Document And Entity Information
Document And Entity Information | 6 Months Ended |
Dec. 31, 2015 | |
Document And Entity Information [Abstract] | |
Document Type | S4 |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Entity Registrant Name | ZAYO GROUP LLC |
Entity Central Index Key | 1,502,756 |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $ 308 | $ 297.4 |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 88 | 57.2 |
Due from related parties | 0.6 | 0.9 |
Prepaid expenses | 37.3 | 24.9 |
Deferred income taxes, net | 129.5 | 161 |
Other assets | 3.9 | 2.4 |
Total current assets | 567.3 | 543.8 |
Property and equipment, net | 3,299.2 | 2,822.4 |
Intangible assets, net | 948.3 | 710.3 |
Goodwill | 1,224.4 | 866.7 |
Other assets | 54.8 | 37.7 |
Total assets | 6,094 | 4,980.9 |
Current liabilities | ||
Current portion of long-term debt | 16.5 | 20.5 |
Accounts payable | 40 | 26.7 |
Accrued liabilities | 182.4 | 172.3 |
Accrued interest | 57.2 | 57.1 |
Capital lease obligations, current | 4.4 | 2.4 |
Due to related parties | 1.3 | |
Deferred revenue, current | 86.6 | 75.4 |
Total current liabilities | 388.4 | 354.4 |
Long-term debt, non-current | 3,652.2 | 3,130.3 |
Capital lease obligation, non-current | 28.3 | 25.7 |
Deferred revenue, non-current | 612.7 | 501.5 |
Stock-based compensation liability | 1.9 | 392.4 |
Deferred income taxes, net | 189.7 | 153 |
Other long-term liabilities | 28.6 | 22.3 |
Total liabilities | $ 4,899.9 | $ 4,579.6 |
Commitments and contingencies (Note 14) | ||
Member's Equity | ||
Member's interest | $ 1,699.1 | $ 728.9 |
Accumulated other comprehensive (loss)/income | (7.9) | 14.4 |
Accumulated deficit | (497.1) | (342) |
Total member's equity | 1,194.1 | 401.3 |
Total liabilities and member's equity | $ 6,094 | $ 4,980.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Statement Of Financial Position [Abstract] | |||
Trade receivables allowance | $ 4.8 | $ 3.4 | $ 3.7 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[7],[8] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [2],[3] | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | [1] | Jun. 30, 2014 | [2] | Jun. 30, 2013 |
Income Statement [Abstract] | |||||||||||||||||||||||||
Revenue | $ 369.6 | $ 361.9 | $ 323.9 | $ 298.1 | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | $ 1,129.7 | $ 1,011 | |||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | 112.2 | 107.5 | $ 100.9 | 97.8 | $ 107.3 | 92.8 | 84.9 | 85.9 | 79.7 | 225.2 | 205.1 | 413.5 | 343.3 | 314.1 | |||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 85 | 86.4 | [9] | 83 | [9] | 32.1 | [9] | 156.6 | [9] | 124.6 | 96.6 | 87 | 76.4 | 169.6 | 188.7 | 358.1 | [9] | 384.6 | 256.7 | ||||||
Depreciation and amortization | 113.7 | 113.2 | 100.1 | 96.9 | 96 | 91.3 | 84.2 | 81.7 | 81 | 230.8 | 192.9 | 406.2 | 338.2 | 324.5 | |||||||||||
Total operating costs and expenses | 310.9 | 307.1 | 284 | 226.8 | 359.9 | 308.7 | 265.7 | 254.6 | 237.1 | 625.6 | 586.7 | 1,177.8 | 1,066.1 | 895.3 | |||||||||||
Operating income | 58.7 | 54.8 | 56.7 | 97.1 | (39.3) | (10.6) | 17.5 | 24.1 | 32.6 | 110.8 | 57.8 | 169.3 | 63.6 | 115.7 | |||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (51.2) | (53) | (60.7) | (53.4) | (46.9) | (52.6) | [10] | (49.1) | [10] | (50.3) | [10] | (51.5) | [10] | (105) | (100.3) | (214) | (203.5) | [10] | (202.5) | ||||||
Loss on extinguishment of debt | $ (65) | (8.5) | [11] | (54.9) | [11] | (30.9) | [11] | (1.9) | [12] | (30.9) | (94.3) | [11] | (1.9) | [12] | (77.3) | ||||||||||
Foreign currency (loss)/gain on intercompany loans | (7.1) | 16.8 | (13.2) | (13.3) | (14.7) | 3.8 | 0.1 | 0.2 | 0.6 | (17.8) | (27.9) | (24.4) | 4.7 | 0.1 | |||||||||||
Other (expenses)/income, net | (0.1) | (0.3) | (0.1) | (0.1) | 0.3 | 0.1 | (0.2) | (0.2) | (0.4) | 0.3 | 0.3 | ||||||||||||||
Total other expenses, net | (58.4) | (45) | (128.8) | (97.7) | (61.6) | (48.9) | (49) | (51.7) | (50.8) | (123) | (159.3) | (333.1) | (200.4) | (279.4) | |||||||||||
Loss before income taxes | 0.3 | 9.8 | (72.1) | (0.6) | (100.9) | (59.5) | (31.5) | (27.6) | (18.2) | (12.2) | (101.5) | (163.8) | (136.8) | (163.7) | |||||||||||
(Benefit)/provision for income taxes | 11.1 | 4.6 | (18.4) | (4.3) | 9.4 | 10.5 | 12.1 | 8.4 | 9.3 | 13.8 | 5.1 | (8.7) | 40.3 | (21.8) | |||||||||||
Net Loss | $ (10.8) | $ 5.2 | $ (53.7) | $ 3.7 | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | $ (26) | $ (106.6) | $ (155.1) | $ (177.1) | $ (141.9) | |||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[9] | The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12? Stock-based Compensation. | ||||||||||||||||||||||||
[10] | The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[11] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[12] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Comprehensive Income Net Of Tax [Abstract] | ||||||||||||||||||||||||
Net loss | $ (10.8) | $ 5.2 | $ (53.7) | $ 3.7 | [1] | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | $ (26) | $ (106.6) | $ (155.1) | [1] | $ (177.1) | [4] | $ (141.9) | |||||||
Foreign currency translation adjustments | (7.7) | (8.7) | (11.7) | (21) | (22.3) | 19.2 | (4.8) | |||||||||||||||||
Comprehensive loss | $ (18.5) | $ (5) | $ (37.7) | $ (127.6) | $ (177.4) | $ (157.9) | $ (146.7) | |||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
CONSOLIDATED STATEMENTS OF MEMB
CONSOLIDATED STATEMENTS OF MEMBER'S INTEREST - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||||||
Balance | $ 401.3 | $ 558.8 | $ 1,194.1 | $ 401.3 | $ 401.3 | $ 558.8 | $ 365.9 | ||||||||
Capital (distributed)/contributed (non-cash) | 385 | 5.6 | 344 | ||||||||||||
Capital contributed (cash) | (17.5) | 385 | 5.6 | 344 | |||||||||||
Non-cash distributions to parent, net | (6) | (5.3) | |||||||||||||
Reclassification of common unit liability to additional paid in capital | 490.2 | ||||||||||||||
Distributions to parent | (1.2) | ||||||||||||||
Preferred stock-based compensation | 87.6 | 95 | 0.4 | 0.9 | |||||||||||
Foreign currency translation adjustment | (11.7) | (21) | (22.3) | 19.2 | (4.8) | ||||||||||
CII Preferred Units issued for Corelink Data Centers, LLC purchase | 1.6 | ||||||||||||||
Net loss | $ 5.2 | [1] | (110.3) | [1] | $ (70) | [2],[3] | (27.5) | [2] | (26) | (106.6) | (155.1) | [1] | (177.1) | [2] | (141.9) |
Balance | 1,194.1 | 401.3 | 1,194.1 | 401.3 | 558.8 | ||||||||||
Members Interest [Member] | |||||||||||||||
Balance | 728.9 | 728.5 | 1,699.1 | 728.9 | 728.9 | 728.5 | 388.9 | ||||||||
Capital contributed (cash) | (17.5) | 385 | 5.6 | 344 | |||||||||||
Non-cash distributions to parent, net | (6) | (5.3) | |||||||||||||
Reclassification of common unit liability to additional paid in capital | 490.2 | ||||||||||||||
Distributions to parent | (1.2) | ||||||||||||||
Preferred stock-based compensation | 95 | 0.4 | 0.9 | ||||||||||||
CII Preferred Units issued for Corelink Data Centers, LLC purchase | 1.6 | ||||||||||||||
Balance | 1,699.1 | 728.9 | 1,699.1 | 728.9 | 728.5 | ||||||||||
Accumulated Other Comprehensive Income/(Loss) [Member] | |||||||||||||||
Balance | 14.4 | (4.8) | (7.9) | 14.4 | 14.4 | (4.8) | |||||||||
Foreign currency translation adjustment | (11.7) | (22.3) | 19.2 | (4.8) | |||||||||||
Balance | (7.9) | 14.4 | (7.9) | 14.4 | (4.8) | ||||||||||
Accumulated Deficit [Member] | |||||||||||||||
Balance | $ (342) | $ (164.9) | (497.1) | $ (342) | (342) | (164.9) | (23) | ||||||||
Net loss | $ (26) | (155.1) | (177.1) | (141.9) | |||||||||||
Balance | $ (497.1) | $ (342) | $ (497.1) | $ (342) | $ (164.9) | ||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |||
Cash flows from operating activities | |||||
Net loss | $ (155.1) | [1] | $ (177.1) | [2] | $ (141.9) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||||
Depreciation and amortization | 406.2 | [1] | 338.2 | [2] | 324.5 |
Loss on extinguishment of debt | 94.3 | [1],[3] | 1.9 | [2],[4] | 77.3 |
Non-cash interest expense | 19.7 | 22.1 | 12.3 | ||
Stock-based compensation | 200.7 | 253.7 | 105.8 | ||
Amortization of deferred revenue | (72.1) | (55.6) | (43.1) | ||
Additions to deferred revenue | 149.1 | 163.8 | 61.7 | ||
Provision for bad debts | 1.9 | 1.9 | 2.1 | ||
Foreign currency loss/(gain) on intercompany loans | 24.4 | [1] | (4.7) | [2] | (0.1) |
Non-cash loss on investments | 0.9 | ||||
Lease termination charge | 10.2 | ||||
Deferred income taxes | (13.2) | 26.9 | (23.5) | ||
Changes in operating assets and liabilities, net of acquisitions | |||||
Trade receivables | (11.2) | 20.5 | (4.4) | ||
Prepaid expenses | (2.9) | (1.4) | 1.9 | ||
Payables to/(from) related parties, net | 1.6 | (6.1) | 10.5 | ||
Accounts payable and accrued liabilities | (22.9) | (6.6) | 15.3 | ||
Other assets, current and non-current | (7.5) | (1.7) | (11.1) | ||
Other liabilities | (6.9) | (13.8) | 7.2 | ||
Net cash provided by operating activities | 607 | 562 | 404.7 | ||
Cash flows from investing activities | |||||
Purchases of property and equipment | (530.4) | (360.8) | (323.3) | ||
Broadband stimulus grants received | 9.3 | ||||
Acquisition of net cash acquired | (855.7) | (393.3) | (2,480.7) | ||
Other | (0.3) | 2.7 | |||
Net cash used in investing activities | (1,386.1) | (754.1) | (2,804) | ||
Cash flows from financing activities | |||||
Proceeds from debt | 1,787.3 | 423.6 | 3,189.3 | ||
Proceeds from revolving credit facility | 195 | ||||
Proceeds from equity contributions | 385 | 5.6 | 344 | ||
Distribution to parent | (1.2) | ||||
Principal payments on long-term debt | (1,288.5) | (18) | (1,058.6) | ||
Payment of early redemption fees on debt extinguished | (62.6) | (72.1) | |||
Principal payments on capital lease obligations | (3.5) | (7.9) | (1.9) | ||
Payments on revolving credit facility | (195) | ||||
Payment of debt issuance costs | (24.2) | (4.9) | (83.1) | ||
Change in restricted cash, net | 22.6 | ||||
Net cash provided by financing activities | 793.5 | 397.2 | 2,340.2 | ||
Cash flows from continuing operations | 14.4 | 205.1 | (59.1) | ||
Effect of changes in foreign exchange rates on cash | (3.8) | 1 | (0.3) | ||
Net increase/(decrease) in cash and cash equivalents | 10.6 | 206.1 | (59.4) | ||
Cash and cash equivalents, beginning of year | 297.4 | 91.3 | 150.7 | ||
Net increase/(decrease) in cash and cash equivalents | 10.6 | 206.1 | (59.4) | ||
Cash and cash equivalents, end of period | 308 | 297.4 | 91.3 | ||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Cash paid for interest, net of capitalized interest | 191.2 | 175.3 | 143.5 | ||
Cash paid for income taxes | 14.5 | 5.7 | 2.8 | ||
Non-cash purchases of equipment through capital leasing | 6.8 | 10.5 | 11.4 | ||
Increase in accounts payable and accrued expenses for purchases of property and equipment | 8.4 | 10.9 | 15 | ||
Latisys Holdings, LLC [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (677.5) | ||||
Ideatek Systems, Inc., [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (52.7) | ||||
Neo Telecoms [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (73.9) | ||||
Colo Facilities Atlanta [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (51.9) | ||||
Geo Networks Limited [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (292.3) | ||||
CoreXchange [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | $ 0.3 | (17.5) | |||
Fiberlink, LLC [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (43.1) | ||||
Access Communications, Inc [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | $ (40.1) | ||||
Core NAP, LP [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (7.1) | ||||
Litecast/Balticore, LLC [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (22.2) | ||||
First Telecom Services, LLC [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (109.7) | ||||
USCarrier Telecom, LLC [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (16.1) | ||||
FiberGate [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | (118.3) | ||||
Abovenet, Inc [Member] | |||||
Cash flows from investing activities | |||||
Acquisition of net cash acquired | $ (2,210) | ||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||
[3] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||
[4] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | (1) ORGANIZATION AND DESCRIPTION OF BUSINESS Zayo Group, LLC, a Delaware limited liability company, was formed on May 4, 2007, and is the operating parent company of a number of subsidiaries engaged in bandwidth infrastructure provision and services. Zayo Group, LLC and its subsidiaries are collectively referred to as “Zayo Group” or the “Company.” Headquartered in Boulder, Colorado, the Company operates bandwidth infrastructure assets, including fiber networks and datacenters, in the United States and Europe to offer: • Physical infrastructure, including dark fiber, mobile infrastructure and colocation services. • Lit services, including wavelengths, Ethernet, IP, and SONET services. • Other services, provided by Zayo Professional Services and Zayo France. Zayo Group is wholly owned by Zayo Group Holdings, Inc. (“Holdings” or “ZGH”). On October 22, 2014, Holdings completed an initial public offering (“IPO”) of shares of its common stock, which were listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “ZAYO”. Prior to Holding’s IPO, ZGH was wholly owned by Communications Infrastructure Investments, LLC ("CII"). The Company’s fiscal year ends June 30 each year. The fiscal year ended June 30, 2014 is referred to as “Fiscal 2014” and the fiscal year ending June 30, 2015 as “Fiscal 2015.” |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | (2) BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES a. Basis of Presentation The accompanying consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) Our fiscal year ends June 30 each year, and we refer to the fiscal year ended June 30, 2015 as “Fiscal 2015,” June 30, 2014 as “Fiscal 2014,” and the fiscal year ended June 30, 2013 as “Fiscal 2013.” b. Foreign Currency Translation For operations outside the U.S. that have functional currencies other than the U.S. dollar, assets and liabilities are translated to U.S. dollars at period-end exchange rates, and revenue, expenses and cash flows are translated using monthly average exchange rates during the year. Gains or losses resulting from currency translation are recorded as a component of accumulated other comprehensive loss in member’s equity and in the consolidated statements of comprehensive loss. The Company considers the majority of its investments in its foreign subsidiaries to be permanently reinvested. c. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates are used when establishing allowances for doubtful accounts and accruals for billing disputes, determining useful lives for depreciation and amortization and accruals for exit activities associated with real estate leases, assessing the need for impairment charges (including those related to intangible assets and goodwill), determining the fair values of assets acquired and liabilities assumed in business combinations, accounting for income taxes and related valuation allowances against deferred tax assets and estimating the common unit and restricted stock unit grant fair values used to compute the stock-based compensation liability and expense. Management evaluates these estimates and judgments on an ongoing basis and makes estimates based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from these estimates under different assumptions or conditions d. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Restricted cash consists of cash balances held by various financial institutions as collateral for letters of credit and surety bonds. These balances are reclassified to cash and cash equivalents when the underlying obligation is satisfied, or in accordance with the governing agreement. Restricted cash balances expected to become unrestricted during the next twelve months are recorded as current assets. As of June 30, 2015 and 2014, the Company had a non-current restricted cash balance of $4.8 million and $5.1 million respectively. e. Trade Receivables Trade receivables are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its trade receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the customer’s financial condition, and the age of receivables and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. f. Property and Equipment The Company’s property and equipment includes assets in service and under construction or development. Property and equipment is recorded at historical cost or acquisition date fair value. Costs associated directly with network construction, service installations, and development of business support systems, including employee-related costs, are capitalized. Depreciation is calculated on a straight-line basis over the asset’s estimated useful life from the date placed into service or acquired. Management periodically evaluates the estimates of the useful life of property and equipment by reviewing historical usage, with consideration given to technological changes, trends in the industry, and other economic factors that could impact the network architecture and asset utilization. Equipment acquired under capital leases is recorded at the lower of the fair value of the asset or the net present value of the minimum lease payments at the inception of the lease. Depreciation of equipment held under capital leases is included in depreciation and amortization expense, and is calculated on a straight-line basis over the estimated useful lives of the assets, or the related lease term, whichever is shorter. Management reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of its property and equipment may not be recoverable. An impairment loss is recognized when the assets’ carrying value exceeds both the assets’ estimated undiscounted future cash flows and the assets’ estimated fair value. Measurement of the impairment loss is then based on the estimated fair value of the assets. Considerable judgment is required to project such future cash flows and, if required, to estimate the fair value of the property and equipment and the resulting amount of the impairment. No impairment charges were recorded for property and equipment during the years ended June 30, 2015, 2014 or 2013. The Company capitalizes interest for assets that require a period of time to get them ready for their intended use. The amount of interest capitalized is based on the Company’s weighted average effective interest rate for outstanding debt obligations during the respective accounting period. g. Goodwill and Acquired Intangibles Intangible assets arising from business combinations, such as acquired customer contracts and relationships, (collectively “customer relationships”), are initially recorded at fair value. The Company amortizes customer relationships primarily over an estimated life of 10 to 20 years, using the straight-line method as this method approximates the timing in which the Company expects to receive the benefit from the acquired customer relationship assets. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is reviewed for impairment at least annually in April, or more frequently if a triggering event occurs between impairment testing dates. The Company’s impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the reporting units against the planned results used in the last quantitative goodwill impairment test. Additionally, each reporting unit’s fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity- and reporting unit-specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value involves significant judgments and estimates. If it is determined under the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a two-step quantitative impairment test is performed. Under the first step, the estimated fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation in acquisition accounting. The residual amount after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit under the two-step assessment is determined using a combination of both income and market-based variation approaches. The inputs and assumptions to valuation methods used to estimate the fair value of reporting units involves significant judgments. The Company reviews its indefinite-lived intangible assets for impairment at least annually in April and involves comparing the estimated fair value of indefinite-lived intangible assets to their respective carrying values. To the extent the carrying value of indefinite-lived intangible assets exceeds the fair value, the Company will recognize an impairment loss for the difference. The Company performed a qualitative assessment to determine whether it was more likely than not that the fair value of these assets was in excess of the carrying value for the year ended June 30, 2015, 2014 or 2013 and has concluded there is no indication of impairment. Intangible assets with finite useful lives are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. No impairment charges were recorded for goodwill or intangibles during the years ended June 30, 2015, 2014 or 2013. h. Derivative Financial Instruments Derivative instruments are recorded in the balance sheet as either assets or liabilities, measured at fair value. The Company has historically entered into interest rate swaps to convert a portion of its floating-rate debt to fixed-rate debt and has not applied hedge accounting; therefore, the changes in the fair value of the interest rate swaps are recognized in earnings as adjustments to interest expense. The principal objectives of the derivative instruments are to minimize the cash flow interest rate risks associated with financing activities. The Company does not use financial instruments for trading purposes. The Company utilizes interest rate swap contracts in connection with debt instruments entered into during the July 2012 financing transactions. i. Revenue Recognition The Company recognizes revenues derived from leasing fiber optic telecommunications infrastructure and the provision of telecommunications and colocation services when the service has been provided and when there is persuasive evidence of an arrangement, the fee is fixed or determinable, customer acceptance has been obtained with relevant contract terms, and collection of the receivable is reasonably assured. Taxes collected from customers and remitted to a governmental authority are reported on a net basis and are excluded from revenue. Most revenue is billed in advance on a fixed-rate basis and the remainder is billed in arrears on a transactional basis determined by customer usage. The Company often bills customers for upfront charges, which are non-refundable. These charges relate to activation fees, installation charges or prepayments for future services and are influenced by various business factors including how the Company and customer agree to structure the payment terms. These upfront charges are deferred and recognized over the underlying contractual term. The Company also defers costs associated with customer activation and installation to the extent of upfront amounts received from customers, which are recognized as expense over the same period for which the associated revenue is recognized. The Company typically records revenues from leases of dark fiber, including indefeasible rights-of-use (“IRU”) agreements, over the term that the customer is given exclusive access to the assets. Dark fiber IRU agreements generally require the customer to make a down payment upon the execution of the agreement with monthly IRU fees paid over the contract term; however, in some cases, the Company receives up to the entire lease payment at the inception of the lease and recognizes the revenue ratably over the lease term. Revenue related to professional services to provide network management and technical support is recognized as services are provided. In determining the appropriate amount of revenue and related reserves to reflect in its consolidated financial statements, management evaluates payment history, credit ratings, customer financial performance, and historical or potential billing disputes and related estimates are based on these factors and assumptions. j. Operating Costs and Expenses The Company’s operating costs and expenses consist primarily of network expense (“Netex”), compensation and benefits, network operations expense (“Netops”), stock-based compensation, other expenses, and depreciation and amortization. Netex consists of third-party network service costs resulting from the leasing of certain network facilities, primarily leases of circuits and dark fiber, from carriers to augment the Company’s owned infrastructure, for which it is generally billed a fixed monthly fee. Netex also includes colocation facility costs for rent and license fees paid to the landlords of the buildings in which the Company’s colocation business operates, along with the utility costs to power those facilities. Compensation and benefits expenses include salaries, wages, incentive compensation and benefits. Employee-related costs that are directly associated with network construction, service installations and development of business support systems are capitalized and amortized to operating costs and expenses over the customer life. Compensation and benefits expenses related to the departments attributed to generating revenue are included in “Operating costs” while compensation and benefits expenses related to the sales, product, and corporate departments are included in “Selling, general and administrative expenses” in the consolidated statements of operations. Netops expense include all of the non-personnel related expenses of operating and maintaining the network infrastructure, including contracted maintenance fees, right-of-way costs, rent for cellular towers and other places where fiber is located, pole attachment fees, and relocation expenses. Netops expense is included in “Operating costs” in the consolidated statements of operations. Stock-based compensation expense consists of the fair value of equity based awards granted to employees and independent directors over their applicable vesting period. Stock-based compensation expense is included, based on the responsibilities of the awarded recipient, in either “Operating costs” or “Selling, general and administrative expenses” in the consolidated statements of operations. For additional information regarding our stock-based compensation expense, see Note 12 – Stock-Based Compensation Other expenses include expenses such as property tax, franchise fees, and colocation facility maintenance, which relate to operating our network and are therefore included in “Operating costs” as well as travel, office expense and other administrative costs that are included in “Selling, general and administrative expenses”. Other expenses are included in either “Operating costs” or “Selling, general and administrative expenses” in the consolidated statement of operations depending on their relationship to generating revenue or association with sales and administration. Transaction costs include expenses associated with professional services (i.e. legal, accounting, regulatory, etc.) rendered in connection with acquisitions or disposals (including spin-offs), travel expense, severance expense incurred on the date of acquisition or disposal, and other direct expenses incurred that are associated with signed and/or closed acquisitions or disposals. Transaction costs are included in “Selling, general and administrative expenses” in the consolidated statements of operations. Related to Netex, the Company recognizes the cost of these facilities or services when it is incurred in accordance with contractual requirements. The Company routinely disputes incorrect billings. The most prevalent types of disputes include disputes for circuits that are not disconnected on a timely basis and usage bills with incorrect records. Depending on the type and complexity of the issues involved, it may take several quarters to resolve disputes. In determining the amount of such operating expenses and related accrued liabilities to reflect in its consolidated financial statements, management considers the adequacy of documentation of disconnect notices, compliance with prevailing contractual requirements for submitting such disconnect notices and disputes to the provider of the facilities, and compliance with its interconnection agreements with these carriers. Significant judgment is required in estimating the ultimate outcome of the dispute resolution process, as well as any other costs that may be incurred to conclude the negotiations or settle any litigation. k. Stock-Based Compensation In October 2014, the Company adopted a new incentive plan. The plan includes incentive cash compensation (ICC) and equity (in the form of restricted stock units). Grants under the new incentive plan are made quarterly for all participants. The Company recognizes all stock-based awards to employees and independent directors, based on their grant-date fair values and the Company’s estimates of forfeitures. The Company recognizes the fair value of outstanding awards as a charge to operations over the vesting period. The Company uses the straight-line method to recognize share-based compensation expense for outstanding share awards that do not contain a performance condition. Prior to the Company’s IPO, the Company was given authorization by CII to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. In connection with the Company’s IPO and the related amendment to the CII operating agreement, there was a deemed modification to the stock compensation arrangements with the Company’s employees and directors. As a result, previously issued common units which were historically accounted for as liability awards, became classified as equity awards. Determining the fair value of certain share-based awards at the grant date and subsequent reporting dates requires judgment. If actual results differ significantly from these estimates, stock-based compensation expense and the Company’s results of operations could be materially impacted. For additional information regarding our stock-based compensation, see Note 12 – Stock-Based Compensation l. Legal Costs Costs incurred to hire and retain external legal counsel to advise us on regulatory, litigation and other matters is expensed as the related services are received. m. Income Taxes The Company recognizes income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. Estimating the future tax benefit associated with deferred tax assets requires significant judgment. Deferred tax assets arise from a variety of sources, the most significant being: tax losses that can be carried forward to be utilized against taxable income in future years; and expenses recognized in the Company’s financial statements but disallowed in the Company’s tax return until the associated cash flow occurs. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is expected to be recognized. The valuation allowance is established if, based on available evidence, it is more-likely-than-not that all or some portion of the asset will not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. When evaluating whether it is more-likely-than-not that all or some portion of the deferred tax asset will not be realized, all available evidence, both positive and negative, that may affect the realizability of deferred tax assets is identified and considered in determining the appropriate amount of the valuation allowance. The Company continues to monitor its financial performance and other evidence each quarter to determine the appropriateness of the Company’s valuation allowance. At each balance sheet date, existing assessments are reviewed and, if necessary, revised to reflect changed circumstances. The analysis of the Company’s ability to utilize its NOL balance is based on the Company’s forecasted taxable income. The forecasted assumptions approximate the Company’s best estimates, including market growth rates, future pricing, market acceptance of the Company’s products and services and future expected capital investments. If the Company is unable to meet its taxable income forecasts in future periods the Company may change its conclusion about the appropriateness of the valuation allowance which could create a substantial income tax expense in the Company’s consolidated statement of operations in the period such change occurs. Deferred tax liabilities related to investments in foreign subsidiaries and foreign corporate joint ventures that are essentially permanent in duration are not recognized until it becomes apparent that such amounts will reverse in the foreseeable future. The Company records interest related to unrecognized tax benefits and penalties in the provision for income taxes. n. Fair Value of Financial Instruments Relevant accounting literature defines and establishes a framework for measuring fair value, and requires expanded disclosures about fair value measurements. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques that may be used include the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost), which are each based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Fair Value Hierarchy A fair value hierarchy is established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that are used to measure fair value are: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in inactive markets; • inputs other than quoted prices that are observable for the asset or liability; and • inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company views fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, management considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. o. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash investments and accounts receivable. The Company’s cash and cash equivalents are primarily held in commercial bank accounts in the United States and Great Britain. The Company limits its cash investments to high-quality financial institutions in order to minimize its credit risk. During the years ended June 30, 2015, 2014 and 2013 the Company had no single customer that exceeded 10% of total revenue. The Company’s trade receivables, which are unsecured, are geographically dispersed. As of June 30, 2015 and 2014, the Company had one customer with a trade receivable balance of 10% and 12%, respectively, of total receivables. p. Reclassification of Network Related Expenses and Zayo Professional Services The Company has historically included certain network related expenses associated with the operations, support and maintenance of its network assets and technical facilities, including compensation and related benefits and stock-based compensation expense associated with personnel involved in these activities, within the line item “Selling, general and administrative expenses” in its consolidated statement of operations. The Company has changed its presentation of these network related expenses to be included in operating costs in its consolidated statements of operations to differentiate costs attributed to generating revenue from selling, general and administrative expenses. This reclassification does not impact the Company’s previously reported total operating costs and expenses, operating income subtotal or net loss total for the periods presented. The following tables reflect the reclassification of network related expenses from “Selling, general and administrative expenses” to “Operating costs” for each of the quarters and annual period for Fiscal 2014. The following table reflects the reclassification of network related expenses from “Selling, general and administrative expenses” to “Operating costs” and the impact of the transfer of ZPS into the Company for each of the quarters and annual periods in Fiscal 2014. Fiscal 2014 Quarter Ended Year Ended September 30 December 31 March 31 June 30 June 30, 2014 Operating costs, as originally stated $ 34.9 $ 35.0 $ 35.4 $ 36.2 $ 141.5 Reclassification of network-related expenses 42.8 49.0 47.7 53.3 192.8 Transfer of Zayo Professional Services 2.0 1.9 1.8 3.3 9.0 Operating costs, as adjusted $ 79.7 $ 85.9 $ 84.9 $ 92.8 $ 343.3 Selling, general and administrative expenses, as originally stated $ 117.4 $ 134.2 $ 142.7 $ 176.9 $ 571.2 Reclassification of network-related expenses (42.8 ) (48.9 ) (47.8 ) (53.3 ) (192.8 ) Transfer of Zayo Professional Services 1.8 1.7 1.7 1.0 6.2 Selling, general and administrative expenses, as adjusted $ 76.4 $ 87.0 $ 96.6 $ 124.6 $ 384.6 See also Note 4 - Transfer of Zayo Professional Services. The interim and annual financial information for Fiscal 2014 have been adjusted accordingly in the Company’s condensed consolidated balance sheet and statements of operations. The effect of the transfer of ZPS into the Company on net income/(loss), other comprehensive income/(loss), and any related per-share amounts was immaterial for all prior periods presented herein q. Recently Issued Accounting Pronouncements Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of the end of Fiscal 2015, and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $71.0 million and $89.4 million of unamortized debt issuance costs (see Note 8 – Long Term Debt Long-term debt, non-current Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Acquisitions
Acquisitions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Business Combinations [Abstract] | ||
Acquisitions | (2) ACQUISITIONS Since its formation, the Company has consummated 36 transactions accounted for as business combinations. The acquisitions were executed as part of the Company’s business strategy of expanding through acquisitions. The acquisitions of these businesses have allowed the Company to increase the scale at which it operates, which in turn affords the Company the ability to increase its operating leverage, extend its network reach, and broaden its customer base. The accompanying condensed consolidated financial statements include the operations of the acquired entities from their respective acquisition dates. Acquisitions Completed During Fiscal 2016 Viatel On December 31, 2015 , the Company completed the acquisition of a 100% interest in Viatel Infrastructure Europe Ltd., Viatel (UK) Limited, Viatel France SAS, Viatel Deutschland GmbH and Viatel Nederland BV (collectively, “Viatel”) for cash consideration of €92.6 million (or $101.0 million), net of cash acquired. The final purchase consideration is subject to certain post-closing adjustments. The acquisition was funded with cash on hand. €5.0 million (or $5.5 million) of the purchase consideration is currently held in escrow pending expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. Dallas Data Center Acquisition (“Dallas Data Center”) On December 31, 2015, the Company acquired a 36,000 square foot data center located in Dallas, Texas for cash consideration of $16.7 million. The acquisition was funded with cash on hand and was considered an asset purchase for tax purposes. Acquisitions Completed During Fiscal 2015 Colo Facilities Atlanta (“AtlantaNAP”) On July 1, 2014 , the Company acquired 100% of the equity interest in AtlantaNAP, a datacenter and managed services provider in Atlanta, for cash consideration of $51.9 million. The acquisition was considered an asset purchase for tax purposes. Neo Telecoms (“Neo”) On July 1, 2014 , the Company acquired a 96% equity interest in Neo, a Paris-based bandwidth infrastructure company. The purchase agreement also includes a call option to acquire the remaining equity interest on or after December 31, 2015. The purchase consideration of €54.1 million (or $73.9 million), net of cash acquired, was in consideration of acquiring 96% equity ownership in Neo and a call option to purchase the remaining 4% equity interest in Neo. The fair value of the 4% non-controlling interest in Neo as of the acquisition date was $2.9 million and recorded in Other long-term liabilities. The consideration consisted of cash and was paid with cash on hand from the proceeds of the Term Loan Facility (as defined below). €8.7 million (or $11.9 million) of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. IdeaTek Systems, Inc. (“IdeaTek”) Effective January 1, 2015 , the Company acquired all of the equity interest in IdeaTek. The purchase price, subject to certain post-closing adjustments, was $52.7 million and was paid with cash on hand. $3.2 million of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. The IdeaTek acquisition added 1,800 route miles to the Company’s network in Kansas, and includes a dense metro footprint in Wichita, Kansas. The network spans across Kansas and connects to approximately 600 cellular towers and over 100 additional buildings. Latisys Holdings, LLC (“Latisys”) On February 23, 2015 , the Company acquired the operating units of Latisys, a colocation and infrastructure as a service (“Iaas”) provider for a price of $677.8 million, net of cash acquired. The Latisys acquisition was funded with the proceeds of the January Notes Offering (as defined in Note 5 – Long-Term Debt ). $31.4 million of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. Acquisition Method Accounting Estimates The Company initially recognizes the assets and liabilities acquired from the aforementioned acquisitions based on its preliminary estimates of their acquisition date fair values. As additional information becomes known concerning the acquired assets and assumed liabilities, management may make adjustments to the opening balance sheet of the acquired company up to the end of the measurement period, which is no longer than a one year period following the acquisition date. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As of December 31, 2015 , the Company has not completed its fair value analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair value of certain working capital and non-working capital acquired assets and assumed liabilities, including the allocations to goodwill and intangible assets, deferred revenue and resulting deferred taxes related to its acquisitions of Viatel, Dallas Data Center, and Latisys. All information presented with respect to certain working capital and non-working capital acquired assets and liabilities assumed as it relates to these acquisitions is preliminary and subject to revision pending the final fair value analysis. The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2016 acquisitions: Viatel Dallas Data Center Acquisition date December 31, 2015 December 31, 2015 (in millions) Cash $ $ — Other current assets — Property and equipment Deferred tax assets, net — — Intangibles Goodwill — Other assets — — Total assets acquired Current liabilities — Deferred revenue — Deferred tax liability, net — Other liabilities — — Total liabilities assumed — Net assets acquired Less cash acquired — Net consideration paid $ $ The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions: AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 (in millions) Cash $ — $ $ — $ Other current assets Property and equipment Deferred tax assets, net — — Intangibles Goodwill Other assets — — Total assets acquired Current liabilities Deferred revenue — Deferred tax liability, net — — Other liabilities — — — Total liabilities assumed Net assets acquired Less cash acquired — — Net consideration paid $ $ $ $ The goodwill arising from the Company’s acquisitions results from synergies, anticipated incremental sales to the acquired company customer base and economies-of-scale expected from the acquisitions. The Company has allocated the goodwill to the reporting units (in existence on the respective acquisition dates) that were expected to benefit from the acquired goodwill. The allocation was determined based on the excess of the estimated fair value of the reporting unit over the estimated fair value of the individual assets acquired and liabilities assumed that were assigned to the reporting units. Note 3 - Goodwill , displays the allocation of the Company's acquired goodwill to each of its reporting units. In each of the Company’s Fiscal 2015 and Fiscal 2016 acquisitions, the Company acquired certain customer relationships. These relationships represent a valuable intangible asset, as the Company anticipates continued business from the acquired customer bases. The Company’s estimate of the fair value of the acquired customer relationships is based on a multi-period excess earnings valuation technique that utilizes Level 3 inputs. Transaction Costs Transaction costs include expenses associated with professional services (i.e., legal, accounting, regulatory, etc.) rendered in connection with signed and/or closed acquisitions or disposals (including spin-offs), travel expense, severance expense incurred on the date of acquisition or disposal, and other direct expenses incurred that are associated with such acquisitions or disposals. The Company incurred transaction costs of $3.3 million for the three and six months ended December 31, 2015, and $1.3 million and $4.6 million during the three and six months ended December 31, 2014, respectively. Transaction costs have been included in selling, general and administrative expenses in the condensed consolidated statements of operations and in cash flows from operating activities in the condensed consolidated statements of cash flows during these periods. Pro-forma Financial Information The pro forma results presented below include the effects of the Company’s Fiscal 2016 and 2015 acquisitions as if the acquisitions occurred on July 1, 2014 . The pro forma net loss for the periods ended December 31, 2015 and 2014 includes the additional depreciation and amortization resulting from the adjustments to the value of property and equipment and intangible assets resulting from purchase accounting and adjustment to amortized revenue during Fiscal 2016 and 2015 as a result of the acquisition date valuation of assumed deferred revenue. The pro forma results also include interest expense associated with debt used to fund the acquisitions. The pro forma results do not include any anticipated synergies or other expected benefits of the acquisitions. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2014 . Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenue $ $ $ $ Net loss $ $ $ $ The Company is unable to determine the amount of revenue and net income associated with each acquisition recognized during the period as a result of integration activities. | (3) ACQUISITIONS Since inception, the Company has consummated 34 transactions accounted for as business combinations. The acquisitions were executed as part of the Company’s business strategy of expanding through acquisitions. The acquisitions of these businesses have allowed the Company to increase the scale at which it operates, which in turn affords the Company the ability to increase its operating leverage, extend its network reach, and broaden its customer base. The accompanying consolidated financial statements include the operations of the acquired entities from their respective acquisition dates. Acquisitions Completed During Fiscal 2015 Neo Telecoms (“Neo”) On July 1, 2014, the Company acquired a 96% equity interest in Neo, a Paris-based bandwidth infrastructure company. The purchase agreement also includes a call option to acquire the remaining equity interest on or after December 31, 2015. The purchase consideration of €54.1 million (or $73.9 million), net of cash acquired, was in consideration of acquiring 96% equity ownership in Neo and a call option to purchase the remaining 4% equity interest in Neo. The fair value of the 4% non-controlling interest in Neo as of the acquisition date was $2.9 million and recorded in Other long-term liabilities. The consideration consisted of cash and was paid with cash on hand from the proceeds of the Sixth Amendment to the Company’s term loan facility. €8.7 million (or $11.9 million) of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. Colo Facilities Atlanta (“AtlantaNAP”) On July 1, 2014, the Company acquired 100% of the equity interest in AtlantaNAP, a datacenter and managed services provider in Atlanta, for cash consideration of $51.9 million. $5.3 million of the purchase price is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered an asset purchase for tax purposes. IdeaTek Systems, Inc. (“IdeaTek”) Effective January 1, 2015, the Company acquired all of the equity interest in IdeaTek. The purchase price, subject to certain post-closing adjustments, was $52.7 million and was paid with cash on hand, $3.2 million of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. The IdeaTek acquisition added 1,800 route miles to the Company’s network in Kansas, and includes a dense metro footprint in Wichita, Kansas. The network spans across Kansas and connects to approximately 600 cellular towers and over 100 additional buildings. Latisys Holdings, LLC (“Latisys”) On February 23, 2015, the Company acquired the operating units of Latisys, a colocation and infrastructure as a service (“Iaas”) provider for a price of $677.5 million, net of cash acquired. The Latisys acquisition was funded with the proceeds of the January Notes Offering (as defined in Note 8 – Long-Term Debt The Latisys acquisition added colocation and IaaS services through eight datacenters across five markets in Northern Virginia, Chicago, Denver, Orange County and London. The acquired datacenters currently total over 185,000 square feet of billable space and 33 megawatts of critical power. Acquisitions During the Year Ended June 30, 2014 Corelink Data Centers, LLC ("Corelink") On August 1, 2013, the Company entered into an asset purchase agreement to acquire Corelink. The transaction was consummated on the same date, at which time the Company acquired substantially all of the net assets of this business for consideration of approximately $1.9 million comprised of 301,949 preferred units of CII with an estimated fair value of $1.6 million and cash of $0.3 million, net of cash acquired. The acquisition was considered a stock purchase for tax purposes. The cash consideration was paid with cash on hand. Access Communications, Inc. ("Access") On October 1, 2013, the Company acquired 100% of the equity interest in Access, a Minnesota corporation, for cash consideration of $40.1 million net of cash acquired, of which $4.0 million is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. The purchase price was paid with cash on hand. FiberLink, LLC ("FiberLink") On October 2, 2013, the Company acquired 100% of the equity interest in FiberLink, an Illinois limited liability company, for cash consideration of $43.1 million which was primarily funded with available funds drawn on the Company’s revolving credit facility. The acquisition was considered an asset purchase for tax purposes. CoreXchange, Inc. ("CoreXchange") On March 4, 2014, the Company 100% consummated the asset purchase agreement to acquire CoreXchange, a data center, bandwidth and managed services provider located in Dallas, Texas for consideration of $17.2 million net of cash acquired. Through the transaction, the Company acquired one new data center operation located at 8600 Harry Hines Blvd. and secured additional square footage in its existing data center. The consideration was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Geo Networks Limited ("Geo") On May 16, 2014, the Company acquired 100% of the equity interest in Ego Holdings Limited, a London-based dark fiber provider. The consideration consisted of cash of £174.3 million (or $292.3 million), net of cash acquired, and was funded with a combination of cash on hand and available funds drawn on the Company’s revolving credit facility. In conjunction with the acquisition, the Company repaid Geo’s existing debt obligations to the note holders totaling £113.4 million and £69.1 million was paid to the shareholders. The acquisition was considered a stock purchase for tax purposes. Acquisitions During the Year Ended June 30, 2013 AboveNet, Inc. (“AboveNet”) On July 2, 2012, the Company acquired 100% of the outstanding capital stock of AboveNet, previously a publicly traded company listed on the NYSE, in exchange for cash of approximately $2,210.0 million, net of cash acquired. The purchase price was based upon the price of $84.00 per share agreed to in the Agreement and Plan of Merger and the number of AboveNet shares outstanding on July 2, 2012. The acquisition was funded through cash proceeds raised through financing transactions that occurred in July 2012. The acquisition was considered a stock purchase for tax purposes. FiberGate Holdings, Inc. (“FiberGate”) On August 31, 2012, the Company acquired 100% of the equity interest in FiberGate, a privately held corporation, for total consideration of $118.3 million. The acquisition was funded with cash on hand. $17.6 million of the purchase price is currently held in escrow pending the expiration of the working capital and indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. USCarrier Telecom, LLC (“USCarrier”) In connection with the October 1, 2010 American Fiber Systems acquisition, the Company acquired an ownership interest in USCarrier. As of June 30, 2012, the Company owned 55% of the outstanding Class A membership units and 34% of the outstanding Class B membership units of USCarrier. On October 1, 2012, the Company acquired the remaining equity interests in USCarrier not previously owned for total consideration of $16.1 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. First Telecom Services, LLC (“First Telecom”) On December 14, 2012, the Company acquired 100% of the equity interest in First Telecom, for total consideration of $109.7 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Litecast/Balticore, LLC (“Litecast”) On December 31, 2012, the Company acquired 100% of the equity interest in Litecast for total consideration of $22.2 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Core NAP, L.P. (“Core NAP”) On May 31, 2013, the Company acquired substantially all of the net assets of Core NAP for a purchase price of approximately $7.1 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Acquisition Method Accounting Estimates The Company initially recognizes the assets and liabilities acquired from the aforementioned acquisitions based on its preliminary estimates of their acquisition date fair values. As additional information becomes known concerning the acquired assets and assumed liabilities, management may make adjustments to the opening balance sheet of the acquired company up to the end of the measurement period, which is no longer than a one year period following the acquisition date. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As of June 30, 2015, the Company has not completed its fair value analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair value of certain working capital and non-working capital acquired assets and assumed liabilities, including the allocations to property, plant and equipment, goodwill and intangible assets, deferred revenue and resulting deferred taxes related to its acquisitions of IdeaTek and Latisys. All information presented with respect to certain working capital and non-working capital acquired assets and liabilities assumed as it relates to these acquisitions are preliminary and subject to revision pending the final fair value analysis. During the first quarter of Fiscal 2015, the Company finalized its fair value analysis and resulting purchase accounting for the Access and FiberLink acquisitions. During the third quarter of Fiscal 2015, the Company finalized its fair value analysis and resulting purchase accounting for the CoreXchange acquisition. During the fourth quarter of Fiscal 2015, the Company finalized its fair value analysis and resulting purchase accounting for the Geo, AtlantaNAP and Neo acquisitions. The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions (in millions): AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 Cash $ — $ 4.2 $ — $ 9.4 Other current assets 0.2 9.5 0.8 17.1 Property and equipment 7.0 31.3 32.3 222.9 Deferred tax assets, net — — 2.9 — Intangibles 21.0 26.4 7.6 250.2 Goodwill 25.2 32.5 38.8 279.8 Other assets — 2.3 — 5.0 Total assets acquired 53.4 106.2 82.4 784.4 Current liabilities 1.5 13.5 4.5 10.7 Deferred revenue — 3.7 25.2 3.2 Deferred tax liability, net — 7.6 — 83.6 Other liabilities — 3.3 — — Total liabilities assumed 1.5 28.1 29.7 97.5 Net assets acquired 51.9 78.1 52.7 686.9 Less cash acquired — (4.2 ) — (9.4 ) Net consideration paid $ 51.9 $ 73.9 $ 52.7 $ 677.5 The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2014 acquisitions (in millions): Corelink Access FiberLink CoreXchange Geo Acquisition date August 1, 2013 October 1, 2013 October 2, 2013 March 4, 2014 May 16, 2014 Cash $ 0.1 $ 1.2 $ — $ — $ 13.7 Other current assets 0.5 2.3 0.8 0.6 8.8 Property and equipment 15.9 11.5 15.9 3.1 220.4 Deferred tax assets, net — — 7.7 0.2 — Intangibles 0.2 18.0 19.3 11.0 60.8 Goodwill 2.9 24.0 19.8 3.4 113.8 Other assets 0.5 — 0.1 — 9.8 Total assets acquired 20.1 57.0 63.6 18.3 427.3 Current liabilities 0.7 1.0 1.3 0.5 34.8 Deferred revenue 0.2 5.1 19.2 0.4 45.1 Capital lease obligations 14.2 — — 0.2 — Deferred tax liability, net 3.0 9.6 — — 38.2 Other liabilities — — — — 3.2 Total liabilities assumed 18.1 15.7 20.5 1.1 121.3 Net assets acquired 2.0 41.3 43.1 17.2 306.0 Less cash acquired (0.1 ) (1.2 ) — — (13.7 ) Net consideration paid $ 1.9 $ 40.1 $ 43.1 $ 17.2 $ 292.3 The table below reflects the Company's estimates of the acquisition date fair values of the acquired assets and liabilities assumed from its Fiscal 2013 acquisitions (in millions): AboveNet Fibergate US Carrier First Telecom Litecast Core NAP Acquisition date July 2, 2012 August 31, 2012 October 1, 2012 December 14, 2012 December 14, 2012 May 31, 2013 Cash $ 141.6 $ 2.3 $ — $ — $ — $ — Other current assets 46.5 4.9 1.3 5.9 0.3 0.2 Property and equipment 1,477.3 59.0 19.4 63.5 0.4 2.5 Deferred tax assets, net 42.1 — 2.0 19.2 — — Intangibles 480.4 35.9 6.8 17.1 12.5 4.1 Goodwill 381.6 53.8 5.4 48.4 9.9 1.0 Other assets 12.6 — — 0.1 — — Total assets acquired 2,582.1 155.9 34.9 154.2 23.1 7.8 Current liabilities 78.4 1.5 3.7 4.6 0.2 0.5 Deferred revenue 146.0 2.5 2.2 39.9 0.7 — Other liabilities 6.1 — — — — 0.2 Deferred tax liability, net — 31.3 — — — — Total liabilities assumed 230.5 35.3 5.9 44.5 0.9 0.7 Net assets acquired 2,351.6 120.6 28.9 109.7 22.2 7.1 Cost method investment in USCarrier — — (12.8 ) — — — Less cash acquired (141.6 ) (2.3 ) — — — — Net consideration paid $ 2,210.0 $ 118.3 $ 16.1 $ 109.7 $ 22.2 $ 7.1 The goodwill arising from the Company's acquisitions results from the cost synergies, anticipated incremental sales to the acquired company's customer base and economies-of-scale expected from the acquisitions. The Company has allocated the goodwill to the reporting units (in existence on the respective acquisition dates) that were expected to benefit from the acquired goodwill. The allocation was determined based on the excess of the fair value of the acquired business over the fair value of the individual assets acquired and liabilities assumed that were assigned to the reporting units. Note 6 - Goodwill Purchase Accounting Estimates Associated with Deferred Taxes The Company acquired material deferred tax assets and/or liabilities in its acquisitions of Latisys, Geo and AboveNet. Based on the Company’s fair value assessment related to deferred tax assets acquired in the Latisys, Geo and AboveNet acquisitions, a value of $(83.6) million, $(38.2) million, and $42.1 million, respectively, was assigned to the acquired net deferred tax (liabilities)/asset. In conjunction with the acquisition accounting for Latisys and AboveNet, the Company completed a “change in ownership” analysis, within the meaning of Section 382 of the Internal Revenue Code (“IRC”). Section 382 of the IRC limits an acquiring company’s ability to utilize net operating loss carry forwards (“NOLs”) previously generated by an acquired company in order to reduce future taxable income. As a result of the Company’s acquisition of Latisys and AboveNet, the Company is subject to annual limitations on usage of the acquired $126.3 million and $1,008.8 million of NOLs generated by Latisys and AboveNet prior to the acquisition date. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in millions): Latisys Geo AboveNet February 23, May 16, 2014 July 2, 1012 Deferred income tax assets: Net operating loss carryforwards $ 49.9 $ 2.5 $ 405.3 Deferred revenue 1.1 4.4 49.1 Accrued expenses 0.1 — 12.2 Allowance for doubtful accounts 0.3 — 2.5 Other 0.4 — — Total deferred income tax assets 51.8 6.9 469.1 Deferred income tax liabilities: Property and equipment (42.3 ) (32.9 ) (250.0 ) Intangible assets (93.1 ) (12.2 ) (177.0 ) Total deferred income tax liabilities (135.4 ) (45.1 ) (427.0 ) Net deferred income tax asset/(liabilities) $ (83.6 ) $ (38.2 ) $ 42.1 Adjustments to Purchase Accounting Estimates Associated with Prior Year Acquisitions During Fiscal 2015, the Company finalized its acquisition accounting for acquisitions consummated during Fiscal 2014 resulting in adjustments to previously reported allocation of the purchase consideration associated with its Fiscal 2014 acquisitions. The adjustments were a result of changes to the original fair value estimates of certain items acquired. These changes are the result of additional information obtained since June 30, 2014 that related to facts and circumstances that existed at the respective acquisition dates. The Company has recast the previously reported consolidated balance sheet as of June 30, 2014 in connection with the finalization of acquisition accounting for these acquisitions. The Company did not recast the previously reported consolidated statement of operations for the year ended June 30, 2014 due to the immaterial effect of the related adjustments. The following table reflects the financial statement captions impacted by the purchase accounting adjustments: Adjusted Balance June 30, 2014 Previously Reported Balance* June 30, 2014 Purchase accounting adjustment Assets Current assets Trade receivables, net 57.2 59.0 (1.8 ) Prepaid expenses 24.9 25.6 (0.7 ) Deferred income taxes, net 161.0 160.4 0.6 Total current assets 243.1 245.0 (1.9 ) Property and equipment, net 2,822.4 2,821.4 1.0 Intangible assets, net 710.3 709.7 0.6 Goodwill 866.7 845.3 21.4 Other assets 37.7 37.8 (0.1 ) Total assets $ 4,680.2 $ 4,659.2 $ 21.0 Liabilities Current liabilities Accounts payable 26.7 27.0 (0.3 ) Accrued liabilities 172.3 159.6 12.7 Total current liabilities 199.0 186.6 12.4 Capital lease obligation, non-current 25.7 22.9 2.8 Deferred revenue, non-current 501.5 496.9 4.6 Deferred income taxes, net 153.0 151.8 1.2 Total liabilities $ 879.2 $ 858.2 $ 21.0 * As reported on Form 10-Q filed with the SEC on May 13, 2015 Transaction Costs Transaction costs include expenses associated with professional services (i.e., legal, accounting, regulatory, etc.) rendered in connection with signed and/or closed acquisitions or disposals (including spin-offs), travel expense, severance expense incurred on the date of acquisition or disposal, and other direct expenses incurred that are associated with such acquisitions or disposals. The Company incurred transaction costs of $5.9 million, $4.5 million, and $14.2 million, during the years ended June 30, 2015, 2014 and 2013, respectively. Transaction costs have been included in selling, general and administrative expenses in the consolidated statements of operations and in cash flows from operating activities in the consolidated statements of cash flows during these periods. Pro-forma Financial Information (Unaudited) The pro forma results presented below include the effects of the Company’s Fiscal 2015 and 2014 acquisitions as if the acquisitions occurred on July 1, 2013. The pro forma net loss for the periods ended June 30, 2015 and 2014 includes the additional depreciation and amortization resulting from the adjustments to the value of property and equipment and intangible assets resulting from purchase accounting and adjustment to amortized revenue during Fiscal 2015 and 2014 as a result of the acquisition date valuation of assumed deferred revenue. The pro forma results also include interest expense associated with debt used to fund the acquisitions. The pro forma results do not include any anticipated synergies or other expected benefits of the acquisitions. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2013. Year Ended June 30, 2015 2014 Revenue $ 1,420.2 $ 1,329.6 Net loss $ (182.4 ) $ (221.5 ) The Company is unable to determine the amount of revenue associated with each acquisition recognized in the post-acquisition period as a result of integration activities. |
Transfer of Zayo Professional S
Transfer of Zayo Professional Services | 12 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Transfer of Zayo Professional Services | (4) TRANSFER OF ZAYO PROFESSIONAL SERVICES On July 1, 2014, Zayo Professional Services ("ZPS"), a professional services business that provides network management and technical resources to customers, was transferred from Holdings to the Company. All of the assets and liabilities of ZPS were transferred to the Company as of July 1, 2014 and the transaction was accounted for as an equity transaction at carryover basis, as it was considered to be between entities under common control. The historical results of the Company, including the consolidated financial statements and footnotes, have been recast to include ZPS's historical financial results for all periods presented herein. See Note 1 - Business and Basis of Presentation Reclassification of Network Related Expenses and Zayo Professional Services |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (5) PROPERTY AND EQUIPMENT Property and equipment, including assets held under capital leases, was comprised of the following (in millions): Estimated useful lives As of June 30, (in years) 2015 2014 Land N/A $ 16.2 $ 0.7 Building leasehold and site improvements 15 to 20 109.2 64.7 Furniture, fixtures and office equipment 3 to 7 5.1 5.7 Computer hardware 3 to 5 15.1 16.7 Software 3 8.3 9.3 Machinery and equipment 5 to 7 272.1 94.9 Fiber optic equipment 8 623.3 583.7 Circuit switch equipment 10 12.1 11.8 Packet switch equipment 5 76.2 62.8 Fiber optic network 15 to 20 2,715.4 2,450.8 Construction in progress N/A 437.1 259.0 Total 4,290.1 3,560.1 Less accumulated depreciation (990.9 ) (737.7 ) Property and equipment, net $ 3,299.2 $ 2,822.4 Total depreciation expense, including depreciation of assets held under capital leases, for the years ended June 30, 2015, 2014 and 2013 was $351.4 million, $294.2 million and $280.1 million, respectively. During the years ended June 30, 2015, 2014 and 2013, the Company capitalized interest in the amounts of $12.5 million, $12.6 million and $13.0 million, respectively. The Company capitalized $58.3 million, $42.7 million, and $28.6 million of direct labor costs to property and equipment accounts during the years ended June 30, 2015, 2014 and 2013, respectively. During the year ended June 30, 2015, the Company wrote-off $93.4 million in fully depreciated property and equipment. |
Goodwill
Goodwill | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | (3) GOODWILL The Company’s goodwill balance was $1,222.2 million and $1,224.4 million as of December 31, 2015 and June 30, 2015 , respectively. The Company’s reporting units are comprised of its strategic product groups (“SPGs”): Zayo Dark Fiber (“Dark Fiber”), Zayo Wavelength Services (“Waves”), Zayo SONET Services (“SONET”), Zayo Ethernet Services (“Ethernet”), Zayo IP Services (“IP”), Zayo Mobile Infrastructure Group (“MIG”), Zayo Colocation (“zColo"), Zayo Cloud Services (“Cloud”) and Other (primarily ZPS). The following reflects the changes in the carrying amount of goodwill during the six months ended December 31, 2015 : Product Group As of June 30, 2015 Fiscal 2016 Acquisitions Adjustments to Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of December 31, 2015 (in millions) Dark Fiber $ $ $ — $ $ Waves — Sonet — — Ethernet — IP — MIG — — zColo Cloud — — Other — — — Total $ $ $ $ $ During the six months ended December 31, 2015, the Company recorded adjustments to its provisional accounting estimates primarily associated with deferred tax asset balances acquired from the IdeaTek and Latisys acquisitions, which resulted in a $4.8 million reduction to goodwill . | (6) GOODWILL The Company’s goodwill balance was $1,224.4 million and $866.7 million as of June 30, 2015 and 2014, respectively. The Company’s reporting units are comprised of its strategic product groups (“SPGs”): Zayo Dark Fiber (“Dark Fiber”), Zayo Wavelength Services (“Waves”), Zayo SONET Services (“SONET”), Zayo Ethernet Services (“Ethernet”), Zayo IP Services (“IP”), Zayo Mobile Infrastructure Group (“MIG”), Zayo Colocation (“zColo"), Zayo Cloud Services (“Cloud”) and Other (primarily ZPS). The following reflects the changes in the carrying amount of goodwill during Fiscal 2015 (in millions): Product Group As of July 1, 2014 Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of June 30, 2015 Dark Fiber $ 293.3 $ 16.0 $ (10.2 ) $ 299.1 Waves 269.0 1.4 (4.8 ) 265.6 Sonet 50.3 — — 50.3 Ethernet 96.7 8.2 (0.7 ) 104.2 IP 80.5 6.8 (1.0 ) 86.3 MIG 43.7 29.8 (0.1 ) 73.4 zColo 18.6 256.0 (1.4 ) 273.2 Cloud — 57.2 (0.2 ) 57.0 Other 14.6 0.9 (0.2 ) 15.3 Total $ 866.7 $ 376.3 $ (18.6 ) $ 1,224.4 The following reflects the changes in the carrying amount of goodwill during Fiscal 2014 (in millions): Product Group As of July 1, 2013 Fiscal 2014 Acquisitions Foreign Currency Translation and Other As of June 30, 2014 Dark Fiber $ 193.3 $ 97.4 $ 2.6 $ 293.3 Waves 215.9 49.6 3.5 269.0 Sonet 50.3 — — 50.3 Ethernet 91.7 4.9 0.1 96.7 IP 80.1 0.2 0.2 80.5 MIG 38.3 5.4 — 43.7 zColo 11.9 6.4 0.3 18.6 Other 7.3 — 7.3 14.6 Total $ 688.8 $ 163.9 $ 14.0 $ 866.7 |
Intangible Assets
Intangible Assets | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Intangible Assets | (4) INTANGIBLE ASSETS Identifiable acquisition-related intangible assets as of December 31, 2015 and June 30, 2015 were as follows: Gross Carrying Amount Accumulated Amortization Net (in millions) December 31, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names — Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ | (7) INTANGIBLE ASSETS Identifiable acquisition-related intangible assets as of June 30, 2015 and 2014 were as follows (in millions): Gross Carrying Amount Accumulated Amortization Net June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ 1,080.3 $ (155.0 ) $ 925.3 Trade names 0.2 (0.1 ) 0.1 Underlying rights 1.7 (0.2 ) 1.5 Total 1,082.2 (155.3 ) 926.9 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying Rights 17.9 — 17.9 Total $ 1,103.6 $ (155.3 ) $ 948.3 June 30, 2014 Finite-Lived Intangible Assets Customer relationships $ 789.2 $ (103.6 ) $ 685.6 Trade names 0.1 — 0.1 Underlying rights 1.8 (0.1 ) 1.7 Total 791.1 (103.7 ) 687.4 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying rights 19.4 — 19.4 Total $ 814.0 $ (103.7 ) $ 710.3 The weighted average remaining amortization period for the Company’s customer relationships and trade name assets is 16.3 years and 1.0 years, respectively. The Company has determined that certain underlying rights (including easements) and the certifications have indefinite lives. The amortization period for underlying rights (including easements) is 20 years. The amortization of intangible assets for the years ended June 30, 2015, 2014 and 2013 was $54.8 million, $44.0 million, and $44.4 million, respectively. During the years ended June 30, 2015 and 2014, the Company wrote off $3.5 million and $27.2 million in fully amortized intangible assets, respectively. Estimated future amortization of finite-lived intangible assets is as follows (in millions): Year Ended June 30, 2016 $ 66.3 2017 66.2 2018 66.2 2019 66.2 2020 62.6 Thereafter 599.4 Total $ 926.9 |
Long-Term Debt
Long-Term Debt | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||
