Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 13, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Windstream Holdings, Inc. | |
Entity Central Index Key | 0001282266 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 42,997,926 | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Current Reporting Status | Yes | |
Windstream Services, LLC | ||
Entity Information [Line Items] | ||
Entity Registrant Name | Windstream Services, LLC | |
Entity Central Index Key | 0001585644 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Current Reporting Status | Yes |
WINDSTREAM HOLDINGS, INC. CONSO
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues and sales: | ||
Total revenues and sales | $ 1,320.6 | $ 1,454.3 |
Costs and expenses: | ||
Selling, general and administrative | 198.3 | 228.8 |
Depreciation and amortization | 271.5 | 381.8 |
Goodwill impairment | 2,339 | 0 |
Merger, integration and other costs | 4.6 | 7.3 |
Restructuring charges | 10.5 | 13.7 |
Total costs and expenses | 3,701.9 | 1,385.3 |
Operating (loss) income | (2,381.3) | 69 |
Other expense, net | (1) | (2.3) |
Reorganization items, net | (104.9) | 0 |
Interest expense (contractual interest for the three months ended March 31, 2019 of $140.7) | (91.9) | (223.1) |
Loss before income taxes | (2,579.1) | (156.4) |
Income tax benefit | 268.8 | 35 |
Net loss | $ (2,310.3) | $ (121.4) |
Basic and diluted loss per share: | ||
Net loss | $ (54.26) | $ (3.25) |
Services [Member] | ||
Revenues and sales: | ||
Service revenues | $ 1,302.2 | $ 1,435.4 |
Product sales | 1,302.2 | 1,435.4 |
Costs and expenses: | ||
Cost of services (exclusive of depreciation and amortization included below) | 861.1 | 736.9 |
Cost of products sold | 861.1 | 736.9 |
Product [Member] | ||
Revenues and sales: | ||
Service revenues | 18.4 | 18.9 |
Product sales | 18.4 | 18.9 |
Costs and expenses: | ||
Cost of services (exclusive of depreciation and amortization included below) | 16.9 | 16.8 |
Cost of products sold | $ 16.9 | $ 16.8 |
WINDSTREAM HOLDINGS, INC. CON_2
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 140.7 |
WINDSTREAM HOLDINGS, INC. CON_3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net loss | $ (2,310.3) | $ (121.4) |
Interest rate swaps: | ||
Unrealized (loss) gain on designated interest rate swaps | (3.2) | 14.8 |
Amortization of net unrealized (gain) loss on de-designated interest rate swaps | (1.2) | 0.9 |
Income tax benefit (expense) | 1.1 | (4) |
Change in interest rate swaps | (3.3) | 11.7 |
Amounts included in net periodic benefit cost: | ||
Amortization of net actuarial loss | 0 | 0.1 |
Amortization of prior service credits | (0.4) | (1.3) |
Income tax benefit | 0.1 | 0.3 |
Change in postretirement and pension plans | (0.3) | (0.9) |
Other comprehensive (loss) income | (3.6) | 10.8 |
Comprehensive loss | $ (2,313.9) | $ (110.6) |
WINDSTREAM HOLDINGS, INC. CON_4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | |||||
Cash and cash equivalents | $ 432 | $ 355.7 | |||
Restricted cash | 7.7 | 5.3 | |||
Accounts receivable (less allowance for doubtful accounts of $23.0 and $24.8, respectively) | 633.4 | 653.1 | |||
Inventories | 79.8 | 82.4 | |||
Prepaid expenses and other | 195.6 | 159.7 | |||
Total current assets | 1,348.5 | 1,256.2 | |||
Goodwill | 434.7 | 2,773.7 | |||
Other intangibles, net | 1,174.5 | 1,213.1 | |||
Net property, plant and equipment | 3,627.8 | $ 3,648 | 4,920.9 | ||
Operating lease right-of-use assets | 4,187.4 | 4,239.1 | 0 | ||
Other assets | 84.3 | 94 | |||
Total Assets | 10,857.2 | 10,257.9 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 3,514.8 | 5,728.1 | |||
Current portion of long-term lease obligations | 0 | 0 | 4,570.3 | ||
Accounts payable | 271.9 | 503.6 | |||
Advance payments and customer deposits | 163.9 | 180.6 | |||
Accrued taxes | 64.9 | 87.4 | |||
Accrued interest | 0.9 | 43.5 | |||
Other current liabilities | 120.4 | 328.8 | 344.2 | ||
Total current liabilities | 4,136.8 | 11,457.7 | |||
Long-term lease obligations | 0 | 72.8 | |||
Deferred income taxes | 0 | 405.1 | 104.3 | ||
Other liabilities | 21.4 | 483.6 | 542.4 | ||
Liabilities subject to compromise | 7,891.9 | 0 | |||
Total liabilities | 12,050.1 | 12,177.2 | |||
Commitments and Contingencies (See Note 17) | |||||
Shareholders’ Deficit: | |||||
Common stock, $0.0001 par value, 75.0 shares authorized, 43.0 and 42.9 shares issued and outstanding, respectively | 0 | 0 | |||
Additional paid-in capital | 1,252.4 | 1,250.4 | |||
Accumulated other comprehensive income | 32 | 35.6 | |||
Accumulated deficit | (2,477.3) | $ (167) | (3,205.3) | ||
Total shareholders’ deficit | (1,192.9) | (1,919.3) | $ (1,337.2) | $ (1,298.9) | |
Total Liabilities and Shareholders’ Deficit | $ 10,857.2 | $ 10,257.9 |
WINDSTREAM HOLDINGS, INC. CON_5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 23 | $ 24.8 |
Shareholders’ Deficit: | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75 | 75 |
Common stock, shares issued | 43 | 42.9 |
Common stock, shares outstanding | 43 | 42.9 |
WINDSTREAM HOLDINGS, INC. CON_6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (2,310.3) | $ (121.4) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 271.5 | 381.8 |
Provision for doubtful accounts | 9.7 | 5.6 |
Share-based compensation expense | 2 | 9.9 |
Non-cash reorganization items, net | 45.7 | 0 |
Deferred income taxes | (268.2) | (34.7) |
Goodwill impairment | 2,339 | 0 |
Other, net | 20.3 | 10.8 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (16.1) | 43.7 |
Prepaid income taxes | (1.8) | (3) |
Prepaid expenses and other | (55) | (15.5) |
Accounts payable | 226.4 | (36.3) |
Accrued interest | (11.7) | 34.7 |
Accrued taxes | (2.6) | (16.7) |
Other current liabilities | (31) | (25.5) |
Other liabilities | (5.7) | (1.7) |
Other, net | 6 | 7.6 |
Net cash provided from operating activities | 218.2 | 239.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (192.8) | (217.6) |
Acquisition of MASS, net of cash acquired | 0 | (37.6) |
Other, net | (4.2) | 0.4 |
Net cash used in investing activities | (197) | (254.8) |
Cash Flows from Financing Activities: | ||
Repayments of debt and swaps | (372.4) | (217.1) |
Proceeds from debt issuance | 455 | 313 |
Debt issuance costs | (14.7) | (2.8) |
Payments under long-term lease obligations | (0.1) | (44.9) |
Payments under finance and capital lease obligations | (9.8) | (13.1) |
Other, net | (0.5) | (2.5) |
Net cash provided from financing activities | 57.5 | 32.6 |
Increase in cash, cash equivalents and restricted cash | 78.7 | 17.1 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 439.7 | 60.5 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 103.3 | 184.9 |
Income taxes (refunded) paid, net | (1.6) | $ (3.2) |
Reorganization items paid | $ 40.8 |
WINDSTREAM HOLDINGS, INC. CON_7
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ (1,298.9) | $ 1,191.9 | $ 21.4 | $ (2,512.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (121.4) | 0 | 0 | (121.4) |
Other comprehensive loss, net of tax: | ||||
Change in postretirement and pension plans | (0.9) | 0 | (0.9) | 0 |
Amortization of net unrealized losses on de-designated interest rate swaps | 0.7 | 0 | 0.7 | 0 |
Change in designated interest rate swaps | 11 | 0 | 11 | 0 |
Comprehensive loss | (110.6) | 0 | 10.8 | (121.4) |
Share-based compensation | 4.3 | 4.3 | 0 | 0 |
Stock issued for pension contribution | 5.8 | 5.8 | 0 | 0 |
Stock issued to employee savings plan | 28.3 | 28.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (1.4) | (1.4) | 0 | 0 |
Ending balance at Mar. 31, 2018 | (1,337.2) | 1,228.9 | 33.9 | (2,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | 35.3 | 0 | 0 | 35.3 |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2017-12 [Member] | 0 | 0 | 1.7 | (1.7) |
Beginning balance at Dec. 31, 2018 | (1,919.3) | 1,250.4 | 35.6 | (3,205.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (2,310.3) | 0 | 0 | (2,310.3) |
Net loss | Accounting Standards Update 2016-02 [Member] | 21.2 | |||
Other comprehensive loss, net of tax: | ||||
Change in postretirement and pension plans | (0.3) | 0 | (0.3) | 0 |
Amortization of net unrealized losses on de-designated interest rate swaps | (0.9) | 0 | (0.9) | 0 |
Change in designated interest rate swaps | (2.4) | 0 | (2.4) | 0 |
Comprehensive loss | (2,313.9) | 0 | (3.6) | (2,310.3) |
Share-based compensation | 2.4 | 2.4 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (0.4) | (0.4) | 0 | 0 |
Ending balance at Mar. 31, 2019 | (1,192.9) | 1,252.4 | 32 | (2,477.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-02 [Member] | $ 3,038.3 | $ 0 | $ 0 | $ 3,038.3 |
WINDSTREAM SERVICES, LLC CONSOL
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues and sales: | ||
Total revenues and sales | $ 1,320.6 | $ 1,454.3 |
Costs and expenses: | ||
Selling, general and administrative | 198.3 | 228.8 |
Depreciation and amortization | 271.5 | 381.8 |
Goodwill impairment | 2,339 | 0 |
Merger, integration and other costs | 4.6 | 7.3 |
Restructuring charges | 10.5 | 13.7 |
Total costs and expenses | 3,701.9 | 1,385.3 |
Operating (loss) income | (2,381.3) | 69 |
Other expense, net | (1) | (2.3) |
Reorganization items, net | (104.9) | 0 |
Interest expense (contractual interest for the three months ended March 31, 2019 of $140.7) | (91.9) | (223.1) |
Loss before income taxes | (2,579.1) | (156.4) |
Income tax benefit | (268.8) | (35) |
Net loss | (2,310.3) | (121.4) |
Services [Member] | ||
Revenues and sales: | ||
Service revenues | 1,302.2 | 1,435.4 |
Product sales | 1,302.2 | 1,435.4 |
Costs and expenses: | ||
Cost of products sold | 861.1 | 736.9 |
Product [Member] | ||
Revenues and sales: | ||
Service revenues | 18.4 | 18.9 |
Product sales | 18.4 | 18.9 |
Costs and expenses: | ||
Cost of products sold | 16.9 | 16.8 |
Windstream Services, LLC | ||
Revenues and sales: | ||
Total revenues and sales | 1,320.6 | 1,454.3 |
Costs and expenses: | ||
Selling, general and administrative | 197.9 | 228.3 |
Depreciation and amortization | 271.5 | 381.8 |
Goodwill impairment | 2,339 | 0 |
Merger, integration and other costs | 4.6 | 7.3 |
Restructuring charges | 10.5 | 13.7 |
Total costs and expenses | 3,701.5 | 1,384.8 |
Operating (loss) income | (2,380.9) | 69.5 |
Other expense, net | (1) | (2.3) |
Reorganization items, net | (104.9) | 0 |
Interest expense (contractual interest for the three months ended March 31, 2019 of $140.7) | (91.9) | (223.1) |
Loss before income taxes | (2,578.7) | (155.9) |
Income tax benefit | (268.7) | (34.9) |
Net loss | (2,310) | (121) |
Windstream Services, LLC | Services [Member] | ||
Revenues and sales: | ||
Service revenues | 1,302.2 | 1,435.4 |
Product sales | 1,302.2 | 1,435.4 |
Total revenues and sales | 1,454.3 | |
Costs and expenses: | ||
Cost of products sold | 861.1 | 736.9 |
Windstream Services, LLC | Product [Member] | ||
Revenues and sales: | ||
Service revenues | 18.4 | 18.9 |
Product sales | 18.4 | 18.9 |
Costs and expenses: | ||
Cost of products sold | $ 16.9 | $ 16.8 |
WINDSTREAM SERVICES, LLC CONS_2
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 140.7 |
Windstream Services, LLC | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 140.7 |
WINDSTREAM SERVICES, LLC CONS_3
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net loss | $ (2,310.3) | $ (121.4) |
Interest rate swaps: | ||
Unrealized (loss) gain on designated interest rate swaps | (3.2) | 14.8 |
Amortization of net unrealized (gain) loss on de-designated interest rate swaps | (1.2) | 0.9 |
Income tax benefit (expense) | 1.1 | (4) |
Change in interest rate swaps | (3.3) | 11.7 |
Amounts included in net periodic benefit cost: | ||
Amortization of net actuarial loss | 0 | 0.1 |
Amortization of prior service credits | (0.4) | (1.3) |
Income tax benefit | 0.1 | 0.3 |
Change in postretirement and pension plans | (0.3) | (0.9) |
Other comprehensive (loss) income | (3.6) | 10.8 |
Comprehensive loss | (2,313.9) | (110.6) |
Windstream Services, LLC | ||
Net loss | (2,310) | (121) |
Interest rate swaps: | ||
Unrealized (loss) gain on designated interest rate swaps | (3.2) | 14.8 |
Amortization of net unrealized (gain) loss on de-designated interest rate swaps | (1.2) | 0.9 |
Income tax benefit (expense) | 1.1 | (4) |
Change in interest rate swaps | (3.3) | 11.7 |
Amounts included in net periodic benefit cost: | ||
Amortization of net actuarial loss | 0 | 0.1 |
Amortization of prior service credits | (0.4) | (1.3) |
Income tax benefit | 0.1 | 0.3 |
Change in postretirement and pension plans | (0.3) | (0.9) |
Other comprehensive (loss) income | (3.6) | 10.8 |
Comprehensive loss | $ (2,313.6) | $ (110.2) |
WINDSTREAM SERVICES, LLC CONS_4
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 432 | $ 355.7 |
Restricted cash | 7.7 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $23.0 and $24.8, respectively) | 633.4 | 653.1 |
Inventories | 79.8 | 82.4 |
Prepaid expenses and other | 195.6 | 159.7 |
Total current assets | 1,348.5 | 1,256.2 |
Goodwill | 434.7 | 2,773.7 |
Other intangibles, net | 1,174.5 | 1,213.1 |
Net property, plant and equipment | 3,627.8 | 4,920.9 |
Operating lease right-of-use assets | 4,187.4 | 0 |
Other assets | 84.3 | 94 |
Total Assets | 10,857.2 | 10,257.9 |
Current Liabilities: | ||
Current portion of long-term debt | 3,514.8 | 5,728.1 |
Current portion of long-term lease obligations | 0 | 4,570.3 |
Accounts payable | 271.9 | 503.6 |
Advance payments and customer deposits | 163.9 | 180.6 |
Accrued taxes | 64.9 | 87.4 |
Accrued interest | 0.9 | 43.5 |
Other current liabilities | 120.4 | 344.2 |
Total current liabilities | 4,136.8 | 11,457.7 |
Long-term lease obligations | 0 | 72.8 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 21.4 | 542.4 |
Liabilities subject to compromise | 7,891.9 | 0 |
Total liabilities | 12,050.1 | 12,177.2 |
Commitments and Contingencies (See Note 17) | ||
Member Deficit: | ||
Additional paid-in capital | 1,252.4 | 1,250.4 |
Accumulated other comprehensive income | 32 | 35.6 |
Accumulated deficit | (2,477.3) | (3,205.3) |
Total member deficit | (1,192.9) | (1,919.3) |
Total Liabilities and Member Deficit | 10,857.2 | 10,257.9 |
Windstream Services, LLC | ||
Current Assets: | ||
Cash and cash equivalents | 432 | 355.7 |
Restricted cash | 7.7 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $23.0 and $24.8, respectively) | 633.4 | 653.1 |
Inventories | 79.8 | 82.4 |
Prepaid expenses and other | 195.6 | 159.7 |
Total current assets | 1,348.5 | 1,256.2 |
Goodwill | 434.7 | 2,773.7 |
Other intangibles, net | 1,174.5 | 1,213.1 |
Net property, plant and equipment | 3,627.8 | 4,920.9 |
Operating lease right-of-use assets | 4,187.4 | 0 |
Other assets | 84.3 | 94 |
Total Assets | 10,857.2 | 10,257.9 |
Current Liabilities: | ||
Current portion of long-term debt | 3,514.8 | 5,728.1 |
Current portion of long-term lease obligations | 0 | 4,570.3 |
Accounts payable | 271.9 | 503.6 |
Advance payments and customer deposits | 163.9 | 180.6 |
Accrued taxes | 64.9 | 87.4 |
Accrued interest | 0.9 | 43.5 |
Other current liabilities | 120.4 | 344.2 |
Total current liabilities | 4,136.8 | 11,457.7 |
Long-term lease obligations | 0 | 72.8 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 21.4 | 542.4 |
Liabilities subject to compromise | 7,891.9 | 0 |
Total liabilities | 12,050.1 | 12,177.2 |
Commitments and Contingencies (See Note 17) | ||
Member Deficit: | ||
Additional paid-in capital | 1,245.9 | 1,244.2 |
Accumulated other comprehensive income | 32 | 35.6 |
Accumulated deficit | (2,470.8) | (3,199.1) |
Total member deficit | (1,192.9) | (1,919.3) |
Total Liabilities and Member Deficit | $ 10,857.2 | $ 10,257.9 |
WINDSTREAM SERVICES, LLC CONS_5
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 23 | $ 24.8 |
Windstream Services, LLC | ||
Accounts receivable, allowance for doubtful accounts | $ 23 | $ 24.8 |
WINDSTREAM SERVICES, LLC CONS_6
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (2,310.3) | $ (121.4) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 271.5 | 381.8 |
Provision for doubtful accounts | 9.7 | 5.6 |
Share-based compensation expense | 2 | 9.9 |
Non-cash reorganization items, net | 45.7 | 0 |
Deferred income taxes | (268.2) | (34.7) |
Goodwill impairment | 2,339 | 0 |
Other, net | 20.3 | 10.8 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (16.1) | 43.7 |
Prepaid income taxes | (1.8) | (3) |
Prepaid expenses and other | (55) | (15.5) |
Accounts payable | 226.4 | (36.3) |
Accrued interest | (11.7) | 34.7 |
Accrued taxes | (2.6) | (16.7) |
Other current liabilities | (31) | (25.5) |
Other liabilities | (5.7) | (1.7) |
Other, net | 6 | 7.6 |
Net cash provided from operating activities | 218.2 | 239.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (192.8) | (217.6) |
Acquisition of MASS, net of cash acquired | 0 | (37.6) |
Other, net | (4.2) | 0.4 |
Net cash used in investing activities | (197) | (254.8) |
Cash Flows from Financing Activities: | ||
Repayments of debt and swaps | (372.4) | (217.1) |
Proceeds from debt issuance | 455 | 313 |
Debt issuance costs | (14.7) | (2.8) |
Payments under long-term lease obligations | (0.1) | (44.9) |
Payments under finance and capital lease obligations | (9.8) | (13.1) |
Other, net | (0.5) | (2.5) |
Net cash provided from financing activities | 57.5 | 32.6 |
Increase in cash, cash equivalents and restricted cash | 78.7 | 17.1 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 439.7 | 60.5 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 103.3 | 184.9 |
Income taxes (refunded) paid, net | (1.6) | (3.2) |
Reorganization items paid | 40.8 | |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net loss | (2,310) | (121) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 271.5 | 381.8 |
Provision for doubtful accounts | 9.7 | 5.6 |
Share-based compensation expense | 2 | 9.9 |
Non-cash reorganization items, net | 45.7 | 0 |
Deferred income taxes | (268.2) | (34.7) |
Goodwill impairment | 2,339 | 0 |
Other, net | 20.3 | 10.8 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (16.1) | 43.7 |
Prepaid income taxes | (1.8) | (3) |
Prepaid expenses and other | (55) | (15.5) |
Accounts payable | 226.4 | (36.3) |
Accrued interest | (11.7) | 34.7 |
Accrued taxes | (2.6) | (16.7) |
Other current liabilities | (30.7) | (25.4) |
Other liabilities | (5.7) | (1.7) |
Other, net | 6 | 7.6 |
Net cash provided from operating activities | 218.8 | 239.8 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (192.8) | (217.6) |
Acquisition of MASS, net of cash acquired | 0 | (37.6) |
Other, net | (4.2) | 0.4 |
Net cash used in investing activities | (197) | (254.8) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (0.6) | (0.5) |
Repayments of debt and swaps | (372.4) | (217.1) |
Proceeds from debt issuance | 455 | 313 |
Debt issuance costs | (14.7) | (2.8) |
Payments under long-term lease obligations | (0.1) | (44.9) |
Payments under finance and capital lease obligations | (9.8) | (13.1) |
Other, net | (0.5) | (2.5) |
Net cash provided from financing activities | 56.9 | 32.1 |
Increase in cash, cash equivalents and restricted cash | 78.7 | 17.1 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 439.7 | 60.5 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 103.3 | 184.9 |
Income taxes (refunded) paid, net | (1.6) | $ (3.2) |
Reorganization items paid | $ 40.8 |
WINDSTREAM SERVICES, LLC CONS_7
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENT OF MEMBER EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Windstream Services, LLC | Windstream Services, LLCAdditional Paid-In Capital | Windstream Services, LLCAccumulated Other Comprehensive Income | Windstream Services, LLCAccumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ (1,298.9) | $ 1,191.9 | $ 21.4 | $ (2,512.2) | $ (1,298.9) | $ 1,187.1 | $ 21.4 | $ (2,507.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (121.4) | 0 | 0 | (121.4) | (121) | 0 | 0 | (121) |
Other comprehensive loss, net of tax: | ||||||||
Change in postretirement and pension plans | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 |
Amortization of net unrealized losses on de-designated interest rate swaps | 0.7 | 0 | 0.7 | 0 | 0.7 | 0 | 0.7 | 0 |
Change in designated interest rate swaps | 11 | 0 | 11 | 0 | 11 | 0 | 11 | 0 |
Comprehensive loss | (110.6) | 0 | 10.8 | (121.4) | (110.2) | 0 | 10.8 | (121) |
Share-based compensation | 4.3 | 4.3 | 0 | 0 | 4.3 | 4.3 | 0 | 0 |
Stock issued for pension contribution | 5.8 | 5.8 | 0 | 0 | 5.8 | 5.8 | 0 | 0 |
Stock issued to employee savings plan | 28.3 | 28.3 | 0 | 0 | 28.3 | 28.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (1.4) | (1.4) | 0 | 0 | (1.4) | (1.4) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (0.4) | (0.4) | 0 | 0 | ||||
Ending balance at Mar. 31, 2018 | (1,337.2) | 1,228.9 | 33.9 | (2,600) | (1,337.2) | 1,223.7 | 33.9 | (2,594.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | 35.3 | 0 | 0 | 35.3 | 35.3 | 0 | 0 | 35.3 |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2017-12 [Member] | 0 | 0 | 1.7 | (1.7) | 0 | 0 | 1.7 | (1.7) |
Beginning balance at Dec. 31, 2018 | (1,919.3) | 1,250.4 | 35.6 | (3,205.3) | (1,919.3) | 1,244.2 | 35.6 | (3,199.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (2,310.3) | 0 | 0 | (2,310.3) | (2,310) | 0 | 0 | (2,310) |
Other comprehensive loss, net of tax: | ||||||||
Change in postretirement and pension plans | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 |
Amortization of net unrealized losses on de-designated interest rate swaps | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 |
Change in designated interest rate swaps | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 |
Comprehensive loss | (2,313.9) | 0 | (3.6) | (2,310.3) | (2,313.6) | 0 | (3.6) | (2,310) |
Share-based compensation | 2.4 | 2.4 | 0 | 0 | 2.4 | 2.4 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (0.4) | (0.4) | 0 | 0 | (0.4) | (0.4) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (0.3) | (0.3) | 0 | 0 | ||||
Ending balance at Mar. 31, 2019 | $ (1,192.9) | $ 1,252.4 | $ 32 | $ (2,477.3) | (1,192.9) | 1,245.9 | 32 | (2,470.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | $ 3,038.3 | $ 0 | $ 0 | $ 3,038.3 |
Preparation of Interim Financia
Preparation of Interim Financial Statements: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Basis of Presentation and Recently Issued Accounting Pronouncements: | Preparation of Interim Financial Statements: In these consolidated financial statements, unless the context requires otherwise, the use of the terms “Windstream,” “we,” “us” or “our” shall refer to Windstream Holdings, Inc. and its subsidiaries, including Windstream Services, LLC, and the term “Windstream Services” shall refer to Windstream Services, LLC and its subsidiaries. Organizational Structure – Windstream Holdings, Inc. (“Windstream Holdings”) is a publicly traded holding company incorporated in the state of Delaware on May 23, 2013, and the parent of Windstream Services, LLC (“Windstream Services”), a Delaware limited liability company organized on March 1, 2004. Following its delisting on March 6, 2019, Windstream Holdings common stock no longer trades on the Nasdaq Global Select Market (“NASDAQ”) but trades on the Over-the-Counter (“OTC”) Pink Sheets market maintained by the OTC Market Group, Inc. under the trading symbol “WINMQ”. Windstream Holdings owns a 100 percent interest in Windstream Services and its guarantor subsidiaries are the sole obligors of all outstanding debt obligations and, as a result, also file periodic reports with the Securities and Exchange Commission (“SEC”). Windstream Holdings is not a guarantor of nor subject to the restrictive covenants included in any of Windstream Services’ debt agreements. The Windstream Holdings board of directors and officers oversee both companies. Description of Business – We are a leading provider of advanced network communications and technology solutions for businesses across the U.S. We also offer broadband, entertainment and security solutions to consumers and small businesses primarily in rural areas in 18 states. Additionally, we supply core transport solutions on a local and long-haul fiber network spanning approximately 150,000 miles. Consumer service revenues are generated from the provisioning of high-speed Internet, voice and video services to consumers. Enterprise service revenues include revenues from integrated voice and data services, advanced data and traditional voice and long-distance services provided to enterprise, mid-market and small business customers. Wholesale revenues include revenues from other communications services providers for special access circuits and fiber connections, voice and data transport services, and revenues from the reselling of our services. Service revenues also include switched access revenues, federal and state Universal Service Fund (“USF”) revenues, amounts received from Connect America Fund (“CAF”) - Phase II, USF surcharges and revenues from providing other miscellaneous services. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2018 , was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. In our opinion, these financial statements reflect all adjustments that are necessary for a fair statement of results of operations and financial condition for the interim periods presented including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the SEC on March 15, 2019 . Windstream Holdings and its domestic subsidiaries, including Windstream Services, file a consolidated federal income tax return. As such, Windstream Services and its subsidiaries are not separate taxable entities for federal and certain state income tax purposes. In instances when Windstream Services does not file a separate return, income taxes as presented within the accompanying consolidated financial statements attribute current and deferred income taxes of Windstream Holdings to Windstream Services and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method. Income tax provisions presented for Windstream Services and its subsidiaries are prepared under the “separate return method.” The separate return method represents a hypothetical computation assuming that the reported revenue and expenses of Windstream Services and its subsidiaries were incurred by separate taxable entities. The preparation of financial statements, in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. 1. Preparation of Interim Financial Statements, Continued: There are no significant differences between the consolidated results of operations, financial condition, and cash flows of Windstream Holdings and those of Windstream Services other than for certain expenses incurred directly by Windstream Holdings principally consisting of audit, legal and board of director fees, common stock listing fees, other shareholder-related costs, income taxes, common stock activity, and payables from Windstream Services to Windstream Holdings. Earnings per share data has not been presented for Windstream Services because that entity has not issued publicly held common stock as defined in accordance with U.S. GAAP. Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Services. Recently Adopted Accounting Standards Leases – In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as modified by subsequently issued ASU Nos. 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively “ASU 2016-02”). ASU 2016-02 requires recognition of right-of-use assets and lease liabilities on the balance sheet. Most prominent among the changes in ASU 2016-02 is the lessees’ recognition of a right-of-use asset and a lease liability for operating leases. The right-of-use asset and lease liability are initially measured based on the present value of committed lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Expenses related to operating leases are recognized on a straight-line basis, while those related to financing leases are recognized under a front-loaded approach in which interest expense and amortization of the right-of-use asset are presented separately in the statement of operations. Similarly, lessors are required to classify leases as sales-type, finance or operating with classification affecting the pattern of income recognition. Classification for both lessees and lessors is based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. ASU 2016-02 also requires qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASU 2016-02 using the modified retrospective transition method. Under the modified retrospective transition method, we recognized the cumulative effect of initial adoption as an adjustment to our opening accumulated deficit balance at the adoption date. Comparative information for prior periods has not been restated and continues to be reported in accordance with Topic 840. We elected the practical expedients permitted under the transition guidance within ASU 2016-02 which, among other things, allowed us to carry forward the historical lease classification for capital and operating leases. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. As a practical expedient, we elected not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Exclusive of our lease arrangement with Uniti Group, Inc. (“Uniti”) described below, our existing operating lease portfolio primarily consists of fiber, colocation, real estate and equipment leases. Upon adoption of this standard, we recorded an additional lease liability of $408.4 million attributable to our operating leases based on the present value of the remaining minimum lease payments with an increase to leased assets or right-of-use assets of $382.5 million in our consolidated balance sheet. Included in the operating right-of-use assets is $6.6 million of previously recorded prepaid rent and $6.7 million in deferred rent arising from non-level rent payments. The difference between these amounts was recorded as an adjustment to our accumulated deficit. We also recorded a cumulative effect adjustment of approximately $3.0 billion decreasing our accumulated deficit due to reassessing the accounting treatment of our arrangement with Uniti and certain of its subsidiaries. The transaction with Uniti had been accounted for as a failed spin-leaseback financing arrangement for financial reporting purposes due to prohibited continuing involvement. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer preclude the application of spin-leaseback accounting to the spin-off of assets to Uniti by Windstream Services and the lease of those assets by Windstream Holdings. As a result, we de-recognized the remaining net book value of assets transferred to Uniti of approximately $1.3 billion , recognized a right-of-use asset of approximately $3.9 billion equaling the adjusted Uniti lease liability, which decreased by $0.7 billion and recorded a deferred tax liability of approximately $0.3 billion in accordance with the standard’s transition guidance as this arrangement is now accounted for as an operating lease. 1. Preparation of Interim Financial Statements, Continued: We reassessed our accounting treatment for the December 2018 sale of certain fiber assets in Minnesota to Arvig Enterprises, Inc. accounted for as a financing transaction due to our continuing involvement. ASU 2016-02 no longer precludes partial sale recognition. As a result, we de-recognized $7.5 million net book value for the portion of the fiber assets Windstream no longer controls and the related $41.5 million financing lease obligation. The difference between these amounts was recorded as an adjustment to our accumulated deficit. The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,272.9 ) $ 3,648.0 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 344.2 $ (15.4 ) $ 328.8 Deferred income taxes $ 104.3 $ 300.8 $ 405.1 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 542.4 $ (58.8 ) $ 483.6 Accumulated deficit $ (3,205.3 ) $ 3,038.3 $ (167.0 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations and consolidated balance sheet are as follows: Three Months Ended March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 692.3 $ 168.8 $ 861.1 Selling, general and administrative $ 198.3 $ — $ 198.3 Depreciation and amortization $ 354.9 $ (83.4 ) $ 271.5 Interest expense $ 205.6 $ (113.7 ) $ 91.9 Income tax benefit (expense) $ 275.9 $ (7.1 ) $ 268.8 Net loss $ (2,331.5 ) $ 21.2 $ (2,310.3 ) As presented in the table above, cost of services increased due to the recognition of annual straight-line rent expense attributable to the Uniti lease. The decrease in depreciation expense is from de-recognizing the remaining net book value of network assets transferred to Uniti and the decrease in interest expense is due to no longer accounting for the Uniti lease as a failed spin-leaseback financing arrangement. 1. Preparation of Interim Financial Statements, Continued: March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Assets Prepaid expenses and other $ 197.2 $ (1.6 ) $ 195.6 Net property, plant and equipment $ 4,817.3 $ (1,189.5 ) $ 3,627.8 Operating lease right-of-use assets $ — $ 4,187.4 $ 4,187.4 Other assets $ 90.2 $ (5.9 ) $ 84.3 Liabilities Liabilities subject to compromise (a) $ 7,961.0 $ (69.1 ) $ 7,891.9 Accumulated deficit $ (5,536.8 ) $ 3,059.5 $ (2,477.3 ) (a) As of March 31, 2019, all lease-related liabilities have been classified as liabilities subject to compromise. As a result of the change in accounting for our arrangement with Uniti from a financing to an operating lease, our consolidated statement of cash flows for the three months ended March 31, 2019 reflected a decrease in operating cash flows of $50.5 million attributable to no longer classifying a portion of the cash rental payments made to Uniti as a financing outflow as was the case for periods prior to the adoption of ASU 2016-02 as well as a reduction in reported cash paid of $113.7 million for interest. The new lease accounting standard also required additional disclosures about the nature of our leases, including significant terms and conditions, total lease costs, maturity of lease liabilities and receivables reconciled to the consolidated balance sheet, weighted-average remaining lease term, weighted-average discount rate, cash paid for amounts and significant rights and obligations under leases that have not commenced. See Note 5 for these additional disclosures. Derivatives and Hedging - Change in Benchmark Interest Rate - In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”) . This standard adds the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting. SOFR is the preferred alternative reference rate to the London Interbank Offered Rate “(LIBOR”). Because we early adopted ASU 2017-12 on January 1, 2018, this standard was effective for us on January 1, 2019 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Authoritative Guidance Financial Instruments - Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This new standard also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using a modified retrospective transition approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We intend to adopt this standard update in the first quarter of 2020. We are currently assessing the impact the new standard will have on our consolidated financial statements. 1. Preparation of Interim Financial Statements, Continued: Implementation Costs in Cloud Computing Arrangements - In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This standard requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The guidance may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. ASU 2018-15 is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. |
Chapter 11 Filing, Going Concer
