (46.5 ) (69.4 ) — — Interest expense (440.1 ) (122.0 ) (251.1 ) — (813.2 ) (Loss) income before income taxes (87.9 ) (166.5 ) 381.7 (81.9 ) 45.4 Income tax (benefit) expense (116.5 ) (16.9 ) 150.2 — 16.8 Net income (loss) $ 28.6 $ (149.6 ) $ 231.5 $ (81.9 ) $ 28.6 Comprehensive (loss) income $ (267.9 ) $ (149.6 ) $ 231.5 $ (81.9 ) $ (267.9 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive (Loss) Income For the Year Ended December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,176.0 $ 4,496.6 $ (25.0 ) $ 5,647.6 Product sales — 154.7 27.2 — 181.9 Total revenues and sales — 1,330.7 4,523.8 (25.0 ) 5,829.5 Costs and expenses: Cost of services — 517.0 2,277.0 (20.7 ) 2,773.3 Cost of products sold — 131.2 25.4 — 156.6 Selling, general and administrative — 165.7 766.1 (4.3 ) 927.5 Depreciation and amortization 21.9 337.5 1,027.0 — 1,386.4 Merger and integration costs — — 40.4 — 40.4 Restructuring charges — 8.1 27.8 — 35.9 Total costs and expenses 21.9 1,159.5 4,163.7 (25.0 ) 5,320.1 Operating (loss) income (21.9 ) 171.2 360.1 — 509.4 Earnings (losses) from consolidated subsidiaries 217.3 (210.3 ) 4.0 (11.0 ) — Other (expenses) income, net (0.2 ) 162.9 (162.6 ) — 0.1 Intercompany interest income (expense) 127.2 (53.7 ) (73.5 ) — — Interest expense (523.9 ) (44.8 ) (3.1 ) — (571.8 ) (Loss) income before income taxes (201.5 ) 25.3 124.9 (11.0 ) (62.3 ) Income tax (benefit) expense (163.4 ) 99.8 39.4 — (24.2 ) Net (loss) income $ (38.1 ) $ (74.5 ) $ 85.5 $ (11.0 ) $ (38.1 ) Comprehensive (loss) income $ (54.5 ) $ (74.5 ) $ 85.5 $ (11.0 ) $ (54.5 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2013 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,222.9 $ 4,583.0 $ (30.4 ) $ 5,775.5 Product sales — 182.6 30.0 — 212.6 Total revenues and sales — 1,405.5 4,613.0 (30.4 ) 5,988.1 Costs and expenses: Cost of services — 476.2 2,090.6 (25.6 ) 2,541.2 Cost of products sold — 143.5 40.4 — 183.9 Selling, general and administrative — 141.9 736.7 (4.8 ) 873.8 Depreciation and amortization 25.0 325.4 990.5 — 1,340.9 Merger and integration costs — — 30.2 — 30.2 Restructuring charges — 2.1 6.5 — 8.6 Total costs and expenses 25.0 1,089.1 3,894.9 (30.4 ) 4,978.6 Operating (loss) income (25.0 ) 316.4 718.1 — 1,009.5 Earnings (losses) from consolidated subsidiaries 526.1 (62.0 ) 121.6 (585.7 ) — Other income (expense), net 2.1 168.3 (182.9 ) — (12.5 ) Loss on early extinguishment of debt (17.2 ) (11.3 ) — — (28.5 ) Intercompany interest income (expense) 134.5 (61.1 ) (73.4 ) — — Interest (expense) income (584.6 ) (46.7 ) 3.6 — (627.7 ) Income from continuing operations before income taxes 35.9 303.6 587.0 (585.7 ) 340.8 Income tax (benefit) expense (205.4 ) 150.2 160.7 — 105.5 Income from continuing operations 241.3 153.4 426.3 (585.7 ) 235.3 Discontinued operations — — 6.0 — 6.0 Net income $ 241.3 $ 153.4 $ 432.3 $ (585.7 ) $ 241.3 Comprehensive income $ 263.4 $ 153.4 $ 432.3 $ (585.7 ) $ 263.4 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet 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 (less allowance for doubtful accounts of $33.1) — 218.6 425.3 — 643.9 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 619.1 2,435.4 (3,054.5 ) — Inventories — 69.1 10.4 — 79.5 Prepaid expenses and other 321.8 32.4 64.6 (298.2 ) 120.6 Total current assets 321.8 945.1 2,969.2 (3,360.8 ) 875.3 Investments in consolidated subsidiaries 6,332.3 320.4 242.7 (6,895.4 ) — Notes receivable - affiliate — 314.1 — (314.1 ) — Goodwill 1,636.7 1,343.0 1,233.9 — 4,213.6 Other intangibles, net 554.3 282.8 667.6 — 1,504.7 Net property, plant and equipment 8.4 1,241.3 4,030.1 — 5,279.8 Investment in CS&L common stock 549.2 — — — 549.2 Deferred income taxes — 301.2 215.3 (516.5 ) — Other assets 14.2 56.3 25.0 — 95.5 Total Assets $ 9,416.9 $ 4,804.2 $ 9,383.8 $ (11,086.8 ) $ 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 — 92.9 337.2 — 430.1 Affiliates payable, net 3,069.6 — — (3,054.5 ) 15.1 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 26.3 167.6 — 193.9 Accrued taxes 0.3 11.9 370.1 (298.2 ) 84.1 Accrued interest 75.3 1.9 1.2 — 78.4 Other current liabilities 42.6 47.5 216.8 — 306.9 Total current liabilities 3,193.7 224.9 1,206.0 (3,357.5 ) 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 25.1 419.3 — 492.2 Total liabilities 9,110.5 1,804.7 5,484.6 (4,188.1 ) 12,211.7 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 600.3 3,128.2 848.0 (3,976.2 ) 600.3 Accumulated other comprehensive (loss) income (284.4 ) — 2.8 (2.8 ) (284.4 ) (Accumulated deficit) retained earnings (9.5 ) (168.1 ) 2,966.5 (2,798.4 ) (9.5 ) Total equity 306.4 2,999.5 3,899.2 (6,898.7 ) 306.4 Total Liabilities and Equity $ 9,416.9 $ 4,804.2 $ 9,383.8 $ (11,086.8 ) $ 12,518.1 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet As of December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ — $ 3.8 $ 50.0 $ (26.0 ) $ 27.8 Restricted cash 6.7 — — — 6.7 Accounts receivable (less allowance for doubtful accounts of $43.4) — 266.5 369.0 — 635.5 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 969.0 2,155.6 (3,124.6 ) — Inventories — 56.2 7.5 — 63.7 Prepaid expenses and other 35.5 32.4 96.7 — 164.6 Total current assets 42.2 1,332.7 2,678.8 (3,155.4 ) 898.3 Investments in consolidated subsidiaries 10,001.3 747.9 232.4 (10,981.6 ) — Notes receivable - affiliate — 317.7 — (317.7 ) — Goodwill 1,649.5 1,469.4 1,233.9 — 4,352.8 Other intangibles, net 590.7 355.2 818.1 — 1,764.0 Net property, plant and equipment 9.8 1,329.5 4,073.0 — 5,412.3 Other assets 16.7 37.2 39.0 — 92.9 Total Assets $ 12,310.2 $ 5,589.6 $ 9,075.2 $ (14,454.7 ) $ 12,520.3 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 717.4 $ — $ 0.1 $ — $ 717.5 Accounts payable 2.1 113.0 288.2 — 403.3 Affiliates payable, net 3,277.0 — — (3,124.6 ) 152.4 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 36.5 178.2 — 214.7 Accrued taxes 0.2 25.0 70.0 — 95.2 Accrued interest 94.3 5.8 2.4 — 102.5 Other current liabilities 60.8 26.5 270.1 — 357.4 Total current liabilities 4,151.8 206.8 813.8 (3,129.4 ) 2,043.0 Long-term debt 7,275.9 568.9 1.7 — 7,846.5 Long-term lease obligations — 24.0 57.0 — 81.0 Notes payable - affiliate — — 317.7 (317.7 ) — Deferred income taxes 591.2 193.1 988.9 — 1,773.2 Other liabilities 66.5 28.2 457.1 — 551.8 Total liabilities 12,085.4 1,021.0 2,636.2 (3,447.1 ) 12,295.5 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 250.8 4,370.0 3,426.9 (7,796.9 ) 250.8 Accumulated other comprehensive income 12.1 — 14.5 (14.5 ) 12.1 (Accumulated deficit) retained earnings (38.1 ) 159.2 2,915.7 (3,074.9 ) (38.1 ) Total equity 224.8 4,568.6 6,439.0 (11,007.6 ) 224.8 Total Liabilities and Equity $ 12,310.2 $ 5,589.6 $ 9,075.2 $ (14,454.7 ) $ 12,520.3 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (337.4 ) $ 256.1 $ 1,109.1 $ — $ 1,027.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (1.0 ) (180.4 ) (873.9 ) — (1,055.3 ) Changes in restricted cash 6.7 — — — 6.7 Grant funds received for broadband stimulus projects 23.5 — — — 23.5 Network expansion funded by Connect America Fund - Phase 1 — (18.6 ) (55.3 ) — (73.9 ) Disposition of data center business — — 574.2 — 574.2 Other, net (9.6 ) 0.1 12.3 — 2.8 Net cash provided from (used in) investing activities 19.6 (198.9 ) (342.7 ) — (522.0 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (416.6 ) — — — (416.6 ) Payment received from CS&L in spin-off 1,035.0 — — — 1,035.0 Funding received from CS&L for tenant capital improvements — 19.6 23.5 — 43.1 Repayments of debt and swaps (2,898.9 ) (450.0 ) (2.0 ) — (3,350.9 ) Proceeds of debt issuance 2,335.0 — — — 2,335.0 Debt issuance costs (4.3 ) — — — (4.3 ) Intercompany transactions, net 277.1 406.7 (706.5 ) 22.7 — Payments under long-term lease obligations — (35.6 ) (67.0 ) — (102.6 ) Payments under capital lease obligations — (4.2 ) (27.3 ) — (31.5 ) Other, net (9.5 ) 3.6 (3.6 ) — (9.5 ) Net cash provided from (used in) financing activities 317.8 (59.9 ) (782.9 ) 22.7 (502.3 ) Decrease in cash and cash equivalents — (2.7 ) (16.5 ) 22.7 3.5 Cash and Cash Equivalents: Beginning of period — 3.8 50.0 (26.0 ) 27.8 End of period $ — $ 1.1 $ 33.5 $ (3.3 ) $ 31.3 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (129.2 ) $ 448.1 $ 1,149.8 $ — $ 1,468.7 Cash Flows from Investing Activities: Additions to property, plant and equipment (1.8 ) (116.6 ) (668.1 ) — (786.5 ) Broadband network expansion funded by stimulus grants — (0.3 ) (13.0 ) — (13.3 ) Changes in restricted cash 3.0 — — — 3.0 Grant funds received for broadband stimulus projects 33.2 — — — 33.2 Grant funds received from Connect America Fund - Phase 1 — 9.4 16.6 — 26.0 Network expansion funded by Connect America Fund - Phase 1 — (1.3 ) (11.5 ) — (12.8 ) Acquisition of a business (22.6 ) — — — (22.6 ) Other, net — — 3.9 — 3.9 Net cash provided from (used in) investing activities 11.8 (108.8 ) (672.1 ) — (769.1 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (603.6 ) — — — (603.6 ) Repayments of debt and swaps (1,394.4 ) — (1.0 ) — (1,395.4 ) Proceeds of debt issuance 1,315.0 — — — 1,315.0 Intercompany transactions, net 795.9 (341.6 ) (428.3 ) (26.0 ) — Payments under capital lease obligations — (0.6 ) (26.2 ) — (26.8 ) Other, net (9.2 ) 3.6 (3.6 ) — (9.2 ) Net cash provided from (used in) financing activities 103.7 (338.6 ) (459.1 ) (26.0 ) (720.0 ) (Decrease) increase in cash and cash equivalents (13.7 ) 0.7 18.6 (26.0 ) (20.4 ) Cash and Cash Equivalents: Beginning of period 13.7 3.1 31.4 — 48.2 End of period $ — $ 3.8 $ 50.0 $ (26.0 ) $ 27.8 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (186.2 ) $ 509.9 $ 1,196.1 $ — $ 1,519.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (2.0 ) (157.5 ) (681.5 ) — (841.0 ) Broadband network expansion funded by stimulus grants — (4.9 ) (31.2 ) — (36.1 ) Changes in restricted cash 15.3 — 1.5 — 16.8 Grant funds received for broadband stimulus projects 68.0 — — — 68.0 Grant funds received from Connect America Fund - Phase 1 — 21.9 38.8 — 60.7 Disposition of software business — — 30.0 — 30.0 Other, net — — (6.0 ) — (6.0 ) Net cash provided from (used in) investing activities 81.3 (140.5 ) (648.4 ) — (707.6 ) Cash Flows from Financing Activities: Dividends paid to shareholders (444.6 ) — — — (444.6 ) Distributions to Windstream Holdings, Inc. (149.4 ) — — — (149.4 ) Repayments of debt and swaps (4,500.9 ) (650.0 ) (10.1 ) — (5,161.0 ) Proceeds of debt issuance 4,919.6 — — — 4,919.6 Debt issuance costs (30.0 ) — — — (30.0 ) Intercompany transactions, net 273.1 276.3 (549.4 ) — Payments under capital lease obligations — (1.3 ) (22.6 ) — (23.9 ) Other, net (6.7 ) 3.6 (3.6 ) — (6.7 ) Net cash provided from (used in) financing activities 61.1 (371.4 ) (585.7 ) — (896.0 ) Decrease in cash and cash equivalents (43.8 ) (2.0 ) (38.0 ) — (83.8 ) Cash and Cash Equivalents: Beginning of period 57.5 5.1 69.4 — 132.0 End of period $ 13.7 $ 3.1 $ 31.4 $ — $ 48.2 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations: On December 5, 2013, we completed the sale of Pinnacle, a software business acquired as part of the PAETEC acquisition, for $30.0 million in cash. Pinnacle provided comprehensive solutions for supporting the full lifecycle of information technology and telecommunications services. The following table summarizes the results of the software business which has been separately presented as discontinued operations in the accompanying consolidated statements of operations for the year ended December 31, 2013: (Millions) Revenues and sales $ 16.9 Operating income from discontinued operations 1.4 Gain on sale of discontinued operations 14.4 Income before tax from discontinued operations 15.8 Income tax expense 9.8 Net income from discontinued operations $ 6.0 |
Quarterly Financial Information
Quarterly Financial Information - (Unaudited): | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information - (Unaudited): | Quarterly Financial Information – (Unaudited): For the Year Ended December 31, 2015 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,765.3 $ 1,427.0 $ 1,498.6 $ 1,421.1 $ 1,418.6 Operating income $ 509.4 $ 131.7 $ 178.5 $ 79.3 $ 119.9 Net income (loss) $ 27.4 $ 140.5 $ (7.2 ) $ (111.2 ) $ 5.3 Basic and diluted earnings (loss) per share: (a) Net income (loss) $.24 $1.41 ($.08 ) ($1.13 ) $.05 For the Year Ended December 31, 2014 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,829.5 $ 1,443.1 $ 1,455.5 $ 1,466.0 $ 1,464.9 Operating income $ 507.1 $ 20.5 $ 151.6 $ 167.2 $ 167.8 Net (loss) income $ (39.5 ) $ (77.5 ) $ 8.0 $ 14.0 $ 16.0 Basic and diluted (loss) earnings per share: (a) Net (loss) income ($.45 ) ($.80 ) $.07 $.13 $.15 (a) Quarterly earnings (loss) per share amounts may not add to full-year earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. Significant events affecting our historical operating trends in the quarterly periods were as follows: • As discussed in Note 2, we recognized a pretax gain of $326.1 million from the sale of our data center business in the fourth quarter of 2015. This gain increased net income by $199.7 million . • Revenues and sales and operating income for the third quarter of 2015 were favorably impacted by $72.8 million of incremental CAF Phase II support received in August that was retroactive to January 1, 2015. • Operating income for the second quarter of 2015 was adversely impacted by $54.5 million of transaction costs related to the REIT spin-off, including investment banker, legal and accounting fees. (See Note 10). • Net income (loss) for the second, third and fourth quarters of 2015 was adversely impacted by additional interest expense of $96.0 million , $128.2 million and $127.4 million , respectively, attributable to the long-term lease obligation under the master lease agreement with CS&L. This additional interest expense decreased net income $78.0 million in the fourth quarter of 2015 and increased the net loss $58.8 million and $78.5 million in the second and third quarters of 2015, respectively. (See Note 5). • As discussed in Note 8, we recognize actuarial gains and losses for pension benefits as a component of net periodic benefit expense (income) in the fourth quarter of each year, unless an earlier measurement date is required. Results of operations for the fourth quarter of 2015 and 2014 include pretax actuarial losses related to pension benefits of $8.7 million and $128.6 million or an after-tax charge of $5.3 million and $79.3 million , respectively. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events: | Subsequent Events: During January and February 2016, Windstream Services repurchased in the open market $154.2 million aggregate principal amount of its senior unsecured notes, consisting of $93.5 million of its 2017 Notes, $33.1 million of its 2021 Notes, $17.0 million of its 2022 Notes, and $10.6 million of its 2023 Notes. The repurchases were made pursuant to the debt repurchase program approved by Windstream Services’ board of directors in 2015. During January and February 2016, Windstream Holdings repurchased in the open market $28.8 million of its common shares, thereby completing its $75.0 million stock repurchase program that had been authorized by our board of directors in August 2015. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies and Changes: (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies and New Accounting Pronouncements [Abstract] | |
Use of Estimates | Use of Estimates – The preparation of financial statements, in accordance with 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash – Cash balances restricted for uses other than current operations have been presented as restricted cash. In connection with broadband stimulus grants, we placed cash into pledged deposit accounts representing our share of committed spend on construction contracts that were subject to review by the Rural Utilities Service (“RUS”). Changes in the restricted cash balances have been presented as cash inflows or outflows in the investing activities section of the consolidated statements of cash flows. |
Accounts Receivable | Accounts Receivable – Accounts receivable consist principally of trade receivables from customers and are generally unsecured and due within 30 days. Expected credit losses related to trade accounts receivable are recorded as an allowance for doubtful accounts in the consolidated balance sheets. In establishing the allowance for doubtful accounts, we consider a number of factors, including historical collection experience, aging of the accounts receivable balances, current economic conditions and a specific customer’s ability to meet its financial obligations. When internal collection efforts on accounts have been exhausted, the accounts are written off by reducing the allowance for doubtful accounts. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-off, we must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled receivables related to communications services and product sales of $41.5 million and $40.2 million at December 31, 2015 and 2014 , respectively. |
Inventories | Inventories – Inventories consist of finished goods and are stated at the lower of cost or market value. Cost is determined using either an average original cost or specific identification method of valuation. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist of prepaid services, rent, insurance, maintenance contracts and refundable deposits. Prepayments are expensed on a straight-line basis over the corresponding life of the underlying agreements. |
Broadband Stimulus Spend | Broadband Stimulus Grants – Capital expenditures related to the broadband stimulus grants were initially recorded to construction in progress. A receivable totaling 75 percent of the gross spend, representing the expected reimbursement from the RUS was recorded during the same period, offsetting the amounts recorded in construction in progress. The resulting balance sheet presentation reflects our 25 percent investment in these assets in property, plant and equipment. Once placed into service, depreciation of the asset was calculated and recorded based on our 25 percent investment in the equipment. Initial outlays to purchase stimulus-related assets have been presented as outflows in the investing activities section of the consolidated statements of cash flows. Grant funds received from the RUS have been presented as inflows in the investing activities section of the consolidated statements of cash flows. As of December 31, 2015, we had received all amounts due from the RUS related to these grants. |
Connect America Fund Support | Connect America Fund Support – In conjunction with reforming USF, the Federal Communications Commission (“FCC”) established the Connect America Fund (“CAF”) which provides incremental broadband funding to a number of unserved and underserved locations. CAF includes both short-term (“ CAF Phase I”) and a longer-term (“CAF Phase II”) framework. We received $86.7 million in CAF Phase I support for upgrades and new deployments of broadband service. Pursuant to commitments we made with the FCC, we agreed to match, on at least a dollar-for-dollar basis, the total amount of CAF Phase I support we received. As construction projects which utilized CAF Phase I support were initiated, a portion of the CAF Phase I support received was reclassified from other liabilities as an offset to construction in progress to effectively reduce the capitalized cost of the constructed asset. For each construction dollar we spent, an equal amount was transferred from other liabilities to construction in progress to reflect our dollar-for-dollar matching requirement. As of December 31, 2015, we had utilized all CAF Phase I support we had received. Comparatively, as of December 31, 2014, $53.9 million of CAF Phase I support was recorded in other current liabilities and $20.0 million was recorded in other liabilities, in the accompanying consolidated balance sheet. CAF Phase I support received and used to construct network assets during the period has been presented within the investing activities section of the consolidated statements of cash flows. On August 5, 2015, we notified the FCC of our acceptance of CAF Phase II support of approximately $175.0 million per year for a six year period to fund the deployment of voice and high-speed Internet capable infrastructures for approximately 400,000 eligible locations in 17 of the 18 states in which we are the incumbent provider. The CAF Phase II support in these 17 states will substantially replace funding we received under the federal USF high-cost support program. We declined the annual statewide funding in one state, New Mexico, where our projected cost to comply with the FCC’s deployment requirements greatly exceeded the funding offer. We will be eligible to participate in a competitive bidding process for the CAF Phase II support in New Mexico, along with other interested eligible competitors under an auction process administered by the FCC, which is expected to be held during 2016. We will continue to receive annual USF support in New Mexico frozen at 2011 levels until the CAF Phase II competitive bidding process is completed. Funds received under CAF Phase II are recognized as service revenues ratably over the period to which the funding pertains. |
Asset Disposals | Asset Disposals – On December 18, 2015, Windstream Services completed the sale of a substantial portion of our data center business to TierPoint LLC (“TierPoint”) for $574.2 million in cash, net of the $0.8 million working capital settlement, and recorded a pretax gain of $326.1 million . Excluding the effects of the gain, pretax losses for the data center business were $(0.5) million , $(17.6) million and $(19.1) million in 2015, 2014, and 2013, respectively. The sale of the data center business did not represent a strategic shift in our business nor had a major effect on our consolidated results of operations, financial position or cash flows, and accordingly, does not qualify for reporting as a discontinued operation. As part of the transaction, we established an ongoing reciprocal strategic partnership with TierPoint, allowing both companies to sell their respective products and services to each other’s prospective customers through referrals. On December 5, 2013, we completed the sale of Pinnacle Software Company (“Pinnacle”), a software company acquired in conjunction with the 2011 acquisition of PAETEC Holding Corp. (“PAETEC”) for $30.0 million in cash. The software business has been reported as discontinued operations for the year ended December 31, 2013. See Note 17 for further discussion of discontinued operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets, and the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. In accordance with authoritative guidance, goodwill is to be assigned to a company’s reporting units and tested for impairment at least annually using a consistent measurement date, which for us has been January 1st of each year. Goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit for which discrete financial information is available and our executive management team regularly reviews the operating results of that component. Additionally, components of an operating segment can be combined as a single reporting unit if the components have similar economic characteristics. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit’s goodwill must be determined and compared to the carrying value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. Under the qualitative assessment, if an entity determines that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the entity is not required to complete the two step goodwill impairment evaluation. As of January 1, 2015, we had three reporting units, excluding corporate level activities. In performing our annual goodwill impairment assessment, we estimated the fair value of each of our three reporting units utilizing both an income approach and a market approach. The income approach was based on the present value of projected cash flows and a terminal value, which represented the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. The market approach included the use of comparable multiples of publicly traded companies operating in businesses similar to ours. We also reconciled the estimated fair value of our reporting units to our total invested capital. As of January 1, 2015, based on our assessment performed with respect to our three reporting units as described above, we concluded that goodwill for all of our reporting units was not impaired as of that date, and accordingly, no further analysis was required. During the fourth quarter of 2015, in connection with the disposal of our data center business and the reorganization of our business operations, we reassessed our reporting unit structure as of November 1, 2015 and determined that we had five reporting units, consisting of our four reportable operating segments and the data center operations subsequently sold and excluding corporate activities. We are required to reassign goodwill to reporting units each time we reorganize our internal reporting structure that results in a change in the composition of our reporting units. Our reporting units are not separate legal entities with discrete balance sheet information. As a result, assets and liabilities utilized in or relating to multiple reporting units have been allocated to the reporting units using consistent and reasonable allocation methodologies. Immediately prior to the change in our reporting unit structure and reassignment of goodwill, we determined that no goodwill impairment existed as of November 1, 2015. In conjunction with our change in reporting units and the reallocation of goodwill, we have also elected to change on a go forward basis the date of our annual goodwill impairment assessment from January 1st to November 1st, which we believe is preferable because it more closely aligns with the timing of our internal strategic planning process. Following the sale of the data center business, we no longer have a separate data center reporting unit for purposes of performing our annual goodwill impairment assessment. 2. Summary of Significant Accounting Policies and Changes, Continued: In completing the reassignment of goodwill as of November 1, 2015, we estimated the fair value of our reporting units using an income approach. The income approach is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. We corroborated the results of the income approach by aggregating the fair values of the reporting units and comparing the total value to overall market multiples for guideline public companies operating in the same lines of business as our reporting units. We also reconciled the estimated fair value of our reporting units to our total invested capital. Goodwill was then reassigned to the reporting units using a relative fair value allocation approach. Other intangible assets arising from business combinations such as franchise rights, customer lists, and cable franchise rights are initially recorded at estimated fair value. We amortize customer lists using the sum-of-the-digits method over an estimated life of 9 to 15 years . All other intangible assets are amortized using a straight-line method over the estimated useful lives. (See Note 4 for additional information.) |
Net Property, Plant and Equipment | Net Property, Plant and Equipment – Property, plant and equipment are stated at original cost, less accumulated depreciation. Property, plant and equipment consists of central office equipment, office and warehouse facilities, outside communications plant, customer premise equipment, furniture, fixtures, vehicles, machinery, other equipment and software to support the business units in the distribution of telecommunications products. The costs of additions, replacements, substantial improvements and extension of the network to the customer premise, including related labor costs, are capitalized, while the costs of maintenance and repairs are expensed as incurred. Depreciation expense amounted to $1,146.3 million , $1,130.3 million , and $1,049.7 million in 2015 , 2014 and 2013 , respectively. Net property, plant and equipment consisted of the following as of December 31: (Millions) Depreciable Lives 2015 2014 Land $ 43.4 $ 44.3 Building and improvements 3-40 years 604.9 655.5 Central office equipment 3-40 years 6,013.9 5,750.4 Outside communications plant 7-47 years 7,245.3 6,906.6 Furniture, vehicles and other equipment 3-23 years 1,660.2 1,616.0 Construction in progress 527.6 365.2 16,095.3 15,338.0 Less accumulated depreciation (10,815.5 ) (9,925.7 ) Net property, plant and equipment $ 5,279.8 $ 5,412.3 Of the total net property, plant and equipment at December 31, 2015 listed above, approximately $2.4 billion was transferred to Communications Sales & Leasing, Inc. (“CS&L”) in connection with the spin-off and then was leased back by Windstream Holdings (see Note 3). Under the master lease agreement with CS&L, any capital improvements, including upgrades or replacements to the leased network assets, funded by us become the property of CS&L at the time such improvements are placed in service. As further discussed in Note 5, we accounted for the spin-off transaction as a failed spin-leaseback for financial reporting purposes and, as a result the net book value of the assets initially transferred to CS&L and any subsequent capital improvements made by us continue to be reported in our consolidated balance sheet as property, plant and equipment and are depreciated over the initial lease term of 15 years . Our regulated operations use a group composite depreciation method. Under this method, when plant is retired, the original cost, net of salvage value, is charged against accumulated depreciation and no immediate gain or loss is recognized on the disposition of the plant. For our non-regulated operations, when depreciable plant is retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts, with the corresponding gain or loss reflected in operating results. The RUS has retained a security interest in the assets funded by the broadband stimulus grants over their economic life, which varies by grant for periods up to 23 years . In the event of default of terms of the agreement, the RUS could exercise the rights under its retained security interest to gain control and ownership of these assets. In addition, in the event of a proposed change in control of Windstream, the acquiring party would need to receive approval from the RUS prior to consummating the proposed transaction, for which pre-approval will not be reasonably withheld. 2. Summary of Significant Accounting Policies and Changes, Continued: We capitalize interest in connection with the acquisition or construction of plant assets. Capitalized interest is included in the cost of the asset with a corresponding reduction in interest expense. Capitalized interest amounted to $10.4 million , $3.7 million and $7.9 million in 2015 , 2014 and 2013 , respectively. |