Long-Term Debt | (5) LONG-TERM DEBT As of December 31, 2015 and June 30, 2015 , long-term debt was as follows: December 31, June 30, 2015 2015 (in millions) Term Loan Facility due 2021 $ $ 10.125% Senior Unsecured Notes due 2020 6.00% Senior Unsecured Notes Due 2023 6.375% Senior Unsecured Notes Due 2025 Total debt obligations Unamortized discount on Term Loan Facility Unamortized premium on 6.00% Senior Unsecured Notes Unamortized debt issuance costs Carrying value of debt Less current portion Long-term debt, less current portion $ $ Term Loan Facility due 2021 and Revolving Credit Facility On May 6, 2015, the Company and Zayo Capital, Inc. (“Zayo Capital”) entered into an Amendment and Restatement Agreement whereby its credit agreement (the “Credit Agreement”) governing its senior secured term loan facility (the “Term Loan Facility”) and $450 million senior secured revolving credit facility (the “Revolver”) was amended and restated in its entirety. The amended and restated Credit Agreement extended the maturity date of its outstanding term loans under the Term Loan Facility to May 6, 2021. The interest rate margins applicable to the Term Loan Facility were decreased by 25 basis points to LIBOR plus 2.75% with a minimum LIBOR of 1.0% . In addition, the amended and restated Credit Agreement removed the fixed charge coverage ratio covenant and replaced such covenant with a springing senior secured leverage ratio maintenance requirement applicable only to the Revolver, increased certain lien and debt baskets, and removed certain covenants related to collateral. The terms of the Term Loan Facility require the Company to make quarterly principal payments of $4.1 million plus an annual payment of up to 50% of excess cash flow, as determined in accordance with the Credit Agreement (no such payment was required during the three and six months ended December 31, 2015 or 2014 ). The Revolver matures at the earliest of (i) April 17, 2020 , (ii) six months prior to the maturity date of the Term Loan Facility, subject to amendment thereof, and (iii) six months prior to the maturity date of the 2020 Unsecured Notes (as defined below), subject to repayment or amendment thereof. The Credit Agreement also allows for letter of credit commitments of up to $50.0 million. The Revolver is subject to a fee per annum of 0.25% to 0.375% (based on its current leverage ratio) of the weighted-average unused capacity, and the undrawn amount of outstanding letters of credit backed by the Revolver are subject to a 0.25% fee per annum. Outstanding letters of credit backed by the Revolver accrue interest at a rate ranging from LIBOR plus 2.0% to LIBOR plus 3.0% per annum based upon its leverage ratio. Interest rates on the Term Loan Facility as of December 31, 2015 and June 30, 2015 were 3.75% . Interest rates on the Revolver as of December 31, 2015 and June 30, 2015 were approximately 3.2% and 3.0%, respectively. As of December 31, 2015 , no amounts were outstanding under the Revolver. Standby letters of credit were outstanding in the amount of $9.2 million as of December 31, 2015 , leaving $440.8 million available under the Revolver. 10.125% Senior Unsecured Notes due 2020 On July 2, 2012, the Company and Zayo Capital (the “Issuers”) issued $500.0 million aggregate principal amount of 10.125% senior unsecured notes due 2020 (the “2020 Unsecured Notes”). On December 15, 2014, the Issuers redeemed $174.4 million of their outstanding 2020 Unsecured Notes at a price of 110.125% and $75.0 million of their then outstanding 8.125% senior secured notes due 2020 at a price of 108.125% (the “Note Redemption”). As part of the Note Redemption, the Company paid an early redemption call premium of $23.8 million, which was recorded as a loss on extinguishment of debt on the consolidated statements of operations during three and six months ended December 31, 2014. 6.00% Senior Unsecured Notes Due 2023 and 6.375% Senior Unsecured Notes due 2025 On January 23, 2015, the Issuers completed a private offering (the “January Notes Offering”) of $700.0 million aggregate principal amount of 6.00% senior unsecured notes due in 2023 (the “2023 Unsecured Notes”). On March 9, 2015, the Issuers completed a private offering of an additional $730.0 million aggregate principal amount of 2023 Unsecured Notes at a premium of 1% (the “March Notes Offering”) resulting in aggregate gross proceeds for the 2023 Unsecured Notes of $1,437.3 million. The issue premium of $7.3 million on the March Notes Offering is being accreted against interest expense over the term of the notes under the effective interest method. The 2023 Unsecured Notes bear interest at the rate of 6.00% per year, which is payable on April 1 and October 1 of each year, beginning on October 1, 2015. The 2023 Unsecured Notes will mature on April 1, 2023 . The net proceeds from the January Notes Offering were used to fund the Latisys acquisition (see Note 2 – Acquisitions ). The net proceeds from the March Notes Offering were used to redeem the remaining $675.0 million of the Issuers’ then outstanding 8.125% senior secured notes due 2020 at a price of 105.75% (the “Second Notes Redemption”). As part of the Second Notes Redemption, the Company paid an early redemption call premium of $38.8 million. The call premium was recorded as a loss on extinguishment of debt on the consolidated statements of operations during the three months ended March 31, 2015. On May 6, 2015, the Issuers completed a private offering of $350.0 million aggregate principal amount of 6.375% senior unsecured notes due in 2025 (the “2025 Unsecured Notes”). Interest on the 2025 Unsecured Notes is payable on May 15 and November 15 of each year, beginning on November 15, 2015. The 2025 Unsecured Notes will mature on May 15, 2025 . The net proceeds from the 2025 Unsecured Notes were used to repay $344.5 million of the Term Loan Facility. As a result of the repayment, the Company recorded a loss on extinguishment of debt of $8.4 million during the three months ended June 30, 2015. Debt covenants The indentures (the “Indentures”) governing the 2020 Unsecured Notes, the 2023 Unsecured Notes and the 2025 Unsecured Notes (collectively the “Notes”) contain covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional indebtedness and issue preferred stock, pay dividends or make other distributions with respect to any equity interests, make certain investments or other restricted payments, create liens, sell assets, incur restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company, consolidate or merge with or into other companies or transfer all or substantially all of their assets, engage in transactions with affiliates, and enter into sale and leaseback transactions. The terms of the Indentures include customary events of default. The Credit Agreement contains customary events of default, including among others, non-payment of principal, interest, or other amounts when due, inaccuracy of representations and warranties, breach of covenants, cross default to certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control. The Credit Agreement also contains a covenant, applicable only to the Revolver, that the Company maintain a senior secured leverage ratio below 5.25:1.00 at any time when the aggregate principal amount of loans outstanding under the Revolver is greater than 35% of the commitments under the Revolver. The indenture governing the 2020 Unsecured Notes limits any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under such indenture) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA, as defined in the indenture, and limits the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 5.25 times the previous quarter’s annualized modified EBITDA. The indentures governing the 2023 Unsecured Notes and the 2025 Unsecured Notes limit any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under such indentures) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA (as defined in such indentures), and limit the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 6.00 times the previous quarter’s annualized modified EBITDA. The Company was in compliance with all covenants associated with its debt agreements as of December 31, 2015 . Guarantees The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future domestic restricted subsidiaries. The Notes were co-issued with Zayo Capital, which does not have independent assets or operations. Debt issuance costs In connection with the Credit Agreement (and subsequent amendments thereto), and the various Notes offerings, the Company incurred debt issuance costs of $99.5 million (net of extinguishments). These costs are being amortized to interest expense over the respective terms of the underlying debt instruments using the effective interest method, unless extinguished earlier, at which time the related unamortized costs are to be immediately expensed. Unamortized debt issuance costs of $23.2 million associated with the Company’s previous indebtedness were recorded as part of the loss on extinguishment of debt during Fiscal 2015 . The balance of debt issuance costs as of December 31, 2015 and June 30, 2015 was $66.2 million and $71.0 million, net of accumulated amortization of $33.3 million and $28.3 million, respectively. The amortization of debt issuance costs is included on the condensed consolidated statements of cash flows within the caption “Non-cash interest expense” along with the amortization or accretion of the premium and discount on the Company’s indebtedness and changes in the fair value of the Company’s interest rate derivatives. Interest expense associated with the amortization of debt issuance costs was $2.5 million and $5.0 million for the three and six months ended December 31, 2015 and $3.8 million and $7.5 million during the three and six months ended December 31, 2014 , respectively. Debt issuance costs are presented in the condensed consolidated balance sheets as a reduction to “Long-term debt, non-current”. Loss on extinguishment of debt In connection with the Note Redemption, the Company recorded an early redemption call premium of $23.8 million and recorded an expense of $7.1 million related to unamortized debt issuance costs associated with the notes redeemed. These expenses are included on the consolidated statements of operations during three and six months ended December 31, 2014. Interest rate derivatives On August 13, 2012, the Company entered into forward-starting interest rate swap agreements with an aggregate notional value of $750.0 million, a maturity date of June 30, 2017 , and a start date of June 30, 2013. There were no up-front fees for these agreements. The contract states that the Company shall pay a 1.67% fixed rate of interest for the term of the agreement beginning on the start date. The counterparty will pay to the Company the greater of actual LIBOR or 1.25% . The Company entered into the forward-starting swap arrangements to reduce the risk of increased interest costs associated with potential changes in LIBOR rates. Changes in the fair value of interest rate swaps are recorded in interest expense in the condensed consolidated statements of operations for the applicable period. The fair value of the interest rate swaps of $3.5 million and $4.1 million are included in “Other long term liabilities” in the Company’s condensed consolidated balance sheets as of December 31, 2015 and June 30, 2015 , respectively. During the three and six months ended December 31, 2015, respectively, $1.0 million and $0.6 million was recorded as a decrease in interest expense for the change in fair value of the interest rate swaps. During the three and six months ended December 31, 2014, respectively, $1.5 million and $(0.5) million was recorded as an increase/(decrease) in interest expense for the change in the fair value of the interest rate swaps. | (8) LONG-TERM DEBT As of June 30, 2015 and 2014, long-term debt was as follows (in millions): 2015 2014 Term Loan Facility due 2021 $ 1,646.8 $ 2,010.8 8.125% Senior Secured Notes due 2020 — 750.0 10.125% Senior Unsecured Notes due 2020 325.6 500.0 6.00% Senior Unsecured Notes Due 2023 1,430.0 — 6.375% Senior Unsecured Notes Due 2025 350.0 — Total debt obligations 3,752.4 3,260.8 Unamortized discount on Term Loan Facility (19.8 ) (20.6 ) Unamortized premium on 6.00% Senior Unsecured Notes 7.1 — Unamortized debt issuance costs (71.0 ) (89.4 ) Carrying value of debt 3,668.7 3,150.8 Less current portion (16.5 ) (20.5 ) Long-term debt, less current portion $ 3,652.2 $ 3,130.3 On July 2, 2012, the Company and Zayo Capital, Inc. (“Zayo Capital”) issued $750.0 million aggregate principal amount of 8.125% senior secured first-priority notes due 2020 (the “2020 Secured Notes”) and $500.0 million aggregate principal amount of 10.125% senior unsecured notes due 2020 (the “2020 Unsecured Notes”, and together with the 2020 Secured Notes, the “2020 Notes”). On July 2, 2012, the Company also entered into a $250.0 million senior secured revolving credit facility (the “Revolver”) and a $1,620.0 million senior secured term loan facility (the “Term Loan Facility”), both of which have been subsequently amended (the “Credit Agreement”). The Term Loan Facility was issued at a discount of $30.0 million and has a maturity date of July 2019. The issue discount is being amortized to interest expense over the term of the loan. The terms of the amended Term Loan Facility require the Company to make quarterly principal payments of $5.1 million plus an annual payment of up to 50% of excess cash flow, as determined in accordance with the Credit Agreement (no such payment was required during the years ended June 30, 2015 and 2014, respectively). A portion of the net proceeds from the Existing Notes and the Term Loan Facility, together with cash on hand and equity contributions (See Note 11 —Equity In connection with the debt extinguishment activities discussed above, the Company recognized an expense in July 2012 of $65.0 million associated with debt extinguishment costs, including a cash expense of $39.8 million associated with the payment of early redemption fees on the Company’s previous indebtedness and non-cash expenses of $17.0 million associated with the write-off of the Company’s unamortized debt issuance costs and $8.2 million associated with writing-off the net unamortized discount on the debt balances extinguished. On October 5, 2012, the Company and Zayo Capital entered into a second amendment (the “Second Amendment”) to the Credit Agreement governing its Term Loan Facility and Revolver. Under the terms of the Second Amendment, effective October 5, 2012, the interest rate on the Term Loan Facility was adjusted to bear an interest rate at LIBOR plus 4.0% (subject to a 5.25% floor), which represented a decrease of 187.5 basis points from the original Credit Agreement. The Second Amendment also reduced the interest rate on the Revolver by 187.5 basis points. On February 27, 2013, the Company and Zayo Capital entered into a Fourth Amendment (the “Fourth Amendment”) to the Company’s Credit Agreement. Under the terms of the Fourth Amendment, effective February 27, 2013, the interest rate on the Term Loan Facility was further adjusted to bear interest at LIBOR plus 3.5% (subject to a 4.5% floor). The amended terms represent a downward adjustment of 50 basis points on the spread and a further 25 basis point reduction minimum floor. Under the terms of the Fourth Amendment, the Revolver bore interest at LIBOR plus 3.00%, based on the Company’s current leverage ratio, which represented a 50 basis point reduction. The Fourth Amendment also amended certain terms and provisions of the Credit Agreement, including removing the senior secured and total leverage maintenance covenants and increasing the total leverage ratio required to be met in order to incur certain additional indebtedness from 5.00:1.00 to 5.25:1.00 as a multiple of EBITDA (as defined in the Credit Agreement). In connection with the aforementioned amendments, the Company incurred early redemption call premiums of $16.2 million and $16.1 million for the Second Amendment and Fourth Amendment, respectively. The early redemption call premiums were paid with cash on hand to the syndicate of creditors in the Term Loan Facility. Prior to the consummation of the amendments, the Company requested the consent of all creditors holding balances in the Term Loan Facility to the amended terms. $15.3 million and $15.0 million of the early call premium paid to consenting creditors in the Second and Fourth Amendments, respectively, were accounted for as additional debt issuance costs for the modified obligations during the year ended June 30, 2013, which are being amortized over the term of the Term Loan Facility using the effective interest method. The remaining call premium of $0.9 million and $1.1 million associated with the Second and Fourth Amendments, respectively, that was paid to non-consenting creditors has been recorded as a loss on extinguishment of debt on the consolidated statements of operations for the year ended June 30, 2013. Existing and/or new creditors replaced the non-consented commitments, such that the full amount of the Term Loan Facility’s commitments were replaced in both the Second and Fourth Amendments. In connection with the Second and Fourth Amendments, the Company recognized an expense of $12.2 million during the year ended June 30, 2013 associated with debt extinguishment costs. The loss on extinguishment of debt associated with the amendments includes the aforementioned early call premiums paid to non-consenting creditors, non-cash expense associated with the write off of unamortized debt issuance costs and issuance discounts on the debt balances accounted for as an extinguishment, and certain fees paid to third parties involved in the amendments. On November 26, 2013, the Company and Zayo Capital entered into a Fifth Amendment (the “Fifth Amendment”) to the Company’s Credit Agreement. Under the terms of the Fifth Amendment, the Term Loan Facility was increased by $150.0 million to $1,749.8 million and the interest rate was adjusted to LIBOR plus 3.0% with a minimum LIBOR rate of 1.0%. The amended terms represented a downward adjustment of 50 basis points on the interest rate from the Fourth Amendment. The interest rate on the Revolver was amended to LIBOR plus 2.75% (based on the Company’s then current leverage ratio), which represented a downward adjustment of 25 basis points on the interest rate from the Fourth Amendment. In connection with the Fifth Amendment, the Company did not incur a re-pricing premium. Also, in connection with the Fifth Amendment, the Company recognized an expense during the second quarter of Fiscal 2014 of $1.9 million associated with debt extinguishment costs, including cash expense of $1.0 million related to third party costs and non-cash expense of $0.9 million associated with the write-off of the Company’s unamortized debt issuance costs and discount on the Term Loan Facility accounted for as an extinguishment. The Company also incurred an additional $1.5 million in debt issuance costs in the second quarter of Fiscal 2014. On May 16, 2014, the Company and Zayo Capital Inc. entered into a Sixth Amendment (the “Sixth Amendment”) to the Credit Agreement. Per the terms of the Sixth Amendment, the Company’s Term Loan Facility was increased by $275.0 million to $2,015.9 million and bears interest at the existing rate of LIBOR plus 3.0 percent with a minimum LIBOR rate of 1.0 percent. The $275.0 million add-on was priced at 99.5 percent. No other terms of the Credit Agreement were amended. In connection with the Sixth Amendment, the Company incurred an additional $3.2 million in debt issuance costs and $1.4 million was recorded as a discount. On December 15, 2014, the Company redeemed $75.0 million of its outstanding 2020 Secured Notes at a price of 108.125% of the principal amount and $174.4 million of its outstanding 2020 Unsecured Notes at a price of 110.125% (collectively, the “December Notes Redemption”). As part of the Note Redemption, the Company recorded an early redemption call premium of $23.8 million which has been recorded as a loss on extinguishment of debt on the consolidated statements of operations in Fiscal 2015. On January 23, 2015, the Company and Zayo Capital (together “the Issuers”) completed a private offering (the “January Notes Offering”) of $700.0 million aggregate principal amount of 6.00% senior unsecured notes due in 2023 (the “2023 Unsecured Notes”). On March 9, 2015, the Issuers completed a private offering of an additional $730.0 million aggregate principal amount of 2023 Unsecured Notes at a premium of 1% (the “March Notes Offering”, and together with the January Notes Offering, the “2023 Notes Offerings”) resulting in aggregate gross proceeds for the 2023 Unsecured Notes of $1,437.3 million. The issue premium of $7.3 million on the March Notes Offerings is being accreted against interest expense over the term of the notes under the effective interest method. The 2023 Unsecured Notes bear interest at the rate of 6.00% per year, which is payable on April 1 and October 1 of each year, beginning on October 1, 2015. The 2023 Unsecured Notes will mature on April 1, 2023. The net proceeds from the January Notes Offering were used to fund the Latisys acquisition (see Note 3 – Acquisitions On April 17, 2015, the Company entered into a Seventh Amendment (the “Seventh Amendment”) to the Credit Agreement. Per the terms of the Seventh Amendment, the Revolver was increased by $200.0 million to $450.0 million, and its maturity date was extended to the earliest of (i) five years after the effective date of the Seventh Amendment, (ii) six months prior to the maturity date of the Company’s Term Loan Facility, subject to amendment thereof, and (iii) six months prior to the maturity date of the Company’s 2020 Unsecured Notes, subject to repayment or amendment thereof. The Seventh Amendment also increased the letter of credit commitment from $30.0 to $50.0 and provided that, in the event that the Term Loan Facility was amended or refinanced to remove all financial maintenance covenants, the Fixed Charge Coverage Ratio maintenance requirement would be replaced with a springing Senior Secured Leverage Ratio maintenance requirement applicable only to the Revolver. Further, pursuant to the Seventh Amendment, up to $50.0 of revolving loans and letters of credit may be denominated in or issued in, as applicable, Euros or British Pound Sterling. Further, pursuant to the Seventh Amendment, up to $50.0 million of revolving loans and letters of credit may be denominated in or issued in, as applicable, Euros or British Pound Sterling. On May 6, 2015, the Company and Zayo Capital issued $350.0 million aggregate principal amount of 6.375% senior unsecured notes due in 2025 (the “2025 Senior Unsecured Notes”). Interest on the 2025 Unsecured Notes is payable on May 15 and November 15 of each year, beginning on November 15, 2015. The 2025 Unsecured Notes will mature on May 15, 2025. The net proceeds from the 2025 Senior Unsecured Notes were used to repay $344.5 million of the Company’s Term Loan Facility. As a result of the repayment, the Company recorded a loss on extinguishment of debt of $8.4 million. On May 6, 2015, the Company entered into an Amendment and Restatement Agreement whereby the Credit Agreement was amended and restated in its entirety. The amended and restated Credit Agreement extended the maturity date of all of the outstanding term loans under the Term Loan Facility to May 6, 2021. The interest rate margins applicable to the Term Loan Facility were decreased by 25 basis points to LIBOR plus 2.75% with a minimum LIBOR of 1.0%. In addition, the amended and restated Credit Agreement removed the Fixed Charge Coverage Ratio covenant and replaced such covenant with a springing Senior Secured Leverage Ratio maintenance requirement applicable only to the Revolver, increased certain lien and debt baskets, and removed certain covenants related to collateral. Interest rates on the Term Loan Facility and Revolver as of June 30, 2015 were 3.75% and 3.0%, respectively. As of June 30, 2015, no amounts were outstanding under the Revolver. Standby letters of credit were outstanding in the amount of $9.2 million as of June 30 2015, leaving $440.8 million available under the Revolver as of June 30, 2015. The Revolver is subject to a i) fee per annum of 0.25% to 0.375% (based on the Company’s current leverage ratio) of the weighted-average unused capacity and ii) the undrawn amount of outstanding letters of credit backed by the Revolver are subject to a 0.25% fee per annum. Outstanding letters of credit backed by the Revolver accrue interest at a rate ranging from LIBOR plus 2.0% to LIBOR plus 3.0% per annum based upon the Company’s leverage ratio. The Revolver has a maturity date of January 2020. Debt covenants The indentures (the “Indentures”) governing the 2020 Unsecured Notes, the 2023 Unsecured Notes and the 2025 Unsecured Notes (collectively the “Notes”) contain covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional indebtedness and issue preferred stock; pay dividends or make other distributions with respect to any equity interests, make certain investments or other restricted payments, create liens, sell assets, incur restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company, consolidate or merge with or into other companies or transfer all or substantially all of their assets, engage in transactions with affiliates, and enter into sale and leaseback transactions. The terms of the Indentures include customary events of default. The Credit Agreement contains customary events of default, including among others, non-payment of principal, interest, or other amounts when due, inaccuracy of representations and warranties, breach of covenants, cross default to certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control. The Credit Agreement also contains a covenant, applicable only to the Revolver, that the Company maintains a senior secured leverage ratio below 5.25:1.00 at any time when the aggregate principal amount of loans outstanding under the Revolver is greater than 35% of the commitments under the Revolver. The Indentures governing the 2020 Unsecured Notes limit any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under the indentures) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA, as defined in the Indentures, and limit the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 5.25 times the previous quarter’s annualized modified EBITDA. The indentures governing the 2023 Unsecured Notes and the 2025 Unsecured Notes limit any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under such indentures) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA (as defined in the indentures), and limit the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 6.00 times the previous quarter’s annualized modified EBITDA. The Company was in compliance with all covenants associated with its debt agreements as of June 30, 2015 and 2014. Redemption rights At any time prior to May 15, 2018 (for the 2025 Unsecured Notes), April 1, 2018 (for the 2023 Unsecured Notes) and July 1, 2016 (for the 2020 Unsecured Notes) the Company may redeem all or part of the applicable Notes at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) accrued interest and a “make-whole” premium, which is a lump sum payment derived from a formula based on the net present value of future coupon payments that will not be paid because of the early redemption. On or after May 1, 2020 ( for the 2025 Unsecured Notes for the 2023 Unsecured Notes July 1, 2016 (for the 2020 Unsecured Notes) Year Redemption Price (2020 Unsecured Notes) 2016 105.063% 2017 102.531% 2018 and thereafter 100.000% Year Redemption Price (2023 Unsecured Notes) 2018 104.500% 2019 103.000% 2020 101.500% 2021 and thereafter 100.000% Year Redemption Price (2025 Unsecured Notes) 2020 103.188% 2021 102.125% 2022 101.063% 2023 and thereafter 100.000% The Company may purchase the Notes in open-market transactions, tender offers, or otherwise. The Company is not required to make any mandatory redemption or sinking fund payments with respect to the Notes. Aggregate future contractual maturities of long-term debt (excluding issue discounts and premiums) were as follows as of June 30, 2015 (in millions): Year Ended June 30, 2016 $ 16.5 2017 16.5 2018 16.5 2019 16.5 2020 16.5 Thereafter 3,669.9 Total $ 3,752.4 Guarantees The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future domestic restricted subsidiaries. The Notes were co-issued with Zayo Capital, which does not have independent assets or operations. Debt issuance costs In connection with the Credit Agreement (and subsequent amendments thereto), and the various Note offerings, the Company incurred debt issuance costs of $99.3 million (net of extinguishments). These costs are being amortized to interest expense over the respective terms of the underlying debt instruments using the effective interest method, unless extinguished earlier, at which time the related unamortized costs are to be immediately expensed. Unamortized debt issuance costs of $23.2 million, $0.7 million and $42.3 million associated with the Company’s previous indebtedness were recorded as part of the loss on extinguishment of debt during the years ended June 30, 2015, 2014 and 2013, respectively. The balance of debt issuance costs as of June 30, 2015 and June 30, 2014 was $71.0 million and $89.4 million, net of accumulated amortization of $28.3 million and $25.4 million, respectively. The amortization of debt issuance costs is included on the consolidated statements of cash flows within the caption “Non-cash interest expense” along with the amortization or accretion of the premium and discount on the Company’s indebtedness and changes in the fair value of the Company’s interest rate derivatives. Interest expense associated with the amortization of debt issuance costs was $13.9 million for the years ended June 30, 2015 and 2014 and $11.5 million during the year ended June 30, 2013. Debt issuance costs are presented in the consolidated balance sheets as a reduction to “Long-term debt, non-current”. Interest rate derivatives On August 13, 2012, the Company entered into forward-starting interest rate swap agreements with an aggregate notional value of $750.0 million, a maturity date of June 30, 2017, and a start date of June 30, 2013. There were no up-front fees for these agreements. The contract states that the Company shall pay a 1.67% fixed rate of interest for the term of the agreement beginning on the start date. The counter-party will pay to the Company the greater of actual LIBOR or 1.25%. The Company entered in to the forward-starting swap arrangements to reduce the risk of increased interest costs associated with potential changes in LIBOR rates. Changes in the fair value of interest rate swaps are recorded in interest expense in the consolidated statements of operations for the applicable period. The fair value of the interest rate swaps of $4.1 million and $2.0 million are included in “Other long term liabilities” in the Company’s consolidated balance sheet as of June 30, 2015 and 2014, respectively. During the year ended June 30, 2015, 2014 and 2013, $2.1 million, $4.6 million and $(2.6) were recorded as an increase/(decrease) in interest expense for the change in the fair value of the interest rate swaps. |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | (6) INCOME TAXES The Company, a limited liability company, is taxed at the Holdings level. All income tax balances resulting from the operations of Zayo Group, on a separate return basis, are reflected in these financial statements. The Company’s provision for income taxes from operations is summarized as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Current Income Taxes (in millions) Federal $ $ $ $ State Foreign — Total $ $ $ $ Deferred Income Taxes Federal $ $ $ $ State Foreign Total Total provision/(benefit) for income taxes $ $ $ $ The United States and foreign components of loss from operations before income taxes for the three and six months ended December 31, 2015 and 2014 are as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) United States $ $ $ $ Foreign Total $ $ $ $ The Company’s effective income tax rate differs from what would be expected if the federal statutory rate were applied to earnings before income taxes primarily because of certain expenses that represent permanent differences between book and tax expenses and deductions, such as the stock-based compensation expense related to the common units of Communications Infrastructure Investments, LLC (“CII”) that is recorded as an expense for financial reporting purposes but is not deductible for tax purposes (See Note 7 – Equity ). A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the three and six-month periods ended December 31, 2015 and 2014 is as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Expected benefit at the statutory rate $ $ $ $ Increase/(decrease) due to: Non-deductible stock-based compensation State income taxes benefit, net of federal benefit — Transactions costs not deductible for tax purposes Foreign tax rate differential Other, net Provision/(benefit) for income taxes $ $ $ $ Each interim period, management estimates the annual effective tax rate and applies that rate to its reported year-to-date earnings. The tax expense or benefit related to items for which management is unable to make reliable estimates or that are significant, unusual, or extraordinary items that will be separately reported, or reported net of their related tax effect, are individually computed and are recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws, tax rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgments, including but not limited to the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent differences, and the likelihood of realizing deferred tax assets generated in both the current year and prior years. The accounting estimates used to compute the interim provision for income taxes may change as new events occur, more experience is acquired, additional information is obtained, or the tax environment changes. | (9) INCOME TAXES The Company, a limited liability company, is taxed at the Holdings level. All income tax balances resulting from the operations of Zayo Group, on a separate return basis, are reflected in these financial statements. The Company’s (benefit)/provision for income taxes from operations are summarized as follows (in millions): The United States and foreign components of (loss)/benefit from operations before income taxes are as follows (in millions): Year Ended June 30, 2015 2014 2013 Current Income Taxes Federal $ 1.7 $ 6.3 $ — State 4.4 3.8 1.7 Foreign (1.6 ) 3.3 — Total $ 4.5 $ 13.4 $ 1.7 Deferred Income Taxes Federal $ (8.6 ) $ 26.3 $ (23.5 ) State (6.9 ) 1.2 (3.5 ) Foreign 2.3 (0.6 ) 3.5 Total (13.2 ) 26.9 (23.5 ) Total (benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) The United States and foreign components of loss from operations before income taxes are as follows (in millions): Year Ended June 30, 2015 2014 2013 United States $ (159.4 ) $ (127.8 ) $ (179.5 ) Foreign $ (4.4 ) $ (9.0 ) $ 15.8 Total $ (163.8 ) $ (136.8 ) $ (163.7 ) The Company’s effective income tax rate differs from what would be expected if the federal statutory rate were applied to earnings before income taxes primarily because of certain expenses that represent permanent differences between book and tax expenses and deductions, such as the stock-based compensation expense related to the Company’s CII common units that is recorded as an expense for financial reporting purposes but is not deductible for tax purposes. A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the years ended June 30, 2015, 2014 and 2013 are as follows (in millions): Year ended June 30, 2015 2014 2013 Expected benefit/provision at the statutory rate $ (57.3 ) $ (47.9 ) $ (57.1 ) Increase/(decrease) due to: Non-deductible stock-based compensation 59.4 96.5 35.6 State income taxes benefit, net of federal benefit (7.4 ) (6.3 ) (1.9 ) Transactions costs not deductible for tax purposes 0.7 0.8 1.3 Reversal of uncertain tax positions, net — (2.6 ) — State NOL adjustment — — 2.8 Change in effective tax rate (2.2 ) (0.3 ) — Change in valuation allowance — 1.3 — Foreign tax rate differential 0.6 1.0 (2.3 ) Other, net (2.5 ) (2.2 ) (0.2 ) (Benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (millions): June 30, 2015 2014 Deferred income tax assets Net operating loss carry forwards $ 434.0 $ 415.6 Alternate minimum tax credit carryforwards 8.4 6.3 Deferred revenue 243.5 190.7 Accrued expenses 27.9 22.4 Other liabilities 14.4 7.6 Reserves against accounts receivable 10.2 6.4 Other 17.4 2.1 Total deferred income tax assets 755.8 651.1 Valuation allowance (1.1 ) (2.2 ) Net deferred tax assets 754.7 648.9 Deferred income tax liabilities Property and equipment 468.9 374.4 Intangible assets 327.2 239.3 Debt issuance costs 18.8 27.2 Total deferred income tax liabilities 814.9 640.9 Net deferred income tax assets/(liabilities) $ (60.2 ) $ 8.0 As of June 30, 2015, the Company had $1,115.0 million of federal net operating loss ("NOL") carry forwards. It utilized approximately $95.9 million during Fiscal 2015. The Company has completed several acquisitions in which it acquired net operating loss tax attributes as part of the purchase. These acquisitions, however, were considered a "change in ownership within the meaning of Section 382 of the Internal Revenue Code and, as a result, such NOL carry forwards are subject to an annual limitation, reducing the amount available to offset income tax liabilities absent the limitation. Currently available NOL carry forwards as of June 30, 2015 are approximately $485.9 million. An additional $185.9 million will become available for use during fiscal year ended June 30, 2016. The Company's NOL carry forwards, if not utilized to reduce taxable income in future periods, will expire in various amounts beginning in 2020 and ending in 2032. As of June 30, 2015, the Company had approximately $11.6 million of foreign jurisdiction net operating loss carry forwards, primarily in France. The majority of these foreign jurisdiction net operating loss carry forwards do not expire. As of June 30, 2015, the Company had tax-effected state net operating loss carry forwards of approximately $38.7 million, which are subject to limitations on their utilization and have various expiration dates through 2032. Management believes it is more likely than not that it will utilize its net deferred tax assets to reduce or eliminate tax payments in future periods, with the exception of deferred tax assets related to a foreign subsidiary. The Company’s evaluation encompassed (i) a review of its recent history of taxable income for the past three years and (ii) a review of internal financial forecasts demonstrating its expected ability to fully utilize its deferred tax assets prior to expiration. Release of Accrual for Uncertain Tax Position During Fiscal 2014, the Company released an accrual of $2.6 million related to an uncertain tax position previously recognized in connection with the FiberNet acquisition upon settlement of the matter with the Internal Revenue Service. The uncertain tax position was associated with a deduction taken for accelerated vesting of restricted stock units. This reduced the Company's estimated effective tax rate for the fiscal year ended June 30, 2014. The remaining accrual was recorded as a reduction of the deferred tax assets associated with the Company's net operating loss carry forwards. Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s financial statements, and as a result of the substantial NOL carry forwards, are netted against the Company’s deferred tax asset balance in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): Year Ended June 30, 2014 Balance, beginning of year $ 6.4 Decreases (6.4 ) Balance, end of year $ — |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | (10) ACCRUED LIABILITIES Accrued liabilities included in current liabilities consisted of the following (in millions): Year Ended June 30, 2015 2014 Accrued compensation and benefits $ 19.4 $ 13.3 Accrued property and equipment purchases 54.7 46.2 Network expense accruals 77.2 79.2 Other accrued taxes 12.7 9.3 Accrued professional fees 3.4 3.9 Other accruals 15.0 20.4 Total $ 182.4 $ 172.3 |
Equity
Equity | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Equity [Abstract] | ||
Equity | (7) EQUITY Zayo Group was initially formed on May 4, 2007, and is a wholly-owned subsidiary of Holdings. Prior to October 16, 2014, Holdings was a wholly owned subsidiary of CII. CII was organized on November 6, 2006, and subsequently capitalized on May 7, 2007, with capital contributions from various institutional and founder investors. Cash, property, and service proceeds from the capitalization of CII were contributed to the Company, and the contributions are reflected in the Company’s member’s interest. During Fiscal 2015, there was a deemed modification to the Company’s stock compensation arrangements with employees and directors. The modification resulted in a reclassification of previously recorded stock-based compensation liability to member’s interest. During the six months ended December 31, 2015, the Company recorded an $87.6 million increase in member’s interest associated with stock-based compensation expense related to the Company’s equity classified stock-based compensation awards (See Note 8 – Stock-based Compensation ). Additionally, the Company recorded an increase to member’s interest of $5.1 million associated with a net tax benefit from stock-based compensation. The net tax benefit is a result of the stock-based compensation deduction for tax purposes exceeding the stock-based compensation expense recorded in the Company’s condensed consolidated statement of operations. As a result of this net benefit, the Company retained $0.6 million in cash during the six months ended December 31, 2015 that would have otherwise been paid in income taxes during the current period. The remaining $4.5 million net tax benefit allowed the Company to preserve an equal amount of its federal net operating loss carryforward balance. Under GAAP, the gross tax benefit recognized during the period of $7.9 million has been recorded on the condensed consolidated statement of cash flows as a cash inflow in the financing activities section and an offsetting outflow of $7.9 million has been recorded as a cash outflow in the cash provided by operating activities section. During the three months ended December 31, 2015 , the Company repurchased 726,327 shares of ZGH common stock for $17.5 million. The stock repurchase on behalf of the Company’s parent is included on the condensed consolidated statement of memb er’s equity as a Capital distribution to parent during the six months ended December 31, 2015. | (11) EQUITY Zayo Group was initially formed on May 4, 2007, and is a wholly-owned subsidiary of Holdings. Prior to October 16, 2014, Holdings was a wholly owned subsidiary of CII (See Note 1 – Business). CII was organized on November 6, 2006, and subsequently capitalized on May 7, 2007, with capital contributions from various institutional and founder investors. Cash, property, and service proceeds from the capitalization of CII were contributed to the Company, and the contributions are reflected in the Company’s member’s equity. During the years ended June 30, 2015, 2014 and 2013, Holdings contributed $385.0 million, $5.6 million and $344.0 million, respectively, in cash to the Company. During the year ended June 30, 2015 there was a deemed modification to the Company’s stock compensation arrangements with employees and directors. The modification resulted in a reclassification of previously recorded stock-based compensation liability to member’s interest (see Note 12 – Stock-Based Compensation As discussed in Note 3— Acquisitions, Prior to the spin-off of Onvoy to CII, Holdings was the taxable parent of the Company and Onvoy Voice Services, Inc. (“Onvoy”). Holdings allowed for the sharing of Holdings’ NOL carry forwards between the Company and Onvoy. To the extent that any entity utilized NOLs or other tax assets that were generated or acquired by the other entity, the entities would settle the related-party transfer of deferred tax asset associated with such NOLs and other deferred-tax transfers between the companies via an increase or decrease to the respective entity’s member’s equity. During the years ended June 30, 2014 and 2013 $6.0 million $5.3 million |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock-Based Compensation | (8) STOCK-BASED COMPENSATION The following table summarizes the Company’s stock-based compensation expense for liability and equity classified awards included on the condensed consolidated statements of operations. Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Included in: (in millions) Operating costs $ $ $ $ Selling, general and administrative expenses Total stock-based compensation expense $ $ $ $ CII common and preferred units $ $ $ $ Part A restricted stock units Part B restricted stock units Part C restricted stock units — — Total stock-based compensation expense $ $ $ $ CII Common and Preferred Units Prior to ZGH’s initial public offering (the “IPO”), the Company was given authorization by CII to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. In connection with ZGH’s IPO and the related amendment to the CII operating agreement, there was a deemed modification to the stock compensation arrangements with the Company’s employees and directors. As a result, previously issued common units which were historically accounted for as liability awards, became classified as equity awards. Prior to reclassifying the common unit liability to equity, the Company re-measured the fair value of the CII common units factoring in the change in fair value since September 30, 2014 and the change in fair value caused by the modification. The fair value of these previously vested common units was estimated to be $490.2 million on the modification date and this amount was recorded as an increase to additional-paid-in-capital during the year ended June 30, 2015 . The fair value of the unrecognized compensation expense associated with unvested CII common units is being recognized over the remaining vesting period of CII’s outstanding common units through May 15, 2017 . On October 9, 2014, the Company and CII’s board of managers approved a non-liquidating distribution by CII of shares of ZGH’s common stock held by CII to holders of CII vested common units. Employees and independent directors of the Company with vested CII common units received shares of ZGH’s common stock equal in value to the underlying value of their vested CII common units. The total number of shares of ZGH’s common stock that were distributed to CII common unit holders in connection with this non-liquidating distribution was 20,460,047 shares. Employees with unvested CII common units at the time of the IPO have and/or will continue to receive monthly distributions from CII of ZGH’s common stock as they vest under the original terms of the CII common unit grant agreements. A total of 6,353,302 shares of ZGH’s common stock are associated with unvested CII common units that have or will be distributed subsequent to the IPO date. In addition, CII has and may in the future be required to distribute additional shares of ZGH’s common stock to CII common unit holders on a quarterly basis based on ZGH’s stock price performance through June 30, 2016, subject to the existing vesting provisions of the CII common units. The shares to be distributed to the common unit holders are based on a pre-existing distribution mechanism, whose primary input is ZGH’s stock price at each subsequent measurement date. Any remaining shares of common stock owned by CII will be distributed to the existing CII preferred unit holders. The total number of shares of ZGH’s common stock that have or will be distributed to existing CII preferred or common unit holders subsequent to the IPO date is 10,294,867 shares. CII has issued preferred units of CII to certain of the Company’s executives and independent directors as compensation. In connection with the non-liquidating distribution by CII approved on October 9, 2014, the Company’s CEO and independent directors with vested CII preferred units received 256,265 shares of ZGH’s common stock equal to the underlying value of their vested CII preferred units. A total of 29,555 shares of ZGH’s common stock associated with CII preferred units that were unvested at the time of the IPO have been distributed subsequent to the IPO date. The valuation of the CII common units as of the IPO date was determined based on a Monte Carlo simulation. The Monte Carlo valuation analysis attempts to approximate the probability of certain outcomes by running multiple trial runs, called simulations, using random variables to generate potential future stock prices. This valuation technique was used to estimate the fair value associated with future distributions of common stock to CII common unit holders. The Monte Carlo simulation first projects the number of shares to be distributed by CII to the common unit holders at each subsequent measurement date based on stock price projections under each simulation. Shares attributable to unvested CII common units are subject to the existing vesting provisions of the CII common unit awards. The estimated future value of shares scheduled to be distributed by CII based on vesting provisions are calculated under each independent simulation. The present value of the number of shares of common stock to be distributed to common unit holders under each simulation is then computed, and the average of each simulation is the fair value of the Company’s common shares to be distributed by CII to the common unit holders. This value was then adjusted for prior non-liquidating distributions made by the Company to derive a value for CII common units by class and on per unit basis. These values were used to calculate the fair value of outstanding CII common units as of the IPO date. Various inputs and assumptions were utilized in the valuation method, including forfeiture behavior, vesting provisions, holding restrictions, peer companies’ historical stock volatility, and an appropriate risk-free rate. On June 13, 2014, the Company completed a spin-off of Onvoy, LLC and its subsidiaries (“OVS”) to CII. The value of the CII common units is derived from the value of CII’s investments in the Company and OVS. As the value derived from each of these investments is separately determinable and there is a plan in place to distribute the value associated with the investment in ZGH shares separate from the value derived from OVS, the two components are accounted for separately. The OVS component of the CII awards is adjusted to fair value each reporting period. On December 31, 2015, CII entered into an agreement to sell OVS to a third party. Based on the proposed sale price, the estimated fair value of OVS awards has been increased , resulting in an increase to stock based compensation expense and corresponding increase to member’s interest of $12.4 million during the three and six months ended December 31, 2015. Any proceeds from the sale to be distributed to the Company’s employees will be paid by CII. During the three and six months ended December 31, 2015, the Company recognized $26.4 million and $45.9 million, respectively, of stock-based compensation expense related to fair value adjustments and vesting of CII common and preferred units. During the three and six months ended December 31, 2014, the Company recognized a reduction of $13.3 million and an increase of $109.8 million, respectively, to stock-based compensation expense related to the vesting of CII common and preferred units. As of December 31, 2015, the unrecognized compensation associated with the ZGH component of unvested CII common units was $37.5 million. Performance Incentive Compensation Plan (“PCIP”) During October 2014, ZGH adopted the 2014 Performance Compensation Incentive Plan (“PCIP”). The PCIP includes incentive cash compensation (ICC) and equity (in the form of restricted stock units or “RSUs”). Grants under the PCIP RSU plans are made quarterly for all participants. The PCIP was effective on October 16, 2014 and will remain in effect for a period of 10 years (or through October 16, 2024) unless it is earlier terminated by ZGH’s Board of Directors. The PCIP has the following components: Part A Under Part A of the PCIP, participants, including the Company’s executives, are eligible to earn quarterly awards of RSUs. Each participant in Part A of the PCIP has a RSU target annual award value. Twenty-five percent of this annual target award value is allocated to each fiscal quarter. The final Part A value awarded to a participant for any fiscal quarter is determined by the Compensation Committee subsequent to the end of the respective performance period taking into account ZGH’s measured value creation for the quarter, as well as such other subjective factors that it deems relevant (including group and individual level performance factors). The number of Part A RSUs granted is calculated based on the final award value determined by the Compensation Committee divided by the average closing price of ZGH’s common stock over the last ten trading days of the measured performance period. Part A RSUs vest based upon continued employment through one year after the last day of the quarter in which the Part A RSU grant is made, and at that time will be exchanged for an equal number of shares in ZGH’s common stock. During the three and six months ended December 31, 2015 , the Company recognized $10.2 million and $20.2 million, respectively, of compensation expense associated with the vested portion of the Part A awards. During the three and six months ended December 31, 2014, the Company recognized $2.6 million of compensation expense associated with the vested portion of the Part A awards. The December 2015 and June 2015 quarterly awards were recorded as liabilities totaling $2.0 million and $1.9 million, as of December 31, 2015 and June 30, 2015 , respectively, as the awards represent an obligation denominated in a fixed dollar amount to be settled in a variable number of shares during the subsequent quarter. The quarterly stock-based compensation liability is included in “Other long-term liabilities” in the accompanying condensed consolidated balance sheets. Upon the issuance of the RSUs, the liability is re-measured and then reclassified to member’s interest, with a corresponding charge (or credit) to stock based compensation expense. The value of the remaining unvested RSUs is expensed ratably through the vesting date. At December 31, 2015 , the remaining unrecognized compensation cost to be expensed over the remaining vesting period for Part A awards is $18.7 million. The following table summarizes the Company’s Part A RSU activity for the six months ended December 31, 2015 : Number of Part A RSUs Weighted average grant-date fair value per share Weighted average remaining contractual term in months (in millions, except share data) Outstanding at July 1, 2015 $ Granted $ Vested $ Forfeited $ n/a Outstanding at December 31, 2015 $ Part B Under Part B of the PCIP, participants, including the Company’s executives, are awarded quarterly grants of RSUs. The number of the RSUs earned by the participants is based on ZGH’s stock price performance over a performance period of one year with the starting price being the average closing price over the last ten trading days of the quarter immediately prior to the grant and vest, assuming continuous employment through the end of the measurement period. The existence of a vesting provision that is associated with the performance of ZGH’s stock price is a market condition, which affects the determination of the grant date fair value. Upon vesting, RSUs earned convert to an equal number of shares of ZGH’s common stock. The following table summarizes the Company’s Part B RSU activity for the six months ended December 31, 2015 : Number of Part B RSUs Weighted average grant-date fair value per unit Weighted average remaining contractual term in months (in millions, except share data) Outstanding at July 1, 2015 $ Granted $ Vested $ Forfeited $ Outstanding at December 31, 2015 $ The table below reflects the total Part B RSUs granted during Fiscal 2016 and 2015 , the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into, and the grant date fair value per Part B RSU: During the Three months ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 (in millions, except per share data) Part B RSUs granted Maximum eligible shares of ZGH's stock Grant date fair value per Part B RSU $ $ $ $ $ The Company recognized stock-based compensation expense of $6.0 million and $22.4 million related to Part B awards for the three and six months ended December 31, 2015, respectively, and $4.7 million for the three and six months ended December 31, 2014. The grant date fair value of Part B RSU grants is estimated utilizing a Monte Carlo simulation. This simulation estimates the ten-day average closing stock price ending on the vesting date, the stock price performance over the performance period, and the number of common shares to be issued at the vesting date. Various assumptions are utilized in the valuation method, including the target stock price performance ranges and respective share payout percentages, the Company’s historical stock price performance and volatility, peer companies’ historical volatility and an appropriate risk-free rate. The aggregate future value of the grant under each simulation is calculated using the estimated per share value of the common stock at the end of the vesting period multiplied by the number of common shares projected to be granted at the vesting date. The present value of the aggregate grant is then calculated under each of the simulations, resulting in a distribution of potential present values. The fair value of the grant is then calculated based on the average of the potential present values. The remaining unrecognized compensation cost associated with Part B RSU grants is $8.2 million at December 31, 2015 . Part C Under Part C of the PCIP, independent directors of ZGH are eligible to receive quarterly awards of RSUs. Independent directors electing to receive a portion of their annual director fees in the form of RSUs are granted a set dollar amount of Part C RSUs each quarter. The quantity of Part C RSUs granted is based on the average closing price of ZGH’s common stock over the last ten trading days of the quarter ended immediately prior to the grant date and vest at the end of each quarter for which the grant was made. During the six months ended December 31, 2015, the Company’s independent directors were granted 18,826 Part C RSUs. Part C RSUs vest in the same quarter as issuance. During the three and six months ended December 31, 2015, the Company recognized $0.3 million and $0.5 million, respectively, of compensation expense associated with the Part C RSUs. | (12) STOCK-BASED COMPENSATION The following tables summarize the Company’s stock-based compensation expense for liability and equity classified awards included in the consolidated statements of operations (in millions). Year Ended June 30, Included in: 2015 2014 2013 Operating costs $ 23.3 $ 20.2 $ 7.7 Selling, general and administrative expenses 177.4 233.5 98.1 Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 CII Common units $ 156.4 $ 253.3 $ 104.9 CII Preferred units 0.4 0.4 0.9 Part A restricted stock units 12.6 — — Part B restricted stock units 31.3 — — Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 As of year ended June 30, 2015, there were 933,217 Part A RSUs outstanding and 1,249,873 Part B target RSUs outstanding. CII Common Units Prior to the Company’s IPO, the Company was given authorization by CII to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. In connection with the Company’s IPO and the related amendment to the CII operating agreement, there was a deemed modification to the stock compensation arrangements with the Company’s employees and directors. As a result, previously issued common units which were historically accounted for as liability awards, became classified as equity awards. Prior to reclassifying the common unit liability to equity, the Company re-measured the fair value of the CII common units factoring in the change in fair value since September 30, 2014 and the change in fair value caused by the modification. The fair value of these previously vested common units was estimated to be $490.2 million on the modification date and this amount is reflected in the Company’s consolidated statement of member’s equity as an increase to additional-paid-in-capital during the year ended June 30, 2015. The fair value of the unrecognized compensation expense associated with unvested CII common units is being recognized over the remaining vesting period of the Company’s outstanding common units through May 15, 2017. On October 9, 2014, the Company and CII’s board of managers approved a non-liquidating distribution by CII of shares of ZGH’s common stock held by CII to holders of CII vested common units. Employees and independent directors of the Company with vested CII common units received shares of ZGH’s common stock equal in value to the underlying value of their vested CII common units. The total number of shares of ZGH’s common stock that were distributed to CII common unit holders in connection with this non-liquidating distribution was 20,460,047 shares. Employees with unvested CII common units have and/or will continue to receive monthly distributions from CII of ZGH’s common stock as they vest under the original terms of the CII common unit grant agreements. A total of 6,353,302 shares of ZGH’s common stock associated with unvested CII common units that have or will be distributed subsequent to the IPO date. In addition, CII has and may in the future be required to distribute additional shares of ZGH’s common stock to CII common unit holder s on a quarterly basis through June 30, 2016 based on ZGH’s stock price performance, subject to the existing vesting provisions of the CII common units. The shares to be distributed to the common unit holders are based on a pre-existing distribution mechanism, whose primary input is ZGH’s stock price at each subsequent measurement date. Any remaining shares of common stock owned by CII will be distributed to the existing CII preferred unit holders. The total number of shares of ZGH’s common stock that have or will be distributed to existing CII preferred or common unit holders subsequent to the IPO date is 10,294,867 shares. The valuation of the CII common units as of the IPO date was determined based on a Monte Carlo simulation. The Monte Carlo valuation analysis attempts to approximate the probability of certain outcomes by running multiple trial runs, called simulations, using random variables to generate potential future stock prices. This valuation technique was used to estimate the fair value associated with future distributions of common stock to CII common unit holders. The Monte Carlo simulation first projects the number of shares to be distributed by CII to the common unit holders at each subsequent measurement date based on stock price projections under each simulation. Shares attributable to unvested CII common units are subject to the existing vesting provisions of the CII common unit awards. The estimated future value of shares scheduled to be distributed by CII based on vesting provisions are calculated under each independent simulation. The present value of the number of shares of common stock to be distributed to common unit holders under each simulation is then computed, and the average of each simulation is the fair value of ZGH’s common shares to be distributed by CII to the common unit holders. This value was then adjusted for prior non-liquidating distributions made by the Company to derive a value for CII common units by class and on per unit basis. These values were used to calculate the fair value of outstanding CII common units as of the IPO date. Various inputs and assumptions were utilized in the valuation method, including forfeiture behavior, vesting provisions, holding restrictions, peer companies’ historical volatility, and an appropriate risk-free rate. During the years ended June 30, 2015, 2014 and 2013, the Company recognized $156.4 million, $253.3 million and $104.9 million, respectively, of stock-based compensation expense related to vesting of CII common units. As of June 30, 2015, the unrecognized compensation associated with unvested CII common units was $70.2 million. CII Preferred Units CII has issued preferred units of CII to certain of the Company’s executives and independent directors as compensation. The terms of these preferred unit awards require the Company to record the awards as equity awards. The Company estimates the fair value of these equity awards on the grant date and recognizes the related expense over the vesting period of the awards. As these awards have been issued by CII to employees and directors of the Company as compensation, the related expense has been recorded by the Company in the accompanying consolidated statements of operations. The Company recognized stock-based compensation expense and a related increase to the Company’s member’s interest of $0.4 million, $0.4 million and $0.9 million for the years ended June 30, 2015, 2014, and 2013, respectively. In connection with the non-liquidating distribution by CII approved on October 9, 2014, the Company’s CEO and independent directors with vested CII preferred units received 256,265 shares of ZGH’s common stock equal to the underlying value of their vested CII preferred units. A total of 29,555 shares of ZGH’s common stock associated with unvested CII preferred units have or will be distributed subsequent to the IPO date. Performance Incentive Compensation Plan (“PCIP”) During October 2014, the Company adopted the 2014 Performance Compensation Incentive Plan (“PCIP”). The PCIP includes incentive cash compensation (ICC) and equity (in the form of restricted stock units or “RSUs”). Grants under the PCIP RSU plans are made quarterly for all participants. The PCIP was effective on October 16, 2014 and will remain in effect for a period of 10 years (or through October 16, 2024) unless it is earlier terminated by the Company’s Board of Directors. The PCIP has two components: Part A and Part B. Part A Under Part A of the PCIP, all full-time employees, including the Company’s executives, are eligible to earn quarterly awards of RSUs. Each participant in Part A of the PCIP will have a RSU annual award target value, which will be allocated to each fiscal quarter. The final Part A value awarded to a participant for any fiscal quarter is determined by the Compensation Committee subsequent to the end of the respective performance period taking into account the Company’s measured value creation for the quarter, as well as such other subjective factors that it deems relevant (including group and individual level performance factors). The number of Part A RSUs granted will be calculated based on the final award value determined by the Compensation Committee divided by the average closing price of ZGH’s common stock over the last ten trading days of the respective performance period. Part A RSUs will vest assuming continuous employment fifteen months subsequent to the end of the performance period. Upon vesting, the RSUs convert to an equal number of shares of ZGH’s common stock. During the years ended June 30, 2015 the Company recognized $12.6 million of compensation expense associated with the vested portion of the Part A awards. The June 30, 2015 quarterly award is recorded as a liability totaling $1.9 million as of June 30, 2015, as the awards represent an obligation denominated in a fixed dollar amount to be settled in a variable number of shares during the quarter ending September 30, 2015. Upon the issuance of the RSUs, the liability is re-measured and then reclassified to member’s interest, with a corresponding charge (or credit) to stock based compensation expense. The value of the remaining unvested RSUs is expensed ratably through the vesting date. At June 30, 2015, the remaining unrecognized compensation cost to be expensed over the remaining vesting period for Part A awards is $12.6 million. Part B Under Part B of the PCIP, participants, who include members of the Company’s senior management team, are awarded quarterly grants of RSUs. The number of the RSUs earned by the participants is based on ZGH’s stock price performance over a four fiscal quarter measurement period and vest, assuming continuous employment at the end of the measurement period. The existence of a vesting provision that is associated with the performance of ZGH’s stock price is a market condition, which affects the determination of the grant date fair value. Upon vesting, RSUs convert to an equal number of shares of ZGH’s common stock. The table below reflects the total Part B RSUs granted during each period presented, the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into shares of ZGH’s common stock and the grant date fair value per Part B RSU (in millions): During the three months ended June March 31, 2015 December 31, 2014 Part B RSUs granted 316,353 359,658 575,660 Maximum eligible shares of the Company's stock 1,490,023 1,381,086 2,210,534 Grant date fair value per Part B RSU $ 27.10 $ 24.36 $ 63.12 During years ended June 30, 2015, the Company recognized stock-based compensation expense of $31.3 million related to Part B awards. The grant date fair value of Part B RSU grants is estimated utilizing a Monte Carlo simulation. This simulation estimates the ten-day average closing stock price ending on the vesting date, the stock price performance over the performance period, and the number of common shares to be issued at the vesting date. Various assumptions are utilized in the valuation method, including the target stock price performance ranges and respective share payout percentages, the Company’s historical stock price performance and volatility, peer companies’ historical volatility and an appropriate risk-free rate. The aggregate future value of the grant under each simulation is calculated using the estimated per share value of the common stock at the end of the vesting period multiplied by the number of common shares projected to be granted at the vesting date. The present value of the aggregate grant is then calculated under each of the simulations, resulting in a distribution of potential present values. The fair value of the grant is then calculated based on the average of the potential present values. The remaining unrecognized compensation cost associated with Part B RSU grants is $21.9 million at June 30, 2015. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | (9) FAIR VALUE MEASUREMENTS The Company’s financial instruments consist of cash and cash equivalents, restricted cash, trade receivables, accounts payable, interest rate swaps, long-term debt and stock-based compensation liability. The carrying values of cash and cash equivalents, restricted cash, trade receivables and accounts payable approximated their fair values at December 31, 2015 and June 30, 2015 due to the short maturity of these instruments. The carrying value of the Company’s Notes, excluding debt issuance costs, reflects the original amounts borrowed, inclusive of unamortized premium, and was $2,112.3 million and $2,112.7 million as of December 31, 2015 and June 30, 2015 , respectively. Based on market interest rates for debt of similar terms and average maturities, the fair value of the Company's Notes as of December 31, 2015 and June 30, 2015 was estimated to be $2,034.0 million and $2,109.3 million, respectively. The Company’s fair value estimates associated with its Note obligations were derived utilizing Level 2 inputs – quoted prices for similar instruments in active markets. The carrying value of the Company’s Term Loan Facility, excluding debt issuance costs, reflects the original amounts borrowed, net of the unamortized discounts, and was $1,620.2 million and $1,627.0 million as of December 31, 2015 and June 30, 2015 , respectively. The Company’s Term Loan Facility accrues interest at variable rates based upon the one month, three month or six month LIBOR (with a LIBOR floor of 1.00% ) plus a spread of 2.75% . Since management does not believe that the Company’s credit quality has changed significantly since the date when the Term Loan Facility was last amended on May 6, 2015, its carrying amount approximates fair value. Excluding any offsetting effect of the Company’s interest rate swaps, a hypothetical increase in the applicable interest rate on the Company’s Term Loan Facility of one percentage point above the 1.0% LIBOR floor would increase the Company’s annual interest expense by approximately $16.4 million. The Company’s interest rate swaps are valued using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, forward rates, and credit ratings. Changes in the fair value of the interest rate swaps of $1.0 million and $0.6 million were recorded as an decrease to interest expense during the three and six months ended December 31, 2015, respectively, and $1.5 million and $(0.5) million were recorded as an increase/(decrease) to interest expense during the three and six months ended December 31, 2014, respectively . A hypothetical increase in LIBOR rates of 100 basis points would favorably increase the fair value of the interest rate swaps by approximately $9.5 million. As of December 31, 2015 and June 30, 2015 , there was no balance outstanding under the Company's Revolver. Financial instruments measured at fair value on a recurring basis are summarized below: Level December 31, 2015 June 30, 2015 Liabilities Recorded at Fair Value in the Financial Statements: (in millions) Interest rate swap Level 2 $ $ | (13) FAIR VALUE MEASUREMENTS The Company’s financial instruments consist of cash and cash equivalents, restricted cash, trade receivables, accounts payable, interest rate swaps, and long-term debt. The carrying values of cash and cash equivalents, restricted cash, trade receivables, and accounts payable approximated their fair values at June 30, 2015 and 2014, due to the short maturity of these instruments. The carrying value of the Company’s Notes, excluding debt issuance costs, reflects the original amounts borrowed, inclusive of unamortized premium was $2,112.7 million and $1,250.0 million as of June 30, 2015 and 2014, respectively. Based on market interest rates for debt of similar terms and average maturities, the fair value of the Company's Notes as of June 30, 2015 and 2014 was estimated to be $2,109.3 million and $1,294.8 million, respectively. The Company’s fair value estimates associated with its Note obligations were derived utilizing Level 2 inputs – quoted prices for similar instruments in active markets. The carrying value of the Company’s Term Loan Facility, excluding debt issuance costs, reflects the original amounts borrowed, net of the unamortized discounts was $1,627.0 million and $1,990.2 million as of June 30, 2015 and 2014, respectively. The Company’s Term Loan Facility accrues interest at variable rates based upon the one month, three month or six month LIBOR (with a LIBOR floor of 1.00%) plus a spread of 2.75%. Since management does not believe that the Company’s credit quality has changed significantly since the date when the Term Loan Facility last amended on May 6, 2015, its carrying amount approximates fair value. Excluding any offsetting effect of the Company’s interest rate swaps, a hypothetical increase in the applicable interest rate on the Company’s term loan of one percentage point above the LIBOR floor would increase the Company’s annual interest expense by approximately The Company’s interest rate swaps are valued using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, forward rates, and credit ratings. Changes in the fair value of the interest rate swaps of As of June 30, 2015 and 2014, there is no balance currently outstanding under the Company's Revolver. Financial instruments measured at fair value on a recurring basis are summarized below (in millions): Level June 30, 2015 June 30, 2014 Liabilities Recorded at Fair Value in the Financial Statements: Interest rate swap Level 2 $ 4.1 $ 2.0 Prior to the deemed modification of the Company’s stock-based compensation arrangements (See Note 12 – Stock-based Compensation), |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments And Contingencies | (10) COMMITMENTS AND CONTINGENCIES Purchase commitments At December 31, 2015 , the Company was contractually committed for $241.2 million of capital expenditures for construction materials and purchases of property and equipment. A majority of these purchase commitments are expected to be satisfied in the next twelve months. These purchase commitments are primarily success based; that is, the Company has executed customer contracts that support the future capital expenditures. Contingencies In the normal course of business, the Company is party to various outstanding legal proceedings, asserted and unasserted claims, and carrier disputes. In the opinion of management, the ultimate disposition of these matters, both asserted and unasserted, will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. | (14) COMMITMENTS AND CONTINGENCIES Capital Leases Future contractual payments under the terms of the Company’s capital lease obligations were as follows (in millions): Year Ended June 30, 2016 $ 6.4 2017 7.0 2018 5.6 2019 5.0 2020 3.8 Thereafter 17.3 Total minimum lease payments 45.1 Less amounts representing interest (12.4 ) Less current portion (4.4 ) Capital lease obligations, non-current $ 28.3 Operating Leases The Company leases office space, warehouse space, network assets, switching and transport sites, points of presence and equipment under non-cancelable operating leases. Lease expense was $125.3 million, $90.1 million, and $87.2 million for the years ended June 30, 2015, 2014 and 2013, respectively. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases. When the straight-line expense recorded exceeds the cash outflows during the respective period, the Company records a deferred lease obligation on the consolidated balance sheets and amortizes the deferred rent over the terms of the respective leases. Minimum contractual lease payments due under the Company’s long-term operating leases are as follows (in millions): Year Ended June 30, 2016 $ 119.3 2017 86.9 2018 75.4 2019 62.7 2020 48.9 Thereafter 280.7 $ 673.9 Lease Termination Costs In connection with integration activities associated with acquisitions completed during Fiscal 2012 and 2013, the Company completed an analysis of existing and acquired facilities leases and determined that certain facilities under lease would not be used by the Company in the future. During the fourth quarter of 2013, the Company recorded a charge for lease termination costs totaling $10.4 million related to exit activities initiated for unutilized space associated with leased office and technical facilities, which was partially offset by a benefit related to the release of associated rent escalation accrual in the amount of $0.2 million. The net $10.2 million charge has been included in operating costs and selling, general and administrative expenses for Fiscal 2013. As of June 30, 2015 and 2014, the remaining lease termination obligation associated with these facilities was $6.3 million and $8.1 million, respectively, which is recorded net of anticipated sublease income. The Company periodically re-evaluates its assumptions used to estimate this obligation and may record adjustments prospectively as facts or circumstances change related to the utilized space associated with leased facilities. Purchase Commitments At June 30, 2015, the Company was contractually committed for $226.4 million of capital expenditures for construction materials and purchases of property and equipment. A majority of these purchase commitments are expected to be satisfied in the next twelve months. These purchase commitments are primarily success based; that is, the Company has executed customer contracts that support the future capital expenditures. Outstanding Letters of Credit As of June 30, 2015, the Company had $9.2 million in outstanding letters of credit, which were primarily entered into in connection with various lease agreements. Contingencies In the normal course of business, the Company is party to various outstanding legal proceedings, asserted and unasserted claims, and carrier disputes. In the opinion of management, the ultimate disposition of these matters, both asserted and unasserted, will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | (11) RELATED PARTY TRANSACTIONS On June 13, 2014, the Company completed a spin-off of OVS to CII (see Note 7 – Equity ). CII holds approximately 4% of ZGH’s outstanding common stock at December 31, 2015. The Company continues to have ongoing contractual relationships with OVS, whereby the Company provides OVS and its subsidiaries with bandwidth capacity and OVS provides the Company and its subsidiaries with voice services. The contractual relationships are based on agreements that were entered into at estimated market rates. Subsequent to the spin-off date, transactions with OVS are included in the Company’s results of operations. The following table represents the revenue and expense transactions the Company recorded with OVS for the periods presented: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenues $ $ $ $ Operating costs $ $ $ $ As of December 31, 2015 and June 30, 2015 , the Company had outstanding balances of $0.5 million and $0.6 million, respectively, due from OVS. Dan Caruso, the Company’s Chief Executive Officer and Chairman of the Board, is a party to an aircraft charter (or membership) agreement through his affiliate, Bear Equity LLC, for business and personal travel. Under the terms of the charter agreement, all fees for the use of the aircraft are effectively variable in nature. For his business travel on behalf of the Company, Mr. Caruso is reimbursed for his use of the aircraft subject to quarterly and annual maximum reimbursement thresholds approved by the Company's Nominating and Governance Committee. During the three and six months ended December 31, 2015 the Company reimbursed Mr. Caruso $0.2 million and $0.3 million, respectively, and during the three and six months ended December 31, 2014 reimbursed $0.2 million and $0.6 million, respectively, for his business use of the aircraft. On June 28, 2012, Matt Erickson, the President and COO of Global Sales & Customer Success, purchased $0.6 million in aggregate principal amount of 2020 Unsecured Notes at the offering price for such notes. Mr. Erickson qualifies as an “accredited investor” (as defined in Rule 501 under the Securities Act), and this purchase was on terms available to other investors. On December 15, 2014, in connection with the Note Redemption, approximately $0.2 million of Mr. Erickson’s notes were redeemed, and as of December 31, 2015, the principal amount of 2020 Unsecured Notes held by Mr. Erickson was $0.4 million. | (15) RELATED-PARTY TRANSACTIONS The Company has ongoing contractual relationships with Onvoy, LLC and its subsidiaries (“OVS”). OVS is wholly owned by CII and provides voice and managed services. The Company provides OVS and its subsidiaries with bandwidth capacity, and OVS provides the Company and its subsidiaries with voice services. The contractual relationships are based on agreements that were entered into at estimated market rates. The following table represents the revenue and expense transactions the Company recorded with OVS (in millions): Year Ended June 30, 2015 2014 2013 Revenues $ 6.9 $ 7.0 6.6 Operating costs $ 1.0 $ 1.6 1.5 As of June 30, 2015 and June 30, 2014, the Company had a balance due from OVS in the amount of $0.6 million and $0.1 million, respectively. As of June 30, 2015, the Company had a balance due to ZGH of $1.3 million related to certain expenses of the Company that were paid by ZGH. As discussed in Note 11 – Equity Dan Caruso, the Company’s Chief Executive Officer and Chairman of the Board is a party to an aircraft charter (or membership) agreement through his affiliate, Bear Equity LLC, for business and personal travel. Under the terms of the charter agreement, all fees for the use of the aircraft are effectively variable in nature. For his business travel on behalf of the Company, Mr. Caruso is reimbursed for his use of the aircraft subject to quarterly and annual maximum reimbursement thresholds approved by the Company's Nominating and Governance Committee. During the years ended June 30, 2015 and 2014, respectively, the Company reimbursed Mr. Caruso $0.7 million and $0.1 million for his business use of the aircraft. On June 28, 2012, Matt Erickson, the President of Zayo Physical Infrastructure, purchased $0.6 million in aggregate principal amount of the Company’s 10.125% 2020 Unsecured Notes at the offering price for such notes. Mr. Erickson qualifies as an “accredited investor” (as defined in Rule 501 under the Securities Act), and this purchase was on terms available to other investors. On December 15, 2015, approximately $0.2 million of Mr. Erickson’s notes were redeemed as part of the pro rata redemption of the 2020 Unsecured Notes following the ZGH initial public offering, and as of June 30, 2015, the principal amount of notes held by Mr. Erickson was $0.4 million. |
Segment Reporting
Segment Reporting | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||