Chapter 11 Filing, Going Concern and Other Related Matters (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Liabilities Subject to Compromise Disclosures [Abstract] | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | Chapter 11 Filing, Going Concern and Other Related Matters: Chapter 11 Filing On February 15, 2019, Judge Jesse Furman of the United States District Court for the Southern District of New York issued findings of fact and conclusions of law in litigation relating to a noteholder’s allegations that our spin-off of certain assets in 2015 into a publicly-traded real estate investment trust resulted in one or more defaults of certain covenants under one of Windstream Services’ existing indentures. The findings resulted in a cross default under Windstream Services’ senior secured credit agreement governing its secured term and revolving loan obligations and remaining obligations under the master lease with Uniti. In addition, the findings resulted in a cross-acceleration event of default under the indentures governing Windstream Services’ other series of secured and unsecured notes. As a result, all long-term debt and remaining obligations under the master lease agreement with Uniti were classified as current liabilities in the accompanying consolidated balance sheet as of December 31, 2018. On February 25, 2019 (the “Petition Date”), Windstream Holdings and all of its subsidiaries, including Windstream Services (collectively, the “Debtors”), filed voluntary petitions (the “Chapter 11 Cases”) for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). We intend to use the court-supervised process to address obligations that have been accelerated due to the recent decision by Judge Furman in the District Court against Windstream discussed above. The filing of the Chapter 11 Cases also constitutes an event of default under our debt agreements. Subject to certain specific exceptions under the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities are subject to settlement under the Bankruptcy Code. The Chapter 11 Cases are being jointly administered under the caption In re Windstream Holdings, Inc., et al., No 19-22312 (RDD). We will continue to operate our businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business, however, we may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to first day motions filed with the Bankruptcy Court, the Bankruptcy Court authorized us to conduct our business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing us to: obtain debtor-in-possession financing, pay certain employee wages and benefits, and pay certain vendors and suppliers in the ordinary course for most goods and services. Subject to certain exceptions, under the Bankruptcy Code, the Debtors may assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors from performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Debtors discussed herein, including a quantification of the Debtors’ obligations under any such executory contract or unexpired lease, is qualified by any overriding rejection rights the Debtors have under the Bankruptcy Code. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Reorganization Plan In order for the Debtors to emerge successfully from Chapter 11, the Debtors must obtain the required votes of creditors accepting a plan of reorganization as well as the Bankruptcy Court’s confirmation of such plan. In connection with a reorganization plan, the Debtors also may require a new credit facility, or “exit financing.” The Debtors’ ability to obtain such approval and financing will depend on, among other things, the timing and outcome of various ongoing matters related to the Chapter 11 Cases. A reorganization plan determines the rights and satisfaction of claims of various creditors and security holders and is subject to the ultimate outcome of negotiations and Bankruptcy Court decisions ongoing through the date on which the reorganization plan is confirmed. The Debtors have not yet prepared or filed a plan of reorganization with the Bankruptcy Court. The Debtors have the exclusive right to file a plan of reorganization through and including August 24, 2019, as well as the right to seek further extensions of such period subject to certain statutory limits. Any proposed reorganization plan can be revised prior to submission to the Bankruptcy Court based upon discussions with the Debtors’ creditors and other interested parties, and thereafter in response to creditor claims and objections and the requirements of the Bankruptcy Code or the Bankruptcy Court. There can be no assurance that the Debtors will be able to secure requisite accepting votes for any proposed reorganization or the confirmation of such plan by the Bankruptcy Court. Going Concern and Financial Reporting Our financial condition, the defaults under our debt agreements and master lease agreement with Uniti, and the risks and uncertainties surrounding the Chapter 11 Cases, raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is contingent upon, among other factors, our ability to (i) develop a plan of reorganization and obtain required creditor acceptance and confirmation under the Bankruptcy Code, (ii) successfully implement such plan of reorganization, (iii) address debt and other liabilities through the bankruptcy process, (iv) generate sufficient cash flow from operations, and (v) obtain financing sources sufficient to meet our future obligations. As a result of the Chapter 11 Cases, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession pursuant to the Bankruptcy Code, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business pursuant to relief we obtained from the Bankruptcy Court, for amounts other than those reflected in the accompanying consolidated financial statements. In particular, such financial statements do not purport to show with respect to (i) assets, the realization value on a liquidation basis or availability to satisfy liabilities, (ii) liabilities arising prior to the Petition Date, the amounts that may be allowed for claims or contingencies, or the status and priority thereof, (iii) shareholders’ equity accounts, the effect of any changes that may be made in our capitalization, or (iv) operations, the effects of any changes that may be made in the underlying business. A confirmed plan of reorganization would likely cause material changes to the amounts currently disclosed in the accompanying consolidated financial statements. Further, the plan of reorganization could materially change the amounts and classifications reported in the consolidated historical financial statements, which do not give effect to any adjustments to the carrying value of assets or amounts of liabilities that might be necessary as a consequence of confirmation of a plan of reorganization. The accompanying consolidated financial statements do not include any direct adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable to continue as a going concern or as a consequence of the Chapter 11 Cases. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Effective on February 25, 2019, we began to apply the provisions of Accounting Standards Codification (“ASC”) 852, Reorganizations, which is applicable to companies under bankruptcy protection, and requires amendments to the presentation of key financial statement line items. ASC 852 requires that the financial statements for periods subsequent to the filing of the Chapter 11 Cases distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Revenues, expenses, realized gains and losses, and provisions for losses that can be directly associated with the reorganization and restructuring of the business must be reported separately as reorganization items in the consolidated statements of operations beginning February 25, 2019. The consolidated balance sheet must distinguish pre-petition liabilities subject to compromise from both those pre-petition liabilities that are not subject to compromise and from post-petition liabilities. As further discussed in Note 4, “Debt,” our debtor-in-possession facilities, term loans under the senior secured credit facility, borrowings under the revolving line of credit, senior secured first lien notes and notes issued by Windstream Holdings of the Midwest, Inc. have priority over the senior secured second lien notes and unsecured senior notes and other creditors. Based upon the uncertainty surrounding the ultimate treatment of the senior secured second lien notes and unsecured senior notes, which were under collateralized as of the Petition Date, the instruments have been classified as liabilities subject to compromise in the accompanying consolidated balance sheet as of March 31, 2019. We will evaluate creditors’ claims relative to priority over other unsecured creditors. Liabilities that may be affected by a plan of reorganization must be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the plan of reorganization or negotiations with creditors. In addition, cash used for reorganization items is disclosed. Liabilities Subject to Compromise Due to the filing of the Chapter 11 Cases on February 25, 2019, the classification of pre-petition indebtedness is generally subject to compromise pursuant to a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims generally is not permitted, the Bankruptcy Court granted the Debtors authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Debtors’ businesses and assets. Among other things, the Bankruptcy Court authorized the Debtors to pay certain pre-petition claims relating to employee wages and benefits, taxes and critical vendors. The Debtors are paying and intend to pay undisputed post-petition liabilities in the ordinary course of business. In addition, the Debtors may reject certain pre-petition executory contracts and unexpired leases with respect to their operations with the approval of the Bankruptcy Court. Any damages resulting from the rejection of executory contracts and unexpired leases are treated as general unsecured claims. Pre-petition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of secured status of certain claims, the values of any collateral securing such claims, or other events. Any resulting changes in classification will be reflected in subsequent financial statements. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Liabilities subject to compromise at March 31, 2019 consisted of the following: (Millions) Accounts payable $ 446.1 Advance payments and customer deposits 14.2 Accrued taxes 19.9 Other current liabilities 148.0 Deferred taxes 135.8 Operating lease liabilities 4,218.3 Pension and other employee benefit plan obligations 317.5 Other liabilities 214.7 Accounts payable, accrued and other liabilities 5,514.5 Debt subject to compromise 2,348.4 Accrued interest on debt subject to compromise 29.0 Long-term debt and accrued interest 2,377.4 Total liabilities subject to compromise $ 7,891.9 Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the plan of reorganization. We will continue to evaluate the amount and classification of our pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. Potential Claims The Debtors will notify all known claimants subject to the bar date of their need to file a proof of claim with the Bankruptcy Court. A bar date is the date by which certain claims against the Debtors must be filed if the claimants disagree with the amounts, treatment or classification reflected in the Debtors’ schedule of assets and liabilities or that are not so scheduled and wish to receive any distribution in the bankruptcy filing. The bar date is July 15, 2019, as established by the Bankruptcy Court. On May 10, 2019, the Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. As of May 10, 2019, the Debtors' have received approximately 1,505 proofs of claim for an amount of approximately $178.0 million . Such amount includes duplicate claims across multiple debtor legal entities. These claims will be reconciled to amounts recorded in liabilities subject to compromise in the consolidated balance sheet. Differences in amounts recorded and claims filed by creditors will be investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. The Debtors may ask the Bankruptcy Court to disallow claims that the Debtors believe are duplicative, have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. In addition, as a result of this process, the Debtors may identify additional liabilities that will need to be recorded or reclassified to liabilities subject to compromise. In light of the substantial number of claims filed, and expected to be filed, the claims resolution process may take considerable time to complete and likely will continue after the Debtors emerge from bankruptcy. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Reorganization Items The Debtors have incurred and will continue to incur significant costs associated with the reorganization, primarily legal and professional fees. Subsequent to the Petition Date, these costs are being expensed as incurred and are expected to significantly affect our consolidated results of operations. Reorganization items incurred as a result of the Chapter 11 Cases presented separately in the accompanying consolidated statement of operations for the three months ended March 31, 2019 were as follows: (Millions) Write-off of deferred long-term debt fees $ 24.1 Write-off of original issue discount on debt subject to compromise 21.6 Debtor-in-possession financing costs 40.2 Professional fees and other bankruptcy related costs 19.0 Reorganization items, net $ 104.9 Professional fees included in reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Write-off of deferred long-term debt fees and write-off of original issue discount related to debt subject to compromise were also included in reorganization items, net. Reorganization items, net include $14.7 million relating to the debtor-in-possession (“DIP”) financing costs that were netted against the $300.0 million proceeds received from issuance of the DIP Facility. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
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 liabilities, and the excess of the total purchase price over the amounts assigned to net identifiable assets has been recorded as goodwill. As previously discussed in Note 1, effective January 1, 2019, we adopted the new leasing standard and changed the accounting treatment for our arrangement with Uniti from a financing to an operating lease, the effects of which resulted in a cumulative effect adjustment to equity of approximately $3.0 billion and a corresponding increase in the carrying values of our reporting units as of that date. As further discussed in Note 2, on February 25, 2019, we filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Based on these developments, we performed a quantitative goodwill impairment test during the first quarter of 2019 and compared the fair value to the carrying value for each of our three reporting units, consisting of Consumer & Small Business, Enterprise and Wholesale. We estimated the fair value of our three 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. Due to the additional risks and uncertainties to our business operations following the filing of the Chapter 11 Cases, during the first quarter of 2019, we revised our long-range financial forecasts for each of our reporting units from the long-range forecasts used in our most recently completed annual goodwill impairment assessment as of November 1, 2018. Changes to our long range forecast for 2019 and future periods primarily included: (1) slightly lowering our forecasted revenue and profitability levels for our consumer and small business operations to account for the potential impacts of the Chapter 11 Cases on customer churn, as well as revising the incremental effects from pricing strategies designed to improve revenue trends; (2) lowering our forecasted revenue and profitability levels in our enterprise business to account for the potential impacts of the Chapter 11 Cases on our ability to attract new customers and minimize customer churn, revising the incremental effects of pricing strategies to improve revenue trends, and lowering expected improvements in our cost structure due to increased uncertainty in completing various planned initiatives that are dependent on support from key vendors; and (3) reducing our forecasted revenue and profitability levels for our wholesale business to account for the potential impacts of the Chapter 11 Cases by revising the incremental effects from monetizing unused or underutilized fiber assets, revising the incremental effects of pricing pressures on our legacy service offerings and lowering incremental improvements in our cost structure for various planned initiatives that are dependent on support from key vendors. 3. Goodwill and Other Intangible Assets, Continued: The results of the goodwill impairment test indicated that the carrying values of our Consumer & Small Business, Enterprise and Wholesale reporting units exceeded their fair values. Accordingly, during the first quarter of 2019, we recorded an impairment of all remaining goodwill in our Consumer & Small Business reporting unit of $903.4 million , an impairment of all remaining goodwill in our Enterprise reporting unit of $996.2 million , and an impairment of goodwill in our Wholesale reporting unit of $439.4 million , representing the excess of the carrying value from each reporting unit’s fair value. Changes in the carrying amount of goodwill were as follows: (Millions) Balance at December 31, 2018: Goodwill $ 4,614.5 Accumulated impairment loss (1,840.8 ) Balance at December 31, 2018, net 2,773.7 Changes during the period: Goodwill impairment (2,339.0 ) Other — Balance at March 31, 2019: Goodwill 4,614.5 Accumulated impairment loss (4,179.8 ) Balance at March 31, 2019, net $ 434.7 Goodwill assigned to our operating segments and changes in the carrying amount of goodwill by reportable segment were as follows: (Millions) Consumer & Small Business Enterprise Wholesale Total Balance at December 31, 2018: Goodwill $ 2,321.2 $ 996.2 $ 1,297.1 $ 4,614.5 Accumulated impairment loss (1,417.8 ) — (423.0 ) (1,840.8 ) Balance at December 31, 2018, net 903.4 996.2 874.1 2,773.7 Changes during the period: Goodwill impairment (903.4 ) (996.2 ) (439.4 ) (2,339.0 ) Other — — — — Balance at March 31, 2019: Goodwill 2,321.2 996.2 1,297.1 4,614.5 Accumulated impairment loss (2,321.2 ) (996.2 ) (862.4 ) (4,179.8 ) Balance at March 31, 2019, net $ — $ — $ 434.7 $ 434.7 3. Goodwill and Other Intangible Assets, Continued: Intangible assets were as follows at: March 31, 2019 December 31, 2018 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (425.3 ) $ 859.8 $ 1,285.1 $ (414.6 ) $ 870.5 Customer lists 1,758.4 (1,482.3 ) 276.1 1,758.5 (1,450.4 ) 308.1 Cable franchise rights 17.3 (10.6 ) 6.7 17.3 (10.3 ) 7.0 Trade names 21.0 (4.4 ) 16.6 21.0 (3.9 ) 17.1 Developed technology and software 18.0 (8.9 ) 9.1 18.0 (7.7 ) 10.3 Patents and other 16.9 (10.7 ) 6.2 10.6 (10.5 ) 0.1 Balance $ 3,116.7 $ (1,942.2 ) $ 1,174.5 $ 3,110.5 $ (1,897.4 ) $ 1,213.1 Intangible asset amortization methodology and useful lives were as follows as of March 31, 2019 : Intangible Assets Amortization Methodology Estimated Useful Life Franchise rights straight-line 30 years Customer lists sum of years digits 5.5 - 15 years Cable franchise rights straight-line 15 years Trade names straight-line 1-10 years Developed technology and software straight-line 3-5 years Patents and other straight-line 3 years Amortization expense for intangible assets subject to amortization was $44.7 million for the three-month period ended March 31, 2019 as compared to $58.5 million for the same period in 2018 . Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the five years ended December 31: Year (Millions) 2019 (excluding the three months ended March 31, 2019) $ 124.0 2020 $ 133.9 2021 $ 101.2 2022 $ 71.4 2023 $ 59.0 No other long-lived assets including our other intangible assets were impaired as a result of the adoption of the new leasing standard and filing of the Chapter 11 Cases. |
Long-term Debt_ Long-term Debt_
Long-term Debt: Long-term Debt: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt: Windstream Holdings has no debt obligations. All debt, including the senior secured credit facility described below, have been incurred by Windstream Services and its subsidiaries. Windstream Holdings is neither a guarantor of nor subject to the restrictive covenants imposed by such debt. Event of Default and Chapter 11 Cases – As further discussed in Notes 2 and 17, on February 15, 2019, Judge Jessie Furman found that Windstream Services had defaulted under the indenture governing the August 2023 Notes, which resulted in the acceleration of the August 2023 Notes, and a cross default under Windstream Services’ senior secured credit agreement governing its secured term and revolving line of credit obligations, as well as the remaining obligations under the master lease agreement with Uniti. In addition, the acceleration of the August 2023 Notes resulted in a cross-acceleration event of default under the indentures governing Windstream Services’ other series of secured and unsecured notes. As a result, all long-term debt and remaining obligations under the master lease agreement with Uniti have been classified as current liabilities in the accompanying consolidated balance sheet as of December 31, 2018. 4. Debt, Continued: On February 25, 2019, Windstream Holdings and all of its subsidiaries, including Windstream Services, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. The filing of the Chapter 11 Cases also constituted an event of default under our debt agreements. Due to the Chapter 11 Cases, however, our creditors’ ability to exercise remedies under our debt agreements were stayed as of the date of the Chapter 11 petition filing. In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business, but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to orders entered by the Bankruptcy Court, the Bankruptcy Court after the second day motion hearing authorized us to conduct our business activities in the ordinary course. Debt was as follows at: (Millions) March 31, December 31, Issued by Windstream Services: Superpriority debtor-in-possession term loan facility $ 300.0 $ — Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) 1,180.5 1,180.5 Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 568.4 568.4 Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) 802.0 1,017.0 Senior First Lien Notes – 8.625%, due October 31, 2025 (c) (f) 600.0 600.0 Senior Second Lien Notes – 10.500%, due June 30, 2024 (d) (f) (h) 414.9 414.9 Senior Second Lien Notes – 9.000%, due June 30, 2025 (d) (f) (h) 802.0 802.0 Debentures and notes, without collateral: 2020 Notes – 7.750%, due October 15, 2020 (f) (h) 78.1 78.1 2021 Notes – 7.750%, due October 1, 2021 (f) (h) 70.1 70.1 2022 Notes – 7.500%, due June 1, 2022 (f) (h) 36.2 36.2 2023 Notes – 7.500%, due April 1, 2023 (f) (h) 34.4 34.4 2023 Notes – 6.375%, due August 1, 2023 (f) (h) 806.9 806.9 2024 Notes – 8.750%, due December 15, 2024 (f) (h) 105.8 105.8 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (e) 100.0 100.0 Net discount on long-term debt (g) (5.5 ) (28.6 ) Unamortized debt issuance costs (g) (30.6 ) (57.6 ) Long-term debt prior to reclassification to liabilities subject to compromise 5,863.2 5,728.1 Less current portion (3,514.8 ) (5,728.1 ) Less amounts reclassified to liabilities subject to compromise (2,348.4 ) — Total long-term debt $ — $ — Prior to the filing of the Chapter 11 Cases, additional information with respect to our debt obligations was as follows: (a) If the maturity of the revolving line of credit is not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan will be April 24, 2020; provided further, if the 2020 Notes have not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan will be July 15, 2020. (b) On January 3, 2019, Windstream Services’ reduced future maturities of its revolving line of credit of $312.0 million using proceeds received from the sale of the Consumer CLEC business. (c) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a first priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. 4. Debt, Continued: (d) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a second priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. (e) These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. (f) Windstream Services may call the remaining aggregate principal amounts of these debentures and notes at various premiums upon early redemption. (g) The net discount balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. (h) Balances have been reclassified to liabilities subject to compromise because these obligations were under collateralized as of the Petition Date of the Chapter 11 Cases. Debtor-in-Possession” Credit Facility - On the Petition Date, Windstream Holdings and Windstream Services entered into a commitment letter (as amended, the “DIP Commitment Letter”) dated as of February 25, 2019 with Citigroup Global Markets Inc. (together with Barclays Bank, PLC, Credit Suisse Loan Funding, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A., the “Arrangers”), pursuant to which the Arrangers or their affiliates committed to provide senior secured superpriority debtor-in-possession credit facilities in an aggregate principal amount of $1 billion , subject to conditions described therein. In connection with the Chapter 11 Cases and in accordance with the DIP Commitment Letter, Windstream Holdings and Windstream Services entered into a Superpriority Secured Debtor-in-Possession Credit Agreement, dated as of March 13, 2019 (the “DIP Credit Agreement”), by and among Windstream Services, as the borrower (the “Borrower”), Windstream Holdings, the other guarantors party thereto, the lenders party thereto (together with such other financial institutions from time to time party thereto, the “DIP Lenders”) and Citibank, N.A., as administrative agent and collateral agent (the “Agent”). The DIP Credit Agreement provides for $1 billion in superpriority secured debtor-in-possession credit facilities comprising of (i) a superpriority revolving credit facility in an aggregate amount of $500 million (the “Revolving Facility”) and (ii) a superpriority term loan facility in an aggregate principal amount of $500 million (the “Term Loan Facility” and, together with the Revolving Facility, the “DIP Facilities”), subject to the terms and conditions set forth therein. On February 26, 2019, the date that the Debtors filed a motion for the approval of the DIP Facilities with the Bankruptcy Court, which was granted (the “Effective Date”), a portion of the Term Loan Commitments in an amount equal to $300.0 million and a portion of the Revolving Facility in an amount equal to $100.0 million became available to Windstream Services. On April 16, 2019, the Bankruptcy Court entered a final non-appealable order in form and substance satisfactory to the Agent and the full remaining amount of the Term Loan Commitments and the Revolving Facility became available to the Borrower. As of March 31, 2019, $300.0 million was outstanding under the Term Loan Facility and no amounts were outstanding under the Revolving Facility. The proceeds of loans extended under the DIP Facilities will be used for purposes permitted by orders of the Bankruptcy Court, including (i) for working capital and other general corporate purposes (ii) to pay transaction costs, professional fees and other obligations and expenses incurred in connection with the DIP Facilities, the Chapter 11 Cases and the transactions contemplated thereunder, and (iii) to pay adequate protection expenses, if any, to the extent set forth in any order entered by the Bankruptcy Court. The maturity date of the DIP Facilities is February 26, 2021. Loans under the Term Facility and the Revolving Facility will bear interest, at the option of Windstream Services, at (1) 1.50 percent plus a base rate of the highest of (i) Citibank, N.A.’s base rate, (ii) the Federal funds effective rate plus 1/2 of 1 percent and (iii) the one-month LIBOR plus 1.00 percent per annum; or (2) 2.50 percent plus LIBOR. From and after the Effective Date, a non-refundable unused commitment fee will accrue at the rate of 0.50 percent per annum on the daily average unused portion of the Revolving Facility (whether or not then available). The DIP Credit Agreement includes usual and customary negative covenants for debtor-in-possession loan agreements of this type, including covenants limiting Windstream Holdings’ and its subsidiaries’ ability to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and acquisitions, pay dividends and distributions and make payments in respect of junior or pre-petition indebtedness, in each case subject to customary exceptions for debtor-in-possession loan agreements of this type. 4. Debt, Continued: The DIP Credit Agreement also includes certain customary representations and warranties, affirmative covenants and events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under ERISA, unstayed judgments in favor of a third party involving an aggregate liability in excess of $25.0 million , change of control, specified governmental actions having a material adverse effect or condemnation or damage to a material portion of the collateral. Certain bankruptcy-related events are also events of default, including, but not limited to, the dismissal by the Bankruptcy Court of any of the Chapter 11 Cases, the conversion of any of the Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code, the appointment of a trustee pursuant to Chapter 11 of the Bankruptcy Code, the final order approving the DIP Facilities failing to have been entered within 60 days after the Petition Date and certain other events related to the impairment of the DIP Lenders’ rights or liens granted under the DIP Credit Agreement. The foregoing description of the DIP Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the DIP Credit Agreement. Senior Secured Credit Facility - Prior to the filing of the Chapter 11 Cases, the amended credit facility provided Windstream Services the ability 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 could have requested extensions of the maturity date under any of its existing revolving or term loan facilities. The incremental Tranche B7 term loan matures on February 17, 2024 and was issued at a price of 99.5 percent of the principal amount of the loan. Interest rates applicable to the Tranche B7 term loan were, at Windstream Services’ option, equal to either a base rate plus a margin of 2.25 percent per annum or LIBOR plus a margin of 3.25 percent per annum. LIBOR for the Tranche B7 term loan shall at no time be less than 0.75 percent . The Tranche B7 term loan was 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 at maturity. The incremental Tranche B6 term loan matures on March 29, 2021. Interest on loans under Tranche B6 were equal to LIBOR plus a margin of 4.00 percent per annum, with LIBOR subject to a 0.75 percent floor. The Tranche B6 term loans were subject to quarterly amortization in an aggregate amount of approximately 0.25 percent of the initial principal amount of the loans, with the remaining balance payable at maturity. Revolving Line of Credit - Prior to the filing of the Chapter 11 Cases, under the amended senior secured credit facility, Windstream Services had the ability to obtain revolving loans and issue up to $50.0 million of letters of credit, which upon issuance reduced 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 could not exceed $1,250.0 million . Borrowings under the revolving line of credit were used for permitted acquisitions, working capital and other general corporate purposes of Windstream Services and its subsidiaries. Windstream Services paid 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 were not subject to interim amortization and such loans were 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 were, 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. Prior to the filing of the Chapter 11 Cases, Windstream Services borrowed $155.0 million under the revolving line of credit and retired $370.0 million of borrowings during the period January 1, 2019 to February 24, 2019. Comparatively, during the first three months of 2018 , Windstream Services borrowed $313.0 million under the revolving line of credit and retired $60.0 million of these borrowings through March 31, 2018. Borrowings under the revolving line of credit during the first quarter of 2018 included $150.0 million for a one-time mandatory redemption payment applicable to the 2024 Notes paid on February 26, 2018. Letters of credit of $22.7 million were outstanding at March 31, 2019. 4. Debt, Continued: During the first three months of 2019 , the variable interest rate on the revolving line of credit ranged from 4.38 percent to 8.50 percent , and the weighted average rate on amounts outstanding was 5.89 percent during the period. Comparatively, the variable interest rate ranged from 3.40 percent to 5.75 percent during the first three months of 2018 with a weighted average rate on amounts outstanding during the period of 3.62 percent . Following the filing of the Chapter 11 Cases, interest rates applicable to the revolving line of credit, Tranche B6 term loan and Tranche B7 term loan were converted from LIBOR to the alternate base rate, the effects of which increased interest rates 2.00 percent for borrowings under the senior secured credit facility. The Bankruptcy Court also approved an additional 2.00 percent default rate applicable to borrowings under the senior secured credit facility. As of March 31, 2019, interest rates applicable to the revolving line of credit, Tranche B6 term loan and Tranche B7 term loan were 8.50 percent , 10.50 percent and 9.75 percent , respectively. Interest Expense Interest expense was as follows: Three Months Ended (Millions) 2019 2018 Interest expense - long-term debt $ 93.8 $ 101.9 Interest expense - long-term lease obligations: Telecommunications network assets — 118.5 Real estate contributed to pension plan 1.6 1.5 Impact of interest rate swaps (2.9 ) 0.6 Interest on finance leases and other 0.9 1.5 Less capitalized interest expense (1.5 ) (0.9 ) Total interest expense $ 91.9 $ 223.1 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases As previously discussed in Note 1, we adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective transition method. We lease network assets and equipment, real estate, office space and office equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and nonlease components, which are generally accounted for separately. For certain agreements in which we lease space for data storage and communications equipment within data centers, central offices of other interexchange carriers and alternative access providers, we account for the lease and nonlease components as a single lease component when the timing and pattern of transfer of the lease and nonlease components are identical, and the lease classification would have been an operating lease absent the combination. Our operating leases have remaining lease terms of 1 to 30 years , some of which may include one or more options to renew with renewal terms that can extend the lease term from 1 to 10 years or more. The exercise of lease renewal options is at our sole discretion. At inception of a lease, the lease term is generally equal to the initial lease term as execution of a renewal is not reasonably certain at inception. Subsequent renewals are treated as lease modifications. Due to the nature and expected use of the leased assets, exercise of renewal options is reasonably certain for month-to-month fiber, colocation, point of presence and rack space leases. The lease term is based on the average lease term for similar assets or expected period of use of the underlying asset. We apply a portfolio approach to effectively account for the operating lease right-of-use asset and liability for these low dollar, high volume leases. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. 5. Leases, Continued: Windstream uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on Windstream’s unsecured rates, adjusted by adding the average credit spread percentage of its traded debt to the January 1, 2019 risk-free rate at that maturity to approximate what Windstream would have to borrow on a collateralized basis over a similar period of time as the recognized lease term. Windstream applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term and the reporting entity in which the lease resides. Certain of our lease agreements include rental payments adjusted periodically for inflation. Lease liabilities are not remeasured as a result of changes to the inflation index. Changes to the inflation index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases consist principally of leases for network assets and equipment, real estate, office space and office equipment. Our most significant operating lease is with Uniti, pursuant to which Windstream Holdings leases telecommunications network assets, including fiber and copper networks and other real estate. 