Asset Retirement Obligations | Asset Retirement Obligations – We recognize asset retirement obligations in accordance with authoritative guidance on accounting for asset retirement obligations and conditional asset retirement obligations, which requires recognition of a liability for the fair value of an asset retirement obligation if the amount can be reasonably estimated. Our asset retirement obligations include legal obligations to remediate the asbestos in certain buildings if we exit them, to properly dispose of our chemically-treated telephone poles at the time they are removed from service and to restore certain leased properties to their previous condition upon exit from the lease. These asset retirement obligations totaled $53.1 million and $53.4 million as of December 31, 2015 and 2014 , respectively, and are included in other liabilities in the accompanying consolidated balance sheets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets – We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. |
Investment in CS&L Common Stock | Investment in CS&L Common Stock – Shares of CS&L retained by Windstream Services following the spin-off of certain network and real estate assets (see Note 3) are classified as available-for-sale and recorded at fair value with unrealized gains and losses reported in accumulated other comprehensive (loss) income. No deferred income taxes are recorded with respect to the unrealized gains and losses due to the tax-free qualification of the spin-off. Information pertaining to this investment at December 31, 2015 was as follows: (Millions) Cost Fair Value Carrying Value Unrealized Loss CS&L common stock $835.7 $549.2 $549.2 $(286.5) As of December 31, 2015, Windstream Services has held the shares of CS&L common stock for less than 12 months. In assessing whether the unrealized loss was an other-than-temporary impairment, we considered that as of December 31, 2015: (i) CS&L had only been in operation for slightly more than 8 months and had not had sufficient time to execute on its strategy to expand and diversify its leasing business in any substantive way; (ii) the positive impact, prior to the recent macroeconomic environment, of CS&L’s announcement on January 6, 2016 that it had executed an agreement to acquire PEG Bandwidth, LLC, which owns an extensive fiber network; (iii) the stability of CS&L’s cash flows and leasing income streams under the master lease agreement due to the 15-year initial lease term and Windstream Services’ improved leverage following the repayment of $3.2 billion of long-term debt in connection with the spin-off; and (iv) Windstream Services’ ability to hold the CS&L common stock for up to 15 more months, a time period that is sufficient to allow for the recovery of the unrealized losses. Based on these factors, we did not consider our investment in CS&L common stock to be other-than-temporarily impaired as of December 31, 2015. |
Derivative Instruments | Derivative Instruments – 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. |
Revenue Recognition | Revenue Recognition – Service revenues are primarily derived from providing access to or usage of our networks and facilities. Service revenues are recognized over the period that the corresponding services are rendered to customers. Revenues that are billed in advance include monthly recurring network access and data services, special access and monthly recurring voice, Internet and other related charges. The unearned portion of these revenues is included in advance payments and customer deposits in the accompanying consolidated balance sheets. Revenues derived from other telecommunications services, including interconnection, long distance and enhanced service revenues are recognized monthly as services are provided. Revenue from sales of indefeasible rights to use fiber optic network facilities (“IRUs”) and the related telecommunications network maintenance arrangements is generally recognized over the term of the related lease or contract. Sales of communications products including customer premise equipment and modems are recognized when products are delivered to and accepted by customers. Fees assessed to customers for service activation are deferred upon service activation and recognized as service revenue on a straight-line basis over the expected life of the customer relationship in accordance with authoritative guidance on multiple element arrangements. Certain costs associated with activating such services are deferred and recognized as an operating expense over the same period. In determining whether to include in revenues and expenses the taxes and surcharges assessed and collected from customers and remitted to government authorities, including USF charges, sales, use, value added and excise taxes, we evaluate, among other factors, whether we are the primary obligor or principal tax payer for the fees and taxes assessed in each jurisdiction in which we operate. In those jurisdictions for which we are the primary obligor, we record the taxes and surcharges on a gross basis and include in revenues and costs of services and products. In jurisdictions in which we function as a collection agent for the government authority, we record the taxes on a net basis and exclude the amounts from our revenues and costs of services and products. |
Advertising | Advertising – Advertising costs are expensed as incurred. Advertising expense totaled $52.9 million , $59.5 million and $42.4 million in 2015 , 2014 and 2013 , respectively. |
Share-Based Compensation | Share-Based Compensation – In accordance with authoritative guidance on share-based compensation, we value all time-based awards to employees at fair value on the date of the grant, and recognize that value as compensation expense over the period that each award vests. Performance-based awards are valued at fair value at the end of each reporting period until final performance targets are set. Share-based compensation expense for performance-based awards is recognized when it is probable and estimable as measured against performance metrics. Share-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Pension Benefits | Pension Benefits – We recognize changes in the fair value of plan assets and actuarial gains and losses due to actual experience differing from actuarial assumptions, as a component of net periodic benefit expense (income) in the fourth quarter in the year in which the gains and losses occur, and if applicable in any quarter in which an interim remeasurement is required. The remaining components of net periodic benefit (income) expense, primarily service and interest costs and assumed return on plan assets, are recognized ratably on a quarterly basis. |
Operating Leases | Operating Leases – Certain of our operating lease agreements include scheduled rent escalations during the initial lease term and/or during succeeding optional renewal periods. We account for these operating leases in accordance with authoritative guidance for operating leases with non-level rent payments. Accordingly, the scheduled increases in rent expense are recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured. The difference between rent expense and rent paid is recorded as deferred rent and is included in other liabilities in the accompanying consolidated balance sheets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term, including renewal option periods that are reasonably assured. |
Income Taxes | Income Taxes – We account for income taxes in accordance with guidance on accounting for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. In addition, we adopted authoritative guidance which addresses uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold that the income tax positions must achieve before being recognized in the financial statements. 2. Summary of Significant Accounting Policies and Changes, Continued: 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. |
Earnings Per Share | Earnings (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 are 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 exclude 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. 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. Options and warrants granted in conjunction with past acquisitions are included in the computation of dilutive earnings per share using the treasury stock method. All per share information presented has been retrospectively adjusted to reflect the effects of the one -for- six reverse stock split which became effective on April 26, 2015. A reconciliation of net income (loss) and number of shares used in computing basic and diluted earnings (loss) per share was as follows for the years ended December 31: (Millions, except per share amounts) 2015 2014 2013 Basic and diluted earnings (loss) per share: Numerator: Income (loss) from continuing operations $ 27.4 $ (39.5 ) $ 235.0 Income from continuing operations allocable to participating securities (3.5 ) (5.0 ) (4.1 ) Adjusted income (loss) from continuing operations attributable to common shares 23.9 (44.5 ) 230.9 Income from discontinued operations (a) — — 6.0 Net income (loss) attributable to common shares $ 23.9 $ (44.5 ) $ 236.9 Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 102.0 100.3 98.8 Weighted average participating securities (3.1 ) (0.8 ) (0.6 ) Weighted average basic and diluted shares outstanding 98.9 99.5 98.2 Basic and diluted earnings (loss) per share: From continuing operations $.24 ($.45 ) $2.35 From discontinued operations — — .06 Net income (loss) $.24 ($.45 ) $2.41 (a) None of the income from discontinued operations was allocable to participating securities in 2013. 2. Summary of Significant Accounting Policies and Changes, Continued: Options to purchase shares of stock issuable under stock-based compensation plans that were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be anti-dilutive, totaled approximately 0.5 million for both years ended December 31, 2015 and 2014 and 0.7 million shares for the year ended December 31, 2013 . |
Schedule I - Condensed Financ37
Schedule I - Condensed Financial Information of the Registrant (Parent Company) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Statements of Comprehensive Income (Loss) | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Millions) For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the period of August 30, 2013 (date of formation) to December 31, 2013 Operating revenues: Leasing income from subsidiaries $ 446.0 $ — $ — Total operating revenues 446.0 — — Costs and expenses: Selling, general and administrative 2.0 2.3 0.5 Depreciation expense 239.7 — — Total costs and expenses 241.7 2.3 0.5 Operating income (loss) 204.3 (2.3 ) (0.5 ) Interest expense on long-term lease obligation with CS&L (351.6 ) — — Loss before income taxes and equity in subsidiaries (147.3 ) (2.3 ) (0.5 ) Income tax benefit (57.0 ) (0.9 ) (0.2 ) Loss before equity in subsidiaries (90.3 ) (1.4 ) (0.3 ) Equity earnings (losses) from subsidiaries 117.7 (38.1 ) 137.6 Net income (loss) $ 27.4 $ (39.5 ) $ 137.3 Comprehensive (loss) income $ (269.1 ) $ (55.9 ) $ 134.4 Condensed Consolidating Statement of Comprehensive (Loss) Income For the Year Ended December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,153.6 $ 4,470.6 $ (25.6 ) $ 5,598.6 Product sales — 145.3 21.4 — 166.7 Total revenues and sales — 1,298.9 4,492.0 (25.6 ) 5,765.3 Costs and expenses: Cost of services — 490.7 2,293.5 (22.2 ) 2,762.0 Cost of products sold — 125.0 20.2 — 145.2 Selling, general and administrative — 184.0 683.9 (3.4 ) 864.5 Depreciation and amortization 18.3 333.4 1,014.8 — 1,366.5 Merger and integration costs — — 95.0 — 95.0 Restructuring charges — 9.4 11.3 — 20.7 Total costs and expenses 18.3 1,142.5 4,118.7 (25.6 ) 5,253.9 Operating (loss) income (18.3 ) 156.4 373.3 — 511.4 Earnings (losses) from consolidated subsidiaries 239.6 (149.9 ) (7.8 ) (81.9 ) — Other income, net 45.7 0.8 11.0 — 57.5 Gain on sale of data center business — — 326.1 — 326.1 Loss on early extinguishment of debt (30.7 ) (5.3 ) (0.4 ) — (36.4 ) Intercompany interest income (expense) 115.9 (46.5 ) (69.4 ) — — Interest expense (440.1 ) (122.0 ) (251.1 ) — (813.2 ) (Loss) income before income taxes (87.9 ) (166.5 ) 381.7 (81.9 ) 45.4 Income tax (benefit) expense (116.5 ) (16.9 ) 150.2 — 16.8 Net income (loss) $ 28.6 $ (149.6 ) $ 231.5 $ (81.9 ) $ 28.6 Comprehensive (loss) income $ (267.9 ) $ (149.6 ) $ 231.5 $ (81.9 ) $ (267.9 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive (Loss) Income For the Year Ended December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,176.0 $ 4,496.6 $ (25.0 ) $ 5,647.6 Product sales — 154.7 27.2 — 181.9 Total revenues and sales — 1,330.7 4,523.8 (25.0 ) 5,829.5 Costs and expenses: Cost of services — 517.0 2,277.0 (20.7 ) 2,773.3 Cost of products sold — 131.2 25.4 — 156.6 Selling, general and administrative — 165.7 766.1 (4.3 ) 927.5 Depreciation and amortization 21.9 337.5 1,027.0 — 1,386.4 Merger and integration costs — — 40.4 — 40.4 Restructuring charges — 8.1 27.8 — 35.9 Total costs and expenses 21.9 1,159.5 4,163.7 (25.0 ) 5,320.1 Operating (loss) income (21.9 ) 171.2 360.1 — 509.4 Earnings (losses) from consolidated subsidiaries 217.3 (210.3 ) 4.0 (11.0 ) — Other (expenses) income, net (0.2 ) 162.9 (162.6 ) — 0.1 Intercompany interest income (expense) 127.2 (53.7 ) (73.5 ) — — Interest expense (523.9 ) (44.8 ) (3.1 ) — (571.8 ) (Loss) income before income taxes (201.5 ) 25.3 124.9 (11.0 ) (62.3 ) Income tax (benefit) expense (163.4 ) 99.8 39.4 — (24.2 ) Net (loss) income $ (38.1 ) $ (74.5 ) $ 85.5 $ (11.0 ) $ (38.1 ) Comprehensive (loss) income $ (54.5 ) $ (74.5 ) $ 85.5 $ (11.0 ) $ (54.5 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2013 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,222.9 $ 4,583.0 $ (30.4 ) $ 5,775.5 Product sales — 182.6 30.0 — 212.6 Total revenues and sales — 1,405.5 4,613.0 (30.4 ) 5,988.1 Costs and expenses: Cost of services — 476.2 2,090.6 (25.6 ) 2,541.2 Cost of products sold — 143.5 40.4 — 183.9 Selling, general and administrative — 141.9 736.7 (4.8 ) 873.8 Depreciation and amortization 25.0 325.4 990.5 — 1,340.9 Merger and integration costs — — 30.2 — 30.2 Restructuring charges — 2.1 6.5 — 8.6 Total costs and expenses 25.0 1,089.1 3,894.9 (30.4 ) 4,978.6 Operating (loss) income (25.0 ) 316.4 718.1 — 1,009.5 Earnings (losses) from consolidated subsidiaries 526.1 (62.0 ) 121.6 (585.7 ) — Other income (expense), net 2.1 168.3 (182.9 ) — (12.5 ) Loss on early extinguishment of debt (17.2 ) (11.3 ) — — (28.5 ) Intercompany interest income (expense) 134.5 (61.1 ) (73.4 ) — — Interest (expense) income (584.6 ) (46.7 ) 3.6 — (627.7 ) Income from continuing operations before income taxes 35.9 303.6 587.0 (585.7 ) 340.8 Income tax (benefit) expense (205.4 ) 150.2 160.7 — 105.5 Income from continuing operations 241.3 153.4 426.3 (585.7 ) 235.3 Discontinued operations — — 6.0 — 6.0 Net income $ 241.3 $ 153.4 $ 432.3 $ (585.7 ) $ 241.3 Comprehensive income $ 263.4 $ 153.4 $ 432.3 $ (585.7 ) $ 263.4 |
Balance Sheets | BALANCE SHEETS (Millions, except par value) Assets 2015 2014 Current Assets: Distributions receivable from Windstream Services $ 15.1 $ 152.4 Total current assets 15.1 152.4 Investment and affiliate related balances 2,009.5 224.8 Net property, plant and equipment 2,301.3 — Deferred income taxes 1,076.0 — Total Assets $ 5,401.9 $ 377.2 Liabilities and Shareholders’ Equity Current liabilities: Accrued dividends $ 15.1 $ 152.4 Current portion of long-term lease obligation 152.7 — Total current liabilities 167.8 152.4 Long-term lease obligation 4,927.7 — Total liabilities 5,095.5 152.4 Shareholders’ Equity: Common stock, $0.0001 par value, 166.7 shares authorized, 96.7 and 100.5 shares issued and outstanding — — Additional paid-in capital 602.9 252.2 Accumulated other comprehensive (loss) income (284.4 ) 12.1 Accumulated deficit (12.1 ) (39.5 ) Total shareholders’ equity 306.4 224.8 Total Liabilities and Shareholders’ Equity $ 5,401.9 $ 377.2 Condensed Consolidating Balance Sheet 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 (less allowance for doubtful accounts of $33.1) — 218.6 425.3 — 643.9 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 619.1 2,435.4 (3,054.5 ) — Inventories — 69.1 10.4 — 79.5 Prepaid expenses and other 321.8 32.4 64.6 (298.2 ) 120.6 Total current assets 321.8 945.1 2,969.2 (3,360.8 ) 875.3 Investments in consolidated subsidiaries 6,332.3 320.4 242.7 (6,895.4 ) — Notes receivable - affiliate — 314.1 — (314.1 ) — Goodwill 1,636.7 1,343.0 1,233.9 — 4,213.6 Other intangibles, net 554.3 282.8 667.6 — 1,504.7 Net property, plant and equipment 8.4 1,241.3 4,030.1 — 5,279.8 Investment in CS&L common stock 549.2 — — — 549.2 Deferred income taxes — 301.2 215.3 (516.5 ) — Other assets 14.2 56.3 25.0 — 95.5 Total Assets $ 9,416.9 $ 4,804.2 $ 9,383.8 $ (11,086.8 ) $ 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 — 92.9 337.2 — 430.1 Affiliates payable, net 3,069.6 — — (3,054.5 ) 15.1 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 26.3 167.6 — 193.9 Accrued taxes 0.3 11.9 370.1 (298.2 ) 84.1 Accrued interest 75.3 1.9 1.2 — 78.4 Other current liabilities 42.6 47.5 216.8 — 306.9 Total current liabilities 3,193.7 224.9 1,206.0 (3,357.5 ) 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 25.1 419.3 — 492.2 Total liabilities 9,110.5 1,804.7 5,484.6 (4,188.1 ) 12,211.7 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 600.3 3,128.2 848.0 (3,976.2 ) 600.3 Accumulated other comprehensive (loss) income (284.4 ) — 2.8 (2.8 ) (284.4 ) (Accumulated deficit) retained earnings (9.5 ) (168.1 ) 2,966.5 (2,798.4 ) (9.5 ) Total equity 306.4 2,999.5 3,899.2 (6,898.7 ) 306.4 Total Liabilities and Equity $ 9,416.9 $ 4,804.2 $ 9,383.8 $ (11,086.8 ) $ 12,518.1 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet As of December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ — $ 3.8 $ 50.0 $ (26.0 ) $ 27.8 Restricted cash 6.7 — — — 6.7 Accounts receivable (less allowance for doubtful accounts of $43.4) — 266.5 369.0 — 635.5 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 969.0 2,155.6 (3,124.6 ) — Inventories — 56.2 7.5 — 63.7 Prepaid expenses and other 35.5 32.4 96.7 — 164.6 Total current assets 42.2 1,332.7 2,678.8 (3,155.4 ) 898.3 Investments in consolidated subsidiaries 10,001.3 747.9 232.4 (10,981.6 ) — Notes receivable - affiliate — 317.7 — (317.7 ) — Goodwill 1,649.5 1,469.4 1,233.9 — 4,352.8 Other intangibles, net 590.7 355.2 818.1 — 1,764.0 Net property, plant and equipment 9.8 1,329.5 4,073.0 — 5,412.3 Other assets 16.7 37.2 39.0 — 92.9 Total Assets $ 12,310.2 $ 5,589.6 $ 9,075.2 $ (14,454.7 ) $ 12,520.3 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 717.4 $ — $ 0.1 $ — $ 717.5 Accounts payable 2.1 113.0 288.2 — 403.3 Affiliates payable, net 3,277.0 — — (3,124.6 ) 152.4 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 36.5 178.2 — 214.7 Accrued taxes 0.2 25.0 70.0 — 95.2 Accrued interest 94.3 5.8 2.4 — 102.5 Other current liabilities 60.8 26.5 270.1 — 357.4 Total current liabilities 4,151.8 206.8 813.8 (3,129.4 ) 2,043.0 Long-term debt 7,275.9 568.9 1.7 — 7,846.5 Long-term lease obligations — 24.0 57.0 — 81.0 Notes payable - affiliate — — 317.7 (317.7 ) — Deferred income taxes 591.2 193.1 988.9 — 1,773.2 Other liabilities 66.5 28.2 457.1 — 551.8 Total liabilities 12,085.4 1,021.0 2,636.2 (3,447.1 ) 12,295.5 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 250.8 4,370.0 3,426.9 (7,796.9 ) 250.8 Accumulated other comprehensive income 12.1 — 14.5 (14.5 ) 12.1 (Accumulated deficit) retained earnings (38.1 ) 159.2 2,915.7 (3,074.9 ) (38.1 ) Total equity 224.8 4,568.6 6,439.0 (11,007.6 ) 224.8 Total Liabilities and Equity $ 12,310.2 $ 5,589.6 $ 9,075.2 $ (14,454.7 ) $ 12,520.3 |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS (Millions) For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the period of August 30, 2013 (date of formation) to December 31, 2013 Cash Provided from Operations: Net income (loss) $ 27.4 $ (39.5 ) $ 137.3 Adjustments to reconcile net income (loss) to net cash provided from operations: Equity (earnings) losses from subsidiaries (117.7 ) 38.1 (137.6 ) Depreciation expense 239.7 — — Deferred income taxes (56.2 ) — — Changes in operating assets and liabilities, net: Other current assets — — (0.1 ) Net cash provided from (used in) operating activities 93.2 (1.4 ) (0.4 ) Cash Flows from Investing Activities: Additions to property, plant and equipment (43.1 ) — — Net cash used in investing activities (43.1 ) — — Cash Flows from Financing Activities: Distributions from Windstream Services 416.6 603.6 149.4 Funding received from CS&L 43.1 — — Dividends paid to shareholders (369.2 ) (602.2 ) (149.0 ) Stock repurchases (46.2 ) — — Payments under long-term lease obligation (94.4 ) — — Net cash (used in) provided from financing activities (50.1 ) 1.4 0.4 Change in cash and cash equivalents — — — Cash and Cash Equivalents: Beginning of period — — — End of period $ — $ — $ — Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (337.4 ) $ 256.1 $ 1,109.1 $ — $ 1,027.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (1.0 ) (180.4 ) (873.9 ) — (1,055.3 ) Changes in restricted cash 6.7 — — — 6.7 Grant funds received for broadband stimulus projects 23.5 — — — 23.5 Network expansion funded by Connect America Fund - Phase 1 — (18.6 ) (55.3 ) — (73.9 ) Disposition of data center business — — 574.2 — 574.2 Other, net (9.6 ) 0.1 12.3 — 2.8 Net cash provided from (used in) investing activities 19.6 (198.9 ) (342.7 ) — (522.0 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (416.6 ) — — — (416.6 ) Payment received from CS&L in spin-off 1,035.0 — — — 1,035.0 Funding received from CS&L for tenant capital improvements — 19.6 23.5 — 43.1 Repayments of debt and swaps (2,898.9 ) (450.0 ) (2.0 ) — (3,350.9 ) Proceeds of debt issuance 2,335.0 — — — 2,335.0 Debt issuance costs (4.3 ) — — — (4.3 ) Intercompany transactions, net 277.1 406.7 (706.5 ) 22.7 — Payments under long-term lease obligations — (35.6 ) (67.0 ) — (102.6 ) Payments under capital lease obligations — (4.2 ) (27.3 ) — (31.5 ) Other, net (9.5 ) 3.6 (3.6 ) — (9.5 ) Net cash provided from (used in) financing activities 317.8 (59.9 ) (782.9 ) 22.7 (502.3 ) Decrease in cash and cash equivalents — (2.7 ) (16.5 ) 22.7 3.5 Cash and Cash Equivalents: Beginning of period — 3.8 50.0 (26.0 ) 27.8 End of period $ — $ 1.1 $ 33.5 $ (3.3 ) $ 31.3 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (129.2 ) $ 448.1 $ 1,149.8 $ — $ 1,468.7 Cash Flows from Investing Activities: Additions to property, plant and equipment (1.8 ) (116.6 ) (668.1 ) — (786.5 ) Broadband network expansion funded by stimulus grants — (0.3 ) (13.0 ) — (13.3 ) Changes in restricted cash 3.0 — — — 3.0 Grant funds received for broadband stimulus projects 33.2 — — — 33.2 Grant funds received from Connect America Fund - Phase 1 — 9.4 16.6 — 26.0 Network expansion funded by Connect America Fund - Phase 1 — (1.3 ) (11.5 ) — (12.8 ) Acquisition of a business (22.6 ) — — — (22.6 ) Other, net — — 3.9 — 3.9 Net cash provided from (used in) investing activities 11.8 (108.8 ) (672.1 ) — (769.1 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (603.6 ) — — — (603.6 ) Repayments of debt and swaps (1,394.4 ) — (1.0 ) — (1,395.4 ) Proceeds of debt issuance 1,315.0 — — — 1,315.0 Intercompany transactions, net 795.9 (341.6 ) (428.3 ) (26.0 ) — Payments under capital lease obligations — (0.6 ) (26.2 ) — (26.8 ) Other, net (9.2 ) 3.6 (3.6 ) — (9.2 ) Net cash provided from (used in) financing activities 103.7 (338.6 ) (459.1 ) (26.0 ) (720.0 ) (Decrease) increase in cash and cash equivalents (13.7 ) 0.7 18.6 (26.0 ) (20.4 ) Cash and Cash Equivalents: Beginning of period 13.7 3.1 31.4 — 48.2 End of period $ — $ 3.8 $ 50.0 $ (26.0 ) $ 27.8 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (186.2 ) $ 509.9 $ 1,196.1 $ — $ 1,519.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (2.0 ) (157.5 ) (681.5 ) — (841.0 ) Broadband network expansion funded by stimulus grants — (4.9 ) (31.2 ) — (36.1 ) Changes in restricted cash 15.3 — 1.5 — 16.8 Grant funds received for broadband stimulus projects 68.0 — — — 68.0 Grant funds received from Connect America Fund - Phase 1 — 21.9 38.8 — 60.7 Disposition of software business — — 30.0 — 30.0 Other, net — — (6.0 ) — (6.0 ) Net cash provided from (used in) investing activities 81.3 (140.5 ) (648.4 ) — (707.6 ) Cash Flows from Financing Activities: Dividends paid to shareholders (444.6 ) — — — (444.6 ) Distributions to Windstream Holdings, Inc. (149.4 ) — — — (149.4 ) Repayments of debt and swaps (4,500.9 ) (650.0 ) (10.1 ) — (5,161.0 ) Proceeds of debt issuance 4,919.6 — — — 4,919.6 Debt issuance costs (30.0 ) — — — (30.0 ) Intercompany transactions, net 273.1 276.3 (549.4 ) — Payments under capital lease obligations — (1.3 ) (22.6 ) — (23.9 ) Other, net (6.7 ) 3.6 (3.6 ) — (6.7 ) Net cash provided from (used in) financing activities 61.1 (371.4 ) (585.7 ) — (896.0 ) Decrease in cash and cash equivalents (43.8 ) (2.0 ) (38.0 ) — (83.8 ) Cash and Cash Equivalents: Beginning of period 57.5 5.1 69.4 — 132.0 End of period $ 13.7 $ 3.1 $ 31.4 $ — $ 48.2 |
Other Parent Company Disclosures | Background and Basis of Presentation: Notwithstanding the accounting treatment for the spin-off transaction as further discussed below, following its formation on August 30, 2013, Windstream Holdings, Inc. (“Windstream Holdings”) has no material assets or operations other than its ownership in Windstream Services, LLC (“Windstream Services”), formerly Windstream Corporation, and its subsidiaries. Effective February 28, 2015, Windstream Corporation was converted to a limited liability company. Following the conversion Windstream Holdings owns a 100 percent interest in Windstream Services. On April 24, 2015, Windstream Holdings completed the spin-off of certain telecommunications network assets and other real estate, into an independent, publicly traded real estate investment trust, Communications Sales & Leasing, Inc. (“CS&L”). Immediately prior to the effective time of the spin-off, Windstream Services and its subsidiaries contributed the network assets to Windstream Holdings for distribution to CS&L. The telecommunications network assets consisted of copper cable and fiber optic cable lines, telephone poles, underground conduits, concrete pads, attachment hardware (e.g., bolts and lashings), pedestals, guy wires, anchors, signal repeaters, and central office land and buildings, with a net book value of approximately $2.5 billion at the time of spin-off. Following the spin-off transaction, on April 24, 2015, Windstream Holdings entered into a long-term triple-net master lease with CS&L to lease back the telecommunications network assets. Due to various forms of continuing involvement, including Windstream Services or its subsidiaries, retaining bare legal title (but not beneficial ownership) to the various easements, permits and pole attachments related to the telecommunications network assets, the transaction was accounted for as a failed spin-leaseback for financial reporting purposes. As a result, the accompanying condensed parent company financial statements include the telecommunications network assets and other real estate assets, the long-term lease obligation associated with the master lease and the related deferred income taxes. As the master lease was entered into by Windstream Holdings for the direct benefit of Windstream Services and its subsidiaries, Windstream Services is also deemed to have continuing involvement due to retaining its regulatory obligations associated with operating the telecommunications network assets. Accordingly, the effects of the failed spin-leaseback transaction have also been reflected in the standalone consolidated financial statements of Windstream Services (collectively referred to as “CS&L spin transactions”). Certain covenants within Windstream Services’ senior secured credit facility may restrict its ability to distribute funds to Windstream Holdings in the form of dividends, loans or advances. Accordingly, these condensed financial statements of Windstream Holdings have been presented on a “Parent Only” basis. Under this basis of presentation, Windstream Holdings’ investment in its consolidated subsidiaries are presented under the equity method of accounting. Amounts reflected in these condensed parent company financial statements for investment and affiliated related balances and equity earnings from subsidiaries have been adjusted to account for the effects of the telecommunications network assets, long-term lease obligation, depreciation expense, principal and interest payments on the long-term lease obligation and related income tax effects that are also included in the net income and equity of Windstream Services. Equity income (losses) from subsidiaries for 2015 includes $89.1 million of intercompany income related to the CS&L spin transactions. On April 24, 2015, Windstream Holdings amended its certificate of incorporation to decrease the number of authorized shares of common stock from 1.0 billion to 166.7 million and enacted a one-for-six reverse stock split with respect to all outstanding shares of common stock which became effective April 26, 2015. Share data of Windstream Holdings has been retrospectively adjusted to reflect the decrease in authorized shares and the reverse stock split. The condensed parent company financial statements should be read in conjunction with the consolidated financial statements and notes of Windstream Holdings and subsidiaries included in the Financial Supplement to this Annual Report on Form 10-K. |