Segment Reporting | (12) SEGMENT REPORTING The Company uses the management approach to determine the segment financial information that should be disaggregated and presented separately in the Company's notes to its financial statements. The management approach is based on the manner by which management has organized the segments within the Company for making operating decisions, allocating resources, and assessing performance. As the Company has increased in scope and scale, it has developed its management and reporting structure to support this growth. The Company’s dark fiber solutions, network connectivity, colocation and cloud infrastructure and other services are comprised of various related product groups generally defined around the type of service the customer is buying, referred to as Strategic Product Groups ("SPG" or "SPGs"). Each SPG is responsible for the revenue, costs and associated capital expenditures of their respective services. The SPGs enable sales, make pricing and product decisions, engineer networks and deliver services to customers, and support customers for their specific telecom and Internet infrastructure services. With the continued increase in the Company’s scope and scale, effective October 1, 2015, the Company's chief operating decision maker ("CODM"), the Company's Chief Executive Officer, implemented certain organizational changes to the management and operation of the business that directly impacts how the CODM makes resource allocation decisions and manages the Company. The change in structure had the impact of establishing a new reportable segment and re-aligning the Company’s existing SPGs to the revised reportable segments. Prior to this change, the operating segments were reported as Physical Infrastructure, which included the Company’s Dark Fiber, MIG and zColo SPGs, Cloud and Connectivity, which included the Company’s Waves, SONET, Ethernet, IP and Cloud SPGs, and Other, which primarily included ZPS. The new structure has removed the zColo and Cloud SPGs out of the Physical Infrastructure and Cloud and Connectivity reporting segments, respectively, creating a new reportable segment named Zayo Colocation and Cloud Infrastructure. The Dark Fiber and MIG SPGs are now reported as Dark Fiber Solutions operating segment, and Ethernet, IP, Waves, and SONET, are now reported in the Network Connectivity operating segment. SPGs report directly to the reportable segment managers who are responsible for the operations and financial results for the Dark Fiber Solutions, Network Connectivity, Colocation and Cloud Infrastructure, and Other reportable segments (collectively, the “Revised Segments”). The Revised Segment managers report directly to the CODM, and it is the financial results of those segments that are evaluated and drive the resource allocation decisions. The Company’s Revised Segments are further described below: Dark Fiber Solutions . Through the Dark Fiber Solutions segment, the Company provides raw bandwidth infrastructure to customers that require more control of their internal networks. These services include dark fiber and mobile infrastructure (fiber-to-the-tower and small cell). Dark fiber is a physically separate and secure, private platform for dedicated bandwidth. The Company leases dark fiber pairs (usually 2 to 12 total fibers) to its customers, who “light” the fiber using their own optronics. The Company’s mobile infrastructure services provide direct fiber connections to cell towers, small cells, hub sites, and mobile switching centers. Dark Fiber Solutions customers include carriers and other communication service providers, Internet service providers, wireless service providers, major media and content companies, large enterprises, and other companies that have the expertise to run their own fiber optic networks or require interconnected technical space. The contract terms in the Dark Fiber Solutions segment tend to range from three to twenty years. Network Connectivity . The Network Connectivity segment provides bandwidth infrastructure solutions over the Company’s metro, regional, and long-haul fiber networks where it uses optronics to light the fiber and the Company’s customers pay for access based on the amount and type of bandwidth they purchase. The Company’s services within this segment include wavelength, Ethernet, IP and SONET. The Company targets customers who require a minimum of 10G of bandwidth across their networks. Network Connectivity customers include carriers, financial services companies, healthcare, government institutions, education institutions and other enterprises. The contract terms in this segment tend to range from two to five years. Colocation and Cloud Infrastructure . The Colocation and Cloud Infrastructure segment provides data center infrastructure solutions to a broad range of enterprise, carrier, content and cloud customers. The Company’s services within this segment include colocation, interconnection, cloud, hosting and managed services, such as security and remote hands offerings. Solutions range in size from single cabinet and server support to comprehensive international outsourced IT infrastructure environments. The Company’s datacenters also support a large component of the Company’s networking equipment for the purpose of aggregating and distributing data, voice, Internet, and video traffic. The contract terms in this segment tend to range from two to five years Other . The Other segment is primarily comprised of ZPS. ZPS provides network and technical resources to customers in designing, acquiring and maintaining their networks. Services are typically provided for a term of one year for a fixed recurring monthly fee in the case of network and on an hourly basis for technical resources (usage revenue). Effective October 1, 2015 revenues for all of the Company’s products are included in one of the Company’s segments. This segment presentation has been recast for all prior periods presented for comparability. The results of operations for each segment include an allocation of certain indirect costs and corporate related costs, including overhead and third party-financed debt. The allocation is based on a percentage that represents management’s estimate of the relative burden each segment bears of indirect and corporate costs. Management has evaluated the allocation methods utilized to allocate these costs and determined they are systematic and rational. Identifiable assets for each reportable segment are reconciled to total consolidated assets including unallocated corporate assets and intersegment eliminations. Unallocated corporate assets consist primarily of cash and deferred taxes. Segment Adjusted EBITDA Segment Adjusted EBITDA is the primary measure used by the Company’s CODM to evaluate segment operating performance. The Company defines Segment Adjusted EBITDA as earnings from operations before interest, income taxes, depreciation and amortization (“EBITDA”) adjusted to exclude acquisition or disposal-related transaction costs, losses on extinguishment of debt, stock-based compensation, unrealized foreign currency gains (losses) on intercompany loans, and non-cash income (loss) on equity and cost method investments. The Company uses Segment Adjusted EBITDA to evaluate operating performance, and this financial measure is among the primary measures used by management for planning and forecasting of future periods. The Company believes that the presentation of Segment Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management and facilitates comparison of the Company’s results with the results of other companies that have different financing and capital structures. Segment Adjusted EBITDA results, along with other quantitative and qualitative information, are also utilized by the Company and its Compensation Committee for purposes of determining bonus payouts to employees. Segment Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results from operations and operating cash flows as reported under GAAP. For example, Segment Adjusted EBITDA: · does not reflect capital expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments; · does not reflect changes in, or cash requirements for, working capital needs; · does not reflect the significant interest expense, or the cash requirements necessary to service the interest payments, on the Company’s debt; and · does not reflect cash required to pay income taxes. The Company’s computation of Segment Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate segment Adjusted EBITDA in the same fashion . As of and for the Three months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of and for the Three months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of June 30, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Total assets $ $ $ $ $ $ Reconciliation from Total Segment Adjusted EBITDA to net loss from operations: Three months ended December 31, 2015 2014 (in millions) Total Segment Adjusted EBITDA $ $ Interest expense Depreciation and amortization expense Transaction costs Stock-based compensation Loss on extinguishment of debt — Unrealized foreign currency loss on intercompany loans Non-cash loss on investments Income/(loss) from operations before income taxes $ $ Six months ended December 31, 2015 2014 (in millions) Total Segment Adjusted EBITDA $ $ Interest expense Depreciation and amortization expense Transaction costs Stock-based compensation Loss on extinguishment of debt — Unrealized foreign currency loss on intercompany loans Non-cash loss on investments Income/(loss) from operations before income taxes $ $ | (16) SEGMENT REPORTING The Company uses the management approach to determine the segment financial information that should be disaggregated and presented separately in the Company's notes to its financial statements. The management approach is based on the manner by which management has organized the segments within the Company for making operating decisions, allocating resources, and assessing performance. As the Company has increased in scope and scale, it has developed its management and reporting structure to support this growth. The Company's dark fiber solutions, network connectivity, colocation and cloud infrastructure and other services are comprised of various related product groups generally defined around the type of service the customer is buying, referred to as Strategic Product Groups ("SPG" or "SPGs"). Each SPG is responsible for the revenue, costs and associated capital expenditures of their respective services. The SPGs enable sales, make pricing and product decisions, engineer networks and deliver services to customers, and support customers for their specific telecom and Internet infrastructure services. With the continued increase in the Company's scope and scale, effective October 1, 2015, the Company's chief operating decision maker ("CODM"), the Company's Chief Executive Officer, implemented certain organizational changes to the management and operation of the business that directly impacts how the CODM makes resource allocation decisions and manages the Company. The change in structure had the impact of establishing a new reportable segment and re-aligning the Company's existing SPGs to the revised reportable segments. Prior to this change, the operating segments were reported as Physical Infrastructure, which included the Company's Dark Fiber, MIG and zColo SPGs, Cloud and Connectivity, which included the Company's Waves, SONET, Ethernet, IP and Cloud SPGs, and Other, which primarily included ZPS. The new structure has removed the zColo and Cloud SPGs out of the Physical Infrastructure and Cloud and Connectivity reporting segments, respectively, creating a new reportable segment named Zayo Colocation and Cloud Infrastructure. The Dark Fiber and MIG SPGs are now reported as Dark Fiber Solutions operating segment, and Ethernet, IP, Waves, and SONET, are now reported in the Network Connectivity operating segment. SPGs report directly to the reportable segment managers who are responsible for the operations and financial results for the Dark Fiber Solutions, Network Connectivity, Colocation and Cloud Infrastructure, and Other reportable segments (collectively, the "Revised Segments"). The Revised Segment managers report directly to the CODM, and it is the financial results of those segments that are evaluated and drive the resource allocation decisions. The Company's Revised Segments are further described below: Dark Fiber Solutions. Through the Dark Fiber Solutions segment, the Company provides raw bandwidth infrastructure to customers that require more control of their internal networks. These services include dark fiber and mobile infrastructure (fiber-to-the-tower and small cell). Dark fiber is a physically separate and secure, private platform for dedicated bandwidth. The Company leases dark fiber pairs (usually 2 to 12 total fibers) to its customers, who "light" the fiber using their own optronics. The Company's mobile infrastructure services provide direct fiber connections to cell towers, small cells, hub sites, and mobile switching centers. Dark Fiber Solutions customers include carriers and other communication service providers, Internet service providers, wireless service providers, major media and content companies, large enterprises, and other companies that have the expertise to run their own fiber optic networks or require interconnected technical space. The contract terms in the Dark Fiber Solutions segment tend to range from three to twenty years. Network Connectivity. The Network Connectivity segment provides bandwidth infrastructure solutions over the Company's metro, regional, and long-haul fiber networks where it uses optronics to light the fiber and the Company's customers pay for access based on the amount and type of bandwidth they purchase. The Company's services within this segment include wavelength, Ethernet, IP and SONET. The Company targets customers who require a minimum of 10G of bandwidth across their networks. Network Connectivity customers include carriers, financial services companies, healthcare, government institutions, education institutions and other enterprises. The contract terms in this segment tend to range from two to five years. Colocation and Cloud Infrastructure. The Colocation and Cloud Infrastructure segment provides data center infrastructure solutions to a broad range of enterprise, carrier, content and cloud customers. The Company's services within this segment include colocation, interconnection, cloud, hosting and managed services, such as security and remote hands offerings. Solutions range in size from single cabinet and server support to comprehensive international outsourced IT infrastructure environments. The Company's datacenters also support a large component of the Company's networking equipment for the purpose of aggregating and distributing data, voice, Internet, and video traffic. The contract terms in this segment tend to range from two to five years. Other. The Other segment is primarily comprised of ZPS. ZPS provides network and technical resources to customers in designing, acquiring and maintaining their networks. Services are typically provided for a term of one year for a fixed recurring monthly fee in the case of network and on an hourly basis for technical resources (usage revenue). Effective October 1, 2015 revenues for all of the Company's products are included in one of the Company's segments. This segment presentation has been recast for all prior periods presented for comparability. The results of operations for each segment include an allocation of certain indirect costs and corporate related costs, including overhead and third party-financed debt. The allocation is based on a percentage that represents management's estimate of the relative burden each segment bears of indirect and corporate costs. Management has evaluated the allocation methods utilized to allocate these costs and determined they are systematic and rational. Identifiable assets for each reportable segment are reconciled to total consolidated assets including unallocated corporate assets and intersegment eliminations. Unallocated corporate assets consist primarily of cash and deferred taxes. Segment Adjusted EBITDA is the primary measure used by the Company's CODM to evaluate segment operating performance. The Company defines Segment Adjusted EBITDA as earnings from operations before interest, income taxes, depreciation and amortization ("EBITDA") adjusted to exclude acquisition or disposal-related transaction costs, losses on extinguishment of debt, stock-based compensation, unrealized foreign currency gains (losses) on intercompany loans, and non-cash income (loss) on equity and cost method investments. The Company uses Segment Adjusted EBITDA to evaluate operating performance, and this financial measure is among the primary measures used by management for planning and forecasting of future periods. The Company believes that the presentation of Segment Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management and facilitates comparison of the Company's results with the results of other companies that have different financing and capital structures. Segment Adjusted EBITDA results, along with other quantitative and qualitative information, are also utilized by the Company and its Compensation Committee for purposes of determining bonus payouts to employees. Segment Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company's results from operations and operating cash flows as reported under GAAP. For example, Segment Adjusted EBITDA: • does not reflect capital expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments; • does not reflect changes in, or cash requirements for, working capital needs; • does not reflect the significant interest expense, or the cash requirements necessary to service the interest payments, on the Company's debt; and • does not reflect cash required to pay income taxes. The Company's computation of Segment Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate segment Adjusted EBITDA in the same fashion. For the year ended June 30, 2015 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 531.3 648.0 144.6 23.2 — 1,347.1 Segment Adjusted EBITDA 364.3 339.2 73.8 5.3 — 782.6 Total assets 2,848.9 1,807.7 1,013.7 35.0 388.7 6,094.0 Capital expenditures, net of stimulus grant reimbursements 279.7 195.1 55.4 0.2 — 530.4 For the year ended June 30, 2014 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 419.8 606.2 75.6 28.1 — 1,129.7 Segment Adjusted EBITDA 288.2 326.7 37.4 8.0 — 660.3 Total assets 2,714.6 1,739.1 157.9 43.1 326.2 4,980.9 Capital expenditures, net of stimulus grant reimbursements 181.0 151.6 28.2 — — 360.8 For the year ended June 30, 2013 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 358.8 570.5 54.2 27.8 (0.3 ) 1,011.0 Segment Adjusted EBITDA 250.7 278.3 25.4 6.2 (0.1 ) 560.5 Total assets 2,213.2 1,685.5 98.3 32.4 122.7 4,152.1 Capital expenditures, net of stimulus grant reimbursements 165.8 143.0 14.5 — — 323.3 For the year ended June 30, 2015 2014 2013 (in millions) Total Segment Adjusted EBITDA 782.6 660.3 560.5 Interest expense (214.0 ) (203.5 ) (202.5 ) Depreciation and amortization expense (406.2 ) (338.2 ) (324.5 ) Transaction costs (5.9 ) (4.5 ) (14.2 ) Stock-based compensation (200.7 ) (253.7 ) (105.8 ) Loss on extinguishment of debt (94.3 ) (1.9 ) (77.3 ) Unrealized foreign currency gain/(loss) (24.4 ) 4.7 0.1 Non-cash loss on investments (0.9 ) — — Net loss from continuing operations before provision for income taxes (163.8 ) (136.8 ) (163.7 ) The following is a summary of geographical information (in millions): For the year ended June 30, 2015 2014 2013 Revenue from external customers: United States 1,193.5 1,059.3 953.1 United Kingdom 119.0 70.3 57.5 Japan — 0.1 0.4 France 34.6 — — Total Revenue 1,347.1 1,129.7 1,011.0 Long-lived assets: United States 3,848.0 3,140.2 2,995.3 United Kingdom 405.3 429.9 120.2 Japan 0.3 0.3 — France 48.7 — — Total Long-lived assets 4,302.3 3,570.4 3,115.5 The Company includes all non-current assets, except for goodwill in its long-lived assets. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Condensed Consolidating Financial Information [Abstract] | ||
Condensed Consolidating Financial Information | (13) CONDENSED CONSOLIDATING FINANCIAL INFORMATION As discussed Note 5 – Long-Term Debt , as of December 31, 2015, the Company has outstanding $325.6 million 2020 Unsecured Notes, $1,430.0 million 2023 Unsecured Notes and $350.0 million 2025 Senior Unsecured Notes. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future domestic restricted subsidiaries. Zayo Capital does not have independent assets or operations. The non-guarantor subsidiaries consist of the foreign subsidiaries that were acquired in conjunction with the Company's acquisitions. The accompanying condensed consolidating financial information has been prepared and is presented to display the components of the Company’s balance sheets, statements of operations and statements of cash flows in a manner that allows an existing or future holder of the Company’s Notes to review and analyze the current financial position and recent operating results of the legal subsidiaries that guarantee the Company’s debt obligations. The operating activities of the separate legal entities included in the Company’s consolidated financial statements are interdependent. The accompanying condensed consolidating financial information presents the results of operations, financial position and cash flows of each legal entity. Zayo Group and its guarantors provide services to each other during the normal course of business. These transactions are eliminated in the consolidated results of operations of the Company. Activity related to income taxes is included at the issuer, or Zayo Group level, and the Company's non-guarantor subsidiaries and is not allocated to the Company's guarantor subsidiaries in the condensed consolidated financial information presented below. Condensed Consolidating Balance Sheets (Unaudited) December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties — — Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets — Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — $ Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — — Deferred revenue, current — Total current liabilities — Long-term debt, non-current — Capital lease obligation, non-current — — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ Condensed Consolidating Balance Sheets (Unaudited) June 30, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — Deferred revenue, current — Total current liabilities Long-term debt, non-current — — — Related party debt, long-term — — — Capital lease obligation, non-current — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities — Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ Condensed Consolidating Statements of Operations For the three months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations For the six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the three months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired — Other Net cash used in investing activities Cash flows from financing activities: Distributions to parent Loan from Parent — — Principal payments on long-term debt — Principal repayments on capital lease obligations Excess tax benefit from stock-based compensation — — Other — — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash — — Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired Net cash used in investing activities Cash flows from financing activities: Proceeds from equity offerings and contributions Principal payments on long-term debt — Payment of early redemption fees on debt extinguished — — Payment of)/receipt from intercompany loans — — Principal repayments on capital lease obligations — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ | (17) Condensed Consolidating Financial Information As discussed Note 8 – Long-Term Debt The accompanying condensed consolidating financial information has been prepared and is presented to display the components of the Company’s balance sheets, statements of operations and statements of cash flows in a manner that allows an existing or future holder of the Company’s Notes to review and analyze the current financial position and recent operating results of the legal subsidiaries that guarantee the Company’s debt obligations. The operating activities of the separate legal entities included in the Company’s consolidated financial statements are interdependent. The accompanying condensed consolidating financial information presents the results of operations, financial position and cash flows of each legal entity. Zayo Group and its guarantors provide services to each other during the normal course of business. These transactions are eliminated in the consolidated results of operations of the Company. Activity related to income taxes is included at the issuer, or Zayo Group level, and the Company's non-guarantor subsidiaries and is not allocated to the Company's guarantor subsidiaries in the condensed consolidated financial information presented below. Condensed Consolidating Balance Sheets Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 274.3 $ 4.7 $ 29.0 $ — 308.0 Trade receivables, net of allowance 54.7 4.6 28.7 — 88.0 Due from related parties (1.3 ) 0.4 2.9 (1.4 ) 0.6 Prepaid expenses 25.8 4.4 7.1 — 37.3 Deferred income taxes, net 128.5 — 1.0 — 129.5 Other assets 3.6 — 0.3 — 3.9 Total current assets 485.6 14.1 69.0 (1.4 ) 567.3 Property and equipment, net 2,622.9 335.5 340.8 — 3,299.2 Intangible assets, net 605.8 239.5 103.0 — 948.3 Goodwill 762.2 281.0 181.2 — 1,224.4 Other assets 36.2 8.3 10.3 — 54.8 Related party receivable 304.8 — — (304.8 ) — Investment in subsidiary 1,050.8 — — (1,050.8 ) — Total assets $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 16.5 $ — $ — $ — 16.5 Accounts payable 26.6 4.0 9.4 — 40.0 Accrued liabilities 125.6 20.6 36.2 — 182.4 Accrued interest 57.2 — — — 57.2 Capital lease obligations, current 2.0 1.6 0.8 — 4.4 Due to related parties 1.7 — — (1.4 ) 1.3 Deferred revenue, current 73.2 2.8 10.6 — 86.6 Total current liabilities 302.8 29.0 58.0 (1.4 ) 388.4 Long-term debt, non-current 3,652.2 — — — 3,652.2 Related party debt, long-term — — 304.8 (304.8 ) — Capital lease obligation, non-current 5.6 18.6 4.1 — 28.3 Deferred revenue, non-current 559.4 4.6 48.7 — 612.7 Stock-based compensation liability 1.5 0.1 0.3 — 1.9 Deferred income taxes, net 139.2 — 50.5 — 189.7 Other long-term liabilities 13.5 10.5 2.7 — 26.7 Total liabilities 4,674.2 62.8 469.1 (306.2 ) 4,899.9 Member's equity Member's interest 1,730.1 778.1 251.2 (1,060.3 ) 1,699.1 Accumulated other comprehensive (loss)/income — — (7.9 ) — (7.9 ) Accumulated deficit (536.0 ) 37.5 (8.1 ) — (497.1 ) Total member's equity 1,194.1 815.6 235.2 (1,050.8 ) 1,194.1 Total liabilities and member's equity $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Condensed Consolidating Balance Sheets Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 256.0 $ 5.8 $ 35.6 $ — 297.4 Trade receivables, net of allowance 33.6 8.2 15.4 — 57.2 Due from related parties 0.3 — 0.6 — 0.9 Prepaid expenses 18.7 0.9 5.3 — 24.9 Deferred income taxes, net 156.0 3.5 1.5 — 161.0 Other assets 1.9 — 0.5 — 2.4 Total current assets 466.5 18.4 58.9 — 543.8 Property and equipment, net 2,389.3 109.3 323.8 — 2,822.4 Intangible assets, net 563.7 51.1 95.5 — 710.3 Goodwill 683.5 38.0 145.2 — 866.7 Other assets 23.4 3.5 10.8 — 37.7 Related party receivable 267.8 — — (267.8 ) — Investment in subsidiary 332.1 — — (332.1 ) — Total assets $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 20.5 $ — $ — $ — 20.5 Accounts payable 20.4 4.3 2.0 — 26.7 Accrued liabilities 125.0 21.0 26.3 — 172.3 Accrued interest 57.1 — — — 57.1 Capital lease obligations, current 1.5 0.9 — — 2.4 Due to related parties (0.7 ) — 0.7 — — Deferred revenue, current 56.7 1.6 17.1 — 75.4 Total current liabilities 280.5 27.8 46.1 — 354.4 Long-term debt, non-current 3,130.3 — — — 3,130.3 Related party debt, long-term — — 267.8 (267.8 ) — Capital lease obligation, non-current 5.6 18.4 1.7 — 25.7 Deferred revenue, non-current 459.5 8.6 33.4 — 501.5 Stock-based compensation liability 343.8 23.3 25.3 — 392.4 Deferred income taxes, net 93.0 — 45.3 — 153.0 Other long-term liabilities 12.3 9.8 0.2 — 22.3 Total liabilities 4,325.0 102.6 419.8 (267.8 ) 4,579.6 Member's equity Member's interest 782.2 73.8 205.0 (332.1 ) 728.9 Accumulated other comprehensive (loss)/income — — 14.4 — 14.4 Accumulated deficit (380.9 ) 43.9 (5.0 ) — (342.0 ) Total member's equity 401.3 117.7 214.4 (332.1 ) 401.3 Total liabilities and member's equity $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 Condensed Consolidating Statements of Operations Year Ended June 30, 2015 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 1,040.1 $ 151.6 $ 155.4 $ — $ 1,347.1 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 313.8 54.4 45.3 — 413.5 Selling, general and administrative expenses (including stock-based compensation) 266.4 38.9 52.8 — 358.1 Depreciation and amortization 321.7 42.7 41.8 — 406.2 Total operating costs and expenses 901.9 136.0 139.9 — 1,177.8 Operating income 138.2 15.6 15.5 — 169.3 Other expenses Interest expense (177.0 ) (20.3 ) (16.7 ) — (214.0 ) Loss on extinguishment of debt (91.8 ) (1.7 ) (0.8 ) — (94.3 ) Foreign currency (loss)/gain on intercompany loans (23.2 ) — (1.2 ) — (24.4 ) Other income, net (0.4 ) — — — (0.4 ) Equity in net earnings of subsidiaries (9.5 ) — — 9.5 — Total other expense, net (301.9 ) (22.0 ) (18.7 ) 9.5 (333.1 ) (Loss)/earnings before provision for income taxes (163.7 ) (6.4 ) (3.2 ) 9.5 (163.8 ) (Benefit)/provision for income taxes (8.6 ) — (0.1 ) — (8.7 ) Net (loss)/earnings $ (155.1 ) $ (6.4 ) $ (3.1 ) $ 9.5 $ (155.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2014 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 956.5 $ 102.8 $ 70.4 $ — $ 1,129.7 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 290.1 45.5 7.7 — 343.3 Selling, general and administrative expenses (including stock-based compensation) 327.3 28.3 29.0 — 384.6 Depreciation and amortization 307.6 13.8 16.8 — 338.2 Total operating costs and expenses 925.0 87.6 53.5 — 1,066.1 Operating income 31.5 15.2 16.9 — 63.6 Other expenses Interest expense (201.1 ) — (2.4 ) — (203.5 ) Loss on extinguishment of debt (1.9 ) — — — (1.9 ) Foreign currency (loss)/gain on intercompany loans 3.5 — 1.2 — 4.7 Other income, net 0.3 — — — 0.3 Equity in net earnings of subsidiaries 28.2 — — (28.2 ) — Total other expense, net (171.0 ) — (1.2 ) (28.2 ) (200.4 ) (Loss)/earnings before provision for income taxes (139.5 ) 15.2 15.7 (28.2 ) (136.8 ) (Benefit)/provision for income taxes 37.6 - 2.7 — 40.3 Net (loss)/earnings $ (177.1 ) $ 15.2 $ 13.0 $ (28.2 ) $ (177.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2013 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 876.4 $ 85.4 $ 57.9 $ (8.7 ) $ 1,011.0 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 255.5 50.4 16.9 (8.7 ) 314.1 Selling, general and administrative expenses (including stock-based compensation) 229.5 9.4 17.8 — 256.7 Depreciation and amortization 301.4 9.8 13.3 — 324.5 Total operating costs and expenses 786.4 69.6 48.0 (8.7 ) 895.3 Operating income 90.0 15.8 9.9 — 115.7 Other expenses Interest expense (202.1 ) — (0.4 ) — (202.5 ) Loss on extinguishment of debt (77.3 ) — — — (77.3 ) Foreign currency (loss)/gain on intercompany loans 0.1 — — — 0.1 Other income, net 0.2 — 0.1 — 0.3 Equity in net earnings of subsidiaries 20.7 — — (20.7 ) — Total other expense, net (258.4 ) — (0.3 ) (20.7 ) (279.4 ) (Loss)/earnings before provision for income taxes (168.4 ) 15.8 9.6 (20.7 ) (163.7 ) (Benefit)/provision for income taxes (26.5 ) — 4.7 — (21.8 ) Net (loss)/earnings $ (141.9 ) $ 15.8 $ 4.9 $ (20.7 ) $ (141.9 ) Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 489.3 $ 55.7 62.0 $ 607.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (436.8 ) (47.8 ) (45.8 ) (530.4 ) Acquisitions, net of cash acquired (113.5 ) (668.3 ) (73.9 ) (855.7 ) Net cash used in investing activities (550.3 ) (716.1 ) (119.7 ) (1,386.1 ) Cash flows from financing activities: Proceeds from debt 1,747.2 — 40.1 1,787.3 Proceeds from equity offerings and contributions (290.9 ) 660.7 15.2 385.0 Direct costs associated with equity offerings - — — - Principal payments on long-term debt (1,288.5 ) — — (1,288.5 ) Payment of early redemption fees on debt extinguished (62.6 ) — — (62.6 ) Principal repayments on capital lease obligations (1.7 ) (1.4 ) (0.4 ) (3.5 ) Payment of debt issuance costs (24.2 ) — — (24.2 ) Net cash provided by financing activities 79.3 659.3 54.9 793.5 Effect of changes in foreign exchange rates on cash — — (3.8 ) (3.8 ) Net (decrease)/increase in cash and cash equivalents 18.3 (1.1 ) (2.8 ) 14.4 Cash and cash equivalents, beginning of period 256.0 5.8 35.6 297.4 Cash and cash equivalents, end of period $ 274.3 $ 4.7 $ 29.0 $ 308.0 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 485.5 43.2 33.3 $ 562.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (316.6 ) (28.2 ) (16.0 ) (360.8 ) Acquisitions, net of cash acquired (83.2 ) (17.8 ) (292.3 ) (393.3 ) Net cash used in investing activities (399.8 ) (46.0 ) (308.3 ) (754.1 ) Cash flows from financing activities: Proceeds from debt 423.6 — — 423.6 Proceeds from revolving credit facility 195.0 — — 195.0 Proceeds from equity offerings and contributions 11.2 (5.6 ) — 5.6 Distribution to parent (1.2 ) — — (1.2 ) Dividends received/(paid) (70.8 ) 15.8 55.0 — Principal payments on long-term debt (18.0 ) — — (18.0 ) Principal repayments on capital lease obligations (2.1 ) (5.8 ) — (7.9 ) Payment of)/receipt from intercompany loans (251.1 ) — 251.1 — Payments on revolving credit facility (195.0 ) — — (195.0 ) Payment of debt issuance costs (4.9 ) — — (4.9 ) Net cash provided by financing activities 86.7 4.4 306.1 397.2 Effect of changes in foreign exchange rates on cash — — 1.0 1.0 Net (decrease)/increase in cash and cash equivalents 172.4 1.6 31.1 205.1 Cash and cash equivalents, beginning of period 83.6 4.2 3.5 91.3 Cash and cash equivalents, end of period $ 256.0 $ 5.8 $ 35.6 $ 297.4 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2013 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 359.3 $ 31.8 $ 13.6 $ 404.7 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (299.8 ) (14.1 ) (9.4 ) (323.3 ) Acquisitions, net of cash acquired (2,489.0 ) 0.4 7.9 (2,480.7 ) Net cash used in investing activities (2,788.8 ) (13.7 ) (1.5 ) (2,804.0 ) Cash flows from financing activities: Proceeds from debt 3,184.4 4.9 — 3,189.3 Proceeds from equity offerings and contributions 344.0 — — 344.0 Dividends received/(paid) 18.6 (18.6 ) — — Principal payments on long-term debt (1,058.6 ) — — (1,058.6 ) Payment of early redemption fees on debt extinguished (72.1 ) — — (72.1 ) Principal repayments on capital lease obligations (1.8 ) (0.1 ) — (1.9 ) Payment of)/receipt from intercompany loans 8.3 — (8.3 ) — Payment of debt issuance costs (83.1 ) — — (83.1 ) Changes in restricted cash, net 22.6 — — 22.6 Net cash provided by financing activities 2,362.3 (13.8 ) (8.3 ) 2,340.2 Effect of changes in foreign exchange rates on cash 0.1 (0.1 ) (0.3 ) (0.3 ) Net (decrease)/increase in cash and cash equivalents (67.2 ) 4.3 3.8 (59.1 ) Cash and cash equivalents, beginning of period 150.7 — — 150.7 Cash and cash equivalents, end of period $ 83.6 $ 4.2 $ 3.5 $ 91.3 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | (18) QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents the unaudited quarterly results for the year ended June 30, 2015 (in millions): 2015 Quarter Ended (1) September December 31 March 31 (3) (4) June 30 Total Revenue $ 320.6 $ 323.9 $ 340.7 $ 361.9 $ 1,347.1 Operating costs and expenses Operating costs (excluding depreciation and amortization and including stock-based compensation) 107.3 97.8 100.9 107.5 413.5 Selling, general and administrative expenses (including stock-based compensation) (2) 156.6 32.1 83.0 86.4 358.1 Depreciation and amortization 96.0 96.9 100.1 113.2 406.2 Total operating costs and expenses 359.9 226.8 284.0 307.1 1,177.8 Operating income (39.3 ) 97.1 56.7 54.8 169.3 Other expenses Interest expense (46.9 ) (53.4 ) (60.7 ) (53.0 ) (214.0 ) Loss on extinguishment of debt (5) — (30.9 ) (54.9 ) (8.5 ) (94.3 ) Foreign currency (loss)/gain on intercompany loans (14.7 ) (13.3 ) (13.2 ) 16.8 (24.4 ) Other (expense)/income, net — (0.1 ) — (0.3 ) (0.4 ) Total other expenses, net (61.6 ) (97.7 ) (128.8 ) (45.0 ) (333.1 ) (Loss)/earnings from operations before income taxes (100.9 ) (0.6 ) (72.1 ) 9.8 (163.8 ) (Benefit)/provision for income taxes 9.4 (4.3 ) (18.4 ) 4.6 (8.7 ) Net (loss)/earnings $ (110.3 ) $ 3.7 $ (53.7 ) $ 5.2 $ (155.1 ) (1) The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. (2) The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12— Stock-based Compensation (3) The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. (4) The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. (5) The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8— Long-Term Debt The following table presents the unaudited quarterly results for the year ended June 30, 2014 (in millions): 2014 Quarter Ended (1) September 30 December 31 (2) (3) March 31 (4) June 30 (5) Total Revenue $ 269.7 $ 278.7 $ 283.2 $ 298.1 $ 1,129.7 Operating costs and expenses Operating costs (excluding depreciation and amortization and including stock-based compensation) 79.7 85.9 84.9 92.8 343.3 Selling, general and administrative expenses (including stock-based compensation) 76.4 87.0 96.6 124.6 384.6 Depreciation and amortization 81.0 81.7 84.2 91.3 338.2 Total operating costs and expenses 237.1 254.6 265.7 308.7 1,066.1 Operating income 32.6 24.1 17.5 (10.6 ) 63.6 Other expenses Interest expense (6) (51.5 ) (50.3 ) (49.1 ) (52.6 ) (203.5 ) Loss on extinguishment of debt (7) — (1.9 ) — — (1.9 ) Foreign currency gain on intercompany loans 0.6 0.2 0.1 3.8 4.7 Other income, net 0.1 0.3 — (0.1 ) 0.3 Total other expenses, net (50.8 ) (51.7 ) (49.0 ) (48.9 ) (200.4 ) Loss from operations before income taxes (18.2 ) (27.6 ) (31.5 ) (59.5 ) (136.8 ) Provision for income taxes 9.3 8.4 12.1 10.5 40.3 Net loss $ (27.5 ) $ (36.0 ) $ (43.6 ) $ (70.0 ) $ (177.1 ) (1) The Company realized an increase in revenue and operating expenses beginning August 1, 2013 as a result of the acquisition of Corelink. (2) The Company realized an increase in revenue and operating expenses beginning October 1, 2013 as a result of the acquisition of Access. (3) The Company realized an increase in revenue and operating expenses beginning October 2, 2013 as a result of the acquisition of Fiberlink. (4) The Company realized an increase in revenue and operating expenses beginning March 4, 2014 as a result of the acquisition of CoreXchange. (5) The Company realized an increase in revenue and operating expenses beginning May 16, 2014 as a result of the acquisition of Geo. (6) The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8— Long-Term Debt. (7) The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8— Long-Term Debt. |
Basis of Presentation and Sig26
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements and related notes are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q, and do not include all of the note disclosures required by GAAP for complete financial statements. These condensed consolidated financial statements should, therefore, be read in conjunction with the consolidated financial statements and notes thereto for the year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015 . In the opinion of management, all adjustments considered necessary for fair presentation of financial position, results of operations and cash flows of the Company have been included herein. The results of operations for the three and six months periods ended December 31, 2015 are not necessarily indicative of the operating results for any future interim period or the full year. The Company’s fiscal year ends June 30 each year, and we refer to the fiscal year ended June 30, 2015 as “Fiscal 2015 ” and the fiscal year ending June 30, 2016 as “Fiscal 2016 .” | a. Basis of Presentation The accompanying consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) Our fiscal year ends June 30 each year, and we refer to the fiscal year ended June 30, 2015 as “Fiscal 2015,” June 30, 2014 as “Fiscal 2014,” and the fiscal year ended June 30, 2013 as “Fiscal 2013.” |
Foreign Currency Translation | b. Foreign Currency Translation For operations outside the U.S. that have functional currencies other than the U.S. dollar, assets and liabilities are translated to U.S. dollars at period-end exchange rates, and revenue, expenses and cash flows are translated using monthly average exchange rates during the year. Gains or losses resulting from currency translation are recorded as a component of accumulated other comprehensive loss in member’s equity and in the consolidated statements of comprehensive loss. The Company considers the majority of its investments in its foreign subsidiaries to be permanently reinvested. | |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates are used when establishing allowances for doubtful accounts and accruals for billing disputes, determining useful lives for depreciation and amortization and accruals for exit activities associated with real estate leases, assessing the need for impairment charges (including those related to intangible assets and goodwill), determining the fair values of assets acquired and liabilities assumed in business combinations, accounting for income taxes and related valuation allowances against deferred tax assets and estimating the restricted stock unit grant fair values used to compute the stock-based compensation liability and expense. Management evaluates these estimates and judgments on an ongoing basis and makes estimates based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from these estimates under different assumptions or conditions. | c. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates are used when establishing allowances for doubtful accounts and accruals for billing disputes, determining useful lives for depreciation and amortization and accruals for exit activities associated with real estate leases, assessing the need for impairment charges (including those related to intangible assets and goodwill), determining the fair values of assets acquired and liabilities assumed in business combinations, accounting for income taxes and related valuation allowances against deferred tax assets and estimating the common unit and restricted stock unit grant fair values used to compute the stock-based compensation liability and expense. Management evaluates these estimates and judgments on an ongoing basis and makes estimates based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from these estimates under different assumptions or conditions |
Cash and Cash Equivalents and Restricted Cash | d. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Restricted cash consists of cash balances held by various financial institutions as collateral for letters of credit and surety bonds. These balances are reclassified to cash and cash equivalents when the underlying obligation is satisfied, or in accordance with the governing agreement. Restricted cash balances expected to become unrestricted during the next twelve months are recorded as current assets. As of June 30, 2015 and 2014, the Company had a non-current restricted cash balance of $4.8 million and $5.1 million respectively. | |
Trade Receivables | e. Trade Receivables Trade receivables are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its trade receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the customer’s financial condition, and the age of receivables and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Property and Equipment | f. Property and Equipment The Company’s property and equipment includes assets in service and under construction or development. Property and equipment is recorded at historical cost or acquisition date fair value. Costs associated directly with network construction, service installations, and development of business support systems, including employee-related costs, are capitalized. Depreciation is calculated on a straight-line basis over the asset’s estimated useful life from the date placed into service or acquired. Management periodically evaluates the estimates of the useful life of property and equipment by reviewing historical usage, with consideration given to technological changes, trends in the industry, and other economic factors that could impact the network architecture and asset utilization. Equipment acquired under capital leases is recorded at the lower of the fair value of the asset or the net present value of the minimum lease payments at the inception of the lease. Depreciation of equipment held under capital leases is included in depreciation and amortization expense, and is calculated on a straight-line basis over the estimated useful lives of the assets, or the related lease term, whichever is shorter. Management reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of its property and equipment may not be recoverable. An impairment loss is recognized when the assets’ carrying value exceeds both the assets’ estimated undiscounted future cash flows and the assets’ estimated fair value. Measurement of the impairment loss is then based on the estimated fair value of the assets. Considerable judgment is required to project such future cash flows and, if required, to estimate the fair value of the property and equipment and the resulting amount of the impairment. No impairment charges were recorded for property and equipment during the years ended June 30, 2015, 2014 or 2013. The Company capitalizes interest for assets that require a period of time to get them ready for their intended use. The amount of interest capitalized is based on the Company’s weighted average effective interest rate for outstanding debt obligations during the respective accounting period. | |
Goodwill and Purchased Intangibles | g. Goodwill and Acquired Intangibles Intangible assets arising from business combinations, such as acquired customer contracts and relationships, (collectively “customer relationships”), are initially recorded at fair value. The Company amortizes customer relationships primarily over an estimated life of 10 to 20 years, using the straight-line method as this method approximates the timing in which the Company expects to receive the benefit from the acquired customer relationship assets. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is reviewed for impairment at least annually in April, or more frequently if a triggering event occurs between impairment testing dates. The Company’s impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the reporting units against the planned results used in the last quantitative goodwill impairment test. Additionally, each reporting unit’s fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity- and reporting unit-specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value involves significant judgments and estimates. If it is determined under the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a two-step quantitative impairment test is performed. Under the first step, the estimated fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation in acquisition accounting. The residual amount after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit under the two-step assessment is determined using a combination of both income and market-based variation approaches. The inputs and assumptions to valuation methods used to estimate the fair value of reporting units involves significant judgments. The Company reviews its indefinite-lived intangible assets for impairment at least annually in April and involves comparing the estimated fair value of indefinite-lived intangible assets to their respective carrying values. To the extent the carrying value of indefinite-lived intangible assets exceeds the fair value, the Company will recognize an impairment loss for the difference. The Company performed a qualitative assessment to determine whether it was more likely than not that the fair value of these assets was in excess of the carrying value for the year ended June 30, 2015, 2014 or 2013 and has concluded there is no indication of impairment. Intangible assets with finite useful lives are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. No impairment charges were recorded for goodwill or intangibles during the years ended June 30, 2015, 2014 or 2013. | |
Derivative Financial Instruments | h. Derivative Financial Instruments Derivative instruments are recorded in the balance sheet as either assets or liabilities, measured at fair value. The Company has historically entered into interest rate swaps to convert a portion of its floating-rate debt to fixed-rate debt and has not applied hedge accounting; therefore, the changes in the fair value of the interest rate swaps are recognized in earnings as adjustments to interest expense. The principal objectives of the derivative instruments are to minimize the cash flow interest rate risks associated with financing activities. The Company does not use financial instruments for trading purposes. The Company utilizes interest rate swap contracts in connection with debt instruments entered into during the July 2012 financing transactions. | |
Revenue Recognition | i. Revenue Recognition The Company recognizes revenues derived from leasing fiber optic telecommunications infrastructure and the provision of telecommunications and colocation services when the service has been provided and when there is persuasive evidence of an arrangement, the fee is fixed or determinable, customer acceptance has been obtained with relevant contract terms, and collection of the receivable is reasonably assured. Taxes collected from customers and remitted to a governmental authority are reported on a net basis and are excluded from revenue. Most revenue is billed in advance on a fixed-rate basis and the remainder is billed in arrears on a transactional basis determined by customer usage. The Company often bills customers for upfront charges, which are non-refundable. These charges relate to activation fees, installation charges or prepayments for future services and are influenced by various business factors including how the Company and customer agree to structure the payment terms. These upfront charges are deferred and recognized over the underlying contractual term. The Company also defers costs associated with customer activation and installation to the extent of upfront amounts received from customers, which are recognized as expense over the same period for which the associated revenue is recognized. The Company typically records revenues from leases of dark fiber, including indefeasible rights-of-use (“IRU”) agreements, over the term that the customer is given exclusive access to the assets. Dark fiber IRU agreements generally require the customer to make a down payment upon the execution of the agreement with monthly IRU fees paid over the contract term; however, in some cases, the Company receives up to the entire lease payment at the inception of the lease and recognizes the revenue ratably over the lease term. Revenue related to professional services to provide network management and technical support is recognized as services are provided. In determining the appropriate amount of revenue and related reserves to reflect in its consolidated financial statements, management evaluates payment history, credit ratings, customer financial performance, and historical or potential billing disputes and related estimates are based on these factors and assumptions. | |
Operating Costs And Expenses | j. Operating Costs and Expenses The Company’s operating costs and expenses consist primarily of network expense (“Netex”), compensation and benefits, network operations expense (“Netops”), stock-based compensation, other expenses, and depreciation and amortization. Netex consists of third-party network service costs resulting from the leasing of certain network facilities, primarily leases of circuits and dark fiber, from carriers to augment the Company’s owned infrastructure, for which it is generally billed a fixed monthly fee. Netex also includes colocation facility costs for rent and license fees paid to the landlords of the buildings in which the Company’s colocation business operates, along with the utility costs to power those facilities. Compensation and benefits expenses include salaries, wages, incentive compensation and benefits. Employee-related costs that are directly associated with network construction, service installations and development of business support systems are capitalized and amortized to operating costs and expenses over the customer life. Compensation and benefits expenses related to the departments attributed to generating revenue are included in “Operating costs” while compensation and benefits expenses related to the sales, product, and corporate departments are included in “Selling, general and administrative expenses” in the consolidated statements of operations. Netops expense include all of the non-personnel related expenses of operating and maintaining the network infrastructure, including contracted maintenance fees, right-of-way costs, rent for cellular towers and other places where fiber is located, pole attachment fees, and relocation expenses. Netops expense is included in “Operating costs” in the consolidated statements of operations. Stock-based compensation expense consists of the fair value of equity based awards granted to employees and independent directors over their applicable vesting period. Stock-based compensation expense is included, based on the responsibilities of the awarded recipient, in either “Operating costs” or “Selling, general and administrative expenses” in the consolidated statements of operations. For additional information regarding our stock-based compensation expense, see Note 12 – Stock-Based Compensation Other expenses include expenses such as property tax, franchise fees, and colocation facility maintenance, which relate to operating our network and are therefore included in “Operating costs” as well as travel, office expense and other administrative costs that are included in “Selling, general and administrative expenses”. Other expenses are included in either “Operating costs” or “Selling, general and administrative expenses” in the consolidated statement of operations depending on their relationship to generating revenue or association with sales and administration. Transaction costs include expenses associated with professional services (i.e. legal, accounting, regulatory, etc.) rendered in connection with acquisitions or disposals (including spin-offs), travel expense, severance expense incurred on the date of acquisition or disposal, and other direct expenses incurred that are associated with signed and/or closed acquisitions or disposals. Transaction costs are included in “Selling, general and administrative expenses” in the consolidated statements of operations. Related to Netex, the Company recognizes the cost of these facilities or services when it is incurred in accordance with contractual requirements. The Company routinely disputes incorrect billings. The most prevalent types of disputes include disputes for circuits that are not disconnected on a timely basis and usage bills with incorrect records. Depending on the type and complexity of the issues involved, it may take several quarters to resolve disputes. In determining the amount of such operating expenses and related accrued liabilities to reflect in its consolidated financial statements, management considers the adequacy of documentation of disconnect notices, compliance with prevailing contractual requirements for submitting such disconnect notices and disputes to the provider of the facilities, and compliance with its interconnection agreements with these carriers. Significant judgment is required in estimating the ultimate outcome of the dispute resolution process, as well as any other costs that may be incurred to conclude the negotiations or settle any litigation. | |
Stock-based Compensation | k. Stock-Based Compensation In October 2014, the Company adopted a new incentive plan. The plan includes incentive cash compensation (ICC) and equity (in the form of restricted stock units). Grants under the new incentive plan are made quarterly for all participants. The Company recognizes all stock-based awards to employees and independent directors, based on their grant-date fair values and the Company’s estimates of forfeitures. The Company recognizes the fair value of outstanding awards as a charge to operations over the vesting period. The Company uses the straight-line method to recognize share-based compensation expense for outstanding share awards that do not contain a performance condition. Prior to the Company’s IPO, the Company was given authorization by CII to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. In connection with the Company’s IPO and the related amendment to the CII operating agreement, there was a deemed modification to the stock compensation arrangements with the Company’s employees and directors. As a result, previously issued common units which were historically accounted for as liability awards, became classified as equity awards. Determining the fair value of certain share-based awards at the grant date and subsequent reporting dates requires judgment. If actual results differ significantly from these estimates, stock-based compensation expense and the Company’s results of operations could be materially impacted. For additional information regarding our stock-based compensation, see Note 12 – Stock-Based Compensation | |
Legal Costs | l. Legal Costs Costs incurred to hire and retain external legal counsel to advise us on regulatory, litigation and other matters is expensed as the related services are received. | |
Income Taxes | m. Income Taxes The Company recognizes income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. Estimating the future tax benefit associated with deferred tax assets requires significant judgment. Deferred tax assets arise from a variety of sources, the most significant being: tax losses that can be carried forward to be utilized against taxable income in future years; and expenses recognized in the Company’s financial statements but disallowed in the Company’s tax return until the associated cash flow occurs. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is expected to be recognized. The valuation allowance is established if, based on available evidence, it is more-likely-than-not that all or some portion of the asset will not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. When evaluating whether it is more-likely-than-not that all or some portion of the deferred tax asset will not be realized, all available evidence, both positive and negative, that may affect the realizability of deferred tax assets is identified and considered in determining the appropriate amount of the valuation allowance. The Company continues to monitor its financial performance and other evidence each quarter to determine the appropriateness of the Company’s valuation allowance. At each balance sheet date, existing assessments are reviewed and, if necessary, revised to reflect changed circumstances. The analysis of the Company’s ability to utilize its NOL balance is based on the Company’s forecasted taxable income. The forecasted assumptions approximate the Company’s best estimates, including market growth rates, future pricing, market acceptance of the Company’s products and services and future expected capital investments. If the Company is unable to meet its taxable income forecasts in future periods the Company may change its conclusion about the appropriateness of the valuation allowance which could create a substantial income tax expense in the Company’s consolidated statement of operations in the period such change occurs. Deferred tax liabilities related to investments in foreign subsidiaries and foreign corporate joint ventures that are essentially permanent in duration are not recognized until it becomes apparent that such amounts will reverse in the foreseeable future. The Company records interest related to unrecognized tax benefits and penalties in the provision for income taxes. | |
Fair Value of Financial Instruments | n. Fair Value of Financial Instruments Relevant accounting literature defines and establishes a framework for measuring fair value, and requires expanded disclosures about fair value measurements. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques that may be used include the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost), which are each based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Fair Value Hierarchy A fair value hierarchy is established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that are used to measure fair value are: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 Inputs to the valuation methodology include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in inactive markets; • inputs other than quoted prices that are observable for the asset or liability; and • inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company views fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, management considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. | |
Concentration of Credit Risk | o. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash investments and accounts receivable. The Company’s cash and cash equivalents are primarily held in commercial bank accounts in the United States and Great Britain. The Company limits its cash investments to high-quality financial institutions in order to minimize its credit risk. During the years ended June 30, 2015, 2014 and 2013 the Company had no single customer that exceeded 10% of total revenue. The Company’s trade receivables, which are unsecured, are geographically dispersed. As of June 30, 2015 and 2014, the Company had one customer with a trade receivable balance of 10% and 12%, respectively, of total receivables. | |
Reclassification of Network Related Expenses and Zayo Professional Services | p. Reclassification of Network Related Expenses and Zayo Professional Services The Company has historically included certain network related expenses associated with the operations, support and maintenance of its network assets and technical facilities, including compensation and related benefits and stock-based compensation expense associated with personnel involved in these activities, within the line item “Selling, general and administrative expenses” in its consolidated statement of operations. The Company has changed its presentation of these network related expenses to be included in operating costs in its consolidated statements of operations to differentiate costs attributed to generating revenue from selling, general and administrative expenses. This reclassification does not impact the Company’s previously reported total operating costs and expenses, operating income subtotal or net loss total for the periods presented. The following tables reflect the reclassification of network related expenses from “Selling, general and administrative expenses” to “Operating costs” for each of the quarters and annual period for Fiscal 2014. The following table reflects the reclassification of network related expenses from “Selling, general and administrative expenses” to “Operating costs” and the impact of the transfer of ZPS into the Company for each of the quarters and annual periods in Fiscal 2014. Fiscal 2014 Quarter Ended Year Ended September 30 December 31 March 31 June 30 June 30, 2014 Operating costs, as originally stated $ 34.9 $ 35.0 $ 35.4 $ 36.2 $ 141.5 Reclassification of network-related expenses 42.8 49.0 47.7 53.3 192.8 Transfer of Zayo Professional Services 2.0 1.9 1.8 3.3 9.0 Operating costs, as adjusted $ 79.7 $ 85.9 $ 84.9 $ 92.8 $ 343.3 Selling, general and administrative expenses, as originally stated $ 117.4 $ 134.2 $ 142.7 $ 176.9 $ 571.2 Reclassification of network-related expenses (42.8 ) (48.9 ) (47.8 ) (53.3 ) (192.8 ) Transfer of Zayo Professional Services 1.8 1.7 1.7 1.0 6.2 Selling, general and administrative expenses, as adjusted $ 76.4 $ 87.0 $ 96.6 $ 124.6 $ 384.6 See also Note 4 - Transfer of Zayo Professional Services. The interim and annual financial information for Fiscal 2014 have been adjusted accordingly in the Company’s condensed consolidated balance sheet and statements of operations. The effect of the transfer of ZPS into the Company on net income/(loss), other comprehensive income/(loss), and any related per-share amounts was immaterial for all prior periods presented herein | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes , which requires an entity to present deferred tax liabilities and assets as noncurrent. The ASU will replace the current classification and presentation requirements for deferred tax assets and liabilities. Early adoption is permitted as of the original effective date or annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2016. The Company has not yet adopted ASU 2015-17 and it is not expected to have a material effect on the Company’s financial statements. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires acquirers who have reported provisional amounts for items in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period, in the reporting period in which the adjustments are determined. The ASU also requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Prior to the issuance of ASU 2015-16, adjustments to provisional amounts were required to be retrospectively adjusted. The Company prospectively early-adopted ASU 2015-16 effective July 1, 2015. The adoption of this standard did not have a material impact on the financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB deferred the effective date to annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date or annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | q. Recently Issued Accounting Pronouncements Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of the end of Fiscal 2015, and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $71.0 million and $89.4 million of unamortized debt issuance costs (see Note 8 – Long Term Debt Long-term debt, non-current Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Selling General and Administrative Expenses | The following table reflects the reclassification of network related expenses from “Selling, general and administrative expenses” to “Operating costs” and the impact of the transfer of ZPS into the Company for each of the quarters and annual periods in Fiscal 2014. Fiscal 2014 Quarter Ended Year Ended September 30 December 31 March 31 June 30 June 30, 2014 Operating costs, as originally stated $ 34.9 $ 35.0 $ 35.4 $ 36.2 $ 141.5 Reclassification of network-related expenses 42.8 49.0 47.7 53.3 192.8 Transfer of Zayo Professional Services 2.0 1.9 1.8 3.3 9.0 Operating costs, as adjusted $ 79.7 $ 85.9 $ 84.9 $ 92.8 $ 343.3 Selling, general and administrative expenses, as originally stated $ 117.4 $ 134.2 $ 142.7 $ 176.9 $ 571.2 Reclassification of network-related expenses (42.8 ) (48.9 ) (47.8 ) (53.3 ) (192.8 ) Transfer of Zayo Professional Services 1.8 1.7 1.7 1.0 6.2 Selling, general and administrative expenses, as adjusted $ 76.4 $ 87.0 $ 96.6 $ 124.6 $ 384.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Schedule of Acquisitions | The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2016 acquisitions: Viatel Dallas Data Center Acquisition date December 31, 2015 December 31, 2015 (in millions) Cash $ $ — Other current assets — Property and equipment Deferred tax assets, net — — Intangibles Goodwill — Other assets — — Total assets acquired Current liabilities — Deferred revenue — Deferred tax liability, net — Other liabilities — — Total liabilities assumed — Net assets acquired Less cash acquired — Net consideration paid $ $ The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions: AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 (in millions) Cash $ — $ $ — $ Other current assets Property and equipment Deferred tax assets, net — — Intangibles Goodwill Other assets — — Total assets acquired Current liabilities Deferred revenue — Deferred tax liability, net — — Other liabilities — — — Total liabilities assumed Net assets acquired Less cash acquired — — Net consideration paid $ $ $ $ | The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions (in millions): AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 Cash $ — $ 4.2 $ — $ 9.4 Other current assets 0.2 9.5 0.8 17.1 Property and equipment 7.0 31.3 32.3 222.9 Deferred tax assets, net — — 2.9 — Intangibles 21.0 26.4 7.6 250.2 Goodwill 25.2 32.5 38.8 279.8 Other assets — 2.3 — 5.0 Total assets acquired 53.4 106.2 82.4 784.4 Current liabilities 1.5 13.5 4.5 10.7 Deferred revenue — 3.7 25.2 3.2 Deferred tax liability, net — 7.6 — 83.6 Other liabilities — 3.3 — — Total liabilities assumed 1.5 28.1 29.7 97.5 Net assets acquired 51.9 78.1 52.7 686.9 Less cash acquired — (4.2 ) — (9.4 ) Net consideration paid $ 51.9 $ 73.9 $ 52.7 $ 677.5 The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2014 acquisitions (in millions): Corelink Access FiberLink CoreXchange Geo Acquisition date August 1, 2013 October 1, 2013 October 2, 2013 March 4, 2014 May 16, 2014 Cash $ 0.1 $ 1.2 $ — $ — $ 13.7 Other current assets 0.5 2.3 0.8 0.6 8.8 Property and equipment 15.9 11.5 15.9 3.1 220.4 Deferred tax assets, net — — 7.7 0.2 — Intangibles 0.2 18.0 19.3 11.0 60.8 Goodwill 2.9 24.0 19.8 3.4 113.8 Other assets 0.5 — 0.1 — 9.8 Total assets acquired 20.1 57.0 63.6 18.3 427.3 Current liabilities 0.7 1.0 1.3 0.5 34.8 Deferred revenue 0.2 5.1 19.2 0.4 45.1 Capital lease obligations 14.2 — — 0.2 — Deferred tax liability, net 3.0 9.6 — — 38.2 Other liabilities — — — — 3.2 Total liabilities assumed 18.1 15.7 20.5 1.1 121.3 Net assets acquired 2.0 41.3 43.1 17.2 306.0 Less cash acquired (0.1 ) (1.2 ) — — (13.7 ) Net consideration paid $ 1.9 $ 40.1 $ 43.1 $ 17.2 $ 292.3 The table below reflects the Company's estimates of the acquisition date fair values of the acquired assets and liabilities assumed from its Fiscal 2013 acquisitions (in millions): AboveNet Fibergate US Carrier First Telecom Litecast Core NAP Acquisition date July 2, 2012 August 31, 2012 October 1, 2012 December 14, 2012 December 14, 2012 May 31, 2013 Cash $ 141.6 $ 2.3 $ — $ — $ — $ — Other current assets 46.5 4.9 1.3 5.9 0.3 0.2 Property and equipment 1,477.3 59.0 19.4 63.5 0.4 2.5 Deferred tax assets, net 42.1 — 2.0 19.2 — — Intangibles 480.4 35.9 6.8 17.1 12.5 4.1 Goodwill 381.6 53.8 5.4 48.4 9.9 1.0 Other assets 12.6 — — 0.1 — — Total assets acquired 2,582.1 155.9 34.9 154.2 23.1 7.8 Current liabilities 78.4 1.5 3.7 4.6 0.2 0.5 Deferred revenue 146.0 2.5 2.2 39.9 0.7 — Other liabilities 6.1 — — — — 0.2 Deferred tax liability, net — 31.3 — — — — Total liabilities assumed 230.5 35.3 5.9 44.5 0.9 0.7 Net assets acquired 2,351.6 120.6 28.9 109.7 22.2 7.1 Cost method investment in USCarrier — — (12.8 ) — — — Less cash acquired (141.6 ) (2.3 ) — — — — Net consideration paid $ 2,210.0 $ 118.3 $ 16.1 $ 109.7 $ 22.2 $ 7.1 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (millions): June 30, 2015 2014 Deferred income tax assets Net operating loss carry forwards $ 434.0 $ 415.6 Alternate minimum tax credit carryforwards 8.4 6.3 Deferred revenue 243.5 190.7 Accrued expenses 27.9 22.4 Other liabilities 14.4 7.6 Reserves against accounts receivable 10.2 6.4 Other 17.4 2.1 Total deferred income tax assets 755.8 651.1 Valuation allowance (1.1 ) (2.2 ) Net deferred tax assets 754.7 648.9 Deferred income tax liabilities Property and equipment 468.9 374.4 Intangible assets 327.2 239.3 Debt issuance costs 18.8 27.2 Total deferred income tax liabilities 814.9 640.9 Net deferred income tax assets/(liabilities) $ (60.2 ) $ 8.0 | |
Schedule of Purchase Accounting Adjustments | The following table reflects the financial statement captions impacted by the purchase accounting adjustments: Adjusted Balance June 30, 2014 Previously Reported Balance* June 30, 2014 Purchase accounting adjustment Assets Current assets Trade receivables, net 57.2 59.0 (1.8 ) Prepaid expenses 24.9 25.6 (0.7 ) Deferred income taxes, net 161.0 160.4 0.6 Total current assets 243.1 245.0 (1.9 ) Property and equipment, net 2,822.4 2,821.4 1.0 Intangible assets, net 710.3 709.7 0.6 Goodwill 866.7 845.3 21.4 Other assets 37.7 37.8 (0.1 ) Total assets $ 4,680.2 $ 4,659.2 $ 21.0 Liabilities Current liabilities Accounts payable 26.7 27.0 (0.3 ) Accrued liabilities 172.3 159.6 12.7 Total current liabilities 199.0 186.6 12.4 Capital lease obligation, non-current 25.7 22.9 2.8 Deferred revenue, non-current 501.5 496.9 4.6 Deferred income taxes, net 153.0 151.8 1.2 Total liabilities $ 879.2 $ 858.2 $ 21.0 | |
Schedule Of Pro-Forma Financial Information | The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2014. Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenue $ $ $ $ Net loss $ $ $ $ | The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2013. Year Ended June 30, 2015 2014 Revenue $ 1,420.2 $ 1,329.6 Net loss $ (182.4 ) $ (221.5 ) |
Acquisitions [Member] | ||
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in millions): Latisys Geo AboveNet February 23, May 16, 2014 July 2, 1012 Deferred income tax assets: Net operating loss carryforwards $ 49.9 $ 2.5 $ 405.3 Deferred revenue 1.1 4.4 49.1 Accrued expenses 0.1 — 12.2 Allowance for doubtful accounts 0.3 — 2.5 Other 0.4 — — Total deferred income tax assets 51.8 6.9 469.1 Deferred income tax liabilities: Property and equipment (42.3 ) (32.9 ) (250.0 ) Intangible assets (93.1 ) (12.2 ) (177.0 ) Total deferred income tax liabilities (135.4 ) (45.1 ) (427.0 ) Net deferred income tax asset/(liabilities) $ (83.6 ) $ (38.2 ) $ 42.1 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, including assets held under capital leases, was comprised of the following (in millions): Estimated useful lives As of June 30, (in years) 2015 2014 Land N/A $ 16.2 $ 0.7 Building leasehold and site improvements 15 to 20 109.2 64.7 Furniture, fixtures and office equipment 3 to 7 5.1 5.7 Computer hardware 3 to 5 15.1 16.7 Software 3 8.3 9.3 Machinery and equipment 5 to 7 272.1 94.9 Fiber optic equipment 8 623.3 583.7 Circuit switch equipment 10 12.1 11.8 Packet switch equipment 5 76.2 62.8 Fiber optic network 15 to 20 2,715.4 2,450.8 Construction in progress N/A 437.1 259.0 Total 4,290.1 3,560.1 Less accumulated depreciation (990.9 ) (737.7 ) Property and equipment, net $ 3,299.2 $ 2,822.4 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Schedule Of Goodwill | The following reflects the changes in the carrying amount of goodwill during the six months ended December 31, 2015 : Product Group As of June 30, 2015 Fiscal 2016 Acquisitions Adjustments to Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of December 31, 2015 (in millions) Dark Fiber $ $ $ — $ $ Waves — Sonet — — Ethernet — IP — MIG — — zColo Cloud — — Other — — — Total $ $ $ $ $ During the six months ended December 31, 2015, the Company recorded adjustments to its provisional accounting estimates primarily associated with deferred tax asset balances acquired from the IdeaTek and Latisys acquisitions, which resulted in a $4.8 million reduction to goodwill | The following reflects the changes in the carrying amount of goodwill during Fiscal 2015 (in millions): Product Group As of July 1, 2014 Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of June 30, 2015 Dark Fiber $ 293.3 $ 16.0 $ (10.2 ) $ 299.1 Waves 269.0 1.4 (4.8 ) 265.6 Sonet 50.3 — — 50.3 Ethernet 96.7 8.2 (0.7 ) 104.2 IP 80.5 6.8 (1.0 ) 86.3 MIG 43.7 29.8 (0.1 ) 73.4 zColo 18.6 256.0 (1.4 ) 273.2 Cloud — 57.2 (0.2 ) 57.0 Other 14.6 0.9 (0.2 ) 15.3 Total $ 866.7 $ 376.3 $ (18.6 ) $ 1,224.4 The following reflects the changes in the carrying amount of goodwill during Fiscal 2014 (in millions): Product Group As of July 1, 2013 Fiscal 2014 Acquisitions Foreign Currency Translation and Other As of June 30, 2014 Dark Fiber $ 193.3 $ 97.4 $ 2.6 $ 293.3 Waves 215.9 49.6 3.5 269.0 Sonet 50.3 — — 50.3 Ethernet 91.7 4.9 0.1 96.7 IP 80.1 0.2 0.2 80.5 MIG 38.3 5.4 — 43.7 zColo 11.9 6.4 0.3 18.6 Other 7.3 — 7.3 14.6 Total $ 688.8 $ 163.9 $ 14.0 $ 866.7 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Schedule of Identifiable Acquisition Related Intangible Assets | Identifiable acquisition-related intangible assets as of December 31, 2015 and June 30, 2015 were as follows: Gross Carrying Amount Accumulated Amortization Net (in millions) December 31, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names — Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ | Identifiable acquisition-related intangible assets as of June 30, 2015 and 2014 were as follows (in millions): Gross Carrying Amount Accumulated Amortization Net June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ 1,080.3 $ (155.0 ) $ 925.3 Trade names 0.2 (0.1 ) 0.1 Underlying rights 1.7 (0.2 ) 1.5 Total 1,082.2 (155.3 ) 926.9 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying Rights 17.9 — 17.9 Total $ 1,103.6 $ (155.3 ) $ 948.3 June 30, 2014 Finite-Lived Intangible Assets Customer relationships $ 789.2 $ (103.6 ) $ 685.6 Trade names 0.1 — 0.1 Underlying rights 1.8 (0.1 ) 1.7 Total 791.1 (103.7 ) 687.4 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying rights 19.4 — 19.4 Total $ 814.0 $ (103.7 ) $ 710.3 |
Schedule of Estimated Future Amortization of Finite-Lived Intangible Assets | Estimated future amortization of finite-lived intangible assets is as follows (in millions): Year Ended June 30, 2016 $ 66.3 2017 66.2 2018 66.2 2019 66.2 2020 62.6 Thereafter 599.4 Total $ 926.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||
Schedule of Debt | As of December 31, 2015 and June 30, 2015 , long-term debt was as follows: December 31, June 30, 2015 2015 (in millions) Term Loan Facility due 2021 $ $ 10.125% Senior Unsecured Notes due 2020 6.00% Senior Unsecured Notes Due 2023 6.375% Senior Unsecured Notes Due 2025 Total debt obligations Unamortized discount on Term Loan Facility Unamortized premium on 6.00% Senior Unsecured Notes Unamortized debt issuance costs Carrying value of debt Less current portion Long-term debt, less current portion $ $ | As of June 30, 2015 and 2014, long-term debt was as follows (in millions): 2015 2014 Term Loan Facility due 2021 $ 1,646.8 $ 2,010.8 8.125% Senior Secured Notes due 2020 — 750.0 10.125% Senior Unsecured Notes due 2020 325.6 500.0 6.00% Senior Unsecured Notes Due 2023 1,430.0 — 6.375% Senior Unsecured Notes Due 2025 350.0 — Total debt obligations 3,752.4 3,260.8 Unamortized discount on Term Loan Facility (19.8 ) (20.6 ) Unamortized premium on 6.00% Senior Unsecured Notes 7.1 — Unamortized debt issuance costs (71.0 ) (89.4 ) Carrying value of debt 3,668.7 3,150.8 Less current portion (16.5 ) (20.5 ) Long-term debt, less current portion $ 3,652.2 $ 3,130.3 |
Schedule Of Debt Instrument Redemption Price | On or after May 1, 2020 ( for the 2025 Unsecured Notes for the 2023 Unsecured Notes July 1, 2016 (for the 2020 Unsecured Notes) Year Redemption Price (2020 Unsecured Notes) 2016 105.063% 2017 102.531% 2018 and thereafter 100.000% Year Redemption Price (2023 Unsecured Notes) 2018 104.500% 2019 103.000% 2020 101.500% 2021 and thereafter 100.000% Year Redemption Price (2025 Unsecured Notes) 2020 103.188% 2021 102.125% 2022 101.063% 2023 and thereafter 100.000% | |
Schedule of Future Contractual Maturities of Long-term Debt | Aggregate future contractual maturities of long-term debt (excluding issue discounts and premiums) were as follows as of June 30, 2015 (in millions): Year Ended June 30, 2016 $ 16.5 2017 16.5 2018 16.5 2019 16.5 2020 16.5 Thereafter 3,669.9 Total $ 3,752.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Provision for Income Taxes | The Company’s provision for income taxes from operations is summarized as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Current Income Taxes (in millions) Federal $ $ $ $ State Foreign — Total $ $ $ $ Deferred Income Taxes Federal $ $ $ $ State Foreign Total Total provision/(benefit) for income taxes $ $ $ $ | The Company’s (benefit)/provision for income taxes from operations are summarized as follows (in millions): Year Ended June 30, 2015 2014 2013 Current Income Taxes Federal $ 1.7 $ 6.3 $ — State 4.4 3.8 1.7 Foreign (1.6 ) 3.3 — Total $ 4.5 $ 13.4 $ 1.7 Deferred Income Taxes Federal $ (8.6 ) $ 26.3 $ (23.5 ) State (6.9 ) 1.2 (3.5 ) Foreign 2.3 (0.6 ) 3.5 Total (13.2 ) 26.9 (23.5 ) Total (benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) |
Schedule of Income before Income Tax | The United States and foreign components of loss from operations before income taxes for the three and six months ended December 31, 2015 and 2014 are as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) United States $ $ $ $ Foreign Total $ $ $ $ | The United States and foreign components of (loss)/benefit from operations before income taxes are as follows (in millions): Year Ended June 30, 2015 2014 2013 United States $ (159.4 ) $ (127.8 ) $ (179.5 ) Foreign $ (4.4 ) $ (9.0 ) $ 15.8 Total $ (163.8 ) $ (136.8 ) $ (163.7 ) |