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 ending in April 2030, with up to four , five -year renewal options. The master lease provides for a current annual rent of $659.0 million paid in equal monthly installments in advance with an annual 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. The remaining lease term is 11.1 years with a discount rate of 13.9 percent . The acceleration of the 2023 Notes resulted in an event of default under the master lease but no default notice has been received. Upon an event of default, remedies available to Uniti include terminating the master lease and requiring us to transfer the business operations we conduct on the leased assets so terminated (with limited exceptions) to a successor tenant for fair market value pursuant to a process set forth in the master lease, dispossessing us from the leased assets, and/or collecting monetary damages for the breach (including rent acceleration), electing to leave the master lease in place and sue for rent and any other monetary damages, and seeking any and all other rights and remedies available under law or in equity. The exercise of such remedies could have a material adverse effect on our business, financial position, results of operations and liquidity. Uniti’s ability to exercise remedies under master lease was stayed as of the date of the Chapter 11 petition filing. Finance leases consist principally of facilities and equipment for use in our operations. Generally, 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 finance leases. We lease certain real property contributed to the Windstream Pension Plan. The lease agreements provide for the continued use of the properties by our operating subsidiaries and include initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.0 million . The lease agreements provide for annual rent increases ranging from 2 percent to 3 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. Due to Windstream Services’ ability to repurchase the property by ceasing all but de minimis operations at the location, control of the property has not transferred and the transaction continues to be accounted for as a financing obligation. Accordingly, the properties continue to be reported as assets of Windstream and depreciated over their remaining useful lives until termination of the lease agreement. The long-term lease obligation initially equal to the fair value of the properties at the date of contribution of $72.8 million as of March 31, 2019 is presented in other liabilities. As a result of using the effective interest rate method, when lease payments are made to the Windstream Pension Plan, a portion of the payment is charged to interest expense and the remaining portion is recorded as an accretion to the long-term lease obligation. 5. Leases, Continued: Components of lease expense were as follows for the three-month period ended March 31, 2019 : (Millions) Classification Operating lease costs (a) Cost of services, Selling, general and administrative $ 201.5 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 4.4 Interest on lease liabilities Interest expense 0.4 Net lease expense $ 206.3 (a) Includes short-term leases and variable lease costs which are not material. Supplemental balance sheet information related to leases was as follows: (Millions) March 31, 2019 Operating Leases Operating lease right-of-use assets $ 4,187.4 Current portion of operating lease obligations 3,916.1 Operating lease liabilities 302.2 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,218.3 Less amounts reclassified to liabilities subject to compromise (4,218.3 ) Total operating lease liabilities $ — Finance Leases Property, plant and equipment, gross $ 231.7 Accumulated depreciation (144.8 ) Net property, plant and equipment 86.9 Other current liabilities 45.8 Other liabilities 39.8 Finance lease liabilities prior to reclassification to liabilities subject to compromise 85.6 Less amounts reclassified to liabilities subject to compromise (85.6 ) Total finance lease liabilities $ — Weighted Average Remaining Lease Term Operating lease 10.7 years Finance lease 2.3 years Leaseback of real estate contributed to pension plan 11.3 years Weighted Average Discount Rate Operating lease 14.0 % Finance lease 4.5 % Leaseback of real estate contributed to pension plan 8.6 % 5. Leases, Continued: Supplemental cash flow information related to leases was as follows for the three-month period ended March 31, 2019 : (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 196.9 Operating cash outflows from finance leases 1.3 Financing cash outflows from finance leases 13.7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 4.0 Finance leases 3.9 As of March 31, 2019, future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the three months ended March 31, 2019) $ 605.0 $ 4.9 $ 41.1 2020 772.6 6.7 26.3 2021 758.1 6.9 9.5 2022 738.8 7.1 4.8 2023 723.3 7.3 4.7 Thereafter 4,496.6 55.0 6.5 Total future minimum lease payments 8,094.4 87.9 92.9 Less: Amounts representing interest 3,876.1 66.6 7.3 Less: Residual value — (51.5 ) — Present value of lease liabilities $ 4,218.3 $ 72.8 $ 85.6 Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840 were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. 5. Leases, Continued: As of March 31, 2019, there are no material operating or finance leases that have not yet commenced. To provide comprehensive communication solutions to meet our customers’ needs, our services are integrated with the latest communications equipment. Certain offerings include equipment leases. We also lease fiber to generate cash flow from unused or underutilized portions of our network. Lease terms typically range from 1 to 20 years some of which may include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years. Fiber customers do have the ability to early terminate the lease by relinquishing the fiber strands back to us, however we have assessed the probability of such action to be remote. Most of our leases are adjusted periodically for inflation. Although increases in the inflation index are not estimated as part of straight-line rent revenue, to the extent that the actual inflation index is greater or less than the inflation index at lease commencement, there could be changes to realized income or loss. Comprehensive communication solutions with both lease and nonlease components such as maintenance and other services are accounted for as separate components under the guidance applicable to the component either Accounting Standard Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) or ASC Topic 842, Leases (“ASC 842”). If equipment is not returned, early contract termination penalties are designed to cover the cost of the unrecovered equipment. We provide maintenance for all fiber agreements at lessees cost limiting residual value risk. Operating lease income was $65.5 million for the three-month period ended March 31, 2019 and is included in service revenues in our consolidated statement of operations. Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2019 (excluding the three months ended March 31, 2019) $ 46.6 2020 49.4 2021 32.6 2022 11.4 2023 5.7 Thereafter 0.9 Total future lease receipts $ 146.6 |
Leases | Leases As previously discussed in Note 1, we adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective transition method. We lease network assets and equipment, real estate, office space and office equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and nonlease components, which are generally accounted for separately. For certain agreements in which we lease space for data storage and communications equipment within data centers, central offices of other interexchange carriers and alternative access providers, we account for the lease and nonlease components as a single lease component when the timing and pattern of transfer of the lease and nonlease components are identical, and the lease classification would have been an operating lease absent the combination. Our operating leases have remaining lease terms of 1 to 30 years , some of which may include one or more options to renew with renewal terms that can extend the lease term from 1 to 10 years or more. The exercise of lease renewal options is at our sole discretion. At inception of a lease, the lease term is generally equal to the initial lease term as execution of a renewal is not reasonably certain at inception. Subsequent renewals are treated as lease modifications. Due to the nature and expected use of the leased assets, exercise of renewal options is reasonably certain for month-to-month fiber, colocation, point of presence and rack space leases. The lease term is based on the average lease term for similar assets or expected period of use of the underlying asset. We apply a portfolio approach to effectively account for the operating lease right-of-use asset and liability for these low dollar, high volume leases. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. 5. Leases, Continued: Windstream uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on Windstream’s unsecured rates, adjusted by adding the average credit spread percentage of its traded debt to the January 1, 2019 risk-free rate at that maturity to approximate what Windstream would have to borrow on a collateralized basis over a similar period of time as the recognized lease term. Windstream applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term and the reporting entity in which the lease resides. Certain of our lease agreements include rental payments adjusted periodically for inflation. Lease liabilities are not remeasured as a result of changes to the inflation index. Changes to the inflation index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases consist principally of leases for network assets and equipment, real estate, office space and office equipment. Our most significant operating lease is with Uniti, pursuant to which Windstream Holdings leases telecommunications network assets, including fiber and copper networks and other real estate. 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 ending in April 2030, with up to four , five -year renewal options. The master lease provides for a current annual rent of $659.0 million paid in equal monthly installments in advance with an annual 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. The remaining lease term is 11.1 years with a discount rate of 13.9 percent . The acceleration of the 2023 Notes resulted in an event of default under the master lease but no default notice has been received. Upon an event of default, remedies available to Uniti include terminating the master lease and requiring us to transfer the business operations we conduct on the leased assets so terminated (with limited exceptions) to a successor tenant for fair market value pursuant to a process set forth in the master lease, dispossessing us from the leased assets, and/or collecting monetary damages for the breach (including rent acceleration), electing to leave the master lease in place and sue for rent and any other monetary damages, and seeking any and all other rights and remedies available under law or in equity. The exercise of such remedies could have a material adverse effect on our business, financial position, results of operations and liquidity. Uniti’s ability to exercise remedies under master lease was stayed as of the date of the Chapter 11 petition filing. Finance leases consist principally of facilities and equipment for use in our operations. Generally, 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 finance leases. We lease certain real property contributed to the Windstream Pension Plan. The lease agreements provide for the continued use of the properties by our operating subsidiaries and include initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.0 million . The lease agreements provide for annual rent increases ranging from 2 percent to 3 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. Due to Windstream Services’ ability to repurchase the property by ceasing all but de minimis operations at the location, control of the property has not transferred and the transaction continues to be accounted for as a financing obligation. Accordingly, the properties continue to be reported as assets of Windstream and depreciated over their remaining useful lives until termination of the lease agreement. The long-term lease obligation initially equal to the fair value of the properties at the date of contribution of $72.8 million as of March 31, 2019 is presented in other liabilities. As a result of using the effective interest rate method, when lease payments are made to the Windstream Pension Plan, a portion of the payment is charged to interest expense and the remaining portion is recorded as an accretion to the long-term lease obligation. 5. Leases, Continued: Components of lease expense were as follows for the three-month period ended March 31, 2019 : (Millions) Classification Operating lease costs (a) Cost of services, Selling, general and administrative $ 201.5 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 4.4 Interest on lease liabilities Interest expense 0.4 Net lease expense $ 206.3 (a) Includes short-term leases and variable lease costs which are not material. Supplemental balance sheet information related to leases was as follows: (Millions) March 31, 2019 Operating Leases Operating lease right-of-use assets $ 4,187.4 Current portion of operating lease obligations 3,916.1 Operating lease liabilities 302.2 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,218.3 Less amounts reclassified to liabilities subject to compromise (4,218.3 ) Total operating lease liabilities $ — Finance Leases Property, plant and equipment, gross $ 231.7 Accumulated depreciation (144.8 ) Net property, plant and equipment 86.9 Other current liabilities 45.8 Other liabilities 39.8 Finance lease liabilities prior to reclassification to liabilities subject to compromise 85.6 Less amounts reclassified to liabilities subject to compromise (85.6 ) Total finance lease liabilities $ — Weighted Average Remaining Lease Term Operating lease 10.7 years Finance lease 2.3 years Leaseback of real estate contributed to pension plan 11.3 years Weighted Average Discount Rate Operating lease 14.0 % Finance lease 4.5 % Leaseback of real estate contributed to pension plan 8.6 % 5. Leases, Continued: Supplemental cash flow information related to leases was as follows for the three-month period ended March 31, 2019 : (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 196.9 Operating cash outflows from finance leases 1.3 Financing cash outflows from finance leases 13.7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 4.0 Finance leases 3.9 As of March 31, 2019, future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the three months ended March 31, 2019) $ 605.0 $ 4.9 $ 41.1 2020 772.6 6.7 26.3 2021 758.1 6.9 9.5 2022 738.8 7.1 4.8 2023 723.3 7.3 4.7 Thereafter 4,496.6 55.0 6.5 Total future minimum lease payments 8,094.4 87.9 92.9 Less: Amounts representing interest 3,876.1 66.6 7.3 Less: Residual value — (51.5 ) — Present value of lease liabilities $ 4,218.3 $ 72.8 $ 85.6 Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840 were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. 5. Leases, Continued: As of March 31, 2019, there are no material operating or finance leases that have not yet commenced. To provide comprehensive communication solutions to meet our customers’ needs, our services are integrated with the latest communications equipment. Certain offerings include equipment leases. We also lease fiber to generate cash flow from unused or underutilized portions of our network. Lease terms typically range from 1 to 20 years some of which may include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years. Fiber customers do have the ability to early terminate the lease by relinquishing the fiber strands back to us, however we have assessed the probability of such action to be remote. Most of our leases are adjusted periodically for inflation. Although increases in the inflation index are not estimated as part of straight-line rent revenue, to the extent that the actual inflation index is greater or less than the inflation index at lease commencement, there could be changes to realized income or loss. Comprehensive communication solutions with both lease and nonlease components such as maintenance and other services are accounted for as separate components under the guidance applicable to the component either Accounting Standard Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) or ASC Topic 842, Leases (“ASC 842”). If equipment is not returned, early contract termination penalties are designed to cover the cost of the unrecovered equipment. We provide maintenance for all fiber agreements at lessees cost limiting residual value risk. Operating lease income was $65.5 million for the three-month period ended March 31, 2019 and is included in service revenues in our consolidated statement of operations. Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2019 (excluding the three months ended March 31, 2019) $ 46.6 2020 49.4 2021 32.6 2022 11.4 2023 5.7 Thereafter 0.9 Total future lease receipts $ 146.6 |
Derivatives_ (Notes)
Derivatives: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives: Prior to the filing of the Chapter 11 Cases, Windstream Services was party to six pay fixed, receive variable interest rate swap agreements. Windstream Services had designated each of the six swaps as cash flow hedges of the interest rate risk inherent in borrowings outstanding under its senior secured credit facility due to changes in the LIBOR benchmark interest rate. All of the swaps hedged the probable variable cash flows which extended up to one year beyond the maturity of certain components of Windstream Services’ variable rate debt. Windstream Services expected to extend or otherwise replace those components of its debt with variable rate debt. The variable rate received on the six swaps was based on one-month LIBOR and reset on the seventeenth day of each month. The maturity date for all six interest rate swap agreements was October 17, 2021. Three of the interest rate swaps were off-market swaps, meaning they contained an embedded financing element, which the swap counterparties recovered through an incremental charge in the fixed rate over what would have been charged for an at-market swap. As such, a portion of the cash payment on the swaps represented the rate that Windstream Services would have paid on a hypothetical at-market interest rate swap and was recognized in interest expense. The remaining portion represented the repayment of the embedded financing element and reduced the initial swap liability. These three swaps had a total notional value of $675.0 million and the average fixed interest rate paid was 2.984 percent . The fourth interest rate swap agreement had a notional value of $200.0 million and the fixed interest rate paid was 1.1275 percent . The remaining two interest rate swap agreements had a total notional value of $500.0 million and the fixed interest rate paid was 1.8812 percent . 6. Derivatives, Continued: Due to previous refinancing transactions, Windstream Services had de-designated certain interest rate swaps and froze the accumulated net gains and losses in accumulated other comprehensive income related to those swaps. The frozen balance is amortized from accumulated other comprehensive income to interest expense over the remaining life of the original swaps. Prior to the filing of the Chapter 11 Cases, all derivative instruments were recognized at fair value as either assets or liabilities, depending on the rights or obligations under the related contracts. The agreements with each of the derivative counterparties contained 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 be required to net settle any outstanding derivative liability positions with its counterparties at the swap termination value, including accrued interest and excluding any credit valuation adjustment to measure non-performance risk. Due to the adverse court ruling, subsequent filing of the Chapter 11 Cases and cross-default provisions contained within the interest rate swap agreements, the interest rate swaps were classified as current assets and liabilities in the accompanying consolidated balance sheet as of December 31, 2018. Following the adverse court ruling from Judge Jessie Furman, each of the bank counterparties exercised their rights to terminate the interest rate swap agreements. Accordingly, Windstream Services ceased the application of hedge accounting for all six interest rate swaps, effective February 15, 2019. For those swaps in an asset position at the date of termination as determined by the counterparty, Windstream Services received cash proceeds of $9.6 million to settle the derivative contracts. For swaps in a liability position at the date of termination as determined by the counterparty, the interest rate swaps were adjusted to their termination value of $6.1 million and reclassified as liabilities subject to compromise in the accompanying consolidated balance sheet as of March 31, 2019. Upon the discontinuance of hedge accounting, Windstream Services concluded that it was still probable that the hedged transactions (future interest payments) will occur. As a result, the accumulated net gains related to the interest rate swaps recorded in accumulated other comprehensive income as of February 15, 2019 were frozen and will be amortized from accumulated other comprehensive income to interest expense over the contractual remaining life of the interest rate swaps. Set forth below is information related to interest rate swap agreements: (Millions, except for percentages) March 31, December 31, Designated portion, measured at fair value: Other current assets $ — $ 15.3 Other current liabilities $ — $ 6.8 Accumulated other comprehensive income $ — $ 39.7 De-designated portion, unamortized value: Liabilities subject to compromise $ 6.1 $ — Accumulated other comprehensive income $ 32.9 $ (2.4 ) Weighted average fixed rate paid 2.31 % 2.31 % Variable rate received 2.48 % 2.46 % Changes in derivative instruments were as follows for the three-month periods ended March 31: (Millions) 2019 2018 Changes in fair value, net of tax $ (2.4 ) $ 11.0 Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax $ (0.9 ) $ 0.7 6. Derivatives, Continued: Balance Sheet Offsetting Prior to the termination of the interest rate swaps, Windstream Services was party to master netting arrangements, which were designed to reduce credit risk by permitting net settlement of transactions with counterparties. For financial statement presentation purposes, Windstream Services did not offset assets and liabilities under these arrangements. The following tables presents the assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2018 . Information pertaining to derivative assets was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 15.3 $ (3.2 ) $ — $ 12.1 Information pertaining to derivative liabilities was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 6.8 $ (3.2 ) $ — $ 3.6 |
Fair Value Measurements_ (Notes
Fair Value Measurements: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements: | Fair Value Measurements: Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Authoritative guidance defines the following three tier hierarchy for assessing the inputs used in fair value measurements: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 – Unobservable inputs The highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority is given to unobservable inputs (level 3 measurement). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of fair value of assets and liabilities and their placement within the fair value hierarchy levels. Our non-financial assets and liabilities, including property, plant and equipment, goodwill, intangible assets and asset retirement obligations, are measured at fair value on a non-recurring basis. No event occurred during the three-month period ended March 31, 2019 requiring our non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt and interest rate swaps. The carrying amount of cash, accounts receivable and accounts payable was estimated by management to approximate fair value due to the relatively short period of time to maturity for those instruments. Cash equivalents, long-term debt and interest rate swaps are measured at fair value on a recurring basis. There were no cash equivalents as of March 31, 2019 . The fair values of cash equivalents, interest rate swaps and debt were determined using the following inputs at: (Millions) March 31, December 31, Recorded at Fair Value in the Financial Statements: Cash equivalents - Level 1 (a) $ — $ 310.0 Derivatives Interest rate swap assets - Level 2 $ — $ 15.3 Interest rate swap liabilities - Level 2 $ — $ 6.8 Not Recorded at Fair Value in the Financial Statements: (b) Debt, including current portion - Level 2: Included in current portion of long-term debt $ 3,459.2 $ 4,405.8 Included in liabilities subject to compromise $ 1,106.7 $ — (a) Cash equivalents are highly liquid, actively traded money market funds with next day access. (b) Recognized at carrying value of $5,893.8 million and $5,785.7 million in debt, including current portion, and liabilities subject to compromise and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of March 31, 2019 and December 31, 2018 , respectively. 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, 2018 , the fair values of the interest rate swaps were reduced by $2.9 million to reflect non-performance risk. 7. Fair Value Measurements: In calculating the fair value of Windstream Services’ 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). There were no transfers within the fair value hierarchy during the three-month period ended March 31, 2019 . |
Revenues_ (Notes)
Revenues: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues: The majority of our revenue is derived from providing access to or usage of our networks and facilities we operate. Accounts Receivable – Accounts receivable, principally consist of amounts billed and currently due from customers and are generally unsecured and due within 30 days. The amounts due are stated at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of historical collection experience, age of outstanding receivables, current economic conditions and a specific customer’s ability to meet its financial obligations. 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 monthly 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 revenues related to communication services and product sales of $41.5 million and $40.0 million at March 31, 2019 and December 31, 2018, respectively. Contract Balances – Contract assets include unbilled amounts resulting when revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Contract assets principally consist of discounts and promotional credits given to customers. The current and noncurrent portion of contract assets is included in prepaid expenses and other and other assets, respectively, in the accompanying consolidated balance sheets. Our contract liabilities consist of services billed in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The change in our contract liabilities is primarily related to customer activity associated with services billed in advance, the receipt of cash payments and the satisfaction of our performance obligations. We classify these amounts as current or noncurrent based on the timing of when we expect to recognize revenue. Contract assets and liabilities from contracts with customers were as follows at: March 31, December 31, (Millions) 2019 2018 Contract assets (a) $ 13.0 $ 12.6 Contract liabilities (b) $ 181.4 $ 184.8 Revenues recognized included in the opening contract liability balance $ 156.8 $ 194.9 (a) Includes $8.0 million and $8.3 million in prepaid expense and other and $5.0 million and $4.3 million in other assets as of March 31, 2019 and December 31, 2018, respectively. (b) Includes $157.9 million and $172.1 million in advance payments and customer deposits and $10.4 million and $12.7 million in other liabilities as of March 31, 2019 and December 31, 2018, respectively. Also includes $13.1 million in liabilities subject to compromise as of March 31, 2019 . Remaining Performance Obligations – Our remaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. Certain contracts provide customers the option to purchase additional services or usage based services. The fees related to the additional services or usage based services are recognized when the customer exercises the option, typically on a month-to-month basis. In determining the transaction price allocated, we do not include these non-recurring fees and estimates for usage, nor do we consider arrangements with an original expected duration of less than one year. 8. Revenues, Continued: Remaining performance obligations reflect recurring charges billed, adjusted for discounts and promotional credits and revenue adjustments. At March 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.9 billion for contracts with original expected durations of more than one year remaining. We expect to recognize approximately 35.3 percent , 34.9 percent and 19.3 percent of our remaining performance obligations as revenue during the remainder of 2019, 2020 and 2021, with the remaining balance thereafter. Revenue by Category – We disaggregate our revenue from contracts with customers by product type for each of our segments, as we believe it best depicts the nature, amount and timing of our revenue. Revenues recognized from contracts with customers by customer and product type for the three-month period ended March 31, 2019 was as follows: (Millions) Consumer & Small Business Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 239.9 $ — $ — $ — $ 239.9 Voice and long-distance 28.6 — — — 28.6 Video and miscellaneous 10.3 — — — 10.3 Core (a) — 311.3 — — 311.3 Strategic (b) — 45.4 — — 45.4 Legacy (c) — 130.5 — — 130.5 Small business services 69.9 — — — 69.9 Core wholesale (d) — — 129.6 — 129.6 Resale (e) — — 17.7 — 17.7 Wireless TDM (f) — — 2.1 — 2.1 Switched access 6.3 — 7.5 — 13.8 Other (g) — 124.1 — — 124.1 Service revenues from contracts with customers 355.0 611.3 156.9 — 1,123.2 Product sales 8.0 10.1 0.3 — 18.4 Total revenue from contracts with customers 363.0 621.4 157.2 — 1,141.6 Other service revenues (h) 98.7 68.3 12.0 — 179.0 Total revenues and sales $ 461.7 $ 689.7 $ 169.2 $ — $ 1,320.6 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the three-month period ended March 31, 2018 was as follows: (Millions) Consumer & Small Business Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 243.6 $ — $ — $ 24.4 $ 268.0 Voice and long-distance 31.4 — — — 31.4 Video and miscellaneous 11.4 — — — 11.4 Dial-up, e-mail and miscellaneous — — — 22.8 22.8 Small business services 78.1 — — — 78.1 Core (a) — 351.7 — — 351.7 Strategic (b) — 36.5 — — 36.5 Legacy (c) — 153.3 — — 153.3 Core wholesale (d) — — 142.0 — 142.0 Resale (e) — — 18.3 — 18.3 Wireless TDM (f) — — 3.2 — 3.2 Switched access 8.1 — 9.4 — 17.5 Other (g) — 127.9 — — 127.9 Service revenues from contracts with customers 372.6 669.4 172.9 47.2 1,262.1 Product sales 5.5 13.2 0.1 0.1 18.9 Total revenue from contracts with customers 378.1 682.6 173.0 47.3 1,281.0 Other service revenues (h) 98.4 63.5 10.8 0.6 173.3 Total revenues and sales $ 476.5 $ 746.1 $ 183.8 $ 47.9 $ 1,454.3 Note: During the first quarter of 2019, we reclassified our Enterprise service revenues by type and class of service offering to align with our internal management reporting of this segment’s revenues and sales. Prior period information has been revised to conform with the current year presentation. These changes did not impact total revenues and sales previously reported for the Enterprise segment. (a) Core revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance, and managed services. (b) Strategic revenues consist of Software Defined Wide Area Network (“SD-WAN”), Unified Communications as a Service (“UCaaS”), OfficeSuite©, and associated network access products and services. (c) Legacy revenues consist of Time Division Multiplexing (“TDM”) voice and data services. (d) Core wholesale revenues primarily include revenues from providing special access circuits, fiber connections, data transport and wireless backhaul services. (e) Revenues consist of voice and data services sold to other communications services providers on a resale basis. (f) Revenues consists of TDM private line transport services. 8. Revenues, Continued: (g) Revenues primarily consist of administrative service fees, subscriber line charges, and non-recurring usage-based long-distance revenues. (h) Other service revenues primarily include end user surcharges, CAF – Phase II funding, state USF and access recovery mechanism (“ARM”) support and lease revenue. Deferred Commissions and Other Costs to Fulfill a Contract – Our direct incremental costs of obtaining a contract, consisting of sales commissions and certain costs associated with activating services, including costs to develop customized solutions and provision services, are deferred and recognized as an operating expense using a portfolio approach over the estimated life of the customer, which ranges from 18 to 36 months. Determining the amount of costs to fulfill requires judgment. In determining costs to fulfill, consideration is given to periodic time studies, management estimates and statistics from internal information systems. Collectively, deferred commissions and other costs to fulfill a contract are referred to as deferred contract costs. We classify deferred contract costs as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of deferred contract costs are included in prepaid expenses and other and other assets, respectively, in our consolidated balance sheets. Deferred contract costs totaled $46.2 million at March 31, 2019 , of which $31.2 million and $15.0 million was included in prepaid expenses and other and other assets, respectively. At December 31, 2018, deferred contract costs were $45.5 million , of which $30.4 million and $15.1 million was included in prepaid expenses and other and other assets, respectively. Amortization of deferred contract costs was $9.9 million and $10.8 million for the three-month periods ended March 31, 2019 and 2018 , respectively. There was no impairment loss recognized for the three-month periods ended March 31, 2019 and 2018 , related to deferred contract cost. |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans and Postretirement Benefits Other Than Pensions: | Employee Benefit Plans and Postretirement Benefits: We maintain a non-contributory qualified defined benefit pension plan. Future benefit accruals for all eligible nonbargaining employees covered by the pension plan have ceased. We also maintain supplemental executive retirement plans that provide unfunded, non-qualified supplemental retirement benefits to a select group of management employees. Additionally, we provide postretirement healthcare and life insurance benefits for eligible employees. Employees share in, and we fund, the costs of these plans as benefits are paid. The components of pension benefit income, including provision for executive retirement agreements, were as follows: Three Months Ended (Millions) 2019 2018 Benefits earned during the period (a) $ 0.6 $ 0.9 Interest cost on benefit obligation (b) 10.9 10.2 Amortization of prior service credit (b) (0.3 ) (1.2 ) Expected return on plan assets (b) (12.4 ) (14.3 ) Net periodic benefit income $ (1.2 ) $ (4.4 ) (a) Included in cost of services and selling, general and administrative expense. (b) Included in other expense, net. For 2019, the expected employer contributions for pension benefits consists of $15.2 million to the qualified pension plan to satisfy our remaining 2018 and 2019 funding requirements and $0.8 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. In the first quarter of 2019, we made our required quarterly employer contribution of $3.0 million in cash. In the first quarter of 2018, we made our required quarterly employer contribution of $5.2 million in cash and also contributed 0.8 million shares of our common stock with a value of approximately $5.8 million to the qualified pension plan. 9. Employee Benefit Plans and Postretirement Benefits, Continued: The components of postretirement benefits expense were as follows: Three Months Ended (Millions) 2019 2018 Interest cost on benefit obligation (a) $ 0.2 $ 0.2 Amortization of net actuarial loss (a) — 0.1 Amortization of prior service credit (a) (0.1 ) (0.1 ) Net periodic benefit expense $ 0.1 $ 0.2 (a) Included in other expense, net. We contributed $0.3 million in cash to the postretirement plan during the three-month period ended March 31, 2019 , excluding amounts that were funded by participant contributions to the plan. We also sponsor an employee savings plan under section 401(k) of the Internal Revenue Code, which covers substantially all salaried employees and certain bargaining unit employees. Windstream matches on an annual basis up to a maximum of 4.0 percent of employee pre-tax contributions to the plan for employees contributing up to 5.0 percent of their eligible pre-tax compensation. We recorded expenses of $7.0 million in the three-month period ended March 31, 2019 as compared to $6.3 million for the same period in 2018 related to our matching contribution under the employee savings plan, which was included in cost of services and selling, general and administrative expenses in our consolidated statements of operations. Expense related to our 2018 matching contribution that was expected to be made in Windstream Holdings common stock was included in share-based compensation expense in the accompanying consolidated statement of cash flows for the three months ended March 31, 2018. In March 2019, we contributed $26.4 million in cash to the plan for the 2018 annual matching contribution. Comparatively, in March 2018, we contributed 3.4 million shares of our common stock with a fair value of $26.9 million to the plan for the 2017 annual matching contribution. |