Background and Basis for Pres38
Background and Basis for Presentation: Revision to Prior Period Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Revision to Prior Period Financial Statements [Abstract] | |
Schedule of Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Table Text Block] | The following table presents the effect of the revisions to Windstream Holdings’ consolidated statements of operations for the years ended December 31: 2014 2013 (Millions) As Previously Reported Effect of Revision As Revised As Previously Reported Effect of Revision As Revised Cost of services $ 2,719.3 $ 54.0 $ 2,773.3 $ 2,492.1 $ 49.1 $ 2,541.2 Selling, general and administrative $ 983.8 $ (54.0 ) $ 929.8 $ 923.4 $ (49.1 ) $ 874.3 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies and Changes: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies and New Accounting Pronouncements [Abstract] | |
Property, Plant and Equipment Disclosure | Net property, plant and equipment consisted of the following as of December 31: (Millions) Depreciable Lives 2015 2014 Land $ 43.4 $ 44.3 Building and improvements 3-40 years 604.9 655.5 Central office equipment 3-40 years 6,013.9 5,750.4 Outside communications plant 7-47 years 7,245.3 6,906.6 Furniture, vehicles and other equipment 3-23 years 1,660.2 1,616.0 Construction in progress 527.6 365.2 16,095.3 15,338.0 Less accumulated depreciation (10,815.5 ) (9,925.7 ) Net property, plant and equipment $ 5,279.8 $ 5,412.3 |
Available-for-sale Securities [Table Text Block] | Information pertaining to this investment at December 31, 2015 was as follows: (Millions) Cost Fair Value Carrying Value Unrealized Loss CS&L common stock $835.7 $549.2 $549.2 $(286.5) |
Reconciliation of Earnings Per Share | A reconciliation of net income (loss) and number of shares used in computing basic and diluted earnings (loss) per share was as follows for the years ended December 31: (Millions, except per share amounts) 2015 2014 2013 Basic and diluted earnings (loss) per share: Numerator: Income (loss) from continuing operations $ 27.4 $ (39.5 ) $ 235.0 Income from continuing operations allocable to participating securities (3.5 ) (5.0 ) (4.1 ) Adjusted income (loss) from continuing operations attributable to common shares 23.9 (44.5 ) 230.9 Income from discontinued operations (a) — — 6.0 Net income (loss) attributable to common shares $ 23.9 $ (44.5 ) $ 236.9 Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 102.0 100.3 98.8 Weighted average participating securities (3.1 ) (0.8 ) (0.6 ) Weighted average basic and diluted shares outstanding 98.9 99.5 98.2 Basic and diluted earnings (loss) per share: From continuing operations $.24 ($.45 ) $2.35 From discontinued operations — — .06 Net income (loss) $.24 ($.45 ) $2.41 (a) None of the income from discontinued operations was allocable to participating securities in 2013. |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets: Goodwill and Other Intangible Assets: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows: (Millions) Balance at December 31, 2014 $ 4,352.8 Dispositions during the period: Consumer CLEC business transferred to CS&L in conjunction with the spin-off (a) (12.8 ) Data center business sold to TierPoint (a) (126.4 ) Balance at December 31, 2015 $ 4,213.6 (a) |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Goodwill assigned to our four operating segments was as follows: (Millions) Consumer and Small Business - ILEC $ 2,321.2 Carrier 1,176.4 Enterprise 598.0 Small Business - CLEC 118.0 Total goodwill $ 4,213.6 The following table summarizes our segment results for the years ended December 31: (Millions) 2015 2014 2013 Consumer and Small Business - ILEC: Revenues and sales $ 1,605.5 $ 1,644.4 $ 1,667.4 Costs and expenses 671.0 696.9 725.0 Segment income 934.5 947.5 942.4 Carrier: Revenues 687.9 729.7 779.1 Costs and expenses 185.6 172.5 176.5 Segment income 502.3 557.2 602.6 Enterprise: Revenues and sales 2,067.2 2,003.0 1,937.0 Costs and expenses 1,826.6 1,757.4 1,677.3 Segment income 240.6 245.6 259.7 Small Business - CLEC: Revenues 559.0 658.3 765.5 Costs and expenses 378.2 408.7 465.6 Segment income 180.8 249.6 299.9 Total segment revenues and sales 4,919.6 5,035.4 5,149.0 Total segment costs and expenses 3,061.4 3,035.5 3,044.4 Total segment income $ 1,858.2 $ 1,999.9 $ 2,104.6 |
Schedule of Finite-Lived Intangible Assets | Intangible assets were as follows at December 31: 2015 2014 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (286.1 ) $ 999.0 $ 1,285.1 $ (243.3 ) $ 1,041.8 Customer lists (a) 1,791.7 (1,304.7 ) 487.0 1,914.0 (1,203.4 ) 710.6 Cable franchise rights 17.3 (6.8 ) 10.5 17.3 (5.7 ) 11.6 Other (b) 9.6 (1.4 ) 8.2 — — — Balance $ 3,103.7 $ (1,599.0 ) $ 1,504.7 $ 3,216.4 $ (1,452.4 ) $ 1,764.0 |
Schedule of Finite-Lived Intangible Assets, Methodology and Estimated Useful Life | Intangible asset amortization methodology and useful lives were as follows as of December 31, 2015 : Intangible Assets Amortization Methodology Estimated Useful Life Franchise rights straight-line 30 years Customer lists sum of years digits 9 - 15 years Cable franchise rights straight-line 15 years Other straight-line 3 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the years ended December 31 : Year (Millions) 2016 $ 185.3 2017 158.7 2018 131.9 2019 104.8 2020 86.4 Thereafter 837.6 Total $ 1,504.7 |
Long-term Debt and Lease Obli41
Long-term Debt and Lease Obligations: (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Long-term Debt and Capital Lease Obligations [Abstract] | ||
Schedule of Long-term Debt Instruments | Long-term debt was as follows at December 31: (Millions) 2015 2014 Issued by Windstream Services: Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 (a) $ — $ 344.3 Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 (a) — 255.0 Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 (a) — 1,318.1 Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 578.2 584.1 Senior secured credit facility, Revolving line of credit – variable rates, due 300.0 625.0 Debentures and notes, without collateral: 2017 Notes – 7.875%, due November 1, 2017 (b) 904.1 1,100.0 2018 Notes – 8.125%, due September 1, 2018 — 400.0 2020 Notes – 7.750%, due October 15, 2020 700.0 700.0 2021 Notes – 7.750%, due October 1, 2021 (b) 920.4 950.0 2022 Notes – 7.500%, due June 1, 2022 (b) 485.9 500.0 2023 Notes – 7.500%, due April 1, 2023 (b) 540.1 600.0 2023 Notes – 6.375%, due August 1, 2023 700.0 700.0 Issued by subsidiaries of the Company: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 100.0 100.0 Cinergy Communications Company – 6.58%, due January 1, 2022 — 1.9 Debentures and notes, without collateral: PAETEC 2018 Notes – 9.875%, due December 1, 2018 — 450.0 Premium on long-term debt, net (c) 4.6 23.3 Unamortized debt issuance costs (c) (62.8 ) (87.7 ) 5,170.5 8,564.0 Less current maturities (5.9 ) (717.5 ) Total long-term debt $ 5,164.6 $ 7,846.5 Weighted average interest rate 6.8 % 6.5 % Weighted maturity 5.3 years 5.1 years | |
Schedule of Maturities of Long-term Debt | Maturities for long-term debt outstanding as of December 31, 2015 , excluding $4.6 million of unamortized net premium and $62.8 million of unamortized debt issuance costs, were as follows for the years ended December 31: Year (Millions) 2016 $ 5.9 2017 910.0 2018 5.9 2019 560.5 2020 1,000.0 Thereafter 2,746.4 Total $ 5,228.7 | |
Schedule of Current and Noncurrent Other Lease Obligations [Table Text Block] | A summary of the current and noncurrent portions of the long-term lease obligations was as follows: December 31, 2015 December 31, 2014 (Millions) Current Noncurrent Total Current Noncurrent Total Assets Subject to Leaseback: Telecommunications network assets $ 152.7 $ 4,927.7 $ 5,080.4 $ — $ — $ — Real estate contributed to pension plan — 72.7 72.7 — 81.0 81.0 Total $ 152.7 $ 5,000.4 $ 5,153.1 $ — $ 81.0 $ 81.0 | |
Schedule of Extinguishment of Debt | The net loss on extinguishment of debt was as follows for the year ended December 31 : (Millions) 2015 Senior secured credit facility borrowings: Premium on early redemption $ (6.6 ) Third-party fees for early redemption (0.7 ) Unamortized debt issuance costs on original issuance (8.6 ) Loss on early extinguishment of senior secured credit facility borrowings (15.9 ) 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 ) 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 ) Partial repurchase of 2017, 2021, 2022 and 2023 Notes: Discount on early repurchase 10.9 Unamortized net discount on original issuance (0.7 ) Unamortized debt issuance costs on original issuance (3.2 ) Gain on early extinguishment of partial repurchase of 2017, 7.0 Cinergy Communications Company Notes: Premium on early redemption (0.5 ) Loss on early extinguishment of Cinergy Communication Company Notes (0.5 ) Total loss on early extinguishment of debt $ (36.4 ) | The loss on extinguishment of debt was as follows for the year ended December 31 : (Millions) 2013 2019 Notes: Premium on early redemption $ (13.6 ) Third-party fees for early redemption (0.5 ) Unamortized debt issuance costs on original issuance (0.6 ) Loss on early extinguishment for 2019 Notes (14.7 ) Senior secured credit facility: Unamortized debt issuance costs on original issuance (2.5 ) Loss on early extinguishment for senior secured credit (2.5 ) PAETEC 2017 Notes: Premium on early redemption (51.5 ) Third-party fees for early redemption (1.0 ) Unamortized premium on original issuance 41.2 Loss on early extinguishment for PAETEC 2017 Notes (11.3 ) Total loss on early extinguishment of debt $ (28.5 ) |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under capital lease obligations were as follows for the years ended December 31: Year (Millions) 2016 $ 48.2 2017 13.0 2018 0.6 2019 0.6 2020 0.5 Thereafter 1.2 Total future payments 64.1 Less: Amounts representing interest 2.9 Present value of minimum lease payments $ 61.2 | |
Interest Expense, Net Disclosure | Interest expense was as follows for the years ended December 31: (Millions) 2015 2014 2013 Interest expense - long-term debt $ 442.0 $ 539.9 $ 584.7 Interest expense - long-term lease obligations: Telecommunications network assets 351.6 — — Real estate contributed to pension plan 6.7 2.8 — Impact of interest rate swaps 20.5 29.0 48.0 Interest on capital leases and other 2.8 3.8 2.9 Less capitalized interest expense (10.4 ) (3.7 ) (7.9 ) Total interest expense $ 813.2 $ 571.8 $ 627.7 | |
Schedule of Future Minimum Lease Payments for Other Lease Obligations [Table Text Block] | Undiscounted future minimum payments during the initial terms of the leases were as follows for the years ended December 31: (Millions) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan Total Year 2016 $ 653.6 $ 6.0 $ 659.6 2017 653.5 6.2 659.7 2018 655.4 6.3 661.7 2019 658.9 6.5 665.4 2020 662.2 6.7 668.9 Thereafter 6,328.5 76.3 6,404.8 Total $ 9,612.1 $ 108.0 $ 9,720.1 |
Derivatives Schedule of Derivat
Derivatives Schedule of Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Set forth below is information related to our interest rate swap agreements: (Millions, except for percentages) 2015 2014 Designated portion, measured at fair value Other assets $ — $ 0.4 Other current liabilities $ 18.3 $ 28.5 Other non-current liabilities $ 33.4 $ 48.7 Accumulated other comprehensive (loss) income $ (0.9 ) $ 4.9 De-designated portion, unamortized value Accumulated other comprehensive loss $ (0.2 ) $ (8.8 ) Weighted average fixed rate paid 2.99 % 3.57 % Variable rate received 0.35 % 0.16 % |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Changes in the value of these derivative instruments were as follows for the years ended December 31: (Millions) 2015 2014 2013 Changes in fair value of effective portion, net of tax (a) $ (5.4 ) $ (14.3 ) $ 17.4 Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) $ 7.1 $ 9.8 $ 22.2 (a) Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. |
Offsetting Assets | Information pertaining to derivative assets was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Recognized Assets Net Amount of Assets presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2014: Interest rate swaps $ 0.4 $ 0.4 $ (0.3 ) $ — $ 0.1 |
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 December 31, 2015: Interest rate swaps $ 51.7 $ 51.7 $ — $ — $ 51.7 December 31, 2014: Interest rate swaps $ 77.2 $ 77.2 $ (0.3 ) $ — $ 76.9 |
Fair Value Measurements_ (Table
Fair Value Measurements: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of cash equivalents and interest rate swaps | December 31: (Millions) 2015 2014 Recorded at Fair Value in the Financial Statements: Investment in CS&L common stock - Level 1 $ 549.2 $ — Derivatives: Interest rate swap assets - Level 2 $ — $ 0.4 Interest rate swap liabilities - Level 2 $ 51.7 $ 77.2 Not Recorded at Fair Value in the Financial Statements: (a) Long-term debt, including current maturities - Level 2 $ 4,452.7 $ 8,777.5 (a) Recognized at carrying value of $5,233.3 million and $8,651.7 million in long-term debt, including current maturities, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of December 31, 2015 and 2014 , respectively. The fair value of CS&L common stock is 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. |
Employee Benefit Plans and Po44
Employee Benefit Plans and Postretirement Benefits: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) and postretirement benefits income were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (Millions) 2015 2014 2013 2015 2014 2013 Benefits earned during the year $ 9.5 $ 8.2 $ 10.5 $ — $ — $ — Interest cost on benefit obligation 53.2 58.9 52.5 1.3 1.3 1.4 Net actuarial loss (gain) 8.7 128.6 (110.4 ) — — — Amortization of net actuarial loss — — — 1.0 0.1 1.7 Amortization of prior service credit (0.1 ) (0.1 ) (0.1 ) (3.8 ) (5.8 ) (8.6 ) Plan curtailments and settlements — — — (18.0 ) (11.5 ) (32.2 ) Expected return on plan assets (70.1 ) (67.3 ) (67.8 ) — — — Net periodic benefit expense (income) $ 1.2 $ 128.3 $ (115.3 ) $ (19.5 ) $ (15.9 ) $ (37.7 ) |
Summary of plan assets, projected benefit obligation and funded status of the plans | A summary of plan assets, projected benefit obligation and funded status of the plans (including executive retirement agreements) were as follows at December 31: Pension Benefits Postretirement Benefits (Millions) 2015 2014 2015 2014 Fair value of plan assets at beginning of year $ 1,042.0 $ 959.7 $ 0.3 $ 0.3 Actual return on plan assets (1.6 ) 144.6 — — Employer contributions 0.9 89.9 2.5 3.8 Participant contributions — — 4.3 0.4 Benefits paid (a) (74.7 ) (65.6 ) (6.7 ) (4.2 ) Settlements (b) — (86.6 ) — — Fair value of plan assets at end of year $ 966.6 $ 1,042.0 $ 0.4 $ 0.3 Projected benefit obligation at beginning of year $ 1,331.8 $ 1,210.6 $ 30.6 $ 31.4 Interest cost on projected benefit obligations 53.2 58.9 1.3 1.3 Service costs 9.5 8.2 — — Participant contributions — — 4.3 0.4 Plan amendments (1.4 ) — (0.4 ) (0.2 ) Actuarial (gain) loss (62.9 ) 206.3 (0.1 ) 3.4 Benefits paid (a) (74.7 ) (65.6 ) (6.7 ) (4.2 ) Settlements (b) — (86.6 ) — (1.5 ) Projected benefit obligation at end of year $ 1,255.5 $ 1,331.8 $ 29.0 $ 30.6 Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: Current liabilities $ (1.9 ) $ (0.8 ) $ (2.1 ) $ (2.3 ) Noncurrent liabilities (287.0 ) (289.0 ) (26.5 ) (28.0 ) Funded status recognized in the consolidated balance sheets $ (288.9 ) $ (289.8 ) $ (28.6 ) $ (30.3 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss $ — $ — $ (4.7 ) $ (5.8 ) Prior service credits 1.8 0.5 7.8 29.2 Net amount recognized in accumulated other comprehensive income $ 1.8 $ 0.5 $ 3.1 $ 23.4 (a) During 2015 and 2014 , pension benefits paid from Windstream’s assets totaled $0.9 million and $0.8 million , respectively. All postretirement benefits in both years were paid from Windstream’s assets. (b) In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan, during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream. Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension benefit as of December 2014. All lump-sum payments were made from existing plan assets. |
Pension And Other Postretirement Benefits, Expected Amortization Of Accumulated Other Comprehensive Income, Disclosure | Estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit (income) expense in 2016, including executive retirement agreements, are as follows: (Millions) Pension Benefits Postretirement Benefits Net actuarial loss $ — $ 0.5 Prior service credits $ (0.3 ) $ (1.7 ) |
Pension and Other Postretirement Benefits, Net Periodic Benefit Costs Weighted Average Assumptions Disclosure | Actuarial assumptions used to calculate pension and postretirement benefits (income) expense were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (a) (Millions) 2015 2014 2013 2015 2014 2013 Discount rate 4.14 % 5.01 % 3.85 % 4.21 % 4.76 % 3.87 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % 2.00 % — % — % — % (a) As a result of the various remeasurements of our postretirement benefit obligations previously discussed, key assumptions including the discount rate were updated as of each remeasurement date. |
Benefit Obligations Weighted Average Assumptions Disclosure | Actuarial assumptions used to calculate the projected benefit obligations were as follows at December 31: Pension Benefits Postretirement Benefits 2015 2014 2015 2014 Discount rate 4.55 % 4.14 % 4.67 % 4.21 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % — % — % |
Health Care Cost Trend Rates Assumptions Disclosure | Information regarding the healthcare cost trend rate was as follows for the years ended December 31: 2015 2014 Healthcare cost trend rate assumed for next year 7.00 % 7.50 % Rate that the cost trend ultimately declines to 5.00 % 5.00 % Year that the rate reaches the terminal rate 2024 2020 |
Weighted-Average Allocation of Assets Related to Defined Benefit Plans Disclosure | The asset allocation for our pension plan by asset category was as follows for the years ended December 31: Target Allocation Percentage of Plan Assets Asset Category 2016 2015 2014 Equity securities 18.6% - 30.6% 23.3 % 26.9 % Fixed income securities 41.7% - 68.7% 53.4 % 53.9 % Alternative investments 13.7% - 23.7% 21.8 % 18.2 % Money market and other short-term interest bearing securities 0.0% - 4.0% 1.5 % 1.0 % 100.0 % 100.0 % |
Schedule of Defined Benefit Plans Disclosures | The fair values of our pension plan assets were determined using the following inputs as of December 31, 2015 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund (a) $ 70.1 $ — $ 70.1 $ — Guaranteed annuity contract (b) 1.1 — — 1.1 Common collective trust funds (c) 255.4 — 255.4 — Government and agency securities (d) 281.5 — 281.5 — Corporate bonds and asset backed securities (d) 30.9 — 30.9 — Common and preferred stocks - domestic (d) 40.0 39.9 — 0.1 Common and preferred stocks - international (d) 23.1 23.1 — — Derivative financial instruments (e) 19.0 — 19.0 — Hedge fund of funds (f) 62.0 — — 62.0 Mutual fund (d) 61.0 61.0 — — Real estate and private equity funds (g) 145.6 — — 145.6 Other (h) 0.8 0.8 — — Total investments $ 990.5 $ 124.8 $ 656.9 $ 208.8 Dividends and interest receivable 5.2 Pending trades and other liabilities (29.1 ) Total plan assets $ 966.6 The fair values of our pension plan assets were determined using the following inputs as of December 31, 2014 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund (a) $ 42.4 $ — $ 42.4 $ — Guaranteed annuity contract (b) 1.4 — — 1.4 Common collective trust funds (c) 330.8 — 330.8 — Government and agency securities (d) 285.6 — 285.6 — Corporate bonds and asset backed securities (d) 34.4 — 34.4 — Common and preferred stocks - domestic (d) 54.8 54.7 — 0.1 Common and preferred stocks - international (d) 25.3 25.3 — — Derivative financial instruments (e) 16.9 — 16.9 — Hedge fund of funds (f) 61.9 — — 61.9 Mutual fund (d) 66.7 66.7 — — Real estate and private equity funds (g) 138.2 — — 138.2 Other (h) 0.6 0.6 — — Total investments $ 1,059.0 $ 147.3 $ 710.1 $ 201.6 Dividends and interest receivable 3.7 Pending trades and other liabilities (20.7 ) Total plan assets $ 1,042.0 8. Employee Benefit Plans and Postretirement Benefits, Continued: (a) The money market fund is based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. (b) The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. (c) Units in common collective trust funds are valued by reference to the funds’ underlying assets and are based on the net asset value as reported by the fund manager on the last business day of the Plan year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. (d) Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued at their quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. (e) Derivative financial instruments consist primarily of swaps and are valued at fair value based on models that reflect the contractual terms of the instruments. Inputs include primarily observable market information, such as swap curves, benchmark yields, rating updates and interdealer broker quotes at the end of the Plan year. (f) Hedge fund of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined by the fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. (g) The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. (h) Other investments consists of investments in foreign currency, which are valued at their quoted market price on the last day of the Plan year. |
Pension Plan Assets, Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value using significant unobservable input: (Millions) Domestic equities Hedge fund of funds Real estate and private equity funds Guaranteed annuity contract Total Balance at December 31, 2013 $ 0.1 $ 60.2 $ 52.8 $ 1.9 $ 115.0 Gains related to plan assets sold during the year — — 0.9 — 0.9 Gains on plan assets still held at year-end — 1.7 5.7 0.1 7.5 Purchases and sales, net — — 78.8 (0.6 ) 78.2 Transfers in and/or out of level 3 — — — — — Balance at December 31, 2014 0.1 61.9 138.2 1.4 201.6 Gains related to plan assets sold during the year — — 1.0 — 1.0 Gains on plan assets still held at year-end — 0.1 10.7 0.1 10.9 Purchases and sales, net — — (4.3 ) (0.4 ) (4.7 ) Transfers in and/or out of level 3 — — — — — Balance at December 31, 2015 $ 0.1 $ 62.0 $ 145.6 $ 1.1 $ 208.8 |
Pension and Other Postretirement Benefits, Expected Benefit Payments Disclosure | Estimated future employer contributions, benefit payments, including executive retirement agreements, are as follows as of December 31, 2015 : (Millions) Pension Benefits Postretirement Benefits Expected employer contributions in 2016 $ 1.9 $ 2.1 Expected benefit payments: 2016 $ 79.8 $ 2.1 2017 82.3 2.0 2018 81.2 1.8 2019 82.1 1.7 2020 83.8 1.5 2021-2025 417.8 6.8 |
Share-Based Compensation Plan45
Share-Based Compensation Plans: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity | The vesting periods and grant date fair value for restricted stock and restricted stock units issued was as follows for the years ended December 31: (Number of shares in thousands, dollars in millions) 2015 2014 2013 Vest ratably over a three-year service period 2,739.2 488.2 375.7 Vest ratably over a two-year service period — 3.1 11.4 Vest variably over a three-year service period 62.6 41.2 31.0 Vest contingently over a three-year performance period 283.4 196.1 131.1 Vest one year from date of grant, service based - granted to non-employee directors 73.7 20.2 13.6 Vest two years from date of grant, service based 6.9 — — Vest three years from date of grant, service based 381.1 31.6 — Total granted 3,546.9 780.4 562.8 Grant date fair value $ 37.1 $ 39.3 $ 32.6 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Restricted stock and restricted stock unit activity for the year ended December 31, 2015 was as follows: (Thousands) Underlying Number of Shares Weighted Average Fair Value Per Share Non-vested at December 31, 2014 978.0 $ 53.68 Granted 3,546.9 $ 10.46 Vested (529.7 ) $ 45.07 Forfeited (442.1 ) $ 25.76 Non-vested at December 31, 2015 3,553.1 $ 15.29 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
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 for the years ended December 31: (Millions) 2015 2014 2013 Restricted stock, restricted units and stock options $ 25.0 $ 22.1 $ 26.8 Employee savings plan (See Note 8) 19.3 18.3 18.1 Management incentive compensation plans 11.0 1.4 — Share-based compensation expense $ 55.3 $ 41.8 $ 44.9 |
Merger, Integration and Restr46
Merger, Integration and Restructuring Charges: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Merger Integration and Restructuring Charges [Abstract] | |
Schedule of Merger, Integration and Restructuring Activities | The following is a summary of the merger, integration and restructuring charges recorded for the years ended December 31: (Millions) 2015 2014 2013 Merger and integration costs Information technology conversion costs $ 7.5 $ 20.8 $ 17.3 Costs related to REIT spin-off (See Note 3) 65.1 15.5 — Costs related to sale of data center business 10.3 — — Network optimization and conversion costs 5.9 — — Consulting and other costs 6.2 4.1 12.9 Total merger and integration costs 95.0 40.4 30.2 Restructuring charges 20.7 35.9 8.6 Total merger, integration and restructuring charges $ 115.7 $ 76.3 $ 38.8 |
Schedule of Restructuring and Reorganization Costs (Benefits), Net | The following is a summary of the activity related to the liabilities associated with our merger, integration and restructuring charges at December 31: (Millions) 2015 2014 Balance, beginning of period $ 11.2 $ 14.0 Merger, integration and restructuring charges 115.7 76.3 Cash outlays during the period (121.8 ) (79.1 ) Balance, end of period $ 5.1 $ 11.2 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive (loss) income balances, net of tax, were as follows for the years ended December 31: (Millions) 2015 2014 2013 Pension and postretirement plans $ 2.8 $ 14.5 $ 26.4 Unrealized holding loss on available-for-sale securities (286.5 ) — — Unrealized holding (losses) gains on interest rate swaps Designated portion (0.6 ) 3.1 17.4 De-designated portion (0.1 ) (5.5 ) (15.3 ) Accumulated other comprehensive (loss) income $ (284.4 ) $ 12.1 $ 28.5 |
Changes in accumulated other comprehensive income, net of tax | Changes in accumulated other comprehensive (loss) income balances, net of tax, were as follows: (Millions) Unrealized Holding Loss on Available-for-Sale Securities Net Losses on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2014 $ — $ (2.4 ) $ 14.5 $ 12.1 Other comprehensive (loss) income before reclassifications (286.5 ) (5.4 ) 1.2 (290.7 ) Amounts reclassified from other accumulated comprehensive income (loss) (a) — 7.1 (12.9 ) (5.8 ) Balance at December 31, 2015 $ (286.5 ) $ (0.7 ) $ 2.8 $ (284.4 ) (a) See separate table below for details about these reclassifications. |
Reclassifications out of accumulated other comprehensive income | Reclassifications out of accumulated other comprehensive (loss) income were as follows for the years ended December 31: Details about Accumulated Other Comprehensive (Loss) Income Components (Millions) Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Consolidated Statements of Operations 2015 2014 2013 Losses on interest rate swaps: Amortization of unrealized losses on de-designated interest rate swaps $ 11.6 $ 15.8 $ 35.9 Interest expense 11.6 15.8 35.9 Income (loss) from continuing operations before income taxes (4.5 ) (6.0 ) (13.7 ) Income tax expense (benefit) 7.1 9.8 22.2 Net income (loss) Pension and postretirement plans: Plan curtailment (18.0 ) (10.0 ) (31.8 ) (a) Amortization of net actuarial loss 1.0 0.1 1.7 (a) Amortization of prior service credits (3.9 ) (5.9 ) (8.7 ) (a) (20.9 ) (15.8 ) (38.8 ) Income (loss) from continuing operations before income taxes 8.0 6.1 14.7 Income tax expense (benefit) (12.9 ) (9.7 ) (24.1 ) Net income (loss) Total reclassifications for the period, net of tax $ (5.8 ) $ 0.1 $ (1.9 ) Net income (loss) (a) These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit (income) expense (See Note 8). |
Income Taxes_ Income Taxes_ (Ta