Schedule Of Reconciliation Of Income Tax Provision | A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the three and six-month periods ended December 31, 2015 and 2014 is as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Expected benefit at the statutory rate $ $ $ $ Increase/(decrease) due to: Non-deductible stock-based compensation State income taxes benefit, net of federal benefit — Transactions costs not deductible for tax purposes Foreign tax rate differential Other, net Provision/(benefit) for income taxes $ $ $ $ | A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the years ended June 30, 2015, 2014 and 2013 are as follows (in millions): Year ended June 30, 2015 2014 2013 Expected benefit/provision at the statutory rate $ (57.3 ) $ (47.9 ) $ (57.1 ) Increase/(decrease) due to: Non-deductible stock-based compensation 59.4 96.5 35.6 State income taxes benefit, net of federal benefit (7.4 ) (6.3 ) (1.9 ) Transactions costs not deductible for tax purposes 0.7 0.8 1.3 Reversal of uncertain tax positions, net — (2.6 ) — State NOL adjustment — — 2.8 Change in effective tax rate (2.2 ) (0.3 ) — Change in valuation allowance — 1.3 — Foreign tax rate differential 0.6 1.0 (2.3 ) Other, net (2.5 ) (2.2 ) (0.2 ) (Benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (millions): June 30, 2015 2014 Deferred income tax assets Net operating loss carry forwards $ 434.0 $ 415.6 Alternate minimum tax credit carryforwards 8.4 6.3 Deferred revenue 243.5 190.7 Accrued expenses 27.9 22.4 Other liabilities 14.4 7.6 Reserves against accounts receivable 10.2 6.4 Other 17.4 2.1 Total deferred income tax assets 755.8 651.1 Valuation allowance (1.1 ) (2.2 ) Net deferred tax assets 754.7 648.9 Deferred income tax liabilities Property and equipment 468.9 374.4 Intangible assets 327.2 239.3 Debt issuance costs 18.8 27.2 Total deferred income tax liabilities 814.9 640.9 Net deferred income tax assets/(liabilities) $ (60.2 ) $ 8.0 | |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): Year Ended June 30, 2014 Balance, beginning of year $ 6.4 Decreases (6.4 ) Balance, end of year $ — |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities included in current liabilities consisted of the following (in millions): Year Ended June 30, 2015 2014 Accrued compensation and benefits $ 19.4 $ 13.3 Accrued property and equipment purchases 54.7 46.2 Network expense accruals 77.2 79.2 Other accrued taxes 12.7 9.3 Accrued professional fees 3.4 3.9 Other accruals 15.0 20.4 Total $ 182.4 $ 172.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Schedule of Employee Service Share-based Compensation Allocation of Recognized Period Costs | The following table summarizes the Company’s stock-based compensation expense for liability and equity classified awards included on the condensed consolidated statements of operations. Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Included in: (in millions) Operating costs $ $ $ $ Selling, general and administrative expenses Total stock-based compensation expense $ $ $ $ CII common and preferred units $ $ $ $ Part A restricted stock units Part B restricted stock units Part C restricted stock units — — Total stock-based compensation expense $ $ $ $ | The following tables summarize the Company’s stock-based compensation expense for liability and equity classified awards included in the consolidated statements of operations (in millions). Year Ended June 30, Included in: 2015 2014 2013 Operating costs $ 23.3 $ 20.2 $ 7.7 Selling, general and administrative expenses 177.4 233.5 98.1 Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 CII Common units $ 156.4 $ 253.3 $ 104.9 CII Preferred units 0.4 0.4 0.9 Part A restricted stock units 12.6 — — Part B restricted stock units 31.3 — — Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 |
Summary Of Part B RSU Issuance | The table below reflects the total Part B RSUs granted during Fiscal 2016 and 2015 , the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into, and the grant date fair value per Part B RSU: During the Three months ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 (in millions, except per share data) Part B RSUs granted Maximum eligible shares of ZGH's stock Grant date fair value per Part B RSU $ $ $ $ $ | The table below reflects the total Part B RSUs granted during each period presented, the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into shares of ZGH’s common stock and the grant date fair value per Part B RSU (in millions): During the three months ended June March 31, 2015 December 31, 2014 Part B RSUs granted 316,353 359,658 575,660 Maximum eligible shares of the Company's stock 1,490,023 1,381,086 2,210,534 Grant date fair value per Part B RSU $ 27.10 $ 24.36 $ 63.12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | As of December 31, 2015 and June 30, 2015 , there was no balance outstanding under the Company's Revolver. Financial instruments measured at fair value on a recurring basis are summarized below: Level December 31, 2015 June 30, 2015 Liabilities Recorded at Fair Value in the Financial Statements: (in millions) Interest rate swap Level 2 $ $ | Financial instruments measured at fair value on a recurring basis are summarized below Level June 30, 2015 June 30, 2014 Liabilities Recorded at Fair Value in the Financial Statements: Interest rate swap Level 2 $ 4.1 $ 2.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Contractual Capital Lease Payments | Future contractual payments under the terms of the Company’s capital lease obligations were as follows (in millions): Year Ended June 30, 2016 $ 6.4 2017 7.0 2018 5.6 2019 5.0 2020 3.8 Thereafter 17.3 Total minimum lease payments 45.1 Less amounts representing interest (12.4 ) Less current portion (4.4 ) Capital lease obligations, non-current $ 28.3 |
Schedule of Future Contractual Long-Term Operating Lease Payments | Minimum contractual lease payments due under the Company’s long-term operating leases are as follows (in millions): Year Ended June 30, 2016 $ 119.3 2017 86.9 2018 75.4 2019 62.7 2020 48.9 Thereafter 280.7 $ 673.9 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
O V S [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue and Expense Transactions Recognized | The following table represents the revenue and expense transactions the Company recorded with OVS for the periods presented: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenues $ $ $ $ Operating costs $ $ $ $ | The following table represents the revenue and expense transactions the Company recorded with OVS (in millions): Year Ended June 30, 2015 2014 2013 Revenues $ 6.9 $ 7.0 6.6 Operating costs $ 1.0 $ 1.6 1.5 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||
Summary of Financial Information by Segments | As of and for the Three months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of and for the Three months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of June 30, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Total assets $ $ $ $ $ $ | For the year ended June 30, 2015 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 531.3 648.0 144.6 23.2 — 1,347.1 Segment Adjusted EBITDA 364.3 339.2 73.8 5.3 — 782.6 Total assets 2,848.9 1,807.7 1,013.7 35.0 388.7 6,094.0 Capital expenditures, net of stimulus grant reimbursements 279.7 195.1 55.4 0.2 — 530.4 For the year ended June 30, 2014 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 419.8 606.2 75.6 28.1 — 1,129.7 Segment Adjusted EBITDA 288.2 326.7 37.4 8.0 — 660.3 Total assets 2,714.6 1,739.1 157.9 43.1 326.2 4,980.9 Capital expenditures, net of stimulus grant reimbursements 181.0 151.6 28.2 — — 360.8 For the year ended June 30, 2013 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 358.8 570.5 54.2 27.8 (0.3 ) 1,011.0 Segment Adjusted EBITDA 250.7 278.3 25.4 6.2 (0.1 ) 560.5 Total assets 2,213.2 1,685.5 98.3 32.4 122.7 4,152.1 Capital expenditures, net of stimulus grant reimbursements 165.8 143.0 14.5 — — 323.3 |
Reconciliation from net earnings/(loss) to Adjusted EBITDA by segment and on a consolidated basis | Reconciliation from Total Segment Adjusted EBITDA to net loss from operations For the year ended June 30, 2015 2014 2013 (in millions) Total Segment Adjusted EBITDA $ 782.6 $ 660.3 $ 560.5 Interest expense (214.0 ) (203.5 ) (202.5 ) Depreciation and amortization expense (406.2 ) (338.2 ) (324.5 ) Transaction costs (5.9 ) (4.5 ) (14.2 ) Stock-based compensation (200.7 ) (253.7 ) (105.8 ) Loss on extinguishment of debt (94.3 ) (1.9 ) (77.3 ) Unrealized foreign currency gain/(loss) (24.4 ) 4.7 0.1 Non-cash loss on investments (0.9 ) — — Net loss from continuing operations before provision for income taxes $ (163.8 ) $ (136.8 ) $ (163.7 ) | |
Schedule of Geographical Information | The following is a summary of geographical information (in millions): For the year ended June 30, 2015 2014 2013 Revenue from external customers: United States $ 1,193.5 $ 1,059.3 $ 953.1 United Kingdom 119.0 70.3 57.5 Japan — 0.1 0.4 France 34.6 — — Total Revenue $ 1,347.1 $ 1,129.7 $ 1,011.0 Long-lived assets: United States $ 3,848.0 $ 3,140.2 2,995.3 United Kingdom 405.3 429.9 120.2 Japan 0.3 0.3 — France 48.7 — — Total Long-lived assets $ 4,302.3 $ 3,570.4 $ 3,115.5 |
Condensed Consolidating Finan40
Condensed Consolidating Financial Information (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Condensed Consolidating Financial Information [Abstract] | ||
Schedule Of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheets (Unaudited) December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties — — Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets — Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — $ Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — — Deferred revenue, current — Total current liabilities — Long-term debt, non-current — Capital lease obligation, non-current — — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ Condensed Consolidating Balance Sheets (Unaudited) June 30, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — Deferred revenue, current — Total current liabilities Long-term debt, non-current — — — Related party debt, long-term — — — Capital lease obligation, non-current — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities — Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ | Condensed Consolidating Balance Sheets Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 274.3 $ 4.7 $ 29.0 $ — 308.0 Trade receivables, net of allowance 54.7 4.6 28.7 — 88.0 Due from related parties (1.3 ) 0.4 2.9 (1.4 ) 0.6 Prepaid expenses 25.8 4.4 7.1 — 37.3 Deferred income taxes, net 128.5 — 1.0 — 129.5 Other assets 3.6 — 0.3 — 3.9 Total current assets 485.6 14.1 69.0 (1.4 ) 567.3 Property and equipment, net 2,622.9 335.5 340.8 — 3,299.2 Intangible assets, net 605.8 239.5 103.0 — 948.3 Goodwill 762.2 281.0 181.2 — 1,224.4 Other assets 36.2 8.3 10.3 — 54.8 Related party receivable 304.8 — — (304.8 ) — Investment in subsidiary 1,050.8 — — (1,050.8 ) — Total assets $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 16.5 $ — $ — $ — 16.5 Accounts payable 26.6 4.0 9.4 — 40.0 Accrued liabilities 125.6 20.6 36.2 — 182.4 Accrued interest 57.2 — — — 57.2 Capital lease obligations, current 2.0 1.6 0.8 — 4.4 Due to related parties 1.7 — — (1.4 ) 1.3 Deferred revenue, current 73.2 2.8 10.6 — 86.6 Total current liabilities 302.8 29.0 58.0 (1.4 ) 388.4 Long-term debt, non-current 3,652.2 — — — 3,652.2 Related party debt, long-term — — 304.8 (304.8 ) — Capital lease obligation, non-current 5.6 18.6 4.1 — 28.3 Deferred revenue, non-current 559.4 4.6 48.7 — 612.7 Stock-based compensation liability 1.5 0.1 0.3 — 1.9 Deferred income taxes, net 139.2 — 50.5 — 189.7 Other long-term liabilities 13.5 10.5 2.7 — 26.7 Total liabilities 4,674.2 62.8 469.1 (306.2 ) 4,899.9 Member's equity Member's interest 1,730.1 778.1 251.2 (1,060.3 ) 1,699.1 Accumulated other comprehensive (loss)/income — — (7.9 ) — (7.9 ) Accumulated deficit (536.0 ) 37.5 (8.1 ) — (497.1 ) Total member's equity 1,194.1 815.6 235.2 (1,050.8 ) 1,194.1 Total liabilities and member's equity $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Condensed Consolidating Balance Sheets Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 256.0 $ 5.8 $ 35.6 $ — 297.4 Trade receivables, net of allowance 33.6 8.2 15.4 — 57.2 Due from related parties 0.3 — 0.6 — 0.9 Prepaid expenses 18.7 0.9 5.3 — 24.9 Deferred income taxes, net 156.0 3.5 1.5 — 161.0 Other assets 1.9 — 0.5 — 2.4 Total current assets 466.5 18.4 58.9 — 543.8 Property and equipment, net 2,389.3 109.3 323.8 — 2,822.4 Intangible assets, net 563.7 51.1 95.5 — 710.3 Goodwill 683.5 38.0 145.2 — 866.7 Other assets 23.4 3.5 10.8 — 37.7 Related party receivable 267.8 — — (267.8 ) — Investment in subsidiary 332.1 — — (332.1 ) — Total assets $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 20.5 $ — $ — $ — 20.5 Accounts payable 20.4 4.3 2.0 — 26.7 Accrued liabilities 125.0 21.0 26.3 — 172.3 Accrued interest 57.1 — — — 57.1 Capital lease obligations, current 1.5 0.9 — — 2.4 Due to related parties (0.7 ) — 0.7 — — Deferred revenue, current 56.7 1.6 17.1 — 75.4 Total current liabilities 280.5 27.8 46.1 — 354.4 Long-term debt, non-current 3,130.3 — — — 3,130.3 Related party debt, long-term — — 267.8 (267.8 ) — Capital lease obligation, non-current 5.6 18.4 1.7 — 25.7 Deferred revenue, non-current 459.5 8.6 33.4 — 501.5 Stock-based compensation liability 343.8 23.3 25.3 — 392.4 Deferred income taxes, net 93.0 — 45.3 — 153.0 Other long-term liabilities 12.3 9.8 0.2 — 22.3 Total liabilities 4,325.0 102.6 419.8 (267.8 ) 4,579.6 Member's equity Member's interest 782.2 73.8 205.0 (332.1 ) 728.9 Accumulated other comprehensive (loss)/income — — 14.4 — 14.4 Accumulated deficit (380.9 ) 43.9 (5.0 ) — (342.0 ) Total member's equity 401.3 117.7 214.4 (332.1 ) 401.3 Total liabilities and member's equity $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 |
Schedule Of Condensed Consolidating Statements Of Operations | Condensed Consolidating Statements of Operations For the three months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations For the six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the three months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — Net (loss)/earnings $ $ $ $ $ | Condensed Consolidating Statements of Operations Year Ended June 30, 2015 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 1,040.1 $ 151.6 $ 155.4 $ — $ 1,347.1 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 313.8 54.4 45.3 — 413.5 Selling, general and administrative expenses (including stock-based compensation) 266.4 38.9 52.8 — 358.1 Depreciation and amortization 321.7 42.7 41.8 — 406.2 Total operating costs and expenses 901.9 136.0 139.9 — 1,177.8 Operating income 138.2 15.6 15.5 — 169.3 Other expenses Interest expense (177.0 ) (20.3 ) (16.7 ) — (214.0 ) Loss on extinguishment of debt (91.8 ) (1.7 ) (0.8 ) — (94.3 ) Foreign currency (loss)/gain on intercompany loans (23.2 ) — (1.2 ) — (24.4 ) Other income, net (0.4 ) — — — (0.4 ) Equity in net earnings of subsidiaries (9.5 ) — — 9.5 — Total other expense, net (301.9 ) (22.0 ) (18.7 ) 9.5 (333.1 ) (Loss)/earnings before provision for income taxes (163.7 ) (6.4 ) (3.2 ) 9.5 (163.8 ) (Benefit)/provision for income taxes (8.6 ) — (0.1 ) — (8.7 ) Net (loss)/earnings $ (155.1 ) $ (6.4 ) $ (3.1 ) $ 9.5 $ (155.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2014 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 956.5 $ 102.8 $ 70.4 $ — $ 1,129.7 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 290.1 45.5 7.7 — 343.3 Selling, general and administrative expenses (including stock-based compensation) 327.3 28.3 29.0 — 384.6 Depreciation and amortization 307.6 13.8 16.8 — 338.2 Total operating costs and expenses 925.0 87.6 53.5 — 1,066.1 Operating income 31.5 15.2 16.9 — 63.6 Other expenses Interest expense (201.1 ) — (2.4 ) — (203.5 ) Loss on extinguishment of debt (1.9 ) — — — (1.9 ) Foreign currency (loss)/gain on intercompany loans 3.5 — 1.2 — 4.7 Other income, net 0.3 — — — 0.3 Equity in net earnings of subsidiaries 28.2 — — (28.2 ) — Total other expense, net (171.0 ) — (1.2 ) (28.2 ) (200.4 ) (Loss)/earnings before provision for income taxes (139.5 ) 15.2 15.7 (28.2 ) (136.8 ) (Benefit)/provision for income taxes 37.6 - 2.7 — 40.3 Net (loss)/earnings $ (177.1 ) $ 15.2 $ 13.0 $ (28.2 ) $ (177.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2013 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 876.4 $ 85.4 $ 57.9 $ (8.7 ) $ 1,011.0 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 255.5 50.4 16.9 (8.7 ) 314.1 Selling, general and administrative expenses (including stock-based compensation) 229.5 9.4 17.8 — 256.7 Depreciation and amortization 301.4 9.8 13.3 — 324.5 Total operating costs and expenses 786.4 69.6 48.0 (8.7 ) 895.3 Operating income 90.0 15.8 9.9 — 115.7 Other expenses Interest expense (202.1 ) — (0.4 ) — (202.5 ) Loss on extinguishment of debt (77.3 ) — — — (77.3 ) Foreign currency (loss)/gain on intercompany loans 0.1 — — — 0.1 Other income, net 0.2 — 0.1 — 0.3 Equity in net earnings of subsidiaries 20.7 — — (20.7 ) — Total other expense, net (258.4 ) — (0.3 ) (20.7 ) (279.4 ) (Loss)/earnings before provision for income taxes (168.4 ) 15.8 9.6 (20.7 ) (163.7 ) (Benefit)/provision for income taxes (26.5 ) — 4.7 — (21.8 ) Net (loss)/earnings $ (141.9 ) $ 15.8 $ 4.9 $ (20.7 ) $ (141.9 ) |
Schedule Of Condensed Consolidating Statements Of Cash Flows | Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired — Other Net cash used in investing activities Cash flows from financing activities: Distributions to parent Loan from Parent — — Principal payments on long-term debt — Principal repayments on capital lease obligations Excess tax benefit from stock-based compensation — — Other — — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash — — Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired Net cash used in investing activities Cash flows from financing activities: Proceeds from equity offerings and contributions Principal payments on long-term debt — Payment of early redemption fees on debt extinguished — — Payment of)/receipt from intercompany loans — — Principal repayments on capital lease obligations — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ | Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 489.3 $ 55.7 62.0 $ 607.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (436.8 ) (47.8 ) (45.8 ) (530.4 ) Acquisitions, net of cash acquired (113.5 ) (668.3 ) (73.9 ) (855.7 ) Net cash used in investing activities (550.3 ) (716.1 ) (119.7 ) (1,386.1 ) Cash flows from financing activities: Proceeds from debt 1,747.2 — 40.1 1,787.3 Proceeds from equity offerings and contributions (290.9 ) 660.7 15.2 385.0 Direct costs associated with equity offerings - — — - Principal payments on long-term debt (1,288.5 ) — — (1,288.5 ) Payment of early redemption fees on debt extinguished (62.6 ) — — (62.6 ) Principal repayments on capital lease obligations (1.7 ) (1.4 ) (0.4 ) (3.5 ) Payment of debt issuance costs (24.2 ) — — (24.2 ) Net cash provided by financing activities 79.3 659.3 54.9 793.5 Effect of changes in foreign exchange rates on cash — — (3.8 ) (3.8 ) Net (decrease)/increase in cash and cash equivalents 18.3 (1.1 ) (2.8 ) 14.4 Cash and cash equivalents, beginning of period 256.0 5.8 35.6 297.4 Cash and cash equivalents, end of period $ 274.3 $ 4.7 $ 29.0 $ 308.0 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 485.5 43.2 33.3 $ 562.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (316.6 ) (28.2 ) (16.0 ) (360.8 ) Acquisitions, net of cash acquired (83.2 ) (17.8 ) (292.3 ) (393.3 ) Net cash used in investing activities (399.8 ) (46.0 ) (308.3 ) (754.1 ) Cash flows from financing activities: Proceeds from debt 423.6 — — 423.6 Proceeds from revolving credit facility 195.0 — — 195.0 Proceeds from equity offerings and contributions 11.2 (5.6 ) — 5.6 Distribution to parent (1.2 ) — — (1.2 ) Dividends received/(paid) (70.8 ) 15.8 55.0 — Principal payments on long-term debt (18.0 ) — — (18.0 ) Principal repayments on capital lease obligations (2.1 ) (5.8 ) — (7.9 ) Payment of)/receipt from intercompany loans (251.1 ) — 251.1 — Payments on revolving credit facility (195.0 ) — — (195.0 ) Payment of debt issuance costs (4.9 ) — — (4.9 ) Net cash provided by financing activities 86.7 4.4 306.1 397.2 Effect of changes in foreign exchange rates on cash — — 1.0 1.0 Net (decrease)/increase in cash and cash equivalents 172.4 1.6 31.1 205.1 Cash and cash equivalents, beginning of period 83.6 4.2 3.5 91.3 Cash and cash equivalents, end of period $ 256.0 $ 5.8 $ 35.6 $ 297.4 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2013 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 359.3 $ 31.8 $ 13.6 $ 404.7 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (299.8 ) (14.1 ) (9.4 ) (323.3 ) Acquisitions, net of cash acquired (2,489.0 ) 0.4 7.9 (2,480.7 ) Net cash used in investing activities (2,788.8 ) (13.7 ) (1.5 ) (2,804.0 ) Cash flows from financing activities: Proceeds from debt 3,184.4 4.9 — 3,189.3 Proceeds from equity offerings and contributions 344.0 — — 344.0 Dividends received/(paid) 18.6 (18.6 ) — — Principal payments on long-term debt (1,058.6 ) — — (1,058.6 ) Payment of early redemption fees on debt extinguished (72.1 ) — — (72.1 ) Principal repayments on capital lease obligations (1.8 ) (0.1 ) — (1.9 ) Payment of)/receipt from intercompany loans 8.3 — (8.3 ) — Payment of debt issuance costs (83.1 ) — — (83.1 ) Changes in restricted cash, net 22.6 — — 22.6 Net cash provided by financing activities 2,362.3 (13.8 ) (8.3 ) 2,340.2 Effect of changes in foreign exchange rates on cash 0.1 (0.1 ) (0.3 ) (0.3 ) Net (decrease)/increase in cash and cash equivalents (67.2 ) 4.3 3.8 (59.1 ) Cash and cash equivalents, beginning of period 150.7 — — 150.7 Cash and cash equivalents, end of period $ 83.6 $ 4.2 $ 3.5 $ 91.3 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | The following table presents the unaudited quarterly results for the year ended June 30, 2015 (in millions): 2015 Quarter Ended (1) September December 31 March 31 (3) (4) June 30 Total Revenue $ 320.6 $ 323.9 $ 340.7 $ 361.9 $ 1,347.1 Operating costs and expenses Operating costs (excluding depreciation and amortization and including stock-based compensation) 107.3 97.8 100.9 107.5 413.5 Selling, general and administrative expenses (including stock-based compensation) (2) 156.6 32.1 83.0 86.4 358.1 Depreciation and amortization 96.0 96.9 100.1 113.2 406.2 Total operating costs and expenses 359.9 226.8 284.0 307.1 1,177.8 Operating income (39.3 ) 97.1 56.7 54.8 169.3 Other expenses Interest expense (46.9 ) (53.4 ) (60.7 ) (53.0 ) (214.0 ) Loss on extinguishment of debt (5) — (30.9 ) (54.9 ) (8.5 ) (94.3 ) Foreign currency (loss)/gain on intercompany loans (14.7 ) (13.3 ) (13.2 ) 16.8 (24.4 ) Other (expense)/income, net — (0.1 ) — (0.3 ) (0.4 ) Total other expenses, net (61.6 ) (97.7 ) (128.8 ) (45.0 ) (333.1 ) (Loss)/earnings from operations before income taxes (100.9 ) (0.6 ) (72.1 ) 9.8 (163.8 ) (Benefit)/provision for income taxes 9.4 (4.3 ) (18.4 ) 4.6 (8.7 ) Net (loss)/earnings $ (110.3 ) $ 3.7 $ (53.7 ) $ 5.2 $ (155.1 ) (1) The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. (2) The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12— Stock-based Compensation (3) The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. (4) The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. (5) The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8— Long-Term Debt The following table presents the unaudited quarterly results for the year ended June 30, 2014 (in millions): 2014 Quarter Ended (1) September 30 December 31 (2) (3) March 31 (4) June 30 (5) Total Revenue $ 269.7 $ 278.7 $ 283.2 $ 298.1 $ 1,129.7 Operating costs and expenses Operating costs (excluding depreciation and amortization and including stock-based compensation) 79.7 85.9 84.9 92.8 343.3 Selling, general and administrative expenses (including stock-based compensation) 76.4 87.0 96.6 124.6 384.6 Depreciation and amortization 81.0 81.7 84.2 91.3 338.2 Total operating costs and expenses 237.1 254.6 265.7 308.7 1,066.1 Operating income 32.6 24.1 17.5 (10.6 ) 63.6 Other expenses Interest expense (6) (51.5 ) (50.3 ) (49.1 ) (52.6 ) (203.5 ) Loss on extinguishment of debt (7) — (1.9 ) — — (1.9 ) Foreign currency gain on intercompany loans 0.6 0.2 0.1 3.8 4.7 Other income, net 0.1 0.3 — (0.1 ) 0.3 Total other expenses, net (50.8 ) (51.7 ) (49.0 ) (48.9 ) (200.4 ) Loss from operations before income taxes (18.2 ) (27.6 ) (31.5 ) (59.5 ) (136.8 ) Provision for income taxes 9.3 8.4 12.1 10.5 40.3 Net loss $ (27.5 ) $ (36.0 ) $ (43.6 ) $ (70.0 ) $ (177.1 ) (1) The Company realized an increase in revenue and operating expenses beginning August 1, 2013 as a result of the acquisition of Corelink. (2) The Company realized an increase in revenue and operating expenses beginning October 1, 2013 as a result of the acquisition of Access. (3) The Company realized an increase in revenue and operating expenses beginning October 2, 2013 as a result of the acquisition of Fiberlink. (4) The Company realized an increase in revenue and operating expenses beginning March 4, 2014 as a result of the acquisition of CoreXchange. (5) The Company realized an increase in revenue and operating expenses beginning May 16, 2014 as a result of the acquisition of Geo. (6) The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8— Long-Term Debt. (7) The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8— Long-Term Debt. |
Basis of Presentation and Sig42
Basis of Presentation and Significant Accounting Policies (Narrative) (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2015 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Non-current restricted cash | $ 4,800,000 | $ 5,100,000 | ||
Impairment of property, plant and equipment | 0 | 0 | $ 0 | |
Impairment of goodwill and intangibles | 0 | 0 | $ 0 | |
Unamortized debt issuance cost | $ 71,000,000 | 89,400,000 | $ 66,200,000 | |
CII [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Shares authorized | 625,000,000 | 625,000,000 | ||
Customer relationships [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Customer relationship estimated life | 16 years 3 months 18 days | |||
Senior Notes [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Unamortized debt issuance cost | $ 71,000,000 | $ 89,400,000 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Major customer concentration | 10.00% | 10.00% | 10.00% | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Major customer concentration | 10.00% | 12.00% | ||
Common Units [Member] | CII [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Shares authorized | 625,000,000 | |||
Minimum [Member] | Customer relationships [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Customer relationship estimated life | 10 years | |||
Maximum [Member] | Customer relationships [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Customer relationship estimated life | 20 years |
Basis of Presentation and Sig43
Basis of Presentation and Significant Accounting Policies (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | [1] | Jun. 30, 2014 | Jun. 30, 2013 | ||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | $ 112.2 | $ 107.5 | $ 100.9 | $ 97.8 | $ 107.3 | $ 92.8 | [4],[5] | $ 84.9 | [4],[6] | $ 85.9 | [4],[7],[8] | $ 79.7 | [4] | $ 225.2 | $ 205.1 | $ 413.5 | $ 343.3 | [4] | $ 314.1 | |||||
Transfer of Zayo Professional Services | 3.3 | 1.8 | 1.9 | 2 | 9 | |||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | $ 85 | $ 86.4 | [9] | $ 83 | [9] | $ 32.1 | [9] | $ 156.6 | [9] | 124.6 | [4],[5] | 96.6 | [4],[6] | 87 | [4],[7],[8] | 76.4 | [4] | $ 169.6 | $ 188.7 | $ 358.1 | [9] | 384.6 | [4] | $ 256.7 |
Transfer of Zayo Professional Services | 1 | 1.7 | 1.7 | 1.8 | 6.2 | |||||||||||||||||||
Scenario, Previously Reported [Member] | ||||||||||||||||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 36.2 | 35.4 | 35 | 34.9 | 141.5 | |||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 176.9 | 142.7 | 134.2 | 117.4 | 571.2 | |||||||||||||||||||
Restatement Adjustment [Member] | ||||||||||||||||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 53.3 | 47.7 | 49 | 42.8 | 192.8 | |||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | $ (53.3) | $ (47.8) | $ (48.9) | $ (42.8) | $ (192.8) | |||||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | |||||||||||||||||||||||
[9] | The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12? Stock-based Compensation. |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Detail) $ / shares in Units, € in Millions, £ in Millions, $ in Millions | Feb. 25, 2015USD ($) | Feb. 23, 2015USD ($)ft²DataCentreMarketMW | Feb. 23, 2015USD ($) | Jan. 06, 2015USD ($)CellularTowersBuildingsmi | Jan. 03, 2015 | Jan. 01, 2015USD ($)buildingitemmi | Jul. 03, 2014USD ($) | Jul. 03, 2014EUR (€) | Jul. 01, 2014USD ($) | Jul. 01, 2014EUR (€) | May. 16, 2014USD ($) | May. 16, 2014GBP (£) | Mar. 04, 2014USD ($) | Oct. 02, 2013USD ($) | Oct. 01, 2013USD ($) | Aug. 01, 2013USD ($)shares | May. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 14, 2012USD ($) | Oct. 01, 2012USD ($) | Aug. 31, 2012USD ($) | Jul. 02, 2012USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2015USD ($)Acquisition | May. 16, 2014GBP (£) | Jun. 30, 2012 |
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Number of business combinations completed | 36 | 34 | ||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 117.7 | $ 126.5 | $ 855.7 | $ 393.3 | $ 2,480.7 | |||||||||||||||||||||||||||
Deferred Tax Assets, Net | (60.2) | 8 | $ (60.2) | |||||||||||||||||||||||||||||
Net operating loss carry forwards generated | 1,115 | 1,115 | ||||||||||||||||||||||||||||||
Acquisition related costs | $ 3.3 | $ 1.3 | $ 3.3 | 4.6 | $ 5.9 | 4.5 | 14.2 | |||||||||||||||||||||||||
Neo Telecoms [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | Jul. 1, 2014 | |||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 96.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 73.9 | € 54.1 | $ 73.9 | € 54.1 | $ 73.9 | $ 73.9 | ||||||||||||||||||||||||||
Purchase price, held in escrow | $ 11.9 | € 8.7 | ||||||||||||||||||||||||||||||
Business acquisition percentage of non controlling interest | 4.00% | |||||||||||||||||||||||||||||||
Neo Telecoms [Member] | Other long-term liabilities [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Business acquisition, fair value of noncontrolling interest | $ 2.9 | |||||||||||||||||||||||||||||||
Neo Telecoms [Member] | Call Option [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 4.00% | |||||||||||||||||||||||||||||||
Atlanta NAP [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | Jul. 1, 2014 | |||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 51.9 | |||||||||||||||||||||||||||||||
Purchase price, held in escrow | $ 5.3 | |||||||||||||||||||||||||||||||
Ideatek Systems, Inc., [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Jan. 1, 2015 | Jan. 1, 2015 | Jan. 1, 2015 | |||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 52.7 | $ 52.7 | $ 52.7 | |||||||||||||||||||||||||||||
Purchase price, held in escrow | $ 3.2 | |||||||||||||||||||||||||||||||
Additional Route Miles Acquired | mi | 1,800 | 1,800 | ||||||||||||||||||||||||||||||
Number Of Additional Cellular Towers connected | 600 | 600 | ||||||||||||||||||||||||||||||
Number Of Additional Building connected | 100 | 100 | ||||||||||||||||||||||||||||||
Latisys Holdings, LLC [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Feb. 23, 2015 | Feb. 23, 2015 | Feb. 23, 2015 | |||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 677.5 | $ 677.5 | $ 677.8 | $ 677.5 | ||||||||||||||||||||||||||||
Purchase price, held in escrow | $ 31.4 | |||||||||||||||||||||||||||||||
Number of data center | DataCentre | 8 | |||||||||||||||||||||||||||||||
Number of market | Market | 5 | |||||||||||||||||||||||||||||||
Acquired area in square feet | ft² | 185,000 | |||||||||||||||||||||||||||||||
Critical power acquired | MW | 33 | |||||||||||||||||||||||||||||||
Deferred Tax Assets, Net | $ (83.6) | $ (83.6) | (83.6) | (83.6) | ||||||||||||||||||||||||||||
Net operating loss carry forwards generated | $ 126.3 | 126.3 | ||||||||||||||||||||||||||||||
Corelink Data Centers, LLC [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Aug. 1, 2013 | Aug. 1, 2013 | ||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 0.3 | |||||||||||||||||||||||||||||||
Net assets acquired | $ 1.9 | |||||||||||||||||||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 301,949 | |||||||||||||||||||||||||||||||
Business acquisition, equity interest issued or issuable, value assigned | $ 1.6 | |||||||||||||||||||||||||||||||
Access Communications, Inc [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Oct. 1, 2013 | Oct. 1, 2013 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 40.1 | 40.1 | ||||||||||||||||||||||||||||||
Purchase price, held in escrow | $ 4 | |||||||||||||||||||||||||||||||
Fiberlink, LLC [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Oct. 2, 2013 | Oct. 2, 2013 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 43.1 | 43.1 | ||||||||||||||||||||||||||||||
CoreXchange [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Mar. 4, 2014 | Apr. 3, 2014 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 17.2 | $ (0.3) | 17.5 | |||||||||||||||||||||||||||||
Geo Networks Limited [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | May 16, 2014 | May 16, 2014 | May 16, 2014 | |||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | 100.00% | ||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 292.3 | £ 174.3 | $ 292.3 | |||||||||||||||||||||||||||||
Deferred Tax Assets, Net | $ (38.2) | $ (38.2) | (38.2) | |||||||||||||||||||||||||||||
Geo Networks Limited [Member] | Note Holders Payable [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Debt payment related to business acquisition | £ | £ 113.4 | |||||||||||||||||||||||||||||||
Geo Networks Limited [Member] | Shareholders | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Debt payment related to business acquisition | £ | £ 69.1 | |||||||||||||||||||||||||||||||
Abovenet, Inc [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Jul. 2, 2012 | Jul. 2, 2012 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 2,210 | 2,210 | ||||||||||||||||||||||||||||||
Share price | $ / shares | $ 84 | |||||||||||||||||||||||||||||||
Deferred Tax Assets, Net | $ 42.1 | $ 42.1 | 42.1 | |||||||||||||||||||||||||||||
Net operating loss carry forwards generated | $ 1,008.8 | $ 1,008.8 | ||||||||||||||||||||||||||||||
FiberGate [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Aug. 31, 2012 | Aug. 31, 2012 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 118.3 | 118.3 | ||||||||||||||||||||||||||||||
Purchase price, held in escrow | $ 17.6 | |||||||||||||||||||||||||||||||
American Fiber Systems Holding Corporation [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Oct. 1, 2010 | |||||||||||||||||||||||||||||||
USCarrier Telecom, LLC [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Oct. 1, 2012 | Oct. 1, 2012 | ||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 16.1 | 16.1 | ||||||||||||||||||||||||||||||
USCarrier Telecom, LLC [Member] | Common Class A [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 55.00% | |||||||||||||||||||||||||||||||
USCarrier Telecom, LLC [Member] | Common Class B [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 34.00% | |||||||||||||||||||||||||||||||
First Telecom Services, LLC [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Dec. 14, 2012 | Dec. 14, 2012 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 109.7 | 109.7 | ||||||||||||||||||||||||||||||
Litecast/Balticore, LLC [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | Dec. 14, 2012 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 22.2 | $ 22.2 | 22.2 | |||||||||||||||||||||||||||||
Core NAP, LP [Member] | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||
Acquisition date | May 31, 2013 | May 31, 2013 | ||||||||||||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 7.1 | $ 7.1 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 351.4 | $ 294.2 | $ 280.1 |
Capitalized interest | 12.5 | 12.6 | 13 |
Capitalized labor costs included in fixed assets | 58.3 | $ 42.7 | $ 28.6 |
Wrote-off of depreciated property and equipment | $ 93.4 |
Goodwill (Narrative) (Detail)
Goodwill (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 1,222.2 | $ 1,224.4 | $ 866.7 | $ 688.8 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Acquired Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 54.8 | $ 44 | $ 44.4 |
Amortized intangible assets write off | $ 3.5 | $ 27.2 | |
Customer relationships [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Customer relationship estimated life | 16 years 3 months 18 days | ||
Trade names [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Customer relationship estimated life | 1 year | ||
Underlying rights [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Customer relationship estimated life | 20 years |
Long-Term Debt (Summary of Long
Long-Term Debt (Summary of Long-Term Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | May. 06, 2015 | Jun. 30, 2014 | Jul. 02, 2012 |
Debt Instrument [Line Items] | |||||
Debt obligations | $ 3,744.1 | $ 3,752.4 | $ 3,260.8 | ||
Unamortized debt issuance costs | (66.2) | (71) | (89.4) | ||
Carrying value of debt | 3,666.3 | 3,668.7 | 3,150.8 | ||
Less current portion | (16.5) | (16.5) | (20.5) | ||
Long-term debt, less current portion | 3,649.8 | 3,652.2 | 3,130.3 | ||
Term Loan Facility due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 1,638.5 | 1,646.8 | 2,010.8 | ||
Unamortized discount on Term Loan Facility | (18.3) | (19.8) | (20.6) | $ (30) | |
Carrying value of debt | 1,620.2 | 1,627 | 1,990.2 | ||
Secured Debt [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 750 | ||||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized premium on 6.00% Senior Unsecured Notes | 6.7 | 7.1 | |||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 325.6 | 325.6 | $ 500 | ||
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 1,430 | 1,430 | |||
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | $ 350 | $ 350 | $ 344.5 |
Long-Term Debt (Summary of Lo49
Long-Term Debt (Summary of Long-Term Debt) (Parenthetical) (Detail) | May. 06, 2015 | Jul. 02, 2012 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 09, 2015 |
10.125% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10.125% | |||||||
Maturity date | 2,020 | |||||||
Secured Debt [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 8.125% | 8.125% | 8.125% | |||||
Maturity date | 2,020 | 2,020 | 2,020 | |||||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10.125% | 10.125% | 10.125% | 10.125% | ||||
Maturity date | 2,020 | 2,020 | 2,020 | |||||
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |||
Maturity date | 2,023 | 2,023 | 2,023 | 2,023 | ||||
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | |||
Maturity date | 2,025 | 2,025 | 2,025 | 2,025 | ||||
Term Loan Facility due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | 2,021 | 2,021 | 2,021 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Detail) - USD ($) | May. 06, 2015 | May. 06, 2015 | Apr. 17, 2015 | Dec. 31, 2014 | Dec. 15, 2014 | Dec. 15, 2014 | May. 16, 2014 | Nov. 26, 2013 | Oct. 05, 2012 | Jul. 02, 2012 | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [5],[6],[7],[8] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 09, 2015 | Jan. 23, 2015 | Aug. 13, 2012 | |||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (65,000,000) | $ (8,500,000) | [1],[2] | $ (54,900,000) | [1],[2],[3],[4] | $ (30,900,000) | [1],[2] | $ (1,900,000) | $ (30,900,000) | $ (94,300,000) | [1],[2] | $ (1,900,000) | [5],[6] | $ (77,300,000) | ||||||||||||||||
Payment of early redemption fees on debt extinguished | 23,800,000 | 62,600,000 | 72,100,000 | |||||||||||||||||||||||||||
Write-off of unamortized debt issuance costs | 17,000,000 | |||||||||||||||||||||||||||||
Debt issuance cost | $ 99,500,000 | 99,300,000 | ||||||||||||||||||||||||||||
Proceeds from debt | 1,787,300,000 | 423,600,000 | 3,189,300,000 | |||||||||||||||||||||||||||
Redemption of notes | 8,300,000 | 259,700,000 | 1,288,500,000 | 18,000,000 | 1,058,600,000 | |||||||||||||||||||||||||
Redemption premium | 23,800,000 | |||||||||||||||||||||||||||||
Outstanding letters of credit | 9,200,000 | 9,200,000 | ||||||||||||||||||||||||||||
Debt obligations | $ 3,744,100,000 | 3,752,400,000 | 3,744,100,000 | 3,752,400,000 | 3,260,800,000 | |||||||||||||||||||||||||
Outstanding letters of credit | 9,200,000 | 9,200,000 | 9,200,000 | 9,200,000 | ||||||||||||||||||||||||||
Unamortized debt issuance cost | 66,200,000 | 71,000,000 | 66,200,000 | 71,000,000 | 89,400,000 | |||||||||||||||||||||||||
Accumulated amortization | 33,300,000 | 28,300,000 | 33,300,000 | 28,300,000 | 25,400,000 | |||||||||||||||||||||||||
Unamortized debt issuance related interest | $ 2,500,000 | 3,800,000 | $ 5,000,000 | 7,500,000 | $ 13,900,000 | 13,900,000 | 11,500,000 | |||||||||||||||||||||||
Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Percentage of excess revolver committed to debt payments | 35.00% | 35.00% | ||||||||||||||||||||||||||||
Senior Secured Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 1,620,000,000 | 1,620,000,000 | ||||||||||||||||||||||||||||
Standby Letter Of Credit [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Unused commitment, percentage | 0.25% | 0.25% | ||||||||||||||||||||||||||||
8.125% Senior First Priority Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Redemption of notes | $ 75,000,000 | |||||||||||||||||||||||||||||
10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||||||||||||||||
Interest rate | 10.125% | 10.125% | ||||||||||||||||||||||||||||
Maturity date | 2,020 | |||||||||||||||||||||||||||||
Redemption premium | 23,800,000 | |||||||||||||||||||||||||||||
Second Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (900,000) | |||||||||||||||||||||||||||||
Debt issuance cost | 15,300,000 | |||||||||||||||||||||||||||||
Second Amendment [Member] | Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Floor rate | 5.25% | |||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (1.875%) | |||||||||||||||||||||||||||||
Call premiums | 16,200,000 | |||||||||||||||||||||||||||||
Fourth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (1,100,000) | |||||||||||||||||||||||||||||
Debt issuance cost | 15,000,000 | |||||||||||||||||||||||||||||
Fourth Amendment [Member] | Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.50%) | |||||||||||||||||||||||||||||
Call premiums | 16,100,000 | |||||||||||||||||||||||||||||
Fourth Amendment [Member] | Original Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.50%) | |||||||||||||||||||||||||||||
Second And Fourth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Payment of early redemption fees on debt extinguished | 12,200,000 | |||||||||||||||||||||||||||||
Fifth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (1,900,000) | |||||||||||||||||||||||||||||
Debt issuance cost | 1,500,000 | |||||||||||||||||||||||||||||
Sixth Amendment [Member] | Senior Secured Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 2,015,900,000 | |||||||||||||||||||||||||||||
Discount on debt | 1,400,000 | |||||||||||||||||||||||||||||
Debt issuance cost | 3,200,000 | |||||||||||||||||||||||||||||
Proceeds from debt | $ 275,000,000 | |||||||||||||||||||||||||||||
Increase in price, percentage | 99.50% | |||||||||||||||||||||||||||||
6.00% Senior Notes due 2023 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Proceeds from debt | $ 1,437,300,000 | $ 1,437,300,000 | ||||||||||||||||||||||||||||
January Notes Offering [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||||||||||||||||||||
March Notes Offering [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 730,000,000 | |||||||||||||||||||||||||||||
Debt Instrument Issuance At Premium Price Percentage | 1.00% | 1.00% | ||||||||||||||||||||||||||||
Premium on debt being accreted | $ 7,300,000 | $ 7,300,000 | $ 7,300,000 | $ 7,300,000 | ||||||||||||||||||||||||||
Seventh Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Outstanding letters of credit | $ 30,000,000 | |||||||||||||||||||||||||||||
Outstanding letters of credit increased | 50,000,000 | |||||||||||||||||||||||||||||
December 15, 2014 [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 108.125% | |||||||||||||||||||||||||||||
LIBOR [Member] | Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 3.50% | |||||||||||||||||||||||||||||
LIBOR [Member] | Second Amendment [Member] | Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 4.00% | |||||||||||||||||||||||||||||
LIBOR [Member] | Fourth Amendment [Member] | Original Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 3.00% | |||||||||||||||||||||||||||||
LIBOR [Member] | Sixth Amendment [Member] | Senior Secured Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 3.00% | |||||||||||||||||||||||||||||
Interest Rate Floor [Member] | Original Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate | 4.50% | 4.50% | ||||||||||||||||||||||||||||
Minimum [Member] | Fourth Amendment [Member] | Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.25%) | |||||||||||||||||||||||||||||
Minimum [Member] | LIBOR [Member] | Sixth Amendment [Member] | Senior Secured Term Loan Facility [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 1.00% | |||||||||||||||||||||||||||||
Interest Rate Swap [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Notional amount of derivative | $ 750,000,000 | |||||||||||||||||||||||||||||
Derivative, maturity date | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Derivative, fixed interest rate | 1.67% | |||||||||||||||||||||||||||||
Derivative, floor rate | 1.25% | |||||||||||||||||||||||||||||
Change in fair value of interest rate swap | 1,000,000 | 1,500,000 | $ 600,000 | $ (500,000) | $ 2,100,000 | 4,600,000 | 2,600,000 | |||||||||||||||||||||||
Interest Rate Derivative Liabilities, at Fair Value | $ 3,500,000 | $ 4,100,000 | $ 3,500,000 | $ 4,100,000 | $ 2,000,000 | |||||||||||||||||||||||||
Early Redemption Fees [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Payment of early redemption fees on debt extinguished | $ 39,800,000 | |||||||||||||||||||||||||||||
2020 Secured Notes [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | ||||||||||||||||||||||||||||
Interest rate | 8.125% | 8.125% | ||||||||||||||||||||||||||||
Maturity date | 2,020 | |||||||||||||||||||||||||||||
2020 Unsecured Notes [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||||||
Total indebtedness ratio | 5.25% | 5.25% | ||||||||||||||||||||||||||||
2020 Unsecured Notes [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||||||||||||||||
Interest rate | 10.125% | 10.125% | ||||||||||||||||||||||||||||
Maturity date | 2,020 | |||||||||||||||||||||||||||||
2020 Unsecured Notes [Member] | Second Note Redemption [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 105.063% | |||||||||||||||||||||||||||||
Credit Agreement [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Percentage of effective interest rate | 3.75% | 3.75% | ||||||||||||||||||||||||||||
Credit Agreement [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Percentage of effective interest rate | 3.00% | 3.00% | ||||||||||||||||||||||||||||
Credit Agreement [Member] | Senior Secured Revolving Credit Facility | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 | ||||||||||||||||||||||||||||
Credit Agreement [Member] | Fourth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.50%) | |||||||||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Maturity date | 2,021 | 2,021 | 2,021 | |||||||||||||||||||||||||||
Discount on debt | 30,000,000 | 30,000,000 | $ 18,300,000 | $ 19,800,000 | $ 18,300,000 | $ 19,800,000 | $ 20,600,000 | |||||||||||||||||||||||
Payment towards principal | $ 5,100,000 | |||||||||||||||||||||||||||||
Percentage of excess cash flows committed to debt payments | 50.00% | |||||||||||||||||||||||||||||
Line of credit facility maturity date | Jul. 31, 2019 | |||||||||||||||||||||||||||||
Write-off of unamortized debt issuance costs | (8,200,000) | |||||||||||||||||||||||||||||
Debt obligations | $ 1,638,500,000 | $ 1,646,800,000 | $ 1,638,500,000 | $ 1,646,800,000 | $ 2,010,800,000 | |||||||||||||||||||||||||
Percentage of effective interest rate | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | Fifth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 1,749,800,000 | |||||||||||||||||||||||||||||
Payment of early redemption fees on debt extinguished | (1,000,000) | |||||||||||||||||||||||||||||
Write-off of unamortized debt issuance costs | $ (900,000) | |||||||||||||||||||||||||||||
Proceeds from debt | $ 150,000,000 | |||||||||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | LIBOR [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 2.75% | 2.75% | ||||||||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | Minimum [Member] | LIBOR [Member] | Fifth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 1.00% | |||||||||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | Maximum [Member] | LIBOR [Member] | Fifth Amendment [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 3.00% | |||||||||||||||||||||||||||||
Secured Debt [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Redemption of notes | $ 75,000,000 | |||||||||||||||||||||||||||||
Secured Debt [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility maturity date | Apr. 17, 2020 | |||||||||||||||||||||||||||||
Outstanding letters of credit increased | $ 50,000,000 | $ 50,000,000 | ||||||||||||||||||||||||||||
Outstanding letters of credit | 0 | $ 0 | 0 | $ 0 | ||||||||||||||||||||||||||
Available borrowing capacity | $ 440,800,000 | $ 440,800,000 | $ 440,800,000 | $ 440,800,000 | ||||||||||||||||||||||||||
Debt instrument, maturity date | Jan. 31, 2020 | |||||||||||||||||||||||||||||
Secured Debt [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate | 8.125% | 8.125% | 8.125% | 8.125% | ||||||||||||||||||||||||||
Maturity date | 2,020 | 2,020 | 2,020 | |||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 105.75 | |||||||||||||||||||||||||||||
Redemption of notes | 675,000,000 | $ 675,000,000 | ||||||||||||||||||||||||||||
Redemption premium | $ 38,800,000 | $ 38,800,000 | ||||||||||||||||||||||||||||
Debt obligations | $ 750,000,000 | |||||||||||||||||||||||||||||
Secured Debt [Member] | Fifth Amendment [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.25%) | |||||||||||||||||||||||||||||
Secured Debt [Member] | Seventh Amendment [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 200,000,000 | $ 450,000,000 | $ 450,000,000 | |||||||||||||||||||||||||||
Line of credit facility maturity date | Jul. 2, 2020 | |||||||||||||||||||||||||||||
Secured Debt [Member] | December 15, 2014 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 108.125% | |||||||||||||||||||||||||||||
Secured Debt [Member] | Second Note Redemption [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 105.75% | |||||||||||||||||||||||||||||
Secured Debt [Member] | LIBOR [Member] | Fourth Amendment [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 2.75% | |||||||||||||||||||||||||||||
Secured Debt [Member] | Minimum [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Unused commitment, percentage | 0.25% | 0.25% | ||||||||||||||||||||||||||||
Secured Debt [Member] | Minimum [Member] | LIBOR [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 2.00% | 2.00% | ||||||||||||||||||||||||||||
Secured Debt [Member] | Maximum [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Unused commitment, percentage | 0.375% | 0.375% | ||||||||||||||||||||||||||||
Secured Debt [Member] | Maximum [Member] | LIBOR [Member] | Revolver [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 3.00% | 3.00% | ||||||||||||||||||||||||||||
Unsecured Debt [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Redemption of notes | $ 174,400,000 | |||||||||||||||||||||||||||||
Premium on debt being accreted | $ 6,700,000 | $ 7,100,000 | $ 6,700,000 | $ 7,100,000 | ||||||||||||||||||||||||||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate | 10.125% | 10.125% | 10.125% | 10.125% | 10.125% | |||||||||||||||||||||||||
Maturity date | 2,020 | 2,020 | 2,020 | |||||||||||||||||||||||||||
Redemption of notes | $ 174,400,000 | |||||||||||||||||||||||||||||
Debt obligations | $ 325,600,000 | $ 325,600,000 | $ 325,600,000 | $ 325,600,000 | $ 500,000,000 | |||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||||||
Total indebtedness ratio | 525.00% | 525.00% | ||||||||||||||||||||||||||||
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||||||
Maturity date | 2,023 | 2,023 | 2,023 | 2,023 | ||||||||||||||||||||||||||
Line of credit facility maturity date | Apr. 1, 2023 | Apr. 1, 2023 | ||||||||||||||||||||||||||||
Debt obligations | $ 1,430,000,000 | $ 1,430,000,000 | $ 1,430,000,000 | $ 1,430,000,000 | ||||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||||||
Total indebtedness ratio | 600.00% | 600.00% | ||||||||||||||||||||||||||||
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | ||||||||||||||||||||||||||||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | |||||||||||||||||||||||
Maturity date | 2,025 | 2,025 | 2,025 | 2,025 | ||||||||||||||||||||||||||
Line of credit facility maturity date | May 15, 2025 | May 15, 2025 | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (8,400,000) | $ (8,400,000) | ||||||||||||||||||||||||||||
Revolver interest rate | 6.375% | |||||||||||||||||||||||||||||
Debt obligations | $ 344,500,000 | 344,500,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||||||
Total indebtedness ratio | 600.00% | 600.00% | ||||||||||||||||||||||||||||
Unsecured Debt [Member] | December 15, 2014 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 110.125% | |||||||||||||||||||||||||||||
Unsecured Debt [Member] | December 15, 2014 [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 110.125% | |||||||||||||||||||||||||||||
Unsecured Debt [Member] | December 15, 2014 [Member] | 6.00% Senior Notes due 2023 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||||||||||||||||||||||
Unsecured Debt [Member] | Second Note Redemption [Member] | 6.00% Senior Notes due 2023 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 104.50% | |||||||||||||||||||||||||||||
Term Loan Facility [Member] | Amendment and Restatement Agreement [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 450,000,000 | 450,000,000 | ||||||||||||||||||||||||||||
Payment towards principal | $ 4,100,000 | |||||||||||||||||||||||||||||
Percentage of excess cash flows committed to debt payments | 50.00% | |||||||||||||||||||||||||||||
Term Loan Facility [Member] | LIBOR [Member] | Amendment and Restatement Agreement [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 2.75% | 2.75% | ||||||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.25%) | (25.00%) | ||||||||||||||||||||||||||||
Term Loan Facility [Member] | Minimum [Member] | LIBOR [Member] | Amendment and Restatement Agreement [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Revolver interest rate | 1.00% | 1.00% | ||||||||||||||||||||||||||||
Unamortized Debt Discount | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 7,100,000 | $ (23,200,000) | $ (700,000) | $ (42,300,000) | ||||||||||||||||||||||||||
[1] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | |||||||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||||||||
[5] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. | |||||||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Long-Term Debt (Redemption Righ
Long-Term Debt (Redemption Rights) (Detail) | 12 Months Ended |
Jun. 30, 2015 | |
2020 Unsecured Notes [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 105.063% |
2020 Unsecured Notes [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 102.531% |
2020 Unsecured Notes [Member] | 8.125% Senior First Priority Notes due 2020 [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 104.50% |
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 103.00% |
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 101.50% |
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | Debt Instrument, Redemption, Period Fourth And There After [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | Debt Instrument Redemption Period Fifth | |
Debt Instrument [Line Items] | |
Redemption price | 103.188% |
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | Debt Instrument Redemption Period Sixth | |
Debt Instrument [Line Items] | |
Redemption price | 102.125% |
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | Debt Instrument Redemption Period Seven | |
Debt Instrument [Line Items] | |
Redemption price | 101.063% |
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | Debt Instrument Redemption Period Seventh And There After | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Income Taxes (Summary of (Benef
Income Taxes (Summary of (Benefit)/Provision for Income Taxes from Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Current Income Taxes | ||||||||||||||||||||||||
Federal income taxes – current | $ 0.7 | $ 1.6 | $ 0.8 | $ 3.1 | $ 1.7 | $ 6.3 | ||||||||||||||||||
State income taxes – current | 3.1 | 0.9 | 3.5 | 1.8 | 4.4 | 3.8 | $ 1.7 | |||||||||||||||||
Foreign income taxes- current | 1 | 1.2 | 0.8 | (1.6) | 3.3 | |||||||||||||||||||
Current Income Tax Expense (Benefit), Total | 4.8 | 2.5 | 5.5 | 5.7 | 4.5 | 13.4 | 1.7 | |||||||||||||||||
Deferred Income Taxes | ||||||||||||||||||||||||
Federal income taxes – deferred | 8.2 | (5.2) | 9.9 | 1.1 | (8.6) | 26.3 | (23.5) | |||||||||||||||||
State income taxes – deferred | (2) | (1.4) | (2.2) | (1.2) | (6.9) | 1.2 | (3.5) | |||||||||||||||||
Foreign income taxes deferred | 0.1 | (0.2) | 0.6 | (0.5) | 2.3 | (0.6) | 3.5 | |||||||||||||||||
Deferred Income Tax Expense (Benefit), Total | 6.3 | (6.8) | 8.3 | (0.6) | (13.2) | 26.9 | (23.5) | |||||||||||||||||
Total (benefit)/provision for income taxes | $ 11.1 | $ 4.6 | $ (18.4) | $ (4.3) | [1] | $ 9.4 | $ 10.5 | $ 12.1 | $ 8.4 | $ 9.3 | $ 13.8 | $ 5.1 | $ (8.7) | [1] | $ 40.3 | [4] | $ (21.8) | |||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Income Taxes Income_(Loss) from
Income Taxes Income/(Loss) from Operations Before Income Tax) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||
United States | $ 1.6 | $ 0.1 | $ (12.1) | $ (92.2) | $ (159.4) | $ (127.8) | $ (179.5) | |||||||||||||||||
Foreign | (1.3) | (0.7) | (0.1) | (9.3) | (4.4) | (9) | 15.8 | |||||||||||||||||
Loss before income taxes | $ 0.3 | $ 9.8 | $ (72.1) | $ (0.6) | [1] | $ (100.9) | $ (59.5) | $ (31.5) | $ (27.6) | $ (18.2) | $ (12.2) | $ (101.5) | $ (163.8) | [1] | $ (136.8) | [4] | $ (163.7) | |||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Income Taxes (Reconciliations o
Income Taxes (Reconciliations of Actual Income Tax Provision and Tax Computed by Applying United States Federal Rate to Earnings Before Income Taxes) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||
Expected benefit/provision at the statutory rate | $ (0.1) | $ (0.3) | $ (4.3) | $ (35.6) | $ (57.3) | $ (47.9) | $ (57.1) | |||||||||||||||||
Non-deductible stock-based compensation | 10 | (5.1) | 17.4 | 42.1 | 59.4 | 96.5 | 35.6 | |||||||||||||||||
State income taxes benefit, net of federal benefit | 0.1 | (0.5) | (4.5) | (7.4) | (6.3) | (1.9) | ||||||||||||||||||
Transactions costs not deductible for tax purposes | 0.5 | 0.1 | 0.5 | 0.4 | 0.7 | 0.8 | 1.3 | |||||||||||||||||
Reversal of uncertain tax positions, net | (2.6) | |||||||||||||||||||||||
State NOL adjustment | 2.8 | |||||||||||||||||||||||
Change in effective tax rate | (2.2) | (0.3) | ||||||||||||||||||||||
Change in valuation allowance | 1.3 | |||||||||||||||||||||||
Foreign tax rate differential | 0.4 | (0.3) | 0.3 | 0.8 | 0.6 | 1 | (2.3) | |||||||||||||||||
Other, net | 0.2 | 1.3 | 0.4 | 1.9 | (2.5) | (2.2) | (0.2) | |||||||||||||||||
Total (benefit)/provision for income taxes | $ 11.1 | $ 4.6 | $ (18.4) | $ (4.3) | [1] | $ 9.4 | $ 10.5 | $ 12.1 | $ 8.4 | $ 9.3 | $ 13.8 | $ 5.1 | $ (8.7) | [1] | $ 40.3 | [4] | $ (21.8) | |||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards generated | $ 1,115 | |
Net operating loss expected annual utilization | 95.9 | |
Current annual net operating loss usage | 485.9 | |
Release of accrual for uncertain tax position | 2.6 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards generated | 11.6 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards generated | $ 38.7 | |
Minimum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards, expiration year | 2,020 | |
Maximum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards, expiration year | 2,032 | |
Scenario, Forecast [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards generated | $ 185.9 |
Equity (Narrative) (Detail)
Equity (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stockholders Equity Note [Line Items] | ||||
Capital (distributed)/contributed (non-cash) | $ 385 | $ 5.6 | $ 344 | |
Member's equity decrease during the year | $ 6 | $ 5.3 | ||
Corelink [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Business acquisition, equity interest issued or issuable, number of shares | 301,949 | |||
Business acquisition, equity interest issued or issuable, value assigned | $ 1.6 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock-based Compensation Expense Liability and Equity Classified Awards Included in Consolidated Statements of Operations) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | $ 200.7 | $ 253.7 | $ 105.8 | ||||
Operating Expense [Member] | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | 23.3 | 20.2 | 7.7 | ||||
Selling, General and Administrative Expenses [Member] | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | 177.4 | 233.5 | 98.1 | ||||
Part A Restricted Stock Units [Member] | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | 12.6 | ||||||
Part B Restricted Stock Units [Member] | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | $ 6 | $ 4.7 | $ 22.4 | $ 4.7 | 31.3 | ||
CII [Member] | Common Units [Member] | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | $ 13.3 | $ 109.8 | 156.4 | 253.3 | 104.9 | ||
CII [Member] | Preferred Units [Member] | |||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||||
Total stock-based compensation expense | $ 0.4 | $ 0.4 | $ 0.9 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Detail) - USD ($) $ in Millions | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 09, 2014 | Oct. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2015 | Mar. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Reclassification of common unit liability to additional paid in capital | $ 490.2 | ||||||||||||
Vesting date | May 15, 2017 | May 15, 2017 | |||||||||||
Common stock distributed in connection with non-liquidating distribution | 20,460,047 | 20,460,047 | |||||||||||
Total stock-based compensation expense | $ 200.7 | $ 253.7 | $ 105.8 | ||||||||||
Award recorded as liability | $ 1.9 | 392.4 | |||||||||||
PCIP [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Incentive plan termination period | 10 years | 10 years | |||||||||||
CII [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares authorized | 625,000,000 | 625,000,000 | 625,000,000 | ||||||||||
Common unit unvested | 29,555 | 29,555 | |||||||||||
Unrecognized compensation cost | $ 37.5 | $ 37.5 | |||||||||||
Common stock distributed in exchange for vested preferred units | 256,265 | 256,265 | |||||||||||
Part A Restricted Stock Units [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
RSUs outstanding | 933,217 | ||||||||||||
Common unit unvested | 1,746,847 | 1,746,847 | 933,217 | ||||||||||
Total stock-based compensation expense | $ 12.6 | ||||||||||||
Unrecognized compensation cost | $ 18.7 | $ 18.7 | 12.6 | ||||||||||
Award recorded as liability | $ 2 | $ 2 | $ 1.9 | ||||||||||
Part B Restricted Stock Units [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
RSUs outstanding | 1,249,873 | ||||||||||||
Shares authorized | 1,449,860 | 2,222,048 | 1,449,860 | 2,222,048 | 1,490,023 | 1,426,812 | 1,388,280 | ||||||
Common unit unvested | 830,607 | 830,607 | 1,249,873 | ||||||||||
Total stock-based compensation expense | $ 6 | $ 4.7 | $ 22.4 | $ 4.7 | $ 31.3 | ||||||||
Unrecognized compensation cost | 8.2 | 8.2 | $ 21.9 | ||||||||||
Common Units [Member] | CII [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares authorized | 625,000,000 | ||||||||||||
Common unit unvested | 6,353,302 | 6,353,302 | |||||||||||
Common stock distributed for existing share holders | 10,294,867 | 10,294,867 | |||||||||||
Total stock-based compensation expense | 13.3 | 109.8 | $ 156.4 | 253.3 | 104.9 | ||||||||
Unrecognized compensation cost | 70.2 | ||||||||||||
Preferred Units [Member] | CII [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Total stock-based compensation expense | 0.4 | $ 0.4 | $ 0.9 | ||||||||||
Vested Portion of Part A Restricted Stock Units [Member] | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Total stock-based compensation expense | $ 10.2 | $ 2.6 | $ 20.2 | $ 2.6 | $ 12.6 |
Stock-Based Compensation (Sum59
Stock-Based Compensation (Summary Of Part B RSUs Granted, Maximum Eligible Shares Of Stock And Grant Date Fair Value Per Part B RSU) (Detail) - Part B Restricted Stock Units [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Part B RSUs granted | 282,074 | 272,813 | 316,353 | 359,658 | 575,660 | 554,887 |
Shares authorized | 1,449,860 | 1,426,812 | 1,490,023 | 1,388,280 | 2,222,048 | 1,449,860 |
Grant date fair value per Part B RSU | $ 18.0800 | $ 17.8300 | $ 27.10 | $ 24.36 | $ 63.12 | $ 17.96 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Carrying value of the notes | $ 3,666.3 | $ 3,666.3 | $ 3,668.7 | $ 3,150.8 | |||
Hypothetical annual interest expense | 16.4 | 16.5 | |||||
Hypothetical increase to interest rate swap fair value | 9.5 | 9.5 | 7.3 | ||||
Term Loan Facility [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Carrying value of the notes | 1,620.2 | $ 1,620.2 | $ 1,627 | 1,990.2 | |||
Hypothetical interest rate increase | 1.00% | 1.00% | |||||
Term Loan Facility [Member] | LIBOR [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Floor rate | 1.00% | 1.00% | |||||
Revolver interest rate | 2.75% | 2.75% | |||||
Fair Value of Stock Based Compensation Liability [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Stock-based compensation liability | 392.4 | ||||||
Interest Rate Swap [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Hypothetical interest rate increase | 100.00% | 1.00% | |||||
Change in fair value of interest rate swap | 1 | $ 1.5 | $ 0.6 | $ (0.5) | $ 2.1 | 4.6 | $ 2.6 |
Notes [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Carrying value of the notes | 2,112.3 | 2,112.3 | 2,112.7 | 1,250 | |||
Fair value of the notes | $ 2,034 | $ 2,034 | $ 2,109.3 | $ 1,294.8 |
Commitments and Contingencies61
Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2015 | |
Commitment And Contingencies [Line Items] | |||||
Lease expense | $ 125.3 | $ 90.1 | $ 87.2 | ||
Net lease termination charge | 10.2 | ||||
Purchase commitments | 226.4 | $ 241.2 | |||
Outstanding letters of credit | 9.2 | ||||
Lease Termination [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Charge for lease termination costs | $ 10.4 | ||||
Benefit related to release of associated rent escalation accrual | $ 0.2 | ||||
Net lease termination charge | $ 10.2 | ||||
Remaining lease obligation | $ 6.3 | $ 8.1 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Detail) - USD ($) $ in Millions | Jun. 28, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Related Party Transaction [Line Items] | ||||||||||
Due from related parties | $ 0.5 | $ 0.9 | $ 0.5 | $ 0.6 | $ 0.9 | |||||
Debt obligations | 3,744.1 | 3,260.8 | 3,744.1 | 3,752.4 | 3,260.8 | |||||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest rate | 10.125% | |||||||||
Maturity date | 2,020 | |||||||||
O V S [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due from related parties | 0.5 | 0.1 | 0.5 | 0.6 | 0.1 | |||||
CII [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Authorized non-liquidating cash distribution | $ 10 | |||||||||
Non-liquidating distribution to common unit holders made by subsidiary to parent company | 9 | $ 3 | $ 10 | |||||||
Non-cash settlement of note receivable from stock holder | $ 22 | |||||||||
Outstanding notes receivable | 0 | |||||||||
Holdings | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Due from related parties | 1.3 | |||||||||
Dan Caruso [Member] | Aircraft Reimbursement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payable to related party settled | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.6 | $ 0.7 | $ 0.1 | ||||
Matt Erickson, President of Zayo Physical Infrastructure [Member] | Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument, face amount | $ 0.6 | |||||||||
Notes to be redeemed | 0.2 | |||||||||
Debt obligations | $ 0.4 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Detail) | 12 Months Ended |
Jun. 30, 2015DarkFiber | |
Dark Fiber Solutions [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Number of dark fiber leased to customers | 2 |
Contract term | 3 years |
Dark Fiber Solutions [Member] | Maximum [Member] | |
Segment Reporting Information [Line Items] | |
Number of dark fiber leased to customers | 12 |
Contract term | 20 years |
Network Connectivity [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Contract term | 2 years |
Network Connectivity [Member] | Maximum [Member] | |
Segment Reporting Information [Line Items] | |
Contract term | 5 years |
Colocation and Cloud Infrastructure [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Contract term | 2 years |
Colocation and Cloud Infrastructure [Member] | Maximum [Member] | |
Segment Reporting Information [Line Items] | |
Contract term | 5 years |
Other [Member] | |
Segment Reporting Information [Line Items] | |
Contract term | 1 year |
Segment Reporting (Summary of F
Segment Reporting (Summary of Financial Information by Segments) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | $ 369.6 | $ 361.9 | [1] | $ 323.9 | [1] | $ 298.1 | [2],[3] | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | [1] | $ 1,129.7 | [2] | $ 1,011 | |||
Segment Adjusted EBITDA | 218.9 | 189.7 | 434.3 | 372.7 | 782.6 | 660.3 | 560.5 | |||||||||||||
Total assets | 6,273.1 | 6,094 | 4,988.8 | 4,980.9 | 6,273.1 | 4,988.8 | 6,094 | 4,980.9 | 4,152.1 | |||||||||||
Capital expenditures | 172.4 | 129.5 | 331.6 | 244.8 | 530.4 | 360.8 | 323.3 | |||||||||||||
Corporate/eliminations [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | (0.3) | |||||||||||||||||||
Segment Adjusted EBITDA | (0.1) | |||||||||||||||||||
Total assets | 232.5 | 388.7 | 284.2 | 326.2 | 232.5 | 284.2 | 388.7 | 326.2 | 122.7 | |||||||||||
Dark Fiber Solutions [Member] | Reportable Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 137.7 | 272.7 | 531.3 | 419.8 | 358.8 | |||||||||||||||
Segment Adjusted EBITDA | 99.1 | 195.7 | 364.3 | 288.2 | 250.7 | |||||||||||||||
Total assets | 3,078.3 | 2,848.9 | 2,714.6 | 3,078.3 | 2,848.9 | 2,714.6 | 2,213.2 | |||||||||||||
Capital expenditures | 109.2 | 69.7 | 202.7 | 127.8 | 279.7 | 181 | 165.8 | |||||||||||||
Network Connectivity [Member] | Reportable Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 168.7 | 335.7 | 648 | 606.2 | 570.5 | |||||||||||||||
Segment Adjusted EBITDA | 89.9 | 178.6 | 339.2 | 326.7 | 278.3 | |||||||||||||||
Total assets | 1,900.7 | 1,807.7 | 1,739.1 | 1,900.7 | 1,807.7 | 1,739.1 | 1,685.5 | |||||||||||||
Capital expenditures | 48.1 | 52.5 | 94.8 | 98.8 | 195.1 | 151.6 | 143 | |||||||||||||
Colocation and Cloud Infrastructure [Member] | Reportable Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 58.5 | 27 | 116.8 | 53.9 | 144.6 | 75.6 | 54.2 | |||||||||||||
Segment Adjusted EBITDA | 29 | 13.4 | 57.4 | 26.7 | 73.7 | 37.4 | 25.4 | |||||||||||||
Total assets | 1,027.2 | 1,013.7 | 250.1 | 157.9 | 1,027.2 | 250.1 | 1,013.7 | 157.9 | 98.3 | |||||||||||
Capital expenditures | 15.1 | 7.3 | 34.1 | 18.2 | 55.4 | 28.2 | 14.5 | |||||||||||||
Other [Member] | Reportable Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 4.7 | 5.5 | 11.2 | 23.2 | 28.1 | 27.8 | ||||||||||||||
Segment Adjusted EBITDA | 0.9 | 1.1 | 2.6 | 5.3 | 8 | 6.2 | ||||||||||||||
Total assets | $ 34.4 | $ 35 | $ 36.1 | $ 43.1 | $ 34.4 | $ 36.1 | 35 | $ 43.1 | $ 32.4 | |||||||||||
Capital expenditures | $ 0.2 | |||||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation from Segment Adjusted EBITDA to Net Earnings/(Loss) from Continuing Operations) (Detail) - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Total Segment Adjusted EBITDA | $ 218.9 | $ 189.7 | $ 434.3 | $ 372.7 | $ 782.6 | $ 660.3 | $ 560.5 | ||||||||||||||||||
Interest expense | (51.2) | (53.4) | (105) | (100.3) | (214) | (203.5) | (202.5) | ||||||||||||||||||
Depreciation and amortization expense | (113.7) | $ (113.2) | $ (100.1) | (96.9) | [1] | $ (96) | $ (91.3) | $ (84.2) | $ (81.7) | $ (81) | (230.8) | (192.9) | (406.2) | [1] | (338.2) | [4] | (324.5) | ||||||||
Transaction costs | (3.3) | (1.3) | (3.3) | (4.6) | (5.9) | (4.5) | (14.2) | ||||||||||||||||||
Stock-based compensation | (42.9) | 6 | (89) | (117.1) | (200.7) | (253.7) | (105.8) | ||||||||||||||||||
Loss on extinguishment of debt | $ (65) | (8.5) | [9] | (54.9) | [9] | (30.9) | [1],[9] | (1.9) | [10] | (30.9) | (94.3) | [1],[9] | (1.9) | [4],[10] | (77.3) | ||||||||||
Unrealized foreign currency gain/(loss) | (7.1) | (13.3) | (17.8) | (27.9) | (24.4) | 4.7 | 0.1 | ||||||||||||||||||
Non-cash loss on investments | (0.4) | (0.5) | (0.6) | (0.5) | (0.9) | ||||||||||||||||||||
Loss before income taxes | $ 0.3 | $ 9.8 | $ (72.1) | $ (0.6) | [1] | $ (100.9) | $ (59.5) | $ (31.5) | $ (27.6) | $ (18.2) | $ (12.2) | $ (101.5) | $ (163.8) | [1] | $ (136.8) | [4] | $ (163.7) | ||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[9] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[10] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | May. 06, 2015 | Jun. 30, 2014 |
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | $ 3,744.1 | $ 3,752.4 | $ 3,260.8 | |
10.125% Senior Notes due 2020 [Member] | Unsecured Debt [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | 325.6 | 325.6 | $ 500 | |
6.00% Senior Notes due 2023 [Member] | Unsecured Debt [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | 1,430 | 1,430 | ||
6.375% Senior Notes due 2025 [Member] | Unsecured Debt [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | $ 350 | $ 350 | $ 344.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Current assets | |||||||
Cash and cash equivalents | $ 175.6 | $ 308 | $ 152 | $ 297.4 | $ 297.4 | $ 91.3 | $ 150.7 |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 73.9 | 88 | 57.2 | ||||
Due from related parties | 0.5 | 0.6 | 0.9 | ||||
Prepaid expenses | 33.8 | 37.3 | 24.9 | ||||
Deferred income taxes, net | 129.8 | 129.5 | |||||
Other assets | 5.8 | 3.9 | 2.4 | ||||
Total current assets | 419.4 | 567.3 | 543.8 | ||||
Property and equipment, net | 3,626.1 | 3,299.2 | 2,822.4 | ||||
Intangible assets, net | 933 | 948.3 | 710.3 | ||||
Goodwill | 1,222.2 | 1,224.4 | 866.7 | 688.8 | |||
Other assets | 72.4 | 54.8 | 37.7 | ||||
Total assets | 6,273.1 | 6,094 | $ 4,988.8 | 4,980.9 | $ 4,152.1 | ||
Current liabilities | |||||||
Current portion of long-term debt | 16.5 | 16.5 | 20.5 | ||||
Accounts payable | 66.2 | 40 | 26.7 | ||||
Accrued liabilities | 182.2 | 182.4 | 172.3 | ||||
Accrued interest | 40.2 | 57.2 | 57.1 | ||||
Capital lease obligations, current | 5.4 | 4.4 | 2.4 | ||||
Due to related parties | 1.3 | 1.3 | |||||
Deferred revenue, current | 97.8 | 86.6 | 75.4 | ||||
Total current liabilities | 409.6 | 388.4 | 354.4 | ||||
Long-term debt, non-current | 3,649.8 | 3,652.2 | 3,130.3 | ||||
Capital lease obligation, non-current | 30.5 | 28.3 | 25.7 | ||||
Deferred revenue, non-current | 727.4 | 612.7 | 501.5 | ||||
Deferred income taxes, net | 186.6 | 189.7 | 153 | ||||
Other long-term liabilities | 37.6 | 28.6 | 22.3 | ||||
Total liabilities | 5,041.5 | 4,899.9 | 4,579.6 | ||||
Member's Equity | |||||||
Member's interest | 1,774.3 | 1,699.1 | 728.9 | ||||
Accumulated other comprehensive loss | (19.6) | (7.9) | 14.4 | ||||
Accumulated deficit | (523.1) | (497.1) | (342) | ||||
Total member's equity | 1,231.6 | 1,194.1 | 401.3 | ||||
Total liabilities and member's equity | $ 6,273.1 | $ 6,094 | $ 4,980.9 |
CONDENSED CONSOLIDATED BALANC68
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Statement Of Financial Position [Abstract] | |||
Trade receivables allowance | $ 4.8 | $ 3.4 | $ 3.7 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[7],[8] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [2],[3] | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | [1] | Jun. 30, 2014 | [2] | Jun. 30, 2013 |
Income Statement [Abstract] | |||||||||||||||||||||||||
Revenue | $ 369.6 | $ 361.9 | $ 323.9 | $ 298.1 | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | $ 1,129.7 | $ 1,011 | |||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | 112.2 | 107.5 | $ 100.9 | 97.8 | $ 107.3 | 92.8 | 84.9 | 85.9 | 79.7 | 225.2 | 205.1 | 413.5 | 343.3 | 314.1 | |||||||||||
Selling, general and administrative expenses (including stock-based compensation-Note 8) | 85 | 86.4 | [9] | 83 | [9] | 32.1 | [9] | 156.6 | [9] | 124.6 | 96.6 | 87 | 76.4 | 169.6 | 188.7 | 358.1 | [9] | 384.6 | 256.7 | ||||||
Depreciation and amortization | 113.7 | 113.2 | 100.1 | 96.9 | 96 | 91.3 | 84.2 | 81.7 | 81 | 230.8 | 192.9 | 406.2 | 338.2 | 324.5 | |||||||||||
Total operating costs and expenses | 310.9 | 307.1 | 284 | 226.8 | 359.9 | 308.7 | 265.7 | 254.6 | 237.1 | 625.6 | 586.7 | 1,177.8 | 1,066.1 | 895.3 | |||||||||||
Operating income | 58.7 | 54.8 | 56.7 | 97.1 | (39.3) | (10.6) | 17.5 | 24.1 | 32.6 | 110.8 | 57.8 | 169.3 | 63.6 | 115.7 | |||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (51.2) | (53) | (60.7) | (53.4) | (46.9) | (52.6) | [10] | (49.1) | [10] | (50.3) | [10] | (51.5) | [10] | (105) | (100.3) | (214) | (203.5) | [10] | (202.5) | ||||||
Loss on extinguishment of debt | $ (65) | (8.5) | [11] | (54.9) | [11] | (30.9) | [11] | (1.9) | [12] | (30.9) | (94.3) | [11] | (1.9) | [12] | (77.3) | ||||||||||
Foreign currency loss on intercompany loans | (7.1) | 16.8 | (13.2) | (13.3) | (14.7) | 3.8 | 0.1 | 0.2 | 0.6 | (17.8) | (27.9) | (24.4) | 4.7 | 0.1 | |||||||||||
Other (expenses)/income, net | (0.1) | (0.3) | (0.1) | (0.1) | 0.3 | 0.1 | (0.2) | (0.2) | (0.4) | 0.3 | 0.3 | ||||||||||||||
Total other expenses, net | (58.4) | (45) | (128.8) | (97.7) | (61.6) | (48.9) | (49) | (51.7) | (50.8) | (123) | (159.3) | (333.1) | (200.4) | (279.4) | |||||||||||
Loss before income taxes | 0.3 | 9.8 | (72.1) | (0.6) | (100.9) | (59.5) | (31.5) | (27.6) | (18.2) | (12.2) | (101.5) | (163.8) | (136.8) | (163.7) | |||||||||||
Provision for income taxes | 11.1 | 4.6 | (18.4) | (4.3) | 9.4 | 10.5 | 12.1 | 8.4 | 9.3 | 13.8 | 5.1 | (8.7) | 40.3 | (21.8) | |||||||||||
Net Loss | $ (10.8) | $ 5.2 | $ (53.7) | $ 3.7 | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | $ (26) | $ (106.6) | $ (155.1) | $ (177.1) | $ (141.9) | |||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[9] | The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12? Stock-based Compensation. | ||||||||||||||||||||||||
[10] | The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[11] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[12] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
CONDENSED CONSOLIDATED STATEM70
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Comprehensive Income Net Of Tax [Abstract] | ||||||||||||||||||||||||
Net (loss)/income | $ (10.8) | $ 5.2 | $ (53.7) | $ 3.7 | [1] | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | $ (26) | $ (106.6) | $ (155.1) | [1] | $ (177.1) | [4] | $ (141.9) | |||||||
Foreign currency translation adjustments | (7.7) | (8.7) | (11.7) | (21) | (22.3) | 19.2 | (4.8) | |||||||||||||||||
Comprehensive loss | $ (18.5) | $ (5) | $ (37.7) | $ (127.6) | $ (177.4) | $ (157.9) | $ (146.7) | |||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
CONDENSED CONSOLIDATED STATEM71
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Members Interest [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total | |
Balance at Jun. 30, 2014 | $ 401.3 | ||||
Foreign currency translation adjustments | $ (22.3) | (22.3) | |||
Capital distribution to parent | $ 385 | 385 | |||
Net (loss)/income | $ (155.1) | (155.1) | [1] | ||
Balance at Jun. 30, 2015 | 1,699.1 | (7.9) | (497.1) | 1,194.1 | |
Stock-based compensation | 87.6 | 87.6 | |||
Tax benefits from stock-based compensation | 5.1 | 5.1 | |||
Foreign currency translation adjustments | (11.7) | (11.7) | |||
Capital distribution to parent | (17.5) | (17.5) | |||
Net (loss)/income | (26) | (26) | |||
Balance at Dec. 31, 2015 | $ 1,774.3 | $ (19.6) | $ (523.1) | $ 1,231.6 | |
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. |
CONDENSED CONSOLIDATED STATEM72
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS € in Millions, $ in Millions | 6 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flows from operating activities | ||
Net (loss)/income | $ (26) | $ (106.6) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 230.8 | 192.9 |