Share-Based Compensation Plans_
Share-Based Compensation Plans: Share-Based Compensation Plans: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans: | Share-Based Compensation Plans: In May 2018, our stockholders approved amendments to our Amended and Restated 2006 Equity Incentive Plan (the “Incentive Plan”) which (i) extended the term of the Incentive Plan through February 6, 2023 and (ii) increased the maximum number of shares authorized for issuance or delivery under the Incentive Plan to 6.8 million . Under the Incentive Plan, we may issue equity stock awards in the form of restricted stock, restricted stock units, stock appreciation rights or stock options. As of March 31, 2019, the Incentive Plan had remaining capacity of approximately 1.5 million awards. Restricted Stock and Restricted Stock Units – Our board of directors may approve grants of restricted stock and restricted stock units to officers, executives, non-employee directors and certain management employees. Grants may include time-based and performance-based awards. Time-based awards granted to employees generally vest over a service period of two or three years. 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 specified targets over a three-year period. In February 2019, we granted 0.7 million performance-based restricted stock units that will vest three years from the date of grant. The grant date fair value of the restricted stock units was $2.4 million . There were no service-based restricted stock units granted during the first quarter of 2019. In light of our Chapter 11 filing, the vesting date for certain service-based restricted stocks was extended from March 1, 2019 to December 1, 2019 . Additionally, the delivery of shares for performance-based restricted stock units vested on March 1, 2019 was delayed until December 1, 2019 . 10. Share-Based Compensation Plans, Continued: Service-based restricted stock and restricted unit activity for the three-month period ended March 31, 2019 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2018 522.1 $ 23.34 Granted — $ — Vested (118.8 ) $ 32.05 Forfeited (10.0 ) $ 34.18 Non-vested at March 31, 2019 393.3 $ 20.43 Performance restricted stock unit activity for the three-month period ended March 31, 2019 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2018 325.4 $ 28.35 Granted 698.5 $ 3.40 Vested (147.0 ) $ 28.25 Forfeited (17.4 ) $ 27.76 Non-vested at March 31, 2019 859.5 $ 8.10 At March 31, 2019 , unrecognized compensation expense for restricted stock and restricted stock units totaled $6.2 million and is expected to be recognized over the weighted average vesting period of 1.9 years. The total fair value of shares vested was $8.0 million for the three-month period ended March 31, 2019 , as compared to $20.6 million for the same period in 2018 . Share-based compensation expense for restricted stock and restricted stock units was $1.6 million and $3.6 million for the three-month period ended March 31, 2019 and 2018 , respectively. Stock Options – At March 31, 2019 and December 31, 2018, we had approximately 1.0 million of unvested and vested stock option awards outstanding, all of which 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 stock options were granted during the first quarter of 2019. At March 31, 2019 , total unamortized compensation cost for non-vested stock option awards amounted to $2.4 million and is expected to be recognized over a weighted average period of 1.9 years . Share-based compensation expense for stock options was $0.4 million for the three months ended March 31, 2019. |
Merger, Integration and Other C
Merger, Integration and Other Costs and Restructuring Charges: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Merger, Integration and Other Costs and Restructuring Charges [Abstract] | |
Merger, Integration and Other Costs and Restructuring Charges: | Merger, Integration and Other Costs 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, consulting and broker fees; severance and related costs; IT and network conversion; rebranding and marketing; and contract termination fees. 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 2019 and 2018, we completed restructurings of our workforce to improve our overall cost structure and gain operational efficiencies. In undertaking these efforts, we eliminated approximately 275 positions in the first quarter of 2019 and 400 positions in the first quarter of 2018 and incurred related severance and employee benefit costs of $10.5 million and $13.7 million , respectively. 11. Merger, Integration and Other Costs and Restructuring Charges, Continued: A summary of the merger, integration and other costs and restructuring charges recorded was as follows: Three Months Ended (Millions) 2019 2018 Merger, integration and other costs: Information technology conversion costs $ 0.2 $ 0.4 Costs related to merger with EarthLink (a) 3.4 4.4 Costs related to merger with Broadview (b) — 1.9 Other 1.0 0.6 Total merger, integration and other costs 4.6 7.3 Restructuring charges 10.5 13.7 Total merger, integration and other costs and restructuring charges $ 15.1 $ 21.0 (a) For the three-month period ended March 31, 2019 and 2018 , these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $2.9 million and $3.0 million , respectively, and other miscellaneous expenses of 0.5 million and $1.4 million , respectively. (b) For the three-month period ended March 31, 2018, these amounts include severance and employee benefit costs for Broadview employees terminated after the acquisition of $1.3 million and other miscellaneous expenses of $0.6 million . After giving consideration to tax benefits on deductible items, merger, integration and other costs and restructuring charges increased our reported net loss by $11.3 million for the three-month period ended March 31, 2019 , as compared to $15.9 million for the same period in 2018 . The following is a summary of the activity related to the liabilities associated with merger, integration and other costs and restructuring charges at March 31 : Restructuring Charges (Millions) Merger, Integration and Other Charges Severance and Benefit Costs Lease Termination Costs Total Balance at December 31, 2018 $ 4.0 $ 12.6 $ 15.3 $ 31.9 Reclassified to operating lease obligations upon adoption of ASU 2016-02 (8.6 ) — (15.3 ) (23.9 ) Expenses incurred in period 4.6 10.5 — 15.1 Cash outlays during the period — (16.5 ) — (16.5 ) Balance at March 31, 2019 $ — $ 6.6 $ — $ 6.6 Payments of these liabilities will be funded through operating cash flows. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes: The significant components of the net deferred income tax (asset) liability were as follows: (Millions) March 31, December 31, 2018 Property, plant and equipment $ 516.1 $ 825.5 Goodwill and other intangible assets 247.3 477.7 Operating loss and credit carryforward (591.7 ) (576.8 ) Postretirement and other employee benefits (78.6 ) (79.6 ) Unrealized holding loss and interest rate swaps 5.8 7.2 Deferred compensation (2.0 ) (2.3 ) Bad debt (14.4 ) (15.1 ) Long-term lease obligations (1,091.9 ) (1,170.9 ) Operating lease right-of-use assets 1,063.1 — Deferred debt costs (34.9 ) (19.2 ) Share-based compensation (6.0 ) (6.8 ) Interest expense (13.5 ) — Other, net (7.0 ) (20.4 ) (7.7 ) (580.7 ) Valuation allowance 143.5 685.0 Less amounts reclassified to liabilities subject to compromise (135.8 ) — Deferred income taxes, net $ — $ 104.3 Deferred tax assets $ (1,904.3 ) $ (1,954.0 ) Deferred tax liabilities 2,040.1 2,058.3 Less amounts reclassified to liabilities subject to compromise (135.8 ) — Deferred income taxes, net $ — $ 104.3 In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. We consider the scheduled reversal of deferred tax assets and liabilities, carryback potential, projected future taxable income and tax planning strategies in making this assessment. As a result of the adverse court ruling and subsequent filing of the Chapter 11 Cases, we considered the reversal of taxable temporary differences and carryback potential as a source of income as of December 31, 2018. After consideration of these factors, we recorded a full valuation allowance for the year ended December 31, 2018, exclusive of a portion of deferred tax liabilities primarily associated with indefinite-lived intangible assets. Therefore, as of December 31, 2018, we had valuation allowances of approximately $685.0 million . The impact of adoption of ASU 2016-02 in 2019 resulted in an increase to deferred tax liabilities of approximately $842.3 million . This increase caused a re-evaluation of our valuation allowances as of January 1, 2019 and resulted in a decrease of approximately $541.5 million , recorded as an adjustment to equity. At March 31, 2019 , our valuation allowance is approximately $143.5 million . As of March 31, 2019, we were in a net deferred tax liability position and recorded an income tax benefit during the first quarter of 2019. We will monitor our deferred tax asset position each quarter and determine the appropriate income tax benefit to record based upon the reversal of taxable temporary differences. At March 31, 2019 and December 31, 2018 , we had federal net operating loss carryforwards of approximately $1,992.0 million and $1,920.2 million , respectively. Net operating losses generated prior to 2018 expire in varying amounts from 2019 through 2037. Under the 2017 Tax Act, federal net operating losses generated in 2018 and future years can be carried forward indefinitely. The loss carryforwards at March 31, 2019 and December 31, 2018 were primarily losses acquired in conjunction with our acquisitions including PAETEC, EarthLink and Broadview. 12. Income Taxes, Continued: At March 31, 2019 and December 31, 2018 , we had state net operating loss carryforwards of approximately $2,527.7 million and $2,456.6 million , respectively, which expire annually in varying amounts from 2019 through 2039. The loss carryforwards were primarily losses acquired in conjunction with our acquisitions including PAETEC and EarthLink. The amount of federal tax credit carryforward at March 31, 2019 and December 31, 2018 was approximately $21.8 million , which expires in varying amounts from 2031 through 2036. The amount of state tax credit carryforward at March 31, 2019 and December 31, 2018 was approximately $17.7 million , which expires in varying amounts from 2019 through 2027. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income: Accumulated other comprehensive income balances, net of tax, were as follows: (Millions) March 31, December 31, Pension and postretirement plans $ 7.4 $ 7.7 Unrealized net gains (losses) on interest rate swaps: Designated portion — 29.7 De-designated portion 24.6 (1.8 ) Accumulated other comprehensive income $ 32.0 $ 35.6 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Net Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2018 $ 27.9 $ 7.7 $ 35.6 Other comprehensive income before reclassifications (2.4 ) — (2.4 ) Amounts reclassified from other accumulated comprehensive income (a) (0.9 ) (0.3 ) (1.2 ) Balance at March 31, 2019 $ 24.6 $ 7.4 $ 32.0 (a) See separate table below for details about these reclassifications. 13. Accumulated Other Comprehensive Income, Continued: Reclassifications out of accumulated other comprehensive income were as follows: (Millions) Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Three Months Ended Affected Line Item in the Consolidated Statements of Operations 2019 2018 Interest rate swaps: Amortization of net unrealized losses on de-designated interest rate swaps $ (1.2 ) $ 0.9 Interest expense (1.2 ) 0.9 Loss before income taxes 0.3 (0.2 ) Income tax (expense) benefit (0.9 ) 0.7 Net loss Pension and postretirement plans: Amortization of net actuarial loss — 0.1 (a) Amortization of prior service credits (0.4 ) (1.3 ) (a) (0.4 ) (1.2 ) Loss before income taxes 0.1 0.3 Income tax (expense) benefit (0.3 ) (0.9 ) Net loss Total reclassifications for the period, net of tax $ (1.2 ) $ (0.2 ) Net loss (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit expense (see Note 9). |
Earnings (Loss) Per Share_ Earn
Earnings (Loss) Per Share: Earnings Per Share Text Block (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Loss per Share: All per share information presented has been retrospectively adjusted to reflect the effects of a one -for- five reverse stock split, which became effective on May 25, 2018. We compute basic loss per share by dividing net loss applicable to common shares by the weighted average number of common shares outstanding during each period. Diluted (loss) earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including restricted stock units, stock options and warrants, were exercised or converted into common stock. The dilutive effect of outstanding restricted stock units, stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise plus the amount of compensation cost attributed to future services. 14. Loss per Share, Continued: A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows: Three Months Ended (Millions, except per share amounts) 2019 2018 Basic and diluted loss per share: Numerator: Net loss attributable to common shares $ (2,310.3 ) $ (121.4 ) Denominator: Basic and diluted shares outstanding Weighted average basic and diluted shares outstanding 42.6 37.4 Basic and diluted loss per share: Net loss ($54.26 ) ($3.25 ) For the three-month period ended March 31, 2019 and 2018, we excluded from the computation of diluted shares the effect of restricted stock units and options to purchase shares of our common stock because their inclusion would have an anti-dilutive effect due to our reported net losses. We had 1.0 million restricted stock units and 1.3 million stock options outstanding as of March 31, 2019 , compared to 0.9 million restricted stock units and 1.1 million stock options outstanding at March 31, 2018 . |
Segment Information_ (Notes)
Segment Information: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information: We disaggregate our operations between customers located in service areas in which we are the incumbent local exchange carrier (“ILEC”) and provide services over network facilities operated by us and those customers located in service areas in which we are a competitive local exchange carrier (“CLEC”) and provide services over network facilities primarily leased from other carriers. We have further disaggregated our CLEC operations between enterprise, wholesale and consumer customers. As previously discussed, on December 31, 2018, we sold substantially all of our consumer CLEC operations. Prior to the sale, we operated and reported the following four segments: • Consumer & Small Business – We manage as one business our residential and small business operations in those markets in which we are the ILEC due to the similarities with respect to service offerings, marketing strategies and customer service delivery. Products and services offered to customers include traditional local and long-distance voice services, high-speed Internet services, and value-added services such as security and online back-up, which are delivered primarily over network facilities operated by us. We offer consumer video services through relationships with DirecTV and Dish Network LLC, and we also own and operate cable television franchises in some of our service areas. We offer Kinetic, a premium broadband and video entertainment offering in several of our markets. Residential customers can bundle voice, high-speed Internet and video services, to provide one convenient billing solution and receive bundle discounts. Small Business 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. • Enterprise – Products and services offered to our business customers include integrated voice and data services, which deliver voice and broadband services over a single Internet connection, data transport services, multi-site networking services which provide a fast and private connection between business locations, SD-WAN, which optimizes application performance, UCaaS, a next generation voice solution, 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. 15. Segment Information, Continued: • Wholesale – Our wholesale operations are focused on providing network bandwidth to other telecommunications carriers, network operators, and content providers. These services include special access services, which provide access and network transport services to end users, Ethernet and Wave transport up to 100 Gbps, and dark fiber and colocation services. Wholesale services also include fiber-to-the-tower connections to support the wireless backhaul market. In addition, we offer voice and data carrier services to other communications providers and to larger-scale purchasers of network capacity. We also offer traditional services including special access services and TDM private line transport. The combination of these services allow wholesale customers to provide voice and data services to their customers through the use of our network or in combination with their own networks. • Consumer CLEC – Products and services offered to customers included traditional voice and long-distance services, nationwide Internet access services, both dial-up and high-speed, as well as value added services including online backup and various e-mail services. We evaluate performance of the segments based on contribution margin or segment income, which is computed as segment revenues and sales less segment operating expenses. Segment revenues are based upon each customer’s classification to an individual segment and include all services provided to that customer. Segment revenues also include revenue from federal and state USF, CAF – Phase II support, funds received from federal access recovery mechanisms, revenues from providing switched access services, including usage-based revenues from long-distance companies and other carriers for access to our network to complete long-distance calls, reciprocal compensation received from wireless and other local connecting carriers for the use of network facilities, certain surcharges assessed to our customers, including billings for our required contributions to federal and state USF programs, and product sales to contractors. There are no differences between total segment revenues and sales and total consolidated revenues and sales. 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. Operating expenses associated with regulatory and other revenues have also been assigned to our segments. We do not assign depreciation and amortization expense, goodwill impairment, merger, integration and other costs, restructuring charges, straight-line rent expense under the master lease agreement with Uniti, share-based compensation, pension expense, business transformation expenses and costs related to network optimization projects 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 costs related to centrally-managed administrative functions, such as accounting and finance, information technology, network management, legal and human resources, are not assigned to our segments. Interest expense and net gain on early extinguishment of debt have also been excluded from segment operating results because we manage our financing activities on a total company basis and have not assigned any debt or lease obligations to the segments. Other expense, net, reorganization items, net, and income tax benefit are not monitored as a part of our segment operations and, therefore, these items also have been excluded from our segment operating results. Asset information by segment is not monitored or reported to the CODM and therefore has not been presented. All of our customers are located in the United States and we do not have any single customer that provides more than 10 percent of our total consolidated revenues and sales. 15. Segment Information, Continued: The following table summarizes our segment results: Three Months Ended (Millions) 2019 2018 Consumer & Small Business: Revenues and sales $ 461.7 $ 476.5 Costs and expenses 189.7 194.6 Segment income $ 272.0 $ 281.9 Enterprise: Revenues and sales $ 689.7 $ 746.1 Cost and expenses 536.4 600.3 Segment income $ 153.3 $ 145.8 Wholesale: Revenues and sales $ 169.2 $ 183.8 Costs and expenses 55.4 55.5 Segment income $ 113.8 $ 128.3 Consumer CLEC: Revenues and sales $ — $ 47.9 Costs and expenses — 20.6 Segment income $ — $ 27.3 Total segment revenues and sales $ 1,320.6 $ 1,454.3 Total segment costs and expenses 781.5 871.0 Total segment income $ 539.1 $ 583.3 The following table reconciles segment income to consolidated net loss: Three Months Ended (Millions) 2019 2018 Total segment income $ 539.1 $ 583.3 Depreciation and amortization (271.5 ) (381.8 ) Goodwill impairment (2,339.0 ) — Merger, integration and other costs (4.6 ) (7.3 ) Restructuring charges (10.5 ) (13.7 ) Other unassigned operating expenses (294.8 ) (111.5 ) Other expense, net (1.0 ) (2.3 ) Reorganization items, net (104.9 ) — Interest expense (91.9 ) (223.1 ) Income tax benefit 268.8 35.0 Net loss $ (2,310.3 ) $ (121.4 ) |
Supplemental Guarantor Informat
Supplemental Guarantor Information: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Guarantor Information: | Supplemental Guarantor Information: Debentures and notes, without collateral, issued by Windstream Services, LLC In connection with the issuance of the 7.750 percent senior notes due October 15, 2020, the 7.750 percent senior notes due October 1, 2021, the 7.500 percent senior notes due June 1, 2022, the 7.500 percent senior notes due April 1, 2023, and the 6.375 percent senior notes due August 1, 2023 (“the guaranteed notes”), certain of Windstream Services’ wholly-owned subsidiaries (the “Guarantors”), provide guarantees of those debentures. These guarantees are full and unconditional, subject to certain customary release provisions, as well as joint and several. All personal property assets and related operations of the Guarantors are pledged as collateral on the senior secured credit facility of Windstream Services. Certain Guarantors may be subject to restrictions on their ability to distribute earnings to Windstream Services. The remaining subsidiaries of Windstream Services (the “Non-Guarantors”) are not guarantors of the guaranteed notes. Windstream Holdings is not a guarantor of any Windstream Services debt instruments. We made revisions to correct certain misclassification errors in our previously issued supplemental guarantor financial statements that were not material to the condensed consolidating balance sheet as of March 31, 2018 or to the condensed consolidating statement of cash flows for the three months ended March 31, 2018. These revisions had no impact to the condensed consolidating statement of comprehensive income (loss) for the three months ended March 31, 2018. The effects of the misclassification errors for the condensed consolidating balance sheet were as follows: For Guarantors, we reduced accounts receivable by $77.6 million and increased affiliate receivable, net by $77.6 million . For Non-Guarantors, we increased accounts receivable by $77.6 million and reduced affiliate receivable, net by $77.6 million . The effects of the revisions to the condensed consolidating statement of cash flows were as follows: For Guarantors, we increased net cash provided by operating activities by $72.8 million and reduced cash provided by intercompany transactions, net by $72.8 million . For Non-Guarantors, we reduced net cash provided by operating activities by $72.8 million and increased cash provided by intercompany transactions, net by $72.8 million . The following information presents condensed consolidating and combined statements of comprehensive income (loss) for the three-month period ended March 31, 2019 and 2018 , condensed consolidating and combined balance sheets as of March 31, 2019 and December 31, 2018 , and condensed consolidating and combined statements of cash flows for the three-month periods ended March 31, 2019 and 2018 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. 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 232.9 $ 1,086.9 $ (17.6 ) $ 1,302.2 Product sales — 16.3 2.1 — 18.4 Total revenues and sales — 249.2 1,089.0 (17.6 ) 1,320.6 Costs and expenses: Cost of services — 140.8 737.3 (17.0 ) 861.1 Cost of products sold — 14.0 2.9 — 16.9 Selling, general and administrative — 28.7 169.8 (0.6 ) 197.9 Depreciation and amortization 0.6 67.9 203.0 — 271.5 Goodwill impairment 299.1 1,533.0 506.9 — 2,339.0 Merger, integration and other costs — — 4.6 — 4.6 Restructuring charges — 1.4 9.1 — 10.5 Total costs and expenses 299.7 1,785.8 1,633.6 (17.6 ) 3,701.5 Operating loss (299.7 ) (1,536.6 ) (544.6 ) — (2,380.9 ) (Losses) earnings from consolidated subsidiaries (1,879.9 ) (16.8 ) 9.1 1,887.6 — Other (expense) income, net (2.6 ) 0.2 1.4 — (1.0 ) Intercompany interest income (expense) 12.5 (14.7 ) 2.2 — — Reorganization items, net (104.9 ) — — — (104.9 ) Interest expense (89.2 ) (1.2 ) (1.5 ) — (91.9 ) Loss before income taxes (2,363.8 ) (1,569.1 ) (533.4 ) 1,887.6 (2,578.7 ) Income tax benefit (53.8 ) (115.9 ) (99.0 ) — (268.7 ) Net loss $ (2,310.0 ) $ (1,453.2 ) $ (434.4 ) $ 1,887.6 $ (2,310.0 ) Comprehensive loss $ (2,313.6 ) $ (1,453.2 ) $ (434.4 ) $ 1,887.6 $ (2,313.6 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 294.7 $ 1,168.8 $ (28.1 ) $ 1,435.4 Product sales — 17.7 1.2 — 18.9 Total revenues and sales — 312.4 1,170.0 (28.1 ) 1,454.3 Costs and expenses: Cost of services — 127.7 636.9 (27.7 ) 736.9 Cost of products sold — 15.2 1.6 — 16.8 Selling, general and administrative — 38.8 189.9 (0.4 ) 228.3 Depreciation and amortization 1.6 123.6 256.6 — 381.8 Merger, integration and other costs — — 7.3 — 7.3 Restructuring charges — 1.5 12.2 — 13.7 Total costs and expenses 1.6 306.8 1,104.5 (28.1 ) 1,384.8 Operating (loss) income (1.6 ) 5.6 65.5 — 69.5 (Losses) earnings from consolidated subsidiaries (53.9 ) 3.7 19.0 31.2 — Other income (expense), net 0.5 (0.3 ) (2.5 ) — (2.3 ) Intercompany interest income (expense) 16.8 (10.5 ) (6.3 ) — — Interest expense (100.8 ) (36.1 ) (86.2 ) — (223.1 ) Loss before income taxes (139.0 ) (37.6 ) (10.5 ) 31.2 (155.9 ) Income tax benefit (18.0 ) (9.8 ) (7.1 ) — (34.9 ) Net loss $ (121.0 ) $ (27.8 ) $ (3.4 ) $ 31.2 $ (121.0 ) Comprehensive loss $ (110.2 ) $ (27.8 ) $ (3.4 ) $ 31.2 $ (110.2 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet (Unaudited) As of March 31, 2019 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 395.8 $ 2.4 $ 33.8 $ — $ 432.0 Restricted cash 7.7 — — — 7.7 Accounts receivable, net — 127.4 509.3 (3.3 ) 633.4 Notes receivable - affiliate — 3.1 — (3.1 ) — Affiliates receivable, net — 465.9 1,749.1 (2,215.0 ) — Inventories — 65.3 14.5 — 79.8 Prepaid expenses and other 25.0 34.0 136.6 — 195.6 Total current assets 428.5 698.1 2,443.3 (2,221.4 ) 1,348.5 Investments in consolidated subsidiaries 6,467.6 863.9 566.6 (7,898.1 ) — Notes receivable - affiliate — 302.7 — (302.7 ) — Goodwill 358.1 76.6 — — 434.7 Other intangibles, net 449.9 318.6 406.0 — 1,174.5 Net property, plant and equipment 0.4 837.8 2,789.6 — 3,627.8 Operating lease right-of-use assets — 1,182.5 3,004.9 — 4,187.4 Other assets 20.8 16.6 46.9 — 84.3 Total Assets $ 7,725.3 $ 4,296.8 $ 9,257.3 $ (10,422.2 ) $ 10,857.2 Liabilities and Equity (Deficit) Current Liabilities: Current portion of long-term debt $ 3,415.2 $ 99.6 $ — $ — $ 3,514.8 Current portion of long-term lease obligations — — — — — Accounts payable — 71.2 200.7 — 271.9 Affiliates payable, net 2,215.0 — — (2,215.0 ) — Notes payable - affiliate — — 3.1 (3.1 ) — Advance payments and customer deposits — 26.4 140.8 (3.3 ) 163.9 Accrued taxes 0.5 17.0 47.4 — 64.9 Accrued interest 0.6 — 0.3 — 0.9 Other current liabilities 13.8 13.7 92.9 — 120.4 Total current liabilities 5,645.1 227.9 485.2 (2,221.4 ) 4,136.8 Long-term lease obligations — — — — — Notes payable - affiliate — — 302.7 (302.7 ) — Deferred income taxes — — — — — Other liabilities — 4.6 21.0 (4.2 ) 21.4 Liabilities subject to compromise 3,273.1 1,333.2 3,285.6 — 7,891.9 Total liabilities 8,918.2 1,565.7 4,094.5 (2,528.3 ) 12,050.1 Commitments and Contingencies (See Note 17) Equity (Deficit): Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 1,245.9 3,956.7 1,404.9 (5,361.6 ) 1,245.9 Accumulated other comprehensive income 32.0 — 7.3 (7.3 ) 32.0 (Accumulated deficit) retained earnings (2,470.8 ) (1,265.0 ) 3,668.7 (2,403.7 ) (2,470.8 ) Total equity (deficit) (1,192.9 ) 2,731.1 5,162.8 (7,893.9 ) (1,192.9 ) Total Liabilities and Equity (Deficit) $ 7,725.3 $ 4,296.8 $ 9,257.3 $ (10,422.2 ) $ 10,857.2 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet (Unaudited) As of December 31, 2018 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 328.2 $ — $ 27.5 $ — $ 355.7 Restricted cash 5.3 — — — 5.3 Accounts receivable, net — 115.3 541.1 (3.3 ) 653.1 Notes receivable - affiliate — 5.0 — (5.0 ) — Affiliates receivable, net — 537.9 1,842.1 (2,380.0 ) — Inventories — 66.6 15.8 — 82.4 Prepaid expenses and other 80.3 33.9 93.8 (48.3 ) 159.7 Total current assets 413.8 758.7 2,520.3 (2,436.6 ) 1,256.2 Investments in consolidated subsidiaries 4,737.8 526.9 573.6 (5,838.3 ) — Notes receivable - affiliate — 303.3 — (303.3 ) — Goodwill 657.2 1,609.6 506.9 — 2,773.7 Other intangibles, net 449.9 335.3 427.9 — 1,213.1 Net property, plant and equipment 0.5 1,125.1 3,795.3 — 4,920.9 Other assets 22.8 17.8 53.4 — 94.0 Total Assets $ 6,282.0 $ 4,676.7 $ 7,877.4 $ (8,578.2 ) $ 10,257.9 Liabilities and Equity (Deficit) Current Liabilities: Current portion of long-term debt $ 5,628.5 $ 99.6 $ — $ — $ 5,728.1 Current portion of long-term lease obligations — 1,334.5 3,235.8 — 4,570.3 Accounts payable — 226.4 277.2 — 503.6 Affiliates payable, net 2,380.0 — — (2,380.0 ) — Notes payable - affiliate — — 5.0 (5.0 ) — Advance payments and customer deposits — 31.3 152.6 (3.3 ) 180.6 Accrued taxes — 87.7 48.0 (48.3 ) 87.4 Accrued interest 41.4 1.7 0.4 — 43.5 Other current liabilities 37.8 77.7 228.7 — 344.2 Total current liabilities 8,087.7 1,858.9 3,947.7 (2,436.6 ) 11,457.7 Long-term lease obligations — 15.6 57.2 — 72.8 Notes payable - affiliate — — 303.3 (303.3 ) — Deferred income taxes 104.3 — — — 104.3 Other liabilities 9.3 55.5 477.6 — 542.4 Total liabilities 8,201.3 1,930.0 4,785.8 (2,739.9 ) 12,177.2 Commitments and Contingencies (See Note 17) Equity (Deficit): Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 1,244.2 3,956.7 1,404.9 (5,361.6 ) 1,244.2 Accumulated other comprehensive income 35.6 — 7.7 (7.7 ) 35.6 (Accumulated deficit) retained earnings (3,199.1 ) (1,249.4 ) 1,597.1 (347.7 ) (3,199.1 ) Total equity (deficit) (1,919.3 ) 2,746.7 3,091.6 (5,838.3 ) (1,919.3 ) Total Liabilities and Equity (Deficit) $ 6,282.0 $ 4,676.7 $ 7,877.4 $ (8,578.2 ) $ 10,257.9 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash (used in) provided from operating activities $ (151.5 ) $ (202.4 ) $ 572.7 $ — $ 218.8 Cash Flows from Investing Activities: Additions to property, plant and equipment — (27.6 ) (165.2 ) — (192.8 ) Other, net (4.2 ) — — — (4.2 ) Net cash used in investing activities (4.2 ) (27.6 ) (165.2 ) — (197.0 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (0.6 ) — — — (0.6 ) Repayments of debt and swaps (372.4 ) — — — (372.4 ) Proceeds from debt issuance 455.0 — — — 455.0 Debt issuance costs (14.7 ) — — — (14.7 ) Intercompany transactions, net 158.8 239.1 (397.9 ) — — Payments under long-term lease obligations — — (0.1 ) — (0.1 ) Payments under finance and capital lease obligations — (9.1 ) (0.7 ) — (9.8 ) Other, net (0.4 ) 2.4 (2.5 ) — (0.5 ) Net cash provided from (used in) financing activities 225.7 232.4 (401.2 ) — 56.9 Increase in cash, cash equivalents and restricted cash 70.0 2.4 6.3 — 78.7 Cash, Cash Equivalents and Restricted Cash: Beginning of period 333.5 — 27.5 — 361.0 End of period $ 403.5 $ 2.4 $ 33.8 $ — $ 439.7 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash (used in) provided from operating activities $ (66.1 ) $ 106.5 $ 199.4 $ — $ 239.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (0.1 ) (51.7 ) (165.8 ) — (217.6 ) Acquisition of MASS, net of cash acquired (37.6 ) — — — (37.6 ) Other, net — 0.5 (0.1 ) — 0.4 Net cash used in investing activities (37.7 ) (51.2 ) (165.9 ) — (254.8 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (0.5 ) — — — (0.5 ) Repayments of debt and swaps (217.1 ) — — — (217.1 ) Proceeds from debt issuance 313.0 — — — 313.0 Debt issuance costs (2.8 ) — — — (2.8 ) Intercompany transactions, net 35.3 (32.5 ) (2.8 ) — — Payments under long-term lease obligations — (13.1 ) (31.8 ) — (44.9 ) Payments under capital lease obligations — (12.3 ) (0.8 ) — (13.1 ) Other, net (2.1 ) 0.5 (0.9 ) — (2.5 ) Net cash provided from (used in) financing activities 125.8 (57.4 ) (36.3 ) — 32.1 Increase (decrease) in cash, cash equivalents and 22.0 (2.1 ) (2.8 ) — 17.1 Cash, Cash Equivalents and Restricted Cash: Beginning of period — 2.5 40.9 — 43.4 End of period $ 22.0 $ 0.4 $ 38.1 $ — $ 60.5 |
Commitments and Contingencies_