Income Taxes: Income Taxes: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure Table | Income tax expense (benefit) was as follows for the years ended December 31: (Millions) 2015 2014 2013 Current: Federal $ 9.1 $ 0.8 $ (27.0 ) State 23.2 (12.5 ) (2.5 ) 32.3 (11.7 ) (29.5 ) Deferred: Federal 15.0 (18.3 ) 104.0 State (31.3 ) 4.9 30.8 (16.3 ) (13.4 ) 134.8 Income tax expense (benefit) $ 16.0 $ (25.1 ) $ 105.3 |
Income Tax Rate Reconciliation | Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state income taxes, were as follows for the years ended December 31: 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) State income taxes, net of federal benefit 4.0 4.7 3.3 Adjust deferred taxes for state net operating loss carryforward 16.0 — (0.1 ) Transaction costs 18.7 (8.0 ) — Tax refunds — 7.3 — Valuation allowance (48.4 ) (15.4 ) (0.3 ) Income tax reserves 12.2 (0.4 ) (5.4 ) Research and development credit (8.4 ) 12.1 (2.2 ) Adjustment of deferred taxes for legal entity restructuring 6.8 — — Disallowed loss — (2.9 ) — Tax credits (1.0 ) 2.2 — Other items, net 2.0 4.3 0.6 Effective income tax rate 36.9 % 38.9 % 30.9 % |
Components of Deferred Tax Assets and Liabilities | The significant components of the net deferred income tax liability (asset) were as follows at December 31: (Millions) 2015 2014 Property, plant and equipment $ 1,472.8 $ 1,146.7 Goodwill and other intangible assets 1,295.8 1,312.8 Operating loss and credit carryforward (462.5 ) (604.0 ) Postretirement and other employee benefits (120.1 ) (121.8 ) Unrealized holding loss and interest rate swaps (5.2 ) (5.3 ) Deferred compensation (4.9 ) (5.7 ) Bad debt (25.1 ) (32.1 ) Long-term lease obligations (1,993.7 ) (30.8 ) Deferred debt costs (2.0 ) (12.9 ) Restricted stock (9.7 ) (8.5 ) Other, net (5.9 ) 39.9 139.5 1,678.3 Valuation allowance 147.9 94.9 Deferred income taxes, net $ 287.4 $ 1,773.2 Deferred tax assets $ (2,670.6 ) $ (898.0 ) Deferred tax liabilities 2,958.0 2,671.2 Deferred income taxes, net $ 287.4 $ 1,773.2 |
Unrecognized Tax Benefits Reconciliation, Table | We account for uncertainty in taxes in accordance with authoritative guidance. A reconciliation of the unrecognized tax benefits is as follows: (Millions) 2015 2014 2013 Beginning balance $ 5.6 $ 4.6 $ 18.3 Additions based on tax positions related to current year 5.0 2.3 2.7 Additions based on tax positions of prior years — — 0.7 Reductions for tax positions of prior years (0.5 ) (0.1 ) (0.2 ) Reduction as a result of a lapse of the applicable statute of limitations — (0.2 ) (16.9 ) Settlements — (1.0 ) — Ending balance $ 10.1 $ 5.6 $ 4.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure | Minimum rental commitments for all non-cancellable operating leases, consisting principally of leases for network facilities, real estate, office space and office equipment were as follows as of December 31, 2015 : Year (Millions) 2016 $ 113.4 2017 85.2 2018 73.3 2019 56.2 2020 38.3 Thereafter 130.7 Total $ 497.1 |
Segment Information_ (Tables)
Segment Information: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Goodwill assigned to our four operating segments was as follows: (Millions) Consumer and Small Business - ILEC $ 2,321.2 Carrier 1,176.4 Enterprise 598.0 Small Business - CLEC 118.0 Total goodwill $ 4,213.6 The following table summarizes our segment results for the years ended December 31: (Millions) 2015 2014 2013 Consumer and Small Business - ILEC: Revenues and sales $ 1,605.5 $ 1,644.4 $ 1,667.4 Costs and expenses 671.0 696.9 725.0 Segment income 934.5 947.5 942.4 Carrier: Revenues 687.9 729.7 779.1 Costs and expenses 185.6 172.5 176.5 Segment income 502.3 557.2 602.6 Enterprise: Revenues and sales 2,067.2 2,003.0 1,937.0 Costs and expenses 1,826.6 1,757.4 1,677.3 Segment income 240.6 245.6 259.7 Small Business - CLEC: Revenues 559.0 658.3 765.5 Costs and expenses 378.2 408.7 465.6 Segment income 180.8 249.6 299.9 Total segment revenues and sales 4,919.6 5,035.4 5,149.0 Total segment costs and expenses 3,061.4 3,035.5 3,044.4 Total segment income $ 1,858.2 $ 1,999.9 $ 2,104.6 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The following table reconciles total segment revenue and sales to total consolidated revenue and sales for the years ended December 31: (Millions) 2015 2014 2013 Total segment revenues and sales $ 4,919.6 $ 5,035.4 $ 5,149.0 Regulatory and other operating revenues and sales 714.5 639.6 695.3 Revenue and sales related to disposed businesses 131.2 154.5 143.8 Total consolidated revenues and sales $ 5,765.3 $ 5,829.5 $ 5,988.1 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table reconciles segment income to consolidated net income (loss) for the years ended December 31: (Millions) 2015 2014 2013 Total segment income $ 1,858.2 $ 1,999.9 $ 2,104.6 Revenues and sales related to disposed businesses 131.2 154.5 143.8 Regulatory and other operating revenues and sales 714.5 639.6 695.3 Depreciation and amortization 1,366.5 1,386.4 1,340.9 Other unassigned operating expenses 739.7 798.9 502.2 Operating expenses related to disposed businesses 88.3 101.6 91.6 Other income (expense), net 57.5 0.1 (12.5 ) Gain on sale of data center business 326.1 — — Loss on early extinguishment of debt (36.4 ) — (28.5 ) Interest expense (813.2 ) (571.8 ) (627.7 ) Income tax expense (benefit) 16.0 (25.1 ) 105.3 Discontinued operations — — 6.0 Net income (loss) $ 27.4 $ (39.5 ) $ 241.0 |
Supplemental Guarantor Inform51
Supplemental Guarantor Information: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statement of Comprehensive Income (Loss) | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Millions) For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the period of August 30, 2013 (date of formation) to December 31, 2013 Operating revenues: Leasing income from subsidiaries $ 446.0 $ — $ — Total operating revenues 446.0 — — Costs and expenses: Selling, general and administrative 2.0 2.3 0.5 Depreciation expense 239.7 — — Total costs and expenses 241.7 2.3 0.5 Operating income (loss) 204.3 (2.3 ) (0.5 ) Interest expense on long-term lease obligation with CS&L (351.6 ) — — Loss before income taxes and equity in subsidiaries (147.3 ) (2.3 ) (0.5 ) Income tax benefit (57.0 ) (0.9 ) (0.2 ) Loss before equity in subsidiaries (90.3 ) (1.4 ) (0.3 ) Equity earnings (losses) from subsidiaries 117.7 (38.1 ) 137.6 Net income (loss) $ 27.4 $ (39.5 ) $ 137.3 Comprehensive (loss) income $ (269.1 ) $ (55.9 ) $ 134.4 Condensed Consolidating Statement of Comprehensive (Loss) Income For the Year Ended December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,153.6 $ 4,470.6 $ (25.6 ) $ 5,598.6 Product sales — 145.3 21.4 — 166.7 Total revenues and sales — 1,298.9 4,492.0 (25.6 ) 5,765.3 Costs and expenses: Cost of services — 490.7 2,293.5 (22.2 ) 2,762.0 Cost of products sold — 125.0 20.2 — 145.2 Selling, general and administrative — 184.0 683.9 (3.4 ) 864.5 Depreciation and amortization 18.3 333.4 1,014.8 — 1,366.5 Merger and integration costs — — 95.0 — 95.0 Restructuring charges — 9.4 11.3 — 20.7 Total costs and expenses 18.3 1,142.5 4,118.7 (25.6 ) 5,253.9 Operating (loss) income (18.3 ) 156.4 373.3 — 511.4 Earnings (losses) from consolidated subsidiaries 239.6 (149.9 ) (7.8 ) (81.9 ) — Other income, net 45.7 0.8 11.0 — 57.5 Gain on sale of data center business — — 326.1 — 326.1 Loss on early extinguishment of debt (30.7 ) (5.3 ) (0.4 ) — (36.4 ) Intercompany interest income (expense) 115.9 (46.5 ) (69.4 ) — — Interest expense (440.1 ) (122.0 ) (251.1 ) — (813.2 ) (Loss) income before income taxes (87.9 ) (166.5 ) 381.7 (81.9 ) 45.4 Income tax (benefit) expense (116.5 ) (16.9 ) 150.2 — 16.8 Net income (loss) $ 28.6 $ (149.6 ) $ 231.5 $ (81.9 ) $ 28.6 Comprehensive (loss) income $ (267.9 ) $ (149.6 ) $ 231.5 $ (81.9 ) $ (267.9 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive (Loss) Income For the Year Ended December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,176.0 $ 4,496.6 $ (25.0 ) $ 5,647.6 Product sales — 154.7 27.2 — 181.9 Total revenues and sales — 1,330.7 4,523.8 (25.0 ) 5,829.5 Costs and expenses: Cost of services — 517.0 2,277.0 (20.7 ) 2,773.3 Cost of products sold — 131.2 25.4 — 156.6 Selling, general and administrative — 165.7 766.1 (4.3 ) 927.5 Depreciation and amortization 21.9 337.5 1,027.0 — 1,386.4 Merger and integration costs — — 40.4 — 40.4 Restructuring charges — 8.1 27.8 — 35.9 Total costs and expenses 21.9 1,159.5 4,163.7 (25.0 ) 5,320.1 Operating (loss) income (21.9 ) 171.2 360.1 — 509.4 Earnings (losses) from consolidated subsidiaries 217.3 (210.3 ) 4.0 (11.0 ) — Other (expenses) income, net (0.2 ) 162.9 (162.6 ) — 0.1 Intercompany interest income (expense) 127.2 (53.7 ) (73.5 ) — — Interest expense (523.9 ) (44.8 ) (3.1 ) — (571.8 ) (Loss) income before income taxes (201.5 ) 25.3 124.9 (11.0 ) (62.3 ) Income tax (benefit) expense (163.4 ) 99.8 39.4 — (24.2 ) Net (loss) income $ (38.1 ) $ (74.5 ) $ 85.5 $ (11.0 ) $ (38.1 ) Comprehensive (loss) income $ (54.5 ) $ (74.5 ) $ 85.5 $ (11.0 ) $ (54.5 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) For the Year Ended December 31, 2013 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 1,222.9 $ 4,583.0 $ (30.4 ) $ 5,775.5 Product sales — 182.6 30.0 — 212.6 Total revenues and sales — 1,405.5 4,613.0 (30.4 ) 5,988.1 Costs and expenses: Cost of services — 476.2 2,090.6 (25.6 ) 2,541.2 Cost of products sold — 143.5 40.4 — 183.9 Selling, general and administrative — 141.9 736.7 (4.8 ) 873.8 Depreciation and amortization 25.0 325.4 990.5 — 1,340.9 Merger and integration costs — — 30.2 — 30.2 Restructuring charges — 2.1 6.5 — 8.6 Total costs and expenses 25.0 1,089.1 3,894.9 (30.4 ) 4,978.6 Operating (loss) income (25.0 ) 316.4 718.1 — 1,009.5 Earnings (losses) from consolidated subsidiaries 526.1 (62.0 ) 121.6 (585.7 ) — Other income (expense), net 2.1 168.3 (182.9 ) — (12.5 ) Loss on early extinguishment of debt (17.2 ) (11.3 ) — — (28.5 ) Intercompany interest income (expense) 134.5 (61.1 ) (73.4 ) — — Interest (expense) income (584.6 ) (46.7 ) 3.6 — (627.7 ) Income from continuing operations before income taxes 35.9 303.6 587.0 (585.7 ) 340.8 Income tax (benefit) expense (205.4 ) 150.2 160.7 — 105.5 Income from continuing operations 241.3 153.4 426.3 (585.7 ) 235.3 Discontinued operations — — 6.0 — 6.0 Net income $ 241.3 $ 153.4 $ 432.3 $ (585.7 ) $ 241.3 Comprehensive income $ 263.4 $ 153.4 $ 432.3 $ (585.7 ) $ 263.4 |
Condensed Consolidating Balance Sheet | BALANCE SHEETS (Millions, except par value) Assets 2015 2014 Current Assets: Distributions receivable from Windstream Services $ 15.1 $ 152.4 Total current assets 15.1 152.4 Investment and affiliate related balances 2,009.5 224.8 Net property, plant and equipment 2,301.3 — Deferred income taxes 1,076.0 — Total Assets $ 5,401.9 $ 377.2 Liabilities and Shareholders’ Equity Current liabilities: Accrued dividends $ 15.1 $ 152.4 Current portion of long-term lease obligation 152.7 — Total current liabilities 167.8 152.4 Long-term lease obligation 4,927.7 — Total liabilities 5,095.5 152.4 Shareholders’ Equity: Common stock, $0.0001 par value, 166.7 shares authorized, 96.7 and 100.5 shares issued and outstanding — — Additional paid-in capital 602.9 252.2 Accumulated other comprehensive (loss) income (284.4 ) 12.1 Accumulated deficit (12.1 ) (39.5 ) Total shareholders’ equity 306.4 224.8 Total Liabilities and Shareholders’ Equity $ 5,401.9 $ 377.2 Condensed Consolidating Balance Sheet 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 (less allowance for doubtful accounts of $33.1) — 218.6 425.3 — 643.9 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 619.1 2,435.4 (3,054.5 ) — Inventories — 69.1 10.4 — 79.5 Prepaid expenses and other 321.8 32.4 64.6 (298.2 ) 120.6 Total current assets 321.8 945.1 2,969.2 (3,360.8 ) 875.3 Investments in consolidated subsidiaries 6,332.3 320.4 242.7 (6,895.4 ) — Notes receivable - affiliate — 314.1 — (314.1 ) — Goodwill 1,636.7 1,343.0 1,233.9 — 4,213.6 Other intangibles, net 554.3 282.8 667.6 — 1,504.7 Net property, plant and equipment 8.4 1,241.3 4,030.1 — 5,279.8 Investment in CS&L common stock 549.2 — — — 549.2 Deferred income taxes — 301.2 215.3 (516.5 ) — Other assets 14.2 56.3 25.0 — 95.5 Total Assets $ 9,416.9 $ 4,804.2 $ 9,383.8 $ (11,086.8 ) $ 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 — 92.9 337.2 — 430.1 Affiliates payable, net 3,069.6 — — (3,054.5 ) 15.1 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 26.3 167.6 — 193.9 Accrued taxes 0.3 11.9 370.1 (298.2 ) 84.1 Accrued interest 75.3 1.9 1.2 — 78.4 Other current liabilities 42.6 47.5 216.8 — 306.9 Total current liabilities 3,193.7 224.9 1,206.0 (3,357.5 ) 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 25.1 419.3 — 492.2 Total liabilities 9,110.5 1,804.7 5,484.6 (4,188.1 ) 12,211.7 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 600.3 3,128.2 848.0 (3,976.2 ) 600.3 Accumulated other comprehensive (loss) income (284.4 ) — 2.8 (2.8 ) (284.4 ) (Accumulated deficit) retained earnings (9.5 ) (168.1 ) 2,966.5 (2,798.4 ) (9.5 ) Total equity 306.4 2,999.5 3,899.2 (6,898.7 ) 306.4 Total Liabilities and Equity $ 9,416.9 $ 4,804.2 $ 9,383.8 $ (11,086.8 ) $ 12,518.1 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet As of December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ — $ 3.8 $ 50.0 $ (26.0 ) $ 27.8 Restricted cash 6.7 — — — 6.7 Accounts receivable (less allowance for doubtful accounts of $43.4) — 266.5 369.0 — 635.5 Notes receivable - affiliate — 4.8 — (4.8 ) — Affiliates receivable, net — 969.0 2,155.6 (3,124.6 ) — Inventories — 56.2 7.5 — 63.7 Prepaid expenses and other 35.5 32.4 96.7 — 164.6 Total current assets 42.2 1,332.7 2,678.8 (3,155.4 ) 898.3 Investments in consolidated subsidiaries 10,001.3 747.9 232.4 (10,981.6 ) — Notes receivable - affiliate — 317.7 — (317.7 ) — Goodwill 1,649.5 1,469.4 1,233.9 — 4,352.8 Other intangibles, net 590.7 355.2 818.1 — 1,764.0 Net property, plant and equipment 9.8 1,329.5 4,073.0 — 5,412.3 Other assets 16.7 37.2 39.0 — 92.9 Total Assets $ 12,310.2 $ 5,589.6 $ 9,075.2 $ (14,454.7 ) $ 12,520.3 Liabilities and Equity Current Liabilities: Current maturities of long-term debt $ 717.4 $ — $ 0.1 $ — $ 717.5 Accounts payable 2.1 113.0 288.2 — 403.3 Affiliates payable, net 3,277.0 — — (3,124.6 ) 152.4 Notes payable - affiliate — — 4.8 (4.8 ) — Advance payments and customer deposits — 36.5 178.2 — 214.7 Accrued taxes 0.2 25.0 70.0 — 95.2 Accrued interest 94.3 5.8 2.4 — 102.5 Other current liabilities 60.8 26.5 270.1 — 357.4 Total current liabilities 4,151.8 206.8 813.8 (3,129.4 ) 2,043.0 Long-term debt 7,275.9 568.9 1.7 — 7,846.5 Long-term lease obligations — 24.0 57.0 — 81.0 Notes payable - affiliate — — 317.7 (317.7 ) — Deferred income taxes 591.2 193.1 988.9 — 1,773.2 Other liabilities 66.5 28.2 457.1 — 551.8 Total liabilities 12,085.4 1,021.0 2,636.2 (3,447.1 ) 12,295.5 Commitments and Contingencies (See Note 14) Equity: Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 250.8 4,370.0 3,426.9 (7,796.9 ) 250.8 Accumulated other comprehensive income 12.1 — 14.5 (14.5 ) 12.1 (Accumulated deficit) retained earnings (38.1 ) 159.2 2,915.7 (3,074.9 ) (38.1 ) Total equity 224.8 4,568.6 6,439.0 (11,007.6 ) 224.8 Total Liabilities and Equity $ 12,310.2 $ 5,589.6 $ 9,075.2 $ (14,454.7 ) $ 12,520.3 |
Condensed Consolidating Statement of Cash Flows | STATEMENTS OF CASH FLOWS (Millions) For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the period of August 30, 2013 (date of formation) to December 31, 2013 Cash Provided from Operations: Net income (loss) $ 27.4 $ (39.5 ) $ 137.3 Adjustments to reconcile net income (loss) to net cash provided from operations: Equity (earnings) losses from subsidiaries (117.7 ) 38.1 (137.6 ) Depreciation expense 239.7 — — Deferred income taxes (56.2 ) — — Changes in operating assets and liabilities, net: Other current assets — — (0.1 ) Net cash provided from (used in) operating activities 93.2 (1.4 ) (0.4 ) Cash Flows from Investing Activities: Additions to property, plant and equipment (43.1 ) — — Net cash used in investing activities (43.1 ) — — Cash Flows from Financing Activities: Distributions from Windstream Services 416.6 603.6 149.4 Funding received from CS&L 43.1 — — Dividends paid to shareholders (369.2 ) (602.2 ) (149.0 ) Stock repurchases (46.2 ) — — Payments under long-term lease obligation (94.4 ) — — Net cash (used in) provided from financing activities (50.1 ) 1.4 0.4 Change in cash and cash equivalents — — — Cash and Cash Equivalents: Beginning of period — — — End of period $ — $ — $ — Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (337.4 ) $ 256.1 $ 1,109.1 $ — $ 1,027.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (1.0 ) (180.4 ) (873.9 ) — (1,055.3 ) Changes in restricted cash 6.7 — — — 6.7 Grant funds received for broadband stimulus projects 23.5 — — — 23.5 Network expansion funded by Connect America Fund - Phase 1 — (18.6 ) (55.3 ) — (73.9 ) Disposition of data center business — — 574.2 — 574.2 Other, net (9.6 ) 0.1 12.3 — 2.8 Net cash provided from (used in) investing activities 19.6 (198.9 ) (342.7 ) — (522.0 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (416.6 ) — — — (416.6 ) Payment received from CS&L in spin-off 1,035.0 — — — 1,035.0 Funding received from CS&L for tenant capital improvements — 19.6 23.5 — 43.1 Repayments of debt and swaps (2,898.9 ) (450.0 ) (2.0 ) — (3,350.9 ) Proceeds of debt issuance 2,335.0 — — — 2,335.0 Debt issuance costs (4.3 ) — — — (4.3 ) Intercompany transactions, net 277.1 406.7 (706.5 ) 22.7 — Payments under long-term lease obligations — (35.6 ) (67.0 ) — (102.6 ) Payments under capital lease obligations — (4.2 ) (27.3 ) — (31.5 ) Other, net (9.5 ) 3.6 (3.6 ) — (9.5 ) Net cash provided from (used in) financing activities 317.8 (59.9 ) (782.9 ) 22.7 (502.3 ) Decrease in cash and cash equivalents — (2.7 ) (16.5 ) 22.7 3.5 Cash and Cash Equivalents: Beginning of period — 3.8 50.0 (26.0 ) 27.8 End of period $ — $ 1.1 $ 33.5 $ (3.3 ) $ 31.3 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (129.2 ) $ 448.1 $ 1,149.8 $ — $ 1,468.7 Cash Flows from Investing Activities: Additions to property, plant and equipment (1.8 ) (116.6 ) (668.1 ) — (786.5 ) Broadband network expansion funded by stimulus grants — (0.3 ) (13.0 ) — (13.3 ) Changes in restricted cash 3.0 — — — 3.0 Grant funds received for broadband stimulus projects 33.2 — — — 33.2 Grant funds received from Connect America Fund - Phase 1 — 9.4 16.6 — 26.0 Network expansion funded by Connect America Fund - Phase 1 — (1.3 ) (11.5 ) — (12.8 ) Acquisition of a business (22.6 ) — — — (22.6 ) Other, net — — 3.9 — 3.9 Net cash provided from (used in) investing activities 11.8 (108.8 ) (672.1 ) — (769.1 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (603.6 ) — — — (603.6 ) Repayments of debt and swaps (1,394.4 ) — (1.0 ) — (1,395.4 ) Proceeds of debt issuance 1,315.0 — — — 1,315.0 Intercompany transactions, net 795.9 (341.6 ) (428.3 ) (26.0 ) — Payments under capital lease obligations — (0.6 ) (26.2 ) — (26.8 ) Other, net (9.2 ) 3.6 (3.6 ) — (9.2 ) Net cash provided from (used in) financing activities 103.7 (338.6 ) (459.1 ) (26.0 ) (720.0 ) (Decrease) increase in cash and cash equivalents (13.7 ) 0.7 18.6 (26.0 ) (20.4 ) Cash and Cash Equivalents: Beginning of period 13.7 3.1 31.4 — 48.2 End of period $ — $ 3.8 $ 50.0 $ (26.0 ) $ 27.8 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Provided from Operations: Net cash (used in) provided from operations $ (186.2 ) $ 509.9 $ 1,196.1 $ — $ 1,519.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (2.0 ) (157.5 ) (681.5 ) — (841.0 ) Broadband network expansion funded by stimulus grants — (4.9 ) (31.2 ) — (36.1 ) Changes in restricted cash 15.3 — 1.5 — 16.8 Grant funds received for broadband stimulus projects 68.0 — — — 68.0 Grant funds received from Connect America Fund - Phase 1 — 21.9 38.8 — 60.7 Disposition of software business — — 30.0 — 30.0 Other, net — — (6.0 ) — (6.0 ) Net cash provided from (used in) investing activities 81.3 (140.5 ) (648.4 ) — (707.6 ) Cash Flows from Financing Activities: Dividends paid to shareholders (444.6 ) — — — (444.6 ) Distributions to Windstream Holdings, Inc. (149.4 ) — — — (149.4 ) Repayments of debt and swaps (4,500.9 ) (650.0 ) (10.1 ) — (5,161.0 ) Proceeds of debt issuance 4,919.6 — — — 4,919.6 Debt issuance costs (30.0 ) — — — (30.0 ) Intercompany transactions, net 273.1 276.3 (549.4 ) — Payments under capital lease obligations — (1.3 ) (22.6 ) — (23.9 ) Other, net (6.7 ) 3.6 (3.6 ) — (6.7 ) Net cash provided from (used in) financing activities 61.1 (371.4 ) (585.7 ) — (896.0 ) Decrease in cash and cash equivalents (43.8 ) (2.0 ) (38.0 ) — (83.8 ) Cash and Cash Equivalents: Beginning of period 57.5 5.1 69.4 — 132.0 End of period $ 13.7 $ 3.1 $ 31.4 $ — $ 48.2 |
Discontinued Operations_ (Table
Discontinued Operations: (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations, Supplemental Disclosures | The following table summarizes the results of the software business which has been separately presented as discontinued operations in the accompanying consolidated statements of operations for the year ended December 31, 2013: (Millions) Revenues and sales $ 16.9 Operating income from discontinued operations 1.4 Gain on sale of discontinued operations 14.4 Income before tax from discontinued operations 15.8 Income tax expense 9.8 Net income from discontinued operations $ 6.0 |
Quarterly Financial Informati53
Quarterly Financial Information - (Unaudited): Quarterly Financial Information - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | For the Year Ended December 31, 2015 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,765.3 $ 1,427.0 $ 1,498.6 $ 1,421.1 $ 1,418.6 Operating income $ 509.4 $ 131.7 $ 178.5 $ 79.3 $ 119.9 Net income (loss) $ 27.4 $ 140.5 $ (7.2 ) $ (111.2 ) $ 5.3 Basic and diluted earnings (loss) per share: (a) Net income (loss) $.24 $1.41 ($.08 ) ($1.13 ) $.05 For the Year Ended December 31, 2014 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,829.5 $ 1,443.1 $ 1,455.5 $ 1,466.0 $ 1,464.9 Operating income $ 507.1 $ 20.5 $ 151.6 $ 167.2 $ 167.8 Net (loss) income $ (39.5 ) $ (77.5 ) $ 8.0 $ 14.0 $ 16.0 Basic and diluted (loss) earnings per share: (a) Net (loss) income ($.45 ) ($.80 ) $.07 $.13 $.15 (a) Quarterly earnings (loss) per share amounts may not add to full-year earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. |
Schedule I - Condensed Financ54
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Total operating revenues | $ 4,919.6 | $ 5,035.4 | $ 5,149 | |||||||||
Selling, general and administrative | 866.5 | 929.8 | 874.3 | |||||||||
Depreciation | 1,146.3 | 1,130.3 | 1,049.7 | |||||||||
Total costs and expenses | 5,255.9 | 5,322.4 | 4,979.1 | |||||||||
Operating (loss) income | $ 131.7 | $ 178.5 | $ 79.3 | $ 119.9 | $ 20.5 | $ 151.6 | $ 167.2 | $ 167.8 | 509.4 | 507.1 | 1,009 | |
Loss before income taxes and equity in subsidiaries | 43.4 | (64.6) | 340.3 | |||||||||
Income tax expense (benefit) | 16 | (25.1) | 105.3 | |||||||||
Net income (loss) | 140.5 | (7.2) | (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | 27.4 | (39.5) | 241 | |
Comprehensive (loss) income | (269.1) | (55.9) | 263.1 | |||||||||
Winstream Holdings, Inc. [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Leasing income from subsidiaries | $ 0 | 446 | 0 | |||||||||
Total operating revenues | 0 | 446 | 0 | |||||||||
Selling, general and administrative | 0.5 | 2 | 2.3 | |||||||||
Depreciation | 0 | 239.7 | 0 | |||||||||
Total costs and expenses | 0.5 | 241.7 | 2.3 | |||||||||
Operating (loss) income | (0.5) | 204.3 | (2.3) | |||||||||
Loss before income taxes and equity in subsidiaries | (0.5) | (147.3) | (2.3) | |||||||||
Income tax expense (benefit) | (0.2) | (57) | (0.9) | |||||||||
Loss before equity in subsidiaries | (0.3) | (90.3) | (1.4) | |||||||||
Equity (losses) earnings from subsidiaries | 137.6 | 117.7 | (38.1) | |||||||||
Net income (loss) | 137.3 | 27.4 | (39.5) | |||||||||
Comprehensive (loss) income | $ 134.4 | (269.1) | (55.9) | |||||||||
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Interest expense on long-term lease obligation with CS&L | $ (127.4) | $ (128.2) | $ (96) | (351.6) | 0 | 0 | ||||||
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | Winstream Holdings, Inc. [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Interest expense on long-term lease obligation with CS&L | $ (351.6) | $ 0 | $ 0 |
Schedule I - Condensed Financ55
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Total current assets | $ 875.3 | $ 898.3 | ||
Property, Plant and Equipment, Net | 5,279.8 | 5,412.3 | ||
Total Assets | 12,518.1 | 12,520.3 | ||
Accrued dividends | 15.1 | 152.4 | ||
Current portion of long-term lease obligations | 152.7 | 0 | ||
Total current liabilities | 1,267.1 | 2,043 | ||
Long-term lease obligations | 5,000.4 | 81 | ||
Total liabilities | 12,211.7 | 12,295.5 | ||
Common stock, $0.0001 par value, 166.7 shares authorized, 96.7 and 100.5 shares issued and outstanding, respectively | 0 | 0 | ||
Additional paid-in capital | 602.9 | 252.2 | ||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | $ 28.5 | |
Accumulated deficit | (12.1) | (39.5) | ||
Total shareholders’ equity | 306.4 | 224.8 | $ 840.2 | $ 1,104.8 |
Total Liabilities and Shareholders' Equity | 12,518.1 | 12,520.3 | ||
Winstream Holdings, Inc. [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Distributions receivable from Windstream Services | 15.1 | 152.4 | ||
Total current assets | 15.1 | 152.4 | ||
Investments in Affiliate | 2,009.5 | 224.8 | ||
Property, Plant and Equipment, Net | 2,301.3 | 0 | ||
Deferred Tax Assets, Net, Noncurrent | 1,076 | 0 | ||
Total Assets | 5,401.9 | 377.2 | ||
Accrued dividends | 15.1 | 152.4 | ||
Current portion of long-term lease obligations | 152.7 | 0 | ||
Total current liabilities | 167.8 | 152.4 | ||
Long-term lease obligations | 4,927.7 | 0 | ||
Total liabilities | 5,095.5 | 152.4 | ||
Common stock, $0.0001 par value, 166.7 shares authorized, 96.7 and 100.5 shares issued and outstanding, respectively | 0 | 0 | ||
Additional paid-in capital | 602.9 | 252.2 | ||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | ||
Accumulated deficit | (12.1) | (39.5) | ||
Total shareholders’ equity | 306.4 | 224.8 | ||
Total Liabilities and Shareholders' Equity | $ 5,401.9 | $ 377.2 |
Schedule I - Condensed Financ56
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Statement of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 30, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||||
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | $ 27.4 | $ (39.5) | $ 241 | ||
Depreciation | 1,146.3 | 1,130.3 | 1,049.7 | ||||||||||
Deferred Income Tax Expense (Benefit) | (16.3) | (13.4) | 134.8 | ||||||||||
Net cash (used in) provided from operations | 1,026.6 | 1,467.3 | 1,519.4 | ||||||||||
Additions to property, plant and equipment | (1,055.3) | (786.5) | (841) | ||||||||||
Net cash provided from (used in) investing activities | (522) | (769.1) | (707.6) | ||||||||||
Funding received from CS&L for tenant capital improvements | 43.1 | 0 | 0 | ||||||||||
Dividends paid to shareholders | (369.2) | (602.2) | (593.6) | ||||||||||
Stock repurchases | (46.2) | 0 | 0 | ||||||||||
Payments under long-term lease obligations | (102.6) | 0 | 0 | ||||||||||
Net cash provided from (used in) financing activities | (501.1) | (718.6) | (895.6) | ||||||||||
(Decrease) increase in cash and cash equivalents | 3.5 | (20.4) | (83.8) | ||||||||||
Cash and Cash Equivalents: | |||||||||||||
Cash and cash equivalents | 31.3 | 27.8 | 27.8 | 48.2 | $ 48.2 | 27.8 | 48.2 | 132 | |||||
Beginning of period | 27.8 | 48.2 | 27.8 | 48.2 | 132 | ||||||||
End of period | 31.3 | 27.8 | 48.2 | 31.3 | 27.8 | 48.2 | |||||||
Winstream Holdings, Inc. [Member] | |||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||||
Net income (loss) | 137.3 | 27.4 | (39.5) | ||||||||||
Equity earnings (losses) from subsidiaries | (137.6) | (117.7) | 38.1 | ||||||||||
Depreciation | 0 | 239.7 | 0 | ||||||||||
Deferred Income Tax Expense (Benefit) | 0 | (56.2) | 0 | ||||||||||
Increase (Decrease) in Other Current Assets | (0.1) | 0 | 0 | ||||||||||
Net cash (used in) provided from operations | (0.4) | 93.2 | (1.4) | ||||||||||
Additions to property, plant and equipment | 0 | (43.1) | 0 | ||||||||||
Net cash provided from (used in) investing activities | 0 | (43.1) | 0 | ||||||||||
Distributions from Windstream Services | 149.4 | 416.6 | 603.6 | ||||||||||
Funding received from CS&L for tenant capital improvements | 0 | 43.1 | 0 | ||||||||||
Dividends paid to shareholders | (149) | (369.2) | (602.2) | ||||||||||
Stock repurchases | 0 | (46.2) | 0 | ||||||||||
Payments under long-term lease obligations | 0 | (94.4) | 0 | ||||||||||
Net cash provided from (used in) financing activities | 0.4 | (50.1) | 1.4 | ||||||||||
(Decrease) increase in cash and cash equivalents | 0 | 0 | 0 | ||||||||||
Cash and Cash Equivalents: | |||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $ 0 | ||||
Beginning of period | $ 0 | $ 0 | 0 | 0 | |||||||||
End of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Financ57
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Background and Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Apr. 26, 2015 | Apr. 24, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 100.00% | |||
Common stock, shares authorized | 166,700,000 | 166,700,000 | ||
Windstream Holdings, Inc. [Domain] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, shares authorized, Pre-Reverse Stock Split | 1,000,000,000 | |||