Loss on extinguishment of debt | 30.9 | |
Non-cash interest expense | 6.6 | 9.4 |
Stock-based compensation | 89 | 117.1 |
Amortization of deferred revenue | (41.9) | (34.6) |
Additions to deferred revenue | 86.6 | 84.1 |
Foreign currency loss/(gain) on intercompany loans | 17.8 | 27.9 |
Excess tax benefit from stock-based compensation | (7.9) | |
Deferred income taxes | 8.3 | (0.6) |
Provision for bad debts | 2.5 | 0.9 |
Non-cash loss on investments | 0.6 | 0.5 |
Changes in operating assets and liabilities, net of acquisitions | ||
Trade receivables | 15.3 | (5) |
Prepaid expenses | 6 | 0.2 |
Payables to/(from) related parties, net | 0.1 | (10.4) |
Accounts payable and accrued liabilities | (26) | (67.5) |
Other assets and liabilities | (20.4) | (6.6) |
Net cash provided by operating activities | 341.4 | 232.6 |
Cash flows from investing activities | ||
Purchases of property and equipment | (331.6) | (244.8) |
Acquisition, net of cash acquired | (117.7) | (126.5) |
Other | (0.3) | (0.1) |
Net cash used in investing activities | (449.6) | (371.3) |
Cash flows from financing activities | ||
Distributions to parent | (17.5) | 279.7 |
Principal payments on long-term debt | (8.3) | (259.7) |
Payment of early redemption fees on debt extinguished | (23.8) | |
Principal repayments on capital lease obligations | (2.2) | (1.3) |
Excess tax benefit from stock-based compensation | 7.9 | |
Other | (0.8) | |
Net cash provided by financing activities | (20.9) | (5.1) |
Cash flows from continuing operations | (129.1) | (143.8) |
Effect of changes in foreign exchange rates on cash | (3.3) | (1.6) |
Net increase/(decrease) in cash and cash equivalents | (132.4) | (145.4) |
Cash and cash equivalents, beginning of year | 308 | 297.4 |
Cash and cash equivalents, end of period | 175.6 | 152 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Cash paid for interest, net of capitalized interest | 112.5 | 144.7 |
Cash paid for income taxes | 6.7 | 10.8 |
Non-cash purchases of equipment through capital leasing | 5.8 | 5.8 |
Increase in accounts payable and accrued expenses for purchases of property and equipment | 25.5 | 5.9 |
Viatel [Member] | ||
Cash flows from investing activities | ||
Acquisition, net of cash acquired | (101) | |
Dallas Data Center [Member] | ||
Cash flows from investing activities | ||
Acquisition, net of cash acquired | $ (16.7) | |
Neo Telecoms [Member] | ||
Cash flows from investing activities | ||
Acquisition, net of cash acquired | (73.9) | |
Colo Facilities Atlanta [Member] | ||
Cash flows from investing activities | ||
Acquisition, net of cash acquired | $ (52.5) |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and Basis of Presentation | (1) BUSINESS AND BASIS OF PRESENTATION Business Zayo Group , LLC, a Delaware limited liability company, was formed on May 4, 2007, and is the operating parent company of a number of subsidiaries engaged in bandwidth infrastructure services. Zayo Group LLC and its subsidiaries are collectively referred to as “Zayo Group” or the “Company.” Headquartered in Boulder, Colorado, the Company operates bandwidth infrastructure assets, including fiber networks and datacenters, in the United States and Europe to offer: · Dark Fiber Solutions, including dark fiber and mobile infrastructure services. · Colocation and Cloud Infrastructure, including Cloud and Colocation services. · Network Connectivity, wavelengths, Ethernet, IP and SONET services. · Other services, including Zayo Professional Services (“ZPS”). Zayo Group is wholly owned by Zayo Group Holdings, Inc. (“Holdings” or “ZGH”). Basis of Presentation The accompanying condensed consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements and related notes are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q, and do not include all of the note disclosures required by GAAP for complete financial statements. These condensed consolidated financial statements should, therefore, be read in conjunction with the consolidated financial statements and notes thereto for the year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015 . In the opinion of management, all adjustments considered necessary for fair presentation of financial position, results of operations and cash flows of the Company have been included herein. The results of operations for the three and six months periods ended December 31, 2015 are not necessarily indicative of the operating results for any future interim period or the full year. The Company’s fiscal year ends June 30 each year, and we refer to the fiscal year ended June 30, 2015 as “Fiscal 2015 ” and the fiscal year ending June 30, 2016 as “Fiscal 2016 .” Significant Accounting Policies There have been no changes to the Company’s significant accounting policies described in its Annual Report on Form 10-K for the year ended June 30, 2015 . Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates are used when establishing allowances for doubtful accounts and accruals for billing disputes, determining useful lives for depreciation and amortization and accruals for exit activities associated with real estate leases, assessing the need for impairment charges (including those related to intangible assets and goodwill), determining the fair values of assets acquired and liabilities assumed in business combinations, accounting for income taxes and related valuation allowances against deferred tax assets and estimating the restricted stock unit grant fair values used to compute the stock-based compensation liability and expense. Management evaluates these estimates and judgments on an ongoing basis and makes estimates based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from these estimates under different assumptions or conditions. Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes , which requires an entity to present deferred tax liabilities and assets as noncurrent. The ASU will replace the current classification and presentation requirements for deferred tax assets and liabilities. Early adoption is permitted as of the original effective date or annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2016. The Company has not yet adopted ASU 2015-17 and it is not expected to have a material effect on the Company’s financial statements. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires acquirers who have reported provisional amounts for items in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period, in the reporting period in which the adjustments are determined. The ASU also requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Prior to the issuance of ASU 2015-16, adjustments to provisional amounts were required to be retrospectively adjusted. The Company prospectively early-adopted ASU 2015-16 effective July 1, 2015. The adoption of this standard did not have a material impact on the financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB deferred the effective date to annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date or annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Acquisitions74
Acquisitions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Business Combinations [Abstract] | ||
Acquisitions | (2) ACQUISITIONS Since its formation, the Company has consummated 36 transactions accounted for as business combinations. The acquisitions were executed as part of the Company’s business strategy of expanding through acquisitions. The acquisitions of these businesses have allowed the Company to increase the scale at which it operates, which in turn affords the Company the ability to increase its operating leverage, extend its network reach, and broaden its customer base. The accompanying condensed consolidated financial statements include the operations of the acquired entities from their respective acquisition dates. Acquisitions Completed During Fiscal 2016 Viatel On December 31, 2015 , the Company completed the acquisition of a 100% interest in Viatel Infrastructure Europe Ltd., Viatel (UK) Limited, Viatel France SAS, Viatel Deutschland GmbH and Viatel Nederland BV (collectively, “Viatel”) for cash consideration of €92.6 million (or $101.0 million), net of cash acquired. The final purchase consideration is subject to certain post-closing adjustments. The acquisition was funded with cash on hand. €5.0 million (or $5.5 million) of the purchase consideration is currently held in escrow pending expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. Dallas Data Center Acquisition (“Dallas Data Center”) On December 31, 2015, the Company acquired a 36,000 square foot data center located in Dallas, Texas for cash consideration of $16.7 million. The acquisition was funded with cash on hand and was considered an asset purchase for tax purposes. Acquisitions Completed During Fiscal 2015 Colo Facilities Atlanta (“AtlantaNAP”) On July 1, 2014 , the Company acquired 100% of the equity interest in AtlantaNAP, a datacenter and managed services provider in Atlanta, for cash consideration of $51.9 million. The acquisition was considered an asset purchase for tax purposes. Neo Telecoms (“Neo”) On July 1, 2014 , the Company acquired a 96% equity interest in Neo, a Paris-based bandwidth infrastructure company. The purchase agreement also includes a call option to acquire the remaining equity interest on or after December 31, 2015. The purchase consideration of €54.1 million (or $73.9 million), net of cash acquired, was in consideration of acquiring 96% equity ownership in Neo and a call option to purchase the remaining 4% equity interest in Neo. The fair value of the 4% non-controlling interest in Neo as of the acquisition date was $2.9 million and recorded in Other long-term liabilities. The consideration consisted of cash and was paid with cash on hand from the proceeds of the Term Loan Facility (as defined below). €8.7 million (or $11.9 million) of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. IdeaTek Systems, Inc. (“IdeaTek”) Effective January 1, 2015 , the Company acquired all of the equity interest in IdeaTek. The purchase price, subject to certain post-closing adjustments, was $52.7 million and was paid with cash on hand. $3.2 million of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. The IdeaTek acquisition added 1,800 route miles to the Company’s network in Kansas, and includes a dense metro footprint in Wichita, Kansas. The network spans across Kansas and connects to approximately 600 cellular towers and over 100 additional buildings. Latisys Holdings, LLC (“Latisys”) On February 23, 2015 , the Company acquired the operating units of Latisys, a colocation and infrastructure as a service (“Iaas”) provider for a price of $677.8 million, net of cash acquired. The Latisys acquisition was funded with the proceeds of the January Notes Offering (as defined in Note 5 – Long-Term Debt ). $31.4 million of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. Acquisition Method Accounting Estimates The Company initially recognizes the assets and liabilities acquired from the aforementioned acquisitions based on its preliminary estimates of their acquisition date fair values. As additional information becomes known concerning the acquired assets and assumed liabilities, management may make adjustments to the opening balance sheet of the acquired company up to the end of the measurement period, which is no longer than a one year period following the acquisition date. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As of December 31, 2015 , the Company has not completed its fair value analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair value of certain working capital and non-working capital acquired assets and assumed liabilities, including the allocations to goodwill and intangible assets, deferred revenue and resulting deferred taxes related to its acquisitions of Viatel, Dallas Data Center, and Latisys. All information presented with respect to certain working capital and non-working capital acquired assets and liabilities assumed as it relates to these acquisitions is preliminary and subject to revision pending the final fair value analysis. The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2016 acquisitions: Viatel Dallas Data Center Acquisition date December 31, 2015 December 31, 2015 (in millions) Cash $ $ — Other current assets — Property and equipment Deferred tax assets, net — — Intangibles Goodwill — Other assets — — Total assets acquired Current liabilities — Deferred revenue — Deferred tax liability, net — Other liabilities — — Total liabilities assumed — Net assets acquired Less cash acquired — Net consideration paid $ $ The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions: AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 (in millions) Cash $ — $ $ — $ Other current assets Property and equipment Deferred tax assets, net — — Intangibles Goodwill Other assets — — Total assets acquired Current liabilities Deferred revenue — Deferred tax liability, net — — Other liabilities — — — Total liabilities assumed Net assets acquired Less cash acquired — — Net consideration paid $ $ $ $ The goodwill arising from the Company’s acquisitions results from synergies, anticipated incremental sales to the acquired company customer base and economies-of-scale expected from the acquisitions. The Company has allocated the goodwill to the reporting units (in existence on the respective acquisition dates) that were expected to benefit from the acquired goodwill. The allocation was determined based on the excess of the estimated fair value of the reporting unit over the estimated fair value of the individual assets acquired and liabilities assumed that were assigned to the reporting units. Note 3 - Goodwill , displays the allocation of the Company's acquired goodwill to each of its reporting units. In each of the Company’s Fiscal 2015 and Fiscal 2016 acquisitions, the Company acquired certain customer relationships. These relationships represent a valuable intangible asset, as the Company anticipates continued business from the acquired customer bases. The Company’s estimate of the fair value of the acquired customer relationships is based on a multi-period excess earnings valuation technique that utilizes Level 3 inputs. Transaction Costs Transaction costs include expenses associated with professional services (i.e., legal, accounting, regulatory, etc.) rendered in connection with signed and/or closed acquisitions or disposals (including spin-offs), travel expense, severance expense incurred on the date of acquisition or disposal, and other direct expenses incurred that are associated with such acquisitions or disposals. The Company incurred transaction costs of $3.3 million for the three and six months ended December 31, 2015, and $1.3 million and $4.6 million during the three and six months ended December 31, 2014, respectively. Transaction costs have been included in selling, general and administrative expenses in the condensed consolidated statements of operations and in cash flows from operating activities in the condensed consolidated statements of cash flows during these periods. Pro-forma Financial Information The pro forma results presented below include the effects of the Company’s Fiscal 2016 and 2015 acquisitions as if the acquisitions occurred on July 1, 2014 . The pro forma net loss for the periods ended December 31, 2015 and 2014 includes the additional depreciation and amortization resulting from the adjustments to the value of property and equipment and intangible assets resulting from purchase accounting and adjustment to amortized revenue during Fiscal 2016 and 2015 as a result of the acquisition date valuation of assumed deferred revenue. The pro forma results also include interest expense associated with debt used to fund the acquisitions. The pro forma results do not include any anticipated synergies or other expected benefits of the acquisitions. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2014 . Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenue $ $ $ $ Net loss $ $ $ $ The Company is unable to determine the amount of revenue and net income associated with each acquisition recognized during the period as a result of integration activities. | (3) ACQUISITIONS Since inception, the Company has consummated 34 transactions accounted for as business combinations. The acquisitions were executed as part of the Company’s business strategy of expanding through acquisitions. The acquisitions of these businesses have allowed the Company to increase the scale at which it operates, which in turn affords the Company the ability to increase its operating leverage, extend its network reach, and broaden its customer base. The accompanying consolidated financial statements include the operations of the acquired entities from their respective acquisition dates. Acquisitions Completed During Fiscal 2015 Neo Telecoms (“Neo”) On July 1, 2014, the Company acquired a 96% equity interest in Neo, a Paris-based bandwidth infrastructure company. The purchase agreement also includes a call option to acquire the remaining equity interest on or after December 31, 2015. The purchase consideration of €54.1 million (or $73.9 million), net of cash acquired, was in consideration of acquiring 96% equity ownership in Neo and a call option to purchase the remaining 4% equity interest in Neo. The fair value of the 4% non-controlling interest in Neo as of the acquisition date was $2.9 million and recorded in Other long-term liabilities. The consideration consisted of cash and was paid with cash on hand from the proceeds of the Sixth Amendment to the Company’s term loan facility. €8.7 million (or $11.9 million) of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. Colo Facilities Atlanta (“AtlantaNAP”) On July 1, 2014, the Company acquired 100% of the equity interest in AtlantaNAP, a datacenter and managed services provider in Atlanta, for cash consideration of $51.9 million. $5.3 million of the purchase price is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered an asset purchase for tax purposes. IdeaTek Systems, Inc. (“IdeaTek”) Effective January 1, 2015, the Company acquired all of the equity interest in IdeaTek. The purchase price, subject to certain post-closing adjustments, was $52.7 million and was paid with cash on hand, $3.2 million of the purchase consideration is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. The IdeaTek acquisition added 1,800 route miles to the Company’s network in Kansas, and includes a dense metro footprint in Wichita, Kansas. The network spans across Kansas and connects to approximately 600 cellular towers and over 100 additional buildings. Latisys Holdings, LLC (“Latisys”) On February 23, 2015, the Company acquired the operating units of Latisys, a colocation and infrastructure as a service (“Iaas”) provider for a price of $677.5 million, net of cash acquired. The Latisys acquisition was funded with the proceeds of the January Notes Offering (as defined in Note 8 – Long-Term Debt The Latisys acquisition added colocation and IaaS services through eight datacenters across five markets in Northern Virginia, Chicago, Denver, Orange County and London. The acquired datacenters currently total over 185,000 square feet of billable space and 33 megawatts of critical power. Acquisitions During the Year Ended June 30, 2014 Corelink Data Centers, LLC ("Corelink") On August 1, 2013, the Company entered into an asset purchase agreement to acquire Corelink. The transaction was consummated on the same date, at which time the Company acquired substantially all of the net assets of this business for consideration of approximately $1.9 million comprised of 301,949 preferred units of CII with an estimated fair value of $1.6 million and cash of $0.3 million, net of cash acquired. The acquisition was considered a stock purchase for tax purposes. The cash consideration was paid with cash on hand. Access Communications, Inc. ("Access") On October 1, 2013, the Company acquired 100% of the equity interest in Access, a Minnesota corporation, for cash consideration of $40.1 million net of cash acquired, of which $4.0 million is currently held in escrow pending the expiration of the indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. The purchase price was paid with cash on hand. FiberLink, LLC ("FiberLink") On October 2, 2013, the Company acquired 100% of the equity interest in FiberLink, an Illinois limited liability company, for cash consideration of $43.1 million which was primarily funded with available funds drawn on the Company’s revolving credit facility. The acquisition was considered an asset purchase for tax purposes. CoreXchange, Inc. ("CoreXchange") On March 4, 2014, the Company 100% consummated the asset purchase agreement to acquire CoreXchange, a data center, bandwidth and managed services provider located in Dallas, Texas for consideration of $17.2 million net of cash acquired. Through the transaction, the Company acquired one new data center operation located at 8600 Harry Hines Blvd. and secured additional square footage in its existing data center. The consideration was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Geo Networks Limited ("Geo") On May 16, 2014, the Company acquired 100% of the equity interest in Ego Holdings Limited, a London-based dark fiber provider. The consideration consisted of cash of £174.3 million (or $292.3 million), net of cash acquired, and was funded with a combination of cash on hand and available funds drawn on the Company’s revolving credit facility. In conjunction with the acquisition, the Company repaid Geo’s existing debt obligations to the note holders totaling £113.4 million and £69.1 million was paid to the shareholders. The acquisition was considered a stock purchase for tax purposes. Acquisitions During the Year Ended June 30, 2013 AboveNet, Inc. (“AboveNet”) On July 2, 2012, the Company acquired 100% of the outstanding capital stock of AboveNet, previously a publicly traded company listed on the NYSE, in exchange for cash of approximately $2,210.0 million, net of cash acquired. The purchase price was based upon the price of $84.00 per share agreed to in the Agreement and Plan of Merger and the number of AboveNet shares outstanding on July 2, 2012. The acquisition was funded through cash proceeds raised through financing transactions that occurred in July 2012. The acquisition was considered a stock purchase for tax purposes. FiberGate Holdings, Inc. (“FiberGate”) On August 31, 2012, the Company acquired 100% of the equity interest in FiberGate, a privately held corporation, for total consideration of $118.3 million. The acquisition was funded with cash on hand. $17.6 million of the purchase price is currently held in escrow pending the expiration of the working capital and indemnification adjustment period. The acquisition was considered a stock purchase for tax purposes. USCarrier Telecom, LLC (“USCarrier”) In connection with the October 1, 2010 American Fiber Systems acquisition, the Company acquired an ownership interest in USCarrier. As of June 30, 2012, the Company owned 55% of the outstanding Class A membership units and 34% of the outstanding Class B membership units of USCarrier. On October 1, 2012, the Company acquired the remaining equity interests in USCarrier not previously owned for total consideration of $16.1 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. First Telecom Services, LLC (“First Telecom”) On December 14, 2012, the Company acquired 100% of the equity interest in First Telecom, for total consideration of $109.7 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Litecast/Balticore, LLC (“Litecast”) On December 31, 2012, the Company acquired 100% of the equity interest in Litecast for total consideration of $22.2 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Core NAP, L.P. (“Core NAP”) On May 31, 2013, the Company acquired substantially all of the net assets of Core NAP for a purchase price of approximately $7.1 million. The purchase price was paid with cash on hand. The acquisition was considered an asset purchase for tax purposes. Acquisition Method Accounting Estimates The Company initially recognizes the assets and liabilities acquired from the aforementioned acquisitions based on its preliminary estimates of their acquisition date fair values. As additional information becomes known concerning the acquired assets and assumed liabilities, management may make adjustments to the opening balance sheet of the acquired company up to the end of the measurement period, which is no longer than a one year period following the acquisition date. The determination of the fair values of the acquired assets and liabilities assumed (and the related determination of estimated lives of depreciable tangible and identifiable intangible assets) requires significant judgment. As of June 30, 2015, the Company has not completed its fair value analysis and calculations in sufficient detail necessary to arrive at the final estimates of the fair value of certain working capital and non-working capital acquired assets and assumed liabilities, including the allocations to property, plant and equipment, goodwill and intangible assets, deferred revenue and resulting deferred taxes related to its acquisitions of IdeaTek and Latisys. All information presented with respect to certain working capital and non-working capital acquired assets and liabilities assumed as it relates to these acquisitions are preliminary and subject to revision pending the final fair value analysis. During the first quarter of Fiscal 2015, the Company finalized its fair value analysis and resulting purchase accounting for the Access and FiberLink acquisitions. During the third quarter of Fiscal 2015, the Company finalized its fair value analysis and resulting purchase accounting for the CoreXchange acquisition. During the fourth quarter of Fiscal 2015, the Company finalized its fair value analysis and resulting purchase accounting for the Geo, AtlantaNAP and Neo acquisitions. The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions (in millions): AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 Cash $ — $ 4.2 $ — $ 9.4 Other current assets 0.2 9.5 0.8 17.1 Property and equipment 7.0 31.3 32.3 222.9 Deferred tax assets, net — — 2.9 — Intangibles 21.0 26.4 7.6 250.2 Goodwill 25.2 32.5 38.8 279.8 Other assets — 2.3 — 5.0 Total assets acquired 53.4 106.2 82.4 784.4 Current liabilities 1.5 13.5 4.5 10.7 Deferred revenue — 3.7 25.2 3.2 Deferred tax liability, net — 7.6 — 83.6 Other liabilities — 3.3 — — Total liabilities assumed 1.5 28.1 29.7 97.5 Net assets acquired 51.9 78.1 52.7 686.9 Less cash acquired — (4.2 ) — (9.4 ) Net consideration paid $ 51.9 $ 73.9 $ 52.7 $ 677.5 The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2014 acquisitions (in millions): Corelink Access FiberLink CoreXchange Geo Acquisition date August 1, 2013 October 1, 2013 October 2, 2013 March 4, 2014 May 16, 2014 Cash $ 0.1 $ 1.2 $ — $ — $ 13.7 Other current assets 0.5 2.3 0.8 0.6 8.8 Property and equipment 15.9 11.5 15.9 3.1 220.4 Deferred tax assets, net — — 7.7 0.2 — Intangibles 0.2 18.0 19.3 11.0 60.8 Goodwill 2.9 24.0 19.8 3.4 113.8 Other assets 0.5 — 0.1 — 9.8 Total assets acquired 20.1 57.0 63.6 18.3 427.3 Current liabilities 0.7 1.0 1.3 0.5 34.8 Deferred revenue 0.2 5.1 19.2 0.4 45.1 Capital lease obligations 14.2 — — 0.2 — Deferred tax liability, net 3.0 9.6 — — 38.2 Other liabilities — — — — 3.2 Total liabilities assumed 18.1 15.7 20.5 1.1 121.3 Net assets acquired 2.0 41.3 43.1 17.2 306.0 Less cash acquired (0.1 ) (1.2 ) — — (13.7 ) Net consideration paid $ 1.9 $ 40.1 $ 43.1 $ 17.2 $ 292.3 The table below reflects the Company's estimates of the acquisition date fair values of the acquired assets and liabilities assumed from its Fiscal 2013 acquisitions (in millions): AboveNet Fibergate US Carrier First Telecom Litecast Core NAP Acquisition date July 2, 2012 August 31, 2012 October 1, 2012 December 14, 2012 December 14, 2012 May 31, 2013 Cash $ 141.6 $ 2.3 $ — $ — $ — $ — Other current assets 46.5 4.9 1.3 5.9 0.3 0.2 Property and equipment 1,477.3 59.0 19.4 63.5 0.4 2.5 Deferred tax assets, net 42.1 — 2.0 19.2 — — Intangibles 480.4 35.9 6.8 17.1 12.5 4.1 Goodwill 381.6 53.8 5.4 48.4 9.9 1.0 Other assets 12.6 — — 0.1 — — Total assets acquired 2,582.1 155.9 34.9 154.2 23.1 7.8 Current liabilities 78.4 1.5 3.7 4.6 0.2 0.5 Deferred revenue 146.0 2.5 2.2 39.9 0.7 — Other liabilities 6.1 — — — — 0.2 Deferred tax liability, net — 31.3 — — — — Total liabilities assumed 230.5 35.3 5.9 44.5 0.9 0.7 Net assets acquired 2,351.6 120.6 28.9 109.7 22.2 7.1 Cost method investment in USCarrier — — (12.8 ) — — — Less cash acquired (141.6 ) (2.3 ) — — — — Net consideration paid $ 2,210.0 $ 118.3 $ 16.1 $ 109.7 $ 22.2 $ 7.1 The goodwill arising from the Company's acquisitions results from the cost synergies, anticipated incremental sales to the acquired company's customer base and economies-of-scale expected from the acquisitions. The Company has allocated the goodwill to the reporting units (in existence on the respective acquisition dates) that were expected to benefit from the acquired goodwill. The allocation was determined based on the excess of the fair value of the acquired business over the fair value of the individual assets acquired and liabilities assumed that were assigned to the reporting units. Note 6 - Goodwill Purchase Accounting Estimates Associated with Deferred Taxes The Company acquired material deferred tax assets and/or liabilities in its acquisitions of Latisys, Geo and AboveNet. Based on the Company’s fair value assessment related to deferred tax assets acquired in the Latisys, Geo and AboveNet acquisitions, a value of $(83.6) million, $(38.2) million, and $42.1 million, respectively, was assigned to the acquired net deferred tax (liabilities)/asset. In conjunction with the acquisition accounting for Latisys and AboveNet, the Company completed a “change in ownership” analysis, within the meaning of Section 382 of the Internal Revenue Code (“IRC”). Section 382 of the IRC limits an acquiring company’s ability to utilize net operating loss carry forwards (“NOLs”) previously generated by an acquired company in order to reduce future taxable income. As a result of the Company’s acquisition of Latisys and AboveNet, the Company is subject to annual limitations on usage of the acquired $126.3 million and $1,008.8 million of NOLs generated by Latisys and AboveNet prior to the acquisition date. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in millions): Latisys Geo AboveNet February 23, May 16, 2014 July 2, 1012 Deferred income tax assets: Net operating loss carryforwards $ 49.9 $ 2.5 $ 405.3 Deferred revenue 1.1 4.4 49.1 Accrued expenses 0.1 — 12.2 Allowance for doubtful accounts 0.3 — 2.5 Other 0.4 — — Total deferred income tax assets 51.8 6.9 469.1 Deferred income tax liabilities: Property and equipment (42.3 ) (32.9 ) (250.0 ) Intangible assets (93.1 ) (12.2 ) (177.0 ) Total deferred income tax liabilities (135.4 ) (45.1 ) (427.0 ) Net deferred income tax asset/(liabilities) $ (83.6 ) $ (38.2 ) $ 42.1 Adjustments to Purchase Accounting Estimates Associated with Prior Year Acquisitions During Fiscal 2015, the Company finalized its acquisition accounting for acquisitions consummated during Fiscal 2014 resulting in adjustments to previously reported allocation of the purchase consideration associated with its Fiscal 2014 acquisitions. The adjustments were a result of changes to the original fair value estimates of certain items acquired. These changes are the result of additional information obtained since June 30, 2014 that related to facts and circumstances that existed at the respective acquisition dates. The Company has recast the previously reported consolidated balance sheet as of June 30, 2014 in connection with the finalization of acquisition accounting for these acquisitions. The Company did not recast the previously reported consolidated statement of operations for the year ended June 30, 2014 due to the immaterial effect of the related adjustments. The following table reflects the financial statement captions impacted by the purchase accounting adjustments: Adjusted Balance June 30, 2014 Previously Reported Balance* June 30, 2014 Purchase accounting adjustment Assets Current assets Trade receivables, net 57.2 59.0 (1.8 ) Prepaid expenses 24.9 25.6 (0.7 ) Deferred income taxes, net 161.0 160.4 0.6 Total current assets 243.1 245.0 (1.9 ) Property and equipment, net 2,822.4 2,821.4 1.0 Intangible assets, net 710.3 709.7 0.6 Goodwill 866.7 845.3 21.4 Other assets 37.7 37.8 (0.1 ) Total assets $ 4,680.2 $ 4,659.2 $ 21.0 Liabilities Current liabilities Accounts payable 26.7 27.0 (0.3 ) Accrued liabilities 172.3 159.6 12.7 Total current liabilities 199.0 186.6 12.4 Capital lease obligation, non-current 25.7 22.9 2.8 Deferred revenue, non-current 501.5 496.9 4.6 Deferred income taxes, net 153.0 151.8 1.2 Total liabilities $ 879.2 $ 858.2 $ 21.0 * As reported on Form 10-Q filed with the SEC on May 13, 2015 Transaction Costs Transaction costs include expenses associated with professional services (i.e., legal, accounting, regulatory, etc.) rendered in connection with signed and/or closed acquisitions or disposals (including spin-offs), travel expense, severance expense incurred on the date of acquisition or disposal, and other direct expenses incurred that are associated with such acquisitions or disposals. The Company incurred transaction costs of $5.9 million, $4.5 million, and $14.2 million, during the years ended June 30, 2015, 2014 and 2013, respectively. Transaction costs have been included in selling, general and administrative expenses in the consolidated statements of operations and in cash flows from operating activities in the consolidated statements of cash flows during these periods. Pro-forma Financial Information (Unaudited) The pro forma results presented below include the effects of the Company’s Fiscal 2015 and 2014 acquisitions as if the acquisitions occurred on July 1, 2013. The pro forma net loss for the periods ended June 30, 2015 and 2014 includes the additional depreciation and amortization resulting from the adjustments to the value of property and equipment and intangible assets resulting from purchase accounting and adjustment to amortized revenue during Fiscal 2015 and 2014 as a result of the acquisition date valuation of assumed deferred revenue. The pro forma results also include interest expense associated with debt used to fund the acquisitions. The pro forma results do not include any anticipated synergies or other expected benefits of the acquisitions. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2013. Year Ended June 30, 2015 2014 Revenue $ 1,420.2 $ 1,329.6 Net loss $ (182.4 ) $ (221.5 ) The Company is unable to determine the amount of revenue associated with each acquisition recognized in the post-acquisition period as a result of integration activities. |
Goodwill75
Goodwill | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | (3) GOODWILL The Company’s goodwill balance was $1,222.2 million and $1,224.4 million as of December 31, 2015 and June 30, 2015 , respectively. The Company’s reporting units are comprised of its strategic product groups (“SPGs”): Zayo Dark Fiber (“Dark Fiber”), Zayo Wavelength Services (“Waves”), Zayo SONET Services (“SONET”), Zayo Ethernet Services (“Ethernet”), Zayo IP Services (“IP”), Zayo Mobile Infrastructure Group (“MIG”), Zayo Colocation (“zColo"), Zayo Cloud Services (“Cloud”) and Other (primarily ZPS). The following reflects the changes in the carrying amount of goodwill during the six months ended December 31, 2015 : Product Group As of June 30, 2015 Fiscal 2016 Acquisitions Adjustments to Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of December 31, 2015 (in millions) Dark Fiber $ $ $ — $ $ Waves — Sonet — — Ethernet — IP — MIG — — zColo Cloud — — Other — — — Total $ $ $ $ $ During the six months ended December 31, 2015, the Company recorded adjustments to its provisional accounting estimates primarily associated with deferred tax asset balances acquired from the IdeaTek and Latisys acquisitions, which resulted in a $4.8 million reduction to goodwill . | (6) GOODWILL The Company’s goodwill balance was $1,224.4 million and $866.7 million as of June 30, 2015 and 2014, respectively. The Company’s reporting units are comprised of its strategic product groups (“SPGs”): Zayo Dark Fiber (“Dark Fiber”), Zayo Wavelength Services (“Waves”), Zayo SONET Services (“SONET”), Zayo Ethernet Services (“Ethernet”), Zayo IP Services (“IP”), Zayo Mobile Infrastructure Group (“MIG”), Zayo Colocation (“zColo"), Zayo Cloud Services (“Cloud”) and Other (primarily ZPS). The following reflects the changes in the carrying amount of goodwill during Fiscal 2015 (in millions): Product Group As of July 1, 2014 Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of June 30, 2015 Dark Fiber $ 293.3 $ 16.0 $ (10.2 ) $ 299.1 Waves 269.0 1.4 (4.8 ) 265.6 Sonet 50.3 — — 50.3 Ethernet 96.7 8.2 (0.7 ) 104.2 IP 80.5 6.8 (1.0 ) 86.3 MIG 43.7 29.8 (0.1 ) 73.4 zColo 18.6 256.0 (1.4 ) 273.2 Cloud — 57.2 (0.2 ) 57.0 Other 14.6 0.9 (0.2 ) 15.3 Total $ 866.7 $ 376.3 $ (18.6 ) $ 1,224.4 The following reflects the changes in the carrying amount of goodwill during Fiscal 2014 (in millions): Product Group As of July 1, 2013 Fiscal 2014 Acquisitions Foreign Currency Translation and Other As of June 30, 2014 Dark Fiber $ 193.3 $ 97.4 $ 2.6 $ 293.3 Waves 215.9 49.6 3.5 269.0 Sonet 50.3 — — 50.3 Ethernet 91.7 4.9 0.1 96.7 IP 80.1 0.2 0.2 80.5 MIG 38.3 5.4 — 43.7 zColo 11.9 6.4 0.3 18.6 Other 7.3 — 7.3 14.6 Total $ 688.8 $ 163.9 $ 14.0 $ 866.7 |
Intangible Assets76
Intangible Assets | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Intangible Assets | (4) INTANGIBLE ASSETS Identifiable acquisition-related intangible assets as of December 31, 2015 and June 30, 2015 were as follows: Gross Carrying Amount Accumulated Amortization Net (in millions) December 31, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names — Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ | (7) INTANGIBLE ASSETS Identifiable acquisition-related intangible assets as of June 30, 2015 and 2014 were as follows (in millions): Gross Carrying Amount Accumulated Amortization Net June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ 1,080.3 $ (155.0 ) $ 925.3 Trade names 0.2 (0.1 ) 0.1 Underlying rights 1.7 (0.2 ) 1.5 Total 1,082.2 (155.3 ) 926.9 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying Rights 17.9 — 17.9 Total $ 1,103.6 $ (155.3 ) $ 948.3 June 30, 2014 Finite-Lived Intangible Assets Customer relationships $ 789.2 $ (103.6 ) $ 685.6 Trade names 0.1 — 0.1 Underlying rights 1.8 (0.1 ) 1.7 Total 791.1 (103.7 ) 687.4 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying rights 19.4 — 19.4 Total $ 814.0 $ (103.7 ) $ 710.3 The weighted average remaining amortization period for the Company’s customer relationships and trade name assets is 16.3 years and 1.0 years, respectively. The Company has determined that certain underlying rights (including easements) and the certifications have indefinite lives. The amortization period for underlying rights (including easements) is 20 years. The amortization of intangible assets for the years ended June 30, 2015, 2014 and 2013 was $54.8 million, $44.0 million, and $44.4 million, respectively. During the years ended June 30, 2015 and 2014, the Company wrote off $3.5 million and $27.2 million in fully amortized intangible assets, respectively. Estimated future amortization of finite-lived intangible assets is as follows (in millions): Year Ended June 30, 2016 $ 66.3 2017 66.2 2018 66.2 2019 66.2 2020 62.6 Thereafter 599.4 Total $ 926.9 |
Long-Term Debt77
Long-Term Debt | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||
Long-Term Debt | (5) LONG-TERM DEBT As of December 31, 2015 and June 30, 2015 , long-term debt was as follows: December 31, June 30, 2015 2015 (in millions) Term Loan Facility due 2021 $ $ 10.125% Senior Unsecured Notes due 2020 6.00% Senior Unsecured Notes Due 2023 6.375% Senior Unsecured Notes Due 2025 Total debt obligations Unamortized discount on Term Loan Facility Unamortized premium on 6.00% Senior Unsecured Notes Unamortized debt issuance costs Carrying value of debt Less current portion Long-term debt, less current portion $ $ Term Loan Facility due 2021 and Revolving Credit Facility On May 6, 2015, the Company and Zayo Capital, Inc. (“Zayo Capital”) entered into an Amendment and Restatement Agreement whereby its credit agreement (the “Credit Agreement”) governing its senior secured term loan facility (the “Term Loan Facility”) and $450 million senior secured revolving credit facility (the “Revolver”) was amended and restated in its entirety. The amended and restated Credit Agreement extended the maturity date of its outstanding term loans under the Term Loan Facility to May 6, 2021. The interest rate margins applicable to the Term Loan Facility were decreased by 25 basis points to LIBOR plus 2.75% with a minimum LIBOR of 1.0% . In addition, the amended and restated Credit Agreement removed the fixed charge coverage ratio covenant and replaced such covenant with a springing senior secured leverage ratio maintenance requirement applicable only to the Revolver, increased certain lien and debt baskets, and removed certain covenants related to collateral. The terms of the Term Loan Facility require the Company to make quarterly principal payments of $4.1 million plus an annual payment of up to 50% of excess cash flow, as determined in accordance with the Credit Agreement (no such payment was required during the three and six months ended December 31, 2015 or 2014 ). The Revolver matures at the earliest of (i) April 17, 2020 , (ii) six months prior to the maturity date of the Term Loan Facility, subject to amendment thereof, and (iii) six months prior to the maturity date of the 2020 Unsecured Notes (as defined below), subject to repayment or amendment thereof. The Credit Agreement also allows for letter of credit commitments of up to $50.0 million. The Revolver is subject to a fee per annum of 0.25% to 0.375% (based on its current leverage ratio) of the weighted-average unused capacity, and the undrawn amount of outstanding letters of credit backed by the Revolver are subject to a 0.25% fee per annum. Outstanding letters of credit backed by the Revolver accrue interest at a rate ranging from LIBOR plus 2.0% to LIBOR plus 3.0% per annum based upon its leverage ratio. Interest rates on the Term Loan Facility as of December 31, 2015 and June 30, 2015 were 3.75% . Interest rates on the Revolver as of December 31, 2015 and June 30, 2015 were approximately 3.2% and 3.0%, respectively. As of December 31, 2015 , no amounts were outstanding under the Revolver. Standby letters of credit were outstanding in the amount of $9.2 million as of December 31, 2015 , leaving $440.8 million available under the Revolver. 10.125% Senior Unsecured Notes due 2020 On July 2, 2012, the Company and Zayo Capital (the “Issuers”) issued $500.0 million aggregate principal amount of 10.125% senior unsecured notes due 2020 (the “2020 Unsecured Notes”). On December 15, 2014, the Issuers redeemed $174.4 million of their outstanding 2020 Unsecured Notes at a price of 110.125% and $75.0 million of their then outstanding 8.125% senior secured notes due 2020 at a price of 108.125% (the “Note Redemption”). As part of the Note Redemption, the Company paid an early redemption call premium of $23.8 million, which was recorded as a loss on extinguishment of debt on the consolidated statements of operations during three and six months ended December 31, 2014. 6.00% Senior Unsecured Notes Due 2023 and 6.375% Senior Unsecured Notes due 2025 On January 23, 2015, the Issuers completed a private offering (the “January Notes Offering”) of $700.0 million aggregate principal amount of 6.00% senior unsecured notes due in 2023 (the “2023 Unsecured Notes”). On March 9, 2015, the Issuers completed a private offering of an additional $730.0 million aggregate principal amount of 2023 Unsecured Notes at a premium of 1% (the “March Notes Offering”) resulting in aggregate gross proceeds for the 2023 Unsecured Notes of $1,437.3 million. The issue premium of $7.3 million on the March Notes Offering is being accreted against interest expense over the term of the notes under the effective interest method. The 2023 Unsecured Notes bear interest at the rate of 6.00% per year, which is payable on April 1 and October 1 of each year, beginning on October 1, 2015. The 2023 Unsecured Notes will mature on April 1, 2023 . The net proceeds from the January Notes Offering were used to fund the Latisys acquisition (see Note 2 – Acquisitions ). The net proceeds from the March Notes Offering were used to redeem the remaining $675.0 million of the Issuers’ then outstanding 8.125% senior secured notes due 2020 at a price of 105.75% (the “Second Notes Redemption”). As part of the Second Notes Redemption, the Company paid an early redemption call premium of $38.8 million. The call premium was recorded as a loss on extinguishment of debt on the consolidated statements of operations during the three months ended March 31, 2015. On May 6, 2015, the Issuers completed a private offering of $350.0 million aggregate principal amount of 6.375% senior unsecured notes due in 2025 (the “2025 Unsecured Notes”). Interest on the 2025 Unsecured Notes is payable on May 15 and November 15 of each year, beginning on November 15, 2015. The 2025 Unsecured Notes will mature on May 15, 2025 . The net proceeds from the 2025 Unsecured Notes were used to repay $344.5 million of the Term Loan Facility. As a result of the repayment, the Company recorded a loss on extinguishment of debt of $8.4 million during the three months ended June 30, 2015. Debt covenants The indentures (the “Indentures”) governing the 2020 Unsecured Notes, the 2023 Unsecured Notes and the 2025 Unsecured Notes (collectively the “Notes”) contain covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional indebtedness and issue preferred stock, pay dividends or make other distributions with respect to any equity interests, make certain investments or other restricted payments, create liens, sell assets, incur restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company, consolidate or merge with or into other companies or transfer all or substantially all of their assets, engage in transactions with affiliates, and enter into sale and leaseback transactions. The terms of the Indentures include customary events of default. The Credit Agreement contains customary events of default, including among others, non-payment of principal, interest, or other amounts when due, inaccuracy of representations and warranties, breach of covenants, cross default to certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control. The Credit Agreement also contains a covenant, applicable only to the Revolver, that the Company maintain a senior secured leverage ratio below 5.25:1.00 at any time when the aggregate principal amount of loans outstanding under the Revolver is greater than 35% of the commitments under the Revolver. The indenture governing the 2020 Unsecured Notes limits any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under such indenture) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA, as defined in the indenture, and limits the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 5.25 times the previous quarter’s annualized modified EBITDA. The indentures governing the 2023 Unsecured Notes and the 2025 Unsecured Notes limit any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under such indentures) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA (as defined in such indentures), and limit the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 6.00 times the previous quarter’s annualized modified EBITDA. The Company was in compliance with all covenants associated with its debt agreements as of December 31, 2015 . Guarantees The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future domestic restricted subsidiaries. The Notes were co-issued with Zayo Capital, which does not have independent assets or operations. Debt issuance costs In connection with the Credit Agreement (and subsequent amendments thereto), and the various Notes offerings, the Company incurred debt issuance costs of $99.5 million (net of extinguishments). These costs are being amortized to interest expense over the respective terms of the underlying debt instruments using the effective interest method, unless extinguished earlier, at which time the related unamortized costs are to be immediately expensed. Unamortized debt issuance costs of $23.2 million associated with the Company’s previous indebtedness were recorded as part of the loss on extinguishment of debt during Fiscal 2015 . The balance of debt issuance costs as of December 31, 2015 and June 30, 2015 was $66.2 million and $71.0 million, net of accumulated amortization of $33.3 million and $28.3 million, respectively. The amortization of debt issuance costs is included on the condensed consolidated statements of cash flows within the caption “Non-cash interest expense” along with the amortization or accretion of the premium and discount on the Company’s indebtedness and changes in the fair value of the Company’s interest rate derivatives. Interest expense associated with the amortization of debt issuance costs was $2.5 million and $5.0 million for the three and six months ended December 31, 2015 and $3.8 million and $7.5 million during the three and six months ended December 31, 2014 , respectively. Debt issuance costs are presented in the condensed consolidated balance sheets as a reduction to “Long-term debt, non-current”. Loss on extinguishment of debt In connection with the Note Redemption, the Company recorded an early redemption call premium of $23.8 million and recorded an expense of $7.1 million related to unamortized debt issuance costs associated with the notes redeemed. These expenses are included on the consolidated statements of operations during three and six months ended December 31, 2014. Interest rate derivatives On August 13, 2012, the Company entered into forward-starting interest rate swap agreements with an aggregate notional value of $750.0 million, a maturity date of June 30, 2017 , and a start date of June 30, 2013. There were no up-front fees for these agreements. The contract states that the Company shall pay a 1.67% fixed rate of interest for the term of the agreement beginning on the start date. The counterparty will pay to the Company the greater of actual LIBOR or 1.25% . The Company entered into the forward-starting swap arrangements to reduce the risk of increased interest costs associated with potential changes in LIBOR rates. Changes in the fair value of interest rate swaps are recorded in interest expense in the condensed consolidated statements of operations for the applicable period. The fair value of the interest rate swaps of $3.5 million and $4.1 million are included in “Other long term liabilities” in the Company’s condensed consolidated balance sheets as of December 31, 2015 and June 30, 2015 , respectively. During the three and six months ended December 31, 2015, respectively, $1.0 million and $0.6 million was recorded as a decrease in interest expense for the change in fair value of the interest rate swaps. During the three and six months ended December 31, 2014, respectively, $1.5 million and $(0.5) million was recorded as an increase/(decrease) in interest expense for the change in the fair value of the interest rate swaps. | (8) LONG-TERM DEBT As of June 30, 2015 and 2014, long-term debt was as follows (in millions): 2015 2014 Term Loan Facility due 2021 $ 1,646.8 $ 2,010.8 8.125% Senior Secured Notes due 2020 — 750.0 10.125% Senior Unsecured Notes due 2020 325.6 500.0 6.00% Senior Unsecured Notes Due 2023 1,430.0 — 6.375% Senior Unsecured Notes Due 2025 350.0 — Total debt obligations 3,752.4 3,260.8 Unamortized discount on Term Loan Facility (19.8 ) (20.6 ) Unamortized premium on 6.00% Senior Unsecured Notes 7.1 — Unamortized debt issuance costs (71.0 ) (89.4 ) Carrying value of debt 3,668.7 3,150.8 Less current portion (16.5 ) (20.5 ) Long-term debt, less current portion $ 3,652.2 $ 3,130.3 On July 2, 2012, the Company and Zayo Capital, Inc. (“Zayo Capital”) issued $750.0 million aggregate principal amount of 8.125% senior secured first-priority notes due 2020 (the “2020 Secured Notes”) and $500.0 million aggregate principal amount of 10.125% senior unsecured notes due 2020 (the “2020 Unsecured Notes”, and together with the 2020 Secured Notes, the “2020 Notes”). On July 2, 2012, the Company also entered into a $250.0 million senior secured revolving credit facility (the “Revolver”) and a $1,620.0 million senior secured term loan facility (the “Term Loan Facility”), both of which have been subsequently amended (the “Credit Agreement”). The Term Loan Facility was issued at a discount of $30.0 million and has a maturity date of July 2019. The issue discount is being amortized to interest expense over the term of the loan. The terms of the amended Term Loan Facility require the Company to make quarterly principal payments of $5.1 million plus an annual payment of up to 50% of excess cash flow, as determined in accordance with the Credit Agreement (no such payment was required during the years ended June 30, 2015 and 2014, respectively). A portion of the net proceeds from the Existing Notes and the Term Loan Facility, together with cash on hand and equity contributions (See Note 11 —Equity In connection with the debt extinguishment activities discussed above, the Company recognized an expense in July 2012 of $65.0 million associated with debt extinguishment costs, including a cash expense of $39.8 million associated with the payment of early redemption fees on the Company’s previous indebtedness and non-cash expenses of $17.0 million associated with the write-off of the Company’s unamortized debt issuance costs and $8.2 million associated with writing-off the net unamortized discount on the debt balances extinguished. On October 5, 2012, the Company and Zayo Capital entered into a second amendment (the “Second Amendment”) to the Credit Agreement governing its Term Loan Facility and Revolver. Under the terms of the Second Amendment, effective October 5, 2012, the interest rate on the Term Loan Facility was adjusted to bear an interest rate at LIBOR plus 4.0% (subject to a 5.25% floor), which represented a decrease of 187.5 basis points from the original Credit Agreement. The Second Amendment also reduced the interest rate on the Revolver by 187.5 basis points. On February 27, 2013, the Company and Zayo Capital entered into a Fourth Amendment (the “Fourth Amendment”) to the Company’s Credit Agreement. Under the terms of the Fourth Amendment, effective February 27, 2013, the interest rate on the Term Loan Facility was further adjusted to bear interest at LIBOR plus 3.5% (subject to a 4.5% floor). The amended terms represent a downward adjustment of 50 basis points on the spread and a further 25 basis point reduction minimum floor. Under the terms of the Fourth Amendment, the Revolver bore interest at LIBOR plus 3.00%, based on the Company’s current leverage ratio, which represented a 50 basis point reduction. The Fourth Amendment also amended certain terms and provisions of the Credit Agreement, including removing the senior secured and total leverage maintenance covenants and increasing the total leverage ratio required to be met in order to incur certain additional indebtedness from 5.00:1.00 to 5.25:1.00 as a multiple of EBITDA (as defined in the Credit Agreement). In connection with the aforementioned amendments, the Company incurred early redemption call premiums of $16.2 million and $16.1 million for the Second Amendment and Fourth Amendment, respectively. The early redemption call premiums were paid with cash on hand to the syndicate of creditors in the Term Loan Facility. Prior to the consummation of the amendments, the Company requested the consent of all creditors holding balances in the Term Loan Facility to the amended terms. $15.3 million and $15.0 million of the early call premium paid to consenting creditors in the Second and Fourth Amendments, respectively, were accounted for as additional debt issuance costs for the modified obligations during the year ended June 30, 2013, which are being amortized over the term of the Term Loan Facility using the effective interest method. The remaining call premium of $0.9 million and $1.1 million associated with the Second and Fourth Amendments, respectively, that was paid to non-consenting creditors has been recorded as a loss on extinguishment of debt on the consolidated statements of operations for the year ended June 30, 2013. Existing and/or new creditors replaced the non-consented commitments, such that the full amount of the Term Loan Facility’s commitments were replaced in both the Second and Fourth Amendments. In connection with the Second and Fourth Amendments, the Company recognized an expense of $12.2 million during the year ended June 30, 2013 associated with debt extinguishment costs. The loss on extinguishment of debt associated with the amendments includes the aforementioned early call premiums paid to non-consenting creditors, non-cash expense associated with the write off of unamortized debt issuance costs and issuance discounts on the debt balances accounted for as an extinguishment, and certain fees paid to third parties involved in the amendments. On November 26, 2013, the Company and Zayo Capital entered into a Fifth Amendment (the “Fifth Amendment”) to the Company’s Credit Agreement. Under the terms of the Fifth Amendment, the Term Loan Facility was increased by $150.0 million to $1,749.8 million and the interest rate was adjusted to LIBOR plus 3.0% with a minimum LIBOR rate of 1.0%. The amended terms represented a downward adjustment of 50 basis points on the interest rate from the Fourth Amendment. The interest rate on the Revolver was amended to LIBOR plus 2.75% (based on the Company’s then current leverage ratio), which represented a downward adjustment of 25 basis points on the interest rate from the Fourth Amendment. In connection with the Fifth Amendment, the Company did not incur a re-pricing premium. Also, in connection with the Fifth Amendment, the Company recognized an expense during the second quarter of Fiscal 2014 of $1.9 million associated with debt extinguishment costs, including cash expense of $1.0 million related to third party costs and non-cash expense of $0.9 million associated with the write-off of the Company’s unamortized debt issuance costs and discount on the Term Loan Facility accounted for as an extinguishment. The Company also incurred an additional $1.5 million in debt issuance costs in the second quarter of Fiscal 2014. On May 16, 2014, the Company and Zayo Capital Inc. entered into a Sixth Amendment (the “Sixth Amendment”) to the Credit Agreement. Per the terms of the Sixth Amendment, the Company’s Term Loan Facility was increased by $275.0 million to $2,015.9 million and bears interest at the existing rate of LIBOR plus 3.0 percent with a minimum LIBOR rate of 1.0 percent. The $275.0 million add-on was priced at 99.5 percent. No other terms of the Credit Agreement were amended. In connection with the Sixth Amendment, the Company incurred an additional $3.2 million in debt issuance costs and $1.4 million was recorded as a discount. On December 15, 2014, the Company redeemed $75.0 million of its outstanding 2020 Secured Notes at a price of 108.125% of the principal amount and $174.4 million of its outstanding 2020 Unsecured Notes at a price of 110.125% (collectively, the “December Notes Redemption”). As part of the Note Redemption, the Company recorded an early redemption call premium of $23.8 million which has been recorded as a loss on extinguishment of debt on the consolidated statements of operations in Fiscal 2015. On January 23, 2015, the Company and Zayo Capital (together “the Issuers”) completed a private offering (the “January Notes Offering”) of $700.0 million aggregate principal amount of 6.00% senior unsecured notes due in 2023 (the “2023 Unsecured Notes”). On March 9, 2015, the Issuers completed a private offering of an additional $730.0 million aggregate principal amount of 2023 Unsecured Notes at a premium of 1% (the “March Notes Offering”, and together with the January Notes Offering, the “2023 Notes Offerings”) resulting in aggregate gross proceeds for the 2023 Unsecured Notes of $1,437.3 million. The issue premium of $7.3 million on the March Notes Offerings is being accreted against interest expense over the term of the notes under the effective interest method. The 2023 Unsecured Notes bear interest at the rate of 6.00% per year, which is payable on April 1 and October 1 of each year, beginning on October 1, 2015. The 2023 Unsecured Notes will mature on April 1, 2023. The net proceeds from the January Notes Offering were used to fund the Latisys acquisition (see Note 3 – Acquisitions On April 17, 2015, the Company entered into a Seventh Amendment (the “Seventh Amendment”) to the Credit Agreement. Per the terms of the Seventh Amendment, the Revolver was increased by $200.0 million to $450.0 million, and its maturity date was extended to the earliest of (i) five years after the effective date of the Seventh Amendment, (ii) six months prior to the maturity date of the Company’s Term Loan Facility, subject to amendment thereof, and (iii) six months prior to the maturity date of the Company’s 2020 Unsecured Notes, subject to repayment or amendment thereof. The Seventh Amendment also increased the letter of credit commitment from $30.0 to $50.0 and provided that, in the event that the Term Loan Facility was amended or refinanced to remove all financial maintenance covenants, the Fixed Charge Coverage Ratio maintenance requirement would be replaced with a springing Senior Secured Leverage Ratio maintenance requirement applicable only to the Revolver. Further, pursuant to the Seventh Amendment, up to $50.0 of revolving loans and letters of credit may be denominated in or issued in, as applicable, Euros or British Pound Sterling. Further, pursuant to the Seventh Amendment, up to $50.0 million of revolving loans and letters of credit may be denominated in or issued in, as applicable, Euros or British Pound Sterling. On May 6, 2015, the Company and Zayo Capital issued $350.0 million aggregate principal amount of 6.375% senior unsecured notes due in 2025 (the “2025 Senior Unsecured Notes”). Interest on the 2025 Unsecured Notes is payable on May 15 and November 15 of each year, beginning on November 15, 2015. The 2025 Unsecured Notes will mature on May 15, 2025. The net proceeds from the 2025 Senior Unsecured Notes were used to repay $344.5 million of the Company’s Term Loan Facility. As a result of the repayment, the Company recorded a loss on extinguishment of debt of $8.4 million. On May 6, 2015, the Company entered into an Amendment and Restatement Agreement whereby the Credit Agreement was amended and restated in its entirety. The amended and restated Credit Agreement extended the maturity date of all of the outstanding term loans under the Term Loan Facility to May 6, 2021. The interest rate margins applicable to the Term Loan Facility were decreased by 25 basis points to LIBOR plus 2.75% with a minimum LIBOR of 1.0%. In addition, the amended and restated Credit Agreement removed the Fixed Charge Coverage Ratio covenant and replaced such covenant with a springing Senior Secured Leverage Ratio maintenance requirement applicable only to the Revolver, increased certain lien and debt baskets, and removed certain covenants related to collateral. Interest rates on the Term Loan Facility and Revolver as of June 30, 2015 were 3.75% and 3.0%, respectively. As of June 30, 2015, no amounts were outstanding under the Revolver. Standby letters of credit were outstanding in the amount of $9.2 million as of June 30 2015, leaving $440.8 million available under the Revolver as of June 30, 2015. The Revolver is subject to a i) fee per annum of 0.25% to 0.375% (based on the Company’s current leverage ratio) of the weighted-average unused capacity and ii) the undrawn amount of outstanding letters of credit backed by the Revolver are subject to a 0.25% fee per annum. Outstanding letters of credit backed by the Revolver accrue interest at a rate ranging from LIBOR plus 2.0% to LIBOR plus 3.0% per annum based upon the Company’s leverage ratio. The Revolver has a maturity date of January 2020. Debt covenants The indentures (the “Indentures”) governing the 2020 Unsecured Notes, the 2023 Unsecured Notes and the 2025 Unsecured Notes (collectively the “Notes”) contain covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional indebtedness and issue preferred stock; pay dividends or make other distributions with respect to any equity interests, make certain investments or other restricted payments, create liens, sell assets, incur restrictions on the ability of the Company’s restricted subsidiaries to pay dividends or make other payments to the Company, consolidate or merge with or into other companies or transfer all or substantially all of their assets, engage in transactions with affiliates, and enter into sale and leaseback transactions. The terms of the Indentures include customary events of default. The Credit Agreement contains customary events of default, including among others, non-payment of principal, interest, or other amounts when due, inaccuracy of representations and warranties, breach of covenants, cross default to certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control. The Credit Agreement also contains a covenant, applicable only to the Revolver, that the Company maintains a senior secured leverage ratio below 5.25:1.00 at any time when the aggregate principal amount of loans outstanding under the Revolver is greater than 35% of the commitments under the Revolver. The Indentures governing the 2020 Unsecured Notes limit any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under the indentures) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA, as defined in the Indentures, and limit the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 5.25 times the previous quarter’s annualized modified EBITDA. The indentures governing the 2023 Unsecured Notes and the 2025 Unsecured Notes limit any increase in the Company’s secured indebtedness (other than certain forms of secured indebtedness expressly permitted under such indentures) to a pro forma secured debt ratio of 4.50 times the Company’s previous quarter’s annualized modified EBITDA (as defined in the indentures), and limit the Company’s incurrence of additional indebtedness to a total indebtedness ratio of 6.00 times the previous quarter’s annualized modified EBITDA. The Company was in compliance with all covenants associated with its debt agreements as of June 30, 2015 and 2014. Redemption rights At any time prior to May 15, 2018 (for the 2025 Unsecured Notes), April 1, 2018 (for the 2023 Unsecured Notes) and July 1, 2016 (for the 2020 Unsecured Notes) the Company may redeem all or part of the applicable Notes at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) accrued interest and a “make-whole” premium, which is a lump sum payment derived from a formula based on the net present value of future coupon payments that will not be paid because of the early redemption. On or after May 1, 2020 ( for the 2025 Unsecured Notes for the 2023 Unsecured Notes July 1, 2016 (for the 2020 Unsecured Notes) Year Redemption Price (2020 Unsecured Notes) 2016 105.063% 2017 102.531% 2018 and thereafter 100.000% Year Redemption Price (2023 Unsecured Notes) 2018 104.500% 2019 103.000% 2020 101.500% 2021 and thereafter 100.000% Year Redemption Price (2025 Unsecured Notes) 2020 103.188% 2021 102.125% 2022 101.063% 2023 and thereafter 100.000% The Company may purchase the Notes in open-market transactions, tender offers, or otherwise. The Company is not required to make any mandatory redemption or sinking fund payments with respect to the Notes. Aggregate future contractual maturities of long-term debt (excluding issue discounts and premiums) were as follows as of June 30, 2015 (in millions): Year Ended June 30, 2016 $ 16.5 2017 16.5 2018 16.5 2019 16.5 2020 16.5 Thereafter 3,669.9 Total $ 3,752.4 Guarantees The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future domestic restricted subsidiaries. The Notes were co-issued with Zayo Capital, which does not have independent assets or operations. Debt issuance costs In connection with the Credit Agreement (and subsequent amendments thereto), and the various Note offerings, the Company incurred debt issuance costs of $99.3 million (net of extinguishments). These costs are being amortized to interest expense over the respective terms of the underlying debt instruments using the effective interest method, unless extinguished earlier, at which time the related unamortized costs are to be immediately expensed. Unamortized debt issuance costs of $23.2 million, $0.7 million and $42.3 million associated with the Company’s previous indebtedness were recorded as part of the loss on extinguishment of debt during the years ended June 30, 2015, 2014 and 2013, respectively. The balance of debt issuance costs as of June 30, 2015 and June 30, 2014 was $71.0 million and $89.4 million, net of accumulated amortization of $28.3 million and $25.4 million, respectively. The amortization of debt issuance costs is included on the consolidated statements of cash flows within the caption “Non-cash interest expense” along with the amortization or accretion of the premium and discount on the Company’s indebtedness and changes in the fair value of the Company’s interest rate derivatives. Interest expense associated with the amortization of debt issuance costs was $13.9 million for the years ended June 30, 2015 and 2014 and $11.5 million during the year ended June 30, 2013. Debt issuance costs are presented in the consolidated balance sheets as a reduction to “Long-term debt, non-current”. Interest rate derivatives On August 13, 2012, the Company entered into forward-starting interest rate swap agreements with an aggregate notional value of $750.0 million, a maturity date of June 30, 2017, and a start date of June 30, 2013. There were no up-front fees for these agreements. The contract states that the Company shall pay a 1.67% fixed rate of interest for the term of the agreement beginning on the start date. The counter-party will pay to the Company the greater of actual LIBOR or 1.25%. The Company entered in to the forward-starting swap arrangements to reduce the risk of increased interest costs associated with potential changes in LIBOR rates. Changes in the fair value of interest rate swaps are recorded in interest expense in the consolidated statements of operations for the applicable period. The fair value of the interest rate swaps of $4.1 million and $2.0 million are included in “Other long term liabilities” in the Company’s consolidated balance sheet as of June 30, 2015 and 2014, respectively. During the year ended June 30, 2015, 2014 and 2013, $2.1 million, $4.6 million and $(2.6) were recorded as an increase/(decrease) in interest expense for the change in the fair value of the interest rate swaps. |
Income Taxes78
Income Taxes | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | (6) INCOME TAXES The Company, a limited liability company, is taxed at the Holdings level. All income tax balances resulting from the operations of Zayo Group, on a separate return basis, are reflected in these financial statements. The Company’s provision for income taxes from operations is summarized as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Current Income Taxes (in millions) Federal $ $ $ $ State Foreign — Total $ $ $ $ Deferred Income Taxes Federal $ $ $ $ State Foreign Total Total provision/(benefit) for income taxes $ $ $ $ The United States and foreign components of loss from operations before income taxes for the three and six months ended December 31, 2015 and 2014 are as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) United States $ $ $ $ Foreign Total $ $ $ $ The Company’s effective income tax rate differs from what would be expected if the federal statutory rate were applied to earnings before income taxes primarily because of certain expenses that represent permanent differences between book and tax expenses and deductions, such as the stock-based compensation expense related to the common units of Communications Infrastructure Investments, LLC (“CII”) that is recorded as an expense for financial reporting purposes but is not deductible for tax purposes (See Note 7 – Equity ). A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the three and six-month periods ended December 31, 2015 and 2014 is as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Expected benefit at the statutory rate $ $ $ $ Increase/(decrease) due to: Non-deductible stock-based compensation State income taxes benefit, net of federal benefit — Transactions costs not deductible for tax purposes Foreign tax rate differential Other, net Provision/(benefit) for income taxes $ $ $ $ Each interim period, management estimates the annual effective tax rate and applies that rate to its reported year-to-date earnings. The tax expense or benefit related to items for which management is unable to make reliable estimates or that are significant, unusual, or extraordinary items that will be separately reported, or reported net of their related tax effect, are individually computed and are recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws, tax rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgments, including but not limited to the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent differences, and the likelihood of realizing deferred tax assets generated in both the current year and prior years. The accounting estimates used to compute the interim provision for income taxes may change as new events occur, more experience is acquired, additional information is obtained, or the tax environment changes. | (9) INCOME TAXES The Company, a limited liability company, is taxed at the Holdings level. All income tax balances resulting from the operations of Zayo Group, on a separate return basis, are reflected in these financial statements. The Company’s (benefit)/provision for income taxes from operations are summarized as follows (in millions): The United States and foreign components of (loss)/benefit from operations before income taxes are as follows (in millions): Year Ended June 30, 2015 2014 2013 Current Income Taxes Federal $ 1.7 $ 6.3 $ — State 4.4 3.8 1.7 Foreign (1.6 ) 3.3 — Total $ 4.5 $ 13.4 $ 1.7 Deferred Income Taxes Federal $ (8.6 ) $ 26.3 $ (23.5 ) State (6.9 ) 1.2 (3.5 ) Foreign 2.3 (0.6 ) 3.5 Total (13.2 ) 26.9 (23.5 ) Total (benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) The United States and foreign components of loss from operations before income taxes are as follows (in millions): Year Ended June 30, 2015 2014 2013 United States $ (159.4 ) $ (127.8 ) $ (179.5 ) Foreign $ (4.4 ) $ (9.0 ) $ 15.8 Total $ (163.8 ) $ (136.8 ) $ (163.7 ) The Company’s effective income tax rate differs from what would be expected if the federal statutory rate were applied to earnings before income taxes primarily because of certain expenses that represent permanent differences between book and tax expenses and deductions, such as the stock-based compensation expense related to the Company’s CII common units that is recorded as an expense for financial reporting purposes but is not deductible for tax purposes. A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the years ended June 30, 2015, 2014 and 2013 are as follows (in millions): Year ended June 30, 2015 2014 2013 Expected benefit/provision at the statutory rate $ (57.3 ) $ (47.9 ) $ (57.1 ) Increase/(decrease) due to: Non-deductible stock-based compensation 59.4 96.5 35.6 State income taxes benefit, net of federal benefit (7.4 ) (6.3 ) (1.9 ) Transactions costs not deductible for tax purposes 0.7 0.8 1.3 Reversal of uncertain tax positions, net — (2.6 ) — State NOL adjustment — — 2.8 Change in effective tax rate (2.2 ) (0.3 ) — Change in valuation allowance — 1.3 — Foreign tax rate differential 0.6 1.0 (2.3 ) Other, net (2.5 ) (2.2 ) (0.2 ) (Benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (millions): June 30, 2015 2014 Deferred income tax assets Net operating loss carry forwards $ 434.0 $ 415.6 Alternate minimum tax credit carryforwards 8.4 6.3 Deferred revenue 243.5 190.7 Accrued expenses 27.9 22.4 Other liabilities 14.4 7.6 Reserves against accounts receivable 10.2 6.4 Other 17.4 2.1 Total deferred income tax assets 755.8 651.1 Valuation allowance (1.1 ) (2.2 ) Net deferred tax assets 754.7 648.9 Deferred income tax liabilities Property and equipment 468.9 374.4 Intangible assets 327.2 239.3 Debt issuance costs 18.8 27.2 Total deferred income tax liabilities 814.9 640.9 Net deferred income tax assets/(liabilities) $ (60.2 ) $ 8.0 As of June 30, 2015, the Company had $1,115.0 million of federal net operating loss ("NOL") carry forwards. It utilized approximately $95.9 million during Fiscal 2015. The Company has completed several acquisitions in which it acquired net operating loss tax attributes as part of the purchase. These acquisitions, however, were considered a "change in ownership within the meaning of Section 382 of the Internal Revenue Code and, as a result, such NOL carry forwards are subject to an annual limitation, reducing the amount available to offset income tax liabilities absent the limitation. Currently available NOL carry forwards as of June 30, 2015 are approximately $485.9 million. An additional $185.9 million will become available for use during fiscal year ended June 30, 2016. The Company's NOL carry forwards, if not utilized to reduce taxable income in future periods, will expire in various amounts beginning in 2020 and ending in 2032. As of June 30, 2015, the Company had approximately $11.6 million of foreign jurisdiction net operating loss carry forwards, primarily in France. The majority of these foreign jurisdiction net operating loss carry forwards do not expire. As of June 30, 2015, the Company had tax-effected state net operating loss carry forwards of approximately $38.7 million, which are subject to limitations on their utilization and have various expiration dates through 2032. Management believes it is more likely than not that it will utilize its net deferred tax assets to reduce or eliminate tax payments in future periods, with the exception of deferred tax assets related to a foreign subsidiary. The Company’s evaluation encompassed (i) a review of its recent history of taxable income for the past three years and (ii) a review of internal financial forecasts demonstrating its expected ability to fully utilize its deferred tax assets prior to expiration. Release of Accrual for Uncertain Tax Position During Fiscal 2014, the Company released an accrual of $2.6 million related to an uncertain tax position previously recognized in connection with the FiberNet acquisition upon settlement of the matter with the Internal Revenue Service. The uncertain tax position was associated with a deduction taken for accelerated vesting of restricted stock units. This reduced the Company's estimated effective tax rate for the fiscal year ended June 30, 2014. The remaining accrual was recorded as a reduction of the deferred tax assets associated with the Company's net operating loss carry forwards. Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s financial statements, and as a result of the substantial NOL carry forwards, are netted against the Company’s deferred tax asset balance in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): Year Ended June 30, 2014 Balance, beginning of year $ 6.4 Decreases (6.4 ) Balance, end of year $ — |
Equity79
Equity | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Equity [Abstract] | ||