Commitments and Contingencies: (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies: | Commitments and Contingencies: Litigation In a notice letter received September 22, 2017 (the “Original Notice”), Aurelius Capital Master, Ltd. ("Aurelius") asserted an alleged default of certain senior unsecured notes, the 6.375 percent Senior Notes due 2023 of Windstream Services, based on alleged violations of the associated indenture (the "2013 Indenture"). Aurelius primarily alleged that Windstream Services violated the 2013 Indenture by executing the spin-off of Uniti in April 2015 that, according to Aurelius, constituted a Sale and Leaseback Transaction that was prohibited under Section 4.19 of the 2013 Indenture. In light of the allegations in the Original Notice, Windstream Services filed suit against U.S. Bank N.A., the Indenture Trustee (the “Trustee”), in Delaware Chancery Court seeking a declaration that it had not violated any provision of the 2013 Indenture and injunctive relief. On October 12, 2017, the Trustee filed suit in the Southern District of New York seeking a declaration that defaults had occurred. Windstream Services filed an answer and affirmative defenses in response to the Trustee’s complaint the following day, as well as counterclaims against the Trustee and Aurelius for declaratory relief. The Delaware action was subsequently dismissed. 17. Commitments and Contingencies, Continued: Additionally, on October 18, 2017, Windstream Services launched debt exchange offers with respect to its senior notes, including the 6.375 percent notes, and on October 31, 2017, learned that holders representing the requisite percentage of the 6.375 percent notes needed to waive the defaults alleged in the Original Notice would be received. On November 6, 2017, Windstream Services and the Trustee executed a supplemental indenture, and new 6.375 percent notes were issued, which gave effect to the waivers and consents for the 6.375 percent notes. During the fourth quarter of 2017, Windstream Services also completed consent solicitations with respect to each of its series of outstanding notes, pursuant to which noteholders agreed to waive alleged defaults with respect to the transactions related to the spin-off of Uniti and amend the indentures governing such notes to give effect to such waivers and amendments. After conducting a trial in July 2018, on February 15, 2019, Judge Jessie Furman of United States District Court for the Southern District of New York issued certain findings of fact and conclusions of law regarding the Spin-Off, invalidating the 2017 exchange and consent transactions, and found that the trustee under the 2013 Indenture and/or Aurelius was entitled to a judgment, specifically: • declaring that, in effecting the Spin-Off, we failed to comply with the covenants set forth in Section 4.19 of the 2013 Indenture restricting certain sale and leaseback transactions; • declaring that our breaches of Section 4.19 constitute a “Default” under 2013 Indenture; • declaring that the 6.375 percent notes issued in the 2017 exchange and consent transactions do not constitute “Additional Notes” under the 2013 Indenture; • declaring that the notice of default with respect to the foregoing breaches was valid and effective; • declaring that those breaches ripened into “Events of Default” as defined in the 2013 Indenture on December 6, 2017; • declaring that the notice of acceleration with respect to those “Events of Default” was valid and effective, and all principal together with all accrued and unpaid interest on the notes became immediately due and payable as of that date; • enjoining us from taking any further action to issue new notes in contravention of, or to otherwise violate, the 2013 Indenture; • awarding to Aurelius a money judgment in an amount of $310,459,959.10 plus interest from and after July 23, 2018; and • dismissing our counterclaims with prejudice. On March 1, 2019, Judge Furman issued an Order that he cannot enter a final judgment due to the Automatic Stay imposed by the filing of the Chapter 11 Cases. The matter has been administratively closed subject to the right of any party to move to reopen it within twenty-one (21) days of the conclusion of the Chapter 11 Cases or the lifting or modification of the automatic stay. On February 25, 2019, Windstream Holdings and all of its subsidiaries, including Windstream Services, filed Chapter 11 Cases in the Bankruptcy Court. On February 26, 2019, Windstream had its First Day hearing in the United States Bankruptcy Court for the Southern District of New York. At that hearing, the presiding judge approved the motions necessary to allow Windstream to continue its ongoing operations without interruption. Windstream was also granted approval to access up to $400.0 million of the $1.0 billion in new financing it received to support its business. On April 16, 2019, Windstream had its Second Day Hearing where it received $600.0 million of additional financing for a total of $1.0 billion available to us under the DIP facilities. All of Windstream’s interim motions were finalized without significant objection. 17. Commitments and Contingencies, Continued: Windstream Holdings, its current and former directors, and certain of its executive officers are the subject of shareholder-related lawsuits arising out of the merger with EarthLink Holdings Corp. in February 2017. Two putative shareholders have filed separate purported shareholder class action complaints in federal court in Arkansas and state court in Georgia, captioned Murray v. Earthlink Holdings Corp., et. al., and Yadegarian v. Windstream Holdings, Inc., et. al., respectively. Additionally, two separate shareholder derivative actions were filed during the fourth quarter of 2018 in Arkansas federal court on behalf of Windstream Holdings, Inc., styled Cindy Graham v. Wells, et. al., and Larry Graham v. Thomas, et. al. Additionally, Windstream received a shareholder demand letter in the fourth quarter of 2018 related to the EarthLink merger. All four of the complaints and demand letter contain similar assertions and claims of alleged securities law violations and breaches of fiduciary duties related to the disclosures in the joint proxy statement/prospectus soliciting shareholder approval of the merger, which the plaintiffs allege were inadequate and misleading. Suggestions of Bankruptcy and Notices of the Automatic Stay have been filed with regard to the Murray, Yadegarian and Graham cases, but the Plaintiffs are challenging the applicability of the stay with regard to non-debtor defendants. Windstream has filed an adversary proceeding motion with the Bankruptcy Court regarding this challenge. A hearing on the motion is set for June 17, 2019. We believe that we have valid defenses for each of the lawsuits, and we plan to vigorously defend the pursuit of all matters. While the ultimate resolution of the matters is not currently predictable, if there is an adverse ruling in any of these matters, the ruling could constitute a material adverse outcome on the future consolidated results of our income, cash flows, or financial condition. Windstream did not file a Suggestion of Bankruptcy as a result of the filing of the Chapter 11 cases with regard to this matter as it was determined it would fall under a regulatory exception and is precluded from the automatic stay. We currently are involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in our assumptions or the effectiveness of our strategies related to these proceedings. Additionally, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on our financial condition or results of operations. Notwithstanding the foregoing, any litigation pending against us and any claims that could be asserted against us that arose prior to the Petition Date are automatically stayed as a result of the commencement of the Chapter 11 Cases pursuant to Section 362(a) of the Bankruptcy Code, subject to certain statutory exceptions. These matters will be subject to resolution in accordance with the Bankruptcy Code and applicable orders of the Bankruptcy Court. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event: Change in Operating Segments - Effective April 1, 2019, we reorganized our business operations into three segments, Kinetic, Enterprise and Wholesale to better align our customer base within our ILEC and CLEC markets. The significant changes to our existing segments will include: (1) shifting certain small business customers with operations in ILEC-only markets from the Enterprise segment to the Consumer & Small Business segment, which we will rename Kinetic; (2) shifting governmental and resale customers from Wholesale to Enterprise; (3) shifting wholesale customers in ILEC markets from Wholesale to Kinetic; and (4) allocating certain corporate expenses, primarily property taxes, to the segments. While we initiated certain changes in preparation for the planned segment reorganization, including the release on April 29, 2019 of our 2019 operational consolidated and business segment forecast that will be the basis for determining management compensation under certain incentive-based compensation plans, management continued to evaluate the performance of our operating segments under the existing segment structure as of March 31, 2019, as presented in Note 15. Upon adoption of our new segment structure in the second quarter 2019, we will be required to evaluate goodwill, including the allocation of goodwill to any new reporting units on a relative fair value basis. As a result of reallocating our remaining goodwill of $434.7 million , we expect to record an additional goodwill impairment charge in the second quarter of 2019 of approximately $250.0 million to $350.0 million . |
Preparation of Interim Financ_2
Preparation of Interim Financial Statements: Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business – We are a leading provider of advanced network communications and technology solutions for businesses across the U.S. We also offer broadband, entertainment and security solutions to consumers and small businesses primarily in rural areas in 18 states. Additionally, we supply core transport solutions on a local and long-haul fiber network spanning approximately 150,000 miles. Consumer service revenues are generated from the provisioning of high-speed Internet, voice and video services to consumers. Enterprise service revenues include revenues from integrated voice and data services, advanced data and traditional voice and long-distance services provided to enterprise, mid-market and small business customers. Wholesale revenues include revenues from other communications services providers for special access circuits and fiber connections, voice and data transport services, and revenues from the reselling of our services. Service revenues also include switched access revenues, federal and state Universal Service Fund (“USF”) revenues, amounts received from Connect America Fund (“CAF”) - Phase II, USF surcharges and revenues from providing other miscellaneous services. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2018 , was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. In our opinion, these financial statements reflect all adjustments that are necessary for a fair statement of results of operations and financial condition for the interim periods presented including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the SEC on March 15, 2019 . Windstream Holdings and its domestic subsidiaries, including Windstream Services, file a consolidated federal income tax return. As such, Windstream Services and its subsidiaries are not separate taxable entities for federal and certain state income tax purposes. In instances when Windstream Services does not file a separate return, income taxes as presented within the accompanying consolidated financial statements attribute current and deferred income taxes of Windstream Holdings to Windstream Services and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method. Income tax provisions presented for Windstream Services and its subsidiaries are prepared under the “separate return method.” The separate return method represents a hypothetical computation assuming that the reported revenue and expenses of Windstream Services and its subsidiaries were incurred by separate taxable entities. The preparation of financial statements, in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. 1. Preparation of Interim Financial Statements, Continued: There are no significant differences between the consolidated results of operations, financial condition, and cash flows of Windstream Holdings and those of Windstream Services other than for certain expenses incurred directly by Windstream Holdings principally consisting of audit, legal and board of director fees, common stock listing fees, other shareholder-related costs, income taxes, common stock activity, and payables from Windstream Services to Windstream Holdings. Earnings per share data has not been presented for Windstream Services because that entity has not issued publicly held common stock as defined in accordance with U.S. GAAP. Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Services. |
New Accounting Pronouncements, Policy [Policy Text Block] | Leases – In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as modified by subsequently issued ASU Nos. 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively “ASU 2016-02”). ASU 2016-02 requires recognition of right-of-use assets and lease liabilities on the balance sheet. Most prominent among the changes in ASU 2016-02 is the lessees’ recognition of a right-of-use asset and a lease liability for operating leases. The right-of-use asset and lease liability are initially measured based on the present value of committed lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Expenses related to operating leases are recognized on a straight-line basis, while those related to financing leases are recognized under a front-loaded approach in which interest expense and amortization of the right-of-use asset are presented separately in the statement of operations. Similarly, lessors are required to classify leases as sales-type, finance or operating with classification affecting the pattern of income recognition. Classification for both lessees and lessors is based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. ASU 2016-02 also requires qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASU 2016-02 using the modified retrospective transition method. Under the modified retrospective transition method, we recognized the cumulative effect of initial adoption as an adjustment to our opening accumulated deficit balance at the adoption date. Comparative information for prior periods has not been restated and continues to be reported in accordance with Topic 840. We elected the practical expedients permitted under the transition guidance within ASU 2016-02 which, among other things, allowed us to carry forward the historical lease classification for capital and operating leases. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. As a practical expedient, we elected not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Exclusive of our lease arrangement with Uniti Group, Inc. (“Uniti”) described below, our existing operating lease portfolio primarily consists of fiber, colocation, real estate and equipment leases. Upon adoption of this standard, we recorded an additional lease liability of $408.4 million attributable to our operating leases based on the present value of the remaining minimum lease payments with an increase to leased assets or right-of-use assets of $382.5 million in our consolidated balance sheet. Included in the operating right-of-use assets is $6.6 million of previously recorded prepaid rent and $6.7 million in deferred rent arising from non-level rent payments. The difference between these amounts was recorded as an adjustment to our accumulated deficit. We also recorded a cumulative effect adjustment of approximately $3.0 billion decreasing our accumulated deficit due to reassessing the accounting treatment of our arrangement with Uniti and certain of its subsidiaries. The transaction with Uniti had been accounted for as a failed spin-leaseback financing arrangement for financial reporting purposes due to prohibited continuing involvement. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer preclude the application of spin-leaseback accounting to the spin-off of assets to Uniti by Windstream Services and the lease of those assets by Windstream Holdings. As a result, we de-recognized the remaining net book value of assets transferred to Uniti of approximately $1.3 billion , recognized a right-of-use asset of approximately $3.9 billion equaling the adjusted Uniti lease liability, which decreased by $0.7 billion and recorded a deferred tax liability of approximately $0.3 billion in accordance with the standard’s transition guidance as this arrangement is now accounted for as an operating lease. 1. Preparation of Interim Financial Statements, Continued: We reassessed our accounting treatment for the December 2018 sale of certain fiber assets in Minnesota to Arvig Enterprises, Inc. accounted for as a financing transaction due to our continuing involvement. ASU 2016-02 no longer precludes partial sale recognition. As a result, we de-recognized $7.5 million net book value for the portion of the fiber assets Windstream no longer controls and the related $41.5 million financing lease obligation. The difference between these amounts was recorded as an adjustment to our accumulated deficit. The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,272.9 ) $ 3,648.0 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 344.2 $ (15.4 ) $ 328.8 Deferred income taxes $ 104.3 $ 300.8 $ 405.1 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 542.4 $ (58.8 ) $ 483.6 Accumulated deficit $ (3,205.3 ) $ 3,038.3 $ (167.0 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations and consolidated balance sheet are as follows: Three Months Ended March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 692.3 $ 168.8 $ 861.1 Selling, general and administrative $ 198.3 $ — $ 198.3 Depreciation and amortization $ 354.9 $ (83.4 ) $ 271.5 Interest expense $ 205.6 $ (113.7 ) $ 91.9 Income tax benefit (expense) $ 275.9 $ (7.1 ) $ 268.8 Net loss $ (2,331.5 ) $ 21.2 $ (2,310.3 ) As presented in the table above, cost of services increased due to the recognition of annual straight-line rent expense attributable to the Uniti lease. The decrease in depreciation expense is from de-recognizing the remaining net book value of network assets transferred to Uniti and the decrease in interest expense is due to no longer accounting for the Uniti lease as a failed spin-leaseback financing arrangement. 1. Preparation of Interim Financial Statements, Continued: March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Assets Prepaid expenses and other $ 197.2 $ (1.6 ) $ 195.6 Net property, plant and equipment $ 4,817.3 $ (1,189.5 ) $ 3,627.8 Operating lease right-of-use assets $ — $ 4,187.4 $ 4,187.4 Other assets $ 90.2 $ (5.9 ) $ 84.3 Liabilities Liabilities subject to compromise (a) $ 7,961.0 $ (69.1 ) $ 7,891.9 Accumulated deficit $ (5,536.8 ) $ 3,059.5 $ (2,477.3 ) (a) As of March 31, 2019, all lease-related liabilities have been classified as liabilities subject to compromise. As a result of the change in accounting for our arrangement with Uniti from a financing to an operating lease, our consolidated statement of cash flows for the three months ended March 31, 2019 reflected a decrease in operating cash flows of $50.5 million attributable to no longer classifying a portion of the cash rental payments made to Uniti as a financing outflow as was the case for periods prior to the adoption of ASU 2016-02 as well as a reduction in reported cash paid of $113.7 million for interest. The new lease accounting standard also required additional disclosures about the nature of our leases, including significant terms and conditions, total lease costs, maturity of lease liabilities and receivables reconciled to the consolidated balance sheet, weighted-average remaining lease term, weighted-average discount rate, cash paid for amounts and significant rights and obligations under leases that have not commenced. See Note 5 for these additional disclosures. Derivatives and Hedging - Change in Benchmark Interest Rate - In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”) . This standard adds the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting. SOFR is the preferred alternative reference rate to the London Interbank Offered Rate “(LIBOR”). Because we early adopted ASU 2017-12 on January 1, 2018, this standard was effective for us on January 1, 2019 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Authoritative Guidance Financial Instruments - Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This new standard also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using a modified retrospective transition approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We intend to adopt this standard update in the first quarter of 2020. We are currently assessing the impact the new standard will have on our consolidated financial statements. 1. Preparation of Interim Financial Statements, Continued: Implementation Costs in Cloud Computing Arrangements - In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This standard requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The guidance may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. ASU 2018-15 is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently assessing the timing of adoption and the impact the new standard will have on our consolidated financial statements. |
Revenues_ Accounting Policies (
Revenues: Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Receivables, Policy [Policy Text Block] | Accounts Receivable – Accounts receivable, principally consist of amounts billed and currently due from customers and are generally unsecured and due within 30 days. The amounts due are stated at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of historical collection experience, age of outstanding receivables, current economic conditions and a specific customer’s ability to meet its financial obligations. 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 monthly 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 revenues related to communication services and product sales of $41.5 million and $40.0 million at March 31, 2019 and December 31, 2018, respectively. |
Contract Assets And Liabilities [Policy Text Block] | Contract Balances – Contract assets include unbilled amounts resulting when revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Contract assets principally consist of discounts and promotional credits given to customers. The current and noncurrent portion of contract assets is included in prepaid expenses and other and other assets, respectively, in the accompanying consolidated balance sheets. Our contract liabilities consist of services billed in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The change in our contract liabilities is primarily related to customer activity associated with services billed in advance, the receipt of cash payments and the satisfaction of our performance obligations. We classify these amounts as current or noncurrent based on the timing of when we expect to recognize revenue. |
Preparation of Interim Financ_3
Preparation of Interim Financial Statements: New Accounting Standards New Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Leases – In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as modified by subsequently issued ASU Nos. 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively “ASU 2016-02”). ASU 2016-02 requires recognition of right-of-use assets and lease liabilities on the balance sheet. Most prominent among the changes in ASU 2016-02 is the lessees’ recognition of a right-of-use asset and a lease liability for operating leases. The right-of-use asset and lease liability are initially measured based on the present value of committed lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Expenses related to operating leases are recognized on a straight-line basis, while those related to financing leases are recognized under a front-loaded approach in which interest expense and amortization of the right-of-use asset are presented separately in the statement of operations. Similarly, lessors are required to classify leases as sales-type, finance or operating with classification affecting the pattern of income recognition. Classification for both lessees and lessors is based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. ASU 2016-02 also requires qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASU 2016-02 using the modified retrospective transition method. Under the modified retrospective transition method, we recognized the cumulative effect of initial adoption as an adjustment to our opening accumulated deficit balance at the adoption date. Comparative information for prior periods has not been restated and continues to be reported in accordance with Topic 840. We elected the practical expedients permitted under the transition guidance within ASU 2016-02 which, among other things, allowed us to carry forward the historical lease classification for capital and operating leases. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. As a practical expedient, we elected not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Exclusive of our lease arrangement with Uniti Group, Inc. (“Uniti”) described below, our existing operating lease portfolio primarily consists of fiber, colocation, real estate and equipment leases. Upon adoption of this standard, we recorded an additional lease liability of $408.4 million attributable to our operating leases based on the present value of the remaining minimum lease payments with an increase to leased assets or right-of-use assets of $382.5 million in our consolidated balance sheet. Included in the operating right-of-use assets is $6.6 million of previously recorded prepaid rent and $6.7 million in deferred rent arising from non-level rent payments. The difference between these amounts was recorded as an adjustment to our accumulated deficit. We also recorded a cumulative effect adjustment of approximately $3.0 billion decreasing our accumulated deficit due to reassessing the accounting treatment of our arrangement with Uniti and certain of its subsidiaries. The transaction with Uniti had been accounted for as a failed spin-leaseback financing arrangement for financial reporting purposes due to prohibited continuing involvement. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer preclude the application of spin-leaseback accounting to the spin-off of assets to Uniti by Windstream Services and the lease of those assets by Windstream Holdings. As a result, we de-recognized the remaining net book value of assets transferred to Uniti of approximately $1.3 billion , recognized a right-of-use asset of approximately $3.9 billion equaling the adjusted Uniti lease liability, which decreased by $0.7 billion and recorded a deferred tax liability of approximately $0.3 billion in accordance with the standard’s transition guidance as this arrangement is now accounted for as an operating lease. 1. Preparation of Interim Financial Statements, Continued: We reassessed our accounting treatment for the December 2018 sale of certain fiber assets in Minnesota to Arvig Enterprises, Inc. accounted for as a financing transaction due to our continuing involvement. ASU 2016-02 no longer precludes partial sale recognition. As a result, we de-recognized $7.5 million net book value for the portion of the fiber assets Windstream no longer controls and the related $41.5 million financing lease obligation. The difference between these amounts was recorded as an adjustment to our accumulated deficit. The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,272.9 ) $ 3,648.0 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 344.2 $ (15.4 ) $ 328.8 Deferred income taxes $ 104.3 $ 300.8 $ 405.1 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 542.4 $ (58.8 ) $ 483.6 Accumulated deficit $ (3,205.3 ) $ 3,038.3 $ (167.0 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations and consolidated balance sheet are as follows: Three Months Ended March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 692.3 $ 168.8 $ 861.1 Selling, general and administrative $ 198.3 $ — $ 198.3 Depreciation and amortization $ 354.9 $ (83.4 ) $ 271.5 Interest expense $ 205.6 $ (113.7 ) $ 91.9 Income tax benefit (expense) $ 275.9 $ (7.1 ) $ 268.8 Net loss $ (2,331.5 ) $ 21.2 $ (2,310.3 ) As presented in the table above, cost of services increased due to the recognition of annual straight-line rent expense attributable to the Uniti lease. The decrease in depreciation expense is from de-recognizing the remaining net book value of network assets transferred to Uniti and the decrease in interest expense is due to no longer accounting for the Uniti lease as a failed spin-leaseback financing arrangement. 1. Preparation of Interim Financial Statements, Continued: March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Assets Prepaid expenses and other $ 197.2 $ (1.6 ) $ 195.6 Net property, plant and equipment $ 4,817.3 $ (1,189.5 ) $ 3,627.8 Operating lease right-of-use assets $ — $ 4,187.4 $ 4,187.4 Other assets $ 90.2 $ (5.9 ) $ 84.3 Liabilities Liabilities subject to compromise (a) $ 7,961.0 $ (69.1 ) $ 7,891.9 Accumulated deficit $ (5,536.8 ) $ 3,059.5 $ (2,477.3 ) (a) As of March 31, 2019, all lease-related liabilities have been classified as liabilities subject to compromise. As a result of the change in accounting for our arrangement with Uniti from a financing to an operating lease, our consolidated statement of cash flows for the three months ended March 31, 2019 reflected a decrease in operating cash flows of $50.5 million attributable to no longer classifying a portion of the cash rental payments made to Uniti as a financing outflow as was the case for periods prior to the adoption of ASU 2016-02 as well as a reduction in reported cash paid of $113.7 million for interest. The new lease accounting standard also required additional disclosures about the nature of our leases, including significant terms and conditions, total lease costs, maturity of lease liabilities and receivables reconciled to the consolidated balance sheet, weighted-average remaining lease term, weighted-average discount rate, cash paid for amounts and significant rights and obligations under leases that have not commenced. See Note 5 for these additional disclosures. Derivatives and Hedging - Change in Benchmark Interest Rate - In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”) . This standard adds the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting. SOFR is the preferred alternative reference rate to the London Interbank Offered Rate “(LIBOR”). Because we early adopted ASU 2017-12 on January 1, 2018, this standard was effective for us on January 1, 2019 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,272.9 ) $ 3,648.0 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 344.2 $ (15.4 ) $ 328.8 Deferred income taxes $ 104.3 $ 300.8 $ 405.1 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 542.4 $ (58.8 ) $ 483.6 Accumulated deficit $ (3,205.3 ) $ 3,038.3 $ (167.0 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations and consolidated balance sheet are as follows: Three Months Ended March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 692.3 $ 168.8 $ 861.1 Selling, general and administrative $ 198.3 $ — $ 198.3 Depreciation and amortization $ 354.9 $ (83.4 ) $ 271.5 Interest expense $ 205.6 $ (113.7 ) $ 91.9 Income tax benefit (expense) $ 275.9 $ (7.1 ) $ 268.8 Net loss $ (2,331.5 ) $ 21.2 $ (2,310.3 ) As presented in the table above, cost of services increased due to the recognition of annual straight-line rent expense attributable to the Uniti lease. The decrease in depreciation expense is from de-recognizing the remaining net book value of network assets transferred to Uniti and the decrease in interest expense is due to no longer accounting for the Uniti lease as a failed spin-leaseback financing arrangement. 1. Preparation of Interim Financial Statements, Continued: March 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Assets Prepaid expenses and other $ 197.2 $ (1.6 ) $ 195.6 Net property, plant and equipment $ 4,817.3 $ (1,189.5 ) $ 3,627.8 Operating lease right-of-use assets $ — $ 4,187.4 $ 4,187.4 Other assets $ 90.2 $ (5.9 ) $ 84.3 Liabilities Liabilities subject to compromise (a) $ 7,961.0 $ (69.1 ) $ 7,891.9 Accumulated deficit $ (5,536.8 ) $ 3,059.5 $ (2,477.3 ) (a) As of March 31, 2019, all lease-related liabilities have been classified as liabilities subject to compromise. |
Chapter 11 Filing, Going Conc_2
Chapter 11 Filing, Going Concern and Other Related Matters (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Liabilities Subject to Compromise Disclosures [Abstract] | |
Schedule of Liabilities Subject to Compromise [Table Text Block] | Liabilities subject to compromise at March 31, 2019 consisted of the following: (Millions) Accounts payable $ 446.1 Advance payments and customer deposits 14.2 Accrued taxes 19.9 Other current liabilities 148.0 Deferred taxes 135.8 Operating lease liabilities 4,218.3 Pension and other employee benefit plan obligations 317.5 Other liabilities 214.7 Accounts payable, accrued and other liabilities 5,514.5 Debt subject to compromise 2,348.4 Accrued interest on debt subject to compromise 29.0 Long-term debt and accrued interest 2,377.4 Total liabilities subject to compromise $ 7,891.9 |
Reorganization Items [Abstract] | |
Schedule Of Reorganization Items [Table Text Block] | Reorganization items incurred as a result of the Chapter 11 Cases presented separately in the accompanying consolidated statement of operations for the three months ended March 31, 2019 were as follows: (Millions) Write-off of deferred long-term debt fees $ 24.1 Write-off of original issue discount on debt subject to compromise 21.6 Debtor-in-possession financing costs 40.2 Professional fees and other bankruptcy related costs 19.0 Reorganization items, net $ 104.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill were as follows: (Millions) Balance at December 31, 2018: Goodwill $ 4,614.5 Accumulated impairment loss (1,840.8 ) Balance at December 31, 2018, net 2,773.7 Changes during the period: Goodwill impairment (2,339.0 ) Other — Balance at March 31, 2019: Goodwill 4,614.5 Accumulated impairment loss (4,179.8 ) Balance at March 31, 2019, net $ 434.7 Goodwill assigned to our operating segments and changes in the carrying amount of goodwill by reportable segment were as follows: (Millions) Consumer & Small Business Enterprise Wholesale Total Balance at December 31, 2018: Goodwill $ 2,321.2 $ 996.2 $ 1,297.1 $ 4,614.5 Accumulated impairment loss (1,417.8 ) — (423.0 ) (1,840.8 ) Balance at December 31, 2018, net 903.4 996.2 874.1 2,773.7 Changes during the period: Goodwill impairment (903.4 ) (996.2 ) (439.4 ) (2,339.0 ) Other — — — — Balance at March 31, 2019: Goodwill 2,321.2 996.2 1,297.1 4,614.5 Accumulated impairment loss (2,321.2 ) (996.2 ) (862.4 ) (4,179.8 ) Balance at March 31, 2019, net $ — $ — $ 434.7 $ 434.7 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets were as follows at: March 31, 2019 December 31, 2018 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (425.3 ) $ 859.8 $ 1,285.1 $ (414.6 ) $ 870.5 Customer lists 1,758.4 (1,482.3 ) 276.1 1,758.5 (1,450.4 ) 308.1 Cable franchise rights 17.3 (10.6 ) 6.7 17.3 (10.3 ) 7.0 Trade names 21.0 (4.4 ) 16.6 21.0 (3.9 ) 17.1 Developed technology and software 18.0 (8.9 ) 9.1 18.0 (7.7 ) 10.3 Patents and other 16.9 (10.7 ) 6.2 10.6 (10.5 ) 0.1 Balance $ 3,116.7 $ (1,942.2 ) $ 1,174.5 $ 3,110.5 $ (1,897.4 ) $ 1,213.1 |
Schedule of Finite-Lived Intangible Assets, Methodology and Estimated Useful Life [Table Text Block] | Intangible asset amortization methodology and useful lives were as follows as of March 31, 2019 : Intangible Assets Amortization Methodology Estimated Useful Life Franchise rights straight-line 30 years Customer lists sum of years digits 5.5 - 15 years Cable franchise rights straight-line 15 years Trade names straight-line 1-10 years Developed technology and software straight-line 3-5 years Patents and other straight-line 3 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the five years ended December 31: Year (Millions) 2019 (excluding the three months ended March 31, 2019) $ 124.0 2020 $ 133.9 2021 $ 101.2 2022 $ 71.4 2023 $ 59.0 No other long-lived assets including our other intangible assets were impaired as a result of the adoption of the new leasing standard and filing of the Chapter 11 Cases. |
Long-term Debt_ (Tables)
Long-term Debt: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Debt was as follows at: (Millions) March 31, December 31, Issued by Windstream Services: Superpriority debtor-in-possession term loan facility $ 300.0 $ — Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) 1,180.5 1,180.5 Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 568.4 568.4 Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) 802.0 1,017.0 Senior First Lien Notes – 8.625%, due October 31, 2025 (c) (f) 600.0 600.0 Senior Second Lien Notes – 10.500%, due June 30, 2024 (d) (f) (h) 414.9 414.9 Senior Second Lien Notes – 9.000%, due June 30, 2025 (d) (f) (h) 802.0 802.0 Debentures and notes, without collateral: 2020 Notes – 7.750%, due October 15, 2020 (f) (h) 78.1 78.1 2021 Notes – 7.750%, due October 1, 2021 (f) (h) 70.1 70.1 2022 Notes – 7.500%, due June 1, 2022 (f) (h) 36.2 36.2 2023 Notes – 7.500%, due April 1, 2023 (f) (h) 34.4 34.4 2023 Notes – 6.375%, due August 1, 2023 (f) (h) 806.9 806.9 2024 Notes – 8.750%, due December 15, 2024 (f) (h) 105.8 105.8 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (e) 100.0 100.0 Net discount on long-term debt (g) (5.5 ) (28.6 ) Unamortized debt issuance costs (g) (30.6 ) (57.6 ) Long-term debt prior to reclassification to liabilities subject to compromise 5,863.2 5,728.1 Less current portion (3,514.8 ) (5,728.1 ) Less amounts reclassified to liabilities subject to compromise (2,348.4 ) — Total long-term debt $ — $ — Prior to the filing of the Chapter 11 Cases, additional information with respect to our debt obligations was as follows: (a) If the maturity of the revolving line of credit is not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan will be April 24, 2020; provided further, if the 2020 Notes have not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan will be July 15, 2020. (b) On January 3, 2019, Windstream Services’ reduced future maturities of its revolving line of credit of $312.0 million using proceeds received from the sale of the Consumer CLEC business. (c) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a first priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. 4. Debt, Continued: (d) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a second priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. (e) These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. (f) Windstream Services may call the remaining aggregate principal amounts of these debentures and notes at various premiums upon early redemption. (g) The net discount balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. (h) Balances have been reclassified to liabilities subject to compromise because these obligations were under collateralized as of the Petition Date of the Chapter 11 Cases. |