Common stock, shares authorized | 166,700,000 | |||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net book value of Network Assets transferred to CS&L | $ 2,500 | |||
Intercompany Income Related to the Spin-Off Transaction | $ 89.1 |
Schedule II - Valuation and Q58
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Allowance for doubtful accounts, customers and others: | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at Beginning of Period | $ 43.4 | $ 40 | $ 42.6 | ||||
Additions Charged to Cost and Expenses | 47.1 | 54.8 | 63.5 | ||||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | [1] | 57.4 | 51.4 | 66.1 | |||
Balance at End of Period | 33.1 | 43.4 | 40 | ||||
Valuation allowance for deferred tax assets: | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at Beginning of Period | 94.9 | 84.9 | 85.9 | ||||
Additions Charged to Cost and Expenses | 3.8 | 10 | 7.1 | ||||
Additions Charged to Other Accounts | 75.4 | [2] | 0 | 0 | |||
Deductions | 26.2 | [3] | 0 | 8.1 | [4] | ||
Balance at End of Period | 147.9 | 94.9 | 84.9 | ||||
Accrued liabilities related to merger, integration and restructuring charges: | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at Beginning of Period | 11.2 | 14 | 20.1 | ||||
Additions Charged to Cost and Expenses | 115.7 | [5] | 76.3 | [6] | 38.8 | [7] | |
Additions Charged to Other Accounts | 0 | 0 | 0 | ||||
Deductions | [8] | 121.8 | 79.1 | 44.9 | |||
Balance at End of Period | $ 5.1 | $ 11.2 | $ 14 | ||||
[1] | Accounts charged off net of recoveries of amounts previously written off. | ||||||
[2] | Reflects adjustment to valuation allowances on net operating loss carryforwards due to the effects of the REIT spin-off, which was charged to additional paid-in capital. | ||||||
[3] | Reduction of valuation allowances on net operating loss carryforwards due to the effects of the reorganization of certain subsidiaries to limited liability companies completed during the first quarter of 2015. | ||||||
[4] | Reversal of valuation allowances on net operating loss carryforwards realized due to the sale of Pinnacle Software Company and on capital loss carryforwards realized as a result of capital gains recognized. | ||||||
[5] | Costs primarily consist of charges incurred related to the REIT spin-off, the sale of our data center business and charges related to 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 PAETEC acquisition. Restructuring charges primarily include severance and other employee benefit costs resulting from workforce reductions completed during the year and costs incurred related to a special shareholder meeting. | ||||||
[6] | Costs primarily consist of charges for various information technology conversions, consulting fees and other expenses incurred related to the REIT spin-off and severance and other employee benefit costs resulting from workforce reductions completed during the year. | ||||||
[7] | Costs primarily represent charges related to information technology conversions and network efficiency projects. | ||||||
[8] | Represents cash outlays for merger, integration and restructuring costs. |
Background and Basis for Pres59
Background and Basis for Presentation: (Details) | Apr. 26, 2015shares | Dec. 31, 2015route_milesshares | Dec. 31, 2014shares |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 100.00% | ||
Common stock, shares authorized | 166,700,000 | 166,700,000 | |
Local and long-haul fiber network | route_miles | 125,000 | ||
Windstream Holdings, Inc. [Domain] | |||
Common stock, shares authorized, Pre-Reverse Stock Split | 1,000,000,000 | ||
Common stock, shares authorized | 166,700,000 | ||
Number of WIndstream Holdings, Inc. Common Shares After Reverse Stock Split | 1 | 1 | |
Common stock, shares outstanding | 6 | 6 |
Background and Basis for Pres60
Background and Basis for Presentation: Revision to Prior Period Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Selling, general and administrative | $ 866.5 | $ 929.8 | $ 874.3 | |
Cost of services | 2,762 | 2,773.3 | 2,541.2 | |
Total shareholders’ equity | 306.4 | 224.8 | 840.2 | $ 1,104.8 |
Scenario, Previously Reported [Member] | Cost of services | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 2,719.3 | 2,492.1 | ||
Scenario, Previously Reported [Member] | Selling, general and administrative [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 983.8 | 923.4 | ||
Restatement Adjustment [Member] | Cost of services | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 54 | 49.1 | ||
Restatement Adjustment [Member] | Selling, general and administrative [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (54) | (49.1) | ||
Common Stock and Additional Paid-In Capital | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Total shareholders’ equity | 602.9 | 252.2 | 811.7 | 1,098.4 |
Common Stock and Additional Paid-In Capital | Scenario, Previously Reported [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Total shareholders’ equity | 212.7 | |||
Retained Earnings (Accumulated Deficit) | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Total shareholders’ equity | $ (12.1) | (39.5) | $ 0 | $ 0 |
Retained Earnings (Accumulated Deficit) | Scenario, Previously Reported [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Total shareholders’ equity | 0 | |||
Retained Earnings (Accumulated Deficit) | Restatement Adjustment [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 39.5 |
Net Property, Plant and Equipme
Net Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 43.4 | $ 44.3 |
Building and improvements | 604.9 | 655.5 |
Central office equipment | 6,013.9 | 5,750.4 |
Outside communications plant | 7,245.3 | 6,906.6 |
Furniture, vehicles and other equipment | 1,660.2 | 1,616 |
Construction in progress | 527.6 | 365.2 |
Gross property, plant and equipment | 16,095.3 | 15,338 |
Less accumulated depreciation | (10,815.5) | (9,925.7) |
Net property, plant and equipment | $ 5,279.8 | $ 5,412.3 |
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 | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Jun. 30, 2015 | [2] | Mar. 31, 2015 | [2] | Dec. 31, 2014 | [2] | Sep. 30, 2014 | [2] | Jun. 30, 2014 | [2] | Mar. 31, 2014 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Numerator: | ||||||||||||||||||||||
Income (loss) from continuing operations | $ 27.4 | $ (39.5) | $ 235 | |||||||||||||||||||
Income from continuing operations allocable to participating securities | (3.5) | (5) | (4.1) | |||||||||||||||||||
Adjusted income (loss) from continuing operations attributable to common shares | 23.9 | (44.5) | 230.9 | |||||||||||||||||||
Income from discontinued operations (a) | 0 | 0 | 6 | [1] | ||||||||||||||||||
Net income (loss) attributable to common shares | $ 23.9 | $ (44.5) | $ 236.9 | |||||||||||||||||||
Basic and diluted shares outstanding | ||||||||||||||||||||||
Weighted average shares outstanding | 102 | 100.3 | 98.8 | |||||||||||||||||||
Weighted average participating securities | (3.1) | (0.8) | (0.6) | |||||||||||||||||||
Weighted average basic and diluted shares outstanding | 98.9 | 99.5 | 98.2 | |||||||||||||||||||
From continuing operations | $ 0.24 | $ (0.45) | $ 2.35 | |||||||||||||||||||
From discontinued operations | 0 | 0 | 0.06 | |||||||||||||||||||
Net income (loss) | $ 1.41 | $ (0.08) | $ (1.13) | $ 0.05 | $ (0.80) | $ 0.07 | $ 0.13 | $ 0.15 | $ 0.24 | [2] | $ (0.45) | [2] | $ 2.41 | |||||||||
[1] | None of the income from discontinued operations was allocable to participating securities in 2013. | |||||||||||||||||||||
[2] | Quarterly earnings (loss) per share amounts may not add to full-year earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. |
Summary of Significant Accoun63
Summary of Significant Accounting Policies and Changes: Investment in CS&L Common Stock (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 835.7 | |
Fair Value | 549.2 | |
Carrying Value | 549.2 | $ 0 |
Unrealized Loss | $ (286.5) |
Summary of Significant Accoun64
Summary of Significant Accounting Policies and Changes: (Details) shares in Millions | Nov. 01, 2015segmentunits | Apr. 24, 2015USD ($) | Oct. 30, 2015USD ($) | Dec. 31, 2015USD ($)statesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Jan. 01, 2014units | Dec. 05, 2013USD ($) | |
Significant Accounting Policies [Line Items] | |||||||||
Reductions in Proceeds from Divestiture of Business | $ 800,000 | ||||||||
Net property, plant and equipment | $ 5,279,800,000 | $ 5,412,300,000 | |||||||
Economic life of assets funded by Broadband Stimulus Grants | 23 years | ||||||||
Gain on sale of data center business | $ 326,100,000 | 0 | $ 0 | ||||||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax | (500,000) | (17,600,000) | (19,100,000) | ||||||
Number of Reportable Segments | segment | 4 | ||||||||
Unbilled Contracts Receivable | $ 41,500,000 | 40,200,000 | |||||||
Percentage of Receivable Broadband Stimulus Recorded to Construction in Progress | 75.00% | ||||||||
Percentage of Broadband Stimulus as Investment in Property, Plant and Equipment | 25.00% | ||||||||
Total authorized Connect America Fund Support | $ 86,700,000 | ||||||||
Number of Reporting Units to Test for Impairment | units | 5 | 3 | |||||||
Goodwill, Impairment Loss | $ 0 | ||||||||
Depreciation expense | 1,146,300,000 | 1,130,300,000 | 1,049,700,000 | ||||||
Interest Costs Capitalized | 10,400,000 | 3,700,000 | 7,900,000 | ||||||
Asset retirement obligation | 53,100,000 | 53,400,000 | |||||||
Advertising expense | $ 52,900,000 | $ 59,500,000 | $ 42,400,000 | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 0.5 | 0.5 | 0.7 | ||||||
Estimated Annual Connect America Fund Phase II Support | $ 175,000,000 | ||||||||
Number of Years of Connect America Fund Phase II Funding | 6 years | ||||||||
Eligible locations for Connect America Fund Phase II Support | 400,000 | ||||||||
Number of States Accepted Connect America Funding | states | 17 | ||||||||
Number of States Incumbent Provider | states | 18 | ||||||||
Number of States Declined Connect America Fund Phase II Funding | states | 1 | ||||||||
Unamortized Debt Issuance Expense | [1] | $ (62,800,000) | $ (87,700,000) | ||||||
Other assets | 95,500,000 | 92,900,000 | |||||||
Long-term debt | 5,164,600,000 | 7,846,500,000 | |||||||
Deferred income taxes | 287,400,000 | 1,773,200,000 | |||||||
Software Business | PAETEC Holding Corp. | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Proceeds from sale of acquired assets | $ 30,000,000 | ||||||||
Other current liabilities | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Amount of Connect America Fund Support Phase 1 - Received | 53,900,000 | ||||||||
Other noncurrent liabilities | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Amount of Connect America Fund Support Phase 1 - Received | $ 20,000,000 | ||||||||
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Long-term Lease Obligation, Lease Terms | 15 years | ||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Repayments of Debt | $ 3,200,000,000 | ||||||||
Net property, plant and equipment | $ 2,400,000,000 | ||||||||
Scenario, Previously Reported [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Other assets | 180,600,000 | ||||||||
Long-term debt | 7,934,200,000 | ||||||||
Deferred Tax Assets, Net of Valuation Allowance, Current | 105,400,000 | ||||||||
Deferred income taxes | $ 1,878,600,000 | ||||||||
[1] | The net premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. |
Summary of Significant Accoun65
Summary of Significant Accounting Policies and Changes: Summary of Significant Accounting Policies and Changes (Phantom) (Details) - USD ($) shares in Millions | 10 Months Ended | 12 Months Ended | ||
Oct. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 | 0.5 | 0.7 | |
Goodwill, Impairment Loss | $ 0 | |||
Minimum | Building and improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum | Central office equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum | Outside communications plant | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Minimum | Furniture, vehicles and other equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum | Building and improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Maximum | Central office equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Maximum | Outside communications plant | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 47 years | |||
Maximum | Furniture, vehicles and other equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 23 years | |||
Customer lists (a) | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization Methodology | sum of years digits | |||
Customer lists (a) | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 9 years | |||
Customer lists (a) | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Completion of Spin-off of Cer66
Completion of Spin-off of Certain Network and Real Estate Assets: (Details) | Apr. 24, 2015USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 31, 2013derivative | Oct. 17, 2012derivative |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Spin-off transaction date | Apr. 24, 2015 | |||||
Dividends, Cash | $ 231,500,000 | $ 602,900,000 | $ 595,500,000 | |||
Number of swaps terminated | 7 | |||||
Derivative, Number of Instruments Held | derivative | 4 | |||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net book value of Network Assets transferred to CS&L | $ 2,500,000,000 | |||||
Percent of REIT Shares Distributed | 80.40% | |||||
Dividends, Cash | $ 1,035,000,000 | |||||
REIT debt issued to Windstream Services, LLC. | $ 2,500,000,000 | |||||
Number of Shares, Stock Dividend Ratio, REIT | shares | 1 | |||||
Number of Shares, Stock Dividend Ratio, Windstream Holdings, Inc. | shares | 5 | |||||
Costs Associated with Debt Exchange | $ 35,400,000 | |||||
Costs associated with Termination of Swaps | $ 22,700,000 | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.60% | |||||
Windstream Holdings, Inc. [Domain] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Senior Notes | $ 1,700,000,000 | |||||
Real Estate Investment Trust [Member] [Domain] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Senior Notes | 2,140,000,000 | |||||
Unsecured Debt [Member] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Debt Issued to Windstream | 1,077,300,000 | |||||
Unsecured Debt [Member] | Real Estate Investment Trust [Member] [Domain] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Notes Payable | $ 1,110,000,000 | |||||
Interest rate | 8.25% | |||||
Secured Debt | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Debt Issued to Windstream | $ 400,000,000 | |||||
Secured Debt | Real Estate Investment Trust [Member] [Domain] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Notes Payable | $ 400,000,000 | |||||
Interest rate | 6.00% | |||||
Term Loans [Member] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Debt Issued to Windstream | $ 970,200,000 | |||||
Revolving Line of Credit, Due 2020 [Member] | Line of Credit | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Repayments of Lines of Credit | $ 752,200,000 | |||||
Interest Rate Swap | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Derivative, Number of Instruments Held | 3 | 6 | ||||
Interest Rate Swap | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Derivative, Number of Instruments Held | 10 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets: Schedule of Goodwill (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Goodwill [Roll Forward] | ||
Balance, Beginning of Period | $ 4,352.8 | |
Balance, End of Period | 4,213.6 | |
Consumer CLEC Business [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Written off Related to Sale of Business Unit | (12.8) | [1] |
Data Center Business [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Written off Related to Sale of Business Unit | $ (126.4) | [1] |
[1] | Represents the portion of historical goodwill allocated to the disposed businesses. |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets: Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 4,213.6 | $ 4,352.8 |
Consumer and Small Business - ILEC [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 2,321.2 | |
Carrier [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 1,176.4 | |
Enterprise [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 598 | |
Small Business - CLEC [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 118 |
Intangible Assets (Details)
Intangible Assets (Details) | Nov. 01, 2015segment | Oct. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 18, 2015USD ($) | Apr. 24, 2015USD ($) | |
Goodwill and Other Intangible Assets [Abstract] | ||||||||
Number of Reportable Segments | segment | 4 | |||||||
Goodwill, Impairment Loss | $ 0 | |||||||
Amortization expense for intangible assets subject to amortization | $ 220,200,000 | $ 256,100,000 | $ 291,200,000 | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | 3,103,700,000 | 3,216,400,000 | ||||||
Accumulated Amortization | (1,599,000,000) | (1,452,400,000) | ||||||
Net Carrying Value | 1,504,700,000 | 1,764,000,000 | ||||||
Franchise rights | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | 1,285,100,000 | 1,285,100,000 | ||||||
Accumulated Amortization | (286,100,000) | (243,300,000) | ||||||
Net Carrying Value | $ 999,000,000 | 1,041,800,000 | ||||||
Finite-Lived Intangible Asset, Useful Life | 30 years | |||||||
Customer lists (a) | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | $ 1,791,700,000 | [1] | 1,914,000,000 | |||||
Accumulated Amortization | (1,304,700,000) | [1] | (1,203,400,000) | |||||
Net Carrying Value | 487,000,000 | [1] | 710,600,000 | |||||
Cable franchise rights | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | 17,300,000 | 17,300,000 | ||||||
Accumulated Amortization | (6,800,000) | (5,700,000) | ||||||
Net Carrying Value | $ 10,500,000 | 11,600,000 | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||||
Other (b) | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | $ 9,600,000 | [2] | 0 | |||||
Accumulated Amortization | (1,400,000) | [2] | 0 | |||||
Net Carrying Value | $ 8,200,000 | [2] | $ 0 | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | Customer lists (a) | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | $ 34,500,000 | |||||||
Net Carrying Value | $ 13,100,000 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Customer lists (a) | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross Cost | $ 87,800,000 | |||||||
Net Carrying Value | $ 35,700,000 | |||||||
Maximum | Customer lists (a) | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||||
[1] | In connection with the spin-off, we transferred customer lists with a gross cost of $34.5 million and a net carrying value of $13.1 million to CS&L (see Note 3). At the date of sale, customer lists associated with the data center operations had a gross cost of $87.8 million and a net carrying value of $35.7 million. | |||||||
[2] | During 2015, we acquired for cash non-exclusive licenses to various patents, which are being amortized on a straight-line basis over the estimated useful life of 3 years. |
Intangible Asset Amortization M
Intangible Asset Amortization Methodology and Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Franchise rights | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 30 years |
Customer lists (a) | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | sum of years digits |
Customer lists (a) | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 9 years |
Customer lists (a) | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 15 years |
Cable franchise rights | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 15 years |
Other (b) | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 3 years |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2,016 | $ 185.3 | |
2,017 | 158.7 | |
2,018 | 131.9 | |
2,019 | 104.8 | |
2,020 | 86.4 | |
Thereafter | 837.6 | |
Net Carrying Value | $ 1,504.7 | $ 1,764 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | May. 27, 2015 | ||
Debt Instrument [Line Items] | ||||
Premium on long-term debt, net (c) | [1] | $ 4.6 | $ 23.3 | |
Unamortized Debt Issuance Expense | [1] | (62.8) | (87.7) | |
Carrying value | 5,170.5 | 8,564 | ||
Less current maturities | (5.9) | (717.5) | ||
Total long-term debt | $ 5,164.6 | $ 7,846.5 | ||
Weighted average interest rate | 6.80% | 6.50% | ||
Weighted maturity | 5 years 4 months | 5 years 30 days | ||
Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 (a) | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | [2] | $ 0 | $ 344.3 | |
Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 (a) | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | [2] | 0 | 255 | |
Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 (a) | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | [2] | 0 | 1,318.1 | |
Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 578.2 | 584.1 | ||
Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | $ 300 | $ 625 | ||
Weighted average interest rate | 2.39% | 2.49% | ||
2017 Notes – 7.875%, due November 1, 2017 (b) | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | [3] | $ 904.1 | $ 1,100 | |
2018 Notes – 8.125%, due September 1, 2018 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 0 | 400 | $ 400 | |
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 (b) | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | [3] | 920.4 | 950 | |
2022 Notes – 7.500%, due June 1, 2022 (b) | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | [3] | 485.9 | 500 | |
2023 Notes – 7.500%, due April 1, 2023 (b) | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | [3] | 540.1 | 600 | |
2023 Notes – 6.375%, due August 1, 2023 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Notes Payable | 700 | 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 | 100 | 100 | ||
Cinergy Communications Company | Cinergy Communications Company – 6.58%, due January 1, 2022 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debentures and notes issued by subsidiaries | 0 | 1.9 | ||
PAETEC Holding Corp. | PAETEC 2018 Notes – 9.875%, due December 1, 2018 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Net debt assumed | $ 0 | $ 450 | ||
[1] | The net premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. | |||
[2] | Debt obligation was retired in connection with completion of the debt-for-debt exchange (see Note 3). | |||
[3] | During 2015, Windstream Services repurchased in the open market a portion of this debt obligation. |
Long-Term Debt Interest Rates (
Long-Term Debt Interest Rates (Details) | 12 Months Ended | |
Dec. 31, 2015 | Aug. 26, 2013 | |
Debt Instrument [Line Items] | ||
Basis point interest rate increase | 1.00% | |
2017 Notes – 7.875%, due November 1, 2017 (b) | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.875% | |
2018 Notes – 8.125%, due September 1, 2018 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.125% | |
2020 Notes – 7.750%, due October 15, 2020 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.75% | |
2021 Notes – 7.750%, due October 1, 2021 (b) | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.75% | 7.75% |
2022 Notes – 7.500%, due June 1, 2022 (b) | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.50% | |
2023 Notes – 7.500%, due April 1, 2023 (b) | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.50% | |
2023 Notes – 6.375%, due August 1, 2023 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.375% | |
Windstream Holdings of the Midwest, Inc. | Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.75% | |
Cinergy Communications Company | Cinergy Communications Company – 6.58%, due January 1, 2022 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.58% | |
PAETEC Holding Corp. | PAETEC 2018 Notes – 9.875%, due December 1, 2018 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate | 9.875% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | May. 27, 2015 | Apr. 24, 2015 | Dec. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 17, 2015 | Aug. 26, 2013 | Aug. 12, 2013 | Jan. 23, 2013 | Nov. 30, 2011 | |
Debt Instrument [Line Items] | |||||||||||||||
Dividends, Cash | $ 231,500,000 | $ 602,900,000 | $ 595,500,000 | ||||||||||||
Long-term Debt, Weighted Average Interest Rate | 6.80% | 6.80% | 6.50% | ||||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | [1] | $ (4,600,000) | $ (4,600,000) | $ (23,300,000) | |||||||||||
Loss on early extinguishment of debt | (36,400,000) | 0 | (28,500,000) | ||||||||||||
Equipment acquired under capital leases | 36,400,000 | 500,000 | |||||||||||||
Defined Benefit Plan, Contributions by Employer, Non Cash, Value | $ 80,900,000 | ||||||||||||||
Other Lease Obligation, Lease Terms | 10 years | ||||||||||||||
Annual Rent Escalations | 2.00% | ||||||||||||||
Number of Renewal Options | 3 | ||||||||||||||
Lease Term of Renewal Options | 5 | ||||||||||||||
Gain Recognized, Repurchase of Property Contributed to Pension Plan | 500,000 | ||||||||||||||
Unamortized Debt Issuance Expense | [1] | (62,800,000) | (62,800,000) | (87,700,000) | |||||||||||
Unsecured Debt [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Repurchase Program, Authorized Amount | $ 300,000,000 | 300,000,000 | $ 200,000,000 | ||||||||||||
Unsecured Debt [Member] | Notes 2021 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Debt | $ 25,800,000 | ||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||||||||
Interest rate | 7.75% | 7.75% | 7.75% | ||||||||||||
Notes Payable | [2] | $ 920,400,000 | $ 920,400,000 | 950,000,000 | |||||||||||
Net debt assumed | $ 29,600,000 | $ 29,600,000 | |||||||||||||
Unsecured Debt [Member] | Notes 2023 [Member] [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 700,000,000 | ||||||||||||||
Debt Instrument, Price | 6.375% | ||||||||||||||
Unsecured Debt [Member] | Notes 2019 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 7.00% | ||||||||||||||
Extinguishment of Debt, Amount | $ 500,000,000 | ||||||||||||||
Loss on early extinguishment of debt | (14,700,000) | ||||||||||||||
Write off of Deferred Debt Issuance Cost | 600,000 | ||||||||||||||
Unsecured Debt [Member] | 2018 Notes – 8.125%, due September 1, 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 8.125% | 8.125% | |||||||||||||
Notes Payable | $ 400,000,000 | $ 0 | $ 0 | 400,000,000 | |||||||||||
Loss on early extinguishment of debt | (21,700,000) | ||||||||||||||
Debt instrument, Redemption Price Payable per $1,000 | 1,040.63 | ||||||||||||||
Amortization of Debt Discount (Premium) | 1,400,000 | 1,400,000 | |||||||||||||
Write off of Deferred Debt Issuance Cost | 4,000,000 | $ 4,000,000 | |||||||||||||
Unsecured Debt [Member] | 2020 Notes – 7.750%, due October 15, 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 7.75% | 7.75% | |||||||||||||
Notes Payable | $ 700,000,000 | $ 700,000,000 | 700,000,000 | ||||||||||||
Unsecured Debt [Member] | 2022 Notes – 7.500%, due June 1, 2022 (b) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Debt | $ 11,500,000 | ||||||||||||||
Interest rate | 7.50% | 7.50% | |||||||||||||
Notes Payable | [2] | $ 485,900,000 | $ 485,900,000 | 500,000,000 | |||||||||||
Net debt assumed | $ 14,100,000 | 14,100,000 | |||||||||||||
Unsecured Debt [Member] | 2023 Notes – 7.500%, due April 1, 2023 (b) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Debt | $ 50,200,000 | ||||||||||||||
Interest rate | 7.50% | 7.50% | |||||||||||||
Notes Payable | [2] | $ 540,100,000 | $ 540,100,000 | 600,000,000 | |||||||||||
Net debt assumed | 59,900,000 | 59,900,000 | |||||||||||||
Unsecured Debt [Member] | Partial Repurchase of 2017, 2021, 2022, 2023 Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Unamortized Net Discount and Debt Issuance Costs | 3,900,000 | 3,900,000 | |||||||||||||
Net debt assumed | $ 299,500,000 | 299,500,000 | |||||||||||||
Loss on early extinguishment of debt | 7,000,000 | ||||||||||||||
Amortization of Debt Discount (Premium) | 700,000 | ||||||||||||||
Write off of Deferred Debt Issuance Cost | 3,200,000 | ||||||||||||||
Unsecured Debt [Member] | 2017 Notes – 7.875%, due November 1, 2017 (b) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Debt | $ 209,600,000 | ||||||||||||||
Interest rate | 7.875% | 7.875% | |||||||||||||
Notes Payable | [2] | $ 904,100,000 | $ 904,100,000 | 1,100,000,000 | |||||||||||
Net debt assumed | $ 195,900,000 | $ 195,900,000 | |||||||||||||
Unsecured Debt [Member] | PAETEC Holding Corp. | PAETEC 2018 Notes – 9.875%, due December 1, 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 9.875% | 9.875% | |||||||||||||
Net debt assumed | 450,000,000 | ||||||||||||||
Loss on early extinguishment of debt | $ (5,300,000) | ||||||||||||||
Debt instrument, Redemption Price Payable per $1,000 | 1,049.38 | ||||||||||||||
Amortization of Debt Discount (Premium) | $ 16,900,000 | (16,900,000) | |||||||||||||
Secured Debt | Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior Notes | $ 578,200,000 | 578,200,000 | 584,100,000 | ||||||||||||
Secured Debt | Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 (a) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior Notes | [3] | $ 0 | $ 0 | $ 1,318,100,000 | |||||||||||
Repayments of Debt | $ 241,800,000 | ||||||||||||||
Secured Debt | Cinergy Communications Company | Cinergy Communications Company – 6.58%, due January 1, 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 6.58% | 6.58% | |||||||||||||
Net debt assumed | $ 1,900,000 | ||||||||||||||
Secured Debt | PAETEC Holding Corp. | Notes, June 2017 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate | 8.875% | ||||||||||||||
Extinguishment of Debt, Amount | $ 650,000,000 | ||||||||||||||
Loss on early extinguishment of debt | (11,300,000) | ||||||||||||||