Equity | (7) EQUITY Zayo Group was initially formed on May 4, 2007, and is a wholly-owned subsidiary of Holdings. Prior to October 16, 2014, Holdings was a wholly owned subsidiary of CII. CII was organized on November 6, 2006, and subsequently capitalized on May 7, 2007, with capital contributions from various institutional and founder investors. Cash, property, and service proceeds from the capitalization of CII were contributed to the Company, and the contributions are reflected in the Company’s member’s interest. During Fiscal 2015, there was a deemed modification to the Company’s stock compensation arrangements with employees and directors. The modification resulted in a reclassification of previously recorded stock-based compensation liability to member’s interest. During the six months ended December 31, 2015, the Company recorded an $87.6 million increase in member’s interest associated with stock-based compensation expense related to the Company’s equity classified stock-based compensation awards (See Note 8 – Stock-based Compensation ). Additionally, the Company recorded an increase to member’s interest of $5.1 million associated with a net tax benefit from stock-based compensation. The net tax benefit is a result of the stock-based compensation deduction for tax purposes exceeding the stock-based compensation expense recorded in the Company’s condensed consolidated statement of operations. As a result of this net benefit, the Company retained $0.6 million in cash during the six months ended December 31, 2015 that would have otherwise been paid in income taxes during the current period. The remaining $4.5 million net tax benefit allowed the Company to preserve an equal amount of its federal net operating loss carryforward balance. Under GAAP, the gross tax benefit recognized during the period of $7.9 million has been recorded on the condensed consolidated statement of cash flows as a cash inflow in the financing activities section and an offsetting outflow of $7.9 million has been recorded as a cash outflow in the cash provided by operating activities section. During the three months ended December 31, 2015 , the Company repurchased 726,327 shares of ZGH common stock for $17.5 million. The stock repurchase on behalf of the Company’s parent is included on the condensed consolidated statement of memb er’s equity as a Capital distribution to parent during the six months ended December 31, 2015. | (11) EQUITY Zayo Group was initially formed on May 4, 2007, and is a wholly-owned subsidiary of Holdings. Prior to October 16, 2014, Holdings was a wholly owned subsidiary of CII (See Note 1 – Business). CII was organized on November 6, 2006, and subsequently capitalized on May 7, 2007, with capital contributions from various institutional and founder investors. Cash, property, and service proceeds from the capitalization of CII were contributed to the Company, and the contributions are reflected in the Company’s member’s equity. During the years ended June 30, 2015, 2014 and 2013, Holdings contributed $385.0 million, $5.6 million and $344.0 million, respectively, in cash to the Company. During the year ended June 30, 2015 there was a deemed modification to the Company’s stock compensation arrangements with employees and directors. The modification resulted in a reclassification of previously recorded stock-based compensation liability to member’s interest (see Note 12 – Stock-Based Compensation As discussed in Note 3— Acquisitions, Prior to the spin-off of Onvoy to CII, Holdings was the taxable parent of the Company and Onvoy Voice Services, Inc. (“Onvoy”). Holdings allowed for the sharing of Holdings’ NOL carry forwards between the Company and Onvoy. To the extent that any entity utilized NOLs or other tax assets that were generated or acquired by the other entity, the entities would settle the related-party transfer of deferred tax asset associated with such NOLs and other deferred-tax transfers between the companies via an increase or decrease to the respective entity’s member’s equity. During the years ended June 30, 2014 and 2013 $6.0 million $5.3 million |
Stock-Based Compensation80
Stock-Based Compensation | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Share Based Compensation [Abstract] | ||
Stock-Based Compensation | (8) STOCK-BASED COMPENSATION The following table summarizes the Company’s stock-based compensation expense for liability and equity classified awards included on the condensed consolidated statements of operations. Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Included in: (in millions) Operating costs $ $ $ $ Selling, general and administrative expenses Total stock-based compensation expense $ $ $ $ CII common and preferred units $ $ $ $ Part A restricted stock units Part B restricted stock units Part C restricted stock units — — Total stock-based compensation expense $ $ $ $ CII Common and Preferred Units Prior to ZGH’s initial public offering (the “IPO”), the Company was given authorization by CII to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. In connection with ZGH’s IPO and the related amendment to the CII operating agreement, there was a deemed modification to the stock compensation arrangements with the Company’s employees and directors. As a result, previously issued common units which were historically accounted for as liability awards, became classified as equity awards. Prior to reclassifying the common unit liability to equity, the Company re-measured the fair value of the CII common units factoring in the change in fair value since September 30, 2014 and the change in fair value caused by the modification. The fair value of these previously vested common units was estimated to be $490.2 million on the modification date and this amount was recorded as an increase to additional-paid-in-capital during the year ended June 30, 2015 . The fair value of the unrecognized compensation expense associated with unvested CII common units is being recognized over the remaining vesting period of CII’s outstanding common units through May 15, 2017 . On October 9, 2014, the Company and CII’s board of managers approved a non-liquidating distribution by CII of shares of ZGH’s common stock held by CII to holders of CII vested common units. Employees and independent directors of the Company with vested CII common units received shares of ZGH’s common stock equal in value to the underlying value of their vested CII common units. The total number of shares of ZGH’s common stock that were distributed to CII common unit holders in connection with this non-liquidating distribution was 20,460,047 shares. Employees with unvested CII common units at the time of the IPO have and/or will continue to receive monthly distributions from CII of ZGH’s common stock as they vest under the original terms of the CII common unit grant agreements. A total of 6,353,302 shares of ZGH’s common stock are associated with unvested CII common units that have or will be distributed subsequent to the IPO date. In addition, CII has and may in the future be required to distribute additional shares of ZGH’s common stock to CII common unit holders on a quarterly basis based on ZGH’s stock price performance through June 30, 2016, subject to the existing vesting provisions of the CII common units. The shares to be distributed to the common unit holders are based on a pre-existing distribution mechanism, whose primary input is ZGH’s stock price at each subsequent measurement date. Any remaining shares of common stock owned by CII will be distributed to the existing CII preferred unit holders. The total number of shares of ZGH’s common stock that have or will be distributed to existing CII preferred or common unit holders subsequent to the IPO date is 10,294,867 shares. CII has issued preferred units of CII to certain of the Company’s executives and independent directors as compensation. In connection with the non-liquidating distribution by CII approved on October 9, 2014, the Company’s CEO and independent directors with vested CII preferred units received 256,265 shares of ZGH’s common stock equal to the underlying value of their vested CII preferred units. A total of 29,555 shares of ZGH’s common stock associated with CII preferred units that were unvested at the time of the IPO have been distributed subsequent to the IPO date. The valuation of the CII common units as of the IPO date was determined based on a Monte Carlo simulation. The Monte Carlo valuation analysis attempts to approximate the probability of certain outcomes by running multiple trial runs, called simulations, using random variables to generate potential future stock prices. This valuation technique was used to estimate the fair value associated with future distributions of common stock to CII common unit holders. The Monte Carlo simulation first projects the number of shares to be distributed by CII to the common unit holders at each subsequent measurement date based on stock price projections under each simulation. Shares attributable to unvested CII common units are subject to the existing vesting provisions of the CII common unit awards. The estimated future value of shares scheduled to be distributed by CII based on vesting provisions are calculated under each independent simulation. The present value of the number of shares of common stock to be distributed to common unit holders under each simulation is then computed, and the average of each simulation is the fair value of the Company’s common shares to be distributed by CII to the common unit holders. This value was then adjusted for prior non-liquidating distributions made by the Company to derive a value for CII common units by class and on per unit basis. These values were used to calculate the fair value of outstanding CII common units as of the IPO date. Various inputs and assumptions were utilized in the valuation method, including forfeiture behavior, vesting provisions, holding restrictions, peer companies’ historical stock volatility, and an appropriate risk-free rate. On June 13, 2014, the Company completed a spin-off of Onvoy, LLC and its subsidiaries (“OVS”) to CII. The value of the CII common units is derived from the value of CII’s investments in the Company and OVS. As the value derived from each of these investments is separately determinable and there is a plan in place to distribute the value associated with the investment in ZGH shares separate from the value derived from OVS, the two components are accounted for separately. The OVS component of the CII awards is adjusted to fair value each reporting period. On December 31, 2015, CII entered into an agreement to sell OVS to a third party. Based on the proposed sale price, the estimated fair value of OVS awards has been increased , resulting in an increase to stock based compensation expense and corresponding increase to member’s interest of $12.4 million during the three and six months ended December 31, 2015. Any proceeds from the sale to be distributed to the Company’s employees will be paid by CII. During the three and six months ended December 31, 2015, the Company recognized $26.4 million and $45.9 million, respectively, of stock-based compensation expense related to fair value adjustments and vesting of CII common and preferred units. During the three and six months ended December 31, 2014, the Company recognized a reduction of $13.3 million and an increase of $109.8 million, respectively, to stock-based compensation expense related to the vesting of CII common and preferred units. As of December 31, 2015, the unrecognized compensation associated with the ZGH component of unvested CII common units was $37.5 million. Performance Incentive Compensation Plan (“PCIP”) During October 2014, ZGH adopted the 2014 Performance Compensation Incentive Plan (“PCIP”). The PCIP includes incentive cash compensation (ICC) and equity (in the form of restricted stock units or “RSUs”). Grants under the PCIP RSU plans are made quarterly for all participants. The PCIP was effective on October 16, 2014 and will remain in effect for a period of 10 years (or through October 16, 2024) unless it is earlier terminated by ZGH’s Board of Directors. The PCIP has the following components: Part A Under Part A of the PCIP, participants, including the Company’s executives, are eligible to earn quarterly awards of RSUs. Each participant in Part A of the PCIP has a RSU target annual award value. Twenty-five percent of this annual target award value is allocated to each fiscal quarter. The final Part A value awarded to a participant for any fiscal quarter is determined by the Compensation Committee subsequent to the end of the respective performance period taking into account ZGH’s measured value creation for the quarter, as well as such other subjective factors that it deems relevant (including group and individual level performance factors). The number of Part A RSUs granted is calculated based on the final award value determined by the Compensation Committee divided by the average closing price of ZGH’s common stock over the last ten trading days of the measured performance period. Part A RSUs vest based upon continued employment through one year after the last day of the quarter in which the Part A RSU grant is made, and at that time will be exchanged for an equal number of shares in ZGH’s common stock. During the three and six months ended December 31, 2015 , the Company recognized $10.2 million and $20.2 million, respectively, of compensation expense associated with the vested portion of the Part A awards. During the three and six months ended December 31, 2014, the Company recognized $2.6 million of compensation expense associated with the vested portion of the Part A awards. The December 2015 and June 2015 quarterly awards were recorded as liabilities totaling $2.0 million and $1.9 million, as of December 31, 2015 and June 30, 2015 , respectively, as the awards represent an obligation denominated in a fixed dollar amount to be settled in a variable number of shares during the subsequent quarter. The quarterly stock-based compensation liability is included in “Other long-term liabilities” in the accompanying condensed consolidated balance sheets. Upon the issuance of the RSUs, the liability is re-measured and then reclassified to member’s interest, with a corresponding charge (or credit) to stock based compensation expense. The value of the remaining unvested RSUs is expensed ratably through the vesting date. At December 31, 2015 , the remaining unrecognized compensation cost to be expensed over the remaining vesting period for Part A awards is $18.7 million. The following table summarizes the Company’s Part A RSU activity for the six months ended December 31, 2015 : Number of Part A RSUs Weighted average grant-date fair value per share Weighted average remaining contractual term in months (in millions, except share data) Outstanding at July 1, 2015 $ Granted $ Vested $ Forfeited $ n/a Outstanding at December 31, 2015 $ Part B Under Part B of the PCIP, participants, including the Company’s executives, are awarded quarterly grants of RSUs. The number of the RSUs earned by the participants is based on ZGH’s stock price performance over a performance period of one year with the starting price being the average closing price over the last ten trading days of the quarter immediately prior to the grant and vest, assuming continuous employment through the end of the measurement period. The existence of a vesting provision that is associated with the performance of ZGH’s stock price is a market condition, which affects the determination of the grant date fair value. Upon vesting, RSUs earned convert to an equal number of shares of ZGH’s common stock. The following table summarizes the Company’s Part B RSU activity for the six months ended December 31, 2015 : Number of Part B RSUs Weighted average grant-date fair value per unit Weighted average remaining contractual term in months (in millions, except share data) Outstanding at July 1, 2015 $ Granted $ Vested $ Forfeited $ Outstanding at December 31, 2015 $ The table below reflects the total Part B RSUs granted during Fiscal 2016 and 2015 , the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into, and the grant date fair value per Part B RSU: During the Three months ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 (in millions, except per share data) Part B RSUs granted Maximum eligible shares of ZGH's stock Grant date fair value per Part B RSU $ $ $ $ $ The Company recognized stock-based compensation expense of $6.0 million and $22.4 million related to Part B awards for the three and six months ended December 31, 2015, respectively, and $4.7 million for the three and six months ended December 31, 2014. The grant date fair value of Part B RSU grants is estimated utilizing a Monte Carlo simulation. This simulation estimates the ten-day average closing stock price ending on the vesting date, the stock price performance over the performance period, and the number of common shares to be issued at the vesting date. Various assumptions are utilized in the valuation method, including the target stock price performance ranges and respective share payout percentages, the Company’s historical stock price performance and volatility, peer companies’ historical volatility and an appropriate risk-free rate. The aggregate future value of the grant under each simulation is calculated using the estimated per share value of the common stock at the end of the vesting period multiplied by the number of common shares projected to be granted at the vesting date. The present value of the aggregate grant is then calculated under each of the simulations, resulting in a distribution of potential present values. The fair value of the grant is then calculated based on the average of the potential present values. The remaining unrecognized compensation cost associated with Part B RSU grants is $8.2 million at December 31, 2015 . Part C Under Part C of the PCIP, independent directors of ZGH are eligible to receive quarterly awards of RSUs. Independent directors electing to receive a portion of their annual director fees in the form of RSUs are granted a set dollar amount of Part C RSUs each quarter. The quantity of Part C RSUs granted is based on the average closing price of ZGH’s common stock over the last ten trading days of the quarter ended immediately prior to the grant date and vest at the end of each quarter for which the grant was made. During the six months ended December 31, 2015, the Company’s independent directors were granted 18,826 Part C RSUs. Part C RSUs vest in the same quarter as issuance. During the three and six months ended December 31, 2015, the Company recognized $0.3 million and $0.5 million, respectively, of compensation expense associated with the Part C RSUs. | (12) STOCK-BASED COMPENSATION The following tables summarize the Company’s stock-based compensation expense for liability and equity classified awards included in the consolidated statements of operations (in millions). Year Ended June 30, Included in: 2015 2014 2013 Operating costs $ 23.3 $ 20.2 $ 7.7 Selling, general and administrative expenses 177.4 233.5 98.1 Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 CII Common units $ 156.4 $ 253.3 $ 104.9 CII Preferred units 0.4 0.4 0.9 Part A restricted stock units 12.6 — — Part B restricted stock units 31.3 — — Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 As of year ended June 30, 2015, there were 933,217 Part A RSUs outstanding and 1,249,873 Part B target RSUs outstanding. CII Common Units Prior to the Company’s IPO, the Company was given authorization by CII to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. In connection with the Company’s IPO and the related amendment to the CII operating agreement, there was a deemed modification to the stock compensation arrangements with the Company’s employees and directors. As a result, previously issued common units which were historically accounted for as liability awards, became classified as equity awards. Prior to reclassifying the common unit liability to equity, the Company re-measured the fair value of the CII common units factoring in the change in fair value since September 30, 2014 and the change in fair value caused by the modification. The fair value of these previously vested common units was estimated to be $490.2 million on the modification date and this amount is reflected in the Company’s consolidated statement of member’s equity as an increase to additional-paid-in-capital during the year ended June 30, 2015. The fair value of the unrecognized compensation expense associated with unvested CII common units is being recognized over the remaining vesting period of the Company’s outstanding common units through May 15, 2017. On October 9, 2014, the Company and CII’s board of managers approved a non-liquidating distribution by CII of shares of ZGH’s common stock held by CII to holders of CII vested common units. Employees and independent directors of the Company with vested CII common units received shares of ZGH’s common stock equal in value to the underlying value of their vested CII common units. The total number of shares of ZGH’s common stock that were distributed to CII common unit holders in connection with this non-liquidating distribution was 20,460,047 shares. Employees with unvested CII common units have and/or will continue to receive monthly distributions from CII of ZGH’s common stock as they vest under the original terms of the CII common unit grant agreements. A total of 6,353,302 shares of ZGH’s common stock associated with unvested CII common units that have or will be distributed subsequent to the IPO date. In addition, CII has and may in the future be required to distribute additional shares of ZGH’s common stock to CII common unit holder s on a quarterly basis through June 30, 2016 based on ZGH’s stock price performance, subject to the existing vesting provisions of the CII common units. The shares to be distributed to the common unit holders are based on a pre-existing distribution mechanism, whose primary input is ZGH’s stock price at each subsequent measurement date. Any remaining shares of common stock owned by CII will be distributed to the existing CII preferred unit holders. The total number of shares of ZGH’s common stock that have or will be distributed to existing CII preferred or common unit holders subsequent to the IPO date is 10,294,867 shares. The valuation of the CII common units as of the IPO date was determined based on a Monte Carlo simulation. The Monte Carlo valuation analysis attempts to approximate the probability of certain outcomes by running multiple trial runs, called simulations, using random variables to generate potential future stock prices. This valuation technique was used to estimate the fair value associated with future distributions of common stock to CII common unit holders. The Monte Carlo simulation first projects the number of shares to be distributed by CII to the common unit holders at each subsequent measurement date based on stock price projections under each simulation. Shares attributable to unvested CII common units are subject to the existing vesting provisions of the CII common unit awards. The estimated future value of shares scheduled to be distributed by CII based on vesting provisions are calculated under each independent simulation. The present value of the number of shares of common stock to be distributed to common unit holders under each simulation is then computed, and the average of each simulation is the fair value of ZGH’s common shares to be distributed by CII to the common unit holders. This value was then adjusted for prior non-liquidating distributions made by the Company to derive a value for CII common units by class and on per unit basis. These values were used to calculate the fair value of outstanding CII common units as of the IPO date. Various inputs and assumptions were utilized in the valuation method, including forfeiture behavior, vesting provisions, holding restrictions, peer companies’ historical volatility, and an appropriate risk-free rate. During the years ended June 30, 2015, 2014 and 2013, the Company recognized $156.4 million, $253.3 million and $104.9 million, respectively, of stock-based compensation expense related to vesting of CII common units. As of June 30, 2015, the unrecognized compensation associated with unvested CII common units was $70.2 million. CII Preferred Units CII has issued preferred units of CII to certain of the Company’s executives and independent directors as compensation. The terms of these preferred unit awards require the Company to record the awards as equity awards. The Company estimates the fair value of these equity awards on the grant date and recognizes the related expense over the vesting period of the awards. As these awards have been issued by CII to employees and directors of the Company as compensation, the related expense has been recorded by the Company in the accompanying consolidated statements of operations. The Company recognized stock-based compensation expense and a related increase to the Company’s member’s interest of $0.4 million, $0.4 million and $0.9 million for the years ended June 30, 2015, 2014, and 2013, respectively. In connection with the non-liquidating distribution by CII approved on October 9, 2014, the Company’s CEO and independent directors with vested CII preferred units received 256,265 shares of ZGH’s common stock equal to the underlying value of their vested CII preferred units. A total of 29,555 shares of ZGH’s common stock associated with unvested CII preferred units have or will be distributed subsequent to the IPO date. Performance Incentive Compensation Plan (“PCIP”) During October 2014, the Company adopted the 2014 Performance Compensation Incentive Plan (“PCIP”). The PCIP includes incentive cash compensation (ICC) and equity (in the form of restricted stock units or “RSUs”). Grants under the PCIP RSU plans are made quarterly for all participants. The PCIP was effective on October 16, 2014 and will remain in effect for a period of 10 years (or through October 16, 2024) unless it is earlier terminated by the Company’s Board of Directors. The PCIP has two components: Part A and Part B. Part A Under Part A of the PCIP, all full-time employees, including the Company’s executives, are eligible to earn quarterly awards of RSUs. Each participant in Part A of the PCIP will have a RSU annual award target value, which will be allocated to each fiscal quarter. The final Part A value awarded to a participant for any fiscal quarter is determined by the Compensation Committee subsequent to the end of the respective performance period taking into account the Company’s measured value creation for the quarter, as well as such other subjective factors that it deems relevant (including group and individual level performance factors). The number of Part A RSUs granted will be calculated based on the final award value determined by the Compensation Committee divided by the average closing price of ZGH’s common stock over the last ten trading days of the respective performance period. Part A RSUs will vest assuming continuous employment fifteen months subsequent to the end of the performance period. Upon vesting, the RSUs convert to an equal number of shares of ZGH’s common stock. During the years ended June 30, 2015 the Company recognized $12.6 million of compensation expense associated with the vested portion of the Part A awards. The June 30, 2015 quarterly award is recorded as a liability totaling $1.9 million as of June 30, 2015, as the awards represent an obligation denominated in a fixed dollar amount to be settled in a variable number of shares during the quarter ending September 30, 2015. Upon the issuance of the RSUs, the liability is re-measured and then reclassified to member’s interest, with a corresponding charge (or credit) to stock based compensation expense. The value of the remaining unvested RSUs is expensed ratably through the vesting date. At June 30, 2015, the remaining unrecognized compensation cost to be expensed over the remaining vesting period for Part A awards is $12.6 million. Part B Under Part B of the PCIP, participants, who include members of the Company’s senior management team, are awarded quarterly grants of RSUs. The number of the RSUs earned by the participants is based on ZGH’s stock price performance over a four fiscal quarter measurement period and vest, assuming continuous employment at the end of the measurement period. The existence of a vesting provision that is associated with the performance of ZGH’s stock price is a market condition, which affects the determination of the grant date fair value. Upon vesting, RSUs convert to an equal number of shares of ZGH’s common stock. The table below reflects the total Part B RSUs granted during each period presented, the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into shares of ZGH’s common stock and the grant date fair value per Part B RSU (in millions): During the three months ended June March 31, 2015 December 31, 2014 Part B RSUs granted 316,353 359,658 575,660 Maximum eligible shares of the Company's stock 1,490,023 1,381,086 2,210,534 Grant date fair value per Part B RSU $ 27.10 $ 24.36 $ 63.12 During years ended June 30, 2015, the Company recognized stock-based compensation expense of $31.3 million related to Part B awards. The grant date fair value of Part B RSU grants is estimated utilizing a Monte Carlo simulation. This simulation estimates the ten-day average closing stock price ending on the vesting date, the stock price performance over the performance period, and the number of common shares to be issued at the vesting date. Various assumptions are utilized in the valuation method, including the target stock price performance ranges and respective share payout percentages, the Company’s historical stock price performance and volatility, peer companies’ historical volatility and an appropriate risk-free rate. The aggregate future value of the grant under each simulation is calculated using the estimated per share value of the common stock at the end of the vesting period multiplied by the number of common shares projected to be granted at the vesting date. The present value of the aggregate grant is then calculated under each of the simulations, resulting in a distribution of potential present values. The fair value of the grant is then calculated based on the average of the potential present values. The remaining unrecognized compensation cost associated with Part B RSU grants is $21.9 million at June 30, 2015. |
Fair Value Measurements81
Fair Value Measurements | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | (9) FAIR VALUE MEASUREMENTS The Company’s financial instruments consist of cash and cash equivalents, restricted cash, trade receivables, accounts payable, interest rate swaps, long-term debt and stock-based compensation liability. The carrying values of cash and cash equivalents, restricted cash, trade receivables and accounts payable approximated their fair values at December 31, 2015 and June 30, 2015 due to the short maturity of these instruments. The carrying value of the Company’s Notes, excluding debt issuance costs, reflects the original amounts borrowed, inclusive of unamortized premium, and was $2,112.3 million and $2,112.7 million as of December 31, 2015 and June 30, 2015 , respectively. Based on market interest rates for debt of similar terms and average maturities, the fair value of the Company's Notes as of December 31, 2015 and June 30, 2015 was estimated to be $2,034.0 million and $2,109.3 million, respectively. The Company’s fair value estimates associated with its Note obligations were derived utilizing Level 2 inputs – quoted prices for similar instruments in active markets. The carrying value of the Company’s Term Loan Facility, excluding debt issuance costs, reflects the original amounts borrowed, net of the unamortized discounts, and was $1,620.2 million and $1,627.0 million as of December 31, 2015 and June 30, 2015 , respectively. The Company’s Term Loan Facility accrues interest at variable rates based upon the one month, three month or six month LIBOR (with a LIBOR floor of 1.00% ) plus a spread of 2.75% . Since management does not believe that the Company’s credit quality has changed significantly since the date when the Term Loan Facility was last amended on May 6, 2015, its carrying amount approximates fair value. Excluding any offsetting effect of the Company’s interest rate swaps, a hypothetical increase in the applicable interest rate on the Company’s Term Loan Facility of one percentage point above the 1.0% LIBOR floor would increase the Company’s annual interest expense by approximately $16.4 million. The Company’s interest rate swaps are valued using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, forward rates, and credit ratings. Changes in the fair value of the interest rate swaps of $1.0 million and $0.6 million were recorded as an decrease to interest expense during the three and six months ended December 31, 2015, respectively, and $1.5 million and $(0.5) million were recorded as an increase/(decrease) to interest expense during the three and six months ended December 31, 2014, respectively . A hypothetical increase in LIBOR rates of 100 basis points would favorably increase the fair value of the interest rate swaps by approximately $9.5 million. As of December 31, 2015 and June 30, 2015 , there was no balance outstanding under the Company's Revolver. Financial instruments measured at fair value on a recurring basis are summarized below: Level December 31, 2015 June 30, 2015 Liabilities Recorded at Fair Value in the Financial Statements: (in millions) Interest rate swap Level 2 $ $ | (13) FAIR VALUE MEASUREMENTS The Company’s financial instruments consist of cash and cash equivalents, restricted cash, trade receivables, accounts payable, interest rate swaps, and long-term debt. The carrying values of cash and cash equivalents, restricted cash, trade receivables, and accounts payable approximated their fair values at June 30, 2015 and 2014, due to the short maturity of these instruments. The carrying value of the Company’s Notes, excluding debt issuance costs, reflects the original amounts borrowed, inclusive of unamortized premium was $2,112.7 million and $1,250.0 million as of June 30, 2015 and 2014, respectively. Based on market interest rates for debt of similar terms and average maturities, the fair value of the Company's Notes as of June 30, 2015 and 2014 was estimated to be $2,109.3 million and $1,294.8 million, respectively. The Company’s fair value estimates associated with its Note obligations were derived utilizing Level 2 inputs – quoted prices for similar instruments in active markets. The carrying value of the Company’s Term Loan Facility, excluding debt issuance costs, reflects the original amounts borrowed, net of the unamortized discounts was $1,627.0 million and $1,990.2 million as of June 30, 2015 and 2014, respectively. The Company’s Term Loan Facility accrues interest at variable rates based upon the one month, three month or six month LIBOR (with a LIBOR floor of 1.00%) plus a spread of 2.75%. Since management does not believe that the Company’s credit quality has changed significantly since the date when the Term Loan Facility last amended on May 6, 2015, its carrying amount approximates fair value. Excluding any offsetting effect of the Company’s interest rate swaps, a hypothetical increase in the applicable interest rate on the Company’s term loan of one percentage point above the LIBOR floor would increase the Company’s annual interest expense by approximately The Company’s interest rate swaps are valued using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, forward rates, and credit ratings. Changes in the fair value of the interest rate swaps of As of June 30, 2015 and 2014, there is no balance currently outstanding under the Company's Revolver. Financial instruments measured at fair value on a recurring basis are summarized below (in millions): Level June 30, 2015 June 30, 2014 Liabilities Recorded at Fair Value in the Financial Statements: Interest rate swap Level 2 $ 4.1 $ 2.0 Prior to the deemed modification of the Company’s stock-based compensation arrangements (See Note 12 – Stock-based Compensation), |
Commitments and Contingencies82
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments And Contingencies | (10) COMMITMENTS AND CONTINGENCIES Purchase commitments At December 31, 2015 , the Company was contractually committed for $241.2 million of capital expenditures for construction materials and purchases of property and equipment. A majority of these purchase commitments are expected to be satisfied in the next twelve months. These purchase commitments are primarily success based; that is, the Company has executed customer contracts that support the future capital expenditures. Contingencies In the normal course of business, the Company is party to various outstanding legal proceedings, asserted and unasserted claims, and carrier disputes. In the opinion of management, the ultimate disposition of these matters, both asserted and unasserted, will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. | (14) COMMITMENTS AND CONTINGENCIES Capital Leases Future contractual payments under the terms of the Company’s capital lease obligations were as follows (in millions): Year Ended June 30, 2016 $ 6.4 2017 7.0 2018 5.6 2019 5.0 2020 3.8 Thereafter 17.3 Total minimum lease payments 45.1 Less amounts representing interest (12.4 ) Less current portion (4.4 ) Capital lease obligations, non-current $ 28.3 Operating Leases The Company leases office space, warehouse space, network assets, switching and transport sites, points of presence and equipment under non-cancelable operating leases. Lease expense was $125.3 million, $90.1 million, and $87.2 million for the years ended June 30, 2015, 2014 and 2013, respectively. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases. When the straight-line expense recorded exceeds the cash outflows during the respective period, the Company records a deferred lease obligation on the consolidated balance sheets and amortizes the deferred rent over the terms of the respective leases. Minimum contractual lease payments due under the Company’s long-term operating leases are as follows (in millions): Year Ended June 30, 2016 $ 119.3 2017 86.9 2018 75.4 2019 62.7 2020 48.9 Thereafter 280.7 $ 673.9 Lease Termination Costs In connection with integration activities associated with acquisitions completed during Fiscal 2012 and 2013, the Company completed an analysis of existing and acquired facilities leases and determined that certain facilities under lease would not be used by the Company in the future. During the fourth quarter of 2013, the Company recorded a charge for lease termination costs totaling $10.4 million related to exit activities initiated for unutilized space associated with leased office and technical facilities, which was partially offset by a benefit related to the release of associated rent escalation accrual in the amount of $0.2 million. The net $10.2 million charge has been included in operating costs and selling, general and administrative expenses for Fiscal 2013. As of June 30, 2015 and 2014, the remaining lease termination obligation associated with these facilities was $6.3 million and $8.1 million, respectively, which is recorded net of anticipated sublease income. The Company periodically re-evaluates its assumptions used to estimate this obligation and may record adjustments prospectively as facts or circumstances change related to the utilized space associated with leased facilities. Purchase Commitments At June 30, 2015, the Company was contractually committed for $226.4 million of capital expenditures for construction materials and purchases of property and equipment. A majority of these purchase commitments are expected to be satisfied in the next twelve months. These purchase commitments are primarily success based; that is, the Company has executed customer contracts that support the future capital expenditures. Outstanding Letters of Credit As of June 30, 2015, the Company had $9.2 million in outstanding letters of credit, which were primarily entered into in connection with various lease agreements. Contingencies In the normal course of business, the Company is party to various outstanding legal proceedings, asserted and unasserted claims, and carrier disputes. In the opinion of management, the ultimate disposition of these matters, both asserted and unasserted, will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. |
Related Party Transactions83
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | (11) RELATED PARTY TRANSACTIONS On June 13, 2014, the Company completed a spin-off of OVS to CII (see Note 7 – Equity ). CII holds approximately 4% of ZGH’s outstanding common stock at December 31, 2015. The Company continues to have ongoing contractual relationships with OVS, whereby the Company provides OVS and its subsidiaries with bandwidth capacity and OVS provides the Company and its subsidiaries with voice services. The contractual relationships are based on agreements that were entered into at estimated market rates. Subsequent to the spin-off date, transactions with OVS are included in the Company’s results of operations. The following table represents the revenue and expense transactions the Company recorded with OVS for the periods presented: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenues $ $ $ $ Operating costs $ $ $ $ As of December 31, 2015 and June 30, 2015 , the Company had outstanding balances of $0.5 million and $0.6 million, respectively, due from OVS. Dan Caruso, the Company’s Chief Executive Officer and Chairman of the Board, is a party to an aircraft charter (or membership) agreement through his affiliate, Bear Equity LLC, for business and personal travel. Under the terms of the charter agreement, all fees for the use of the aircraft are effectively variable in nature. For his business travel on behalf of the Company, Mr. Caruso is reimbursed for his use of the aircraft subject to quarterly and annual maximum reimbursement thresholds approved by the Company's Nominating and Governance Committee. During the three and six months ended December 31, 2015 the Company reimbursed Mr. Caruso $0.2 million and $0.3 million, respectively, and during the three and six months ended December 31, 2014 reimbursed $0.2 million and $0.6 million, respectively, for his business use of the aircraft. On June 28, 2012, Matt Erickson, the President and COO of Global Sales & Customer Success, purchased $0.6 million in aggregate principal amount of 2020 Unsecured Notes at the offering price for such notes. Mr. Erickson qualifies as an “accredited investor” (as defined in Rule 501 under the Securities Act), and this purchase was on terms available to other investors. On December 15, 2014, in connection with the Note Redemption, approximately $0.2 million of Mr. Erickson’s notes were redeemed, and as of December 31, 2015, the principal amount of 2020 Unsecured Notes held by Mr. Erickson was $0.4 million. | (15) RELATED-PARTY TRANSACTIONS The Company has ongoing contractual relationships with Onvoy, LLC and its subsidiaries (“OVS”). OVS is wholly owned by CII and provides voice and managed services. The Company provides OVS and its subsidiaries with bandwidth capacity, and OVS provides the Company and its subsidiaries with voice services. The contractual relationships are based on agreements that were entered into at estimated market rates. The following table represents the revenue and expense transactions the Company recorded with OVS (in millions): Year Ended June 30, 2015 2014 2013 Revenues $ 6.9 $ 7.0 6.6 Operating costs $ 1.0 $ 1.6 1.5 As of June 30, 2015 and June 30, 2014, the Company had a balance due from OVS in the amount of $0.6 million and $0.1 million, respectively. As of June 30, 2015, the Company had a balance due to ZGH of $1.3 million related to certain expenses of the Company that were paid by ZGH. As discussed in Note 11 – Equity Dan Caruso, the Company’s Chief Executive Officer and Chairman of the Board is a party to an aircraft charter (or membership) agreement through his affiliate, Bear Equity LLC, for business and personal travel. Under the terms of the charter agreement, all fees for the use of the aircraft are effectively variable in nature. For his business travel on behalf of the Company, Mr. Caruso is reimbursed for his use of the aircraft subject to quarterly and annual maximum reimbursement thresholds approved by the Company's Nominating and Governance Committee. During the years ended June 30, 2015 and 2014, respectively, the Company reimbursed Mr. Caruso $0.7 million and $0.1 million for his business use of the aircraft. On June 28, 2012, Matt Erickson, the President of Zayo Physical Infrastructure, purchased $0.6 million in aggregate principal amount of the Company’s 10.125% 2020 Unsecured Notes at the offering price for such notes. Mr. Erickson qualifies as an “accredited investor” (as defined in Rule 501 under the Securities Act), and this purchase was on terms available to other investors. On December 15, 2015, approximately $0.2 million of Mr. Erickson’s notes were redeemed as part of the pro rata redemption of the 2020 Unsecured Notes following the ZGH initial public offering, and as of June 30, 2015, the principal amount of notes held by Mr. Erickson was $0.4 million. |
Segment Reporting84
Segment Reporting | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||
Segment Reporting | (12) SEGMENT REPORTING The Company uses the management approach to determine the segment financial information that should be disaggregated and presented separately in the Company's notes to its financial statements. The management approach is based on the manner by which management has organized the segments within the Company for making operating decisions, allocating resources, and assessing performance. As the Company has increased in scope and scale, it has developed its management and reporting structure to support this growth. The Company’s dark fiber solutions, network connectivity, colocation and cloud infrastructure and other services are comprised of various related product groups generally defined around the type of service the customer is buying, referred to as Strategic Product Groups ("SPG" or "SPGs"). Each SPG is responsible for the revenue, costs and associated capital expenditures of their respective services. The SPGs enable sales, make pricing and product decisions, engineer networks and deliver services to customers, and support customers for their specific telecom and Internet infrastructure services. With the continued increase in the Company’s scope and scale, effective October 1, 2015, the Company's chief operating decision maker ("CODM"), the Company's Chief Executive Officer, implemented certain organizational changes to the management and operation of the business that directly impacts how the CODM makes resource allocation decisions and manages the Company. The change in structure had the impact of establishing a new reportable segment and re-aligning the Company’s existing SPGs to the revised reportable segments. Prior to this change, the operating segments were reported as Physical Infrastructure, which included the Company’s Dark Fiber, MIG and zColo SPGs, Cloud and Connectivity, which included the Company’s Waves, SONET, Ethernet, IP and Cloud SPGs, and Other, which primarily included ZPS. The new structure has removed the zColo and Cloud SPGs out of the Physical Infrastructure and Cloud and Connectivity reporting segments, respectively, creating a new reportable segment named Zayo Colocation and Cloud Infrastructure. The Dark Fiber and MIG SPGs are now reported as Dark Fiber Solutions operating segment, and Ethernet, IP, Waves, and SONET, are now reported in the Network Connectivity operating segment. SPGs report directly to the reportable segment managers who are responsible for the operations and financial results for the Dark Fiber Solutions, Network Connectivity, Colocation and Cloud Infrastructure, and Other reportable segments (collectively, the “Revised Segments”). The Revised Segment managers report directly to the CODM, and it is the financial results of those segments that are evaluated and drive the resource allocation decisions. The Company’s Revised Segments are further described below: Dark Fiber Solutions . Through the Dark Fiber Solutions segment, the Company provides raw bandwidth infrastructure to customers that require more control of their internal networks. These services include dark fiber and mobile infrastructure (fiber-to-the-tower and small cell). Dark fiber is a physically separate and secure, private platform for dedicated bandwidth. The Company leases dark fiber pairs (usually 2 to 12 total fibers) to its customers, who “light” the fiber using their own optronics. The Company’s mobile infrastructure services provide direct fiber connections to cell towers, small cells, hub sites, and mobile switching centers. Dark Fiber Solutions customers include carriers and other communication service providers, Internet service providers, wireless service providers, major media and content companies, large enterprises, and other companies that have the expertise to run their own fiber optic networks or require interconnected technical space. The contract terms in the Dark Fiber Solutions segment tend to range from three to twenty years. Network Connectivity . The Network Connectivity segment provides bandwidth infrastructure solutions over the Company’s metro, regional, and long-haul fiber networks where it uses optronics to light the fiber and the Company’s customers pay for access based on the amount and type of bandwidth they purchase. The Company’s services within this segment include wavelength, Ethernet, IP and SONET. The Company targets customers who require a minimum of 10G of bandwidth across their networks. Network Connectivity customers include carriers, financial services companies, healthcare, government institutions, education institutions and other enterprises. The contract terms in this segment tend to range from two to five years. Colocation and Cloud Infrastructure . The Colocation and Cloud Infrastructure segment provides data center infrastructure solutions to a broad range of enterprise, carrier, content and cloud customers. The Company’s services within this segment include colocation, interconnection, cloud, hosting and managed services, such as security and remote hands offerings. Solutions range in size from single cabinet and server support to comprehensive international outsourced IT infrastructure environments. The Company’s datacenters also support a large component of the Company’s networking equipment for the purpose of aggregating and distributing data, voice, Internet, and video traffic. The contract terms in this segment tend to range from two to five years Other . The Other segment is primarily comprised of ZPS. ZPS provides network and technical resources to customers in designing, acquiring and maintaining their networks. Services are typically provided for a term of one year for a fixed recurring monthly fee in the case of network and on an hourly basis for technical resources (usage revenue). Effective October 1, 2015 revenues for all of the Company’s products are included in one of the Company’s segments. This segment presentation has been recast for all prior periods presented for comparability. The results of operations for each segment include an allocation of certain indirect costs and corporate related costs, including overhead and third party-financed debt. The allocation is based on a percentage that represents management’s estimate of the relative burden each segment bears of indirect and corporate costs. Management has evaluated the allocation methods utilized to allocate these costs and determined they are systematic and rational. Identifiable assets for each reportable segment are reconciled to total consolidated assets including unallocated corporate assets and intersegment eliminations. Unallocated corporate assets consist primarily of cash and deferred taxes. Segment Adjusted EBITDA Segment Adjusted EBITDA is the primary measure used by the Company’s CODM to evaluate segment operating performance. The Company defines Segment Adjusted EBITDA as earnings from operations before interest, income taxes, depreciation and amortization (“EBITDA”) adjusted to exclude acquisition or disposal-related transaction costs, losses on extinguishment of debt, stock-based compensation, unrealized foreign currency gains (losses) on intercompany loans, and non-cash income (loss) on equity and cost method investments. The Company uses Segment Adjusted EBITDA to evaluate operating performance, and this financial measure is among the primary measures used by management for planning and forecasting of future periods. The Company believes that the presentation of Segment Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management and facilitates comparison of the Company’s results with the results of other companies that have different financing and capital structures. Segment Adjusted EBITDA results, along with other quantitative and qualitative information, are also utilized by the Company and its Compensation Committee for purposes of determining bonus payouts to employees. Segment Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results from operations and operating cash flows as reported under GAAP. For example, Segment Adjusted EBITDA: · does not reflect capital expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments; · does not reflect changes in, or cash requirements for, working capital needs; · does not reflect the significant interest expense, or the cash requirements necessary to service the interest payments, on the Company’s debt; and · does not reflect cash required to pay income taxes. The Company’s computation of Segment Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate segment Adjusted EBITDA in the same fashion . As of and for the Three months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of and for the Three months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of June 30, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Total assets $ $ $ $ $ $ Reconciliation from Total Segment Adjusted EBITDA to net loss from operations: Three months ended December 31, 2015 2014 (in millions) Total Segment Adjusted EBITDA $ $ Interest expense Depreciation and amortization expense Transaction costs Stock-based compensation Loss on extinguishment of debt — Unrealized foreign currency loss on intercompany loans Non-cash loss on investments Income/(loss) from operations before income taxes $ $ Six months ended December 31, 2015 2014 (in millions) Total Segment Adjusted EBITDA $ $ Interest expense Depreciation and amortization expense Transaction costs Stock-based compensation Loss on extinguishment of debt — Unrealized foreign currency loss on intercompany loans Non-cash loss on investments Income/(loss) from operations before income taxes $ $ | (16) SEGMENT REPORTING The Company uses the management approach to determine the segment financial information that should be disaggregated and presented separately in the Company's notes to its financial statements. The management approach is based on the manner by which management has organized the segments within the Company for making operating decisions, allocating resources, and assessing performance. As the Company has increased in scope and scale, it has developed its management and reporting structure to support this growth. The Company's dark fiber solutions, network connectivity, colocation and cloud infrastructure and other services are comprised of various related product groups generally defined around the type of service the customer is buying, referred to as Strategic Product Groups ("SPG" or "SPGs"). Each SPG is responsible for the revenue, costs and associated capital expenditures of their respective services. The SPGs enable sales, make pricing and product decisions, engineer networks and deliver services to customers, and support customers for their specific telecom and Internet infrastructure services. With the continued increase in the Company's scope and scale, effective October 1, 2015, the Company's chief operating decision maker ("CODM"), the Company's Chief Executive Officer, implemented certain organizational changes to the management and operation of the business that directly impacts how the CODM makes resource allocation decisions and manages the Company. The change in structure had the impact of establishing a new reportable segment and re-aligning the Company's existing SPGs to the revised reportable segments. Prior to this change, the operating segments were reported as Physical Infrastructure, which included the Company's Dark Fiber, MIG and zColo SPGs, Cloud and Connectivity, which included the Company's Waves, SONET, Ethernet, IP and Cloud SPGs, and Other, which primarily included ZPS. The new structure has removed the zColo and Cloud SPGs out of the Physical Infrastructure and Cloud and Connectivity reporting segments, respectively, creating a new reportable segment named Zayo Colocation and Cloud Infrastructure. The Dark Fiber and MIG SPGs are now reported as Dark Fiber Solutions operating segment, and Ethernet, IP, Waves, and SONET, are now reported in the Network Connectivity operating segment. SPGs report directly to the reportable segment managers who are responsible for the operations and financial results for the Dark Fiber Solutions, Network Connectivity, Colocation and Cloud Infrastructure, and Other reportable segments (collectively, the "Revised Segments"). The Revised Segment managers report directly to the CODM, and it is the financial results of those segments that are evaluated and drive the resource allocation decisions. The Company's Revised Segments are further described below: Dark Fiber Solutions. Through the Dark Fiber Solutions segment, the Company provides raw bandwidth infrastructure to customers that require more control of their internal networks. These services include dark fiber and mobile infrastructure (fiber-to-the-tower and small cell). Dark fiber is a physically separate and secure, private platform for dedicated bandwidth. The Company leases dark fiber pairs (usually 2 to 12 total fibers) to its customers, who "light" the fiber using their own optronics. The Company's mobile infrastructure services provide direct fiber connections to cell towers, small cells, hub sites, and mobile switching centers. Dark Fiber Solutions customers include carriers and other communication service providers, Internet service providers, wireless service providers, major media and content companies, large enterprises, and other companies that have the expertise to run their own fiber optic networks or require interconnected technical space. The contract terms in the Dark Fiber Solutions segment tend to range from three to twenty years. Network Connectivity. The Network Connectivity segment provides bandwidth infrastructure solutions over the Company's metro, regional, and long-haul fiber networks where it uses optronics to light the fiber and the Company's customers pay for access based on the amount and type of bandwidth they purchase. The Company's services within this segment include wavelength, Ethernet, IP and SONET. The Company targets customers who require a minimum of 10G of bandwidth across their networks. Network Connectivity customers include carriers, financial services companies, healthcare, government institutions, education institutions and other enterprises. The contract terms in this segment tend to range from two to five years. Colocation and Cloud Infrastructure. The Colocation and Cloud Infrastructure segment provides data center infrastructure solutions to a broad range of enterprise, carrier, content and cloud customers. The Company's services within this segment include colocation, interconnection, cloud, hosting and managed services, such as security and remote hands offerings. Solutions range in size from single cabinet and server support to comprehensive international outsourced IT infrastructure environments. The Company's datacenters also support a large component of the Company's networking equipment for the purpose of aggregating and distributing data, voice, Internet, and video traffic. The contract terms in this segment tend to range from two to five years. Other. The Other segment is primarily comprised of ZPS. ZPS provides network and technical resources to customers in designing, acquiring and maintaining their networks. Services are typically provided for a term of one year for a fixed recurring monthly fee in the case of network and on an hourly basis for technical resources (usage revenue). Effective October 1, 2015 revenues for all of the Company's products are included in one of the Company's segments. This segment presentation has been recast for all prior periods presented for comparability. The results of operations for each segment include an allocation of certain indirect costs and corporate related costs, including overhead and third party-financed debt. The allocation is based on a percentage that represents management's estimate of the relative burden each segment bears of indirect and corporate costs. Management has evaluated the allocation methods utilized to allocate these costs and determined they are systematic and rational. Identifiable assets for each reportable segment are reconciled to total consolidated assets including unallocated corporate assets and intersegment eliminations. Unallocated corporate assets consist primarily of cash and deferred taxes. Segment Adjusted EBITDA is the primary measure used by the Company's CODM to evaluate segment operating performance. The Company defines Segment Adjusted EBITDA as earnings from operations before interest, income taxes, depreciation and amortization ("EBITDA") adjusted to exclude acquisition or disposal-related transaction costs, losses on extinguishment of debt, stock-based compensation, unrealized foreign currency gains (losses) on intercompany loans, and non-cash income (loss) on equity and cost method investments. The Company uses Segment Adjusted EBITDA to evaluate operating performance, and this financial measure is among the primary measures used by management for planning and forecasting of future periods. The Company believes that the presentation of Segment Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management and facilitates comparison of the Company's results with the results of other companies that have different financing and capital structures. Segment Adjusted EBITDA results, along with other quantitative and qualitative information, are also utilized by the Company and its Compensation Committee for purposes of determining bonus payouts to employees. Segment Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of the Company's results from operations and operating cash flows as reported under GAAP. For example, Segment Adjusted EBITDA: • does not reflect capital expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments; • does not reflect changes in, or cash requirements for, working capital needs; • does not reflect the significant interest expense, or the cash requirements necessary to service the interest payments, on the Company's debt; and • does not reflect cash required to pay income taxes. The Company's computation of Segment Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate segment Adjusted EBITDA in the same fashion. For the year ended June 30, 2015 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 531.3 648.0 144.6 23.2 — 1,347.1 Segment Adjusted EBITDA 364.3 339.2 73.8 5.3 — 782.6 Total assets 2,848.9 1,807.7 1,013.7 35.0 388.7 6,094.0 Capital expenditures, net of stimulus grant reimbursements 279.7 195.1 55.4 0.2 — 530.4 For the year ended June 30, 2014 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 419.8 606.2 75.6 28.1 — 1,129.7 Segment Adjusted EBITDA 288.2 326.7 37.4 8.0 — 660.3 Total assets 2,714.6 1,739.1 157.9 43.1 326.2 4,980.9 Capital expenditures, net of stimulus grant reimbursements 181.0 151.6 28.2 — — 360.8 For the year ended June 30, 2013 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 358.8 570.5 54.2 27.8 (0.3 ) 1,011.0 Segment Adjusted EBITDA 250.7 278.3 25.4 6.2 (0.1 ) 560.5 Total assets 2,213.2 1,685.5 98.3 32.4 122.7 4,152.1 Capital expenditures, net of stimulus grant reimbursements 165.8 143.0 14.5 — — 323.3 For the year ended June 30, 2015 2014 2013 (in millions) Total Segment Adjusted EBITDA 782.6 660.3 560.5 Interest expense (214.0 ) (203.5 ) (202.5 ) Depreciation and amortization expense (406.2 ) (338.2 ) (324.5 ) Transaction costs (5.9 ) (4.5 ) (14.2 ) Stock-based compensation (200.7 ) (253.7 ) (105.8 ) Loss on extinguishment of debt (94.3 ) (1.9 ) (77.3 ) Unrealized foreign currency gain/(loss) (24.4 ) 4.7 0.1 Non-cash loss on investments (0.9 ) — — Net loss from continuing operations before provision for income taxes (163.8 ) (136.8 ) (163.7 ) The following is a summary of geographical information (in millions): For the year ended June 30, 2015 2014 2013 Revenue from external customers: United States 1,193.5 1,059.3 953.1 United Kingdom 119.0 70.3 57.5 Japan — 0.1 0.4 France 34.6 — — Total Revenue 1,347.1 1,129.7 1,011.0 Long-lived assets: United States 3,848.0 3,140.2 2,995.3 United Kingdom 405.3 429.9 120.2 Japan 0.3 0.3 — France 48.7 — — Total Long-lived assets 4,302.3 3,570.4 3,115.5 The Company includes all non-current assets, except for goodwill in its long-lived assets. |
Condensed Consolidating Finan85
Condensed Consolidating Financial Information | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Condensed Consolidating Financial Information [Abstract] | ||
Condensed Consolidating Financial Information | (13) CONDENSED CONSOLIDATING FINANCIAL INFORMATION As discussed Note 5 – Long-Term Debt , as of December 31, 2015, the Company has outstanding $325.6 million 2020 Unsecured Notes, $1,430.0 million 2023 Unsecured Notes and $350.0 million 2025 Senior Unsecured Notes. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future domestic restricted subsidiaries. Zayo Capital does not have independent assets or operations. The non-guarantor subsidiaries consist of the foreign subsidiaries that were acquired in conjunction with the Company's acquisitions. The accompanying condensed consolidating financial information has been prepared and is presented to display the components of the Company’s balance sheets, statements of operations and statements of cash flows in a manner that allows an existing or future holder of the Company’s Notes to review and analyze the current financial position and recent operating results of the legal subsidiaries that guarantee the Company’s debt obligations. The operating activities of the separate legal entities included in the Company’s consolidated financial statements are interdependent. The accompanying condensed consolidating financial information presents the results of operations, financial position and cash flows of each legal entity. Zayo Group and its guarantors provide services to each other during the normal course of business. These transactions are eliminated in the consolidated results of operations of the Company. Activity related to income taxes is included at the issuer, or Zayo Group level, and the Company's non-guarantor subsidiaries and is not allocated to the Company's guarantor subsidiaries in the condensed consolidated financial information presented below. Condensed Consolidating Balance Sheets (Unaudited) December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties — — Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets — Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — $ Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — — Deferred revenue, current — Total current liabilities — Long-term debt, non-current — Capital lease obligation, non-current — — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ Condensed Consolidating Balance Sheets (Unaudited) June 30, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — Deferred revenue, current — Total current liabilities Long-term debt, non-current — — — Related party debt, long-term — — — Capital lease obligation, non-current — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities — Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ Condensed Consolidating Statements of Operations For the three months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations For the six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the three months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired — Other Net cash used in investing activities Cash flows from financing activities: Distributions to parent Loan from Parent — — Principal payments on long-term debt — Principal repayments on capital lease obligations Excess tax benefit from stock-based compensation — — Other — — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash — — Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired Net cash used in investing activities Cash flows from financing activities: Proceeds from equity offerings and contributions Principal payments on long-term debt — Payment of early redemption fees on debt extinguished — — Payment of)/receipt from intercompany loans — — Principal repayments on capital lease obligations — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ | (17) Condensed Consolidating Financial Information As discussed Note 8 – Long-Term Debt The accompanying condensed consolidating financial information has been prepared and is presented to display the components of the Company’s balance sheets, statements of operations and statements of cash flows in a manner that allows an existing or future holder of the Company’s Notes to review and analyze the current financial position and recent operating results of the legal subsidiaries that guarantee the Company’s debt obligations. The operating activities of the separate legal entities included in the Company’s consolidated financial statements are interdependent. The accompanying condensed consolidating financial information presents the results of operations, financial position and cash flows of each legal entity. Zayo Group and its guarantors provide services to each other during the normal course of business. These transactions are eliminated in the consolidated results of operations of the Company. Activity related to income taxes is included at the issuer, or Zayo Group level, and the Company's non-guarantor subsidiaries and is not allocated to the Company's guarantor subsidiaries in the condensed consolidated financial information presented below. Condensed Consolidating Balance Sheets Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 274.3 $ 4.7 $ 29.0 $ — 308.0 Trade receivables, net of allowance 54.7 4.6 28.7 — 88.0 Due from related parties (1.3 ) 0.4 2.9 (1.4 ) 0.6 Prepaid expenses 25.8 4.4 7.1 — 37.3 Deferred income taxes, net 128.5 — 1.0 — 129.5 Other assets 3.6 — 0.3 — 3.9 Total current assets 485.6 14.1 69.0 (1.4 ) 567.3 Property and equipment, net 2,622.9 335.5 340.8 — 3,299.2 Intangible assets, net 605.8 239.5 103.0 — 948.3 Goodwill 762.2 281.0 181.2 — 1,224.4 Other assets 36.2 8.3 10.3 — 54.8 Related party receivable 304.8 — — (304.8 ) — Investment in subsidiary 1,050.8 — — (1,050.8 ) — Total assets $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 16.5 $ — $ — $ — 16.5 Accounts payable 26.6 4.0 9.4 — 40.0 Accrued liabilities 125.6 20.6 36.2 — 182.4 Accrued interest 57.2 — — — 57.2 Capital lease obligations, current 2.0 1.6 0.8 — 4.4 Due to related parties 1.7 — — (1.4 ) 1.3 Deferred revenue, current 73.2 2.8 10.6 — 86.6 Total current liabilities 302.8 29.0 58.0 (1.4 ) 388.4 Long-term debt, non-current 3,652.2 — — — 3,652.2 Related party debt, long-term — — 304.8 (304.8 ) — Capital lease obligation, non-current 5.6 18.6 4.1 — 28.3 Deferred revenue, non-current 559.4 4.6 48.7 — 612.7 Stock-based compensation liability 1.5 0.1 0.3 — 1.9 Deferred income taxes, net 139.2 — 50.5 — 189.7 Other long-term liabilities 13.5 10.5 2.7 — 26.7 Total liabilities 4,674.2 62.8 469.1 (306.2 ) 4,899.9 Member's equity Member's interest 1,730.1 778.1 251.2 (1,060.3 ) 1,699.1 Accumulated other comprehensive (loss)/income — — (7.9 ) — (7.9 ) Accumulated deficit (536.0 ) 37.5 (8.1 ) — (497.1 ) Total member's equity 1,194.1 815.6 235.2 (1,050.8 ) 1,194.1 Total liabilities and member's equity $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Condensed Consolidating Balance Sheets Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 256.0 $ 5.8 $ 35.6 $ — 297.4 Trade receivables, net of allowance 33.6 8.2 15.4 — 57.2 Due from related parties 0.3 — 0.6 — 0.9 Prepaid expenses 18.7 0.9 5.3 — 24.9 Deferred income taxes, net 156.0 3.5 1.5 — 161.0 Other assets 1.9 — 0.5 — 2.4 Total current assets 466.5 18.4 58.9 — 543.8 Property and equipment, net 2,389.3 109.3 323.8 — 2,822.4 Intangible assets, net 563.7 51.1 95.5 — 710.3 Goodwill 683.5 38.0 145.2 — 866.7 Other assets 23.4 3.5 10.8 — 37.7 Related party receivable 267.8 — — (267.8 ) — Investment in subsidiary 332.1 — — (332.1 ) — Total assets $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 20.5 $ — $ — $ — 20.5 Accounts payable 20.4 4.3 2.0 — 26.7 Accrued liabilities 125.0 21.0 26.3 — 172.3 Accrued interest 57.1 — — — 57.1 Capital lease obligations, current 1.5 0.9 — — 2.4 Due to related parties (0.7 ) — 0.7 — — Deferred revenue, current 56.7 1.6 17.1 — 75.4 Total current liabilities 280.5 27.8 46.1 — 354.4 Long-term debt, non-current 3,130.3 — — — 3,130.3 Related party debt, long-term — — 267.8 (267.8 ) — Capital lease obligation, non-current 5.6 18.4 1.7 — 25.7 Deferred revenue, non-current 459.5 8.6 33.4 — 501.5 Stock-based compensation liability 343.8 23.3 25.3 — 392.4 Deferred income taxes, net 93.0 — 45.3 — 153.0 Other long-term liabilities 12.3 9.8 0.2 — 22.3 Total liabilities 4,325.0 102.6 419.8 (267.8 ) 4,579.6 Member's equity Member's interest 782.2 73.8 205.0 (332.1 ) 728.9 Accumulated other comprehensive (loss)/income — — 14.4 — 14.4 Accumulated deficit (380.9 ) 43.9 (5.0 ) — (342.0 ) Total member's equity 401.3 117.7 214.4 (332.1 ) 401.3 Total liabilities and member's equity $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 Condensed Consolidating Statements of Operations Year Ended June 30, 2015 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 1,040.1 $ 151.6 $ 155.4 $ — $ 1,347.1 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 313.8 54.4 45.3 — 413.5 Selling, general and administrative expenses (including stock-based compensation) 266.4 38.9 52.8 — 358.1 Depreciation and amortization 321.7 42.7 41.8 — 406.2 Total operating costs and expenses 901.9 136.0 139.9 — 1,177.8 Operating income 138.2 15.6 15.5 — 169.3 Other expenses Interest expense (177.0 ) (20.3 ) (16.7 ) — (214.0 ) Loss on extinguishment of debt (91.8 ) (1.7 ) (0.8 ) — (94.3 ) Foreign currency (loss)/gain on intercompany loans (23.2 ) — (1.2 ) — (24.4 ) Other income, net (0.4 ) — — — (0.4 ) Equity in net earnings of subsidiaries (9.5 ) — — 9.5 — Total other expense, net (301.9 ) (22.0 ) (18.7 ) 9.5 (333.1 ) (Loss)/earnings before provision for income taxes (163.7 ) (6.4 ) (3.2 ) 9.5 (163.8 ) (Benefit)/provision for income taxes (8.6 ) — (0.1 ) — (8.7 ) Net (loss)/earnings $ (155.1 ) $ (6.4 ) $ (3.1 ) $ 9.5 $ (155.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2014 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 956.5 $ 102.8 $ 70.4 $ — $ 1,129.7 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 290.1 45.5 7.7 — 343.3 Selling, general and administrative expenses (including stock-based compensation) 327.3 28.3 29.0 — 384.6 Depreciation and amortization 307.6 13.8 16.8 — 338.2 Total operating costs and expenses 925.0 87.6 53.5 — 1,066.1 Operating income 31.5 15.2 16.9 — 63.6 Other expenses Interest expense (201.1 ) — (2.4 ) — (203.5 ) Loss on extinguishment of debt (1.9 ) — — — (1.9 ) Foreign currency (loss)/gain on intercompany loans 3.5 — 1.2 — 4.7 Other income, net 0.3 — — — 0.3 Equity in net earnings of subsidiaries 28.2 — — (28.2 ) — Total other expense, net (171.0 ) — (1.2 ) (28.2 ) (200.4 ) (Loss)/earnings before provision for income taxes (139.5 ) 15.2 15.7 (28.2 ) (136.8 ) (Benefit)/provision for income taxes 37.6 - 2.7 — 40.3 Net (loss)/earnings $ (177.1 ) $ 15.2 $ 13.0 $ (28.2 ) $ (177.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2013 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 876.4 $ 85.4 $ 57.9 $ (8.7 ) $ 1,011.0 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 255.5 50.4 16.9 (8.7 ) 314.1 Selling, general and administrative expenses (including stock-based compensation) 229.5 9.4 17.8 — 256.7 Depreciation and amortization 301.4 9.8 13.3 — 324.5 Total operating costs and expenses 786.4 69.6 48.0 (8.7 ) 895.3 Operating income 90.0 15.8 9.9 — 115.7 Other expenses Interest expense (202.1 ) — (0.4 ) — (202.5 ) Loss on extinguishment of debt (77.3 ) — — — (77.3 ) Foreign currency (loss)/gain on intercompany loans 0.1 — — — 0.1 Other income, net 0.2 — 0.1 — 0.3 Equity in net earnings of subsidiaries 20.7 — — (20.7 ) — Total other expense, net (258.4 ) — (0.3 ) (20.7 ) (279.4 ) (Loss)/earnings before provision for income taxes (168.4 ) 15.8 9.6 (20.7 ) (163.7 ) (Benefit)/provision for income taxes (26.5 ) — 4.7 — (21.8 ) Net (loss)/earnings $ (141.9 ) $ 15.8 $ 4.9 $ (20.7 ) $ (141.9 ) Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 489.3 $ 55.7 62.0 $ 607.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (436.8 ) (47.8 ) (45.8 ) (530.4 ) Acquisitions, net of cash acquired (113.5 ) (668.3 ) (73.9 ) (855.7 ) Net cash used in investing activities (550.3 ) (716.1 ) (119.7 ) (1,386.1 ) Cash flows from financing activities: Proceeds from debt 1,747.2 — 40.1 1,787.3 Proceeds from equity offerings and contributions (290.9 ) 660.7 15.2 385.0 Direct costs associated with equity offerings - — — - Principal payments on long-term debt (1,288.5 ) — — (1,288.5 ) Payment of early redemption fees on debt extinguished (62.6 ) — — (62.6 ) Principal repayments on capital lease obligations (1.7 ) (1.4 ) (0.4 ) (3.5 ) Payment of debt issuance costs (24.2 ) — — (24.2 ) Net cash provided by financing activities 79.3 659.3 54.9 793.5 Effect of changes in foreign exchange rates on cash — — (3.8 ) (3.8 ) Net (decrease)/increase in cash and cash equivalents 18.3 (1.1 ) (2.8 ) 14.4 Cash and cash equivalents, beginning of period 256.0 5.8 35.6 297.4 Cash and cash equivalents, end of period $ 274.3 $ 4.7 $ 29.0 $ 308.0 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 485.5 43.2 33.3 $ 562.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (316.6 ) (28.2 ) (16.0 ) (360.8 ) Acquisitions, net of cash acquired (83.2 ) (17.8 ) (292.3 ) (393.3 ) Net cash used in investing activities (399.8 ) (46.0 ) (308.3 ) (754.1 ) Cash flows from financing activities: Proceeds from debt 423.6 — — 423.6 Proceeds from revolving credit facility 195.0 — — 195.0 Proceeds from equity offerings and contributions 11.2 (5.6 ) — 5.6 Distribution to parent (1.2 ) — — (1.2 ) Dividends received/(paid) (70.8 ) 15.8 55.0 — Principal payments on long-term debt (18.0 ) — — (18.0 ) Principal repayments on capital lease obligations (2.1 ) (5.8 ) — (7.9 ) Payment of)/receipt from intercompany loans (251.1 ) — 251.1 — Payments on revolving credit facility (195.0 ) — — (195.0 ) Payment of debt issuance costs (4.9 ) — — (4.9 ) Net cash provided by financing activities 86.7 4.4 306.1 397.2 Effect of changes in foreign exchange rates on cash — — 1.0 1.0 Net (decrease)/increase in cash and cash equivalents 172.4 1.6 31.1 205.1 Cash and cash equivalents, beginning of period 83.6 4.2 3.5 91.3 Cash and cash equivalents, end of period $ 256.0 $ 5.8 $ 35.6 $ 297.4 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2013 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 359.3 $ 31.8 $ 13.6 $ 404.7 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (299.8 ) (14.1 ) (9.4 ) (323.3 ) Acquisitions, net of cash acquired (2,489.0 ) 0.4 7.9 (2,480.7 ) Net cash used in investing activities (2,788.8 ) (13.7 ) (1.5 ) (2,804.0 ) Cash flows from financing activities: Proceeds from debt 3,184.4 4.9 — 3,189.3 Proceeds from equity offerings and contributions 344.0 — — 344.0 Dividends received/(paid) 18.6 (18.6 ) — — Principal payments on long-term debt (1,058.6 ) — — (1,058.6 ) Payment of early redemption fees on debt extinguished (72.1 ) — — (72.1 ) Principal repayments on capital lease obligations (1.8 ) (0.1 ) — (1.9 ) Payment of)/receipt from intercompany loans 8.3 — (8.3 ) — Payment of debt issuance costs (83.1 ) — — (83.1 ) Changes in restricted cash, net 22.6 — — 22.6 Net cash provided by financing activities 2,362.3 (13.8 ) (8.3 ) 2,340.2 Effect of changes in foreign exchange rates on cash 0.1 (0.1 ) (0.3 ) (0.3 ) Net (decrease)/increase in cash and cash equivalents (67.2 ) 4.3 3.8 (59.1 ) Cash and cash equivalents, beginning of period 150.7 — — 150.7 Cash and cash equivalents, end of period $ 83.6 $ 4.2 $ 3.5 $ 91.3 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | (14) SUBSEQUENT EVENTS Allstream Acquisition On January 15, 2016, the Company acquired 100% of the equity interest in Allstream, Inc. and Allstream Fiber U.S. Inc. ( together “Allstream”) for cash consideration of CAD $427.0 million (or $298.0 million), subject to certain post-closing adjustments. The consideration paid is net of CAD $38.0 million (or $26.0 million) of working capital and other liabilities assumed by the Company in the acquisition. The acquisition was funded with Term Loan Proceeds (as defined below). The acquisition adds more than 18,000 route miles to the Company’s fiber network, including 12,500 miles of long-haul fiber connecting all major Canadian markets and 5,500 route miles of metro fiber network connecting approximately 3,300 on-net buildings concentrated in Canada’s top five metropolitan markets. Term Loan Borrowings On January 15, 2016, the Company entered into an Incremental Amendment (the “Amendment”) to its Credit Agreement. Under the terms of the Amendment, the Company’s term loan facility was increased by $400 million. The additional amounts borrowed bear interest at LIBOR plus 3.5 percent with a minimum LIBOR rate of 1.0 percent. The $400 million add-on was priced at 99.0 percent. No other terms of the Credit Agreement were amended. |