Interest Expense, Net Disclosure | Interest expense was as follows: Three Months Ended (Millions) 2019 2018 Interest expense - long-term debt $ 93.8 $ 101.9 Interest expense - long-term lease obligations: Telecommunications network assets — 118.5 Real estate contributed to pension plan 1.6 1.5 Impact of interest rate swaps (2.9 ) 0.6 Interest on finance leases and other 0.9 1.5 Less capitalized interest expense (1.5 ) (0.9 ) Total interest expense $ 91.9 $ 223.1 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease Cost and Supplemental Information | Components of lease expense were as follows for the three-month period ended March 31, 2019 : (Millions) Classification Operating lease costs (a) Cost of services, Selling, general and administrative $ 201.5 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 4.4 Interest on lease liabilities Interest expense 0.4 Net lease expense $ 206.3 (a) Includes short-term leases and variable lease costs which are not material. Supplemental balance sheet information related to leases was as follows: (Millions) March 31, 2019 Operating Leases Operating lease right-of-use assets $ 4,187.4 Current portion of operating lease obligations 3,916.1 Operating lease liabilities 302.2 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,218.3 Less amounts reclassified to liabilities subject to compromise (4,218.3 ) Total operating lease liabilities $ — Finance Leases Property, plant and equipment, gross $ 231.7 Accumulated depreciation (144.8 ) Net property, plant and equipment 86.9 Other current liabilities 45.8 Other liabilities 39.8 Finance lease liabilities prior to reclassification to liabilities subject to compromise 85.6 Less amounts reclassified to liabilities subject to compromise (85.6 ) Total finance lease liabilities $ — Weighted Average Remaining Lease Term Operating lease 10.7 years Finance lease 2.3 years Leaseback of real estate contributed to pension plan 11.3 years Weighted Average Discount Rate Operating lease 14.0 % Finance lease 4.5 % Leaseback of real estate contributed to pension plan 8.6 % 5. Leases, Continued: Supplemental cash flow information related to leases was as follows for the three-month period ended March 31, 2019 : (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 196.9 Operating cash outflows from finance leases 1.3 Financing cash outflows from finance leases 13.7 Right-of-use assets obtained in exchange for lease obligations: Operating leases 4.0 Finance leases 3.9 |
Lessee, Operating Lease, Liability, Maturity | As of March 31, 2019, future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the three months ended March 31, 2019) $ 605.0 $ 4.9 $ 41.1 2020 772.6 6.7 26.3 2021 758.1 6.9 9.5 2022 738.8 7.1 4.8 2023 723.3 7.3 4.7 Thereafter 4,496.6 55.0 6.5 Total future minimum lease payments 8,094.4 87.9 92.9 Less: Amounts representing interest 3,876.1 66.6 7.3 Less: Residual value — (51.5 ) — Present value of lease liabilities $ 4,218.3 $ 72.8 $ 85.6 |
Finance Lease, Liability, Maturity | As of March 31, 2019, future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the three months ended March 31, 2019) $ 605.0 $ 4.9 $ 41.1 2020 772.6 6.7 26.3 2021 758.1 6.9 9.5 2022 738.8 7.1 4.8 2023 723.3 7.3 4.7 Thereafter 4,496.6 55.0 6.5 Total future minimum lease payments 8,094.4 87.9 92.9 Less: Amounts representing interest 3,876.1 66.6 7.3 Less: Residual value — (51.5 ) — Present value of lease liabilities $ 4,218.3 $ 72.8 $ 85.6 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840 were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840 were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. |
Lessor, Operating Lease, Payments to be Received, Maturity | Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2019 (excluding the three months ended March 31, 2019) $ 46.6 2020 49.4 2021 32.6 2022 11.4 2023 5.7 Thereafter 0.9 Total future lease receipts $ 146.6 |
Derivatives_ Schedule of Deriva
Derivatives: Schedule of Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Set forth below is information related to interest rate swap agreements: (Millions, except for percentages) March 31, December 31, Designated portion, measured at fair value: Other current assets $ — $ 15.3 Other current liabilities $ — $ 6.8 Accumulated other comprehensive income $ — $ 39.7 De-designated portion, unamortized value: Liabilities subject to compromise $ 6.1 $ — Accumulated other comprehensive income $ 32.9 $ (2.4 ) Weighted average fixed rate paid 2.31 % 2.31 % Variable rate received 2.48 % 2.46 % |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Changes in derivative instruments were as follows for the three-month periods ended March 31: (Millions) 2019 2018 Changes in fair value, net of tax $ (2.4 ) $ 11.0 Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax $ (0.9 ) $ 0.7 |
Offsetting Assets | Information pertaining to derivative assets was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 15.3 $ (3.2 ) $ — $ 12.1 |
Offsetting Liabilities | Information pertaining to derivative liabilities was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 6.8 $ (3.2 ) $ — $ 3.6 |
Fair Value Measurements_ (Table
Fair Value Measurements: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of cash equivalents and interest rate swaps | The fair values of cash equivalents, interest rate swaps and debt were determined using the following inputs at: (Millions) March 31, December 31, Recorded at Fair Value in the Financial Statements: Cash equivalents - Level 1 (a) $ — $ 310.0 Derivatives Interest rate swap assets - Level 2 $ — $ 15.3 Interest rate swap liabilities - Level 2 $ — $ 6.8 Not Recorded at Fair Value in the Financial Statements: (b) Debt, including current portion - Level 2: Included in current portion of long-term debt $ 3,459.2 $ 4,405.8 Included in liabilities subject to compromise $ 1,106.7 $ — (a) Cash equivalents are highly liquid, actively traded money market funds with next day access. (b) Recognized at carrying value of $5,893.8 million and $5,785.7 million in debt, including current portion, and liabilities subject to compromise and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of March 31, 2019 and December 31, 2018 , respectively. |
Revenues_ (Tables)
Revenues: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract assets and liabilities from contracts with customers were as follows at: March 31, December 31, (Millions) 2019 2018 Contract assets (a) $ 13.0 $ 12.6 Contract liabilities (b) $ 181.4 $ 184.8 Revenues recognized included in the opening contract liability balance $ 156.8 $ 194.9 (a) Includes $8.0 million and $8.3 million in prepaid expense and other and $5.0 million and $4.3 million in other assets as of March 31, 2019 and December 31, 2018, respectively. (b) Includes $157.9 million and $172.1 million in advance payments and customer deposits and $10.4 million and $12.7 million in other liabilities as of March 31, 2019 and December 31, 2018, respectively. Also includes $13.1 million in liabilities subject to compromise as of March 31, 2019 . |
Disaggregation of Revenue [Table Text Block] | Revenues recognized from contracts with customers by customer and product type for the three-month period ended March 31, 2019 was as follows: (Millions) Consumer & Small Business Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 239.9 $ — $ — $ — $ 239.9 Voice and long-distance 28.6 — — — 28.6 Video and miscellaneous 10.3 — — — 10.3 Core (a) — 311.3 — — 311.3 Strategic (b) — 45.4 — — 45.4 Legacy (c) — 130.5 — — 130.5 Small business services 69.9 — — — 69.9 Core wholesale (d) — — 129.6 — 129.6 Resale (e) — — 17.7 — 17.7 Wireless TDM (f) — — 2.1 — 2.1 Switched access 6.3 — 7.5 — 13.8 Other (g) — 124.1 — — 124.1 Service revenues from contracts with customers 355.0 611.3 156.9 — 1,123.2 Product sales 8.0 10.1 0.3 — 18.4 Total revenue from contracts with customers 363.0 621.4 157.2 — 1,141.6 Other service revenues (h) 98.7 68.3 12.0 — 179.0 Total revenues and sales $ 461.7 $ 689.7 $ 169.2 $ — $ 1,320.6 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the three-month period ended March 31, 2018 was as follows: (Millions) Consumer & Small Business Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 243.6 $ — $ — $ 24.4 $ 268.0 Voice and long-distance 31.4 — — — 31.4 Video and miscellaneous 11.4 — — — 11.4 Dial-up, e-mail and miscellaneous — — — 22.8 22.8 Small business services 78.1 — — — 78.1 Core (a) — 351.7 — — 351.7 Strategic (b) — 36.5 — — 36.5 Legacy (c) — 153.3 — — 153.3 Core wholesale (d) — — 142.0 — 142.0 Resale (e) — — 18.3 — 18.3 Wireless TDM (f) — — 3.2 — 3.2 Switched access 8.1 — 9.4 — 17.5 Other (g) — 127.9 — — 127.9 Service revenues from contracts with customers 372.6 669.4 172.9 47.2 1,262.1 Product sales 5.5 13.2 0.1 0.1 18.9 Total revenue from contracts with customers 378.1 682.6 173.0 47.3 1,281.0 Other service revenues (h) 98.4 63.5 10.8 0.6 173.3 Total revenues and sales $ 476.5 $ 746.1 $ 183.8 $ 47.9 $ 1,454.3 Note: During the first quarter of 2019, we reclassified our Enterprise service revenues by type and class of service offering to align with our internal management reporting of this segment’s revenues and sales. Prior period information has been revised to conform with the current year presentation. These changes did not impact total revenues and sales previously reported for the Enterprise segment. (a) Core revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance, and managed services. (b) Strategic revenues consist of Software Defined Wide Area Network (“SD-WAN”), Unified Communications as a Service (“UCaaS”), OfficeSuite©, and associated network access products and services. (c) Legacy revenues consist of Time Division Multiplexing (“TDM”) voice and data services. (d) Core wholesale revenues primarily include revenues from providing special access circuits, fiber connections, data transport and wireless backhaul services. (e) Revenues consist of voice and data services sold to other communications services providers on a resale basis. (f) Revenues consists of TDM private line transport services. 8. Revenues, Continued: (g) Revenues primarily consist of administrative service fees, subscriber line charges, and non-recurring usage-based long-distance revenues. (h) Other service revenues primarily include end user surcharges, CAF – Phase II funding, state USF and access recovery mechanism (“ARM”) support and lease revenue. |
Employee Benefit Plans and Po_2
Employee Benefit Plans and Postretirement Benefits: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Pension And Other Postretirement Benefits, Net Periodic Benefit Costs, Disclosure | The components of pension benefit income, including provision for executive retirement agreements, were as follows: Three Months Ended (Millions) 2019 2018 Benefits earned during the period (a) $ 0.6 $ 0.9 Interest cost on benefit obligation (b) 10.9 10.2 Amortization of prior service credit (b) (0.3 ) (1.2 ) Expected return on plan assets (b) (12.4 ) (14.3 ) Net periodic benefit income $ (1.2 ) $ (4.4 ) (a) Included in cost of services and selling, general and administrative expense. (b) Included in other expense, net. For 2019, the expected employer contributions for pension benefits consists of $15.2 million to the qualified pension plan to satisfy our remaining 2018 and 2019 funding requirements and $0.8 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. In the first quarter of 2019, we made our required quarterly employer contribution of $3.0 million in cash. In the first quarter of 2018, we made our required quarterly employer contribution of $5.2 million in cash and also contributed 0.8 million shares of our common stock with a value of approximately $5.8 million to the qualified pension plan. 9. Employee Benefit Plans and Postretirement Benefits, Continued: The components of postretirement benefits expense were as follows: Three Months Ended (Millions) 2019 2018 Interest cost on benefit obligation (a) $ 0.2 $ 0.2 Amortization of net actuarial loss (a) — 0.1 Amortization of prior service credit (a) (0.1 ) (0.1 ) Net periodic benefit expense $ 0.1 $ 0.2 (a) Included in other expense, net. |
Share-Based Compensation Plan_2
Share-Based Compensation Plans: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | Service-based restricted stock and restricted unit activity for the three-month period ended March 31, 2019 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2018 522.1 $ 23.34 Granted — $ — Vested (118.8 ) $ 32.05 Forfeited (10.0 ) $ 34.18 Non-vested at March 31, 2019 393.3 $ 20.43 Performance restricted stock unit activity for the three-month period ended March 31, 2019 was as follows: (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2018 325.4 $ 28.35 Granted 698.5 $ 3.40 Vested (147.0 ) $ 28.25 Forfeited (17.4 ) $ 27.76 Non-vested at March 31, 2019 859.5 $ 8.10 |
Merger, Integration and Other_2
Merger, Integration and Other Costs and Restructuring Charges: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Merger, Integration and Other Costs and Restructuring Charges [Abstract] | |
Schedule of Merger, Integration and Other Costs and Restructuring Activities | A summary of the merger, integration and other costs and restructuring charges recorded was as follows: Three Months Ended (Millions) 2019 2018 Merger, integration and other costs: Information technology conversion costs $ 0.2 $ 0.4 Costs related to merger with EarthLink (a) 3.4 4.4 Costs related to merger with Broadview (b) — 1.9 Other 1.0 0.6 Total merger, integration and other costs 4.6 7.3 Restructuring charges 10.5 13.7 Total merger, integration and other costs and restructuring charges $ 15.1 $ 21.0 (a) For the three-month period ended March 31, 2019 and 2018 , these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $2.9 million and $3.0 million , respectively, and other miscellaneous expenses of 0.5 million and $1.4 million , respectively. (b) For the three-month period ended March 31, 2018, these amounts include severance and employee benefit costs for Broadview employees terminated after the acquisition of $1.3 million and other miscellaneous expenses of $0.6 million . |
Schedule of Restructuring and Reorganization Costs (Benefits), Net | The following is a summary of the activity related to the liabilities associated with merger, integration and other costs and restructuring charges at March 31 : Restructuring Charges (Millions) Merger, Integration and Other Charges Severance and Benefit Costs Lease Termination Costs Total Balance at December 31, 2018 $ 4.0 $ 12.6 $ 15.3 $ 31.9 Reclassified to operating lease obligations upon adoption of ASU 2016-02 (8.6 ) — (15.3 ) (23.9 ) Expenses incurred in period 4.6 10.5 — 15.1 Cash outlays during the period — (16.5 ) — (16.5 ) Balance at March 31, 2019 $ — $ 6.6 $ — $ 6.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The significant components of the net deferred income tax (asset) liability were as follows: (Millions) March 31, December 31, 2018 Property, plant and equipment $ 516.1 $ 825.5 Goodwill and other intangible assets 247.3 477.7 Operating loss and credit carryforward (591.7 ) (576.8 ) Postretirement and other employee benefits (78.6 ) (79.6 ) Unrealized holding loss and interest rate swaps 5.8 7.2 Deferred compensation (2.0 ) (2.3 ) Bad debt (14.4 ) (15.1 ) Long-term lease obligations (1,091.9 ) (1,170.9 ) Operating lease right-of-use assets 1,063.1 — Deferred debt costs (34.9 ) (19.2 ) Share-based compensation (6.0 ) (6.8 ) Interest expense (13.5 ) — Other, net (7.0 ) (20.4 ) (7.7 ) (580.7 ) Valuation allowance 143.5 685.0 Less amounts reclassified to liabilities subject to compromise (135.8 ) — Deferred income taxes, net $ — $ 104.3 Deferred tax assets $ (1,904.3 ) $ (1,954.0 ) Deferred tax liabilities 2,040.1 2,058.3 Less amounts reclassified to liabilities subject to compromise (135.8 ) — Deferred income taxes, net $ — $ 104.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income balances, net of tax, were as follows: (Millions) March 31, December 31, Pension and postretirement plans $ 7.4 $ 7.7 Unrealized net gains (losses) on interest rate swaps: Designated portion — 29.7 De-designated portion 24.6 (1.8 ) Accumulated other comprehensive income $ 32.0 $ 35.6 |
Changes in accumulated other comprehensive income, net of tax [Table Text Block] | Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Net Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2018 $ 27.9 $ 7.7 $ 35.6 Other comprehensive income before reclassifications (2.4 ) — (2.4 ) Amounts reclassified from other accumulated comprehensive income (a) (0.9 ) (0.3 ) (1.2 ) Balance at March 31, 2019 $ 24.6 $ 7.4 $ 32.0 (a) See separate table below for details about these reclassifications. |
Reclassifications out of accumulated other comprehensive income [Table Text Block] | Reclassifications out of accumulated other comprehensive income were as follows: (Millions) Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Three Months Ended Affected Line Item in the Consolidated Statements of Operations 2019 2018 Interest rate swaps: Amortization of net unrealized losses on de-designated interest rate swaps $ (1.2 ) $ 0.9 Interest expense (1.2 ) 0.9 Loss before income taxes 0.3 (0.2 ) Income tax (expense) benefit (0.9 ) 0.7 Net loss Pension and postretirement plans: Amortization of net actuarial loss — 0.1 (a) Amortization of prior service credits (0.4 ) (1.3 ) (a) (0.4 ) (1.2 ) Loss before income taxes 0.1 0.3 Income tax (expense) benefit (0.3 ) (0.9 ) Net loss Total reclassifications for the period, net of tax $ (1.2 ) $ (0.2 ) Net loss (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit expense (see Note 9). |
Earnings (Loss) Per Share_ Sche
Earnings (Loss) Per Share: Schedule of Earnings per Share, Basic and Diluted (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows: Three Months Ended (Millions, except per share amounts) 2019 2018 Basic and diluted loss per share: Numerator: Net loss attributable to common shares $ (2,310.3 ) $ (121.4 ) Denominator: Basic and diluted shares outstanding Weighted average basic and diluted shares outstanding 42.6 37.4 Basic and diluted loss per share: Net loss ($54.26 ) ($3.25 ) |
Segment Information_ (Tables)
Segment Information: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes our segment results: Three Months Ended (Millions) 2019 2018 Consumer & Small Business: Revenues and sales $ 461.7 $ 476.5 Costs and expenses 189.7 194.6 Segment income $ 272.0 $ 281.9 Enterprise: Revenues and sales $ 689.7 $ 746.1 Cost and expenses 536.4 600.3 Segment income $ 153.3 $ 145.8 Wholesale: Revenues and sales $ 169.2 $ 183.8 Costs and expenses 55.4 55.5 Segment income $ 113.8 $ 128.3 Consumer CLEC: Revenues and sales $ — $ 47.9 Costs and expenses — 20.6 Segment income $ — $ 27.3 Total segment revenues and sales $ 1,320.6 $ 1,454.3 Total segment costs and expenses 781.5 871.0 Total segment income $ 539.1 $ 583.3 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table reconciles segment income to consolidated net loss: Three Months Ended (Millions) 2019 2018 Total segment income $ 539.1 $ 583.3 Depreciation and amortization (271.5 ) (381.8 ) Goodwill impairment (2,339.0 ) — Merger, integration and other costs (4.6 ) (7.3 ) Restructuring charges (10.5 ) (13.7 ) Other unassigned operating expenses (294.8 ) (111.5 ) Other expense, net (1.0 ) (2.3 ) Reorganization items, net (104.9 ) — Interest expense (91.9 ) (223.1 ) Income tax benefit 268.8 35.0 Net loss $ (2,310.3 ) $ (121.4 ) |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information: (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 232.9 $ 1,086.9 $ (17.6 ) $ 1,302.2 Product sales — 16.3 2.1 — 18.4 Total revenues and sales — 249.2 1,089.0 (17.6 ) 1,320.6 Costs and expenses: Cost of services — 140.8 737.3 (17.0 ) 861.1 Cost of products sold — 14.0 2.9 — 16.9 Selling, general and administrative — 28.7 169.8 (0.6 ) 197.9 Depreciation and amortization 0.6 67.9 203.0 — 271.5 Goodwill impairment 299.1 1,533.0 506.9 — 2,339.0 Merger, integration and other costs — — 4.6 — 4.6 Restructuring charges — 1.4 9.1 — 10.5 Total costs and expenses 299.7 1,785.8 1,633.6 (17.6 ) 3,701.5 Operating loss (299.7 ) (1,536.6 ) (544.6 ) — (2,380.9 ) (Losses) earnings from consolidated subsidiaries (1,879.9 ) (16.8 ) 9.1 1,887.6 — Other (expense) income, net (2.6 ) 0.2 1.4 — (1.0 ) Intercompany interest income (expense) 12.5 (14.7 ) 2.2 — — Reorganization items, net (104.9 ) — — — (104.9 ) Interest expense (89.2 ) (1.2 ) (1.5 ) — (91.9 ) Loss before income taxes (2,363.8 ) (1,569.1 ) (533.4 ) 1,887.6 (2,578.7 ) Income tax benefit (53.8 ) (115.9 ) (99.0 ) — (268.7 ) Net loss $ (2,310.0 ) $ (1,453.2 ) $ (434.4 ) $ 1,887.6 $ (2,310.0 ) Comprehensive loss $ (2,313.6 ) $ (1,453.2 ) $ (434.4 ) $ 1,887.6 $ (2,313.6 ) 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Comprehensive Income (Loss) (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Revenues and sales: Service revenues $ — $ 294.7 $ 1,168.8 $ (28.1 ) $ 1,435.4 Product sales — 17.7 1.2 — 18.9 Total revenues and sales — 312.4 1,170.0 (28.1 ) 1,454.3 Costs and expenses: Cost of services — 127.7 636.9 (27.7 ) 736.9 Cost of products sold — 15.2 1.6 — 16.8 Selling, general and administrative — 38.8 189.9 (0.4 ) 228.3 Depreciation and amortization 1.6 123.6 256.6 — 381.8 Merger, integration and other costs — — 7.3 — 7.3 Restructuring charges — 1.5 12.2 — 13.7 Total costs and expenses 1.6 306.8 1,104.5 (28.1 ) 1,384.8 Operating (loss) income (1.6 ) 5.6 65.5 — 69.5 (Losses) earnings from consolidated subsidiaries (53.9 ) 3.7 19.0 31.2 — Other income (expense), net 0.5 (0.3 ) (2.5 ) — (2.3 ) Intercompany interest income (expense) 16.8 (10.5 ) (6.3 ) — — Interest expense (100.8 ) (36.1 ) (86.2 ) — (223.1 ) Loss before income taxes (139.0 ) (37.6 ) (10.5 ) 31.2 (155.9 ) Income tax benefit (18.0 ) (9.8 ) (7.1 ) — (34.9 ) Net loss $ (121.0 ) $ (27.8 ) $ (3.4 ) $ 31.2 $ (121.0 ) Comprehensive loss $ (110.2 ) $ (27.8 ) $ (3.4 ) $ 31.2 $ (110.2 ) |
Condensed Consolidating Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet (Unaudited) As of March 31, 2019 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 395.8 $ 2.4 $ 33.8 $ — $ 432.0 Restricted cash 7.7 — — — 7.7 Accounts receivable, net — 127.4 509.3 (3.3 ) 633.4 Notes receivable - affiliate — 3.1 — (3.1 ) — Affiliates receivable, net — 465.9 1,749.1 (2,215.0 ) — Inventories — 65.3 14.5 — 79.8 Prepaid expenses and other 25.0 34.0 136.6 — 195.6 Total current assets 428.5 698.1 2,443.3 (2,221.4 ) 1,348.5 Investments in consolidated subsidiaries 6,467.6 863.9 566.6 (7,898.1 ) — Notes receivable - affiliate — 302.7 — (302.7 ) — Goodwill 358.1 76.6 — — 434.7 Other intangibles, net 449.9 318.6 406.0 — 1,174.5 Net property, plant and equipment 0.4 837.8 2,789.6 — 3,627.8 Operating lease right-of-use assets — 1,182.5 3,004.9 — 4,187.4 Other assets 20.8 16.6 46.9 — 84.3 Total Assets $ 7,725.3 $ 4,296.8 $ 9,257.3 $ (10,422.2 ) $ 10,857.2 Liabilities and Equity (Deficit) Current Liabilities: Current portion of long-term debt $ 3,415.2 $ 99.6 $ — $ — $ 3,514.8 Current portion of long-term lease obligations — — — — — Accounts payable — 71.2 200.7 — 271.9 Affiliates payable, net 2,215.0 — — (2,215.0 ) — Notes payable - affiliate — — 3.1 (3.1 ) — Advance payments and customer deposits — 26.4 140.8 (3.3 ) 163.9 Accrued taxes 0.5 17.0 47.4 — 64.9 Accrued interest 0.6 — 0.3 — 0.9 Other current liabilities 13.8 13.7 92.9 — 120.4 Total current liabilities 5,645.1 227.9 485.2 (2,221.4 ) 4,136.8 Long-term lease obligations — — — — — Notes payable - affiliate — — 302.7 (302.7 ) — Deferred income taxes — — — — — Other liabilities — 4.6 21.0 (4.2 ) 21.4 Liabilities subject to compromise 3,273.1 1,333.2 3,285.6 — 7,891.9 Total liabilities 8,918.2 1,565.7 4,094.5 (2,528.3 ) 12,050.1 Commitments and Contingencies (See Note 17) Equity (Deficit): Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 1,245.9 3,956.7 1,404.9 (5,361.6 ) 1,245.9 Accumulated other comprehensive income 32.0 — 7.3 (7.3 ) 32.0 (Accumulated deficit) retained earnings (2,470.8 ) (1,265.0 ) 3,668.7 (2,403.7 ) (2,470.8 ) Total equity (deficit) (1,192.9 ) 2,731.1 5,162.8 (7,893.9 ) (1,192.9 ) Total Liabilities and Equity (Deficit) $ 7,725.3 $ 4,296.8 $ 9,257.3 $ (10,422.2 ) $ 10,857.2 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Balance Sheet (Unaudited) As of December 31, 2018 (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and cash equivalents $ 328.2 $ — $ 27.5 $ — $ 355.7 Restricted cash 5.3 — — — 5.3 Accounts receivable, net — 115.3 541.1 (3.3 ) 653.1 Notes receivable - affiliate — 5.0 — (5.0 ) — Affiliates receivable, net — 537.9 1,842.1 (2,380.0 ) — Inventories — 66.6 15.8 — 82.4 Prepaid expenses and other 80.3 33.9 93.8 (48.3 ) 159.7 Total current assets 413.8 758.7 2,520.3 (2,436.6 ) 1,256.2 Investments in consolidated subsidiaries 4,737.8 526.9 573.6 (5,838.3 ) — Notes receivable - affiliate — 303.3 — (303.3 ) — Goodwill 657.2 1,609.6 506.9 — 2,773.7 Other intangibles, net 449.9 335.3 427.9 — 1,213.1 Net property, plant and equipment 0.5 1,125.1 3,795.3 — 4,920.9 Other assets 22.8 17.8 53.4 — 94.0 Total Assets $ 6,282.0 $ 4,676.7 $ 7,877.4 $ (8,578.2 ) $ 10,257.9 Liabilities and Equity (Deficit) Current Liabilities: Current portion of long-term debt $ 5,628.5 $ 99.6 $ — $ — $ 5,728.1 Current portion of long-term lease obligations — 1,334.5 3,235.8 — 4,570.3 Accounts payable — 226.4 277.2 — 503.6 Affiliates payable, net 2,380.0 — — (2,380.0 ) — Notes payable - affiliate — — 5.0 (5.0 ) — Advance payments and customer deposits — 31.3 152.6 (3.3 ) 180.6 Accrued taxes — 87.7 48.0 (48.3 ) 87.4 Accrued interest 41.4 1.7 0.4 — 43.5 Other current liabilities 37.8 77.7 228.7 — 344.2 Total current liabilities 8,087.7 1,858.9 3,947.7 (2,436.6 ) 11,457.7 Long-term lease obligations — 15.6 57.2 — 72.8 Notes payable - affiliate — — 303.3 (303.3 ) — Deferred income taxes 104.3 — — — 104.3 Other liabilities 9.3 55.5 477.6 — 542.4 Total liabilities 8,201.3 1,930.0 4,785.8 (2,739.9 ) 12,177.2 Commitments and Contingencies (See Note 17) Equity (Deficit): Common stock — 39.4 81.9 (121.3 ) — Additional paid-in capital 1,244.2 3,956.7 1,404.9 (5,361.6 ) 1,244.2 Accumulated other comprehensive income 35.6 — 7.7 (7.7 ) 35.6 (Accumulated deficit) retained earnings (3,199.1 ) (1,249.4 ) 1,597.1 (347.7 ) (3,199.1 ) Total equity (deficit) (1,919.3 ) 2,746.7 3,091.6 (5,838.3 ) (1,919.3 ) Total Liabilities and Equity (Deficit) $ 6,282.0 $ 4,676.7 $ 7,877.4 $ (8,578.2 ) $ 10,257.9 |
Condensed Consolidating Statement of Cash Flows [Table Text Block] | Condensed Consolidating Statement of Cash Flows (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash (used in) provided from operating activities $ (151.5 ) $ (202.4 ) $ 572.7 $ — $ 218.8 Cash Flows from Investing Activities: Additions to property, plant and equipment — (27.6 ) (165.2 ) — (192.8 ) Other, net (4.2 ) — — — (4.2 ) Net cash used in investing activities (4.2 ) (27.6 ) (165.2 ) — (197.0 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (0.6 ) — — — (0.6 ) Repayments of debt and swaps (372.4 ) — — — (372.4 ) Proceeds from debt issuance 455.0 — — — 455.0 Debt issuance costs (14.7 ) — — — (14.7 ) Intercompany transactions, net 158.8 239.1 (397.9 ) — — Payments under long-term lease obligations — — (0.1 ) — (0.1 ) Payments under finance and capital lease obligations — (9.1 ) (0.7 ) — (9.8 ) Other, net (0.4 ) 2.4 (2.5 ) — (0.5 ) Net cash provided from (used in) financing activities 225.7 232.4 (401.2 ) — 56.9 Increase in cash, cash equivalents and restricted cash 70.0 2.4 6.3 — 78.7 Cash, Cash Equivalents and Restricted Cash: Beginning of period 333.5 — 27.5 — 361.0 End of period $ 403.5 $ 2.4 $ 33.8 $ — $ 439.7 16. Supplemental Guarantor Information, Continued: Condensed Consolidating Statement of Cash Flows (Unaudited) Three Months Ended (Millions) Windstream Services Guarantors Non- Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net cash (used in) provided from operating activities $ (66.1 ) $ 106.5 $ 199.4 $ — $ 239.8 Cash Flows from Investing Activities: Additions to property, plant and equipment (0.1 ) (51.7 ) (165.8 ) — (217.6 ) Acquisition of MASS, net of cash acquired (37.6 ) — — — (37.6 ) Other, net — 0.5 (0.1 ) — 0.4 Net cash used in investing activities (37.7 ) (51.2 ) (165.9 ) — (254.8 ) Cash Flows from Financing Activities: Distributions to Windstream Holdings, Inc. (0.5 ) — — — (0.5 ) Repayments of debt and swaps (217.1 ) — — — (217.1 ) Proceeds from debt issuance 313.0 — — — 313.0 Debt issuance costs (2.8 ) — — — (2.8 ) Intercompany transactions, net 35.3 (32.5 ) (2.8 ) — — Payments under long-term lease obligations — (13.1 ) (31.8 ) — (44.9 ) Payments under capital lease obligations — (12.3 ) (0.8 ) — (13.1 ) Other, net (2.1 ) 0.5 (0.9 ) — (2.5 ) Net cash provided from (used in) financing activities 125.8 (57.4 ) (36.3 ) — 32.1 Increase (decrease) in cash, cash equivalents and 22.0 (2.1 ) (2.8 ) — 17.1 Cash, Cash Equivalents and Restricted Cash: Beginning of period — 2.5 40.9 — 43.4 End of period $ 22.0 $ 0.4 $ 38.1 $ — $ 60.5 |
Preparation of Interim Financ_4
Preparation of Interim Financial Statements: New Accounting Standards - Cumulative Effect Adjustment due to ASU 2016-02 (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Feb. 25, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Present value of lease liabilities | $ 4,218.3 | $ 0 | |||
Prepaid expenses and other | 195.6 | $ 159 | |||
Net property, plant and equipment | 3,627.8 | 3,648 | $ 4,920.9 | ||
Operating lease right-of-use assets | 4,187.4 | 4,239.1 | 0 | ||
Other assets | 84.3 | 88.1 | |||
Current portion of long-term lease obligations | 0 | 0 | 4,570.3 | ||
Current portion of operating lease obligations | 3,916.1 | 3,947.8 | |||
Other current liabilities | 120.4 | 328.8 | 344.2 | ||
Deferred income taxes | 0 | 405.1 | 104.3 | ||
Operating lease obligations | 302.2 | 317.2 | |||
Other liabilities | 21.4 | 483.6 | 542.4 | ||
Liabilities subject to compromise | 7,891.9 | 0 | |||
Accumulated deficit | (2,477.3) | (167) | (3,205.3) | ||
Selling, general and administrative | 198.3 | $ 228.8 | |||
Depreciation and amortization | 271.5 | 381.8 | |||
Interest expense | 91.9 | 223.1 | |||
Income tax benefit (expense) | (268.8) | (35) | |||
Net loss | (2,310.3) | (121.4) | |||
Goodwill impairment | 2,339 | 0 | |||
Net cash provided from (used in) operating activities | 218.2 | 239.3 | |||
Interest paid, net of interest capitalized | 103.3 | 184.9 | |||
Previously Reported [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Prepaid expenses and other | 197.2 | 159.7 | |||
Net property, plant and equipment | 4,817.3 | 4,920.9 | |||
Operating lease right-of-use assets | 0 | 0 | |||
Other assets | 90.2 | 94 | |||
Current portion of long-term lease obligations | 4,570.3 | ||||
Current portion of operating lease obligations | 0 | ||||
Other current liabilities | 120.4 | 344.2 | |||
Deferred income taxes | 104.3 | ||||
Operating lease obligations | 0 | ||||
Other liabilities | 21.4 | 542.4 | |||
Liabilities subject to compromise | 7,961 | ||||
Accumulated deficit | (5,536.8) | (3,205.3) | |||
Selling, general and administrative | 198.3 | ||||
Depreciation and amortization | 354.9 | ||||
Interest expense | 205.6 | ||||
Income tax benefit (expense) | 275.9 | ||||
Net loss | (2,331.5) | ||||
Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Present value of lease liabilities | (700) | ||||
Prepaid expenses and other | (1.6) | (0.7) | |||
Net property, plant and equipment | (1,189.5) | (1,272.9) | |||
Operating lease right-of-use assets | 4,187.4 | 4,239.1 | |||
Other assets | (5.9) | (5.9) | |||
Current portion of long-term lease obligations | (4,570.3) | ||||
Current portion of operating lease obligations | 3,947.8 | ||||
Other current liabilities | 0 | (15.4) | |||
Deferred income taxes | 300.8 | ||||
Operating lease obligations | 317.2 | ||||
Other liabilities | 0 | (58.8) | |||
Liabilities subject to compromise | (69.1) | ||||
Accumulated deficit | 3,059.5 | 3,038.3 | |||
Selling, general and administrative | 0 | ||||
Depreciation and amortization | (83.4) | ||||
Interest expense | (113.7) | ||||
Income tax benefit (expense) | (7.1) | ||||
Net loss | 21.2 | ||||
Net cash provided from (used in) operating activities | 50.5 | ||||
Interest paid, net of interest capitalized | 113.7 | ||||
Services [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of products sold | 861.1 | $ 736.9 | |||
Services [Member] | Previously Reported [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of products sold | 692.3 | ||||
Services [Member] | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of products sold | $ 168.8 | ||||
Prepaid expenses and other | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use assets | 6.6 | ||||
Other liabilities | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use assets | 6.7 | ||||
Certain Fiber Assets In Minnesota [Member] | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other liabilities | 41.5 | ||||
Network Assets | Certain Fiber Assets In Minnesota [Member] | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other liabilities | 7.5 | ||||
Operating leases [Member] | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use assets | $ 3,900 | 382.5 | |||
Current portion of operating lease obligations | $ 408.4 |
Preparation of Interim Financ_5
Preparation of Interim Financial Statements: (Details) | 3 Months Ended |
Mar. 31, 2019Mistates | |
Number of States in which Entity Operates | states | 18 |
Number of Fiber Route Miles | Mi | 150,000 |
Windstream Holdings, Inc. | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 100.00% |
Chapter 11 Filing, Going Conc_3
Chapter 11 Filing, Going Concern and Other Related Matters (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Reorganization Items [Line Items] | |||
Payments of Debt Issuance Costs | $ 14.7 | $ 2.8 | |
Liabilities Subject to Compromise [Abstract] | |||
Accounts payable | 446.1 | ||
Advance payments and customer deposits | 14.2 | ||
Accrued taxes | 19.9 | ||
Other current liabilities | 148 | ||
Deferred taxes | 135.8 | ||
Operating lease liabilities | 4,218.3 | ||
Pension and other employee benefit plan obligations | 317.5 | ||
Other liabilities | 214.7 | ||
Accounts payable, accrued and other liabilities | 5,514.5 | ||
Debt subject to compromise | 2,348.4 | $ 0 | |
Accrued interest on debt subject to compromise | 29 | ||
Long-term debt and accrued interest | 2,377.4 | ||
Total liabilities subject to compromise | 7,891.9 | 0 | |
Reorganization Items [Abstract] | |||
Write-off of deferred long-term debt fees | 24.1 | ||
Write-off of original issue discount on debt subject to compromise | 21.6 | ||
Debtor-in-possession financing costs | 40.2 | ||
Professional fees and other bankruptcy related costs | 19 | ||
Reorganization items, net | 104.9 | $ 0 | |
Term Loan Commitments [Member] | Superpriority Term Loan Facility [Member] | |||
Reorganization Items [Line Items] | |||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 300 | $ 0 |
Chapter 11 Filing, Going Conc_4
Chapter 11 Filing, Going Concern and Other Related Matters Potential Claims (Details) - Subsequent Event [Member] $ in Millions | 3 Months Ended |
May 10, 2019USD ($)claims | |
Subsequent Event [Line Items] | |
Bankruptcy Claims, Number Claims Filed | claims | 1,505 |
Bankruptcy Claims, Amount of Claims Filed | $ | $ 178 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets: (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019USD ($)reporting_unit | Mar. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | ||||
Accumulated deficit | $ (2,477.3) | $ (167) | $ (3,205.3) | |
Number of Reporting Units | reporting_unit | 3 | |||
Goodwill [Roll Forward] | ||||
Goodwill | $ 4,614.5 | |||
Accumulated impairment loss | (1,840.8) | |||
Balance at December 31, 2018, net | 2,773.7 | |||
Goodwill impairment | (2,339) | $ 0 | ||
Other | 0 | |||
Goodwill | 4,614.5 | |||
Accumulated impairment loss | (4,179.8) | |||
Balance at March 31, 2019, net | 434.7 | |||
Consumer & Small Business | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 2,321.2 | |||
Accumulated impairment loss | (1,417.8) | |||
Balance at December 31, 2018, net | 903.4 | |||
Goodwill impairment | (903.4) | |||
Other | 0 | |||
Goodwill | 2,321.2 | |||
Accumulated impairment loss | (2,321.2) | |||
Balance at March 31, 2019, net | 0 | |||
Enterprise | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 996.2 | |||
Accumulated impairment loss | 0 | |||
Balance at December 31, 2018, net | 996.2 | |||
Goodwill impairment | (996.2) | |||
Other | 0 | |||
Goodwill | 996.2 | |||
Accumulated impairment loss | (996.2) | |||
Balance at March 31, 2019, net | 0 | |||
Wholesale | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 1,297.1 | |||