Write off of Deferred Debt Issuance Cost | $ (41,200,000) | ||||||||||||||
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, Increase, Additional Borrowings | $ 2,335,000,000 | ||||||||||||||
Repayments of Lines of Credit | 2,660,000,000 | ||||||||||||||
Letters of Credit under Revolving Line of Credit, Maximum | $ 30,000,000 | 30,000,000 | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | 1,250,000,000 | |||||||||||||
Letters of Credit Outstanding, Amount | 23,100,000 | 23,100,000 | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 926,900,000 | $ 926,900,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.19% | 2.41% | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.50% | 4.50% | |||||||||||||
Long-term Debt, Weighted Average Interest Rate | 2.39% | 2.39% | 2.49% | ||||||||||||
Pension Plan, Defined Benefit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Other Lease Obligation, Lease Terms | 20 years | ||||||||||||||
Other Lease Obligation, Annual Rental Payments | $ 6,300,000 | ||||||||||||||
Annual Rent Escalations | 3.00% | ||||||||||||||
Repurchase of Property Contributed to Pension Plan, Fair Value | $ 8,200,000 | ||||||||||||||
Portion of Long-term Lease Obligation Derecognized | $ 8,700,000 | ||||||||||||||
Lease Obligation, Annual Rent Adjusted for Repurchase of Data Center | $ 6,000,000 | ||||||||||||||
Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||||||||
Leverage ratio under covenant | 4.5 | 4.5 | |||||||||||||
Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ||||||||||||||
Interest coverage ratio under covenant | 2.75 | 2.75 | |||||||||||||
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term Lease Obligation, Lease Terms | 15 years | ||||||||||||||
Effective interest rate, Master Lease Agreement | 10.10% | ||||||||||||||
Long-term Lease Obligation | $ 5,100,000,000 | ||||||||||||||
Other Lease Obligation, Lease Terms, with CapEx Funding | 20 years | ||||||||||||||
Number of Renewal Options | 4 | ||||||||||||||
Lease Term of Renewal Options | 5 years | ||||||||||||||
Number of Renewal Options, Reduced | 3 | ||||||||||||||
Other Long-term Lease Obligation, Annual Rental Payments | $ 650,000,000 | ||||||||||||||
Other Long-term Lease Obligation, Annual Rental Payment Adjusted for Funding of Capital Expenditures | 653,500,000 | ||||||||||||||
Amount of Capital Expenditures that could be Funded by the REIT | $ 250,000,000 | ||||||||||||||
Annual Rent Escalations After Third Year of Initial Lease Term | 0.50% | ||||||||||||||
2015 Funding Request for CapEx to be paid by CS&L | $ 43,100,000 | ||||||||||||||
Adjustment to Rate of Master Lease if CapEx Funded | 8.125% | ||||||||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Debt | $ 3,200,000,000 | ||||||||||||||
Dividends, Cash | 1,035,000,000 | ||||||||||||||
Loss on early extinguishment of debt | 15,900,000 | ||||||||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | Windstream Holdings, Inc. [Domain] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior Notes | 1,700,000,000 | ||||||||||||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | Line of Credit | Revolving Line of Credit, Due 2020 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Lines of Credit | $ 752,200,000 | ||||||||||||||
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] | Revolving Credit Facility [Member] | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||||||||||
Base Rate [Member] | Secured Debt | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||||
Base Rate [Member] | Secured Debt | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||||||||||
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] | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||||||||
[1] | The net premium balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. | ||||||||||||||
[2] | During 2015, Windstream Services repurchased in the open market a portion of this debt obligation. | ||||||||||||||
[3] | Debt obligation was retired in connection with completion of the debt-for-debt exchange (see Note 3). |
Long-term Debt and Lease Obli75
Long-term Debt and Lease Obligations: Long-term debt, Maturities, Repayments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Long-term debt, Maturities, Repayments [Abstract] | |
2,016 | $ 5.9 |
2,017 | 910 |
2,018 | 5.9 |
2,019 | 560.5 |
2,020 | 1,000 |
Thereafter | 2,746.4 |
Total | $ 5,228.7 |
Loss on Extinguishment of Debt
Loss on Extinguishment of Debt (Details) - USD ($) $ in Millions | May. 27, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Extinguishment of Debt [Line Items] | ||||
Total (loss) gain on early extinguishment of debt | $ (36.4) | $ 0 | $ (28.5) | |
Unsecured Debt | Notes 2019 [Member] | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | (13.6) | |||
Third-party fees for early redemption | (0.5) | |||
Unamortized debt issuance costs on original issuance | (0.6) | |||
Total (loss) gain on early extinguishment of debt | (14.7) | |||
Unsecured Debt | 2018 Notes – 8.125%, due September 1, 2018 | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | (16.3) | |||
Unamortized debt issuance costs on original issuance | $ (4) | (4) | ||
Unamortized premium on original issuance | (1.4) | (1.4) | ||
Total (loss) gain on early extinguishment of debt | (21.7) | |||
Unsecured Debt | Partial Repurchase of 2017, 2021, 2022, 2023 Notes [Member] | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | 10.9 | |||
Unamortized debt issuance costs on original issuance | (3.2) | |||
Unamortized premium on original issuance | (0.7) | |||
Total (loss) gain on early extinguishment of debt | 7 | |||
Unsecured Debt | Cinergy Communications Company | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | (0.5) | |||
Total (loss) gain on early extinguishment of debt | (0.5) | |||
Unsecured Debt | PAETEC Holding Corp. | Notes, December 2018 [Member] | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | (22.2) | |||
Unamortized premium on original issuance | $ (16.9) | 16.9 | ||
Total (loss) gain on early extinguishment of debt | (5.3) | |||
Secured Debt | Senior Notes [Member] | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | (6.6) | |||
Third-party fees for early redemption | (0.7) | |||
Unamortized debt issuance costs on original issuance | (8.6) | (2.5) | ||
Total (loss) gain on early extinguishment of debt | $ (15.9) | (2.5) | ||
Secured Debt | PAETEC Holding Corp. | Notes, June 2017 [Member] | ||||
Extinguishment of Debt [Line Items] | ||||
Discount (Premium) on early extinguishment of debt | (51.5) | |||
Third-party fees for early redemption | (1) | |||
Unamortized debt issuance costs on original issuance | 41.2 | |||
Total (loss) gain on early extinguishment of debt | $ (11.3) |
Long-term Debt and Lease Obli77
Long-term Debt and Lease Obligations: Current and Noncurrent Assets Subject to Leaseback (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Current and Noncurrent Long-Term Lease Obligations [Line Items] | ||
Long-term Lease Obligations, Current Portion | $ 152.7 | $ 0 |
Long-term Lease Obligations, Excluding Current Portion | 5,000.4 | 81 |
Total Long-Term Lease Obligation | 5,153.1 | 81 |
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | ||
Schedule of Current and Noncurrent Long-Term Lease Obligations [Line Items] | ||
Long-term Lease Obligations, Current Portion | 152.7 | 0 |
Long-term Lease Obligations, Excluding Current Portion | 4,927.7 | 0 |
Total Long-Term Lease Obligation | 5,080.4 | 0 |
Long-term Lease Obligation, Defined Benefit Plan, Non Cash Contribution [Domain] | ||
Schedule of Current and Noncurrent Long-Term Lease Obligations [Line Items] | ||
Long-term Lease Obligations, Current Portion | 0 | 0 |
Long-term Lease Obligations, Excluding Current Portion | 72.7 | 81 |
Total Long-Term Lease Obligation | $ 72.7 | $ 81 |
Long-term Debt and Lease Obli78
Long-term Debt and Lease Obligations: Long-term Lease Obligations (Details) $ in Millions | Dec. 31, 2015USD ($) |
Long-term Lease Obligations [Line Items] | |
2,016 | $ 659.6 |
2,017 | 659.7 |
2,018 | 661.7 |
2,019 | 665.4 |
2,020 | 668.9 |
Thereafter | 6,404.8 |
Total maturities of other lease obligations | 9,720.1 |
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | |
Long-term Lease Obligations [Line Items] | |
2,016 | 653.6 |
2,017 | 653.5 |
2,018 | 655.4 |
2,019 | 658.9 |
2,020 | 662.2 |
Thereafter | 6,328.5 |
Total maturities of other lease obligations | 9,612.1 |
Long-term Lease Obligation, Defined Benefit Plan, Non Cash Contribution [Domain] | |
Long-term Lease Obligations [Line Items] | |
2,016 | 6 |
2,017 | 6.2 |
2,018 | 6.3 |
2,019 | 6.5 |
2,020 | 6.7 |
Thereafter | 76.3 |
Total maturities of other lease obligations | $ 108 |
Long-term Debt and Lease Obli79
Long-term Debt and Lease Obligations: Capital Lease Obligations (Details) $ in Millions | Dec. 31, 2015USD ($) |
Capital Leases [Abstract] | |
2,016 | $ 48.2 |
2,017 | 13 |
2,018 | 0.6 |
2,019 | 0.6 |
2,020 | 0.5 |
Thereafter | 1.2 |
Total future payments | 64.1 |
Less: Amounts representing interest | 2.9 |
Present value of minimum lease payments | $ 61.2 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Expense, Net Disclosure [Line Items] | ||||||
Interest expense - long-term debt | $ 442 | $ 539.9 | $ 584.7 | |||
Impact of interest rate swaps | 20.5 | 29 | 48 | |||
Interest on capital leases and other | 2.8 | 3.8 | 2.9 | |||
Less capitalized interest expense | (10.4) | (3.7) | (7.9) | |||
Total interest expense | 813.2 | 571.8 | 627.7 | |||
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | ||||||
Interest Expense, Net Disclosure [Line Items] | ||||||
Interest expense related to long-term lease obligations | $ 127.4 | $ 128.2 | $ 96 | 351.6 | 0 | 0 |
Long-term Lease Obligation, Defined Benefit Plan, Non Cash Contribution [Domain] | ||||||
Interest Expense, Net Disclosure [Line Items] | ||||||
Interest expense related to long-term lease obligations | $ 6.7 | $ 2.8 | $ 0 |
Derivative Instruments_ Schedul
Derivative Instruments: Schedule of Derivative Instruments (Details) - Interest Rate Swap - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 17, 2012 |
Derivative [Line Items] | |||
Weighted average fixed rate paid | 2.99% | 3.57% | 3.391% |
Variable rate received | 0.35% | 0.16% | |
Other Assets | Designated portion, measured at fair value | |||
Derivative [Line Items] | |||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 0 | $ 0.4 | |
Other current liabilities | Designated portion, measured at fair value | |||
Derivative [Line Items] | |||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 18.3 | 28.5 | |
Other noncurrent liabilities | Designated portion, measured at fair value | |||
Derivative [Line Items] | |||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 33.4 | 48.7 | |
Accumulated other comprehensive income (loss) | Designated portion, measured at fair value | |||
Derivative [Line Items] | |||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | (0.9) | 4.9 | |
Accumulated other comprehensive income (loss) | De-designated portion, unamortized value | |||
Derivative [Line Items] | |||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ (0.2) | $ (8.8) |
Derivative Instruments_ Derivat
Derivative Instruments: Derivative Instruments, Gain (Loss) (Details) - Interest Rate Swap - Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Changes in fair value of effective portion, net of tax (a) | [1] | $ (5.4) | $ (14.3) | $ 17.4 |
De-Designated Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) | [1] | $ 7.1 | $ 9.8 | $ 22.2 |
[1] | Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. |
Derivative Instruments_ Deriv83
Derivative Instruments: Derivatives Offsetting Assets (Details) $ in Millions | Dec. 31, 2014USD ($) |
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | |
Gross Amount of Recognized Assets | $ 0.4 |
Net Amount of Assets presented in the Consolidated Balance Sheets | 0.4 |
Financial Instruments, Derivative Asset, Not Subject to Master Netting Arrangement | (0.3) |
Cash Collateral Received, Derivative Asset | 0 |
Net Amount, Interest rate swaos | $ 0.1 |
Derivatives Offsetting Liabilti
Derivatives Offsetting Liabilties (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Amount of Recognized Liabilities, Derivatives | $ 51.7 | $ 77.2 |
Net Amount of Liabilities, Derivatives, Amount Not Offset Against Collateral | 51.7 | 77.2 |
Financial Instruments, Derivative Liabilities, Not Subject to Master Netting Arrangement | 0 | (0.3) |
Cash Collateral Received, Derivative Liabilities | 0 | 0 |
Net Amount, Derivatives | $ 51.7 | $ 76.9 |
Derivatives Additional informat
Derivatives Additional information (Details) | Apr. 24, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 31, 2013USD ($)derivative | Oct. 17, 2012USD ($)derivative |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | derivative | 4 | |||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge | $ 3,000,000 | |||||
Number of swaps terminated | 7 | |||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | (3,700,000) | $ (300,000) | $ 1,600,000 | |||
Assets Needed for Immediate Settlement, Aggregate Fair Value | 55,400,000 | |||||
Other Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $ (3,700,000) | $ (300,000) | $ 1,600,000 | |||
Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | 3 | 6 | ||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 675,000,000 | |||||
Weighted average fixed rate paid | 2.99% | 3.57% | 3.391% | |||
Derivative, Lower Fixed Interest Rate Range | 1.026% | |||||
Derivative, Higher Fixed Interest Rate Range | 1.04% | |||||
Derivative, Basis Spread on Fixed Rate | 2.75% | |||||
Derivative, Basis Spread on Variable Rate | 0.75% | |||||
Debt Instrument, Credit Rating | A | |||||
Interest Rate Swap | Other Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 1,700,000 | |||||
May 31, 2013 Transaction Date [Domain] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 750,000,000 | |||||
Number of swaps terminated | 6 | |||||
August 21, 2012 Transaction Date [Domain] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 900,000,000 | |||||
Number of swaps terminated | 1 | |||||
April 24, 2015 Renegotiated [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | 2 | |||||
De-Designated Hedging Instrument [Member] | Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (7,700,000) | |||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Costs associated with Termination of Swaps | $ 22,700,000 | |||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | 10 |
Fair Value Measurements_ (Detai
Fair Value Measurements: (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | |||
Investment in CS&L common stock - Level 1 | $ 549.2 | ||
Interest rate swap liabilities - Level 2 | 51.7 | $ 77.2 | |
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 | 549.2 | 0 | |
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 | [1] | 4,452.7 | 8,777.5 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Other Liabilities | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | |||
Interest rate swap assets - Level 2 | 0 | 0.4 | |
Interest rate swap liabilities - Level 2 | $ 51.7 | $ 77.2 | |
[1] | Recognized at carrying value of $5,233.3 million and $8,651.7 million in long-term debt, including current maturities, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of December 31, 2015 and 2014, respectively.The fair value of CS&L common stock is based on the quoted market price of the shares on the last day of the reporting period. The CS&L common stock trades on NASDAQ. |
Fair Value Measurements_ Fair V
Fair Value Measurements: Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap | Other Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease in fair value of interest rate swaps to reflect non-performance risk | $ 2.9 | $ 3.3 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 5,233.3 | $ 8,651.7 |
Employee Benefit Plans and Po88
Employee Benefit Plans and Postretirement Benefits: Components of Pension Expense and Postretirement Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefits earned during the year | $ 9.5 | $ 8.2 | $ 10.5 |
Interest cost on benefit obligation | 53.2 | 58.9 | 52.5 |
Net actuarial loss (gain) | 8.7 | 128.6 | (110.4) |
Amortization of net actuarial loss | 0 | 0 | 0 |
Amortization of prior service credit | (0.1) | (0.1) | (0.1) |
Plan curtailments and settlements | 0 | 0 | 0 |
Expected return on plan assets | (70.1) | (67.3) | (67.8) |
Net periodic benefit expense (income) | 1.2 | 128.3 | (115.3) |
Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefits earned during the year | 0 | 0 | 0 |
Interest cost on benefit obligation | 1.3 | 1.3 | 1.4 |
Net actuarial loss (gain) | 0 | 0 | 0 |
Amortization of net actuarial loss | 1 | 0.1 | 1.7 |
Amortization of prior service credit | (3.8) | (5.8) | (8.6) |
Plan curtailments and settlements | (18) | (11.5) | (32.2) |
Expected return on plan assets | 0 | 0 | 0 |
Net periodic benefit expense (income) | $ (19.5) | $ (15.9) | $ (37.7) |
Employee Benefit Plans and Po89
Employee Benefit Plans and Postretirement Benefits: Summary of Plan Assets, Projected Benefit Obligation and Funded Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pension Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets at beginning of year | $ 1,042 | $ 959.7 | ||
Actual return on plan assets | (1.6) | 144.6 | ||
Employer contributions | 0.9 | 89.9 | ||
Participant contributions | 0 | 0 | ||
Benefits paid | [1] | (74.7) | (65.6) | |
Settlements | [2] | 0 | (86.6) | |
Fair value of plan assets at end of year | 966.6 | 1,042 | $ 959.7 | |
Change in Projected Benefit Obligation | ||||
Projected benefit obligation at beginning of year | 1,331.8 | 1,210.6 | ||
Interest cost on projected benefit obligations | 53.2 | 58.9 | 52.5 | |
Service costs | 9.5 | 8.2 | 10.5 | |
Participant contributions | 0 | 0 | ||
Plan amendments | (1.4) | 0 | ||
Actuarial (gain) loss | (62.9) | 206.3 | ||
Benefits paid | [1] | (74.7) | (65.6) | |
Settlements | [2] | 0 | (86.6) | |
Projected benefit obligation at end of year | 1,255.5 | 1,331.8 | 1,210.6 | |
Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: | ||||
Current liabilities | (1.9) | (0.8) | ||
Noncurrent liabilities | (287) | (289) | ||
Funded status recognized in the consolidated balance sheets | (288.9) | (289.8) | ||
Amounts recognized in accumulated other comprehensive income (loss): | ||||
Net actuarial loss | 0 | 0 | ||
Prior service credits | 1.8 | 0.5 | ||
Net amount recognized in accumulated other comprehensive income | 1.8 | 0.5 | ||
Pension benefits paid from Company assets | 0.9 | 0.8 | ||
Postretirement Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets at beginning of year | 0.3 | 0.3 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 2.5 | 3.8 | ||
Participant contributions | 4.3 | 0.4 | ||
Benefits paid | [1] | (6.7) | (4.2) | |
Settlements | [2] | 0 | 0 | |
Fair value of plan assets at end of year | 0.4 | 0.3 | 0.3 | |
Change in Projected Benefit Obligation | ||||
Projected benefit obligation at beginning of year | 30.6 | 31.4 | ||
Interest cost on projected benefit obligations | 1.3 | 1.3 | 1.4 | |
Service costs | 0 | 0 | 0 | |
Participant contributions | 4.3 | 0.4 | ||
Plan amendments | (0.4) | (0.2) | ||
Actuarial (gain) loss | (0.1) | 3.4 | ||
Benefits paid | [1] | (6.7) | (4.2) | |
Settlements | [2] | 0 | (1.5) | |
Projected benefit obligation at end of year | 29 | 30.6 | $ 31.4 | |
Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: | ||||
Current liabilities | (2.1) | (2.3) | ||
Noncurrent liabilities | (26.5) | (28) | ||
Funded status recognized in the consolidated balance sheets | (28.6) | (30.3) | ||
Amounts recognized in accumulated other comprehensive income (loss): | ||||
Net actuarial loss | (4.7) | (5.8) | ||
Prior service credits | 7.8 | 29.2 | ||
Net amount recognized in accumulated other comprehensive income | $ 3.1 | $ 23.4 | ||
[1] | During 2015 and 2014, pension benefits paid from Windstream’s assets totaled $0.9 million and $0.8 million, respectively. All postretirement benefits in both years were paid from Windstream’s assets. | |||
[2] | In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan, during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream. Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension benefit as of December 2014. All lump-sum payments were made from existing plan assets. |
Employee Benefit Plans and Po90
Employee Benefit Plans and Postretirement Benefits: Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Expense (Income) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss | $ 0 |
Prior service credits | (0.3) |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss | 0.5 |
Prior service credits | $ (1.7) |
Employee Benefit Plans and Po91
Employee Benefit Plans and Postretirement Benefits: Actuarial Assumptions Used to Calculate Pension and Postretirement Expense (Details) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 4.14% | 5.01% | 3.85% | |
Expected return on plan assets | 7.00% | 7.00% | 7.00% | |
Rate of compensation increase | 2.00% | 2.00% | 2.00% | |
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | [1] | 4.21% | 4.76% | 3.87% |
Expected return on plan assets | [1] | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | [1] | 0.00% | 0.00% | 0.00% |
[1] | As a result of the various remeasurements of our postretirement benefit obligations previously discussed, key assumptions including the discount rate were updated as of each remeasurement date. |
Employee Benefit Plans and Po92
Employee Benefit Plans and Postretirement Benefits: Actuarial Assumptions Used to Calculate the Projected Benefit Obligations (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.55% | 4.14% |
Expected return on plan assets | 7.00% | 7.00% |
Rate of compensation increase | 2.00% | 2.00% |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.67% | 4.21% |
Expected return on plan assets | 7.00% | 7.00% |
Rate of compensation increase | 0.00% | 0.00% |
Employee Benefit Plans and Po93
Employee Benefit Plans and Postretirement Benefits: Information Regarding the Healthcare Cost Trend Rate (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Healthcare cost trend rate assumed for next year | 7.00% | 7.50% |
Rate that the cost trend ultimately declines to | 5.00% | 5.00% |
Year that the rate reaches the terminal rate | 2,024 | 2,020 |
Employee Benefit Plans and Po94
Employee Benefit Plans and Postretirement Benefits: Asset Allocation for the Pension Plan, by Asset Category (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 23.30% | 26.90% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 18.60% | |
Target plan asset allocations, maximum | 30.60% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 53.40% | 53.90% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 41.70% | |
Target plan asset allocations, maximum | 68.70% | |
Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 21.80% | 18.20% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 13.70% | |
Target plan asset allocations, maximum | 23.70% | |
Money market and other short-term interest bearing securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.50% | 1.00% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 0.00% | |
Target plan asset allocations, maximum | 4.00% |
Employee Benefit Plans and Po95
Employee Benefit Plans and Postretirement Benefits: Fair Values of Pension and Post Retirement Benefit Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | $ 966.6 | $ 1,042 | $ 959.7 | |||
Investments | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 990.5 | 1,059 | ||||
Investments | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 124.8 | 147.3 | ||||
Investments | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 656.9 | 710.1 | ||||
Investments | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 208.8 | 201.6 | 115 | |||
Investments | Money market fund (a) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [1] | 70.1 | 42.4 | |||
Investments | Money market fund (a) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [1] | 0 | 0 | |||
Investments | Money market fund (a) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [1] | 70.1 | 42.4 | |||
Investments | Money market fund (a) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [1] | 0 | 0 | |||
Investments | Guaranteed annuity contract (b) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [2] | 1.1 | 1.4 | |||
Investments | Guaranteed annuity contract (b) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [2] | 0 | 0 | |||
Investments | Guaranteed annuity contract (b) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [2] | 0 | 0 | |||
Investments | Guaranteed annuity contract (b) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 1.1 | [2] | 1.4 | [2] | 1.9 | |
Investments | Common collective trust funds (c) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [3] | 255.4 | 330.8 | |||
Investments | Common collective trust funds (c) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [3] | 0 | 0 | |||
Investments | Common collective trust funds (c) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [3] | 255.4 | 330.8 | |||
Investments | Common collective trust funds (c) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [3] | 0 | 0 | |||
Investments | Government and agency securities (d) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 281.5 | 285.6 | |||
Investments | Government and agency securities (d) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Government and agency securities (d) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 281.5 | 285.6 | |||
Investments | Government and agency securities (d) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Corporate bonds and asset backed securities (d) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 30.9 | 34.4 | |||
Investments | Corporate bonds and asset backed securities (d) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Corporate bonds and asset backed securities (d) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 30.9 | 34.4 | |||
Investments | Corporate bonds and asset backed securities (d) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Common and preferred stocks - domestic (d) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 40 | 54.8 | |||
Investments | Common and preferred stocks - domestic (d) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 39.9 | 54.7 | |||
Investments | Common and preferred stocks - domestic (d) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Common and preferred stocks - domestic (d) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 0.1 | [4] | 0.1 | [4] | 0.1 | |
Investments | Common and preferred stocks - international (d) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 23.1 | 25.3 | |||
Investments | Common and preferred stocks - international (d) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 23.1 | 25.3 | |||
Investments | Common and preferred stocks - international (d) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Common and preferred stocks - international (d) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Derivative financial instruments (e) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [5] | 19 | 16.9 | |||
Investments | Derivative financial instruments (e) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [5] | 0 | 0 | |||
Investments | Derivative financial instruments (e) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [5] | 19 | 16.9 | |||
Investments | Derivative financial instruments (e) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [5] | 0 | 0 | |||
Investments | Hedge fund of funds (f) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [6] | 62 | 61.9 | |||
Investments | Hedge fund of funds (f) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [6] | 0 | 0 | |||
Investments | Hedge fund of funds (f) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [6] | 0 | 0 | |||
Investments | Hedge fund of funds (f) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 62 | [6] | 61.9 | [6] | 60.2 | |
Investments | Mutual fund (d) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 61 | 66.7 | |||
Investments | Mutual fund (d) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 61 | 66.7 | |||
Investments | Mutual fund (d) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Mutual fund (d) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [4] | 0 | 0 | |||
Investments | Real estate and private equity funds (g) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [7] | 145.6 | 138.2 | |||
Investments | Real estate and private equity funds (g) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [7] | 0 | 0 | |||
Investments | Real estate and private equity funds (g) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [7] | 0 | 0 | |||
Investments | Real estate and private equity funds (g) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 145.6 | [7] | 138.2 | [7] | $ 52.8 | |
Investments | Other (h) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [8] | 0.8 | 0.6 | |||
Investments | Other (h) | Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [8] | 0.8 | 0.6 | |||
Investments | Other (h) | Significant Other Observable Inputs - Level 2 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [8] | 0 | 0 | |||
Investments | Other (h) | Significant Unobservable Inputs - Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | [8] | 0 | 0 | |||
Dividends and interest receivable | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | 5.2 | 3.7 | ||||
Pending trades | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value | $ (29.1) | $ (20.7) | ||||