Business and Basis of Present87
Business and Basis of Presentation (Policies) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Business | Business Zayo Group , LLC, a Delaware limited liability company, was formed on May 4, 2007, and is the operating parent company of a number of subsidiaries engaged in bandwidth infrastructure services. Zayo Group LLC and its subsidiaries are collectively referred to as “Zayo Group” or the “Company.” Headquartered in Boulder, Colorado, the Company operates bandwidth infrastructure assets, including fiber networks and datacenters, in the United States and Europe to offer: · Dark Fiber Solutions, including dark fiber and mobile infrastructure services. · Colocation and Cloud Infrastructure, including Cloud and Colocation services. · Network Connectivity, wavelengths, Ethernet, IP and SONET services. · Other services, including Zayo Professional Services (“ZPS”). Zayo Group is wholly owned by Zayo Group Holdings, Inc. (“Holdings” or “ZGH”). | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements and related notes are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q, and do not include all of the note disclosures required by GAAP for complete financial statements. These condensed consolidated financial statements should, therefore, be read in conjunction with the consolidated financial statements and notes thereto for the year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015 . In the opinion of management, all adjustments considered necessary for fair presentation of financial position, results of operations and cash flows of the Company have been included herein. The results of operations for the three and six months periods ended December 31, 2015 are not necessarily indicative of the operating results for any future interim period or the full year. The Company’s fiscal year ends June 30 each year, and we refer to the fiscal year ended June 30, 2015 as “Fiscal 2015 ” and the fiscal year ending June 30, 2016 as “Fiscal 2016 .” | a. Basis of Presentation The accompanying consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) Our fiscal year ends June 30 each year, and we refer to the fiscal year ended June 30, 2015 as “Fiscal 2015,” June 30, 2014 as “Fiscal 2014,” and the fiscal year ended June 30, 2013 as “Fiscal 2013.” |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates are used when establishing allowances for doubtful accounts and accruals for billing disputes, determining useful lives for depreciation and amortization and accruals for exit activities associated with real estate leases, assessing the need for impairment charges (including those related to intangible assets and goodwill), determining the fair values of assets acquired and liabilities assumed in business combinations, accounting for income taxes and related valuation allowances against deferred tax assets and estimating the restricted stock unit grant fair values used to compute the stock-based compensation liability and expense. Management evaluates these estimates and judgments on an ongoing basis and makes estimates based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from these estimates under different assumptions or conditions. | c. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates are used when establishing allowances for doubtful accounts and accruals for billing disputes, determining useful lives for depreciation and amortization and accruals for exit activities associated with real estate leases, assessing the need for impairment charges (including those related to intangible assets and goodwill), determining the fair values of assets acquired and liabilities assumed in business combinations, accounting for income taxes and related valuation allowances against deferred tax assets and estimating the common unit and restricted stock unit grant fair values used to compute the stock-based compensation liability and expense. Management evaluates these estimates and judgments on an ongoing basis and makes estimates based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from these estimates under different assumptions or conditions |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes , which requires an entity to present deferred tax liabilities and assets as noncurrent. The ASU will replace the current classification and presentation requirements for deferred tax assets and liabilities. Early adoption is permitted as of the original effective date or annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2016. The Company has not yet adopted ASU 2015-17 and it is not expected to have a material effect on the Company’s financial statements. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires acquirers who have reported provisional amounts for items in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period, in the reporting period in which the adjustments are determined. The ASU also requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Prior to the issuance of ASU 2015-16, adjustments to provisional amounts were required to be retrospectively adjusted. The Company prospectively early-adopted ASU 2015-16 effective July 1, 2015. The adoption of this standard did not have a material impact on the financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB deferred the effective date to annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date or annual reporting periods and interim reporting periods within annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | q. Recently Issued Accounting Pronouncements Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of the end of Fiscal 2015, and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $71.0 million and $89.4 million of unamortized debt issuance costs (see Note 8 – Long Term Debt Long-term debt, non-current Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Acquisitions (Tables)88
Acquisitions (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Business Combinations [Abstract] | ||
Schedule of Acquisitions | The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2016 acquisitions: Viatel Dallas Data Center Acquisition date December 31, 2015 December 31, 2015 (in millions) Cash $ $ — Other current assets — Property and equipment Deferred tax assets, net — — Intangibles Goodwill — Other assets — — Total assets acquired Current liabilities — Deferred revenue — Deferred tax liability, net — Other liabilities — — Total liabilities assumed — Net assets acquired Less cash acquired — Net consideration paid $ $ The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions: AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 (in millions) Cash $ — $ $ — $ Other current assets Property and equipment Deferred tax assets, net — — Intangibles Goodwill Other assets — — Total assets acquired Current liabilities Deferred revenue — Deferred tax liability, net — — Other liabilities — — — Total liabilities assumed Net assets acquired Less cash acquired — — Net consideration paid $ $ $ $ | The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2015 acquisitions (in millions): AtlantaNAP Neo IdeaTek Latisys Acquisition date July 1, 2014 July 1, 2014 January 1, 2015 February 23, 2015 Cash $ — $ 4.2 $ — $ 9.4 Other current assets 0.2 9.5 0.8 17.1 Property and equipment 7.0 31.3 32.3 222.9 Deferred tax assets, net — — 2.9 — Intangibles 21.0 26.4 7.6 250.2 Goodwill 25.2 32.5 38.8 279.8 Other assets — 2.3 — 5.0 Total assets acquired 53.4 106.2 82.4 784.4 Current liabilities 1.5 13.5 4.5 10.7 Deferred revenue — 3.7 25.2 3.2 Deferred tax liability, net — 7.6 — 83.6 Other liabilities — 3.3 — — Total liabilities assumed 1.5 28.1 29.7 97.5 Net assets acquired 51.9 78.1 52.7 686.9 Less cash acquired — (4.2 ) — (9.4 ) Net consideration paid $ 51.9 $ 73.9 $ 52.7 $ 677.5 The table below reflects the Company's estimates of the acquisition date fair values of the assets and liabilities assumed from its Fiscal 2014 acquisitions (in millions): Corelink Access FiberLink CoreXchange Geo Acquisition date August 1, 2013 October 1, 2013 October 2, 2013 March 4, 2014 May 16, 2014 Cash $ 0.1 $ 1.2 $ — $ — $ 13.7 Other current assets 0.5 2.3 0.8 0.6 8.8 Property and equipment 15.9 11.5 15.9 3.1 220.4 Deferred tax assets, net — — 7.7 0.2 — Intangibles 0.2 18.0 19.3 11.0 60.8 Goodwill 2.9 24.0 19.8 3.4 113.8 Other assets 0.5 — 0.1 — 9.8 Total assets acquired 20.1 57.0 63.6 18.3 427.3 Current liabilities 0.7 1.0 1.3 0.5 34.8 Deferred revenue 0.2 5.1 19.2 0.4 45.1 Capital lease obligations 14.2 — — 0.2 — Deferred tax liability, net 3.0 9.6 — — 38.2 Other liabilities — — — — 3.2 Total liabilities assumed 18.1 15.7 20.5 1.1 121.3 Net assets acquired 2.0 41.3 43.1 17.2 306.0 Less cash acquired (0.1 ) (1.2 ) — — (13.7 ) Net consideration paid $ 1.9 $ 40.1 $ 43.1 $ 17.2 $ 292.3 The table below reflects the Company's estimates of the acquisition date fair values of the acquired assets and liabilities assumed from its Fiscal 2013 acquisitions (in millions): AboveNet Fibergate US Carrier First Telecom Litecast Core NAP Acquisition date July 2, 2012 August 31, 2012 October 1, 2012 December 14, 2012 December 14, 2012 May 31, 2013 Cash $ 141.6 $ 2.3 $ — $ — $ — $ — Other current assets 46.5 4.9 1.3 5.9 0.3 0.2 Property and equipment 1,477.3 59.0 19.4 63.5 0.4 2.5 Deferred tax assets, net 42.1 — 2.0 19.2 — — Intangibles 480.4 35.9 6.8 17.1 12.5 4.1 Goodwill 381.6 53.8 5.4 48.4 9.9 1.0 Other assets 12.6 — — 0.1 — — Total assets acquired 2,582.1 155.9 34.9 154.2 23.1 7.8 Current liabilities 78.4 1.5 3.7 4.6 0.2 0.5 Deferred revenue 146.0 2.5 2.2 39.9 0.7 — Other liabilities 6.1 — — — — 0.2 Deferred tax liability, net — 31.3 — — — — Total liabilities assumed 230.5 35.3 5.9 44.5 0.9 0.7 Net assets acquired 2,351.6 120.6 28.9 109.7 22.2 7.1 Cost method investment in USCarrier — — (12.8 ) — — — Less cash acquired (141.6 ) (2.3 ) — — — — Net consideration paid $ 2,210.0 $ 118.3 $ 16.1 $ 109.7 $ 22.2 $ 7.1 |
Schedule Of Pro-Forma Financial Information | The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2014. Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenue $ $ $ $ Net loss $ $ $ $ | The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisitions been consummated as of July 1, 2013. Year Ended June 30, 2015 2014 Revenue $ 1,420.2 $ 1,329.6 Net loss $ (182.4 ) $ (221.5 ) |
Goodwill (Tables)89
Goodwill (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Schedule Of Goodwill | The following reflects the changes in the carrying amount of goodwill during the six months ended December 31, 2015 : Product Group As of June 30, 2015 Fiscal 2016 Acquisitions Adjustments to Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of December 31, 2015 (in millions) Dark Fiber $ $ $ — $ $ Waves — Sonet — — Ethernet — IP — MIG — — zColo Cloud — — Other — — — Total $ $ $ $ $ During the six months ended December 31, 2015, the Company recorded adjustments to its provisional accounting estimates primarily associated with deferred tax asset balances acquired from the IdeaTek and Latisys acquisitions, which resulted in a $4.8 million reduction to goodwill | The following reflects the changes in the carrying amount of goodwill during Fiscal 2015 (in millions): Product Group As of July 1, 2014 Fiscal 2015 Acquisitions Foreign Currency Translation and Other As of June 30, 2015 Dark Fiber $ 293.3 $ 16.0 $ (10.2 ) $ 299.1 Waves 269.0 1.4 (4.8 ) 265.6 Sonet 50.3 — — 50.3 Ethernet 96.7 8.2 (0.7 ) 104.2 IP 80.5 6.8 (1.0 ) 86.3 MIG 43.7 29.8 (0.1 ) 73.4 zColo 18.6 256.0 (1.4 ) 273.2 Cloud — 57.2 (0.2 ) 57.0 Other 14.6 0.9 (0.2 ) 15.3 Total $ 866.7 $ 376.3 $ (18.6 ) $ 1,224.4 The following reflects the changes in the carrying amount of goodwill during Fiscal 2014 (in millions): Product Group As of July 1, 2013 Fiscal 2014 Acquisitions Foreign Currency Translation and Other As of June 30, 2014 Dark Fiber $ 193.3 $ 97.4 $ 2.6 $ 293.3 Waves 215.9 49.6 3.5 269.0 Sonet 50.3 — — 50.3 Ethernet 91.7 4.9 0.1 96.7 IP 80.1 0.2 0.2 80.5 MIG 38.3 5.4 — 43.7 zColo 11.9 6.4 0.3 18.6 Other 7.3 — 7.3 14.6 Total $ 688.8 $ 163.9 $ 14.0 $ 866.7 |
Intangible Assets (Tables)90
Intangible Assets (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Schedule of Identifiable Acquisition Related Intangible Assets | Identifiable acquisition-related intangible assets as of December 31, 2015 and June 30, 2015 were as follows: Gross Carrying Amount Accumulated Amortization Net (in millions) December 31, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names — Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ $ $ Trade names Underlying rights Total Indefinite-Lived Intangible Assets Certifications — Underlying Rights — Total $ $ $ | Identifiable acquisition-related intangible assets as of June 30, 2015 and 2014 were as follows (in millions): Gross Carrying Amount Accumulated Amortization Net June 30, 2015 Finite-Lived Intangible Assets Customer relationships $ 1,080.3 $ (155.0 ) $ 925.3 Trade names 0.2 (0.1 ) 0.1 Underlying rights 1.7 (0.2 ) 1.5 Total 1,082.2 (155.3 ) 926.9 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying Rights 17.9 — 17.9 Total $ 1,103.6 $ (155.3 ) $ 948.3 June 30, 2014 Finite-Lived Intangible Assets Customer relationships $ 789.2 $ (103.6 ) $ 685.6 Trade names 0.1 — 0.1 Underlying rights 1.8 (0.1 ) 1.7 Total 791.1 (103.7 ) 687.4 Indefinite-Lived Intangible Assets Certifications 3.5 — 3.5 Underlying rights 19.4 — 19.4 Total $ 814.0 $ (103.7 ) $ 710.3 |
Long-Term Debt (Tables)91
Long-Term Debt (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||
Schedule of Debt | As of December 31, 2015 and June 30, 2015 , long-term debt was as follows: December 31, June 30, 2015 2015 (in millions) Term Loan Facility due 2021 $ $ 10.125% Senior Unsecured Notes due 2020 6.00% Senior Unsecured Notes Due 2023 6.375% Senior Unsecured Notes Due 2025 Total debt obligations Unamortized discount on Term Loan Facility Unamortized premium on 6.00% Senior Unsecured Notes Unamortized debt issuance costs Carrying value of debt Less current portion Long-term debt, less current portion $ $ | As of June 30, 2015 and 2014, long-term debt was as follows (in millions): 2015 2014 Term Loan Facility due 2021 $ 1,646.8 $ 2,010.8 8.125% Senior Secured Notes due 2020 — 750.0 10.125% Senior Unsecured Notes due 2020 325.6 500.0 6.00% Senior Unsecured Notes Due 2023 1,430.0 — 6.375% Senior Unsecured Notes Due 2025 350.0 — Total debt obligations 3,752.4 3,260.8 Unamortized discount on Term Loan Facility (19.8 ) (20.6 ) Unamortized premium on 6.00% Senior Unsecured Notes 7.1 — Unamortized debt issuance costs (71.0 ) (89.4 ) Carrying value of debt 3,668.7 3,150.8 Less current portion (16.5 ) (20.5 ) Long-term debt, less current portion $ 3,652.2 $ 3,130.3 |
Income Taxes (Tables)92
Income Taxes (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Provision for Income Taxes | The Company’s provision for income taxes from operations is summarized as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Current Income Taxes (in millions) Federal $ $ $ $ State Foreign — Total $ $ $ $ Deferred Income Taxes Federal $ $ $ $ State Foreign Total Total provision/(benefit) for income taxes $ $ $ $ | The Company’s (benefit)/provision for income taxes from operations are summarized as follows (in millions): Year Ended June 30, 2015 2014 2013 Current Income Taxes Federal $ 1.7 $ 6.3 $ — State 4.4 3.8 1.7 Foreign (1.6 ) 3.3 — Total $ 4.5 $ 13.4 $ 1.7 Deferred Income Taxes Federal $ (8.6 ) $ 26.3 $ (23.5 ) State (6.9 ) 1.2 (3.5 ) Foreign 2.3 (0.6 ) 3.5 Total (13.2 ) 26.9 (23.5 ) Total (benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) |
Schedule of Income before Income Tax | The United States and foreign components of loss from operations before income taxes for the three and six months ended December 31, 2015 and 2014 are as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) United States $ $ $ $ Foreign Total $ $ $ $ | The United States and foreign components of (loss)/benefit from operations before income taxes are as follows (in millions): Year Ended June 30, 2015 2014 2013 United States $ (159.4 ) $ (127.8 ) $ (179.5 ) Foreign $ (4.4 ) $ (9.0 ) $ 15.8 Total $ (163.8 ) $ (136.8 ) $ (163.7 ) |
Schedule Of Reconciliation Of Income Tax Provision | A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the three and six-month periods ended December 31, 2015 and 2014 is as follows: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Expected benefit at the statutory rate $ $ $ $ Increase/(decrease) due to: Non-deductible stock-based compensation State income taxes benefit, net of federal benefit — Transactions costs not deductible for tax purposes Foreign tax rate differential Other, net Provision/(benefit) for income taxes $ $ $ $ | A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the years ended June 30, 2015, 2014 and 2013 are as follows (in millions): Year ended June 30, 2015 2014 2013 Expected benefit/provision at the statutory rate $ (57.3 ) $ (47.9 ) $ (57.1 ) Increase/(decrease) due to: Non-deductible stock-based compensation 59.4 96.5 35.6 State income taxes benefit, net of federal benefit (7.4 ) (6.3 ) (1.9 ) Transactions costs not deductible for tax purposes 0.7 0.8 1.3 Reversal of uncertain tax positions, net — (2.6 ) — State NOL adjustment — — 2.8 Change in effective tax rate (2.2 ) (0.3 ) — Change in valuation allowance — 1.3 — Foreign tax rate differential 0.6 1.0 (2.3 ) Other, net (2.5 ) (2.2 ) (0.2 ) (Benefit)/provision for income taxes $ (8.7 ) $ 40.3 $ (21.8 ) |
Stock-Based Compensation (Tab93
Stock-Based Compensation (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Schedule of Employee Service Share-based Compensation Allocation of Recognized Period Costs | The following table summarizes the Company’s stock-based compensation expense for liability and equity classified awards included on the condensed consolidated statements of operations. Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 Included in: (in millions) Operating costs $ $ $ $ Selling, general and administrative expenses Total stock-based compensation expense $ $ $ $ CII common and preferred units $ $ $ $ Part A restricted stock units Part B restricted stock units Part C restricted stock units — — Total stock-based compensation expense $ $ $ $ | The following tables summarize the Company’s stock-based compensation expense for liability and equity classified awards included in the consolidated statements of operations (in millions). Year Ended June 30, Included in: 2015 2014 2013 Operating costs $ 23.3 $ 20.2 $ 7.7 Selling, general and administrative expenses 177.4 233.5 98.1 Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 CII Common units $ 156.4 $ 253.3 $ 104.9 CII Preferred units 0.4 0.4 0.9 Part A restricted stock units 12.6 — — Part B restricted stock units 31.3 — — Total stock-based compensation expense $ 200.7 $ 253.7 $ 105.8 |
Summary Of Part B RSU Issuance | The table below reflects the total Part B RSUs granted during Fiscal 2016 and 2015 , the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into, and the grant date fair value per Part B RSU: During the Three months ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 (in millions, except per share data) Part B RSUs granted Maximum eligible shares of ZGH's stock Grant date fair value per Part B RSU $ $ $ $ $ | The table below reflects the total Part B RSUs granted during each period presented, the maximum eligible shares of ZGH’s stock that the respective Part B RSU grant could be converted into shares of ZGH’s common stock and the grant date fair value per Part B RSU (in millions): During the three months ended June March 31, 2015 December 31, 2014 Part B RSUs granted 316,353 359,658 575,660 Maximum eligible shares of the Company's stock 1,490,023 1,381,086 2,210,534 Grant date fair value per Part B RSU $ 27.10 $ 24.36 $ 63.12 |
Part A Restricted Stock Units [Member] | ||
Summary Of Restricted Stock Units Activity | The following table summarizes the Company’s Part A RSU activity for the six months ended December 31, 2015 : Number of Part A RSUs Weighted average grant-date fair value per share Weighted average remaining contractual term in months (in millions, except share data) Outstanding at July 1, 2015 $ Granted $ Vested $ Forfeited $ n/a Outstanding at December 31, 2015 $ | |
Part B Restricted Stock Units [Member] | ||
Summary Of Restricted Stock Units Activity | The following table summarizes the Company’s Part B RSU activity for the six months ended December 31, 2015 : Number of Part B RSUs Weighted average grant-date fair value per unit Weighted average remaining contractual term in months (in millions, except share data) Outstanding at July 1, 2015 $ Granted $ Vested $ Forfeited $ Outstanding at December 31, 2015 $ |
Fair Value Measurements (Tabl94
Fair Value Measurements (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | As of December 31, 2015 and June 30, 2015 , there was no balance outstanding under the Company's Revolver. Financial instruments measured at fair value on a recurring basis are summarized below: Level December 31, 2015 June 30, 2015 Liabilities Recorded at Fair Value in the Financial Statements: (in millions) Interest rate swap Level 2 $ $ | Financial instruments measured at fair value on a recurring basis are summarized below Level June 30, 2015 June 30, 2014 Liabilities Recorded at Fair Value in the Financial Statements: Interest rate swap Level 2 $ 4.1 $ 2.0 |
Related Party Transactions (T95
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
O V S [Member] | ||
Revenue and Expense Transactions Recognized | The following table represents the revenue and expense transactions the Company recorded with OVS for the periods presented: Three months ended December 31, Six months ended December 31, 2015 2014 2015 2014 (in millions) Revenues $ $ $ $ Operating costs $ $ $ $ | The following table represents the revenue and expense transactions the Company recorded with OVS (in millions): Year Ended June 30, 2015 2014 2013 Revenues $ 6.9 $ 7.0 6.6 Operating costs $ 1.0 $ 1.6 1.5 |
Segment Reporting (Tables)96
Segment Reporting (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||
Summary of Financial Information by Segments | As of and for the Three months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of and for the Three months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Total assets Capital expenditures — — As of and for the Six months ended December 31, 2014 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Revenue from external customers $ $ $ $ $ — $ Segment Adjusted EBITDA — Capital expenditures — — As of June 30, 2015 Dark Fiber Solutions Network Connectivity Colocation and Cloud Infrastructure Other Corp/ Eliminations Total (in millions) Total assets $ $ $ $ $ $ | For the year ended June 30, 2015 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 531.3 648.0 144.6 23.2 — 1,347.1 Segment Adjusted EBITDA 364.3 339.2 73.8 5.3 — 782.6 Total assets 2,848.9 1,807.7 1,013.7 35.0 388.7 6,094.0 Capital expenditures, net of stimulus grant reimbursements 279.7 195.1 55.4 0.2 — 530.4 For the year ended June 30, 2014 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 419.8 606.2 75.6 28.1 — 1,129.7 Segment Adjusted EBITDA 288.2 326.7 37.4 8.0 — 660.3 Total assets 2,714.6 1,739.1 157.9 43.1 326.2 4,980.9 Capital expenditures, net of stimulus grant reimbursements 181.0 151.6 28.2 — — 360.8 For the year ended June 30, 2013 (in millions) Dark Fiber Network Colocation Other Corp/ Total Revenue from external customers 358.8 570.5 54.2 27.8 (0.3 ) 1,011.0 Segment Adjusted EBITDA 250.7 278.3 25.4 6.2 (0.1 ) 560.5 Total assets 2,213.2 1,685.5 98.3 32.4 122.7 4,152.1 Capital expenditures, net of stimulus grant reimbursements 165.8 143.0 14.5 — — 323.3 |
Condensed Consolidating Finan97
Condensed Consolidating Financial Information (Tables) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Condensed Consolidating Financial Information [Abstract] | ||
Schedule Of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheets (Unaudited) December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties — — Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets — Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — $ Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — — Deferred revenue, current — Total current liabilities — Long-term debt, non-current — Capital lease obligation, non-current — — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ Condensed Consolidating Balance Sheets (Unaudited) June 30, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ $ $ $ — Trade receivables, net of allowance — Due from related parties Prepaid expenses — Deferred income taxes, net — — Other assets — — Total current assets Property and equipment, net — Intangible assets, net — Goodwill — Other assets — Related party receivable — — — Investment in subsidiary — — — Total assets $ $ $ $ $ Liabilities and member's equity Current liabilities Current portion of long-term debt $ $ — $ — $ — Accounts payable — Accrued liabilities — Accrued interest — — — Capital lease obligations, current — Due to related parties — Deferred revenue, current — Total current liabilities Long-term debt, non-current — — — Related party debt, long-term — — — Capital lease obligation, non-current — Deferred revenue, non-current — Deferred income taxes, net — — Other long-term liabilities — Total liabilities — Commitments and contingencies (Note 10) Member's equity Member's interest Accumulated other comprehensive loss — — — Accumulated deficit Total member's equity Total liabilities and member's equity $ $ $ $ $ | Condensed Consolidating Balance Sheets Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 274.3 $ 4.7 $ 29.0 $ — 308.0 Trade receivables, net of allowance 54.7 4.6 28.7 — 88.0 Due from related parties (1.3 ) 0.4 2.9 (1.4 ) 0.6 Prepaid expenses 25.8 4.4 7.1 — 37.3 Deferred income taxes, net 128.5 — 1.0 — 129.5 Other assets 3.6 — 0.3 — 3.9 Total current assets 485.6 14.1 69.0 (1.4 ) 567.3 Property and equipment, net 2,622.9 335.5 340.8 — 3,299.2 Intangible assets, net 605.8 239.5 103.0 — 948.3 Goodwill 762.2 281.0 181.2 — 1,224.4 Other assets 36.2 8.3 10.3 — 54.8 Related party receivable 304.8 — — (304.8 ) — Investment in subsidiary 1,050.8 — — (1,050.8 ) — Total assets $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 16.5 $ — $ — $ — 16.5 Accounts payable 26.6 4.0 9.4 — 40.0 Accrued liabilities 125.6 20.6 36.2 — 182.4 Accrued interest 57.2 — — — 57.2 Capital lease obligations, current 2.0 1.6 0.8 — 4.4 Due to related parties 1.7 — — (1.4 ) 1.3 Deferred revenue, current 73.2 2.8 10.6 — 86.6 Total current liabilities 302.8 29.0 58.0 (1.4 ) 388.4 Long-term debt, non-current 3,652.2 — — — 3,652.2 Related party debt, long-term — — 304.8 (304.8 ) — Capital lease obligation, non-current 5.6 18.6 4.1 — 28.3 Deferred revenue, non-current 559.4 4.6 48.7 — 612.7 Stock-based compensation liability 1.5 0.1 0.3 — 1.9 Deferred income taxes, net 139.2 — 50.5 — 189.7 Other long-term liabilities 13.5 10.5 2.7 — 26.7 Total liabilities 4,674.2 62.8 469.1 (306.2 ) 4,899.9 Member's equity Member's interest 1,730.1 778.1 251.2 (1,060.3 ) 1,699.1 Accumulated other comprehensive (loss)/income — — (7.9 ) — (7.9 ) Accumulated deficit (536.0 ) 37.5 (8.1 ) — (497.1 ) Total member's equity 1,194.1 815.6 235.2 (1,050.8 ) 1,194.1 Total liabilities and member's equity $ 5,868.3 $ 878.4 $ 704.3 $ (1,357.0 ) $ 6,094.0 Condensed Consolidating Balance Sheets Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets Cash and cash equivalents $ 256.0 $ 5.8 $ 35.6 $ — 297.4 Trade receivables, net of allowance 33.6 8.2 15.4 — 57.2 Due from related parties 0.3 — 0.6 — 0.9 Prepaid expenses 18.7 0.9 5.3 — 24.9 Deferred income taxes, net 156.0 3.5 1.5 — 161.0 Other assets 1.9 — 0.5 — 2.4 Total current assets 466.5 18.4 58.9 — 543.8 Property and equipment, net 2,389.3 109.3 323.8 — 2,822.4 Intangible assets, net 563.7 51.1 95.5 — 710.3 Goodwill 683.5 38.0 145.2 — 866.7 Other assets 23.4 3.5 10.8 — 37.7 Related party receivable 267.8 — — (267.8 ) — Investment in subsidiary 332.1 — — (332.1 ) — Total assets $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 Liabilities and member's equity Current liabilities Current portion of long-term debt $ 20.5 $ — $ — $ — 20.5 Accounts payable 20.4 4.3 2.0 — 26.7 Accrued liabilities 125.0 21.0 26.3 — 172.3 Accrued interest 57.1 — — — 57.1 Capital lease obligations, current 1.5 0.9 — — 2.4 Due to related parties (0.7 ) — 0.7 — — Deferred revenue, current 56.7 1.6 17.1 — 75.4 Total current liabilities 280.5 27.8 46.1 — 354.4 Long-term debt, non-current 3,130.3 — — — 3,130.3 Related party debt, long-term — — 267.8 (267.8 ) — Capital lease obligation, non-current 5.6 18.4 1.7 — 25.7 Deferred revenue, non-current 459.5 8.6 33.4 — 501.5 Stock-based compensation liability 343.8 23.3 25.3 — 392.4 Deferred income taxes, net 93.0 — 45.3 — 153.0 Other long-term liabilities 12.3 9.8 0.2 — 22.3 Total liabilities 4,325.0 102.6 419.8 (267.8 ) 4,579.6 Member's equity Member's interest 782.2 73.8 205.0 (332.1 ) 728.9 Accumulated other comprehensive (loss)/income — — 14.4 — 14.4 Accumulated deficit (380.9 ) 43.9 (5.0 ) — (342.0 ) Total member's equity 401.3 117.7 214.4 (332.1 ) 401.3 Total liabilities and member's equity $ 4,726.3 $ 220.3 $ 634.2 $ (599.9 ) $ 4,980.9 |
Schedule Of Condensed Consolidating Statements Of Operations | Condensed Consolidating Statements of Operations For the three months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations For the six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Foreign currency (loss)/gain on intercompany loans — — Other expense — — — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes Provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the three months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — — Net (loss)/earnings $ $ $ $ $ Condensed Consolidating Statements of Operations (Unaudited) For the six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor Issuer Subsidiaries Subsidiaries Eliminations Total Revenue $ $ $ $ — $ Operating costs and expenses Operating costs (excluding depreciation amortization and including stock-based compensation) — Selling, general and administrative expenses (including stock-based compensation) — Depreciation and amortization — Total operating costs and expenses — Operating income/(loss) — Other expenses Interest expense — Loss on extinguishment of debt — — — Foreign currency loss on intercompany loans — — Other income, net — Equity in net earnings of subsidiaries — — — Total other expense, net (Loss)/earnings from operations before income taxes (Benefit)/provision for income taxes — Net (loss)/earnings $ $ $ $ $ | Condensed Consolidating Statements of Operations Year Ended June 30, 2015 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 1,040.1 $ 151.6 $ 155.4 $ — $ 1,347.1 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 313.8 54.4 45.3 — 413.5 Selling, general and administrative expenses (including stock-based compensation) 266.4 38.9 52.8 — 358.1 Depreciation and amortization 321.7 42.7 41.8 — 406.2 Total operating costs and expenses 901.9 136.0 139.9 — 1,177.8 Operating income 138.2 15.6 15.5 — 169.3 Other expenses Interest expense (177.0 ) (20.3 ) (16.7 ) — (214.0 ) Loss on extinguishment of debt (91.8 ) (1.7 ) (0.8 ) — (94.3 ) Foreign currency (loss)/gain on intercompany loans (23.2 ) — (1.2 ) — (24.4 ) Other income, net (0.4 ) — — — (0.4 ) Equity in net earnings of subsidiaries (9.5 ) — — 9.5 — Total other expense, net (301.9 ) (22.0 ) (18.7 ) 9.5 (333.1 ) (Loss)/earnings before provision for income taxes (163.7 ) (6.4 ) (3.2 ) 9.5 (163.8 ) (Benefit)/provision for income taxes (8.6 ) — (0.1 ) — (8.7 ) Net (loss)/earnings $ (155.1 ) $ (6.4 ) $ (3.1 ) $ 9.5 $ (155.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2014 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 956.5 $ 102.8 $ 70.4 $ — $ 1,129.7 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 290.1 45.5 7.7 — 343.3 Selling, general and administrative expenses (including stock-based compensation) 327.3 28.3 29.0 — 384.6 Depreciation and amortization 307.6 13.8 16.8 — 338.2 Total operating costs and expenses 925.0 87.6 53.5 — 1,066.1 Operating income 31.5 15.2 16.9 — 63.6 Other expenses Interest expense (201.1 ) — (2.4 ) — (203.5 ) Loss on extinguishment of debt (1.9 ) — — — (1.9 ) Foreign currency (loss)/gain on intercompany loans 3.5 — 1.2 — 4.7 Other income, net 0.3 — — — 0.3 Equity in net earnings of subsidiaries 28.2 — — (28.2 ) — Total other expense, net (171.0 ) — (1.2 ) (28.2 ) (200.4 ) (Loss)/earnings before provision for income taxes (139.5 ) 15.2 15.7 (28.2 ) (136.8 ) (Benefit)/provision for income taxes 37.6 - 2.7 — 40.3 Net (loss)/earnings $ (177.1 ) $ 15.2 $ 13.0 $ (28.2 ) $ (177.1 ) Condensed Consolidating Statements of Operations Year Ended June 30, 2013 Zayo Group, LLC Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Total (Issuer) Revenue $ 876.4 $ 85.4 $ 57.9 $ (8.7 ) $ 1,011.0 Operating costs and expenses Operating costs (excluding depreciation amortiztion and including stock-based compensation) 255.5 50.4 16.9 (8.7 ) 314.1 Selling, general and administrative expenses (including stock-based compensation) 229.5 9.4 17.8 — 256.7 Depreciation and amortization 301.4 9.8 13.3 — 324.5 Total operating costs and expenses 786.4 69.6 48.0 (8.7 ) 895.3 Operating income 90.0 15.8 9.9 — 115.7 Other expenses Interest expense (202.1 ) — (0.4 ) — (202.5 ) Loss on extinguishment of debt (77.3 ) — — — (77.3 ) Foreign currency (loss)/gain on intercompany loans 0.1 — — — 0.1 Other income, net 0.2 — 0.1 — 0.3 Equity in net earnings of subsidiaries 20.7 — — (20.7 ) — Total other expense, net (258.4 ) — (0.3 ) (20.7 ) (279.4 ) (Loss)/earnings before provision for income taxes (168.4 ) 15.8 9.6 (20.7 ) (163.7 ) (Benefit)/provision for income taxes (26.5 ) — 4.7 — (21.8 ) Net (loss)/earnings $ (141.9 ) $ 15.8 $ 4.9 $ (20.7 ) $ (141.9 ) |
Schedule Of Condensed Consolidating Statements Of Cash Flows | Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2015 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired — Other Net cash used in investing activities Cash flows from financing activities: Distributions to parent Loan from Parent — — Principal payments on long-term debt — Principal repayments on capital lease obligations Excess tax benefit from stock-based compensation — — Other — — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash — — Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ Condensed Consolidating Statements of Cash Flows Six months ended December 31, 2014 (in millions) Zayo Group, LLC Guarantor Non-Guarantor (Issuer) Subsidiaries Subsidiaries Total Net cash provided by operating activities $ $ Cash flows from investing activities: Purchases of property and equipment Acquisitions, net of cash acquired Net cash used in investing activities Cash flows from financing activities: Proceeds from equity offerings and contributions Principal payments on long-term debt — Payment of early redemption fees on debt extinguished — — Payment of)/receipt from intercompany loans — — Principal repayments on capital lease obligations — Net cash provided by financing activities Effect of changes in foreign exchange rates on cash Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period $ $ $ $ | Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2015 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 489.3 $ 55.7 62.0 $ 607.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (436.8 ) (47.8 ) (45.8 ) (530.4 ) Acquisitions, net of cash acquired (113.5 ) (668.3 ) (73.9 ) (855.7 ) Net cash used in investing activities (550.3 ) (716.1 ) (119.7 ) (1,386.1 ) Cash flows from financing activities: Proceeds from debt 1,747.2 — 40.1 1,787.3 Proceeds from equity offerings and contributions (290.9 ) 660.7 15.2 385.0 Direct costs associated with equity offerings - — — - Principal payments on long-term debt (1,288.5 ) — — (1,288.5 ) Payment of early redemption fees on debt extinguished (62.6 ) — — (62.6 ) Principal repayments on capital lease obligations (1.7 ) (1.4 ) (0.4 ) (3.5 ) Payment of debt issuance costs (24.2 ) — — (24.2 ) Net cash provided by financing activities 79.3 659.3 54.9 793.5 Effect of changes in foreign exchange rates on cash — — (3.8 ) (3.8 ) Net (decrease)/increase in cash and cash equivalents 18.3 (1.1 ) (2.8 ) 14.4 Cash and cash equivalents, beginning of period 256.0 5.8 35.6 297.4 Cash and cash equivalents, end of period $ 274.3 $ 4.7 $ 29.0 $ 308.0 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2014 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 485.5 43.2 33.3 $ 562.0 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (316.6 ) (28.2 ) (16.0 ) (360.8 ) Acquisitions, net of cash acquired (83.2 ) (17.8 ) (292.3 ) (393.3 ) Net cash used in investing activities (399.8 ) (46.0 ) (308.3 ) (754.1 ) Cash flows from financing activities: Proceeds from debt 423.6 — — 423.6 Proceeds from revolving credit facility 195.0 — — 195.0 Proceeds from equity offerings and contributions 11.2 (5.6 ) — 5.6 Distribution to parent (1.2 ) — — (1.2 ) Dividends received/(paid) (70.8 ) 15.8 55.0 — Principal payments on long-term debt (18.0 ) — — (18.0 ) Principal repayments on capital lease obligations (2.1 ) (5.8 ) — (7.9 ) Payment of)/receipt from intercompany loans (251.1 ) — 251.1 — Payments on revolving credit facility (195.0 ) — — (195.0 ) Payment of debt issuance costs (4.9 ) — — (4.9 ) Net cash provided by financing activities 86.7 4.4 306.1 397.2 Effect of changes in foreign exchange rates on cash — — 1.0 1.0 Net (decrease)/increase in cash and cash equivalents 172.4 1.6 31.1 205.1 Cash and cash equivalents, beginning of period 83.6 4.2 3.5 91.3 Cash and cash equivalents, end of period $ 256.0 $ 5.8 $ 35.6 $ 297.4 Condensed Consolidating Statements of Cash Flows Year Ended June 30, 2013 Zayo Group, LLC (Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Total Net cash provided by operating activities $ 359.3 $ 31.8 $ 13.6 $ 404.7 Cash flows from investing activities: Purchases of property and equipment, net of stimulus grants (299.8 ) (14.1 ) (9.4 ) (323.3 ) Acquisitions, net of cash acquired (2,489.0 ) 0.4 7.9 (2,480.7 ) Net cash used in investing activities (2,788.8 ) (13.7 ) (1.5 ) (2,804.0 ) Cash flows from financing activities: Proceeds from debt 3,184.4 4.9 — 3,189.3 Proceeds from equity offerings and contributions 344.0 — — 344.0 Dividends received/(paid) 18.6 (18.6 ) — — Principal payments on long-term debt (1,058.6 ) — — (1,058.6 ) Payment of early redemption fees on debt extinguished (72.1 ) — — (72.1 ) Principal repayments on capital lease obligations (1.8 ) (0.1 ) — (1.9 ) Payment of)/receipt from intercompany loans 8.3 — (8.3 ) — Payment of debt issuance costs (83.1 ) — — (83.1 ) Changes in restricted cash, net 22.6 — — 22.6 Net cash provided by financing activities 2,362.3 (13.8 ) (8.3 ) 2,340.2 Effect of changes in foreign exchange rates on cash 0.1 (0.1 ) (0.3 ) (0.3 ) Net (decrease)/increase in cash and cash equivalents (67.2 ) 4.3 3.8 (59.1 ) Cash and cash equivalents, beginning of period 150.7 — — 150.7 Cash and cash equivalents, end of period $ 83.6 $ 4.2 $ 3.5 $ 91.3 |
Acquisitions (Narrative) (Det98
Acquisitions (Narrative) (Details) € in Millions, $ in Millions | Dec. 31, 2015USD ($)ft² | Dec. 31, 2015EUR (€)ft² | Feb. 25, 2015USD ($) | Feb. 23, 2015USD ($)ft² | Feb. 23, 2015USD ($) | Jan. 06, 2015USD ($)CellularTowersBuildingsmi | Jan. 03, 2015 | Jan. 01, 2015USD ($)buildingitemmi | Jul. 03, 2014USD ($) | Jul. 03, 2014EUR (€) | Jul. 01, 2014USD ($) | Jul. 01, 2014EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2015Acquisition |
Business Acquisition [Line Items] | ||||||||||||||||||||
Number of business combinations completed | 36 | 34 | ||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 117.7 | $ 126.5 | $ 855.7 | $ 393.3 | $ 2,480.7 | |||||||||||||||
Acquisition related costs | $ 3.3 | $ 1.3 | $ 3.3 | 4.6 | 5.9 | 4.5 | 14.2 | |||||||||||||
Zayo Group, LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | 0.1 | $ 113.5 | $ 83.2 | $ 2,489 | ||||||||||||||||
Viatel [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition date | Dec. 31, 2015 | Dec. 31, 2015 | ||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 101 | € 92.6 | $ 101 | |||||||||||||||||
Purchase price, held in escrow | 5.5 | € 5 | ||||||||||||||||||
Dallas Data Center [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 16.7 | $ 16.7 | ||||||||||||||||||
Acquired area in square feet | ft² | 36,000 | 36,000 | ||||||||||||||||||
Neo Telecoms [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | Jul. 1, 2014 | |||||||||||||||||
Business acquisition, percentage of voting interests acquired | 96.00% | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 73.9 | € 54.1 | $ 73.9 | € 54.1 | $ 73.9 | $ 73.9 | ||||||||||||||
Purchase price, held in escrow | $ 11.9 | € 8.7 | ||||||||||||||||||
Business acquisition percentage of non controlling interest | 4.00% | |||||||||||||||||||
Neo Telecoms [Member] | Other long-term liabilities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition, fair value of noncontrolling interest | $ 2.9 | |||||||||||||||||||
Neo Telecoms [Member] | Call Option [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 4.00% | |||||||||||||||||||
Atlanta NAP [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | ||||||||||||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 51.9 | |||||||||||||||||||
Ideatek Systems, Inc., | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition date | Jan. 1, 2015 | Jan. 1, 2015 | Jan. 1, 2015 | |||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 52.7 | $ 52.7 | $ 52.7 | |||||||||||||||||
Additional Route Miles Acquired | mi | 1,800 | 1,800 | ||||||||||||||||||
Number Of Additional Cellular Towers connected | 600 | 600 | ||||||||||||||||||
Number Of Additional Building connected | 100 | 100 | ||||||||||||||||||
Business Acquisition Cost Of Acquired Entity Purchase Price Held In Escrow. | $ 3.2 | |||||||||||||||||||
Latisys Holdings, LLC | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Acquisition date | Feb. 23, 2015 | Feb. 23, 2015 | Feb. 23, 2015 | |||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ 677.5 | $ 677.5 | $ 677.8 | $ 677.5 | ||||||||||||||||
Purchase price, held in escrow | $ 31.4 | |||||||||||||||||||
Acquired area in square feet | ft² | 185,000 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill | $ 1,222.2 | $ 1,224.4 | $ 866.7 | $ 688.8 |
Ideatek Systems Inc And Latysis Holdings LLC [ Member ] | ||||
Decrease in goodwill due to adjustment of provisional accounting estimates | 4.8 | |||
Zayo Group, LLC [Member] | ||||
Goodwill | $ 762.5 | $ 762.2 | $ 683.5 |
Long-Term Debt (Summary of L100
Long-Term Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | May. 06, 2015 | Jun. 30, 2014 | Jul. 02, 2012 |
Debt Instrument [Line Items] | |||||
Debt obligations | $ 3,744.1 | $ 3,752.4 | $ 3,260.8 | ||
Unamortized debt issuance costs | (66.2) | (71) | (89.4) | ||
Carrying value of debt | 3,666.3 | 3,668.7 | 3,150.8 | ||
Less current portion | (16.5) | (16.5) | (20.5) | ||
Long-term debt, less current portion | 3,649.8 | 3,652.2 | 3,130.3 | ||
Zayo Group, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Less current portion | (16.5) | (16.5) | (20.5) | ||
Long-term debt, less current portion | 3,649.8 | 3,652.2 | 3,130.3 | ||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized premium on 6.00% Senior Unsecured Notes | 6.7 | 7.1 | |||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 325.6 | 325.6 | 500 | ||
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 1,430 | 1,430 | |||
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 350 | 350 | $ 344.5 | ||
Term Loan Facility due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt obligations | 1,638.5 | 1,646.8 | 2,010.8 | ||
Unamortized discount on Term Loan Facility | (18.3) | (19.8) | (20.6) | $ (30) | |
Carrying value of debt | $ 1,620.2 | $ 1,627 | $ 1,990.2 |
Long-Term Debt (Interest Rates
Long-Term Debt (Interest Rates and Maturities) (Details) | May. 06, 2015 | Jul. 02, 2012 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 09, 2015 |
10.125% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10.125% | |||||||
Debt Instrument Maturity Year | 2,020 | |||||||
Secured Debt [Member] | 8.125% Senior Secured Notes due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 8.125% | 8.125% | 8.125% | |||||
Debt Instrument Maturity Year | 2,020 | 2,020 | 2,020 | |||||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10.125% | 10.125% | 10.125% | 10.125% | ||||
Debt Instrument Maturity Year | 2,020 | 2,020 | 2,020 | |||||
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | |||
Debt Instrument Maturity Year | 2,023 | 2,023 | 2,023 | 2,023 | ||||
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | |||
Debt Instrument Maturity Year | 2,025 | 2,025 | 2,025 | 2,025 | ||||
Term Loan Facility due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Maturity Year | 2,021 | 2,021 | 2,021 |
Long-Term Debt (Narrative) (102
Long-Term Debt (Narrative) (Details) - USD ($) | May. 06, 2015 | May. 06, 2015 | Dec. 31, 2014 | Dec. 15, 2014 | Dec. 15, 2014 | Jul. 02, 2012 | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [5],[6],[7],[8] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 09, 2015 | Jan. 23, 2015 | Aug. 13, 2012 | |||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (65,000,000) | $ (8,500,000) | [1],[2] | $ (54,900,000) | [1],[2],[3],[4] | $ (30,900,000) | [1],[2] | $ (1,900,000) | $ (30,900,000) | $ (94,300,000) | [1],[2] | $ (1,900,000) | [5],[6] | $ (77,300,000) | ||||||||||||
Payment of early redemption fees on debt extinguished | 23,800,000 | 62,600,000 | 72,100,000 | |||||||||||||||||||||||
Debt issuance cost | $ 99,500,000 | 99,300,000 | ||||||||||||||||||||||||
Cumulative proceeds from issuance of private placement | 1,787,300,000 | 423,600,000 | 3,189,300,000 | |||||||||||||||||||||||
Redemption of notes | 8,300,000 | 259,700,000 | 1,288,500,000 | 18,000,000 | 1,058,600,000 | |||||||||||||||||||||
Redemption premium | 23,800,000 | |||||||||||||||||||||||||
Debt obligations | $ 3,744,100,000 | 3,752,400,000 | 3,744,100,000 | 3,752,400,000 | 3,260,800,000 | |||||||||||||||||||||
Outstanding letters of credit | 9,200,000 | 9,200,000 | 9,200,000 | 9,200,000 | ||||||||||||||||||||||
Unamortized debt issuance cost | 66,200,000 | 71,000,000 | 66,200,000 | 71,000,000 | 89,400,000 | |||||||||||||||||||||
Accumulated amortization | 33,300,000 | 28,300,000 | 33,300,000 | 28,300,000 | 25,400,000 | |||||||||||||||||||||
Unamortized debt issuance related interest | 2,500,000 | 3,800,000 | 5,000,000 | 7,500,000 | 13,900,000 | 13,900,000 | 11,500,000 | |||||||||||||||||||
8.125% Senior Secured Notes due 2020 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Redemption of notes | $ 75,000,000 | |||||||||||||||||||||||||
10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||||||||||||
Interest rate | 10.125% | 10.125% | ||||||||||||||||||||||||
Maturity date | 2,020 | |||||||||||||||||||||||||
Redemption premium | 23,800,000 | |||||||||||||||||||||||||
6.00% Senior Notes due 2023 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Cumulative proceeds from issuance of private placement | 1,437,300,000 | 1,437,300,000 | ||||||||||||||||||||||||
January Notes Offering [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||||||||||||||||
March Notes Offering [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 730,000,000 | |||||||||||||||||||||||||
Premium on debt being accreted | $ 7,300,000 | 7,300,000 | $ 7,300,000 | $ 7,300,000 | ||||||||||||||||||||||
Debt Instrument Issuance At Premium Price Percentage | 1.00% | 1.00% | ||||||||||||||||||||||||
Interest Rate Swap [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Notional amount of derivative | $ 750,000,000 | |||||||||||||||||||||||||
Derivative, maturity date | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||
Derivative, fixed interest rate | 1.67% | |||||||||||||||||||||||||
Derivative, floor rate | 1.25% | |||||||||||||||||||||||||
Change in fair value of interest rate swap | $ 1,000,000 | 1,500,000 | $ 600,000 | (500,000) | $ 2,100,000 | 4,600,000 | 2,600,000 | |||||||||||||||||||
Interest Rate Derivative Liabilities, at Fair Value | $ 3,500,000 | $ 4,100,000 | 3,500,000 | 4,100,000 | 2,000,000 | |||||||||||||||||||||
December 15, 2014 [Member] | 8.125% Senior Secured Notes due 2020 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 108.125% | |||||||||||||||||||||||||
Zayo Group, LLC [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (30,900,000) | (30,900,000) | (91,800,000) | (1,900,000) | (77,300,000) | |||||||||||||||||||||
Payment of early redemption fees on debt extinguished | 23,800,000 | 62,600,000 | 72,100,000 | |||||||||||||||||||||||
Cumulative proceeds from issuance of private placement | 1,747,200,000 | 423,600,000 | 3,184,400,000 | |||||||||||||||||||||||
Redemption of notes | $ 7,100,000 | $ 254,400,000 | $ 1,288,500,000 | $ 18,000,000 | 1,058,600,000 | |||||||||||||||||||||
Revolver [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Percentage of excess revolver committed to debt payments | 35.00% | 35.00% | ||||||||||||||||||||||||
Standby Letter Of Credit [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Unused commitment, percentage | 0.25% | 0.25% | ||||||||||||||||||||||||
Secured Debt [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Redemption of notes | $ 75,000,000 | |||||||||||||||||||||||||
Secured Debt [Member] | 8.125% Senior Secured Notes due 2020 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Interest rate | 8.125% | 8.125% | 8.125% | 8.125% | ||||||||||||||||||||||
Maturity date | 2,020 | 2,020 | 2,020 | |||||||||||||||||||||||
Loss on extinguishment of debt | $ 105.75 | |||||||||||||||||||||||||
Redemption of notes | 675,000,000 | $ 675,000,000 | ||||||||||||||||||||||||
Redemption premium | $ 38,800,000 | 38,800,000 | ||||||||||||||||||||||||
Debt obligations | $ 750,000,000 | |||||||||||||||||||||||||
Secured Debt [Member] | December 15, 2014 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 108.125% | |||||||||||||||||||||||||
Secured Debt [Member] | Revolver [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Line of credit facility maturity date | Apr. 17, 2020 | |||||||||||||||||||||||||
Outstanding letters of credit increased | $ 50,000,000 | $ 50,000,000 | ||||||||||||||||||||||||
Outstanding letters of credit | 0 | $ 0 | 0 | 0 | ||||||||||||||||||||||
Available borrowing capacity | 440,800,000 | 440,800,000 | $ 440,800,000 | $ 440,800,000 | ||||||||||||||||||||||
Secured Debt [Member] | Revolver [Member] | Minimum [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Unused commitment, percentage | 0.25% | 0.25% | ||||||||||||||||||||||||
Secured Debt [Member] | Revolver [Member] | Maximum [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Unused commitment, percentage | 0.375% | 0.375% | ||||||||||||||||||||||||
Secured Debt [Member] | Revolver [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Revolver interest rate | 2.00% | 2.00% | ||||||||||||||||||||||||
Secured Debt [Member] | Revolver [Member] | LIBOR [Member] | Maximum [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Revolver interest rate | 3.00% | 3.00% | ||||||||||||||||||||||||
Unsecured Debt [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Redemption of notes | $ 174,400,000 | |||||||||||||||||||||||||
Premium on debt being accreted | $ 6,700,000 | $ 7,100,000 | $ 6,700,000 | $ 7,100,000 | ||||||||||||||||||||||
Unsecured Debt [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Interest rate | 10.125% | 10.125% | 10.125% | 10.125% | 10.125% | |||||||||||||||||||||
Maturity date | 2,020 | 2,020 | 2,020 | |||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||
Total indebtedness ratio | 525.00% | 525.00% | ||||||||||||||||||||||||
Redemption of notes | $ 174,400,000 | |||||||||||||||||||||||||
Debt obligations | $ 325,600,000 | $ 325,600,000 | $ 325,600,000 | $ 325,600,000 | $ 500,000,000 | |||||||||||||||||||||
Unsecured Debt [Member] | 6.00% Senior Notes due 2023 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||
Maturity date | 2,023 | 2,023 | 2,023 | 2,023 | ||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||
Total indebtedness ratio | 600.00% | 600.00% | ||||||||||||||||||||||||
Line of credit facility maturity date | Apr. 1, 2023 | Apr. 1, 2023 | ||||||||||||||||||||||||
Debt obligations | $ 1,430,000,000 | $ 1,430,000,000 | $ 1,430,000,000 | $ 1,430,000,000 | ||||||||||||||||||||||
Unsecured Debt [Member] | 6.375% Senior Notes due 2025 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | ||||||||||||||||||||||||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | |||||||||||||||||||
Maturity date | 2,025 | 2,025 | 2,025 | 2,025 | ||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||
Total indebtedness ratio | 600.00% | 600.00% | ||||||||||||||||||||||||
Line of credit facility maturity date | May 15, 2025 | May 15, 2025 | ||||||||||||||||||||||||
Loss on extinguishment of debt | $ (8,400,000) | $ (8,400,000) | ||||||||||||||||||||||||
Revolver interest rate | 6.375% | |||||||||||||||||||||||||
Debt obligations | $ 344,500,000 | 344,500,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||||||||||||||||||||
Unsecured Debt [Member] | December 15, 2014 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 110.125% | |||||||||||||||||||||||||
Unsecured Debt [Member] | December 15, 2014 [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, redemption price, percentage | 110.125% | |||||||||||||||||||||||||
2020 Unsecured Notes [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||
Total indebtedness ratio | 5.25% | 5.25% | ||||||||||||||||||||||||
2020 Unsecured Notes [Member] | 10.125% Senior Notes due 2020 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||||||||||||
Interest rate | 10.125% | 10.125% | ||||||||||||||||||||||||
Maturity date | 2,020 | |||||||||||||||||||||||||
2023 Unsecured Notes [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||
Total indebtedness ratio | 6.00% | 6.00% | ||||||||||||||||||||||||
2025 Unsecured Notes [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Secured debt ratio | 4.50 | 4.50 | ||||||||||||||||||||||||
Total indebtedness ratio | 6.00% | 6.00% | ||||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Maturity date | 2,021 | 2,021 | 2,021 | |||||||||||||||||||||||
Discount on debt | $ 30,000,000 | $ 30,000,000 | $ 18,300,000 | 19,800,000 | $ 18,300,000 | $ 19,800,000 | $ 20,600,000 | |||||||||||||||||||
Payment towards principal | $ 5,100,000 | |||||||||||||||||||||||||
Percentage of excess cash flows committed to debt payments. | 50.00% | |||||||||||||||||||||||||
Line of credit facility maturity date | Jul. 31, 2019 | |||||||||||||||||||||||||
Debt obligations | $ 1,638,500,000 | $ 1,646,800,000 | $ 1,638,500,000 | $ 1,646,800,000 | 2,010,800,000 | |||||||||||||||||||||
Percentage of effective interest rate | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||||||
Term Loan Facility due 2021 [Member] | LIBOR [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Revolver interest rate | 2.75% | 2.75% | ||||||||||||||||||||||||
Term Loan Facility | Amendment and Restatement Agreement [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 450,000,000 | 450,000,000 | ||||||||||||||||||||||||
Payment towards principal | $ 4,100,000 | |||||||||||||||||||||||||
Percentage of excess cash flows committed to debt payments. | 50.00% | |||||||||||||||||||||||||
Term Loan Facility | LIBOR [Member] | Amendment and Restatement Agreement [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Revolver interest rate | 2.75% | 2.75% | ||||||||||||||||||||||||
Interest rate decrease (basis point) | (0.25%) | (25.00%) | ||||||||||||||||||||||||
Term Loan Facility | LIBOR [Member] | Minimum [Member] | Amendment and Restatement Agreement [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Revolver interest rate | 1.00% | 1.00% | ||||||||||||||||||||||||
Unamortized Debt Issuance Costs [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (23,200,000) | |||||||||||||||||||||||||
Unamortized Debt Discount | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 7,100,000 | $ (23,200,000) | $ (700,000) | $ (42,300,000) | ||||||||||||||||||||||
[1] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | |||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||||
[5] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. | |||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Income Taxes (Summary of (Be103
Income Taxes (Summary of (Benefit)/Provision for Income Taxes from Continuing Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Current Income Taxes | ||||||||||||||||||||||||
Federal | $ 0.7 | $ 1.6 | $ 0.8 | $ 3.1 | $ 1.7 | $ 6.3 | ||||||||||||||||||
State | 3.1 | 0.9 | 3.5 | 1.8 | 4.4 | 3.8 | $ 1.7 | |||||||||||||||||
Foreign | 1 | 1.2 | 0.8 | (1.6) | 3.3 | |||||||||||||||||||
Current Income Tax Expense (Benefit), Total | 4.8 | 2.5 | 5.5 | 5.7 | 4.5 | 13.4 | 1.7 | |||||||||||||||||
Deferred Income Taxes | ||||||||||||||||||||||||
Federal | 8.2 | (5.2) | 9.9 | 1.1 | (8.6) | 26.3 | (23.5) | |||||||||||||||||
State | (2) | (1.4) | (2.2) | (1.2) | (6.9) | 1.2 | (3.5) | |||||||||||||||||
Foreign | 0.1 | (0.2) | 0.6 | (0.5) | 2.3 | (0.6) | 3.5 | |||||||||||||||||
Deferred Income Tax Expense (Benefit), Total | 6.3 | (6.8) | 8.3 | (0.6) | (13.2) | 26.9 | (23.5) | |||||||||||||||||
Total (benefit)/provision for income taxes | 11.1 | $ 4.6 | $ (18.4) | (4.3) | [1] | $ 9.4 | $ 10.5 | $ 12.1 | $ 8.4 | $ 9.3 | 13.8 | 5.1 | (8.7) | [1] | 40.3 | [4] | (21.8) | |||||||
Zayo Group, LLC [Member] | ||||||||||||||||||||||||
Deferred Income Taxes | ||||||||||||||||||||||||
Total (benefit)/provision for income taxes | $ 10.3 | $ (4.2) | $ 12.2 | $ 4.4 | $ (8.6) | $ 37.6 | $ (26.5) | |||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Income Taxes (Income_(Loss) fro
Income Taxes (Income/(Loss) from Continuing Operations Before Income Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
United States | $ 1.6 | $ 0.1 | $ (12.1) | $ (92.2) | $ (159.4) | $ (127.8) | $ (179.5) | |||||||||||||||||
Foreign | (1.3) | (0.7) | (0.1) | (9.3) | (4.4) | (9) | 15.8 | |||||||||||||||||
Loss before income taxes | 0.3 | $ 9.8 | $ (72.1) | (0.6) | [1] | $ (100.9) | $ (59.5) | $ (31.5) | $ (27.6) | $ (18.2) | (12.2) | (101.5) | (163.8) | [1] | (136.8) | [4] | (163.7) | |||||||
Zayo Group, LLC [Member] | ||||||||||||||||||||||||
Loss before income taxes | $ (0.5) | $ (0.5) | $ (13.8) | $ (102.2) | $ (163.7) | $ (139.5) | $ (168.4) | |||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Income Taxes (Reconciliation105
Income Taxes (Reconciliations of Actual Income Tax Provision and Tax Computed by Applying United States Federal Rate to Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Expected benefit at the statutory rate | $ (0.1) | $ (0.3) | $ (4.3) | $ (35.6) | $ (57.3) | $ (47.9) | $ (57.1) | |||||||||||||||||
Non-deductible stock-based compensation | 10 | (5.1) | 17.4 | 42.1 | 59.4 | 96.5 | 35.6 | |||||||||||||||||
State income taxes benefit, net of federal benefit | 0.1 | (0.5) | (4.5) | (7.4) | (6.3) | (1.9) | ||||||||||||||||||
Transaction costs not deductible for tax purposes | 0.5 | 0.1 | 0.5 | 0.4 | 0.7 | 0.8 | 1.3 | |||||||||||||||||
Foreign tax rate differential | 0.4 | (0.3) | 0.3 | 0.8 | 0.6 | 1 | (2.3) | |||||||||||||||||
Other, net | 0.2 | 1.3 | 0.4 | 1.9 | (2.5) | (2.2) | (0.2) | |||||||||||||||||
Total (benefit)/provision for income taxes | 11.1 | $ 4.6 | $ (18.4) | (4.3) | [1] | $ 9.4 | $ 10.5 | $ 12.1 | $ 8.4 | $ 9.3 | 13.8 | 5.1 | (8.7) | [1] | 40.3 | [4] | (21.8) | |||||||
Zayo Group, LLC [Member] | ||||||||||||||||||||||||
Total (benefit)/provision for income taxes | $ 10.3 | $ (4.2) | $ 12.2 | $ 4.4 | $ (8.6) | $ 37.6 | $ (26.5) | |||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | |||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | |||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Increase in member's interest associated with stock-based compensation expense | $ 87.6 | $ 95 | $ 0.4 | $ 0.9 | |
Increase to member's interest associated with a tax benefit from stock-based compensation | 5.1 | ||||
Amount of share based tax benefit retained that otherwise would've been paid as income taxes | 0.6 | ||||
Amount of share based tax benefit preserved for federal net operating loss carryforwards | 4.5 | ||||
Gross tax benefit recognized in financing activities | 7.9 | ||||
Offsetting cash outflow recognized in operating activities | 7.9 | ||||
Stock repurchased during period, shares | 726,327 | ||||
Stock repurchased during period, value | $ 17.5 | ||||
Members Interest [Member] | |||||
Increase in member's interest associated with stock-based compensation expense | $ 95 | $ 0.4 | $ 0.9 | ||
Stock Compensation Plan [Member] | Members Interest [Member] | |||||
Gross tax benefit recognized in financing activities | 7.9 | ||||
Zayo Group, LLC [Member] | |||||
Gross tax benefit recognized in financing activities | $ 7.9 |
Stock-Based Compensation (Su107
Stock-Based Compensation (Summary of Stock-based Compensation Expense Liability and Equity Classified Awards Included in Consolidated Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 42.9 | $ (6) | $ 89 | $ 117.1 |
Operating Expense [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5.1 | 0.9 | 11.8 | 15.4 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 37.8 | (6.9) | 77.2 | 101.7 |
Common and Preferred Units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 26.4 | (13.3) | 45.9 | 109.8 |
Part A Restricted Stock Units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 10.2 | 2.6 | 20.2 | 2.6 |
Part B Restricted Stock Units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 6 | $ 4.7 | 22.4 | $ 4.7 |
Part C Restricted Stock Units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 0.3 | $ 0.5 |
Stock-Based Compensation (Na108
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 09, 2014 | Oct. 09, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Reclassification of common unit liability to additional paid in capital | $ 490.2 | |||||||||||||
Vesting date | May 15, 2017 | May 15, 2017 | ||||||||||||
Common stock distributed in connection with non-liquidating distribution | 20,460,047 | 20,460,047 | ||||||||||||
Total stock-based compensation expense | $ 200.7 | $ 253.7 | $ 105.8 | |||||||||||
Award recorded as liability | $ 1.9 | 1.9 | 392.4 | |||||||||||
Adjustment to additional paid in capital fair value adjustment share based compensation awards | $ 12.4 | $ 12.4 | ||||||||||||
PCIP [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Incentive plan termination period | 10 years | 10 years | ||||||||||||
Vested Portion of Part A Restricted Stock Units [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Total stock-based compensation expense | $ 10.2 | $ 2.6 | $ 20.2 | $ 2.6 | $ 12.6 | |||||||||
Part A Restricted Stock Units [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Common unit unvested | 1,746,847 | 933,217 | 1,746,847 | 933,217 | ||||||||||
Total stock-based compensation expense | $ 12.6 | |||||||||||||
Unrecognized compensation cost | $ 18.7 | $ 12.6 | $ 18.7 | 12.6 | ||||||||||
Award recorded as liability | $ 2 | $ 1.9 | $ 2 | $ 1.9 | ||||||||||
Number of RSUs, Granted | 1,024,991 | |||||||||||||
Part B Restricted Stock Units [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Shares authorized | 1,449,860 | 1,426,812 | 1,490,023 | 1,388,280 | 2,222,048 | 1,449,860 | 2,222,048 | 1,490,023 | ||||||
Common unit unvested | 830,607 | 1,249,873 | 830,607 | 1,249,873 | ||||||||||
Total stock-based compensation expense | $ 6 | $ 4.7 | $ 22.4 | $ 4.7 | $ 31.3 | |||||||||
Unrecognized compensation cost | $ 8.2 | $ 21.9 | $ 8.2 | $ 21.9 | ||||||||||
Number of RSUs, Granted | 282,074 | 272,813 | 316,353 | 359,658 | 575,660 | 554,887 | ||||||||
Part C Restricted Stock Units [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Total stock-based compensation expense | $ 0.3 | $ 0.5 | ||||||||||||
Number of RSUs, Granted | 18,826 | |||||||||||||
CII [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Shares authorized | 625,000,000 | 625,000,000 | 625,000,000 | 625,000,000 | ||||||||||
Common unit unvested | 29,555 | 29,555 | ||||||||||||
Unrecognized compensation cost | $ 37.5 | $ 37.5 | ||||||||||||
Common stock distributed in exchange for vested preferred units | 256,265 | 256,265 | ||||||||||||
CII [Member] | IPO [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Common unit unvested | 29,555 | 29,555 | ||||||||||||
CII [Member] | Common Units [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Shares authorized | 625,000,000 | 625,000,000 | ||||||||||||
Common unit unvested | 6,353,302 | 6,353,302 | ||||||||||||
Common stock distributed for existing share holders | 10,294,867 | 10,294,867 | ||||||||||||
Total stock-based compensation expense | $ 13.3 | $ 109.8 | $ 156.4 | $ 253.3 | $ 104.9 | |||||||||
Unrecognized compensation cost | $ 70.2 | $ 70.2 | ||||||||||||
CII [Member] | Common and Preferred Units [Member] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Total stock-based compensation expense | $ 26.4 | $ 45.9 |
Stock-Based Compensation (Su109
Stock-Based Compensation (Summary Of Restricted Stock Units Activity) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Jun. 30, 2015 | |
Part A Restricted Stock Units [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of RSUs, Outstanding beginning balance | 933,217 | 933,217 | |||||
Number of RSUs, Granted | 1,024,991 | ||||||
Number of RSUs, Vested | (146,001) | ||||||
Number of RSUs, Forfeited | (65,360) | ||||||
Number of RSUs, Outstanding ending balance | 1,746,847 | 933,217 | 1,746,847 | 933,217 | |||
Weighted average grant-date fair value per share, Outstanding beginning balance | $ 26.25 | $ 26.25 | |||||
Weighted average grant-date fair value per share, Granted | 26.32 | ||||||
Weighted average grant-date fair value per share, vested | 19.04 | ||||||
Weighted average grant-date fair value per share, Outstanding ending balance | $ 26.84 | $ 26.25 | $ 26.84 | $ 26.25 | |||
Weighted average remaining contractual term in months | 8 months | 7 months 3 days | |||||
Part B Restricted Stock Units [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of RSUs, Outstanding beginning balance | 1,249,873 | 1,249,873 | |||||
Number of RSUs, Granted | 282,074 | 272,813 | 316,353 | 359,658 | 575,660 | 554,887 | |
Number of RSUs, Vested | (915,177) | ||||||
Number of RSUs, Forfeited | (58,976) | ||||||
Number of RSUs, Outstanding ending balance | 830,607 | 1,249,873 | 830,607 | 1,249,873 | |||
Weighted average grant-date fair value per share, Outstanding beginning balance | $ 42.91 | $ 42.91 | |||||
Weighted average grant-date fair value per share, Granted | $ 18.0800 | $ 17.8300 | $ 27.10 | $ 24.36 | $ 63.12 | 17.96 | |
Weighted average grant-date fair value per share, vested | 48.74 | ||||||
Weighted average grant-date fair value per share, Forfeited | 21.97 | ||||||
Weighted average grant-date fair value per share, Outstanding ending balance | $ 21.30 | $ 42.91 | $ 21.30 | $ 42.91 | |||
Weighted average remaining contractual term in months | 5 months 27 days | 5 months 15 days |
Stock-Based Compensation (Su110
Stock-Based Compensation (Summary Of Part B RSUs Granted, Maximum Eligible Shares Of Stock And Grant Date Fair Value Per Part B RSU) (Details) - Part B Restricted Stock Units [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of RSUs, Granted | 282,074 | 272,813 | 316,353 | 359,658 | 575,660 | 554,887 |
Shares authorized | 1,449,860 | 1,426,812 | 1,490,023 | 1,388,280 | 2,222,048 | 1,449,860 |
Weighted average grant-date fair value per share, Granted | $ 18.0800 | $ 17.8300 | $ 27.10 | $ 24.36 | $ 63.12 | $ 17.96 |
Fair Value Measurements (Nar111
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Carrying value of the notes | $ 3,666.3 | $ 3,666.3 | $ 3,668.7 | $ 3,150.8 | |||
Hypothetical annual interest expense | 16.4 | 16.5 | |||||
Hypothetical increase to interest rate swap fair value | 9.5 | $ 9.5 | $ 7.3 | ||||
Interest Rate Swap [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Hypothetical interest rate increase | 100.00% | 1.00% | |||||
Change in fair value of interest rate swap | 1 | $ 1.5 | $ 0.6 | $ (0.5) | $ 2.1 | 4.6 | $ 2.6 |
Term Loan Facility due 2021 [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Carrying value of the notes | 1,620.2 | $ 1,620.2 | $ 1,627 | 1,990.2 | |||
Hypothetical interest rate increase | 1.00% | 1.00% | |||||
Term Loan Facility due 2021 [Member] | LIBOR [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Floor rate | 1.00% | 1.00% | |||||
Revolver interest rate | 2.75% | 2.75% | |||||
Notes [Member] | |||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||
Carrying value of the notes | 2,112.3 | $ 2,112.3 | $ 2,112.7 | 1,250 | |||
Fair value of the notes | $ 2,034 | $ 2,034 | $ 2,109.3 | $ 1,294.8 |
Commitments and Contingencie112
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 |
Commitments And Contingencies Disclosure [Abstract] | ||
Purchase commitments | $ 241.2 | $ 226.4 |
Related Party Transactions (113
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | Dec. 15, 2014 | Jul. 02, 2012 | Jun. 28, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Related Party Transaction [Line Items] | |||||||||
Due from related parties | $ 0.5 | $ 0.5 | $ 0.6 | $ 0.9 | |||||
10.125% Senior Notes due 2020 [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Maturity date | 2,020 | ||||||||
10.125% Senior Notes due 2020 [Member] | Unsecured Debt [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Maturity date | 2,020 | 2,020 | 2,020 | ||||||
Zayo Group, LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Due from related parties | (4.1) | $ (4.1) | $ (1.3) | $ 0.3 | |||||
O V S [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Due from related parties | $ 0.5 | $ 0.5 | 0.6 | 0.1 | |||||
CII [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of common stock outstanding | 4.00% | 4.00% | |||||||
Matt Erickson [Member] | 10.125% Senior Notes due 2020 [Member] | Unsecured Debt [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount due to related parties | $ 0.6 | $ 0.4 | $ 0.4 | ||||||
Maturity date | 2,020 | ||||||||
Redemption of notes to related party | $ 0.2 | ||||||||
Dan Caruso [Member] | Aircraft Reimbursement [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payable to related party settled | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.6 | $ 0.7 | $ 0.1 |
Segment Reporting (Summary o114
Segment Reporting (Summary of Financial Information by Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | $ 369.6 | $ 361.9 | [1] | $ 323.9 | [1] | $ 298.1 | [2],[3] | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | [1] | $ 1,129.7 | [2] | $ 1,011 | |||
Segment Adjusted EBITDA | 218.9 | 189.7 | 434.3 | 372.7 | 782.6 | 660.3 | 560.5 | |||||||||||||
Total assets | 6,273.1 | 6,094 | 4,988.8 | 4,980.9 | 6,273.1 | 4,988.8 | 6,094 | 4,980.9 | 4,152.1 | |||||||||||
Capital expenditures | 172.4 | 129.5 | 331.6 | 244.8 | 530.4 | 360.8 | 323.3 | |||||||||||||
Zayo Group, LLC [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 279 | 256 | 552.9 | 507.5 | 1,040.1 | 956.5 | 876.4 | |||||||||||||
Total assets | 5,987.1 | 5,868.3 | 4,726.3 | 5,987.1 | 5,868.3 | 4,726.3 | ||||||||||||||
Capital expenditures | 283.7 | 207.9 | ||||||||||||||||||
Reportable Segments [Member] | Dark Fiber Solutions [ Member ] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 137.7 | 272.7 | 531.3 | 419.8 | 358.8 | |||||||||||||||
Segment Adjusted EBITDA | 99.1 | 195.7 | 364.3 | 288.2 | 250.7 | |||||||||||||||
Total assets | 3,078.3 | 2,848.9 | 2,714.6 | 3,078.3 | 2,848.9 | 2,714.6 | 2,213.2 | |||||||||||||
Capital expenditures | 109.2 | 69.7 | 202.7 | 127.8 | 279.7 | 181 | 165.8 | |||||||||||||
Reportable Segments [Member] | Network Connectivity [ Member ] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 168.7 | 335.7 | 648 | 606.2 | 570.5 | |||||||||||||||
Segment Adjusted EBITDA | 89.9 | 178.6 | 339.2 | 326.7 | 278.3 | |||||||||||||||
Total assets | 1,900.7 | 1,807.7 | 1,739.1 | 1,900.7 | 1,807.7 | 1,739.1 | 1,685.5 | |||||||||||||
Capital expenditures | 48.1 | 52.5 | 94.8 | 98.8 | 195.1 | 151.6 | 143 | |||||||||||||
Reportable Segments [Member] | Colocation and Cloud Infrastructure [ Member ] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 58.5 | 27 | 116.8 | 53.9 | 144.6 | 75.6 | 54.2 | |||||||||||||
Segment Adjusted EBITDA | 29 | 13.4 | 57.4 | 26.7 | 73.7 | 37.4 | 25.4 | |||||||||||||
Total assets | 1,027.2 | 1,013.7 | 250.1 | 157.9 | 1,027.2 | 250.1 | 1,013.7 | 157.9 | 98.3 | |||||||||||
Capital expenditures | 15.1 | 7.3 | 34.1 | 18.2 | 55.4 | 28.2 | 14.5 | |||||||||||||
Reportable Segments [Member] | Other [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | 4.7 | 5.5 | 11.2 | 23.2 | 28.1 | 27.8 | ||||||||||||||
Segment Adjusted EBITDA | 0.9 | 1.1 | 2.6 | 5.3 | 8 | 6.2 | ||||||||||||||
Total assets | 34.4 | 35 | 36.1 | 43.1 | 34.4 | 36.1 | 35 | 43.1 | 32.4 | |||||||||||
Capital expenditures | 0.2 | |||||||||||||||||||
Corporate/eliminations [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Revenue from external customers | (0.3) | |||||||||||||||||||
Segment Adjusted EBITDA | (0.1) | |||||||||||||||||||
Total assets | $ 232.5 | $ 388.7 | $ 284.2 | $ 326.2 | $ 232.5 | $ 284.2 | $ 388.7 | $ 326.2 | $ 122.7 | |||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Segment Reporting (Reconcili115
Segment Reporting (Reconciliation from Segment Adjusted EBITDA to Net Loss from Continuing Operations) (Details) - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2],[3] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [4],[5] | Mar. 31, 2014 | [4],[6] | Dec. 31, 2013 | [4],[7],[8] | Sep. 30, 2013 | [4] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Total Segment Adjusted EBITDA | $ 218.9 | $ 189.7 | $ 434.3 | $ 372.7 | $ 782.6 | $ 660.3 | $ 560.5 | ||||||||||||||||||
Interest expense | (51.2) | (53.4) | (105) | (100.3) | (214) | (203.5) | (202.5) | ||||||||||||||||||
Depreciation and amortization expense | (113.7) | $ (113.2) | $ (100.1) | (96.9) | [1] | $ (96) | $ (91.3) | $ (84.2) | $ (81.7) | $ (81) | (230.8) | (192.9) | (406.2) | [1] | (338.2) | [4] | (324.5) | ||||||||
Transaction costs | (3.3) | (1.3) | (3.3) | (4.6) | (5.9) | (4.5) | (14.2) | ||||||||||||||||||
Stock-based compensation | (42.9) | 6 | (89) | (117.1) | (200.7) | (253.7) | (105.8) | ||||||||||||||||||
Loss on extinguishment of debt | $ (65) | (8.5) | [9] | (54.9) | [9] | (30.9) | [1],[9] | (1.9) | [10] | (30.9) | (94.3) | [1],[9] | (1.9) | [4],[10] | (77.3) | ||||||||||
Unrealized foreign currency loss | (7.1) | (13.3) | (17.8) | (27.9) | (24.4) | 4.7 | 0.1 | ||||||||||||||||||
Non-cash loss on investments | (0.4) | (0.5) | (0.6) | (0.5) | (0.9) | ||||||||||||||||||||
Loss before income taxes | $ 0.3 | $ 9.8 | $ (72.1) | $ (0.6) | [1] | $ (100.9) | $ (59.5) | $ (31.5) | $ (27.6) | $ (18.2) | $ (12.2) | $ (101.5) | $ (163.8) | [1] | $ (136.8) | [4] | $ (163.7) | ||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[9] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[10] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
Condensed Consolidating Fina116
Condensed Consolidating Financial Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | May. 06, 2015 | Jun. 30, 2014 |
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | $ 3,744.1 | $ 3,752.4 | $ 3,260.8 | |
10.125% Senior Notes due 2020 [Member] | Unsecured Debt [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | 325.6 | 325.6 | $ 500 | |
6.00% Senior Notes due 2023 [Member] | Unsecured Debt [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | 1,430 | 1,430 | ||
6.375% Senior Notes due 2025 [Member] | Unsecured Debt [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Debt obligations | $ 350 | $ 350 | $ 344.5 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) CAD in Millions, $ in Millions | Jan. 15, 2016USD ($)itemmi | Jan. 15, 2016CADitemmi | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jan. 15, 2016CAD |
Subsequent Event [Line Items] | ||||||||
Net consideration paid | $ | $ 117.7 | $ 126.5 | $ 855.7 | $ 393.3 | $ 2,480.7 | |||
Zayo Group, LLC [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Net consideration paid | $ | $ 0.1 | $ 113.5 | $ 83.2 | $ 2,489 | ||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Amended term loan facility | $ | $ 400 | |||||||
Term loan priced percent | 99.00% | 99.00% | ||||||
Subsequent Event [Member] | LIBOR [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolver interest rate | 3.50% | 3.50% | ||||||
Interest rate | 1.00% | 1.00% | ||||||
Subsequent Event [Member] | Allstream Inc [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Business Acquisition Percentage Of Voting Interests Acquired | 100.00% | 100.00% | ||||||
Net consideration paid | $ 298 | CAD 427 | ||||||
Working capital and other liabilities assumed in the acquisition | $ 26 | CAD 38 | ||||||
Long-haul network | 12,500 | 12,500 | ||||||
Metro fiber network | 5,500 | 5,500 | ||||||
Network concentrating net buildings | 3,300 | 3,300 | ||||||
Number of Canada's metropolitan markets | item | 5 | 5 | ||||||
Subsequent Event [Member] | Allstream Inc [Member] | Minimum [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Additional Route Miles Acquired | 18,000 | 18,000 |
Acquisitions (Schedule of Acqui
Acquisitions (Schedule of Acquisition) (Details) € in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Feb. 25, 2015USD ($) | Feb. 23, 2015USD ($) | Feb. 23, 2015USD ($) | Jan. 06, 2015USD ($) | Jan. 03, 2015 | Jan. 01, 2015USD ($) | Jul. 03, 2014USD ($) | Jul. 03, 2014EUR (€) | Jul. 01, 2014USD ($) | Jul. 01, 2014EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||
Goodwill | $ 1,222.2 | $ 1,222.2 | $ 1,224.4 | $ 866.7 | $ 688.8 | ||||||||||||
Net consideration paid | 117.7 | $ 126.5 | $ 855.7 | 393.3 | 2,480.7 | ||||||||||||
Viatel [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Dec. 31, 2015 | Dec. 31, 2015 | |||||||||||||||