Accumulated impairment loss | (423) | |||
Balance at December 31, 2018, net | 874.1 | |||
Goodwill impairment | (439.4) | |||
Other | 0 | |||
Goodwill | 1,297.1 | |||
Accumulated impairment loss | (862.4) | |||
Balance at March 31, 2019, net | 434.7 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Goodwill [Line Items] | ||||
Accumulated deficit | $ 3,059.5 | $ 3,038.3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets: Intangible assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | $ 3,116.7 | $ 3,110.5 | |
Accumulated Amortization | (1,942.2) | (1,897.4) | |
Net carrying value | 1,174.5 | 1,213.1 | |
Amortization of Intangible Assets | 44.7 | $ 58.5 | |
Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | 1,285.1 | 1,285.1 | |
Accumulated Amortization | (425.3) | (414.6) | |
Net carrying value | 859.8 | 870.5 | |
Customer Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | 1,758.4 | 1,758.5 | |
Accumulated Amortization | (1,482.3) | (1,450.4) | |
Net carrying value | 276.1 | 308.1 | |
Cable Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | 17.3 | 17.3 | |
Accumulated Amortization | (10.6) | (10.3) | |
Net carrying value | 6.7 | 7 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | 21 | 21 | |
Accumulated Amortization | (4.4) | (3.9) | |
Net carrying value | 16.6 | 17.1 | |
Developed technology and software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | 18 | 18 | |
Accumulated Amortization | (8.9) | (7.7) | |
Net carrying value | 9.1 | 10.3 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Cost | 16.9 | 10.6 | |
Accumulated Amortization | (10.7) | (10.5) | |
Net carrying value | $ 6.2 | $ 0.1 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets: Intangible assets - Amortization Methodology (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Franchise Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Customer Lists [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | sum of years digits |
Cable Franchise Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Developed technology and software [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Patents [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Minimum | Customer Lists [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years 6 months |
Minimum | Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Minimum | Developed technology and software [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum | Customer Lists [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Maximum | Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Maximum | Developed technology and software [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets: Intangible Assets - Future Amortization (Details) $ in Millions | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 124 |
2020 | 133.9 |
2021 | 101.2 |
2022 | 71.4 |
2023 | $ 59 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Jan. 03, 2019 | Feb. 17, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Feb. 27, 2017 |
Debt Instrument [Line Items] | |||||
Net discount on long-term debt, net (c) | $ (5,500,000) | $ (28,600,000) | |||
Unamortized debt issuance costs (c) | (30,600,000) | (57,600,000) | |||
Carrying value | 5,863,200,000 | 5,728,100,000 | |||
Less current maturities | (3,514,800,000) | (5,728,100,000) | |||
Liabilities Subject to Compromise, Debt | (2,348,400,000) | 0 | |||
Total long-term debt | 0 | 0 | |||
Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility | 1,180,500,000 | 1,180,500,000 | |||
Senior secured credit facilities, new borrowings | $ 0.0025 | ||||
Senior secured credit facility, Tranche B7 - variable rates, due February 17, 2024 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility | 568,400,000 | 568,400,000 | |||
Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility, Revolving line of credit | 802,000,000 | 1,017,000,000 | |||
Senior First Lien Notes – 8.625%, due October 31, 2025 (b) (e) | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 600,000,000 | 600,000,000 | |||
Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 414,900,000 | 414,900,000 | |||
Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 802,000,000 | 802,000,000 | |||
2020 Notes - 7.750%, due October 15, 2020 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 78,100,000 | 78,100,000 | |||
2021 Notes - 7.750% due October 1, 2021 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 70,100,000 | 70,100,000 | |||
2022 Notes - 7.500% due June 1, 2022 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 36,200,000 | 36,200,000 | |||
2023 Notes - 7.500% due April 1, 2023 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 34,400,000 | 34,400,000 | |||
2023 Notes - 6.375%, due August 1, 2023 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 806,900,000 | 806,900,000 | |||
2024 Notes - 8.750% due December 15, 2024 | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Notes Payable | 105,800,000 | 105,800,000 | |||
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 | 100,000,000 | 100,000,000 | |||
Superpriority Term Loan Facility [Member] | Term Loan Commitments [Member] | |||||
Debt Instrument [Line Items] | |||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 300,000,000 | $ 0 | |||
Consumer and Small Business CLEC [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Long-term Lines of Credit | $ 312,000,000 | ||||
Maximum | Base Rate [Member] | Secured Debt | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% |
Long-Term Debt Interest Rate (D
Long-Term Debt Interest Rate (Details) - USD ($) | Feb. 26, 2019 | Mar. 31, 2019 |
Senior secured credit facilities [Domain] | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% | |
Debt instrument, Default interest rate | $ 0.0200 | |
DIP Facilities [Member] | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |
Secured Debt | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | |
Secured Debt | Senior secured credit facility, Tranche B7 - variable rates, due February 17, 2024 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 9.75% | |
Unsecured Debt | Senior First Lien Notes – 8.625%, due October 31, 2025 (b) (e) | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.625% | |
Unsecured Debt | Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | |
Unsecured Debt | Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |
Unsecured Debt | 2020 Notes - 7.750%, due October 15, 2020 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |
Unsecured Debt | 2021 Notes - 7.750% due October 1, 2021 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |
Unsecured Debt | 2022 Notes - 7.500% due June 1, 2022 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |
Unsecured Debt | 2023 Notes - 7.500% due April 1, 2023 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |
Unsecured Debt | 2023 Notes - 6.375%, due August 1, 2023 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |
Unsecured Debt | 2024 Notes - 8.750% due December 15, 2024 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | |
Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | |
Windstream Holdings of the Midwest, Inc. | Secured Debt | Windstream Holdings of the Midwest, Inc. - 6.75%, due April 1, 2028 | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |
London Interbank Offered Rate (LIBOR) [Member] | DIP Facilities [Member] | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |
Federal Funds Effective Rate [Member] | DIP Facilities [Member] | ||
Debt Disclosure [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Feb. 26, 2019 | Feb. 17, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 25, 2019 | Dec. 31, 2018 | Feb. 27, 2017 |
Debt Instrument [Line Items] | |||||||
Interest expense - long-term debt | $ 93,800,000 | $ 101,900,000 | |||||
Debtor-in-Possession Financing, Amount Arranged | $ 400,000,000 | ||||||
Unamortized debt issuance costs | $ (30,600,000) | $ (57,600,000) | |||||
DIP Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||||
Senior secured credit facility, Tranche B7 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||
Secured Debt | Senior secured credit facility, Tranche B7 | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured credit facility, new borrowings, issuance percent | 99.50% | ||||||
Secured Debt | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured credit facilities, new borrowings | $ 0.0025 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | ||||||
Secured Debt | Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | |||||||
Debt Instrument [Line Items] | |||||||
Notes Payable | $ 414,900,000 | 414,900,000 | |||||
Secured Debt | Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | |||||||
Debt Instrument [Line Items] | |||||||
Notes Payable | $ 802,000,000 | 802,000,000 | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Lines of Credit | 150,000,000 | ||||||
Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | ||||||
Letters of Credit under Revolving Line of Credit, Maximum | $ 50,000,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | ||||||
Proceeds from Lines of Credit | 155,000,000 | 313,000,000 | |||||
Repayments of Lines of Credit | 370,000,000 | $ 60,000,000 | |||||
Letters of Credit Outstanding, Amount | $ 22,700,000 | ||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.89% | 3.62% | |||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ||||||
Minimum | Secured Debt | Senior secured credit facility, Tranche B7 | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly Amortization Payment on Term Loans, Stated As A Percent of Initial Principal Amount | 0.25% | ||||||
Minimum | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.38% | 3.40% | |||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||
Maximum | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | 5.75% | |||||
Senior Secured Superpriority Debtor-In-Possession Credit Facility [Member] | DIP Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||
Superpriority Term Loan Facility [Member] | Term Loan Commitments [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 300,000,000 | $ 0 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | ||||||
Debtor-in-Possession Financing, Amount Arranged | 300,000,000 | ||||||
Superpriority Revolving Credit Facility [Member] | Revolving Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | ||||||
Superpriority Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 0 | ||||||
Debtor-in-Possession Financing, Amount Arranged | $ 100,000,000 | ||||||
Base Rate [Member] | Secured Debt | Maximum | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||
Base Rate [Member] | Revolving Credit Facility [Member] | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | DIP Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | Senior secured credit facility, Tranche B7 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Secured Debt | Senior secured credit facility, Tranche B7 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Long-term Debt [Member] | Senior secured credit facility, Tranche B5 - variable rates, due August 8, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 0.0075 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Expense [Abstract] | ||
Interest expense - long-term debt | $ 93.8 | $ 101.9 |
Interest expense - long-term lease obligation - Telecommunications network assets | 0 | 118.5 |
Interest expense - long-term lease obligation - Real estate contributed to pension plan | 1.6 | 1.5 |
Impact of interest rate swaps | (2.9) | 0.6 |
Interest on capital leases and other | 0.9 | 1.5 |
Less capitalized interest expense | (1.5) | (0.9) |
Total interest expense | $ 91.9 | $ 223.1 |
Leases Lessee - Narrative (Deta
Leases Lessee - Narrative (Details) $ in Millions | Apr. 24, 2015 | Mar. 31, 2019USD ($)renewal_option |
Lessee, Lease, Description [Line Items] | ||
Finance lease, long-term lease obligation | $ 39.8 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 1 year | |
Operating lease, renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 30 years | |
Operating lease, renewal term | 10 years | |
Network Assets | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 11 years 1 month | |
Operating lease, renewal term | 5 years | |
Operating lease, initial term | 15 years | |
Operating lease, number of renewal options | renewal_option | 4 | |
Operating lease, annual rental payments | $ 659 | |
Operating lease, annual base rent escalator | 0.50% | |
Operating lease, discount rate | 13.94% | |
Real Property | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, number of renewal options | renewal_option | 3 | |
Finance lease, renewal term | 5 years | |
Finance lease, long-term lease obligation | $ 72.8 | |
Real Property | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, annual base rent escalator | 2.00% | |
Real Property | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, annual base rent escalator | 3.00% | |
Property Lease, Ten Year Lease Term | Real Property | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, initial lease term | 10 years | |
Property Lease, Twenty Year Lease Term | Real Property | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, initial lease term | 20 years | |
Finance lease, annual rent payments | $ 6 |
Leases Lessee - Components of L
Leases Lessee - Components of Lease Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease costs | |
Interest on lease liabilities | $ 0.4 |
Net lease expense | 206.3 |
Cost of services, Selling, general and administrative | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | 201.5 |
Depreciation and amortization | |
Finance lease costs | |
Amortization of right-of-use assets | $ 4.4 |
Leases Lessee - Schedule of Sup
Leases Lessee - Schedule of Supplemental Balance Sheet Related to Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Feb. 25, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating Leases | ||||
Operating lease right-of-use assets | $ 4,187.4 | $ 4,239.1 | $ 0 | |
Current portion of operating lease obligations | 3,916.1 | 3,947.8 | ||
Operating lease obligations | 302.2 | $ 317.2 | ||
Operating lease liabilities | 4,218.3 | $ 0 | ||
Less amounts reclassified to liabilities subject to compromise | (4,218.3) | |||
Finance Leases | ||||
Property, plant and equipment, gross | 231.7 | |||
Accumulated depreciation | (144.8) | |||
Net property, plant and equipment | 86.9 | |||
Other current liabilities | 45.8 | |||
Other liabilities | 39.8 | |||
Finance lease liabilities | 85.6 | $ 0 | ||
Less amounts reclassified to liabilities subject to compromise | $ 85.6 | |||
Weighted Average Remaining Lease Term | ||||
Operating lease | 10 years 8 months | |||
Finance lease | 2 years 4 months | |||
Leaseback of real estate contributed to pension plan | 11 years 4 months | |||
Weighted Average Discount Rate | ||||
Operating lease | 13.95% | |||
Finance lease | 4.50% | |||
Leaseback of real estate contributed to pension plan | 8.60% |
Leases Lessee - Supplemental Ca
Leases Lessee - Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflows from operating leases | $ 196.9 |
Operating cash outflows from finance leases | 1.3 |
Financing cash outflows from finance leases | 13.7 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 4 |
Finance leases | $ 3.9 |
Leases Lessee - Future Minimum
Leases Lessee - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Feb. 25, 2019 |
Operating Leases | ||
2019 (excluding the three months ended March 31, 2019) | $ 605 | |
2020 | 772.6 | |
2021 | 758.1 | |
2022 | 738.8 | |
2023 | 723.3 | |
Thereafter | 4,496.6 | |
Total future minimum lease payments | 8,094.4 | |
Less: Amounts representing interest | 3,876.1 | |
Present value of lease liabilities | 4,218.3 | $ 0 |
Leaseback of Real Estate Contributed to Pension Plan | ||
2019 (excluding the three months ended March 31, 2019) | 4.9 | |
2020 | 6.7 | |
2021 | 6.9 | |
2022 | 7.1 | |
2023 | 7.3 | |
Thereafter | 55 | |
Total future minimum lease payments | 87.9 | |
Less: Amounts representing interest | 66.6 | |
Present value of lease liabilities | 72.8 | |
Finance Leases | ||
2019 (excluding the three months ended March 31, 2019) | 41.1 | |
2020 | 26.3 | |
2021 | 9.5 | |
2022 | 4.8 | |
2023 | 4.7 | |
Thereafter | 6.5 | |
Total future minimum lease payments | 92.9 | |
Less: Amounts representing interest | 7.3 | |
Present value of lease liabilities | 85.6 | $ 0 |
Sale and Leaseback Transaction, Gain (Loss), Net | $ (51.5) |
Leases Lessee - Future Minimu_2
Leases Lessee - Future Minimum Payments Under ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 159 |
2020 | 108.8 |
2021 | 87.3 |
2022 | 66.3 |
2023 | 51.2 |
Thereafter | 182.6 |
Total future minimum lease payments | 655.2 |
Capital Leases | |
2019 | 54.5 |
2020 | 25.8 |
2021 | 8.6 |
2022 | 4.3 |
2023 | 4.2 |
Thereafter | 5.1 |
Total future minimum lease payments | 102.5 |
Less: Amounts representing interest | 8.4 |
Present value of lease liabilities | 94.1 |
Leaseback of Telecommunications Network Assets | |
Leaseback Maturity | |
2019 | 658.9 |
2020 | 662.2 |
2021 | 665.6 |
2022 | 668.9 |
2023 | 672.2 |
Thereafter | 4,323.1 |
Total future minimum lease payments | 7,650.9 |
Leaseback of Real Estate Contributed to Pension Plan | |
Leaseback Maturity | |
2019 | 6.5 |
2020 | 6.7 |
2021 | 6.9 |
2022 | 7.1 |
2023 | 7.3 |
Thereafter | 55 |
Total future minimum lease payments | $ 89.5 |
Leases Lessor - Narrative (Deta
Leases Lessor - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessor, Lease, Description [Line Items] | |
Operating lease income | $ 65.5 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lessor, term of contract | 1 year |
Lessor, renewal term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lessor, term of contract | 20 years |
Lessor, renewal term | 10 years |
Leases Lessor - Future Lease Ma
Leases Lessor - Future Lease Maturities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 46.6 |
2020 | 49.4 |
2021 | 32.6 |
2022 | 11.4 |
2023 | 5.7 |
Thereafter | 0.9 |
Total future lease receipts | $ 146.6 |
Derivatives_ Additional informa
Derivatives: Additional information (Details) | 3 Months Ended | |||||
Mar. 31, 2019USD ($)derivativederivatives | Mar. 31, 2018USD ($) | Feb. 15, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 27, 2017USD ($) | Sep. 21, 2016USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | derivatives | 2 | |||||
Derivative, Cash Received on Hedge | $ 9,600,000 | |||||
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 6,100,000 | |||||
Changes in fair value of effective portion, net of tax (a) | $ 3,200,000 | $ (14,800,000) | ||||
Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | 3 | |||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 675,000,000 | $ 500,000,000 | $ 200,000,000 | |||
Derivative, Average Fixed Interest Rate | 2.984% | |||||
Derivative, Fixed Interest Rate | 1.8812% | 1.1275% | ||||
Derivative, Weighted Average Fixed Interest Rate | 2.31% | 2.31% | ||||
Variable rate received | 2.48% | 2.46% | ||||
Designated as Hedging Instrument [Member] | Interest rate swaps | Other Comprehensive Income (Loss) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Changes in fair value of effective portion, net of tax (a) | $ (2,400,000) | 11,000,000 | ||||
De-Designated Hedging Instrument [Member] | Interest rate swaps | Other Comprehensive Income (Loss) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amortization of net unrealized losses on de-designated interest rate swaps, net of tax (a) | (900,000) | $ 700,000 | ||||
Other current assets | Designated as Hedging Instrument [Member] | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | $ 15,300,000 | ||||
Other current liabilities | Designated as Hedging Instrument [Member] | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 6,800,000 | ||||
Liabilities Subject to Compromise [Member] | De-Designated Hedging Instrument [Member] | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Liabilities Subject to Compromise, Derivative Liability | 6,100,000 | 0 | ||||
Accumulated Other Comprehensive Income (Loss) | Designated as Hedging Instrument [Member] | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 39,700,000 | ||||
Accumulated Other Comprehensive Income (Loss) | De-Designated Hedging Instrument [Member] | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 32,900,000 | $ (2,400,000) |
Derivatives_ Offsetting assets
Derivatives: Offsetting assets (Details) $ in Millions | Dec. 31, 2018USD ($) |
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | |
Gross Amount of Assets Presented in the Consolidated Balance Sheets | $ 15.3 |
Financial Instruments, Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets | (3.2) |
Cash Collateral Received, Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets | 0 |
Net Amount | $ 12.1 |
Derivatives_ Offsetting liabili
Derivatives: Offsetting liabilities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | |
Gross Amount of Liabilities Presented in the Consolidated Balance Sheets | $ 6.8 |
Financial Instruments, Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities | (3.2) |
Cash Collateral Received, Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities | 0 |
Net Amount | $ 3.6 |
Fair Value Measurements_ (Detai
Fair Value Measurements: (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 0 | $ 310 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Other liabilities | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Interest rate swap assets - Level 2 | 0 | 15.3 |
Interest rate swap liabilities - Level 2 | 0 | 6.8 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Current Portion of Long-Term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Debt, including current portion - Level 2: | 3,459.2 | 4,405.8 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Liabilities Subject to Compromise [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Debt, including current portion - Level 2: | $ 1,106.7 | $ 0 |
Fair Value Measurements_ Fair V
Fair Value Measurements: Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Option, Events Triggering Election, Reasons | No | |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $ 5,893.8 | $ 5,785.7 |
Other liabilities | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease in fair value of interest rate swaps to reflect non-performance risk | $ 2.9 |
Revenues_ Contract with Custome
Revenues: Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Contract with Customer, Asset, Net | ||
Contract assets (a) | $ 13 | $ 12.6 |
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | (181.4) | (184.8) |
Revenues recognized included in the opening contract liability balance | 156.8 | 194.9 |
Prepaid expenses and other | ||
Contract with Customer, Asset, Net | ||
Contract assets (a) | 8 | 8.3 |
Other assets | ||
Contract with Customer, Asset, Net | ||
Contract assets (a) | 5 | 4.3 |
Customer Advances and Deposits, Current [Member] | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 157.9 | 172.1 |
Other liabilities | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 10.4 | $ 12.7 |
Liabilities Subject to Compromise [Member] | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | $ 13.1 |
Revenues_ Revenue Performance O
Revenues: Revenue Performance Obligations (Details) $ in Billions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 2.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage Recognized | 35.30% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage Recognized | 34.90% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage Recognized | 19.30% |
Revenues_ Revenue by Category (
Revenues: Revenue by Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Service revenues from contracts with customers | $ 1,123.2 | $ 1,262.1 |
Total revenue from contracts with customers | 1,141.6 | 1,281 |
Other service revenues (h) | 179 | 173.3 |
Total revenues and sales | 1,320.6 | 1,454.3 |
High-speed Internet bundles | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 239.9 | 268 |
Product sales | 239.9 | 268 |
Voice and long-distance | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 28.6 | 31.4 |
Product sales | 28.6 | 31.4 |
Video and miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 10.3 | 11.4 |
Product sales | 10.3 | 11.4 |
Dial-Up, E-mail And Miscellaneous [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 22.8 | |
Product sales | 22.8 | |
Core Service Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 311.3 | 351.7 |
Product sales | 311.3 | 351.7 |
Strategic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 45.4 | 36.5 |
Product sales | 45.4 | 36.5 |
Legacy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 130.5 | 153.3 |
Product sales | 130.5 | 153.3 |
Small business services | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 69.9 | 78.1 |
Product sales | 69.9 | 78.1 |
Core wholesale (d) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 129.6 | 142 |
Product sales | 129.6 | 142 |
Resale (e) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 17.7 | 18.3 |
Product sales | 17.7 | 18.3 |
Wireless TDM (f) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 2.1 | 3.2 |
Product sales | 2.1 | 3.2 |
Switched access | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 13.8 | 17.5 |
Product sales | 13.8 | 17.5 |
Other (g) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 124.1 | 127.9 |
Product sales | 124.1 | 127.9 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 18.4 | 18.9 |
Product sales | 18.4 | 18.9 |
Consumer & Small Business | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues from contracts with customers | 355 | 372.6 |
Total revenue from contracts with customers | 363 | 378.1 |
Other service revenues (h) | 98.7 | 98.4 |
Total revenues and sales | 461.7 | 476.5 |
Consumer & Small Business | High-speed Internet bundles | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 239.9 | 243.6 |
Product sales | 239.9 | 243.6 |
Consumer & Small Business | Voice and long-distance | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 28.6 | 31.4 |
Product sales | 28.6 | 31.4 |
Consumer & Small Business | Video and miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 10.3 | 11.4 |
Product sales | 10.3 | 11.4 |
Consumer & Small Business | Dial-Up, E-mail And Miscellaneous [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | |
Product sales | 0 | |
Consumer & Small Business | Core Service Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Strategic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Legacy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Small business services | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 69.9 | 78.1 |
Product sales | 69.9 | 78.1 |
Consumer & Small Business | Core wholesale (d) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Resale (e) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Wireless TDM (f) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Switched access | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 6.3 | 8.1 |
Product sales | 6.3 | 8.1 |
Consumer & Small Business | Other (g) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer & Small Business | Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 8 | 5.5 |
Product sales | 8 | 5.5 |
Enterprise | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues from contracts with customers | 611.3 | 669.4 |
Total revenue from contracts with customers | 621.4 | 682.6 |
Other service revenues (h) | 68.3 | 63.5 |
Total revenues and sales | 689.7 | 746.1 |
Enterprise | High-speed Internet bundles | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Voice and long-distance | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Video and miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Dial-Up, E-mail And Miscellaneous [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | |
Product sales | 0 | |
Enterprise | Core Service Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 311.3 | 351.7 |
Product sales | 311.3 | 351.7 |
Enterprise | Strategic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 45.4 | 36.5 |
Product sales | 45.4 | 36.5 |
Enterprise | Legacy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 130.5 | 153.3 |
Product sales | 130.5 | 153.3 |
Enterprise | Small business services | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Core wholesale (d) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Resale (e) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Wireless TDM (f) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Switched access | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Enterprise | Other (g) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 124.1 | 127.9 |
Product sales | 124.1 | 127.9 |
Enterprise | Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 10.1 | 13.2 |
Product sales | 10.1 | 13.2 |
Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues from contracts with customers | 156.9 | 172.9 |
Total revenue from contracts with customers | 157.2 | 173 |
Other service revenues (h) | 12 | 10.8 |
Total revenues and sales | 169.2 | 183.8 |
Wholesale | High-speed Internet bundles | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Voice and long-distance | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Video and miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Dial-Up, E-mail And Miscellaneous [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | |
Product sales | 0 | |
Wholesale | Core Service Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Strategic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Legacy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Small business services | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Core wholesale (d) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 129.6 | 142 |
Product sales | 129.6 | 142 |
Wholesale | Resale (e) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 17.7 | 18.3 |
Product sales | 17.7 | 18.3 |
Wholesale | Wireless TDM (f) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 2.1 | 3.2 |
Product sales | 2.1 | 3.2 |
Wholesale | Switched access | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 7.5 | 9.4 |
Product sales | 7.5 | 9.4 |
Wholesale | Other (g) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Wholesale | Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0.3 | 0.1 |
Product sales | 0.3 | 0.1 |
Consumer CLEC | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues from contracts with customers | 0 | 47.2 |
Total revenue from contracts with customers | 0 | 47.3 |
Other service revenues (h) | 0 | 0.6 |
Total revenues and sales | 0 | 47.9 |
Consumer CLEC | High-speed Internet bundles | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 24.4 |
Product sales | 0 | 24.4 |
Consumer CLEC | Voice and long-distance | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Video and miscellaneous | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Dial-Up, E-mail And Miscellaneous [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 22.8 | |
Product sales | 22.8 | |
Consumer CLEC | Core Service Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Strategic [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Legacy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Small business services | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Core wholesale (d) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Resale (e) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Wireless TDM (f) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Switched access | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Other (g) | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Consumer CLEC | Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 0 | 0.1 |
Product sales | $ 0 | $ 0.1 |
Revenues_ (Details)
Revenues: (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | $ 46.2 | $ 45.5 | |
Deferred contract costs, amortization | 9.9 | $ 10.8 | |
Unbilled Contracts Receivable | 41.5 | 40 | |
Prepaid expenses and other | |||
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | 31.2 | 30.4 | |
Other assets | |||
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | $ 15 | $ 15.1 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Estimated Customer Life | 18 months | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Estimated Customer Life | 36 months |
Employee Benefit Plans and Po_3
Employee Benefit Plans and Postretirement Benefits: Components of Pension Expense and Postretirement Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefits earned during the period (a) | $ 0.6 | $ 0.9 |
Interest cost on benefit obligation (b) | 10.9 | 10.2 |
Amortization of prior service credit (b) | (0.3) | (1.2) |
Expected return on plan assets (b) | (12.4) | (14.3) |
Net periodic benefit income | (1.2) | (4.4) |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost on benefit obligation (b) | 0.2 | 0.2 |
Amortization of net actuarial loss (a) | 0 | 0.1 |
Amortization of prior service credit (b) | (0.1) | (0.1) |
Net periodic benefit income | $ 0.1 | $ 0.2 |
Employee Benefit Plans and Po_4
Employee Benefit Plans and Postretirement Benefits: (Details) - USD ($) shares in Millions, $ in Millions | Feb. 27, 2018 | Jan. 12, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Pension Plan, Years of Service | 30 years | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | |||
Company's 401(k) Employer Match Expense | $ 7 | $ 6.3 | ||
Defined Contribution Plan, Contributions by Employer, Cash | 26.4 | |||
Annual matching contribution to defined contribution plan, Common Stock | 3.4 | |||
Defined Contribution Plan, Contributions by Employer, Common Stock, Value | $ 26.9 | |||
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement Benefit Contributions | 0.3 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 15.2 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 5.2 | 3 | ||
Defined Benefit Plan, Contributions by Employer, Number of Shares of Common Stocktribution defined benefit plan | 0.8 | |||
Defined Benefit Plan, Contributions by Employer, Non Cash, Value | $ 5.8 | |||
Other Pension, Postretirement and Supplemental Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 0.8 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Operating Target Consideration Period | 3 years | |||
Unrecognized compensation expense | $ 6.2 | |||
Unrecognized compensation expense, weighted average vesting period (in years) | 1 year 11 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 8 | $ 20.6 | ||
Share-based compensation expense | $ 2.4 | 4.3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,000,000 | 1,000,000 | ||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based restricted stock units, as a percentage of the award | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based restricted stock units, as a percentage of the award | 150.00% | |||
Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance under the Windstream 2006 Equity Incentive Plan | 6,800,000 | |||
Available shares for grant | 1,500,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 2.4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 698,500 | |||
Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2.4 | 4.3 | ||
Additional Paid-In Capital | Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1.6 | $ 3.6 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans: Restricted Stock and Restricted Stock Unit Activity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock and Restricted Stock Units [Member] | |
(Thousands) Underlying Number of Shares [Roll Forward] | |
Beginning balance, Underlying Number of Shares | shares | 522,100 |
Granted | shares | 0 |
Vested | shares | (118,800) |
Forfeited | shares | (10,000) |
Ending balance, Underlying Number of Shares | shares | 393,300 |
Weighted Average Fair Value | |
Beginning Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 23.34 |
Granted | $ / shares | 0 |
Vested | $ / shares | 32.05 |
Forfeited | $ / shares | 34.18 |
Ending Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 20.43 |
Restricted Stock Units (RSUs) | |
(Thousands) Underlying Number of Shares [Roll Forward] | |
Beginning balance, Underlying Number of Shares | shares | 325,400 |
Granted | shares | 698,500 |
Vested | shares | (147,000) |
Forfeited | shares | (17,400) |
Ending balance, Underlying Number of Shares | shares | 859,500 |
Weighted Average Fair Value | |
Beginning Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 28.35 |
Granted | $ / shares | 3.40 |
Vested | $ / shares | 28.25 |
Forfeited | $ / shares | 27.76 |
Ending Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 8.10 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans: Vesting Periods and Grant Date Fair Value of Shares Issued (Details) - Restricted Stock and Restricted Stock Units [Member] - shares | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 393,300 | 522,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans: Stock Options (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 2.4 | ||