[1] | The money market fund is based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. | |||||
[2] | The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. | |||||
[3] | Units in common collective trust funds are valued by reference to the funds’ underlying assets and are based on the net asset value as reported by the fund manager on the last business day of the Plan year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. | |||||
[4] | Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued at their quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securitiesthat trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. | |||||
[5] | Derivative financial instruments consist primarily of swaps and are valued at fair value based on models that reflect the contractual terms of the instruments. Inputs include primarily observable market information, such as swap curves, benchmark yields, rating updates and interdealer broker quotes at the end of the Plan year. | |||||
[6] | Hedge fund of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined bythe fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. | |||||
[7] | The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. | |||||
[8] | Other investments consists of investments in foreign currency, which are valued at their quoted market price on the last day of the Plan year. |
Employee Benefit Plans and Po96
Employee Benefit Plans and Postretirement Benefits: Pension Plan Assets, Unobservable Input Reconciliation (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers In or Out of Levels 1, 2, or 3 | $ 0 | |||
Pension Benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of year | 1,042,000,000 | $ 959,700,000 | ||
Fair value of plan assets at end of year | 966,600,000 | 1,042,000,000 | ||
Pension Benefits | Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of year | 1,059,000,000 | |||
Fair value of plan assets at end of year | 990,500,000 | 1,059,000,000 | ||
Pension Benefits | Investments | Domestic equities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of year | [1] | 54,800,000 | ||
Fair value of plan assets at end of year | [1] | 40,000,000 | 54,800,000 | |
Pension Benefits | Investments | Hedge fund of funds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of year | [2] | 61,900,000 | ||
Fair value of plan assets at end of year | [2] | 62,000,000 | 61,900,000 | |
Pension Benefits | Investments | Real estate and private equity funds (g) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of year | [3] | 138,200,000 | ||
Fair value of plan assets at end of year | [3] | 145,600,000 | 138,200,000 | |
Pension Benefits | Investments | Guaranteed annuity contract | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of year | [4] | 1,400,000 | ||
Fair value of plan assets at end of year | [4] | 1,100,000 | 1,400,000 | |
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains related to plan assets sold during the year | 1,000,000 | 900,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 10,900,000 | 7,500,000 | ||
Fair value of plan assets at beginning of year | 201,600,000 | 115,000,000 | ||
Fair value of plan assets at end of year | 208,800,000 | 201,600,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | (4,700,000) | 78,200,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Domestic equities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains related to plan assets sold during the year | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | ||
Fair value of plan assets at beginning of year | 100,000 | [1] | 100,000 | |
Fair value of plan assets at end of year | [1] | 100,000 | 100,000 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Hedge fund of funds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains related to plan assets sold during the year | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 100,000 | 1,700,000 | ||
Fair value of plan assets at beginning of year | 61,900,000 | [2] | 60,200,000 | |
Fair value of plan assets at end of year | [2] | 62,000,000 | 61,900,000 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Real estate and private equity funds (g) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains related to plan assets sold during the year | 1,000,000 | 900,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 10,700,000 | 5,700,000 | ||
Fair value of plan assets at beginning of year | 138,200,000 | [3] | 52,800,000 | |
Fair value of plan assets at end of year | [3] | 145,600,000 | 138,200,000 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | (4,300,000) | 78,800,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Guaranteed annuity contract | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains related to plan assets sold during the year | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 100,000 | 100,000 | ||
Fair value of plan assets at beginning of year | 1,400,000 | [4] | 1,900,000 | |
Fair value of plan assets at end of year | [4] | 1,100,000 | 1,400,000 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | (400,000) | (600,000) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | $ 0 | $ 0 | ||
[1] | Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued at their quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securitiesthat trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. | |||
[2] | Hedge fund of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined bythe fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. | |||
[3] | The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. | |||
[4] | The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. |
Employee Benefit Plans and Po97
Employee Benefit Plans and Postretirement Benefits: Estimated Future Employer Contributions, Benefit Payments, Including Executive Retirement Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2016 | $ 1 |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2016 | 1.9 |
Expected benefit payments: | |
2,015 | 79.8 |
2,016 | 82.3 |
2,017 | 81.2 |
2,018 | 82.1 |
2,019 | 83.8 |
2020-2024 | 417.8 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2016 | 2.1 |
Expected benefit payments: | |
2,015 | 2.1 |
2,016 | 2 |
2,017 | 1.8 |
2,018 | 1.7 |
2,019 | 1.5 |
2020-2024 | $ 6.8 |
Employee Benefit Plans and Po98
Employee Benefit Plans and Postretirement Benefits: (Details) - USD ($) shares in Millions, $ in Millions | Mar. 07, 2014 | Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Contributions by Employer, Non Cash, Value | $ 80.9 | |||||
Other Lease Obligation, Lease Terms | 10 years | |||||
Annual Rent Escalations | 2.00% | |||||
Number of Renewal Options | 3 | |||||
Lease Term of Renewal Options | 5 | |||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 1 | |||||
Matching contribution to employee savings accounts, maximum | 4.00% | 4.00% | ||||
Matching contribution to employee savings accounts, employees contributions, minimum | 5.00% | 5.00% | ||||
Recorded expenses related to the employee savings plan | $ 19.3 | $ 18.3 | $ 18.1 | |||
Annual matching contribution to defined contribution plan, Common Stock | 2.7 | |||||
Defined Contribution Plan, Contributions by Employer, Common Stock, Value | $ 21.6 | 20.4 | ||||
Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 1,236.9 | $ 1,236.9 | $ 1,309.7 | 1,193 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long Term Return on Assets | 7.00% | 7.00% | 7.00% | |||
Defined Benefit Plan, Number of Shares of Equity Securities Issued by Employer and Related Parties Included in Plan Assets | 1 | |||||
Other Lease Obligation, Lease Terms | 20 years | |||||
Other Lease Obligation, Annual Rental Payments | $ 6.3 | |||||
Annual Rent Escalations | 3.00% | |||||
Repurchase of Property Contributed to Pension Plan, Fair Value | $ 8.2 | |||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 1.9 | |||||
Defined Benefit Plan, Contributions by Employer, Common Stock, Value | $ 8.3 | 27.8 | ||||
Lease Obligation, Annual Rent Adjusted for Repurchase of Data Center | 6 | |||||
Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 18 | $ 11.5 | 32.2 | |||
Minimum percentage of unrecognized actuarial gains or losses that are amortized over the lesser of 10 years or the average remaining service life of active employees | 10.00% | |||||
Unrealized Actuarial Gains (Losses), Amortization Period, Maximum | 10 years | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long Term Return on Assets | 7.00% | 7.00% | 7.00% | |||
One percent increase in the assumed healthcare cost trend rate, increase in postretirement benefit cost | $ 0.1 | |||||
One percent decrease in the assumed healthcare cost trend rate, decrease in postretirement benefit cost | 0.1 | |||||
One percent increase in the assumed healthcare cost trend rate, increase in postretirement benefit obligation | 2.8 | |||||
One percent decrease in the assumed healthcare cost trend rate, decrease in postretirement benefit obligation | 2.3 | |||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 2.1 | |||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0.9 | |||||
Cost of services | Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 14.3 | $ 7.1 | 24.1 | |||
Selling, general and administrative [Member] | Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 3.7 | 4.4 | 8.1 | |||
Equity Securities [Member] | Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Target Plan Asset Allocations | 25.00% | |||||
Fixed Income Funds [Member] | Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Target Plan Asset Allocations | 55.00% | |||||
Alternative Investments [Member] | Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | |||||
Accumulated Other Comprehensive Income (Loss) | Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 18 | 10 | 31.8 | |||
Other Liabilities | Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 1.5 | $ 0.4 |
Vesting Periods and Grant Date
Vesting Periods and Grant Date Fair Value for Shares Issued (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 3,553,100 | 978,000 | |
Total granted | 3,546,900 | 780,400 | 562,800 |
Grant date fair value | $ 37.1 | $ 39.3 | $ 32.6 |
Vest ratably over a three-year service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 2,739,200 | 488,200 | 375,700 |
Vest ratably over a two-year service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 0 | 3,100 | 11,400 |
Vest variably over a three-year service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 62,600 | 41,200 | 31,000 |
Vest contingently over a three-year performance period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 283,400 | 196,100 | 131,100 |
Vest one year from date of grant, service based - granted to non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 73,700 | 20,200 | 13,600 |
Vest two years from date of grant, service based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 6,900 | 0 | 0 |
Vest three years from date of grant, service based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 381,100 | 31,600 | 0 |
Restricted Share Activity (Deta
Restricted Share Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Fair Value Per Share | |||
Beginning balance | $ 53.68 | ||
Granted | 10.46 | ||
Vested | 45.07 | ||
Forfeited | 25.76 | ||
Ending balance | $ 15.29 | $ 53.68 | |
Restricted Stock and Restricted Stock Units | |||
(Thousands) Underlying Number of Shares | |||
Beginning balance | 978,000 | ||
Granted | 3,546,900 | 780,400 | 562,800 |
Vested | (529,700) | ||
Forfeited | (442,100) | ||
Ending balance | 3,553,100 | 978,000 |
Share-Based Compensation Pla101
Share-Based Compensation Plans: Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Share-based Compensation Expense [Line Items] | |||
Employee savings plan (See Note 8) | $ 19.3 | $ 18.3 | $ 18.1 |
Management incentive compensation plans | 11 | 1.4 | 0 |
Share-based compensation expense | 55.3 | 41.8 | 44.9 |
Common Stock and Additional Paid-In Capital | Restricted Stock and Restricted Stock Units | |||
Schedule of Share-based Compensation Expense [Line Items] | |||
Restricted stock, restricted units and stock options | $ 25 | $ 22.1 | $ 26.8 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Details) - USD ($) | Apr. 26, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Operating Target Consideration Period | 3 years | |||
Unrecognized compensation expense | $ 32,000,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 months | |||
Fair value of shares vested | $ 23,900,000 | $ 28,500,000 | $ 24,200,000 | |
Share-based compensation expense | $ 25,000,000 | 22,100,000 | 26,800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 500,000 | |||
Share-based compensation expense | $ 55,300,000 | 41,800,000 | 44,900,000 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | |||
Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 25,000,000 | 22,100,000 | 26,800,000 | |
Restricted Stock Awards | ||||
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 | 24,300,000 | |||
Available shares for grant | 9,100,000 | |||
Restricted Stock Units (RSUs) | 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 | Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 25,000,000 | 22,000,000 | 26,700,000 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 0 | 0 | ||
Share-based compensation expense | 100,000 | 100,000 | ||
PAETEC Holding Corp. | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Available shares for grant | 400,000 | |||
Windstream Services, LLC [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 25,000,000 | 22,100,000 | 26,800,000 | |
Share-based compensation expense | 55,300,000 | 41,800,000 | 44,900,000 | |
Windstream Services, LLC [Member] | Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 25,000,000 | $ 22,100,000 | $ 26,800,000 | |
Windstream Holdings, Inc. [Domain] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of WIndstream Holdings, Inc. Common Shares After Reverse Stock Split | 1 | 1 | ||
Common stock, shares outstanding | 6 | 6 |
Merger, Integration and Rest103
Merger, Integration and Restructuring Charges: (Details) $ in Millions | Apr. 26, 2015shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)position | Dec. 31, 2013USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 750 | |||
Decrease in net income due to merger, integration and restructuring charges | $ 71.2 | $ 46.6 | $ 24.3 | |
Restructuring Integration and Merger Cost [Abstract] | ||||
Information technology conversion costs | 7.5 | 20.8 | 17.3 | |
Costs related to REIT spin-off (See Note 3) | 65.1 | 15.5 | 0 | |
Costs related to sale of data center business | 10.3 | 0 | 0 | |
Network optimization and conversion costs | 5.9 | 0 | 0 | |
Consulting and other costs | 6.2 | 4.1 | 12.9 | |
Total merger and integration costs | 95 | 40.4 | 30.2 | |
Restructuring charges | 20.7 | 35.9 | 8.6 | |
Total merger, integration and restructuring charges | 115.7 | 76.3 | 38.8 | |
Restructuring Integration and Merger Cost [Roll Forward] | ||||
Balance, beginning of period | 11.2 | 14 | ||
Merger, integration and restructuring charges | 115.7 | 76.3 | 38.8 | |
Cash outlays during the period | (121.8) | (79.1) | ||
Balance, end of period | 5.1 | $ 11.2 | $ 14 | |
Workforce Reductions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | 15.6 | |||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | 3.1 | |||
Voluntary Separation Initiative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 295 | |||
Restructuring Announcement [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 24.1 | |||
Restructuring Integration and Merger Cost [Roll Forward] | ||||
Cash outlays during the period | (22.4) | |||
Balance, end of period | 2.6 | |||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 6.3 | |||
Other integration [Member] | ||||
Restructuring Integration and Merger Cost [Roll Forward] | ||||
Cash outlays during the period | (99.4) | |||
Balance, end of period | $ 2.5 | |||
Windstream Holdings, Inc. [Domain] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of WIndstream Holdings, Inc. Common Shares After Reverse Stock Split | shares | 1 | 1 | ||
Common stock, shares outstanding | shares | 6 | 6 |
Accumulated Other Comprehens104
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension and postretirement plans | $ 2.8 | $ 14.5 | $ 26.4 |
Unrealized holding loss on available-for-sale securities | (286.5) | 0 | 0 |
Unrealized holding (losses) gains on interest rate swaps | |||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | 28.5 |
Interest Rate Swap | |||
Unrealized holding (losses) gains on interest rate swaps | |||
Designated portion | (0.6) | 3.1 | 17.4 |
De-designated portion | $ (0.1) | $ (5.5) | $ (15.3) |
Accumulated Other Comprehens105
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive Income (Roll-Forward) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | $ 12.1 | |
Other comprehensive (loss) income before reclassifications | (290.7) | |
Amounts reclassified from other accumulated comprehensive income (loss) (a) | (5.8) | [1] |
Ending balance | (284.4) | |
Unrealized Holding Loss on Available-for-Sale Securities | ||
Accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | 0 | |
Other comprehensive (loss) income before reclassifications | (286.5) | |
Amounts reclassified from other accumulated comprehensive income (loss) (a) | 0 | [1] |
Ending balance | (286.5) | |
Net Losses on Interest Rate Swaps | ||
Accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | (2.4) | |
Other comprehensive (loss) income before reclassifications | (5.4) | |
Amounts reclassified from other accumulated comprehensive income (loss) (a) | 7.1 | [1] |
Ending balance | (0.7) | |
Pension and Postretirement Plans | ||
Accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | 14.5 | |
Other comprehensive (loss) income before reclassifications | 1.2 | |
Amounts reclassified from other accumulated comprehensive income (loss) (a) | (12.9) | [1] |
Ending balance | $ 2.8 | |
[1] | See separate table below for details about these reclassifications. |
Accumulated Other Comprehens106
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive Income (Reclassifications) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | $ 813.2 | $ 571.8 | $ 627.7 | |
Amortization of prior service credits | (3.9) | (5.9) | (8.7) | |
Income (loss) from continuing operations before income taxes | 43.4 | (64.6) | 340.3 | |
Income tax expense (benefit) | 16 | (25.1) | 105.3 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net income (loss) | (5.8) | 0.1 | (1.9) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Losses on interest rate swaps: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Income (loss) from continuing operations before income taxes | 11.6 | 15.8 | 35.9 | |
Income tax expense (benefit) | (4.5) | (6) | (13.7) | |
Net income (loss) | 7.1 | 9.8 | 22.2 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and postretirement plans: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Plan curtailment | [1] | (18) | (10) | (31.8) |
Amortization of net actuarial loss | [1] | 1 | 0.1 | 1.7 |
Amortization of prior service credits | [1] | (3.9) | (5.9) | (8.7) |
Income (loss) from continuing operations before income taxes | (20.9) | (15.8) | (38.8) | |
Income tax expense (benefit) | 8 | 6.1 | 14.7 | |
Net income (loss) | (12.9) | (9.7) | (24.1) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Swap | Losses on interest rate swaps: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | $ 11.6 | $ 15.8 | $ 35.9 | |
[1] | These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit (income) expense (See Note 8). |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Income and Expenses [Abstract] | ||||
Interest income | $ 1.3 | $ 1 | $ 1 | |
Dividend income on CS&L common stock | 48.4 | 0 | 0 | |
Gain (loss) on disposal (a) | [1] | 10.7 | 0 | (6.4) |
Other income (expense), net | 0.8 | (0.6) | (8.7) | |
Ineffectiveness of interest rate swaps | (3.7) | (0.3) | 1.6 | |
Other income (expense), net | $ 57.5 | $ 0.1 | $ (12.5) | |
[1] | The gain recognized during 2015 represents the gain from the sale of our remaining non-strategic directory publishing business completed on April 1, 2015. The loss realized in 2013 was primarily due to the disposal of various non-operating real estate assets. |
Income Taxes_ Income Taxes (Inc
Income Taxes: Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 9.1 | $ 0.8 | $ (27) |
State | 23.2 | (12.5) | (2.5) |
Current Income Tax Expense (Benefit), Total | 32.3 | (11.7) | (29.5) |
Deferred: | |||
Federal | 15 | (18.3) | 104 |
State | (31.3) | 4.9 | 30.8 |
Deferred Income Tax Expense (Benefit), Total | (16.3) | (13.4) | 134.8 |
Income tax expense (benefit) | $ 16 | $ (25.1) | $ 105.3 |
Income Taxes (Differences Betwe
Income Taxes (Differences Between Federal Income Tax Statutory Rates and Effective Income Tax Rates, Which Include Both Federal and State Income Taxes) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) | |||
State income taxes, net of federal benefit | 4.00% | 4.70% | 3.30% |
Adjust deferred taxes for state net operating loss carryforward | 16.00% | 0.00% | (0.10%) |
Transaction costs | 18.70% | (8.00%) | 0.00% |
Tax refunds | 0.00% | 7.30% | 0.00% |
Valuation allowance | (48.40%) | (15.40%) | (0.30%) |
Income tax reserves | 12.20% | (0.40%) | (5.40%) |
Research and development credit | (8.40%) | 12.10% | (2.20%) |
Adjustment of deferred taxes for legal entity restructuring | 6.80% | 0.00% | 0.00% |
Disallowed loss | 0.00% | (2.90%) | 0.00% |
Tax credits | (1.00%) | 2.20% | 0.00% |
Other items, net | 2.00% | 4.30% | 0.60% |
Effective income tax rate | 36.90% | 38.90% | 30.90% |
Income Taxes (Significant Compo
Income Taxes (Significant Components of the Net Deferred Income Tax Liability (Asset)) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $ 1,472.8 | $ 1,146.7 |
Goodwill and other intangible assets | 1,295.8 | 1,312.8 |
Operating loss and credit carryforward | (462.5) | (604) |
Postretirement and other employee benefits | (120.1) | (121.8) |
Unrealized holding loss and interest rate swaps | (5.2) | (5.3) |
Deferred compensation | (4.9) | (5.7) |
Bad debt | (25.1) | (32.1) |
Long-term lease obligations | (1,993.7) | (30.8) |
Deferred debt costs | (2) | (12.9) |
Restricted stock | (9.7) | (8.5) |
Deferred Tax Liabilities, Other | (5.9) | 39.9 |
Deferred tax liability (asset), gross | 139.5 | 1,678.3 |
Valuation allowance | 147.9 | 94.9 |
Deferred income taxes, net | 287.4 | 1,773.2 |
Deferred tax assets | (2,670.6) | (898) |
Deferred tax liabilities | $ 2,958 | $ 2,671.2 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized Tax Benefits with Uncertain Timing for Deductibility | $ 0.6 | $ 0.6 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0.1 | 0.1 | 0.1 |
Valuation allowance | 140.9 | 94.9 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 7 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0.1 | 0.1 | $ 0.1 |
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 907 | 1,304.2 | |
Tax credit carryforwards | 46.1 | 34.6 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 1,802.4 | 1,990.6 | |
Tax credit carryforwards | $ 24.4 | $ 24.1 |
Income Taxes_ Reconciliation of
Income Taxes: Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Beginning balance | $ 5.6 | $ 4.6 | $ 18.3 |
Additions based on tax positions related to current year | 5 | 2.3 | 2.7 |
Additions based on tax positions of prior years | 0 | 0 | 0.7 |
Reductions for tax positions of prior years | (0.5) | (0.1) | (0.2) |
Reduction as a result of a lapse of the applicable statute of limitations | 0 | (0.2) | (16.9) |
Settlements | 0 | (1) | 0 |
Ending balance | 10.1 | 5.6 | 4.6 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 9.9 | 5 | 3.4 |
Unrecognized Tax Benefits with Uncertain Timing for Deductibility | 0.6 | 0.6 | |
Interest and penalties recognized on unrecognized tax benefits | 0.1 | 0.1 | 0.1 |
Interest and penalties accrued on unrecognized tax benefits | $ 0.1 | $ 0.1 | $ 0.1 |
Commitments and Contingencie113
Commitments and Contingencies (Minimum Rental Commitments for All Non-Cancelable Operating Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,016 | $ 113.4 | ||
2,017 | 85.2 | ||
2,018 | 73.3 | ||
2,019 | 56.2 | ||
2,020 | 38.3 | ||
Thereafter | 130.7 | ||
Total | 497.1 | ||
Rental expense | $ 128 | $ 134.5 | $ 120.2 |
Segment Information_ (Details)
Segment Information: (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Total segment revenues and sales | $ 4,919.6 | $ 5,035.4 | $ 5,149 |
Total segment costs and expenses | 3,061.4 | 3,035.5 | 3,044.4 |
Total segment income | 1,858.2 | 1,999.9 | 2,104.6 |
Consumer and Small Business - ILEC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment revenues and sales | 1,605.5 | 1,644.4 | 1,667.4 |
Total segment costs and expenses | 671 | 696.9 | 725 |
Total segment income | 934.5 | 947.5 | 942.4 |
Carrier [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment revenues and sales | 687.9 | 729.7 | 779.1 |
Total segment costs and expenses | 185.6 | 172.5 | 176.5 |
Total segment income | 502.3 | 557.2 | 602.6 |
Enterprise [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment revenues and sales | 2,067.2 | 2,003 | 1,937 |
Total segment costs and expenses | 1,826.6 | 1,757.4 | 1,677.3 |
Total segment income | 240.6 | 245.6 | 259.7 |
Small Business - CLEC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment revenues and sales | 559 | 658.3 | 765.5 |
Total segment costs and expenses | 378.2 | 408.7 | 465.6 |
Total segment income | $ 180.8 | $ 249.6 | $ 299.9 |
Segment Information_ Reconcilia
Segment Information: Reconciliation of Segment Revenues to Consolidated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total segment revenues and sales | $ 4,919.6 | $ 5,035.4 | $ 5,149 | ||||||||
Regulatory and other operating revenues and sales | 714.5 | 639.6 | 695.3 | ||||||||
Revenue and sales related to disposed businesses | 131.2 | 154.5 | 143.8 | ||||||||
Total revenues and sales | $ 1,427 | $ 1,498.6 | $ 1,421.1 | $ 1,418.6 | $ 1,443.1 | $ 1,455.5 | $ 1,466 | $ 1,464.9 | $ 5,765.3 | $ 5,829.5 | $ 5,988.1 |
Segment Information_ Reconci116
Segment Information: Reconciliation of Segment Income to Consolidated Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Total segment income | $ 1,858.2 | $ 1,999.9 | $ 2,104.6 | |||||||||
Revenue and sales related to disposed businesses | 131.2 | 154.5 | 143.8 | |||||||||
Regulatory and other operating revenues and sales | 714.5 | 639.6 | 695.3 | |||||||||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,340.9 | |||||||||
Other unassigned operating expenses | 739.7 | 798.9 | 502.2 | |||||||||
Operating expenses related to disposed businesses | 88.3 | 101.6 | 91.6 | |||||||||
Other income (expense), net | 57.5 | 0.1 | (12.5) | |||||||||
Gain on sale of data center business | 326.1 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | (36.4) | 0 | (28.5) | |||||||||
Interest expense | (813.2) | (571.8) | (627.7) | |||||||||
Income tax expense (benefit) | 16 | (25.1) | 105.3 | |||||||||
Discontinued operations | 0 | 0 | 6 | [1] | ||||||||
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | $ 27.4 | $ (39.5) | $ 241 | |
[1] | None of the income from discontinued operations was allocable to participating securities in 2013. |
Supplemental Guarantor Infor117
Supplemental Guarantor Information: Condensed Consolidating Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues and sales: | ||||||||||||
Service revenues | $ 5,598.6 | $ 5,647.6 | $ 5,775.5 | |||||||||
Product sales | 166.7 | 181.9 | 212.6 | |||||||||
Total revenues and sales | $ 1,427 | $ 1,498.6 | $ 1,421.1 | $ 1,418.6 | $ 1,443.1 | $ 1,455.5 | $ 1,466 | $ 1,464.9 | 5,765.3 | 5,829.5 | 5,988.1 | |
Costs and expenses: | ||||||||||||
Cost of services | 2,762 | 2,773.3 | 2,541.2 | |||||||||
Cost of products sold | 145.2 | 156.6 | 183.9 | |||||||||
Selling, general and administrative | 866.5 | 929.8 | 874.3 | |||||||||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,340.9 | |||||||||
Merger and integration costs | 95 | 40.4 | 30.2 | |||||||||
Restructuring charges | 20.7 | 35.9 | 8.6 | |||||||||
Total costs and expenses | 5,255.9 | 5,322.4 | 4,979.1 | |||||||||
Operating (loss) income | 131.7 | 178.5 | 79.3 | 119.9 | 20.5 | 151.6 | 167.2 | 167.8 | 509.4 | 507.1 | 1,009 | |
Other income (expense), net | 57.5 | 0.1 | (12.5) | |||||||||
Gain on sale of data center business | 326.1 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | (36.4) | 0 | (28.5) | |||||||||
Interest expense | (813.2) | (571.8) | (627.7) | |||||||||
Income (loss) from continuing operations before income taxes | 43.4 | (64.6) | 340.3 | |||||||||
Income tax expense (benefit) | 16 | (25.1) | 105.3 | |||||||||
Income from continuing operations | 27.4 | (39.5) | 235 | |||||||||
Discontinued operations | 0 | 0 | 6 | [1] | ||||||||
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | 27.4 | (39.5) | 241 | |
Comprehensive (loss) income | (269.1) | (55.9) | 263.1 | |||||||||
Consolidated | ||||||||||||
Revenues and sales: | ||||||||||||
Service revenues | 5,598.6 | 5,647.6 | 5,775.5 | |||||||||
Product sales | 166.7 | 181.9 | 212.6 | |||||||||
Total revenues and sales | 5,765.3 | 5,829.5 | 5,988.1 | |||||||||
Costs and expenses: | ||||||||||||
Cost of services | 2,762 | 2,773.3 | 2,541.2 | |||||||||
Cost of products sold | 145.2 | 156.6 | 183.9 | |||||||||
Selling, general and administrative | 864.5 | 927.5 | 873.8 | |||||||||
Depreciation and amortization | 1,366.5 | 1,386.4 | 1,340.9 | |||||||||
Merger and integration costs | 95 | 40.4 | 30.2 | |||||||||
Restructuring charges | 20.7 | 35.9 | 8.6 | |||||||||
Total costs and expenses | 5,253.9 | 5,320.1 | 4,978.6 | |||||||||