Unrecognized compensation expense, weighted average vesting period (in years) | 1 year 11 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1 | 1 | |
Share-based compensation expense | $ 2.4 | $ 4.3 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, weighted average vesting period (in years) | 1 year 11 months | ||
Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2.4 | $ 4.3 | |
Additional Paid-In Capital | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0.4 |
Merger, Integration and Restruc
Merger, Integration and Restructuring Charges: (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)position | Mar. 31, 2018USD ($)position | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Number of Positions Eliminated | position | 275 | 400 |
Merger, Integration and Other Costs and Restructuring Cost, Cost Incurred to Date, Net of Tax | $ 11.3 | $ 15.9 |
Restructuring Integration and Merger Cost [Abstract] | ||
Information technology conversion costs | 0.2 | 0.4 |
Costs related to merger with EarthLink (a) | 3.4 | 4.4 |
Costs related to merger with Broadview (b) | 0 | 1.9 |
Other | 1 | 0.6 |
Merger and Integration Costs | 4.6 | 7.3 |
Restructuring charges | 10.5 | 13.7 |
Total merger, integration and other costs and restructuring charges | 15.1 | 21 |
Restructuring Integration and Merger Cost [Roll Forward] | ||
Balance, beginning of period | 31.9 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | (23.9) | |
Expenses incurred during the period | 15.1 | |
Cash outlays during the period | (16.5) | |
Balance, end of period | 6.6 | |
Workforce Reduction [Domain] | ||
Restructuring Integration and Merger Cost [Abstract] | ||
Restructuring charges | 10.5 | 13.7 |
Merger, integration and other charges [Member] | ||
Restructuring Integration and Merger Cost [Roll Forward] | ||
Balance, beginning of period | 4 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | (8.6) | |
Expenses incurred during the period | 4.6 | |
Cash outlays during the period | 0 | |
Balance, end of period | 0 | |
Employee Severance [Member] | ||
Restructuring Integration and Merger Cost [Roll Forward] | ||
Balance, beginning of period | 12.6 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | 0 | |
Expenses incurred during the period | 10.5 | |
Cash outlays during the period | (16.5) | |
Balance, end of period | 6.6 | |
Other Restructuring [Member] | ||
Restructuring Integration and Merger Cost [Roll Forward] | ||
Balance, beginning of period | 15.3 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | (15.3) | |
Expenses incurred during the period | 0 | |
Cash outlays during the period | 0 | |
Balance, end of period | 0 | |
EarthLink [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 2.9 | 3 |
EarthLink [Member] | Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0.5 | 1.4 |
Broadview [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1.3 | |
Broadview [Member] | Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Liabilities, Property, Plant and Equipment | $ 516.1 | $ 825.5 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 247.3 | 477.7 |
Deferred Tax Assets, Operating Loss Carryforwards | (591.7) | (576.8) |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | (78.6) | (79.6) |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 5.8 | 7.2 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Other | (2) | (2.3) |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | (14.4) | (15.1) |
Deferred Tax Assets Long - Term Lease Obligations | (1,091.9) | (1,170.9) |
Deferred Tax Liabilities, Operating Lease Right-of-Use Assets | 1,063.1 | 0 |
Deferred Tax Assets, Deferred Debt Costs Net | (34.9) | (19.2) |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | (6) | (6.8) |
Deferred Tax Assets, Interest Expense | (13.5) | 0 |
Deferred Tax Assets, Other | (7) | (20.4) |
Deferred tax liability (asset), gross | (7.7) | (580.7) |
Deferred Tax Assets, Valuation Allowance | 143.5 | 685 |
Liabilities Subject to Compromise, Deferred Tax Liability | (135.8) | 0 |
Deferred Tax Assets, Gross | (1,904.3) | (1,954) |
Deferred Tax Liabilities, Gross | 2,040.1 | 2,058.3 |
Deferred Tax Liabilities, Net | $ 0 | $ 104.3 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 143.5 | $ 685 |
Increase (Decrease) in Deferred Income Taxes | 842.3 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 541.5 | |
Liabilities Subject to Compromise, Deferred Tax Liability | (135.8) | 0 |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 1,992 | 1,920.2 |
Tax Credit Carryforward, Amount | 21.8 | 21.8 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 2,527.7 | 2,456.6 |
Tax Credit Carryforward, Amount | $ 17.7 | $ 17.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income [Line Items] | ||
Pension and postretirement plans | $ 7.4 | $ 7.7 |
Unrealized net gains (losses) on interest rate swaps: | ||
Accumulated other comprehensive loss | 32 | 35.6 |
Interest rate swaps | ||
Unrealized net gains (losses) on interest rate swaps: | ||
Designated portion | 0 | 29.7 |
De-designated portion | $ 24.6 | $ (1.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive (Loss) Income (Roll-Forward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated other comprehensive loss [Roll Forward] | ||
Beginning balance | $ 35.6 | |
Other comprehensive income before reclassifications | (2.4) | |
Amounts reclassified from other accumulated comprehensive loss (a) | (1.2) | $ (0.2) |
Ending balance | 32 | |
Net Gains on Interest Rate Swaps | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Beginning balance | 27.9 | |
Other comprehensive income before reclassifications | (2.4) | |
Amounts reclassified from other accumulated comprehensive loss (a) | (0.9) | |
Ending balance | 24.6 | |
Pension and Postretirement Plans | ||
Accumulated other comprehensive loss [Roll Forward] | ||
Beginning balance | 7.7 | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from other accumulated comprehensive loss (a) | (0.3) | $ (0.9) |
Ending balance | $ 7.4 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive (Loss) Income (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ 91.9 | $ 223.1 |
Income tax benefit | (268.8) | (35) |
Net loss | (2,310.3) | (121.4) |
Net loss | (1.2) | (0.2) |
Interest rate swaps: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net loss | (0.9) | |
Amortization of net actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0.1 |
Amortization of prior service credits | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.4) | (1.3) |
Pension and postretirement plans: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.4) | (1.2) |
Income tax benefit | 0.1 | 0.3 |
Net loss | (0.3) | (0.9) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Loss before income taxes | (1.2) | 0.9 |
Income tax benefit | 0.3 | (0.2) |
Net loss | (0.9) | 0.7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps | Interest rate swaps: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (1.2) | $ 0.9 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss attributable to common shares | $ (2,310.3) | $ (121.4) |
Denominator: | ||
Weighted average basic and diluted shares outstanding | 42.6 | 37.4 |
Net loss | $ (54.26) | $ (3.25) |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1 | 0.9 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.3 | 1.1 |
Earnings (Loss) Per Share_ Addi
Earnings (Loss) Per Share: Additional details (Details) | May 25, 2018shares |
Equity [Abstract] | |
Stockholders' Equity Note, Reverse Stock Split, One-for-Five, Post Split | 1 |
Stockholders' Equity Note, Reverse Stock Split, One-for-Five, Pre Split | 5 |
Segment Information_ (Details)
Segment Information: (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | segment | 4 | |
Total revenues and sales | $ 1,320.6 | $ 1,454.3 |
Costs and Expenses | 3,701.9 | 1,385.3 |
Operating income | (2,381.3) | 69 |
Consumer & Small Business | ||
Segment Reporting Information [Line Items] | ||
Total revenues and sales | 461.7 | 476.5 |
Costs and Expenses | 189.7 | 194.6 |
Operating income | 272 | 281.9 |
Enterprise | ||
Segment Reporting Information [Line Items] | ||
Total revenues and sales | 689.7 | 746.1 |
Costs and Expenses | 536.4 | 600.3 |
Operating income | 153.3 | 145.8 |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Total revenues and sales | 169.2 | 183.8 |
Costs and Expenses | 55.4 | 55.5 |
Operating income | 113.8 | 128.3 |
Consumer CLEC | ||
Segment Reporting Information [Line Items] | ||
Total revenues and sales | 0 | 47.9 |
Costs and Expenses | 0 | 20.6 |
Operating income | 0 | 27.3 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues and sales | 1,320.6 | 1,454.3 |
Costs and Expenses | 781.5 | 871 |
Operating income | $ 539.1 | $ 583.3 |
Segment Information_ Reconcilia
Segment Information: Reconciliation of Segment Income to Consolidated Net (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating (loss) income | $ (2,381.3) | $ 69 |
Depreciation and amortization | 271.5 | 381.8 |
Goodwill impairment | (2,339) | 0 |
Merger, integration and other costs | (4.6) | (7.3) |
Restructuring Charges | (10.5) | (13.7) |
Other unassigned operating expenses | (3,701.9) | (1,385.3) |
Other expense, net | (1) | (2.3) |
Reorganization items, net | (104.9) | 0 |
Interest expense (contractual interest for the three months ended March 31, 2019 of $140.7) | (91.9) | (223.1) |
Income tax benefit | 268.8 | 35 |
Net loss | (2,310.3) | (121.4) |
Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating (loss) income | 539.1 | 583.3 |
Other unassigned operating expenses | (781.5) | (871) |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Other unassigned operating expenses | $ (294.8) | $ (111.5) |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information: Additional Information (Details) - Senior Notes [Member] | Mar. 31, 2019 |
Senior Notes Due October 2020 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.75% |
Senior Notes Due October 2021 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.75% |
Senior Notes Due June 2022 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% |
Senior Notes Due April 2023 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% |
Senior Notes Due August 2023 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.375% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information: Prior Period Reclassifications (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Guarantors | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 72.8 |
Guarantors | Accounts Receivable [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 77.6 |
Guarantors | Affiliates receivable, net [Domain] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 77.6 |
Non-Guarantors | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 72.8 |
Non-Guarantors | Accounts Receivable [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 77.6 |
Non-Guarantors | Affiliates receivable, net [Domain] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 77.6 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information: Condensed Consolidating Statement of Comprehensive Income (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues and sales: | ||
Total revenues and sales | $ 1,320.6 | $ 1,454.3 |
Costs and expenses: | ||
Selling, general and administrative | 198.3 | 228.8 |
Depreciation and amortization | 271.5 | 381.8 |
Goodwill impairment | 2,339 | 0 |
Merger, integration and other costs | 4.6 | 7.3 |
Restructuring charges | 10.5 | 13.7 |
Total costs and expenses | 3,701.9 | 1,385.3 |
Operating (loss) income | (2,381.3) | 69 |
Other income (expense), net | (1) | (2.3) |
Reorganization items, net | (104.9) | 0 |
Interest expense | (91.9) | (223.1) |
(Loss) income before income taxes | (2,579.1) | (156.4) |
Income tax benefit (expense) | (268.8) | (35) |
Net (loss) income | (2,310.3) | (121.4) |
Comprehensive loss | (2,313.9) | (110.6) |
Eliminations | ||
Revenues and sales: | ||
Total revenues and sales | (17.6) | (28.1) |
Costs and expenses: | ||
Selling, general and administrative | (0.6) | (0.4) |
Depreciation and amortization | 0 | 0 |
Goodwill impairment | 0 | |
Merger, integration and other costs | 0 | 0 |
Restructuring charges | 0 | 0 |
Total costs and expenses | (17.6) | (28.1) |
Operating (loss) income | 0 | 0 |
(Losses) earnings from consolidated subsidiaries | 1,887.6 | 31.2 |
Other income (expense), net | 0 | 0 |
Intercompany interest income (expense) | 0 | 0 |
Reorganization items, net | 0 | |
Interest expense | 0 | 0 |
(Loss) income before income taxes | 1,887.6 | 31.2 |
Income tax benefit (expense) | 0 | 0 |
Net (loss) income | 1,887.6 | 31.2 |
Comprehensive loss | 1,887.6 | 31.2 |
Windstream Services, LLC | ||
Revenues and sales: | ||
Total revenues and sales | 0 | 0 |
Costs and expenses: | ||
Selling, general and administrative | 0 | 0 |
Depreciation and amortization | 0.6 | 1.6 |
Goodwill impairment | 299.1 | |
Merger, integration and other costs | 0 | 0 |
Restructuring charges | 0 | 0 |
Total costs and expenses | 299.7 | 1.6 |
Operating (loss) income | (299.7) | (1.6) |
(Losses) earnings from consolidated subsidiaries | (1,879.9) | (53.9) |
Other income (expense), net | (2.6) | 0.5 |
Intercompany interest income (expense) | 12.5 | 16.8 |
Reorganization items, net | (104.9) | |
Interest expense | (89.2) | (100.8) |
(Loss) income before income taxes | (2,363.8) | (139) |
Income tax benefit (expense) | (53.8) | (18) |
Net (loss) income | (2,310) | (121) |
Comprehensive loss | (2,313.6) | (110.2) |
Guarantors | ||
Revenues and sales: | ||
Total revenues and sales | 249.2 | 312.4 |
Costs and expenses: | ||
Selling, general and administrative | 28.7 | 38.8 |
Depreciation and amortization | 67.9 | 123.6 |
Goodwill impairment | 1,533 | |
Merger, integration and other costs | 0 | 0 |
Restructuring charges | 1.4 | 1.5 |
Total costs and expenses | 1,785.8 | 306.8 |
Operating (loss) income | (1,536.6) | 5.6 |
(Losses) earnings from consolidated subsidiaries | (16.8) | 3.7 |
Other income (expense), net | 0.2 | (0.3) |
Intercompany interest income (expense) | (14.7) | (10.5) |
Reorganization items, net | 0 | |
Interest expense | (1.2) | (36.1) |
(Loss) income before income taxes | (1,569.1) | (37.6) |
Income tax benefit (expense) | (115.9) | (9.8) |
Net (loss) income | (1,453.2) | (27.8) |
Comprehensive loss | (1,453.2) | (27.8) |
Non-Guarantors | ||
Revenues and sales: | ||
Total revenues and sales | 1,089 | 1,170 |
Costs and expenses: | ||
Selling, general and administrative | 169.8 | 189.9 |
Depreciation and amortization | 203 | 256.6 |
Goodwill impairment | 506.9 | |
Merger, integration and other costs | 4.6 | 7.3 |
Restructuring charges | 9.1 | 12.2 |
Total costs and expenses | 1,633.6 | 1,104.5 |
Operating (loss) income | (544.6) | 65.5 |
(Losses) earnings from consolidated subsidiaries | 9.1 | 19 |
Other income (expense), net | 1.4 | (2.5) |
Intercompany interest income (expense) | 2.2 | (6.3) |
Reorganization items, net | 0 | |
Interest expense | (1.5) | (86.2) |
(Loss) income before income taxes | (533.4) | (10.5) |
Income tax benefit (expense) | (99) | (7.1) |
Net (loss) income | (434.4) | (3.4) |
Comprehensive loss | (434.4) | (3.4) |
Windstream Services, LLC | ||
Revenues and sales: | ||
Total revenues and sales | 1,320.6 | 1,454.3 |
Costs and expenses: | ||
Selling, general and administrative | 197.9 | 228.3 |
Depreciation and amortization | 271.5 | 381.8 |
Goodwill impairment | 2,339 | 0 |
Merger, integration and other costs | 4.6 | 7.3 |
Restructuring charges | 10.5 | 13.7 |
Total costs and expenses | 3,701.5 | 1,384.8 |
Operating (loss) income | (2,380.9) | 69.5 |
(Losses) earnings from consolidated subsidiaries | 0 | 0 |
Other income (expense), net | (1) | (2.3) |
Intercompany interest income (expense) | 0 | 0 |
Reorganization items, net | (104.9) | 0 |
Interest expense | (91.9) | (223.1) |
(Loss) income before income taxes | (2,578.7) | (155.9) |
Income tax benefit (expense) | (268.7) | (34.9) |
Net (loss) income | (2,310) | (121) |
Comprehensive loss | (2,313.6) | (110.2) |
Services [Member] | ||
Revenues and sales: | ||
Service revenues | 1,302.2 | 1,435.4 |
Product sales | 1,302.2 | 1,435.4 |
Costs and expenses: | ||
Cost of products sold | 861.1 | 736.9 |
Services [Member] | Eliminations | ||
Revenues and sales: | ||
Service revenues | (17.6) | (28.1) |
Product sales | (17.6) | (28.1) |
Costs and expenses: | ||
Cost of products sold | (17) | (27.7) |
Services [Member] | Windstream Services, LLC | ||
Revenues and sales: | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Costs and expenses: | ||
Cost of products sold | 0 | 0 |
Services [Member] | Guarantors | ||
Revenues and sales: | ||
Service revenues | 232.9 | 294.7 |
Product sales | 232.9 | 294.7 |
Costs and expenses: | ||
Cost of products sold | 140.8 | 127.7 |
Services [Member] | Non-Guarantors | ||
Revenues and sales: | ||
Service revenues | 1,086.9 | 1,168.8 |
Product sales | 1,086.9 | 1,168.8 |
Costs and expenses: | ||
Cost of products sold | 737.3 | 636.9 |
Services [Member] | Windstream Services, LLC | ||
Revenues and sales: | ||
Service revenues | 1,302.2 | 1,435.4 |
Product sales | 1,302.2 | 1,435.4 |
Total revenues and sales | 1,454.3 | |
Costs and expenses: | ||
Cost of products sold | 861.1 | 736.9 |
Product [Member] | ||
Revenues and sales: | ||
Service revenues | 18.4 | 18.9 |
Product sales | 18.4 | 18.9 |
Costs and expenses: | ||
Cost of products sold | 16.9 | 16.8 |
Product [Member] | Eliminations | ||
Revenues and sales: | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Costs and expenses: | ||
Cost of products sold | 0 | 0 |
Product [Member] | Windstream Services, LLC | ||
Revenues and sales: | ||
Service revenues | 0 | 0 |
Product sales | 0 | 0 |
Costs and expenses: | ||
Cost of products sold | 0 | 0 |
Product [Member] | Guarantors | ||
Revenues and sales: | ||
Service revenues | 16.3 | 17.7 |
Product sales | 16.3 | 17.7 |
Costs and expenses: | ||
Cost of products sold | 14 | 15.2 |
Product [Member] | Non-Guarantors | ||
Revenues and sales: | ||
Service revenues | 2.1 | 1.2 |
Product sales | 2.1 | 1.2 |
Costs and expenses: | ||
Cost of products sold | 2.9 | 1.6 |
Product [Member] | Windstream Services, LLC | ||
Revenues and sales: | ||
Service revenues | 18.4 | 18.9 |
Product sales | 18.4 | 18.9 |
Costs and expenses: | ||
Cost of products sold | $ 16.9 | $ 16.8 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information: Condensed Consolidating Balance Sheet (Unaudited) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | |||||
Cash and cash equivalents | $ 432 | $ 355.7 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 439.7 | 361 | $ 60.5 | $ 43.4 | |
Accounts receivable, net | 633.4 | 653.1 | |||
Inventories | 79.8 | 82.4 | |||
Prepaid expenses and other | 195.6 | 159.7 | |||
Total current assets | 1,348.5 | 1,256.2 | |||
Goodwill | 434.7 | 2,773.7 | |||
Other intangibles, net | 1,174.5 | 1,213.1 | |||
Net property, plant and equipment | 3,627.8 | $ 3,648 | 4,920.9 | ||
Operating lease right-of-use assets | 4,187.4 | 4,239.1 | 0 | ||
Other assets | 84.3 | 94 | |||
Total Assets | 10,857.2 | 10,257.9 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 3,514.8 | 5,728.1 | |||
Current portion of long-term lease obligations | 0 | 0 | 4,570.3 | ||
Accounts payable | 271.9 | 503.6 | |||
Advance payments and customer deposits | 163.9 | 180.6 | |||
Accrued taxes | 64.9 | 87.4 | |||
Accrued interest | 0.9 | 43.5 | |||
Other current liabilities | 120.4 | 328.8 | 344.2 | ||
Total current liabilities | 4,136.8 | 11,457.7 | |||
Long-term lease obligations | 0 | 72.8 | |||
Other liabilities | 21.4 | 483.6 | 542.4 | ||
Liabilities subject to compromise | 7,891.9 | 0 | |||
Total liabilities | 12,050.1 | 12,177.2 | |||
Commitments and Contingencies (See Note 17) | |||||
Member Deficit: | |||||
Common stock | 0 | 0 | |||
Additional paid-in capital | 1,252.4 | 1,250.4 | |||
Accumulated other comprehensive (loss) income | 32 | 35.6 | |||
(Accumulated deficit) retained earnings | (2,477.3) | $ (167) | (3,205.3) | ||
Total equity (deficit) | (1,192.9) | (1,919.3) | (1,337.2) | (1,298.9) | |
Total Liabilities and Equity (Deficit) | 10,857.2 | 10,257.9 | |||
Eliminations | |||||
Current Assets: | |||||
Cash and cash equivalents | 0 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | |
Restricted Cash | 0 | 0 | |||
Accounts receivable, net | (3.3) | (3.3) | |||
Notes receivable - affiliate | (3.1) | (5) | |||
Affiliates receivable, net | (2,215) | (2,380) | |||
Inventories | 0 | 0 | |||
Prepaid expenses and other | 0 | (48.3) | |||
Total current assets | (2,221.4) | (2,436.6) | |||
Investments in consolidated subsidiaries | (7,898.1) | (5,838.3) | |||
Notes receivable - affiliate | (302.7) | (303.3) | |||
Goodwill | 0 | 0 | |||
Other intangibles, net | 0 | 0 | |||
Net property, plant and equipment | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Other assets | 0 | 0 | |||
Total Assets | (10,422.2) | (8,578.2) | |||
Current Liabilities: | |||||
Current portion of long-term debt | 0 | 0 | |||
Current portion of long-term lease obligations | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Affiliates payable, net | (2,215) | (2,380) | |||
Notes payable - affiliate | (3.1) | (5) | |||
Advance payments and customer deposits | (3.3) | (3.3) | |||
Accrued taxes | 0 | (48.3) | |||
Accrued interest | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (2,221.4) | (2,436.6) | |||
Long-term lease obligations | 0 | 0 | |||
Notes payable - affiliate | (302.7) | (303.3) | |||
Deferred income taxes | 0 | 0 | |||
Other liabilities | (4.2) | 0 | |||
Liabilities subject to compromise | 0 | ||||
Total liabilities | (2,528.3) | (2,739.9) | |||
Commitments and Contingencies (See Note 17) | |||||
Member Deficit: | |||||
Common stock | (121.3) | (121.3) | |||
Additional paid-in capital | (5,361.6) | (5,361.6) | |||
Accumulated other comprehensive (loss) income | (7.3) | (7.7) | |||
(Accumulated deficit) retained earnings | (2,403.7) | (347.7) | |||
Total equity (deficit) | (7,893.9) | (5,838.3) | |||
Total Liabilities and Equity (Deficit) | (10,422.2) | (8,578.2) | |||
Windstream Services, LLC | |||||
Current Assets: | |||||
Cash and cash equivalents | 395.8 | 328.2 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 403.5 | 333.5 | 22 | 0 | |
Restricted Cash | 7.7 | 5.3 | |||
Accounts receivable, net | 0 | 0 | |||
Notes receivable - affiliate | 0 | 0 | |||
Affiliates receivable, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Prepaid expenses and other | 25 | 80.3 | |||
Total current assets | 428.5 | 413.8 | |||
Investments in consolidated subsidiaries | 6,467.6 | 4,737.8 | |||
Notes receivable - affiliate | 0 | 0 | |||
Goodwill | 358.1 | 657.2 | |||
Other intangibles, net | 449.9 | 449.9 | |||
Net property, plant and equipment | 0.4 | 0.5 | |||
Operating lease right-of-use assets | 0 | ||||
Other assets | 20.8 | 22.8 | |||
Total Assets | 7,725.3 | 6,282 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 3,415.2 | 5,628.5 | |||
Current portion of long-term lease obligations | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Affiliates payable, net | 2,215 | 2,380 | |||
Notes payable - affiliate | 0 | 0 | |||
Advance payments and customer deposits | 0 | 0 | |||
Accrued taxes | 0.5 | 0 | |||
Accrued interest | 0.6 | 41.4 | |||
Other current liabilities | 13.8 | 37.8 | |||
Total current liabilities | 5,645.1 | 8,087.7 | |||
Long-term lease obligations | 0 | 0 | |||
Notes payable - affiliate | 0 | 0 | |||
Deferred income taxes | 0 | 104.3 | |||
Other liabilities | 0 | 9.3 | |||
Liabilities subject to compromise | 3,273.1 | ||||
Total liabilities | 8,918.2 | 8,201.3 | |||
Commitments and Contingencies (See Note 17) | |||||
Member Deficit: | |||||
Common stock | 0 | 0 | |||
Additional paid-in capital | 1,245.9 | 1,244.2 | |||
Accumulated other comprehensive (loss) income | 32 | 35.6 | |||
(Accumulated deficit) retained earnings | (2,470.8) | (3,199.1) | |||
Total equity (deficit) | (1,192.9) | (1,919.3) | |||
Total Liabilities and Equity (Deficit) | 7,725.3 | 6,282 | |||
Guarantors | |||||
Current Assets: | |||||
Cash and cash equivalents | 2.4 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 2.4 | 0 | 0.4 | 2.5 | |
Restricted Cash | 0 | 0 | |||
Accounts receivable, net | 127.4 | 115.3 | |||
Notes receivable - affiliate | 3.1 | 5 | |||
Affiliates receivable, net | 465.9 | 537.9 | |||
Inventories | 65.3 | 66.6 | |||
Prepaid expenses and other | 34 | 33.9 | |||
Total current assets | 698.1 | 758.7 | |||
Investments in consolidated subsidiaries | 863.9 | 526.9 | |||
Notes receivable - affiliate | 302.7 | 303.3 | |||
Goodwill | 76.6 | 1,609.6 | |||
Other intangibles, net | 318.6 | 335.3 | |||
Net property, plant and equipment | 837.8 | 1,125.1 | |||
Operating lease right-of-use assets | 1,182.5 | ||||
Other assets | 16.6 | 17.8 | |||
Total Assets | 4,296.8 | 4,676.7 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 99.6 | 99.6 | |||
Current portion of long-term lease obligations | 0 | 1,334.5 | |||
Accounts payable | 71.2 | 226.4 | |||
Affiliates payable, net | 0 | 0 | |||
Notes payable - affiliate | 0 | 0 | |||
Advance payments and customer deposits | 26.4 | 31.3 | |||
Accrued taxes | 17 | 87.7 | |||
Accrued interest | 0 | 1.7 | |||
Other current liabilities | 13.7 | 77.7 | |||
Total current liabilities | 227.9 | 1,858.9 | |||
Long-term lease obligations | 0 | 15.6 | |||
Notes payable - affiliate | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Other liabilities | 4.6 | 55.5 | |||
Liabilities subject to compromise | 1,333.2 | ||||
Total liabilities | 1,565.7 | 1,930 | |||
Commitments and Contingencies (See Note 17) | |||||
Member Deficit: | |||||
Common stock | 39.4 | 39.4 | |||
Additional paid-in capital | 3,956.7 | 3,956.7 | |||
Accumulated other comprehensive (loss) income | 0 | 0 | |||
(Accumulated deficit) retained earnings | (1,265) | (1,249.4) | |||
Total equity (deficit) | 2,731.1 | 2,746.7 | |||
Total Liabilities and Equity (Deficit) | 4,296.8 | 4,676.7 | |||
Non-Guarantors | |||||
Current Assets: | |||||
Cash and cash equivalents | 33.8 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 33.8 | 27.5 | 38.1 | 40.9 | |
Restricted Cash | 0 | 0 | |||
Accounts receivable, net | 509.3 | 541.1 | |||
Notes receivable - affiliate | 0 | 0 | |||
Affiliates receivable, net | 1,749.1 | 1,842.1 | |||
Inventories | 14.5 | 15.8 | |||
Prepaid expenses and other | 136.6 | 93.8 | |||
Total current assets | 2,443.3 | 2,520.3 | |||
Investments in consolidated subsidiaries | 566.6 | 573.6 | |||
Notes receivable - affiliate | 0 | 0 | |||
Goodwill | 0 | 506.9 | |||
Other intangibles, net | 406 | 427.9 | |||
Net property, plant and equipment | 2,789.6 | 3,795.3 | |||
Operating lease right-of-use assets | 3,004.9 | ||||
Other assets | 46.9 | 53.4 | |||
Total Assets | 9,257.3 | 7,877.4 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 0 | 0 | |||
Current portion of long-term lease obligations | 0 | 3,235.8 | |||
Accounts payable | 200.7 | 277.2 | |||
Affiliates payable, net | 0 | 0 | |||
Notes payable - affiliate | 3.1 | 5 | |||
Advance payments and customer deposits | 140.8 | 152.6 | |||
Accrued taxes | 47.4 | 48 | |||
Accrued interest | 0.3 | 0.4 | |||
Other current liabilities | 92.9 | 228.7 | |||
Total current liabilities | 485.2 | 3,947.7 | |||
Long-term lease obligations | 0 | 57.2 | |||
Notes payable - affiliate | 302.7 | 303.3 | |||
Deferred income taxes | 0 | 0 | |||
Other liabilities | 21 | 477.6 | |||
Liabilities subject to compromise | 3,285.6 | ||||
Total liabilities | 4,094.5 | 4,785.8 | |||
Commitments and Contingencies (See Note 17) | |||||
Member Deficit: | |||||
Common stock | 81.9 | 81.9 | |||
Additional paid-in capital | 1,404.9 | 1,404.9 | |||
Accumulated other comprehensive (loss) income | 7.3 | 7.7 | |||
(Accumulated deficit) retained earnings | 3,668.7 | 1,597.1 | |||
Total equity (deficit) | 5,162.8 | 3,091.6 | |||
Total Liabilities and Equity (Deficit) | 9,257.3 | 7,877.4 | |||
Windstream Services, LLC | |||||
Current Assets: | |||||
Cash and cash equivalents | 432 | 355.7 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 439.7 | 361 | 60.5 | 43.4 | |
Restricted Cash | 7.7 | 5.3 | |||
Accounts receivable, net | 633.4 | 653.1 | |||
Notes receivable - affiliate | 0 | 0 | |||
Affiliates receivable, net | 0 | 0 | |||
Inventories | 79.8 | 82.4 | |||
Prepaid expenses and other | 195.6 | 159.7 | |||
Total current assets | 1,348.5 | 1,256.2 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Notes receivable - affiliate | 0 | 0 | |||
Goodwill | 434.7 | 2,773.7 | |||
Other intangibles, net | 1,174.5 | 1,213.1 | |||
Net property, plant and equipment | 3,627.8 | 4,920.9 | |||
Operating lease right-of-use assets | 4,187.4 | 0 | |||
Other assets | 84.3 | 94 | |||
Total Assets | 10,857.2 | 10,257.9 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 3,514.8 | 5,728.1 | |||
Current portion of long-term lease obligations | 0 | 4,570.3 | |||
Accounts payable | 271.9 | 503.6 | |||
Affiliates payable, net | 0 | 0 | |||
Notes payable - affiliate | 0 | 0 | |||
Advance payments and customer deposits | 163.9 | 180.6 | |||
Accrued taxes | 64.9 | 87.4 | |||
Accrued interest | 0.9 | 43.5 | |||
Other current liabilities | 120.4 | 344.2 | |||
Total current liabilities | 4,136.8 | 11,457.7 | |||
Long-term lease obligations | 0 | 72.8 | |||
Notes payable - affiliate | 0 | 0 | |||
Deferred income taxes | 0 | 104.3 | |||
Other liabilities | 21.4 | 542.4 | |||
Liabilities subject to compromise | 7,891.9 | 0 | |||
Total liabilities | 12,050.1 | 12,177.2 | |||
Commitments and Contingencies (See Note 17) | |||||
Member Deficit: | |||||
Common stock | 0 | 0 | |||
Additional paid-in capital | 1,245.9 | 1,244.2 | |||
Accumulated other comprehensive (loss) income | 32 | 35.6 | |||
(Accumulated deficit) retained earnings | (2,470.8) | (3,199.1) | |||
Total equity (deficit) | (1,192.9) | (1,919.3) | $ (1,337.2) | $ (1,298.9) | |
Total Liabilities and Equity (Deficit) | $ 10,857.2 | $ 10,257.9 |
Supplemental Guarantor Inform_7
Supplemental Guarantor Information: Condensed Consolidating Statement of Cash Flows (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | $ 218.2 | $ 239.3 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (192.8) | (217.6) |
Acquisition of MASS, net of cash acquired | 0 | (37.6) |
Other, net | (4.2) | 0.4 |
Net cash provided from (used in) investing activities | (197) | (254.8) |
Cash Flows from Financing Activities: | ||
Repayments of debt and swaps | (372.4) | (217.1) |
Proceeds from debt issuance | 455 | 313 |
Debt issuance costs | (14.7) | (2.8) |
Payments under long-term lease obligations | (0.1) | (44.9) |
Payments under finance and capital lease obligations | (9.8) | (13.1) |
Other, net | (0.5) | (2.5) |
Net cash (used in) provided from financing activities | 57.5 | 32.6 |
Increase in cash, cash equivalents and restricted cash | 78.7 | 17.1 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 439.7 | 60.5 |
Eliminations | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 0 | 0 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | 0 | 0 |
Acquisition of MASS, net of cash acquired | 0 | |
Other, net | 0 | 0 |
Net cash provided from (used in) investing activities | 0 | 0 |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 |
Repayments of debt and swaps | 0 | 0 |
Proceeds from debt issuance | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany transactions, net | 0 | 0 |
Payments under long-term lease obligations | 0 | 0 |
Payments under finance and capital lease obligations | 0 | 0 |
Other, net | 0 | 0 |
Net cash (used in) provided from financing activities | 0 | 0 |
Increase in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 0 | 0 |
End of period | 0 | 0 |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | (151.5) | (66.1) |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | 0 | (0.1) |
Acquisition of MASS, net of cash acquired | (37.6) | |
Other, net | (4.2) | 0 |
Net cash provided from (used in) investing activities | (4.2) | (37.7) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (0.6) | (0.5) |
Repayments of debt and swaps | (372.4) | (217.1) |
Proceeds from debt issuance | 455 | 313 |
Debt issuance costs | (14.7) | (2.8) |
Intercompany transactions, net | 158.8 | 35.3 |
Payments under long-term lease obligations | 0 | 0 |
Payments under finance and capital lease obligations | 0 | 0 |
Other, net | (0.4) | (2.1) |
Net cash (used in) provided from financing activities | 225.7 | 125.8 |
Increase in cash, cash equivalents and restricted cash | 70 | 22 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 333.5 | 0 |
End of period | 403.5 | 22 |
Guarantors | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | (202.4) | 106.5 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (27.6) | (51.7) |
Acquisition of MASS, net of cash acquired | 0 | |
Other, net | 0 | 0.5 |
Net cash provided from (used in) investing activities | (27.6) | (51.2) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 |
Repayments of debt and swaps | 0 | 0 |
Proceeds from debt issuance | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany transactions, net | 239.1 | (32.5) |
Payments under long-term lease obligations | 0 | (13.1) |
Payments under finance and capital lease obligations | (9.1) | (12.3) |
Other, net | 2.4 | 0.5 |
Net cash (used in) provided from financing activities | 232.4 | (57.4) |
Increase in cash, cash equivalents and restricted cash | 2.4 | (2.1) |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 0 | 2.5 |
End of period | 2.4 | 0.4 |
Non-Guarantors | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 572.7 | 199.4 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (165.2) | (165.8) |
Acquisition of MASS, net of cash acquired | 0 | |
Other, net | 0 | (0.1) |
Net cash provided from (used in) investing activities | (165.2) | (165.9) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | 0 | 0 |
Repayments of debt and swaps | 0 | 0 |
Proceeds from debt issuance | 0 | 0 |
Debt issuance costs | 0 | |
Intercompany transactions, net | (397.9) | (2.8) |
Payments under long-term lease obligations | (0.1) | (31.8) |
Payments under finance and capital lease obligations | (0.7) | (0.8) |
Other, net | (2.5) | (0.9) |
Net cash (used in) provided from financing activities | (401.2) | (36.3) |
Increase in cash, cash equivalents and restricted cash | 6.3 | (2.8) |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 27.5 | 40.9 |
End of period | 33.8 | 38.1 |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net cash provided from (used in) operating activities | 218.8 | 239.8 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (192.8) | (217.6) |
Acquisition of MASS, net of cash acquired | 0 | (37.6) |
Other, net | (4.2) | 0.4 |
Net cash provided from (used in) investing activities | (197) | (254.8) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (0.6) | (0.5) |
Repayments of debt and swaps | (372.4) | (217.1) |
Proceeds from debt issuance | 455 | 313 |
Debt issuance costs | (14.7) | (2.8) |
Intercompany transactions, net | 0 | 0 |
Payments under long-term lease obligations | (0.1) | (44.9) |
Payments under finance and capital lease obligations | (9.8) | (13.1) |
Other, net | (0.5) | (2.5) |
Net cash (used in) provided from financing activities | 56.9 | 32.1 |
Increase in cash, cash equivalents and restricted cash | 78.7 | 17.1 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | $ 439.7 | $ 60.5 |
Commitments and Contingencies_2
Commitments and Contingencies: Other Matters (Details) | Apr. 16, 2019USD ($) | Feb. 15, 2019USD ($) | Feb. 28, 2017lawsuit | Mar. 31, 2019 | Feb. 26, 2019USD ($) | Feb. 25, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Litigation Settlement, Amount Awarded to Other Party | $ 310,459,959.10 | |||||
Debtor-in-Possession Financing, Amount Arranged | $ 400,000,000 | |||||
Loss Contingency, Number Of Shareholders Filing Class Action Complaints | lawsuit | 2 | |||||
Loss Contingency, Number Of Derivative Actions Filed | lawsuit | 2 | |||||
Loss Contingency, New Claims Filed, Number | lawsuit | 4 | |||||
DIP Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||||
Senior Notes [Member] | Senior Notes Due August 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |||||
Senior Secured Superpriority Debtor-In-Possession Credit Facility [Member] | DIP Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debtor-in-Possession Financing, Amendments to Arrangement, Increase (Decrease) in Amount Arranged | $ 600,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Goodwill | $ 434.7 | $ 2,773.7 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Goodwill | $ 434.7 | ||
Minimum | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Goodwill | 250 | ||
Maximum | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Goodwill | $ 350 |