Operating (loss) income | 511.4 | 509.4 | 1,009.5 | |||||||||
Earnings (losses) from subsidiaries | 0 | 0 | 0 | |||||||||
Other income (expense), net | 57.5 | 0.1 | (12.5) | |||||||||
Gain on sale of data center business | 326.1 | 0 | 0 | |||||||||
Loss on early extinguishment of debt | (36.4) | 0 | (28.5) | |||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | |||||||||
Interest expense | (813.2) | (571.8) | (627.7) | |||||||||
Income (loss) from continuing operations before income taxes | 45.4 | (62.3) | 340.8 | |||||||||
Income tax expense (benefit) | 16.8 | (24.2) | 105.5 | |||||||||
Income from continuing operations | 28.6 | (38.1) | 235.3 | |||||||||
Discontinued operations | 0 | 0 | 6 | |||||||||
Net income (loss) | 28.6 | (38.1) | 241.3 | |||||||||
Comprehensive (loss) income | (267.9) | (54.5) | 263.4 | |||||||||
Windstream Services | ||||||||||||
Revenues and sales: | ||||||||||||
Service revenues | 0 | 0 | 0 | |||||||||
Product sales | 0 | 0 | 0 | |||||||||
Total revenues and sales | 0 | 0 | 0 | |||||||||
Costs and expenses: | ||||||||||||
Cost of services | 0 | 0 | 0 | |||||||||
Cost of products sold | 0 | 0 | 0 | |||||||||
Selling, general and administrative | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 18.3 | 21.9 | 25 | |||||||||
Merger and integration costs | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Total costs and expenses | 18.3 | 21.9 | 25 | |||||||||
Operating (loss) income | (18.3) | (21.9) | (25) | |||||||||
Earnings (losses) from subsidiaries | 239.6 | 217.3 | 526.1 | |||||||||
Other income (expense), net | 45.7 | (0.2) | 2.1 | |||||||||
Gain on sale of data center business | 0 | |||||||||||
Loss on early extinguishment of debt | (30.7) | (17.2) | ||||||||||
Intercompany interest income (expense) | 115.9 | 127.2 | 134.5 | |||||||||
Interest expense | (440.1) | (523.9) | (584.6) | |||||||||
Income (loss) from continuing operations before income taxes | (87.9) | (201.5) | 35.9 | |||||||||
Income tax expense (benefit) | (116.5) | (163.4) | (205.4) | |||||||||
Income from continuing operations | 241.3 | |||||||||||
Discontinued operations | 0 | |||||||||||
Net income (loss) | 28.6 | (38.1) | 241.3 | |||||||||
Comprehensive (loss) income | (267.9) | (54.5) | 263.4 | |||||||||
Guarantors | ||||||||||||
Revenues and sales: | ||||||||||||
Service revenues | 1,153.6 | 1,176 | 1,222.9 | |||||||||
Product sales | 145.3 | 154.7 | 182.6 | |||||||||
Total revenues and sales | 1,298.9 | 1,330.7 | 1,405.5 | |||||||||
Costs and expenses: | ||||||||||||
Cost of services | 490.7 | 517 | 476.2 | |||||||||
Cost of products sold | 125 | 131.2 | 143.5 | |||||||||
Selling, general and administrative | 184 | 165.7 | 141.9 | |||||||||
Depreciation and amortization | 333.4 | 337.5 | 325.4 | |||||||||
Merger and integration costs | 0 | 0 | 0 | |||||||||
Restructuring charges | 9.4 | 8.1 | 2.1 | |||||||||
Total costs and expenses | 1,142.5 | 1,159.5 | 1,089.1 | |||||||||
Operating (loss) income | 156.4 | 171.2 | 316.4 | |||||||||
Earnings (losses) from subsidiaries | (149.9) | (210.3) | (62) | |||||||||
Other income (expense), net | 0.8 | 162.9 | 168.3 | |||||||||
Gain on sale of data center business | 0 | |||||||||||
Loss on early extinguishment of debt | (5.3) | (11.3) | ||||||||||
Intercompany interest income (expense) | (46.5) | (53.7) | (61.1) | |||||||||
Interest expense | (122) | (44.8) | (46.7) | |||||||||
Income (loss) from continuing operations before income taxes | (166.5) | 25.3 | 303.6 | |||||||||
Income tax expense (benefit) | (16.9) | 99.8 | 150.2 | |||||||||
Income from continuing operations | 153.4 | |||||||||||
Discontinued operations | 0 | |||||||||||
Net income (loss) | (149.6) | (74.5) | 153.4 | |||||||||
Comprehensive (loss) income | (149.6) | (74.5) | 153.4 | |||||||||
Non-Guarantors | ||||||||||||
Revenues and sales: | ||||||||||||
Service revenues | 4,470.6 | 4,496.6 | 4,583 | |||||||||
Product sales | 21.4 | 27.2 | 30 | |||||||||
Total revenues and sales | 4,492 | 4,523.8 | 4,613 | |||||||||
Costs and expenses: | ||||||||||||
Cost of services | 2,293.5 | 2,277 | 2,090.6 | |||||||||
Cost of products sold | 20.2 | 25.4 | 40.4 | |||||||||
Selling, general and administrative | 683.9 | 766.1 | 736.7 | |||||||||
Depreciation and amortization | 1,014.8 | 1,027 | 990.5 | |||||||||
Merger and integration costs | 95 | 40.4 | 30.2 | |||||||||
Restructuring charges | 11.3 | 27.8 | 6.5 | |||||||||
Total costs and expenses | 4,118.7 | 4,163.7 | 3,894.9 | |||||||||
Operating (loss) income | 373.3 | 360.1 | 718.1 | |||||||||
Earnings (losses) from subsidiaries | (7.8) | 4 | 121.6 | |||||||||
Other income (expense), net | 11 | (162.6) | (182.9) | |||||||||
Gain on sale of data center business | 326.1 | |||||||||||
Loss on early extinguishment of debt | (0.4) | 0 | ||||||||||
Intercompany interest income (expense) | (69.4) | (73.5) | (73.4) | |||||||||
Interest expense | (251.1) | (3.1) | 3.6 | |||||||||
Income (loss) from continuing operations before income taxes | 381.7 | 124.9 | 587 | |||||||||
Income tax expense (benefit) | 150.2 | 39.4 | 160.7 | |||||||||
Income from continuing operations | 426.3 | |||||||||||
Discontinued operations | 6 | |||||||||||
Net income (loss) | 231.5 | 85.5 | 432.3 | |||||||||
Comprehensive (loss) income | 231.5 | 85.5 | 432.3 | |||||||||
Eliminations | ||||||||||||
Revenues and sales: | ||||||||||||
Service revenues | (25.6) | (25) | (30.4) | |||||||||
Product sales | 0 | 0 | 0 | |||||||||
Total revenues and sales | (25.6) | (25) | (30.4) | |||||||||
Costs and expenses: | ||||||||||||
Cost of services | (22.2) | (20.7) | (25.6) | |||||||||
Cost of products sold | 0 | 0 | 0 | |||||||||
Selling, general and administrative | (3.4) | (4.3) | (4.8) | |||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Merger and integration costs | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Total costs and expenses | (25.6) | (25) | (30.4) | |||||||||
Operating (loss) income | 0 | 0 | 0 | |||||||||
Earnings (losses) from subsidiaries | (81.9) | (11) | (585.7) | |||||||||
Other income (expense), net | 0 | 0 | 0 | |||||||||
Gain on sale of data center business | 0 | |||||||||||
Loss on early extinguishment of debt | 0 | 0 | ||||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Income (loss) from continuing operations before income taxes | (81.9) | (11) | (585.7) | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
Income from continuing operations | (585.7) | |||||||||||
Discontinued operations | 0 | |||||||||||
Net income (loss) | (81.9) | (11) | (585.7) | |||||||||
Comprehensive (loss) income | $ (81.9) | $ (11) | $ (585.7) | |||||||||
[1] | None of the income from discontinued operations was allocable to participating securities in 2013. |
Supplemental Guarantor Infor118
Supplemental Guarantor Information: Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ||||
Cash and cash equivalents | $ 31.3 | $ 27.8 | $ 48.2 | $ 132 |
Restricted cash | 0 | 6.7 | ||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 643.9 | 635.5 | ||
Inventories | 79.5 | 63.7 | ||
Prepaid expenses and other | 120.6 | 164.6 | ||
Total current assets | 875.3 | 898.3 | ||
Goodwill | 4,213.6 | 4,352.8 | ||
Other intangibles, net | 1,504.7 | 1,764 | ||
Net property, plant and equipment | 5,279.8 | 5,412.3 | ||
Investment in CS&L common stock | 549.2 | 0 | ||
Other assets | 95.5 | 92.9 | ||
Total Assets | 12,518.1 | 12,520.3 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 5.9 | 717.5 | ||
Current portion of long-term lease obligations | 152.7 | 0 | ||
Accounts payable | 430.1 | 403.3 | ||
Advance payments and customer deposits | 193.9 | 214.7 | ||
Accrued taxes | 84.1 | 95.2 | ||
Accrued interest | 78.4 | 102.5 | ||
Other current liabilities | 306.9 | 357.4 | ||
Total current liabilities | 1,267.1 | 2,043 | ||
Long-term debt | 5,164.6 | 7,846.5 | ||
Long-term lease obligations | 5,000.4 | 81 | ||
Deferred income taxes | 287.4 | 1,773.2 | ||
Other liabilities | 492.2 | 551.8 | ||
Total liabilities | $ 12,211.7 | $ 12,295.5 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | $ 0 | $ 0 | ||
Additional paid-in capital | 602.9 | 252.2 | ||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | 28.5 | |
(Accumulated deficit) retained earnings | (12.1) | (39.5) | ||
Total member equity | 306.4 | 224.8 | 840.2 | 1,104.8 |
Total Liabilities and Member Equity | 12,518.1 | 12,520.3 | ||
Consolidated | ||||
Current Assets: | ||||
Cash and cash equivalents | 31.3 | 27.8 | 48.2 | 132 |
Restricted cash | 0 | 6.7 | ||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 643.9 | 635.5 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 79.5 | 63.7 | ||
Prepaid expenses and other | 120.6 | 164.6 | ||
Total current assets | 875.3 | 898.3 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 4,213.6 | 4,352.8 | ||
Other intangibles, net | 1,504.7 | 1,764 | ||
Net property, plant and equipment | 5,279.8 | 5,412.3 | ||
Investment in CS&L common stock | 549.2 | 0 | ||
Deferred income taxes | 0 | |||
Other assets | 95.5 | 92.9 | ||
Total Assets | 12,518.1 | 12,520.3 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 5.9 | 717.5 | ||
Current portion of long-term lease obligations | 152.7 | 0 | ||
Accounts payable | 430.1 | 403.3 | ||
Affiliates payable, net | 15.1 | 152.4 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 193.9 | 214.7 | ||
Accrued taxes | 84.1 | 95.2 | ||
Accrued interest | 78.4 | 102.5 | ||
Other current liabilities | 306.9 | 357.4 | ||
Total current liabilities | 1,267.1 | 2,043 | ||
Long-term debt | 5,164.6 | 7,846.5 | ||
Long-term lease obligations | 5,000.4 | 81 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 287.4 | 1,773.2 | ||
Other liabilities | 492.2 | 551.8 | ||
Total liabilities | $ 12,211.7 | $ 12,295.5 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | $ 0 | $ 0 | ||
Additional paid-in capital | 600.3 | 250.8 | ||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | ||
(Accumulated deficit) retained earnings | (9.5) | (38.1) | ||
Total member equity | 306.4 | 224.8 | 840.5 | 1,104.8 |
Total Liabilities and Member Equity | 12,518.1 | 12,520.3 | ||
Windstream Services | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | 13.7 | 57.5 |
Restricted cash | 6.7 | |||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 0 | 0 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 321.8 | 35.5 | ||
Total current assets | 321.8 | 42.2 | ||
Investments in consolidated subsidiaries | 6,332.3 | 10,001.3 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 1,636.7 | 1,649.5 | ||
Other intangibles, net | 554.3 | 590.7 | ||
Net property, plant and equipment | 8.4 | 9.8 | ||
Investment in CS&L common stock | 549.2 | |||
Deferred income taxes | 0 | |||
Other assets | 14.2 | 16.7 | ||
Total Assets | 9,416.9 | 12,310.2 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 5.9 | 717.4 | ||
Current portion of long-term lease obligations | 0 | |||
Accounts payable | 0 | 2.1 | ||
Affiliates payable, net | 3,069.6 | 3,277 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0.3 | 0.2 | ||
Accrued interest | 75.3 | 94.3 | ||
Other current liabilities | 42.6 | 60.8 | ||
Total current liabilities | 3,193.7 | 4,151.8 | ||
Long-term debt | 5,065.1 | 7,275.9 | ||
Long-term lease obligations | 0 | 0 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 803.9 | 591.2 | ||
Other liabilities | 47.8 | 66.5 | ||
Total liabilities | $ 9,110.5 | $ 12,085.4 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | $ 0 | $ 0 | ||
Additional paid-in capital | 600.3 | 250.8 | ||
Accumulated other comprehensive (loss) income | (284.4) | 12.1 | ||
(Accumulated deficit) retained earnings | (9.5) | (38.1) | ||
Total member equity | 306.4 | 224.8 | ||
Total Liabilities and Member Equity | 9,416.9 | 12,310.2 | ||
Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 1.1 | 3.8 | 3.1 | 5.1 |
Restricted cash | 0 | |||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 218.6 | 266.5 | ||
Notes receivable - affiliate | 4.8 | 4.8 | ||
Affiliates receivable, net | 619.1 | 969 | ||
Inventories | 69.1 | 56.2 | ||
Prepaid expenses and other | 32.4 | 32.4 | ||
Total current assets | 945.1 | 1,332.7 | ||
Investments in consolidated subsidiaries | 320.4 | 747.9 | ||
Notes receivable - affiliate | 314.1 | 317.7 | ||
Goodwill | 1,343 | 1,469.4 | ||
Other intangibles, net | 282.8 | 355.2 | ||
Net property, plant and equipment | 1,241.3 | 1,329.5 | ||
Investment in CS&L common stock | 0 | |||
Deferred income taxes | 301.2 | |||
Other assets | 56.3 | 37.2 | ||
Total Assets | 4,804.2 | 5,589.6 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of long-term lease obligations | 44.4 | |||
Accounts payable | 92.9 | 113 | ||
Affiliates payable, net | 0 | 0 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 26.3 | 36.5 | ||
Accrued taxes | 11.9 | 25 | ||
Accrued interest | 1.9 | 5.8 | ||
Other current liabilities | 47.5 | 26.5 | ||
Total current liabilities | 224.9 | 206.8 | ||
Long-term debt | 99.5 | 568.9 | ||
Long-term lease obligations | 1,455.2 | 24 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 0 | 193.1 | ||
Other liabilities | 25.1 | 28.2 | ||
Total liabilities | $ 1,804.7 | $ 1,021 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | $ 39.4 | $ 39.4 | ||
Additional paid-in capital | 3,128.2 | 4,370 | ||
Accumulated other comprehensive (loss) income | 0 | 0 | ||
(Accumulated deficit) retained earnings | (168.1) | 159.2 | ||
Total member equity | 2,999.5 | 4,568.6 | ||
Total Liabilities and Member Equity | 4,804.2 | 5,589.6 | ||
Non-Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 33.5 | 50 | 31.4 | 69.4 |
Restricted cash | 0 | |||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 425.3 | 369 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 2,435.4 | 2,155.6 | ||
Inventories | 10.4 | 7.5 | ||
Prepaid expenses and other | 64.6 | 96.7 | ||
Total current assets | 2,969.2 | 2,678.8 | ||
Investments in consolidated subsidiaries | 242.7 | 232.4 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 1,233.9 | 1,233.9 | ||
Other intangibles, net | 667.6 | 818.1 | ||
Net property, plant and equipment | 4,030.1 | 4,073 | ||
Investment in CS&L common stock | 0 | |||
Deferred income taxes | 215.3 | |||
Other assets | 25 | 39 | ||
Total Assets | 9,383.8 | 9,075.2 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0.1 | ||
Current portion of long-term lease obligations | 108.3 | |||
Accounts payable | 337.2 | 288.2 | ||
Affiliates payable, net | 0 | 0 | ||
Notes payable - affiliate | 4.8 | 4.8 | ||
Advance payments and customer deposits | 167.6 | 178.2 | ||
Accrued taxes | 370.1 | 70 | ||
Accrued interest | 1.2 | 2.4 | ||
Other current liabilities | 216.8 | 270.1 | ||
Total current liabilities | 1,206 | 813.8 | ||
Long-term debt | 0 | 1.7 | ||
Long-term lease obligations | 3,545.2 | 57 | ||
Notes payable - affiliate | 314.1 | 317.7 | ||
Deferred income taxes | 0 | 988.9 | ||
Other liabilities | 419.3 | 457.1 | ||
Total liabilities | $ 5,484.6 | $ 2,636.2 | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | $ 81.9 | $ 81.9 | ||
Additional paid-in capital | 848 | 3,426.9 | ||
Accumulated other comprehensive (loss) income | 2.8 | 14.5 | ||
(Accumulated deficit) retained earnings | 2,966.5 | 2,915.7 | ||
Total member equity | 3,899.2 | 6,439 | ||
Total Liabilities and Member Equity | 9,383.8 | 9,075.2 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | (3.3) | (26) | $ 0 | $ 0 |
Restricted cash | 0 | |||
Accounts receivable (less allowance for doubtful accounts of $33.1 and $43.4, respectively) | 0 | 0 | ||
Notes receivable - affiliate | (4.8) | (4.8) | ||
Affiliates receivable, net | (3,054.5) | (3,124.6) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | (298.2) | 0 | ||
Total current assets | (3,360.8) | (3,155.4) | ||
Investments in consolidated subsidiaries | (6,895.4) | (10,981.6) | ||
Notes receivable - affiliate | (314.1) | (317.7) | ||
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 | (516.5) | |||
Other assets | 0 | 0 | ||
Total Assets | (11,086.8) | (14,454.7) | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of long-term lease obligations | 0 | |||
Accounts payable | 0 | 0 | ||
Affiliates payable, net | (3,054.5) | (3,124.6) | ||
Notes payable - affiliate | (4.8) | (4.8) | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | (298.2) | 0 | ||
Accrued interest | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (3,357.5) | (3,129.4) | ||
Long-term debt | 0 | 0 | ||
Long-term lease obligations | 0 | 0 | ||
Notes payable - affiliate | (314.1) | (317.7) | ||
Deferred income taxes | (516.5) | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | $ (4,188.1) | $ (3,447.1) | ||
Commitments and Contingencies (See Note 14) | ||||
Member Equity: | ||||
Common stock | $ (121.3) | $ (121.3) | ||
Additional paid-in capital | (3,976.2) | (7,796.9) | ||
Accumulated other comprehensive (loss) income | (2.8) | (14.5) | ||
(Accumulated deficit) retained earnings | (2,798.4) | (3,074.9) | ||
Total member equity | (6,898.7) | (11,007.6) | ||
Total Liabilities and Member Equity | $ (11,086.8) | $ (14,454.7) |
Supplemental Guarantor Infor119
Supplemental Guarantor Information: Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | $ 1,026.6 | $ 1,467.3 | $ 1,519.4 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (1,055.3) | (786.5) | (841) |
Broadband network expansion funded by stimulus grants | 0 | (13.3) | (36.1) |
Changes in restricted cash | 6.7 | 3 | 16.8 |
Grant funds received for broadband stimulus projects | 23.5 | 33.2 | 68 |
Grant funds received from Connect America Fund - Phase I | 0 | 26 | 60.7 |
Network expansion funded by Connect America Fund - Phase I | (73.9) | (12.8) | 0 |
Acquisition of a business | 0 | (22.6) | 0 |
Dispositions of software business | 574.2 | 0 | 30 |
Other, net | 2.8 | 3.9 | (6) |
Net cash provided from (used in) investing activities | (522) | (769.1) | (707.6) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | (369.2) | (602.2) | (593.6) |
Payment received from CS&L in spin-off | 1,035 | 0 | 0 |
Funding received from CS&L for tenant capital improvements | 43.1 | 0 | 0 |
Repayments of debt and swaps | (3,350.9) | (1,395.4) | (5,161) |
Proceeds of debt issuance | 2,335 | 1,315 | 4,919.6 |
Debt issuance costs | (4.3) | 0 | (30) |
Payments under long-term lease obligations | (102.6) | 0 | 0 |
Payments under capital lease obligations | (31.5) | (26.8) | (23.9) |
Other, net | (9.5) | (9.2) | (6.7) |
Net cash provided from (used in) financing activities | (501.1) | (718.6) | (895.6) |
(Decrease) increase in cash and cash equivalents | 3.5 | (20.4) | (83.8) |
Cash and Cash Equivalents: | |||
Beginning of period | 27.8 | 48.2 | 132 |
End of period | 31.3 | 27.8 | 48.2 |
Consolidated | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 1,027.8 | 1,468.7 | 1,519.8 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (1,055.3) | (786.5) | (841) |
Broadband network expansion funded by stimulus grants | 0 | (13.3) | (36.1) |
Changes in restricted cash | 6.7 | 3 | 16.8 |
Grant funds received for broadband stimulus projects | 23.5 | 33.2 | 68 |
Grant funds received from Connect America Fund - Phase I | 0 | 26 | 60.7 |
Network expansion funded by Connect America Fund - Phase I | (73.9) | (12.8) | 0 |
Acquisition of a business | 0 | (22.6) | 0 |
Dispositions of software business | 574.2 | 0 | 30 |
Other, net | 2.8 | 3.9 | (6) |
Net cash provided from (used in) investing activities | (522) | (769.1) | (707.6) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | (444.6) |
Distributions to Windstream Holdings, Inc. | (416.6) | (603.6) | (149.4) |
Payment received from CS&L in spin-off | 1,035 | 0 | 0 |
Funding received from CS&L for tenant capital improvements | 43.1 | 0 | 0 |
Repayments of debt and swaps | (3,350.9) | (1,395.4) | (5,161) |
Proceeds of debt issuance | 2,335 | 1,315 | 4,919.6 |
Debt issuance costs | (4.3) | 0 | (30) |
Intercompany transactions, net | 0 | 0 | 0 |
Payments under long-term lease obligations | (102.6) | 0 | 0 |
Payments under capital lease obligations | (31.5) | (26.8) | (23.9) |
Other, net | (9.5) | (9.2) | (6.7) |
Net cash provided from (used in) financing activities | (502.3) | (720) | (896) |
(Decrease) increase in cash and cash equivalents | 3.5 | (20.4) | (83.8) |
Cash and Cash Equivalents: | |||
Beginning of period | 27.8 | 48.2 | 132 |
End of period | 31.3 | 27.8 | 48.2 |
Windstream Services | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | (337.4) | (129.2) | (186.2) |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (1) | (1.8) | (2) |
Broadband network expansion funded by stimulus grants | 0 | 0 | |
Changes in restricted cash | 6.7 | 3 | 15.3 |
Grant funds received for broadband stimulus projects | 23.5 | 33.2 | 68 |
Grant funds received from Connect America Fund - Phase I | 0 | 0 | |
Network expansion funded by Connect America Fund - Phase I | 0 | 0 | |
Acquisition of a business | (22.6) | ||
Dispositions of software business | 0 | 0 | |
Other, net | (9.6) | 0 | 0 |
Net cash provided from (used in) investing activities | 19.6 | 11.8 | 81.3 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | (444.6) | ||
Distributions to Windstream Holdings, Inc. | (416.6) | (603.6) | (149.4) |
Payment received from CS&L in spin-off | 1,035 | ||
Funding received from CS&L for tenant capital improvements | 0 | ||
Repayments of debt and swaps | (2,898.9) | (1,394.4) | (4,500.9) |
Proceeds of debt issuance | 2,335 | 1,315 | 4,919.6 |
Debt issuance costs | (4.3) | (30) | |
Intercompany transactions, net | 277.1 | 795.9 | 273.1 |
Payments under long-term lease obligations | 0 | ||
Payments under capital lease obligations | 0 | 0 | 0 |
Other, net | (9.5) | (9.2) | (6.7) |
Net cash provided from (used in) financing activities | 317.8 | 103.7 | 61.1 |
(Decrease) increase in cash and cash equivalents | 0 | (13.7) | (43.8) |
Cash and Cash Equivalents: | |||
Beginning of period | 0 | 13.7 | 57.5 |
End of period | 0 | 0 | 13.7 |
Guarantors | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 256.1 | 448.1 | 509.9 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (180.4) | (116.6) | (157.5) |
Broadband network expansion funded by stimulus grants | (0.3) | (4.9) | |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Grant funds received from Connect America Fund - Phase I | 9.4 | 21.9 | |
Network expansion funded by Connect America Fund - Phase I | (18.6) | (1.3) | |
Acquisition of a business | 0 | ||
Dispositions of software business | 0 | 0 | |
Other, net | 0.1 | 0 | 0 |
Net cash provided from (used in) investing activities | (198.9) | (108.8) | (140.5) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 | 0 |
Payment received from CS&L in spin-off | 0 | ||
Funding received from CS&L for tenant capital improvements | 19.6 | ||
Repayments of debt and swaps | (450) | 0 | (650) |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | 406.7 | (341.6) | 276.3 |
Payments under long-term lease obligations | (35.6) | ||
Payments under capital lease obligations | (4.2) | (0.6) | (1.3) |
Other, net | 3.6 | 3.6 | 3.6 |
Net cash provided from (used in) financing activities | (59.9) | (338.6) | (371.4) |
(Decrease) increase in cash and cash equivalents | (2.7) | 0.7 | (2) |
Cash and Cash Equivalents: | |||
Beginning of period | 3.8 | 3.1 | 5.1 |
End of period | 1.1 | 3.8 | 3.1 |
Non-Guarantors | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 1,109.1 | 1,149.8 | 1,196.1 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (873.9) | (668.1) | (681.5) |
Broadband network expansion funded by stimulus grants | (13) | (31.2) | |
Changes in restricted cash | 0 | 0 | 1.5 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Grant funds received from Connect America Fund - Phase I | 16.6 | 38.8 | |
Network expansion funded by Connect America Fund - Phase I | (55.3) | (11.5) | |
Acquisition of a business | 0 | ||
Dispositions of software business | 574.2 | 30 | |
Other, net | 12.3 | 3.9 | (6) |
Net cash provided from (used in) investing activities | (342.7) | (672.1) | (648.4) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 | 0 |
Payment received from CS&L in spin-off | 0 | ||
Funding received from CS&L for tenant capital improvements | 23.5 | ||
Repayments of debt and swaps | (2) | (1) | (10.1) |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | (706.5) | (428.3) | (549.4) |
Payments under long-term lease obligations | (67) | ||
Payments under capital lease obligations | (27.3) | (26.2) | (22.6) |
Other, net | (3.6) | (3.6) | (3.6) |
Net cash provided from (used in) financing activities | (782.9) | (459.1) | (585.7) |
(Decrease) increase in cash and cash equivalents | (16.5) | 18.6 | (38) |
Cash and Cash Equivalents: | |||
Beginning of period | 50 | 31.4 | 69.4 |
End of period | 33.5 | 50 | 31.4 |
Eliminations | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 0 | 0 | 0 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | 0 | 0 | 0 |
Broadband network expansion funded by stimulus grants | 0 | 0 | |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Grant funds received from Connect America Fund - Phase I | 0 | 0 | |
Network expansion funded by Connect America Fund - Phase I | 0 | 0 | |
Acquisition of a business | 0 | ||
Dispositions of software business | 0 | 0 | |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) investing activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 | 0 |
Payment received from CS&L in spin-off | 0 | ||
Funding received from CS&L for tenant capital improvements | 0 | ||
Repayments of debt and swaps | 0 | 0 | 0 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | $ 0 | |
Intercompany transactions, net | 22.7 | (26) | |
Payments under long-term lease obligations | 0 | ||
Payments under capital lease obligations | 0 | 0 | $ 0 |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | 22.7 | (26) | 0 |
(Decrease) increase in cash and cash equivalents | 22.7 | (26) | 0 |
Cash and Cash Equivalents: | |||
Beginning of period | (26) | 0 | 0 |
End of period | $ (3.3) | $ (26) | $ 0 |
Discontinued Operations_ (Detai
Discontinued Operations: (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 05, 2013 | ||
Results of Software Business | |||||
Net income from discontinued operations | $ 0 | $ 0 | $ 6 | [1] | |
PAETEC Holding Corp. | Software Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of acquired assets | $ 30 | ||||
Results of Software Business | |||||
Revenues and sales | 16.9 | ||||
Operating income from discontinued operations | 1.4 | ||||
Gain on sale of discontinued operations | 14.4 | ||||
Income before tax from discontinued operations | 15.8 | ||||
Income tax expense | 9.8 | ||||
Net income from discontinued operations | $ 6 | ||||
[1] | None of the income from discontinued operations was allocable to participating securities in 2013. |
Quarterly Financial Informat121
Quarterly Financial Information - (Unaudited): (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||
Revenues and sales | $ 1,427 | $ 1,498.6 | $ 1,421.1 | $ 1,418.6 | $ 1,443.1 | $ 1,455.5 | $ 1,466 | $ 1,464.9 | $ 5,765.3 | $ 5,829.5 | $ 5,988.1 | ||||||||||
Operating income | 131.7 | 178.5 | 79.3 | 119.9 | 20.5 | 151.6 | 167.2 | 167.8 | 509.4 | 507.1 | 1,009 | ||||||||||
Net income (loss) | $ 140.5 | $ (7.2) | $ (111.2) | $ 5.3 | $ (77.5) | $ 8 | $ 14 | $ 16 | $ 27.4 | $ (39.5) | $ 241 | ||||||||||
Basic and diluted earnings (loss) per share: (a) | |||||||||||||||||||||
Net income (loss) | $ 1.41 | [1] | $ (0.08) | [1] | $ (1.13) | [1] | $ 0.05 | [1] | $ (0.80) | [1] | $ 0.07 | [1] | $ 0.13 | [1] | $ 0.15 | [1] | $ 0.24 | [1] | $ (0.45) | [1] | $ 2.41 |
Notes to Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Gain on sale of data center business | $ 326.1 | $ 0 | $ 0 | ||||||||||||||||||
Gain (loss) on disposition of business, net of tax | 199.7 | ||||||||||||||||||||
CAF Phase II Incremental Support | 72.8 | ||||||||||||||||||||
Costs related to REIT spin-off, net of tax | 54.5 | ||||||||||||||||||||
Pension Plan, Defined Benefit | |||||||||||||||||||||
Notes to Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Defined Benefit Plan Recognized Net Actuarial Loss (Gain) | 8.7 | 128.6 | (110.4) | ||||||||||||||||||
Defined benefit plan, net periodic benefit cost, after tax | 5.3 | 79.3 | |||||||||||||||||||
Long-term Lease Obligation, Telecommunications Network Assets [Domain] | |||||||||||||||||||||
Notes to Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Interest expense related to long-term lease obligations | $ 127.4 | $ 128.2 | $ 96 | $ 351.6 | $ 0 | $ 0 | |||||||||||||||
Interest expense related to long-term lease obligations, net of tax | $ 78 | $ 78.5 | $ 58.8 | ||||||||||||||||||
[1] | Quarterly earnings (loss) per share amounts may not add to full-year earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |
Stock Repurchased, Subsequent to Year End | $ 28.8 |
Stock Repurchase Program, Authorized Amount | 75 |
Partial Repurchase of 2017, 2021, 2022, 2023 Notes [Member] | Unsecured Debt [Member] | |
Subsequent Event [Line Items] | |
Debt Repurchased, Face Amount, Subsequent to Year End | 154.2 |
2017 Notes – 7.875%, due November 1, 2017 (b) | Unsecured Debt [Member] | |
Subsequent Event [Line Items] | |
Debt Repurchased, Face Amount, Subsequent to Year End | 93.5 |
2021 Notes – 7.750%, due October 1, 2021 (b) | Unsecured Debt [Member] | |
Subsequent Event [Line Items] | |
Debt Repurchased, Face Amount, Subsequent to Year End | 33.1 |
2022 Notes – 7.500%, due June 1, 2022 (b) | Unsecured Debt [Member] | |
Subsequent Event [Line Items] | |
Debt Repurchased, Face Amount, Subsequent to Year End | 17 |
2023 Notes – 7.500%, due April 1, 2023 (b) | Unsecured Debt [Member] | |
Subsequent Event [Line Items] | |
Debt Repurchased, Face Amount, Subsequent to Year End | $ 10.6 |