Cash | $ 5.3 | 5.3 | |||||||||||||||
Other current assets | 7.5 | 7.5 | |||||||||||||||
Property and equipment | 127.2 | 127.2 | |||||||||||||||
Intangibles | 24.8 | 24.8 | |||||||||||||||
Goodwill | 12.1 | 12.1 | |||||||||||||||
Total assets acquired | 176.9 | 176.9 | |||||||||||||||
Current liabilities | 14.4 | 14.4 | |||||||||||||||
Deferred revenue | 46.6 | 46.6 | |||||||||||||||
Deferred tax liability, net | 9.6 | 9.6 | |||||||||||||||
Total liabilities assumed | 70.6 | 70.6 | |||||||||||||||
Net assets acquired | 106.3 | 106.3 | |||||||||||||||
Less cash acquired | (5.3) | (5.3) | |||||||||||||||
Net consideration paid | 101 | € 92.6 | 101 | ||||||||||||||
Dallas Data Center [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Property and equipment | 14.9 | 14.9 | |||||||||||||||
Intangibles | 1.8 | 1.8 | |||||||||||||||
Total assets acquired | 16.7 | 16.7 | |||||||||||||||
Net assets acquired | 16.7 | 16.7 | |||||||||||||||
Net consideration paid | 16.7 | 16.7 | |||||||||||||||
Atlanta NAP [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | |||||||||||||||
Other current assets | $ 0.2 | ||||||||||||||||
Property and equipment | 7 | ||||||||||||||||
Intangibles | 21 | ||||||||||||||||
Goodwill | 25.2 | ||||||||||||||||
Total assets acquired | 53.4 | ||||||||||||||||
Current liabilities | 1.5 | ||||||||||||||||
Total liabilities assumed | 1.5 | ||||||||||||||||
Net assets acquired | 51.9 | ||||||||||||||||
Net consideration paid | 51.9 | ||||||||||||||||
Neo Telecoms [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | Jul. 1, 2014 | ||||||||||||||
Cash | 4.2 | ||||||||||||||||
Other current assets | 9.5 | ||||||||||||||||
Property and equipment | 31.3 | ||||||||||||||||
Intangibles | 26.4 | ||||||||||||||||
Goodwill | 32.5 | ||||||||||||||||
Other assets | 2.3 | ||||||||||||||||
Total assets acquired | 106.2 | ||||||||||||||||
Current liabilities | 13.5 | ||||||||||||||||
Deferred revenue | 3.7 | ||||||||||||||||
Deferred tax liability, net | 7.6 | ||||||||||||||||
Other liabilities | 3.3 | ||||||||||||||||
Total liabilities assumed | 28.1 | ||||||||||||||||
Net assets acquired | 78.1 | ||||||||||||||||
Less cash acquired | (4.2) | ||||||||||||||||
Net consideration paid | $ 73.9 | € 54.1 | $ 73.9 | € 54.1 | 73.9 | $ 73.9 | |||||||||||
Ideatek Systems, Inc., | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Jan. 1, 2015 | Jan. 1, 2015 | Jan. 1, 2015 | ||||||||||||||
Other current assets | $ 0.8 | ||||||||||||||||
Property and equipment | 32.3 | ||||||||||||||||
Deferred tax assets, net | 3.1 | ||||||||||||||||
Intangibles | 7.6 | ||||||||||||||||
Goodwill | 39 | ||||||||||||||||
Total assets acquired | 82.8 | ||||||||||||||||
Current liabilities | 4.4 | ||||||||||||||||
Deferred revenue | 25.7 | ||||||||||||||||
Total liabilities assumed | 30.1 | ||||||||||||||||
Net assets acquired | 52.7 | ||||||||||||||||
Net consideration paid | $ 52.7 | $ 52.7 | $ 52.7 | ||||||||||||||
Latisys Holdings, LLC | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition date | Feb. 23, 2015 | Feb. 23, 2015 | Feb. 23, 2015 | ||||||||||||||
Cash | $ 9.4 | $ 9.4 | |||||||||||||||
Other current assets | 17.2 | 17.2 | |||||||||||||||
Property and equipment | 222.9 | 222.9 | |||||||||||||||
Deferred tax assets, net | 0.4 | 0.4 | |||||||||||||||
Intangibles | 250.2 | 250.2 | |||||||||||||||
Goodwill | 274.7 | 274.7 | |||||||||||||||
Other assets | 5 | 5 | |||||||||||||||
Total assets acquired | 779.8 | 779.8 | |||||||||||||||
Current liabilities | 10 | 10 | |||||||||||||||
Deferred revenue | 3.1 | 3.1 | |||||||||||||||
Deferred tax liability, net | 79.5 | 79.5 | |||||||||||||||
Total liabilities assumed | 92.6 | 92.6 | |||||||||||||||
Net assets acquired | 687.2 | 687.2 | |||||||||||||||
Less cash acquired | (9.4) | (9.4) | |||||||||||||||
Net consideration paid | $ 677.5 | $ 677.5 | $ 677.8 | $ 677.5 | |||||||||||||
Zayo Group, LLC [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Goodwill | $ 762.5 | $ 762.5 | 762.2 | 683.5 | |||||||||||||
Net consideration paid | $ 0.1 | $ 113.5 | $ 83.2 | $ 2,489 |
Acquisitions (Schedule of Pro-F
Acquisitions (Schedule of Pro-Forma Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combinations [Abstract] | ||||||
Revenue | $ 374.7 | $ 357.6 | $ 746.6 | $ 710.8 | $ 1,420.2 | $ 1,329.6 |
Net loss | $ (11.9) | $ (6.6) | $ (28.3) | $ (127.7) | $ (182.4) | $ (221.5) |
Acquisitions (Schedule of Ac120
Acquisitions (Schedule of Acquisition) (Detail) € in Millions, £ in Millions, $ in Millions | Feb. 25, 2015USD ($) | Feb. 23, 2015USD ($) | Feb. 23, 2015USD ($) | Jan. 06, 2015USD ($) | Jan. 03, 2015 | Jan. 01, 2015USD ($) | Jul. 03, 2014USD ($) | Jul. 03, 2014EUR (€) | Jul. 01, 2014USD ($) | Jul. 01, 2014EUR (€) | May. 16, 2014USD ($) | May. 16, 2014GBP (£) | Mar. 04, 2014USD ($) | Oct. 02, 2013USD ($) | Oct. 01, 2013USD ($) | Aug. 01, 2013USD ($) | May. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 14, 2012USD ($) | Oct. 01, 2012USD ($) | Aug. 31, 2012USD ($) | Jul. 02, 2012USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Goodwill | $ 1,222.2 | $ 1,224.4 | $ 866.7 | $ 688.8 | |||||||||||||||||||||||
Net consideration paid | $ 117.7 | $ 126.5 | $ 855.7 | 393.3 | 2,480.7 | ||||||||||||||||||||||
Atlanta NAP [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | Jul. 1, 2014 | ||||||||||||||||||||||||
Other current assets | $ 0.2 | ||||||||||||||||||||||||||
Property and equipment | 7 | ||||||||||||||||||||||||||
Intangibles | 21 | ||||||||||||||||||||||||||
Goodwill | 25.2 | ||||||||||||||||||||||||||
Total assets acquired | 53.4 | ||||||||||||||||||||||||||
Current liabilities | 1.5 | ||||||||||||||||||||||||||
Total liabilities assumed | 1.5 | ||||||||||||||||||||||||||
Net assets acquired | 51.9 | ||||||||||||||||||||||||||
Net consideration paid | $ 51.9 | ||||||||||||||||||||||||||
Neo Telecoms [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Jul. 1, 2014 | Jul. 1, 2014 | Jul. 1, 2014 | ||||||||||||||||||||||||
Cash | 4.2 | ||||||||||||||||||||||||||
Other current assets | 9.5 | ||||||||||||||||||||||||||
Property and equipment | 31.3 | ||||||||||||||||||||||||||
Intangibles | 26.4 | ||||||||||||||||||||||||||
Goodwill | 32.5 | ||||||||||||||||||||||||||
Other assets | 2.3 | ||||||||||||||||||||||||||
Total assets acquired | 106.2 | ||||||||||||||||||||||||||
Current liabilities | 13.5 | ||||||||||||||||||||||||||
Deferred revenue | 3.7 | ||||||||||||||||||||||||||
Deferred tax liability, net | 7.6 | ||||||||||||||||||||||||||
Other liabilities | 3.3 | ||||||||||||||||||||||||||
Total liabilities assumed | 28.1 | ||||||||||||||||||||||||||
Net assets acquired | 78.1 | ||||||||||||||||||||||||||
Less cash acquired | (4.2) | ||||||||||||||||||||||||||
Net consideration paid | $ 73.9 | € 54.1 | $ 73.9 | € 54.1 | $ 73.9 | $ 73.9 | |||||||||||||||||||||
Ideatek Systems, Inc., [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Jan. 1, 2015 | Jan. 1, 2015 | Jan. 1, 2015 | ||||||||||||||||||||||||
Other current assets | $ 0.8 | ||||||||||||||||||||||||||
Property and equipment | 32.3 | ||||||||||||||||||||||||||
Deferred tax assets, net | 3.1 | ||||||||||||||||||||||||||
Intangibles | 7.6 | ||||||||||||||||||||||||||
Goodwill | 39 | ||||||||||||||||||||||||||
Total assets acquired | 82.8 | ||||||||||||||||||||||||||
Current liabilities | 4.4 | ||||||||||||||||||||||||||
Deferred revenue | 25.7 | ||||||||||||||||||||||||||
Total liabilities assumed | 30.1 | ||||||||||||||||||||||||||
Net assets acquired | 52.7 | ||||||||||||||||||||||||||
Net consideration paid | $ 52.7 | $ 52.7 | $ 52.7 | ||||||||||||||||||||||||
Latisys Holdings, LLC [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Feb. 23, 2015 | Feb. 23, 2015 | Feb. 23, 2015 | ||||||||||||||||||||||||
Cash | $ 9.4 | $ 9.4 | |||||||||||||||||||||||||
Other current assets | 17.2 | 17.2 | |||||||||||||||||||||||||
Property and equipment | 222.9 | 222.9 | |||||||||||||||||||||||||
Deferred tax assets, net | 0.4 | 0.4 | |||||||||||||||||||||||||
Intangibles | 250.2 | 250.2 | |||||||||||||||||||||||||
Goodwill | 274.7 | 274.7 | |||||||||||||||||||||||||
Other assets | 5 | 5 | |||||||||||||||||||||||||
Total assets acquired | 779.8 | 779.8 | |||||||||||||||||||||||||
Current liabilities | 10 | 10 | |||||||||||||||||||||||||
Deferred revenue | 3.1 | 3.1 | |||||||||||||||||||||||||
Deferred tax liability, net | 79.5 | 79.5 | |||||||||||||||||||||||||
Total liabilities assumed | 92.6 | 92.6 | |||||||||||||||||||||||||
Net assets acquired | 687.2 | 687.2 | |||||||||||||||||||||||||
Less cash acquired | (9.4) | (9.4) | |||||||||||||||||||||||||
Net consideration paid | $ 677.5 | $ 677.5 | $ 677.8 | $ 677.5 | |||||||||||||||||||||||
Corelink Data Centers, LLC [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Aug. 1, 2013 | Aug. 1, 2013 | |||||||||||||||||||||||||
Cash | $ 0.1 | ||||||||||||||||||||||||||
Other current assets | 0.5 | ||||||||||||||||||||||||||
Property and equipment | 15.9 | ||||||||||||||||||||||||||
Intangibles | 0.2 | ||||||||||||||||||||||||||
Goodwill | 2.9 | ||||||||||||||||||||||||||
Other assets | 0.5 | ||||||||||||||||||||||||||
Total assets acquired | 20.1 | ||||||||||||||||||||||||||
Current liabilities | 0.7 | ||||||||||||||||||||||||||
Deferred revenue | 0.2 | ||||||||||||||||||||||||||
Capital lease obligations | 14.2 | ||||||||||||||||||||||||||
Deferred tax liability, net | 3 | ||||||||||||||||||||||||||
Total liabilities assumed | 18.1 | ||||||||||||||||||||||||||
Net assets acquired | 2 | ||||||||||||||||||||||||||
Less cash acquired | (0.1) | ||||||||||||||||||||||||||
Net consideration paid | 0.3 | ||||||||||||||||||||||||||
Net consideration paid | $ 1.9 | ||||||||||||||||||||||||||
Access Communications, Inc [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Oct. 1, 2013 | Oct. 1, 2013 | |||||||||||||||||||||||||
Cash | $ 1.2 | ||||||||||||||||||||||||||
Other current assets | 2.3 | ||||||||||||||||||||||||||
Property and equipment | 11.5 | ||||||||||||||||||||||||||
Intangibles | 18 | ||||||||||||||||||||||||||
Goodwill | 24 | ||||||||||||||||||||||||||
Total assets acquired | 57 | ||||||||||||||||||||||||||
Current liabilities | 1 | ||||||||||||||||||||||||||
Deferred revenue | 5.1 | ||||||||||||||||||||||||||
Deferred tax liability, net | 9.6 | ||||||||||||||||||||||||||
Total liabilities assumed | 15.7 | ||||||||||||||||||||||||||
Net assets acquired | 41.3 | ||||||||||||||||||||||||||
Less cash acquired | (1.2) | ||||||||||||||||||||||||||
Net consideration paid | $ 40.1 | 40.1 | |||||||||||||||||||||||||
Fiberlink, LLC [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Oct. 2, 2013 | Oct. 2, 2013 | |||||||||||||||||||||||||
Other current assets | $ 0.8 | ||||||||||||||||||||||||||
Property and equipment | 15.9 | ||||||||||||||||||||||||||
Deferred tax assets, net | 7.7 | ||||||||||||||||||||||||||
Intangibles | 19.3 | ||||||||||||||||||||||||||
Goodwill | 19.8 | ||||||||||||||||||||||||||
Other assets | 0.1 | ||||||||||||||||||||||||||
Total assets acquired | 63.6 | ||||||||||||||||||||||||||
Current liabilities | 1.3 | ||||||||||||||||||||||||||
Deferred revenue | 19.2 | ||||||||||||||||||||||||||
Total liabilities assumed | 20.5 | ||||||||||||||||||||||||||
Net assets acquired | 43.1 | ||||||||||||||||||||||||||
Net consideration paid | $ 43.1 | 43.1 | |||||||||||||||||||||||||
CoreXchange [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Mar. 4, 2014 | Apr. 3, 2014 | |||||||||||||||||||||||||
Other current assets | $ 0.6 | ||||||||||||||||||||||||||
Property and equipment | 3.1 | ||||||||||||||||||||||||||
Deferred tax assets, net | 0.2 | ||||||||||||||||||||||||||
Intangibles | 11 | ||||||||||||||||||||||||||
Goodwill | 3.4 | ||||||||||||||||||||||||||
Total assets acquired | 18.3 | ||||||||||||||||||||||||||
Current liabilities | 0.5 | ||||||||||||||||||||||||||
Deferred revenue | 0.4 | ||||||||||||||||||||||||||
Capital lease obligations | 0.2 | ||||||||||||||||||||||||||
Total liabilities assumed | 1.1 | ||||||||||||||||||||||||||
Net assets acquired | 17.2 | ||||||||||||||||||||||||||
Net consideration paid | $ 17.2 | $ (0.3) | 17.5 | ||||||||||||||||||||||||
Geo Networks Limited [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | May 16, 2014 | May 16, 2014 | May 16, 2014 | ||||||||||||||||||||||||
Cash | $ 13.7 | ||||||||||||||||||||||||||
Other current assets | 8.8 | ||||||||||||||||||||||||||
Property and equipment | 220.4 | ||||||||||||||||||||||||||
Intangibles | 60.8 | ||||||||||||||||||||||||||
Goodwill | 113.8 | ||||||||||||||||||||||||||
Other assets | 9.8 | ||||||||||||||||||||||||||
Total assets acquired | 427.3 | ||||||||||||||||||||||||||
Current liabilities | 34.8 | ||||||||||||||||||||||||||
Deferred revenue | 45.1 | ||||||||||||||||||||||||||
Deferred tax liability, net | 38.2 | ||||||||||||||||||||||||||
Other liabilities | 3.2 | ||||||||||||||||||||||||||
Total liabilities assumed | 121.3 | ||||||||||||||||||||||||||
Net assets acquired | 306 | ||||||||||||||||||||||||||
Less cash acquired | (13.7) | ||||||||||||||||||||||||||
Net consideration paid | $ 292.3 | £ 174.3 | $ 292.3 | ||||||||||||||||||||||||
Abovenet, Inc [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Jul. 2, 2012 | Jul. 2, 2012 | |||||||||||||||||||||||||
Cash | $ 141.6 | ||||||||||||||||||||||||||
Other current assets | 46.5 | ||||||||||||||||||||||||||
Property and equipment | 1,477.3 | ||||||||||||||||||||||||||
Deferred tax assets, net | 42.1 | ||||||||||||||||||||||||||
Intangibles | 480.4 | ||||||||||||||||||||||||||
Goodwill | 381.6 | ||||||||||||||||||||||||||
Other assets | 12.6 | ||||||||||||||||||||||||||
Total assets acquired | 2,582.1 | ||||||||||||||||||||||||||
Current liabilities | 78.4 | ||||||||||||||||||||||||||
Deferred revenue | 146 | ||||||||||||||||||||||||||
Other liabilities | 6.1 | ||||||||||||||||||||||||||
Total liabilities assumed | 230.5 | ||||||||||||||||||||||||||
Net assets acquired | 2,351.6 | ||||||||||||||||||||||||||
Less cash acquired | (141.6) | ||||||||||||||||||||||||||
Net consideration paid | $ 2,210 | 2,210 | |||||||||||||||||||||||||
FiberGate [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Aug. 31, 2012 | Aug. 31, 2012 | |||||||||||||||||||||||||
Cash | $ 2.3 | ||||||||||||||||||||||||||
Other current assets | 4.9 | ||||||||||||||||||||||||||
Property and equipment | 59 | ||||||||||||||||||||||||||
Intangibles | 35.9 | ||||||||||||||||||||||||||
Goodwill | 53.8 | ||||||||||||||||||||||||||
Total assets acquired | 155.9 | ||||||||||||||||||||||||||
Current liabilities | 1.5 | ||||||||||||||||||||||||||
Deferred revenue | 2.5 | ||||||||||||||||||||||||||
Deferred tax liability, net | 31.3 | ||||||||||||||||||||||||||
Total liabilities assumed | 35.3 | ||||||||||||||||||||||||||
Net assets acquired | 120.6 | ||||||||||||||||||||||||||
Less cash acquired | (2.3) | ||||||||||||||||||||||||||
Net consideration paid | $ 118.3 | 118.3 | |||||||||||||||||||||||||
USCarrier Telecom, LLC [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Oct. 1, 2012 | Oct. 1, 2012 | |||||||||||||||||||||||||
Other current assets | $ 1.3 | ||||||||||||||||||||||||||
Property and equipment | 19.4 | ||||||||||||||||||||||||||
Deferred tax assets, net | 2 | ||||||||||||||||||||||||||
Intangibles | 6.8 | ||||||||||||||||||||||||||
Goodwill | 5.4 | ||||||||||||||||||||||||||
Total assets acquired | 34.9 | ||||||||||||||||||||||||||
Current liabilities | 3.7 | ||||||||||||||||||||||||||
Deferred revenue | 2.2 | ||||||||||||||||||||||||||
Total liabilities assumed | 5.9 | ||||||||||||||||||||||||||
Net assets acquired | 28.9 | ||||||||||||||||||||||||||
Cost method investment in USCarrier | (12.8) | ||||||||||||||||||||||||||
Net consideration paid | $ 16.1 | 16.1 | |||||||||||||||||||||||||
First Telecom Services, LLC [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Dec. 14, 2012 | Dec. 14, 2012 | |||||||||||||||||||||||||
Other current assets | $ 5.9 | ||||||||||||||||||||||||||
Property and equipment | 63.5 | ||||||||||||||||||||||||||
Deferred tax assets, net | 19.2 | ||||||||||||||||||||||||||
Intangibles | 17.1 | ||||||||||||||||||||||||||
Goodwill | 48.4 | ||||||||||||||||||||||||||
Other assets | 0.1 | ||||||||||||||||||||||||||
Total assets acquired | 154.2 | ||||||||||||||||||||||||||
Current liabilities | 4.6 | ||||||||||||||||||||||||||
Deferred revenue | 39.9 | ||||||||||||||||||||||||||
Total liabilities assumed | 44.5 | ||||||||||||||||||||||||||
Net assets acquired | 109.7 | ||||||||||||||||||||||||||
Net consideration paid | $ 109.7 | 109.7 | |||||||||||||||||||||||||
Litecast/Balticore, LLC [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | Dec. 14, 2012 | Dec. 31, 2012 | |||||||||||||||||||||||||
Other current assets | $ 0.3 | ||||||||||||||||||||||||||
Property and equipment | 0.4 | ||||||||||||||||||||||||||
Intangibles | 12.5 | ||||||||||||||||||||||||||
Goodwill | 9.9 | ||||||||||||||||||||||||||
Total assets acquired | 23.1 | ||||||||||||||||||||||||||
Current liabilities | 0.2 | ||||||||||||||||||||||||||
Deferred revenue | 0.7 | ||||||||||||||||||||||||||
Total liabilities assumed | 0.9 | ||||||||||||||||||||||||||
Net assets acquired | 22.2 | ||||||||||||||||||||||||||
Net consideration paid | $ 22.2 | $ 22.2 | 22.2 | ||||||||||||||||||||||||
Core NAP, LP [Member] | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||
Acquisition date | May 31, 2013 | May 31, 2013 | |||||||||||||||||||||||||
Other current assets | $ 0.2 | ||||||||||||||||||||||||||
Property and equipment | 2.5 | ||||||||||||||||||||||||||
Intangibles | 4.1 | ||||||||||||||||||||||||||
Goodwill | 1 | ||||||||||||||||||||||||||
Total assets acquired | 7.8 | ||||||||||||||||||||||||||
Current liabilities | 0.5 | ||||||||||||||||||||||||||
Other liabilities | 0.2 | ||||||||||||||||||||||||||
Total liabilities assumed | 0.7 | ||||||||||||||||||||||||||
Net assets acquired | 7.1 | ||||||||||||||||||||||||||
Net consideration paid | $ 7.1 | $ 7.1 |
Goodwill (Schedule Of Goodwill)
Goodwill (Schedule Of Goodwill) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | |||
Goodwill, beginning Balance | $ 1,224.4 | $ 866.7 | $ 688.8 |
Fiscal Acquisitions | (12.1) | (376.3) | (163.9) |
Adjustments to acquisitions | 4.8 | ||
Foreign Currency Translation and Other | (9.5) | (18.6) | 14 |
Goodwill, ending balance | 1,222.2 | 1,224.4 | 866.7 |
Dark Fiber [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 299.1 | 293.3 | 193.3 |
Fiscal Acquisitions | (5.3) | (16) | (97.4) |
Foreign Currency Translation and Other | (5.8) | (10.2) | 2.6 |
Goodwill, ending balance | 298.6 | 299.1 | 293.3 |
Waves [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 265.6 | 269 | 215.9 |
Fiscal Acquisitions | (2.3) | (1.4) | (49.6) |
Foreign Currency Translation and Other | (3.1) | (4.8) | 3.5 |
Goodwill, ending balance | 264.8 | 265.6 | 269 |
Sonet [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 50.3 | 50.3 | 50.3 |
Fiscal Acquisitions | (1.5) | 0 | 0 |
Foreign Currency Translation and Other | 0 | 0 | |
Goodwill, ending balance | 51.8 | 50.3 | 50.3 |
Ethernet [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 104.2 | 96.7 | 91.7 |
Fiscal Acquisitions | (1.3) | (8.2) | (4.9) |
Foreign Currency Translation and Other | (0.1) | (0.7) | 0.1 |
Goodwill, ending balance | 105.4 | 104.2 | 96.7 |
IP [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 86.3 | 80.5 | 80.1 |
Fiscal Acquisitions | (0.2) | (6.8) | (0.2) |
Foreign Currency Translation and Other | (0.2) | (1) | 0.2 |
Goodwill, ending balance | 86.3 | 86.3 | 80.5 |
MIG [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 73.4 | 43.7 | 38.3 |
Fiscal Acquisitions | (29.8) | (5.4) | |
Adjustments to acquisitions | (0.3) | ||
Foreign Currency Translation and Other | (0.1) | ||
Goodwill, ending balance | 73.7 | 73.4 | 43.7 |
zColo [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 273.2 | 18.6 | 11.9 |
Fiscal Acquisitions | (1.5) | (256) | (6.4) |
Adjustments to acquisitions | 5.1 | ||
Foreign Currency Translation and Other | (0.2) | (1.4) | 0.3 |
Goodwill, ending balance | 269.4 | 273.2 | 18.6 |
Cloud [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 57 | ||
Fiscal Acquisitions | (57.2) | ||
Foreign Currency Translation and Other | (0.1) | (0.2) | |
Goodwill, ending balance | 56.9 | 57 | |
Other [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 15.3 | 14.6 | 7.3 |
Fiscal Acquisitions | (0.9) | ||
Foreign Currency Translation and Other | (0.2) | 7.3 | |
Goodwill, ending balance | $ 15.3 | $ 15.3 | $ 14.6 |
Acquisitions (Schedule of Defer
Acquisitions (Schedule of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Feb. 23, 2015 | Jun. 30, 2014 | May. 16, 2014 | Jul. 02, 2012 |
Deferred income tax assets: | |||||
Net operating loss carryforwards | $ 434 | $ 415.6 | |||
Deferred revenue | 243.5 | 190.7 | |||
Allowance for doubtful accounts | 10.2 | 6.4 | |||
Other | 17.4 | 2.1 | |||
Total deferred income tax assets | 755.8 | 651.1 | |||
Deferred income tax liabilities: | |||||
Property and equipment | (468.9) | (374.4) | |||
Intangible assets | (327.2) | (239.3) | |||
Total deferred income tax liabilities | (814.9) | (640.9) | |||
Net deferred income tax assets/(liabilities) | (60.2) | $ 8 | |||
Latisys Holdings, LLC [Member] | |||||
Deferred income tax assets: | |||||
Net operating loss carryforwards | $ 49.9 | ||||
Deferred revenue | 1.1 | ||||
Accrued expenses | 0.1 | ||||
Allowance for doubtful accounts | 0.3 | ||||
Other | 0.4 | ||||
Total deferred income tax assets | 51.8 | ||||
Deferred income tax liabilities: | |||||
Property and equipment | (42.3) | ||||
Intangible assets | (93.1) | ||||
Total deferred income tax liabilities | (135.4) | ||||
Net deferred income tax assets/(liabilities) | (83.6) | $ (83.6) | |||
Geo Networks Limited [Member] | |||||
Deferred income tax assets: | |||||
Net operating loss carryforwards | $ 2.5 | ||||
Deferred revenue | 4.4 | ||||
Total deferred income tax assets | 6.9 | ||||
Deferred income tax liabilities: | |||||
Property and equipment | (32.9) | ||||
Intangible assets | (12.2) | ||||
Total deferred income tax liabilities | (45.1) | ||||
Net deferred income tax assets/(liabilities) | (38.2) | $ (38.2) | |||
Abovenet, Inc [Member] | |||||
Deferred income tax assets: | |||||
Net operating loss carryforwards | $ 405.3 | ||||
Deferred revenue | 49.1 | ||||
Accrued expenses | 12.2 | ||||
Allowance for doubtful accounts | 2.5 | ||||
Total deferred income tax assets | 469.1 | ||||
Deferred income tax liabilities: | |||||
Property and equipment | (250) | ||||
Intangible assets | (177) | ||||
Total deferred income tax liabilities | (427) | ||||
Net deferred income tax assets/(liabilities) | $ 42.1 | $ 42.1 |
Acquisitions (Schedule of Finan
Acquisitions (Schedule of Financial Statement Caption Impacted by the Purchase Accounting Adjustments) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Current assets | ||||||
Trade receivables, net | $ 73.9 | $ 88 | $ 57.2 | |||
Prepaid expenses | 33.8 | 37.3 | 24.9 | |||
Deferred income taxes, net | 129.8 | 129.5 | ||||
Total current assets | 419.4 | 567.3 | 543.8 | |||
Property and equipment, net | 3,626.1 | 3,299.2 | 2,822.4 | |||
Intangible assets, net | 933 | 948.3 | 710.3 | |||
Goodwill | 1,222.2 | 1,224.4 | 866.7 | $ 688.8 | ||
Other assets | 72.4 | 54.8 | 37.7 | |||
Total assets | 6,273.1 | 6,094 | $ 4,988.8 | 4,980.9 | $ 4,152.1 | |
Current liabilities | ||||||
Accounts payable | 66.2 | 40 | 26.7 | |||
Accrued liabilities | 182.2 | 182.4 | 172.3 | |||
Total current liabilities | 409.6 | 388.4 | 354.4 | |||
Capital lease obligation, non-current | 30.5 | 28.3 | 25.7 | |||
Deferred revenue, non-current | 727.4 | 612.7 | 501.5 | |||
Deferred income taxes, net | 186.6 | 189.7 | 153 | |||
Total liabilities | $ 5,041.5 | $ 4,899.9 | 4,579.6 | |||
Adjusted Balance [Member] | ||||||
Current assets | ||||||
Trade receivables, net | 57.2 | |||||
Prepaid expenses | 24.9 | |||||
Deferred income taxes, net | 161 | |||||
Total current assets | 243.1 | |||||
Property and equipment, net | 2,822.4 | |||||
Intangible assets, net | 710.3 | |||||
Goodwill | 866.7 | |||||
Other assets | 37.7 | |||||
Total assets | 4,680.2 | |||||
Current liabilities | ||||||
Accounts payable | 26.7 | |||||
Accrued liabilities | 172.3 | |||||
Total current liabilities | 199 | |||||
Capital lease obligation, non-current | 25.7 | |||||
Deferred revenue, non-current | 501.5 | |||||
Deferred income taxes, net | 153 | |||||
Total liabilities | 879.2 | |||||
Previously Reported Balance [Member] | ||||||
Current assets | ||||||
Trade receivables, net | [1] | 59 | ||||
Prepaid expenses | [1] | 25.6 | ||||
Deferred income taxes, net | [1] | 160.4 | ||||
Total current assets | [1] | 245 | ||||
Property and equipment, net | [1] | 2,821.4 | ||||
Intangible assets, net | [1] | 709.7 | ||||
Goodwill | [1] | 845.3 | ||||
Other assets | [1] | 37.8 | ||||
Total assets | [1] | 4,659.2 | ||||
Current liabilities | ||||||
Accounts payable | [1] | 27 | ||||
Accrued liabilities | [1] | 159.6 | ||||
Total current liabilities | [1] | 186.6 | ||||
Capital lease obligation, non-current | [1] | 22.9 | ||||
Deferred revenue, non-current | [1] | 496.9 | ||||
Deferred income taxes, net | [1] | 151.8 | ||||
Total liabilities | [1] | 858.2 | ||||
Purchase Accounting Adjustment [Member] | ||||||
Current assets | ||||||
Trade receivables, net | (1.8) | |||||
Prepaid expenses | (0.7) | |||||
Deferred income taxes, net | 0.6 | |||||
Total current assets | (1.9) | |||||
Property and equipment, net | 1 | |||||
Intangible assets, net | 0.6 | |||||
Goodwill | 21.4 | |||||
Other assets | (0.1) | |||||
Total assets | 21 | |||||
Current liabilities | ||||||
Accounts payable | (0.3) | |||||
Accrued liabilities | 12.7 | |||||
Total current liabilities | 12.4 | |||||
Capital lease obligation, non-current | 2.8 | |||||
Deferred revenue, non-current | 4.6 | |||||
Deferred income taxes, net | 1.2 | |||||
Total liabilities | $ 21 | |||||
[1] | As reported on Form 10-Q filed with the SEC on May 13, 2015 |
Acquisitions (Schedule of Pr124
Acquisitions (Schedule of Pro-Forma Financial Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combinations [Abstract] | ||||||
Revenue | $ 374.7 | $ 357.6 | $ 746.6 | $ 710.8 | $ 1,420.2 | $ 1,329.6 |
Net loss | $ (11.9) | $ (6.6) | $ (28.3) | $ (127.7) | $ (182.4) | $ (221.5) |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Identifiable Acquisition Related Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | $ 1,104.2 | $ 1,082.2 | $ 791.1 |
Accumulated Amortization | (191.6) | (155.3) | (103.7) |
Total Net | 912.6 | 926.9 | 687.4 |
Intangible Assets, Gross (Excluding Goodwill) | 1,124.6 | 1,103.6 | 814 |
Intangible Assets, Net | 933 | 948.3 | 710.3 |
Certifications [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount, Indefinite-lived Intangibles | 3.5 | 3.5 | 3.5 |
Underlying Rights [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount, Indefinite-lived Intangibles | 16.9 | 17.9 | |
Zayo Group, LLC [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Intangible Assets, Net | 581 | 605.8 | 563.7 |
Customer relationships [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | 1,102.3 | 1,080.3 | 789.2 |
Accumulated Amortization | (191.1) | (155) | (103.6) |
Total Net | 911.2 | 925.3 | 685.6 |
Trade names [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | 0.2 | 0.2 | 0.1 |
Accumulated Amortization | (0.2) | (0.1) | |
Total Net | 0.1 | 0.1 | |
Underlying rights [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | 1.7 | 1.7 | 1.8 |
Accumulated Amortization | (0.3) | (0.2) | (0.1) |
Total Net | $ 1.4 | $ 1.5 | $ 1.7 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,290.1 | $ 3,560.1 | |
Less accumulated depreciation | (990.9) | (737.7) | |
Property and equipment, net | 3,299.2 | $ 3,626.1 | 2,822.4 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 16.2 | 0.7 | |
Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 109.2 | 64.7 | |
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 15 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 20 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 5.1 | 5.7 | |
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 7 years | ||
Computer Hardware [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 15.1 | 16.7 | |
Computer Hardware [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 3 years | ||
Computer Hardware [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 5 years | ||
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 8.3 | 9.3 | |
Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 3 years | ||
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 272.1 | 94.9 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 7 years | ||
Fiber Optic Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 623.3 | 583.7 | |
Fiber Optic Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 8 years | ||
Circuit Switch Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 12.1 | 11.8 | |
Circuit Switch Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 10 years | ||
Packet Switch Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 76.2 | 62.8 | |
Packet Switch Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 5 years | ||
Fiber Optic Network [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,715.4 | 2,450.8 | |
Fiber Optic Network [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 15 years | ||
Fiber Optic Network [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life in years | 20 years | ||
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 437.1 | $ 259 |
Goodwill (Schedule Of Goodwi127
Goodwill (Schedule Of Goodwill) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | |||
Goodwill, beginning Balance | $ 1,224.4 | $ 866.7 | $ 688.8 |
Fiscal Acquisitions | 12.1 | 376.3 | 163.9 |
Foreign Currency Translation and Other | (9.5) | (18.6) | 14 |
Goodwill, ending balance | 1,222.2 | 1,224.4 | 866.7 |
Dark Fiber [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 299.1 | 293.3 | 193.3 |
Fiscal Acquisitions | 5.3 | 16 | 97.4 |
Foreign Currency Translation and Other | (5.8) | (10.2) | 2.6 |
Goodwill, ending balance | 298.6 | 299.1 | 293.3 |
Waves [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 265.6 | 269 | 215.9 |
Fiscal Acquisitions | 2.3 | 1.4 | 49.6 |
Foreign Currency Translation and Other | (3.1) | (4.8) | 3.5 |
Goodwill, ending balance | 264.8 | 265.6 | 269 |
Sonet [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 50.3 | 50.3 | 50.3 |
Fiscal Acquisitions | 1.5 | 0 | 0 |
Foreign Currency Translation and Other | 0 | 0 | |
Goodwill, ending balance | 51.8 | 50.3 | 50.3 |
Ethernet [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 104.2 | 96.7 | 91.7 |
Fiscal Acquisitions | 1.3 | 8.2 | 4.9 |
Foreign Currency Translation and Other | (0.1) | (0.7) | 0.1 |
Goodwill, ending balance | 105.4 | 104.2 | 96.7 |
IP [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 86.3 | 80.5 | 80.1 |
Fiscal Acquisitions | 0.2 | 6.8 | 0.2 |
Foreign Currency Translation and Other | (0.2) | (1) | 0.2 |
Goodwill, ending balance | 86.3 | 86.3 | 80.5 |
MIG [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 73.4 | 43.7 | 38.3 |
Fiscal Acquisitions | 29.8 | 5.4 | |
Foreign Currency Translation and Other | (0.1) | ||
Goodwill, ending balance | 73.7 | 73.4 | 43.7 |
zColo [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 273.2 | 18.6 | 11.9 |
Fiscal Acquisitions | 1.5 | 256 | 6.4 |
Foreign Currency Translation and Other | (0.2) | (1.4) | 0.3 |
Goodwill, ending balance | 269.4 | 273.2 | 18.6 |
Cloud [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 57 | ||
Fiscal Acquisitions | 57.2 | ||
Foreign Currency Translation and Other | (0.1) | (0.2) | |
Goodwill, ending balance | 56.9 | 57 | |
Other [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning Balance | 15.3 | 14.6 | 7.3 |
Fiscal Acquisitions | 0.9 | ||
Foreign Currency Translation and Other | (0.2) | 7.3 | |
Goodwill, ending balance | $ 15.3 | $ 15.3 | $ 14.6 |
Intangible Assets (Schedule 128
Intangible Assets (Schedule of Identifiable Acquisition Related Intangible Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | $ 1,104.2 | $ 1,082.2 | $ 791.1 |
Accumulated Amortization | (191.6) | (155.3) | (103.7) |
Total Net | 912.6 | 926.9 | 687.4 |
Intangible Assets, Gross (Excluding Goodwill) | 1,124.6 | 1,103.6 | 814 |
Intangible Assets, Net | 933 | 948.3 | 710.3 |
Certifications [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount, Indefinite-lived Intangibles | 3.5 | 3.5 | 3.5 |
Easement indefinite [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount, Indefinite-lived Intangibles | 17.9 | 19.4 | |
Customer relationships [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | 1,102.3 | 1,080.3 | 789.2 |
Accumulated Amortization | (191.1) | (155) | (103.6) |
Total Net | 911.2 | 925.3 | 685.6 |
Trade names [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | 0.2 | 0.2 | 0.1 |
Accumulated Amortization | (0.2) | (0.1) | |
Total Net | 0.1 | 0.1 | |
Underlying rights [Member] | |||
Schedule Of Intangible Assets Net Excluding Goodwill [Line Items] | |||
Gross Carrying Amount | 1.7 | 1.7 | 1.8 |
Accumulated Amortization | (0.3) | (0.2) | (0.1) |
Total Net | $ 1.4 | $ 1.5 | $ 1.7 |
Intangible Assets (Schedule 129
Intangible Assets (Schedule of Estimated Future Amortization Of Intangible Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
2,016 | $ 66.3 | ||
2,017 | 66.2 | ||
2,018 | 66.2 | ||
2,019 | 66.2 | ||
2,020 | 62.6 | ||
Thereafter | 599.4 | ||
Total Net | $ 912.6 | $ 926.9 | $ 687.4 |
Long-Term Debt (Schedule of Fut
Long-Term Debt (Schedule of Future Contractual Maturities of Long-term Debt) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Debt Disclosure [Abstract] | |||
2,016 | $ 16.5 | ||
2,017 | 16.5 | ||
2,018 | 16.5 | ||
2,019 | 16.5 | ||
2,020 | 16.5 | ||
Thereafter | 3,669.9 | ||
Total | $ 3,744.1 | $ 3,752.4 | $ 3,260.8 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Financial Instruments Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest Rate Derivative Liabilities, at Fair Value | $ 3.5 | $ 4.1 | $ 2 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred income tax assets | ||
Net operating loss carry forwards | $ 434 | $ 415.6 |
Alternate minimum tax credit carryforwards | 8.4 | 6.3 |
Deferred revenue | 243.5 | 190.7 |
Accrued expenses | 27.9 | 22.4 |
Other liabilities | 14.4 | 7.6 |
Reserves against accounts receivable | 10.2 | 6.4 |
Other | 17.4 | 2.1 |
Total deferred income tax assets | 755.8 | 651.1 |
Valuation allowance | (1.1) | (2.2) |
Net deferred tax assets | 754.7 | 648.9 |
Deferred income tax liabilities | ||
Property and equipment | 468.9 | 374.4 |
Intangible assets | 327.2 | 239.3 |
Debt issuance costs | 18.8 | 27.2 |
Total deferred income tax liabilities | 814.9 | 640.9 |
Net deferred income tax assets/(liabilities) | $ (60.2) | $ 8 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Rollforward) (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance, beginning of year | $ 6.4 |
Decreases | $ (6.4) |
Accrued Liabilities (Schedule o
Accrued Liabilities (Schedule of Accrued Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Accrued Liabilities, Current [Abstract] | |||
Accrued compensation and benefits | $ 19.4 | $ 13.3 | |
Accrued property and equipment purchases | 54.7 | 46.2 | |
Network expense accruals | 77.2 | 79.2 | |
Other accrued taxes | 12.7 | 9.3 | |
Accrued professional fees | 3.4 | 3.9 | |
Other accruals | 15 | 20.4 | |
Total | $ 182.2 | $ 182.4 | $ 172.3 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Revenue and Expense Transactions) (Details) - O V S [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Related Party Transaction [Line Items] | |||||||
Revenues | $ 1.6 | $ 1.7 | $ 3.3 | $ 3.4 | $ 6.9 | $ 7 | $ 6.6 |
Operating costs | $ 0.1 | $ 0.4 | $ 0.2 | $ 0.7 | $ 1 | $ 1.6 | $ 1.5 |
Fair Value Measurements (Sch136
Fair Value Measurements (Schedule Of Financial Instruments Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest Rate Derivative Liabilities, at Fair Value | $ 3.5 | $ 4.1 | $ 2 |
Condensed Consolidating Fina137
Condensed Consolidating Financial Information (Schedule Of Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Current assets | |||||||
Cash and cash equivalents | $ 175.6 | $ 308 | $ 152 | $ 297.4 | $ 297.4 | $ 91.3 | $ 150.7 |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 73.9 | 88 | 57.2 | ||||
Due from related parties | 0.5 | 0.6 | 0.9 | ||||
Prepaid expenses | 33.8 | 37.3 | 24.9 | ||||
Deferred income taxes, net | 129.8 | 129.5 | |||||
Other assets | 5.8 | 3.9 | 2.4 | ||||
Total current assets | 419.4 | 567.3 | 543.8 | ||||
Property and equipment, net | 3,626.1 | 3,299.2 | 2,822.4 | ||||
Intangible assets, net | 933 | 948.3 | 710.3 | ||||
Goodwill | 1,222.2 | 1,224.4 | 866.7 | 688.8 | |||
Other assets | 72.4 | 54.8 | 37.7 | ||||
Total assets | 6,273.1 | 6,094 | 4,988.8 | 4,980.9 | 4,152.1 | ||
Current liabilities | |||||||
Current portion of long-term debt | 16.5 | 16.5 | 20.5 | ||||
Accounts payable | 66.2 | 40 | 26.7 | ||||
Accrued liabilities | 182.2 | 182.4 | 172.3 | ||||
Accrued interest | 40.2 | 57.2 | 57.1 | ||||
Capital lease obligations, current | 5.4 | 4.4 | 2.4 | ||||
Due to related parties | 1.3 | 1.3 | |||||
Deferred revenue, current | 97.8 | 86.6 | 75.4 | ||||
Total current liabilities | 409.6 | 388.4 | 354.4 | ||||
Long-term debt, non-current | 3,649.8 | 3,652.2 | 3,130.3 | ||||
Capital lease obligation, non-current | 30.5 | 28.3 | 25.7 | ||||
Deferred revenue, non-current | 727.4 | 612.7 | 501.5 | ||||
Stock-based compensation liability | 1.9 | 392.4 | |||||
Deferred income taxes, net | 186.6 | 189.7 | 153 | ||||
Other long-term liabilities | 37.6 | 28.6 | 22.3 | ||||
Total liabilities | 5,041.5 | 4,899.9 | 4,579.6 | ||||
Member's Equity | |||||||
Member's interest | 1,774.3 | 1,699.1 | 728.9 | ||||
Accumulated other comprehensive loss | (19.6) | (7.9) | 14.4 | ||||
Accumulated deficit | (523.1) | (497.1) | (342) | ||||
Total member's equity | 1,231.6 | 1,194.1 | 401.3 | ||||
Total liabilities and member's equity | 6,273.1 | 6,094 | 4,980.9 | ||||
Eliminations [Member] | |||||||
Current assets | |||||||
Due from related parties | (1.4) | ||||||
Total current assets | (1.4) | ||||||
Related party receivable | (356.7) | (304.8) | (267.8) | ||||
Investment in subsidiary | (1,091.5) | (1,050.8) | (332.1) | ||||
Total assets | (1,448.2) | (1,357) | (599.9) | ||||
Current liabilities | |||||||
Due to related parties | (1.4) | ||||||
Total current liabilities | (1.4) | ||||||
Long-term debt, non-current | (356.7) | ||||||
Related party debt, long-term | (304.8) | (267.8) | |||||
Total liabilities | (356.7) | (306.2) | (267.8) | ||||
Member's Equity | |||||||
Member's interest | (1,100.5) | (1,060.3) | (332.1) | ||||
Accumulated deficit | 9 | 9.5 | |||||
Total member's equity | (1,091.5) | (1,050.8) | (332.1) | ||||
Total liabilities and member's equity | (1,448.2) | (1,357) | (599.9) | ||||
Zayo Group, LLC [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 137.2 | 274.3 | 129.6 | 260.8 | 256 | 83.6 | $ 150.7 |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 36.1 | 54.7 | 33.6 | ||||
Due from related parties | (4.1) | (1.3) | 0.3 | ||||
Prepaid expenses | 21.8 | 25.8 | 18.7 | ||||
Deferred income taxes, net | 128.9 | 128.5 | |||||
Other assets | 2.7 | 3.6 | 1.9 | ||||
Total current assets | 322.6 | 485.6 | 466.5 | ||||
Property and equipment, net | 2,820.7 | 2,622.9 | 2,389.3 | ||||
Intangible assets, net | 581 | 605.8 | 563.7 | ||||
Goodwill | 762.5 | 762.2 | 683.5 | ||||
Other assets | 52.1 | 36.2 | 23.4 | ||||
Related party receivable | 356.7 | 304.8 | 267.8 | ||||
Investment in subsidiary | 1,091.5 | 1,050.8 | 332.1 | ||||
Total assets | 5,987.1 | 5,868.3 | 4,726.3 | ||||
Current liabilities | |||||||
Current portion of long-term debt | 16.5 | 16.5 | 20.5 | ||||
Accounts payable | 45.9 | 26.6 | 20.4 | ||||
Accrued liabilities | 122.7 | 125.6 | 125 | ||||
Accrued interest | 40.2 | 57.2 | 57.1 | ||||
Capital lease obligations, current | 2.4 | 2 | 1.5 | ||||
Due to related parties | (0.3) | 1.7 | (0.7) | ||||
Deferred revenue, current | 76.6 | 73.2 | 56.7 | ||||
Total current liabilities | 304 | 302.8 | 280.5 | ||||
Long-term debt, non-current | 3,649.8 | 3,652.2 | 3,130.3 | ||||
Capital lease obligation, non-current | 23.3 | 5.6 | 5.6 | ||||
Deferred revenue, non-current | 627 | 559.4 | 459.5 | ||||
Stock-based compensation liability | 343.8 | ||||||
Deferred income taxes, net | 138.1 | 139.2 | 93 | ||||
Other long-term liabilities | 13.3 | 12.3 | |||||
Total liabilities | 4,755.5 | 4,674.2 | 4,325 | ||||
Member's Equity | |||||||
Member's interest | 1,793.6 | 1,730.1 | 782.2 | ||||
Accumulated deficit | (562) | (536) | (380.9) | ||||
Total member's equity | 1,231.6 | 1,194.1 | 401.3 | ||||
Total liabilities and member's equity | 5,987.1 | 5,868.3 | 4,726.3 | ||||
Guarantor Subsidiaries [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 3.7 | 4.7 | 4.1 | 1 | 5.8 | 4.2 | |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 15 | 4.6 | 8.2 | ||||
Due from related parties | 0.4 | ||||||
Prepaid expenses | 5.2 | 4.4 | 0.9 | ||||
Total current assets | 23.9 | 14.1 | 18.4 | ||||
Property and equipment, net | 345.1 | 335.5 | 109.3 | ||||
Intangible assets, net | 232.3 | 239.5 | 51.1 | ||||
Goodwill | 275.9 | 281 | 38 | ||||
Other assets | 9 | 8.3 | 3.5 | ||||
Total assets | 886.2 | 878.4 | 220.3 | ||||
Current liabilities | |||||||
Accounts payable | 4.8 | 4 | 4.3 | ||||
Accrued liabilities | 16.2 | 20.6 | 21 | ||||
Capital lease obligations, current | 1.5 | 1.6 | 0.9 | ||||
Deferred revenue, current | 3 | 2.8 | 1.6 | ||||
Total current liabilities | 25.5 | 29 | 27.8 | ||||
Capital lease obligation, non-current | 18.6 | 18.4 | |||||
Deferred revenue, non-current | 4.7 | 4.6 | 8.6 | ||||
Stock-based compensation liability | 23.3 | ||||||
Other long-term liabilities | 11.8 | 10.6 | 9.8 | ||||
Total liabilities | 42 | 62.8 | 102.6 | ||||
Member's Equity | |||||||
Member's interest | 805.5 | 778.1 | 73.8 | ||||
Accumulated deficit | 38.7 | 37.5 | 43.9 | ||||
Total member's equity | 844.2 | 815.6 | 117.7 | ||||
Total liabilities and member's equity | 886.2 | 878.4 | 220.3 | ||||
Non-Guarantor Subsidiaries [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 34.7 | 29 | $ 18.3 | $ 35.6 | 35.6 | $ 3.5 | |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 22.8 | 28.7 | 15.4 | ||||
Due from related parties | 4.6 | 2.9 | 0.6 | ||||
Prepaid expenses | 6.8 | 7.1 | 5.3 | ||||
Deferred income taxes, net | 0.9 | 1 | |||||
Other assets | 3.1 | 0.3 | 0.5 | ||||
Total current assets | 72.9 | 69 | 58.9 | ||||
Property and equipment, net | 460.3 | 340.8 | 323.8 | ||||
Intangible assets, net | 119.7 | 103 | 95.5 | ||||
Goodwill | 183.8 | 181.2 | 145.2 | ||||
Other assets | 11.3 | 10.3 | 10.8 | ||||
Total assets | 848 | 704.3 | 634.2 | ||||
Current liabilities | |||||||
Accounts payable | 15.5 | 9.4 | 2 | ||||
Accrued liabilities | 43.3 | 36.2 | 26.3 | ||||
Capital lease obligations, current | 1.5 | 0.8 | |||||
Due to related parties | 1.6 | 1 | 0.7 | ||||
Deferred revenue, current | 18.2 | 10.6 | 17.1 | ||||
Total current liabilities | 80.1 | 58 | 46.1 | ||||
Long-term debt, non-current | 356.7 | ||||||
Related party debt, long-term | 304.8 | 267.8 | |||||
Capital lease obligation, non-current | 7.2 | 4.1 | 1.7 | ||||
Deferred revenue, non-current | 95.7 | 48.7 | 33.4 | ||||
Stock-based compensation liability | 25.3 | ||||||
Deferred income taxes, net | 48.5 | 50.5 | 45.3 | ||||
Other long-term liabilities | 12.5 | 3 | 0.2 | ||||
Total liabilities | 600.7 | 469.1 | 419.8 | ||||
Member's Equity | |||||||
Member's interest | 275.7 | 251.2 | 205 | ||||
Accumulated other comprehensive loss | (19.6) | (7.9) | 14.4 | ||||
Accumulated deficit | (8.8) | (8.1) | (5) | ||||
Total member's equity | 247.3 | 235.2 | 214.4 | ||||
Total liabilities and member's equity | $ 848 | $ 704.3 | $ 634.2 |
Condensed Consolidating Fina138
Condensed Consolidating Financial Information (Schedule Of Condensed Consolidating Statements Of Operations) (Details) - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[7],[8] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [2],[3] | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Revenue | $ 369.6 | $ 361.9 | $ 323.9 | [1] | $ 298.1 | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | [1] | $ 1,129.7 | [2] | $ 1,011 | ||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 112.2 | 107.5 | $ 100.9 | 97.8 | [1] | $ 107.3 | 92.8 | 84.9 | 85.9 | 79.7 | 225.2 | 205.1 | 413.5 | [1] | 343.3 | [2] | 314.1 | ||||||||
Selling, general and administrative expenses (including stock-based compensation-Note 8) | 85 | 86.4 | [9] | 83 | [9] | 32.1 | [1],[9] | 156.6 | [9] | 124.6 | 96.6 | 87 | 76.4 | 169.6 | 188.7 | 358.1 | [1],[9] | 384.6 | [2] | 256.7 | |||||
Depreciation and amortization | 113.7 | 113.2 | 100.1 | 96.9 | [1] | 96 | 91.3 | 84.2 | 81.7 | 81 | 230.8 | 192.9 | 406.2 | [1] | 338.2 | [2] | 324.5 | ||||||||
Total operating costs and expenses | 310.9 | 307.1 | 284 | 226.8 | [1] | 359.9 | 308.7 | 265.7 | 254.6 | 237.1 | 625.6 | 586.7 | 1,177.8 | [1] | 1,066.1 | [2] | 895.3 | ||||||||
Operating income | 58.7 | 54.8 | 56.7 | 97.1 | [1] | (39.3) | (10.6) | 17.5 | 24.1 | 32.6 | 110.8 | 57.8 | 169.3 | [1] | 63.6 | [2] | 115.7 | ||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (51.2) | (53) | (60.7) | (53.4) | [1] | (46.9) | (52.6) | [10] | (49.1) | [10] | (50.3) | [10] | (51.5) | [10] | (105) | (100.3) | (214) | [1] | (203.5) | [2],[10] | (202.5) | ||||
Gains Losses On Extinguishment Of Debt | $ (65) | (8.5) | [11] | (54.9) | [11] | (30.9) | [1],[11] | (1.9) | [12] | (30.9) | (94.3) | [1],[11] | (1.9) | [2],[12] | (77.3) | ||||||||||
Foreign currency loss on intercompany loans | (7.1) | 16.8 | (13.2) | (13.3) | [1] | (14.7) | 3.8 | 0.1 | 0.2 | 0.6 | (17.8) | (27.9) | (24.4) | [1] | 4.7 | [2] | 0.1 | ||||||||
Other income, net | (0.1) | (0.3) | (0.1) | [1] | (0.1) | 0.3 | 0.1 | (0.2) | (0.2) | (0.4) | [1] | 0.3 | [2] | 0.3 | |||||||||||
Total other expenses, net | (58.4) | (45) | (128.8) | (97.7) | [1] | (61.6) | (48.9) | (49) | (51.7) | (50.8) | (123) | (159.3) | (333.1) | [1] | (200.4) | [2] | (279.4) | ||||||||
Loss before income taxes | 0.3 | 9.8 | (72.1) | (0.6) | [1] | (100.9) | (59.5) | (31.5) | (27.6) | (18.2) | (12.2) | (101.5) | (163.8) | [1] | (136.8) | [2] | (163.7) | ||||||||
Provision for income taxes | 11.1 | 4.6 | (18.4) | (4.3) | [1] | 9.4 | 10.5 | 12.1 | 8.4 | 9.3 | 13.8 | 5.1 | (8.7) | [1] | 40.3 | [2] | (21.8) | ||||||||
Net Loss | (10.8) | $ 5.2 | $ (53.7) | 3.7 | [1] | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | (26) | (106.6) | (155.1) | [1] | (177.1) | [2] | (141.9) | ||||||||
Eliminations [Member] | |||||||||||||||||||||||||
Revenue | (8.7) | ||||||||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | (8.7) | ||||||||||||||||||||||||
Total operating costs and expenses | (8.7) | ||||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Equity in net earnings of subsidiaries | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Total other expenses, net | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Loss before income taxes | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Net Loss | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Zayo Group, LLC [Member] | |||||||||||||||||||||||||
Revenue | 279 | 256 | 552.9 | 507.5 | 1,040.1 | 956.5 | 876.4 | ||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 81.7 | 74.9 | 163.8 | 158.8 | 313.8 | 290.1 | 255.5 | ||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation-Note 8) | 60.9 | 18.9 | 120.2 | 146.1 | 266.4 | 327.3 | 229.5 | ||||||||||||||||||
Depreciation and amortization | 84.7 | 78.1 | 171.6 | 157.5 | 321.7 | 307.6 | 301.4 | ||||||||||||||||||
Total operating costs and expenses | 227.3 | 171.9 | 455.6 | 462.4 | 901.9 | 925 | 786.4 | ||||||||||||||||||
Operating income | 51.7 | 84.1 | 97.3 | 45.1 | 138.2 | 31.5 | 90 | ||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (44.8) | (48.9) | (94.3) | (108.5) | (177) | (201.1) | (202.1) | ||||||||||||||||||
Gains Losses On Extinguishment Of Debt | (30.9) | (30.9) | (91.8) | (1.9) | (77.3) | ||||||||||||||||||||
Foreign currency loss on intercompany loans | (6.9) | (13.3) | (17.3) | (29) | (23.2) | 3.5 | 0.1 | ||||||||||||||||||
Other income, net | (0.1) | 1.4 | (0.1) | (0.4) | 0.3 | 0.2 | |||||||||||||||||||
Equity in net earnings of subsidiaries | (0.4) | 7.1 | 0.5 | 21.2 | (9.5) | 28.2 | 20.7 | ||||||||||||||||||
Total other expenses, net | (52.2) | (84.6) | (111.1) | (147.3) | (301.9) | (171) | (258.4) | ||||||||||||||||||
Loss before income taxes | (0.5) | (0.5) | (13.8) | (102.2) | (163.7) | (139.5) | (168.4) | ||||||||||||||||||
Provision for income taxes | 10.3 | (4.2) | 12.2 | 4.4 | (8.6) | 37.6 | (26.5) | ||||||||||||||||||
Net Loss | (10.8) | 3.7 | (26) | (106.6) | (155.1) | (177.1) | (141.9) | ||||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||
Revenue | 51.8 | 30.1 | 103.7 | 60.5 | 151.6 | 102.8 | 85.4 | ||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 17.1 | 11.1 | 35.7 | 22.8 | 54.4 | 45.5 | 50.4 | ||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation-Note 8) | 14 | 4.7 | 28 | 15.1 | 38.9 | 28.3 | 9.4 | ||||||||||||||||||
Depreciation and amortization | 18.8 | 5.8 | 38.6 | 10.8 | 42.7 | 13.8 | 9.8 | ||||||||||||||||||
Total operating costs and expenses | 49.9 | 21.6 | 102.3 | 48.7 | 136 | 87.6 | 69.6 | ||||||||||||||||||
Operating income | 1.9 | 8.5 | 1.4 | 11.8 | 15.6 | 15.2 | 15.8 | ||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (0.2) | (0.3) | (0.2) | (0.4) | (20.3) | ||||||||||||||||||||
Gains Losses On Extinguishment Of Debt | (1.7) | ||||||||||||||||||||||||
Other income, net | (0.5) | (0.6) | |||||||||||||||||||||||
Total other expenses, net | (0.2) | (0.8) | (0.2) | (1) | (22) | ||||||||||||||||||||
Loss before income taxes | 1.7 | 7.7 | 1.2 | 10.8 | (6.4) | 15.2 | 15.8 | ||||||||||||||||||
Provision for income taxes | 0.4 | ||||||||||||||||||||||||
Net Loss | 1.7 | 7.7 | 1.2 | 10.4 | (6.4) | 15.2 | 15.8 | ||||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||
Revenue | 38.8 | 37.8 | 79.8 | 76.5 | 155.4 | 70.4 | 57.9 | ||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 13.4 | 11.8 | 25.7 | 23.5 | 45.3 | 7.7 | 16.9 | ||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation-Note 8) | 10.1 | 8.5 | 21.4 | 27.5 | 52.8 | 29 | 17.8 | ||||||||||||||||||
Depreciation and amortization | 10.2 | 13 | 20.6 | 24.6 | 41.8 | 16.8 | 13.3 | ||||||||||||||||||
Total operating costs and expenses | 33.7 | 33.3 | 67.7 | 75.6 | 139.9 | 53.5 | 48 | ||||||||||||||||||
Operating income | 5.1 | 4.5 | 12.1 | 0.9 | 15.5 | 16.9 | 9.9 | ||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (6.2) | (4.2) | (10.5) | 8.6 | (16.7) | (2.4) | (0.4) | ||||||||||||||||||
Gains Losses On Extinguishment Of Debt | (0.8) | ||||||||||||||||||||||||
Foreign currency loss on intercompany loans | (0.2) | (0.5) | 1.1 | (1.2) | 1.2 | ||||||||||||||||||||
Other income, net | (1) | (0.2) | 0.5 | 0.1 | |||||||||||||||||||||
Total other expenses, net | (6.4) | (5.2) | (11.2) | 10.2 | (18.7) | (1.2) | (0.3) | ||||||||||||||||||
Loss before income taxes | (1.3) | (0.7) | 0.9 | 11.1 | (3.2) | 15.7 | 9.6 | ||||||||||||||||||
Provision for income taxes | 0.8 | (0.1) | 1.6 | 0.3 | (0.1) | 2.7 | 4.7 | ||||||||||||||||||
Net Loss | $ (2.1) | $ (0.6) | $ (0.7) | $ 10.8 | $ (3.1) | $ 13 | $ 4.9 | ||||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[9] | The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12? Stock-based Compensation. | ||||||||||||||||||||||||
[10] | The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[11] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[12] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
Condensed Consolidating Fina139
Condensed Consolidating Financial Information (Schedule Of Condensed Consolidating Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net cash provided by operating activities | $ 341.4 | $ 232.6 | $ 607 | $ 562 | $ 404.7 | ||
Cash flows from investing activities | |||||||
Purchases of property and equipment | $ (172.4) | $ (129.5) | (331.6) | (244.8) | (530.4) | (360.8) | (323.3) |
Acquisition, net of cash acquired | (117.7) | (126.5) | (855.7) | (393.3) | (2,480.7) | ||
Other | (0.3) | (0.1) | (0.3) | 2.7 | |||
Net cash used in investing activities | (449.6) | (371.3) | (1,386.1) | (754.1) | (2,804) | ||
Cash flows from financing activities | |||||||
Proceeds from equity offerings and contributions | 279.7 | 385 | 5.6 | 344 | |||
Distributions to parent | (17.5) | 279.7 | |||||
Principal payments on long-term debt | (8.3) | (259.7) | (1,288.5) | (18) | (1,058.6) | ||
Payment of early redemption fees on debt extinguished | (23.8) | (62.6) | (72.1) | ||||
Principal repayments on capital lease obligations | (2.2) | (1.3) | (3.5) | (7.9) | (1.9) | ||
Excess tax benefit from stock-based compensation | 7.9 | ||||||
Other | (0.8) | ||||||
Net cash provided by financing activities | (20.9) | (5.1) | 793.5 | 397.2 | 2,340.2 | ||
Effect of changes in foreign exchange rates on cash | (3.3) | (1.6) | (3.8) | 1 | (0.3) | ||
Net Cash Provided By Used In Continuing Operations | (129.1) | (143.8) | 14.4 | 205.1 | (59.1) | ||
Net increase/(decrease) in cash and cash equivalents | (132.4) | (145.4) | 10.6 | 206.1 | (59.4) | ||
Cash and cash equivalents, beginning of year | 297.4 | 308 | 297.4 | 297.4 | 91.3 | 150.7 | |
Cash and cash equivalents, end of period | 175.6 | 152 | 175.6 | 152 | 308 | 297.4 | 91.3 |
Zayo Group, LLC [Member] | |||||||
Net cash provided by operating activities | 243.8 | 204.4 | 489.3 | 485.5 | 359.3 | ||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (283.7) | (207.9) | |||||
Acquisition, net of cash acquired | (0.1) | (113.5) | (83.2) | (2,489) | |||
Other | 0.3 | ||||||
Net cash used in investing activities | (283.4) | (208) | (550.3) | (399.8) | (2,788.8) | ||
Cash flows from financing activities | |||||||
Proceeds from equity offerings and contributions | 205.3 | (290.9) | 11.2 | 344 | |||
Distributions to parent | (37.8) | ||||||
Loan from Parent | (59) | ||||||
Principal payments on long-term debt | (7.1) | (254.4) | (1,288.5) | (18) | (1,058.6) | ||
Payment of early redemption fees on debt extinguished | (23.8) | (62.6) | (72.1) | ||||
Principal repayments on capital lease obligations | (0.7) | (0.5) | (1.7) | (2.1) | (1.8) | ||
Excess tax benefit from stock-based compensation | 7.9 | ||||||
(Payment of)/receipt from intercompany loans | (50.1) | (251.1) | 8.3 | ||||
Other | (0.8) | ||||||
Net cash provided by financing activities | (97.5) | (123.5) | 79.3 | 86.7 | 2,362.3 | ||
Effect of changes in foreign exchange rates on cash | (4.1) | 0.1 | |||||
Net Cash Provided By Used In Continuing Operations | 18.3 | 172.4 | (67.2) | ||||
Net increase/(decrease) in cash and cash equivalents | (137.1) | (131.2) | |||||
Cash and cash equivalents, beginning of year | 260.8 | 274.3 | 256 | 256 | 83.6 | 150.7 | |
Cash and cash equivalents, end of period | 137.2 | 129.6 | 137.2 | 129.6 | 274.3 | 256 | 83.6 |
Guarantor Subsidiaries [Member] | |||||||
Net cash provided by operating activities | 40.3 | 13.8 | 55.7 | 43.2 | 31.8 | ||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (27.9) | (17.8) | |||||
Acquisition, net of cash acquired | (16.7) | (52.5) | (668.3) | (17.8) | 0.4 | ||
Other | (0.1) | ||||||
Net cash used in investing activities | (44.7) | (70.3) | (716.1) | (46) | (13.7) | ||
Cash flows from financing activities | |||||||
Proceeds from equity offerings and contributions | 64.9 | 660.7 | (5.6) | ||||
Distributions to parent | 5.5 | ||||||
Principal payments on long-term debt | (1.2) | (5.3) | |||||
Principal repayments on capital lease obligations | (0.9) | (0.8) | (1.4) | (5.8) | (0.1) | ||
Net cash provided by financing activities | 3.4 | 58.8 | 659.3 | 4.4 | (13.8) | ||
Effect of changes in foreign exchange rates on cash | 0.8 | (0.1) | |||||
Net Cash Provided By Used In Continuing Operations | (1.1) | 1.6 | 4.3 | ||||
Net increase/(decrease) in cash and cash equivalents | (1) | 3.1 | |||||
Cash and cash equivalents, beginning of year | 1 | 4.7 | 5.8 | 5.8 | 4.2 | ||
Cash and cash equivalents, end of period | 3.7 | 4.1 | 3.7 | 4.1 | 4.7 | 5.8 | 4.2 |
Non-Guarantor Subsidiaries [Member] | |||||||
Net cash provided by operating activities | 57.3 | 14.4 | 62 | 33.3 | 13.6 | ||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (20) | (19.1) | |||||
Acquisition, net of cash acquired | (101) | (73.9) | (73.9) | (292.3) | 7.9 | ||
Other | (0.5) | ||||||
Net cash used in investing activities | (121.5) | (93) | (119.7) | (308.3) | (1.5) | ||
Cash flows from financing activities | |||||||
Proceeds from equity offerings and contributions | 9.5 | 15.2 | |||||
Distributions to parent | 14.8 | ||||||
Loan from Parent | 59 | ||||||
Principal repayments on capital lease obligations | (0.6) | (0.4) | |||||
(Payment of)/receipt from intercompany loans | 50.1 | 251.1 | (8.3) | ||||
Net cash provided by financing activities | 73.2 | 59.6 | 54.9 | 306.1 | (8.3) | ||
Effect of changes in foreign exchange rates on cash | (3.3) | 1.7 | (3.8) | 1 | (0.3) | ||
Net Cash Provided By Used In Continuing Operations | (2.8) | 31.1 | 3.8 | ||||
Net increase/(decrease) in cash and cash equivalents | 5.7 | (17.3) | |||||
Cash and cash equivalents, beginning of year | 35.6 | 29 | 35.6 | 35.6 | 3.5 | ||
Cash and cash equivalents, end of period | $ 34.7 | $ 18.3 | $ 34.7 | $ 18.3 | $ 29 | $ 35.6 | $ 3.5 |
Commitments and Contingencie140
Commitments and Contingencies (Schedule of Future Contractual Capital Lease Payments) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Commitments And Contingencies Disclosure [Abstract] | |||
2,016 | $ 6.4 | ||
2,017 | 7 | ||
2,018 | 5.6 | ||
2,019 | 5 | ||
2,020 | 3.8 | ||
Thereafter | 17.3 | ||
Total minimum lease payments | 45.1 | ||
Less amounts representing interest | (12.4) | ||
Less current portion | $ (5.4) | (4.4) | $ (2.4) |
Capital lease obligations, non-current | $ 30.5 | $ 28.3 | $ 25.7 |
Commitments and Contingencie141
Commitments and Contingencies (Schedule of Minimum Contractual Long-Term Operating Lease Payments) (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 119.3 |
2,017 | 86.9 |
2,018 | 75.4 |
2,019 | 62.7 |
2,020 | 48.9 |
Thereafter | 280.7 |
Total operating lease obligations | $ 673.9 |
Related Party Transactions (142
Related Party Transactions (Schedule of Revenue and Expense Transactions) (Detail) - O V S [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Related Party Transaction [Line Items] | |||||||
Revenues | $ 1.6 | $ 1.7 | $ 3.3 | $ 3.4 | $ 6.9 | $ 7 | $ 6.6 |
Operating costs | $ 0.1 | $ 0.4 | $ 0.2 | $ 0.7 | $ 1 | $ 1.6 | $ 1.5 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Geographical Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | [1] | Jun. 30, 2014 | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||||
Revenue from external customers | $ 369.6 | $ 361.9 | [1] | $ 323.9 | $ 298.1 | [2],[3] | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | [1] | $ 1,129.7 | [2] | $ 1,011 | ||||
Long-lived assets | 4,302.3 | 3,570.4 | 4,302.3 | 3,570.4 | 3,115.5 | |||||||||||||||
United States [Member] | ||||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||||
Revenue from external customers | 1,193.5 | 1,059.3 | 953.1 | |||||||||||||||||
Long-lived assets | 3,848 | 3,140.2 | 3,848 | 3,140.2 | 2,995.3 | |||||||||||||||
United Kingdom [Member] | ||||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||||
Revenue from external customers | 119 | 70.3 | 57.5 | |||||||||||||||||
Long-lived assets | 405.3 | 429.9 | 405.3 | 429.9 | 120.2 | |||||||||||||||
Japan [Member] | ||||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||||
Revenue from external customers | 0.1 | $ 0.4 | ||||||||||||||||||
Long-lived assets | 0.3 | $ 0.3 | 0.3 | $ 0.3 | ||||||||||||||||
France [Member] | ||||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||||
Revenue from external customers | 34.6 | |||||||||||||||||||
Long-lived assets | $ 48.7 | $ 48.7 | ||||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | |||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | |||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | |||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | |||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | |||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. |
Condensed Consolidating Fina144
Condensed Consolidating Financial Information (Schedule Of Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Current assets | |||||||
Cash and cash equivalents | $ 175.6 | $ 308 | $ 152 | $ 297.4 | $ 297.4 | $ 91.3 | $ 150.7 |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 73.9 | 88 | 57.2 | ||||
Due from related parties | 0.5 | 0.6 | 0.9 | ||||
Prepaid expenses | 33.8 | 37.3 | 24.9 | ||||
Deferred income taxes, net | 129.5 | 161 | |||||
Other assets | 5.8 | 3.9 | 2.4 | ||||
Total current assets | 419.4 | 567.3 | 543.8 | ||||
Property and equipment, net | 3,626.1 | 3,299.2 | 2,822.4 | ||||
Intangible assets, net | 933 | 948.3 | 710.3 | ||||
Goodwill | 1,222.2 | 1,224.4 | 866.7 | 688.8 | |||
Other assets | 72.4 | 54.8 | 37.7 | ||||
Total assets | 6,273.1 | 6,094 | 4,988.8 | 4,980.9 | 4,152.1 | ||
Current liabilities | |||||||
Current portion of long-term debt | 16.5 | 16.5 | 20.5 | ||||
Accounts payable | 66.2 | 40 | 26.7 | ||||
Accrued liabilities | 182.2 | 182.4 | 172.3 | ||||
Accrued interest | 40.2 | 57.2 | 57.1 | ||||
Capital lease obligations, current | 5.4 | 4.4 | 2.4 | ||||
Due to related parties | 1.3 | 1.3 | |||||
Deferred revenue, current | 97.8 | 86.6 | 75.4 | ||||
Total current liabilities | 409.6 | 388.4 | 354.4 | ||||
Long-term debt, non-current | 3,649.8 | 3,652.2 | 3,130.3 | ||||
Capital lease obligation, non-current | 30.5 | 28.3 | 25.7 | ||||
Deferred revenue, non-current | 727.4 | 612.7 | 501.5 | ||||
Stock-based compensation liability | 1.9 | 392.4 | |||||
Deferred income taxes, net | 186.6 | 189.7 | 153 | ||||
Other long-term liabilities | 37.6 | 28.6 | 22.3 | ||||
Total liabilities | 5,041.5 | 4,899.9 | 4,579.6 | ||||
Member's Equity | |||||||
Member's interest | 1,774.3 | 1,699.1 | 728.9 | ||||
Accumulated other comprehensive (loss)/income | (19.6) | (7.9) | 14.4 | ||||
Accumulated deficit | (523.1) | (497.1) | (342) | ||||
Total member's equity | 1,231.6 | 1,194.1 | 401.3 | ||||
Total liabilities and member's equity | 6,273.1 | 6,094 | 4,980.9 | ||||
Eliminations [Member] | |||||||
Current assets | |||||||
Due from related parties | (1.4) | ||||||
Total current assets | (1.4) | ||||||
Related party receivable | (356.7) | (304.8) | (267.8) | ||||
Investment in subsidiary | (1,091.5) | (1,050.8) | (332.1) | ||||
Total assets | (1,448.2) | (1,357) | (599.9) | ||||
Current liabilities | |||||||
Due to related parties | (1.4) | ||||||
Total current liabilities | (1.4) | ||||||
Long-term debt, non-current | (356.7) | ||||||
Related party debt, long-term | (304.8) | (267.8) | |||||
Total liabilities | (356.7) | (306.2) | (267.8) | ||||
Member's Equity | |||||||
Member's interest | (1,100.5) | (1,060.3) | (332.1) | ||||
Accumulated deficit | 9 | 9.5 | |||||
Total member's equity | (1,091.5) | (1,050.8) | (332.1) | ||||
Total liabilities and member's equity | (1,448.2) | (1,357) | (599.9) | ||||
Zayo Group, LLC [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 137.2 | 274.3 | 129.6 | 260.8 | 256 | 83.6 | $ 150.7 |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 36.1 | 54.7 | 33.6 | ||||
Due from related parties | (4.1) | (1.3) | 0.3 | ||||
Prepaid expenses | 21.8 | 25.8 | 18.7 | ||||
Deferred income taxes, net | 128.5 | 156 | |||||
Other assets | 2.7 | 3.6 | 1.9 | ||||
Total current assets | 322.6 | 485.6 | 466.5 | ||||
Property and equipment, net | 2,820.7 | 2,622.9 | 2,389.3 | ||||
Intangible assets, net | 581 | 605.8 | 563.7 | ||||
Goodwill | 762.5 | 762.2 | 683.5 | ||||
Other assets | 52.1 | 36.2 | 23.4 | ||||
Related party receivable | 356.7 | 304.8 | 267.8 | ||||
Investment in subsidiary | 1,091.5 | 1,050.8 | 332.1 | ||||
Total assets | 5,987.1 | 5,868.3 | 4,726.3 | ||||
Current liabilities | |||||||
Current portion of long-term debt | 16.5 | 16.5 | 20.5 | ||||
Accounts payable | 45.9 | 26.6 | 20.4 | ||||
Accrued liabilities | 122.7 | 125.6 | 125 | ||||
Accrued interest | 40.2 | 57.2 | 57.1 | ||||
Capital lease obligations, current | 2.4 | 2 | 1.5 | ||||
Due to related parties | (0.3) | 1.7 | (0.7) | ||||
Deferred revenue, current | 76.6 | 73.2 | 56.7 | ||||
Total current liabilities | 304 | 302.8 | 280.5 | ||||
Long-term debt, non-current | 3,649.8 | 3,652.2 | 3,130.3 | ||||
Capital lease obligation, non-current | 23.3 | 5.6 | 5.6 | ||||
Deferred revenue, non-current | 627 | 559.4 | 459.5 | ||||
Stock-based compensation liability | 343.8 | ||||||
Deferred income taxes, net | 138.1 | 139.2 | 93 | ||||
Other long-term liabilities | 13.3 | 12.3 | |||||
Total liabilities | 4,755.5 | 4,674.2 | 4,325 | ||||
Member's Equity | |||||||
Member's interest | 1,793.6 | 1,730.1 | 782.2 | ||||
Accumulated deficit | (562) | (536) | (380.9) | ||||
Total member's equity | 1,231.6 | 1,194.1 | 401.3 | ||||
Total liabilities and member's equity | 5,987.1 | 5,868.3 | 4,726.3 | ||||
Guarantor Subsidiaries [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 3.7 | 4.7 | 4.1 | 1 | 5.8 | 4.2 | |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 15 | 4.6 | 8.2 | ||||
Due from related parties | 0.4 | ||||||
Prepaid expenses | 5.2 | 4.4 | 0.9 | ||||
Deferred income taxes, net | 3.5 | ||||||
Total current assets | 23.9 | 14.1 | 18.4 | ||||
Property and equipment, net | 345.1 | 335.5 | 109.3 | ||||
Intangible assets, net | 232.3 | 239.5 | 51.1 | ||||
Goodwill | 275.9 | 281 | 38 | ||||
Other assets | 9 | 8.3 | 3.5 | ||||
Total assets | 886.2 | 878.4 | 220.3 | ||||
Current liabilities | |||||||
Accounts payable | 4.8 | 4 | 4.3 | ||||
Accrued liabilities | 16.2 | 20.6 | 21 | ||||
Capital lease obligations, current | 1.5 | 1.6 | 0.9 | ||||
Deferred revenue, current | 3 | 2.8 | 1.6 | ||||
Total current liabilities | 25.5 | 29 | 27.8 | ||||
Capital lease obligation, non-current | 18.6 | 18.4 | |||||
Deferred revenue, non-current | 4.7 | 4.6 | 8.6 | ||||
Stock-based compensation liability | 23.3 | ||||||
Other long-term liabilities | 11.8 | 10.6 | 9.8 | ||||
Total liabilities | 42 | 62.8 | 102.6 | ||||
Member's Equity | |||||||
Member's interest | 805.5 | 778.1 | 73.8 | ||||
Accumulated deficit | 38.7 | 37.5 | 43.9 | ||||
Total member's equity | 844.2 | 815.6 | 117.7 | ||||
Total liabilities and member's equity | 886.2 | 878.4 | 220.3 | ||||
Non-Guarantor Subsidiaries [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 34.7 | 29 | $ 18.3 | $ 35.6 | 35.6 | $ 3.5 | |
Trade receivables, net of allowance of $3.4 and $3.7 as of June 30, 2015 and June 30, 2014, respectively | 22.8 | 28.7 | 15.4 | ||||
Due from related parties | 4.6 | 2.9 | 0.6 | ||||
Prepaid expenses | 6.8 | 7.1 | 5.3 | ||||
Deferred income taxes, net | 1 | 1.5 | |||||
Other assets | 3.1 | 0.3 | 0.5 | ||||
Total current assets | 72.9 | 69 | 58.9 | ||||
Property and equipment, net | 460.3 | 340.8 | 323.8 | ||||
Intangible assets, net | 119.7 | 103 | 95.5 | ||||
Goodwill | 183.8 | 181.2 | 145.2 | ||||
Other assets | 11.3 | 10.3 | 10.8 | ||||
Total assets | 848 | 704.3 | 634.2 | ||||
Current liabilities | |||||||
Accounts payable | 15.5 | 9.4 | 2 | ||||
Accrued liabilities | 43.3 | 36.2 | 26.3 | ||||
Capital lease obligations, current | 1.5 | 0.8 | |||||
Due to related parties | 1.6 | 1 | 0.7 | ||||
Deferred revenue, current | 18.2 | 10.6 | 17.1 | ||||
Total current liabilities | 80.1 | 58 | 46.1 | ||||
Long-term debt, non-current | 356.7 | ||||||
Related party debt, long-term | 304.8 | 267.8 | |||||
Capital lease obligation, non-current | 7.2 | 4.1 | 1.7 | ||||
Deferred revenue, non-current | 95.7 | 48.7 | 33.4 | ||||
Stock-based compensation liability | 25.3 | ||||||
Deferred income taxes, net | 48.5 | 50.5 | 45.3 | ||||
Other long-term liabilities | 12.5 | 3 | 0.2 | ||||
Total liabilities | 600.7 | 469.1 | 419.8 | ||||
Member's Equity | |||||||
Member's interest | 275.7 | 251.2 | 205 | ||||
Accumulated other comprehensive (loss)/income | (19.6) | (7.9) | 14.4 | ||||
Accumulated deficit | (8.8) | (8.1) | (5) | ||||
Total member's equity | 247.3 | 235.2 | 214.4 | ||||
Total liabilities and member's equity | $ 848 | $ 704.3 | $ 634.2 |
Condensed Consolidating Fina145
Condensed Consolidating Financial Information (Schedule Of Condensed Consolidating Statements Of Operations) (Detail) - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[7],[8] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [2],[3] | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Condensed Statement Of Income Captions [Line Items] | |||||||||||||||||||||||||
Revenue | $ 369.6 | $ 361.9 | $ 323.9 | [1] | $ 298.1 | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | [1] | $ 1,129.7 | [2] | $ 1,011 | ||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | 112.2 | 107.5 | $ 100.9 | 97.8 | [1] | $ 107.3 | 92.8 | 84.9 | 85.9 | 79.7 | 225.2 | 205.1 | 413.5 | [1] | 343.3 | [2] | 314.1 | ||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 85 | 86.4 | [9] | 83 | [9] | 32.1 | [1],[9] | 156.6 | [9] | 124.6 | 96.6 | 87 | 76.4 | 169.6 | 188.7 | 358.1 | [1],[9] | 384.6 | [2] | 256.7 | |||||
Depreciation and amortization | 113.7 | 113.2 | 100.1 | 96.9 | [1] | 96 | 91.3 | 84.2 | 81.7 | 81 | 230.8 | 192.9 | 406.2 | [1] | 338.2 | [2] | 324.5 | ||||||||
Total operating costs and expenses | 310.9 | 307.1 | 284 | 226.8 | [1] | 359.9 | 308.7 | 265.7 | 254.6 | 237.1 | 625.6 | 586.7 | 1,177.8 | [1] | 1,066.1 | [2] | 895.3 | ||||||||
Operating income | 58.7 | 54.8 | 56.7 | 97.1 | [1] | (39.3) | (10.6) | 17.5 | 24.1 | 32.6 | 110.8 | 57.8 | 169.3 | [1] | 63.6 | [2] | 115.7 | ||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (51.2) | (53) | (60.7) | (53.4) | [1] | (46.9) | (52.6) | [10] | (49.1) | [10] | (50.3) | [10] | (51.5) | [10] | (105) | (100.3) | (214) | [1] | (203.5) | [2],[10] | (202.5) | ||||
Loss on extinguishment of debt | $ (65) | (8.5) | [11] | (54.9) | [11] | (30.9) | [1],[11] | (1.9) | [12] | (30.9) | (94.3) | [1],[11] | (1.9) | [2],[12] | (77.3) | ||||||||||
Foreign currency (loss)/gain on intercompany loans | (7.1) | 16.8 | (13.2) | (13.3) | [1] | (14.7) | 3.8 | 0.1 | 0.2 | 0.6 | (17.8) | (27.9) | (24.4) | [1] | 4.7 | [2] | 0.1 | ||||||||
Other income, net | (0.1) | (0.3) | (0.1) | [1] | (0.1) | 0.3 | 0.1 | (0.2) | (0.2) | (0.4) | [1] | 0.3 | [2] | 0.3 | |||||||||||
Total other expenses, net | (58.4) | (45) | (128.8) | (97.7) | [1] | (61.6) | (48.9) | (49) | (51.7) | (50.8) | (123) | (159.3) | (333.1) | [1] | (200.4) | [2] | (279.4) | ||||||||
Loss before income taxes | 0.3 | 9.8 | (72.1) | (0.6) | [1] | (100.9) | (59.5) | (31.5) | (27.6) | (18.2) | (12.2) | (101.5) | (163.8) | [1] | (136.8) | [2] | (163.7) | ||||||||
(Benefit)/provision for income taxes | 11.1 | 4.6 | (18.4) | (4.3) | [1] | 9.4 | 10.5 | 12.1 | 8.4 | 9.3 | 13.8 | 5.1 | (8.7) | [1] | 40.3 | [2] | (21.8) | ||||||||
Net Loss | (10.8) | $ 5.2 | $ (53.7) | 3.7 | [1] | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | (26) | (106.6) | (155.1) | [1] | (177.1) | [2] | (141.9) | ||||||||
Eliminations [Member] | |||||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||||||||||||||||
Revenue | (8.7) | ||||||||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | (8.7) | ||||||||||||||||||||||||
Total operating costs and expenses | (8.7) | ||||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Equity in net earnings of subsidiaries | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Total other expenses, net | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Loss before income taxes | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Net Loss | 0.4 | (7.1) | (0.5) | (21.2) | 9.5 | (28.2) | (20.7) | ||||||||||||||||||
Zayo Group, LLC [Member] | |||||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||||||||||||||||
Revenue | 279 | 256 | 552.9 | 507.5 | 1,040.1 | 956.5 | 876.4 | ||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | 81.7 | 74.9 | 163.8 | 158.8 | 313.8 | 290.1 | 255.5 | ||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 60.9 | 18.9 | 120.2 | 146.1 | 266.4 | 327.3 | 229.5 | ||||||||||||||||||
Depreciation and amortization | 84.7 | 78.1 | 171.6 | 157.5 | 321.7 | 307.6 | 301.4 | ||||||||||||||||||
Total operating costs and expenses | 227.3 | 171.9 | 455.6 | 462.4 | 901.9 | 925 | 786.4 | ||||||||||||||||||
Operating income | 51.7 | 84.1 | 97.3 | 45.1 | 138.2 | 31.5 | 90 | ||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (44.8) | (48.9) | (94.3) | (108.5) | (177) | (201.1) | (202.1) | ||||||||||||||||||
Loss on extinguishment of debt | (30.9) | (30.9) | (91.8) | (1.9) | (77.3) | ||||||||||||||||||||
Foreign currency (loss)/gain on intercompany loans | (6.9) | (13.3) | (17.3) | (29) | (23.2) | 3.5 | 0.1 | ||||||||||||||||||
Other income, net | (0.1) | 1.4 | (0.1) | (0.4) | 0.3 | 0.2 | |||||||||||||||||||
Equity in net earnings of subsidiaries | (0.4) | 7.1 | 0.5 | 21.2 | (9.5) | 28.2 | 20.7 | ||||||||||||||||||
Total other expenses, net | (52.2) | (84.6) | (111.1) | (147.3) | (301.9) | (171) | (258.4) | ||||||||||||||||||
Loss before income taxes | (0.5) | (0.5) | (13.8) | (102.2) | (163.7) | (139.5) | (168.4) | ||||||||||||||||||
(Benefit)/provision for income taxes | 10.3 | (4.2) | 12.2 | 4.4 | (8.6) | 37.6 | (26.5) | ||||||||||||||||||
Net Loss | (10.8) | 3.7 | (26) | (106.6) | (155.1) | (177.1) | (141.9) | ||||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||||||||||||||||
Revenue | 51.8 | 30.1 | 103.7 | 60.5 | 151.6 | 102.8 | 85.4 | ||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | 17.1 | 11.1 | 35.7 | 22.8 | 54.4 | 45.5 | 50.4 | ||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 14 | 4.7 | 28 | 15.1 | 38.9 | 28.3 | 9.4 | ||||||||||||||||||
Depreciation and amortization | 18.8 | 5.8 | 38.6 | 10.8 | 42.7 | 13.8 | 9.8 | ||||||||||||||||||
Total operating costs and expenses | 49.9 | 21.6 | 102.3 | 48.7 | 136 | 87.6 | 69.6 | ||||||||||||||||||
Operating income | 1.9 | 8.5 | 1.4 | 11.8 | 15.6 | 15.2 | 15.8 | ||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (0.2) | (0.3) | (0.2) | (0.4) | (20.3) | ||||||||||||||||||||
Loss on extinguishment of debt | (1.7) | ||||||||||||||||||||||||
Other income, net | (0.5) | (0.6) | |||||||||||||||||||||||
Total other expenses, net | (0.2) | (0.8) | (0.2) | (1) | (22) | ||||||||||||||||||||
Loss before income taxes | 1.7 | 7.7 | 1.2 | 10.8 | (6.4) | 15.2 | 15.8 | ||||||||||||||||||
(Benefit)/provision for income taxes | 0.4 | ||||||||||||||||||||||||
Net Loss | 1.7 | 7.7 | 1.2 | 10.4 | (6.4) | 15.2 | 15.8 | ||||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||||||||||||||||
Revenue | 38.8 | 37.8 | 79.8 | 76.5 | 155.4 | 70.4 | 57.9 | ||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation—Note 12) | 13.4 | 11.8 | 25.7 | 23.5 | 45.3 | 7.7 | 16.9 | ||||||||||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 10.1 | 8.5 | 21.4 | 27.5 | 52.8 | 29 | 17.8 | ||||||||||||||||||
Depreciation and amortization | 10.2 | 13 | 20.6 | 24.6 | 41.8 | 16.8 | 13.3 | ||||||||||||||||||
Total operating costs and expenses | 33.7 | 33.3 | 67.7 | 75.6 | 139.9 | 53.5 | 48 | ||||||||||||||||||
Operating income | 5.1 | 4.5 | 12.1 | 0.9 | 15.5 | 16.9 | 9.9 | ||||||||||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (6.2) | (4.2) | (10.5) | 8.6 | (16.7) | (2.4) | (0.4) | ||||||||||||||||||
Loss on extinguishment of debt | (0.8) | ||||||||||||||||||||||||
Foreign currency (loss)/gain on intercompany loans | (0.2) | (0.5) | 1.1 | (1.2) | 1.2 | ||||||||||||||||||||
Other income, net | (1) | (0.2) | 0.5 | 0.1 | |||||||||||||||||||||
Total other expenses, net | (6.4) | (5.2) | (11.2) | 10.2 | (18.7) | (1.2) | (0.3) | ||||||||||||||||||
Loss before income taxes | (1.3) | (0.7) | 0.9 | 11.1 | (3.2) | 15.7 | 9.6 | ||||||||||||||||||
(Benefit)/provision for income taxes | 0.8 | (0.1) | 1.6 | 0.3 | (0.1) | 2.7 | 4.7 | ||||||||||||||||||
Net Loss | $ (2.1) | $ (0.6) | $ (0.7) | $ 10.8 | $ (3.1) | $ 13 | $ 4.9 | ||||||||||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[9] | The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12? Stock-based Compensation. | ||||||||||||||||||||||||
[10] | The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[11] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[12] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |
Condensed Consolidating Fina146
Condensed Consolidating Financial Information (Schedule Of Condensed Consolidating Statements Of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Condensed Cash Flow Statements Captions [Line Items] | ||||||
Net cash provided by operating activities | $ 341.4 | $ 232.6 | $ 607 | $ 562 | $ 404.7 | |
Cash flows from investing activities | ||||||
Purchases of property and equipment, net of stimulus grants | (530.4) | (360.8) | (323.3) | |||
Acquisition of net cash acquired | (117.7) | (126.5) | (855.7) | (393.3) | (2,480.7) | |
Net cash used in investing activities | (449.6) | (371.3) | (1,386.1) | (754.1) | (2,804) | |
Cash flows from financing activities | ||||||
Proceeds from debt | 1,787.3 | 423.6 | 3,189.3 | |||
Proceeds from revolving credit facility | 195 | |||||
Proceeds from equity offerings and contributions | 279.7 | 385 | 5.6 | 344 | ||
Distribution to parent | (1.2) | |||||
Principal payments on long-term debt | (8.3) | (259.7) | (1,288.5) | (18) | (1,058.6) | |
Payment of early redemption fees on debt extinguished | (23.8) | (62.6) | (72.1) | |||
Principal payments on capital lease obligations | (2.2) | (1.3) | (3.5) | (7.9) | (1.9) | |
Payments on revolving credit facility | (195) | |||||
Payment of debt issuance costs | (24.2) | (4.9) | (83.1) | |||
Net cash provided by financing activities | (20.9) | (5.1) | 793.5 | 397.2 | 2,340.2 | |
Effect of changes in foreign exchange rates on cash | (3.3) | (1.6) | (3.8) | 1 | (0.3) | |
Cash flows from continuing operations | (129.1) | (143.8) | 14.4 | 205.1 | (59.1) | |
Cash and cash equivalents, beginning of year | $ 297.4 | 308 | 297.4 | 297.4 | 91.3 | 150.7 |
Cash and cash equivalents, end of period | 152 | 175.6 | 152 | 308 | 297.4 | 91.3 |
Change in restricted cash, net | 22.6 | |||||
Zayo Group, LLC [Member] | ||||||
Condensed Cash Flow Statements Captions [Line Items] | ||||||
Net cash provided by operating activities | 243.8 | 204.4 | 489.3 | 485.5 | 359.3 | |
Cash flows from investing activities | ||||||
Purchases of property and equipment, net of stimulus grants | (436.8) | (316.6) | (299.8) | |||
Acquisition of net cash acquired | (0.1) | (113.5) | (83.2) | (2,489) | ||
Net cash used in investing activities | (283.4) | (208) | (550.3) | (399.8) | (2,788.8) | |
Cash flows from financing activities | ||||||
Proceeds from debt | 1,747.2 | 423.6 | 3,184.4 | |||
Proceeds from revolving credit facility | 195 | |||||
Proceeds from equity offerings and contributions | 205.3 | (290.9) | 11.2 | 344 | ||
Distribution to parent | (1.2) | |||||
Dividends received/(paid) | (70.8) | 18.6 | ||||
Principal payments on long-term debt | (7.1) | (254.4) | (1,288.5) | (18) | (1,058.6) | |
Payment of early redemption fees on debt extinguished | (23.8) | (62.6) | (72.1) | |||
Principal payments on capital lease obligations | (0.7) | (0.5) | (1.7) | (2.1) | (1.8) | |
Payment of)/receipt from intercompany loans | (50.1) | (251.1) | 8.3 | |||
Payments on revolving credit facility | (195) | |||||
Payment of debt issuance costs | (24.2) | (4.9) | (83.1) | |||
Net cash provided by financing activities | (97.5) | (123.5) | 79.3 | 86.7 | 2,362.3 | |
Effect of changes in foreign exchange rates on cash | (4.1) | 0.1 | ||||
Cash flows from continuing operations | 18.3 | 172.4 | (67.2) | |||
Cash and cash equivalents, beginning of year | 260.8 | 274.3 | 256 | 256 | 83.6 | 150.7 |
Cash and cash equivalents, end of period | 129.6 | 137.2 | 129.6 | 274.3 | 256 | 83.6 |
Change in restricted cash, net | 22.6 | |||||
Guarantor Subsidiaries [Member] | ||||||
Condensed Cash Flow Statements Captions [Line Items] | ||||||
Net cash provided by operating activities | 40.3 | 13.8 | 55.7 | 43.2 | 31.8 | |
Cash flows from investing activities | ||||||
Purchases of property and equipment, net of stimulus grants | (47.8) | (28.2) | (14.1) | |||
Acquisition of net cash acquired | (16.7) | (52.5) | (668.3) | (17.8) | 0.4 | |
Net cash used in investing activities | (44.7) | (70.3) | (716.1) | (46) | (13.7) | |
Cash flows from financing activities | ||||||
Proceeds from debt | 4.9 | |||||
Proceeds from equity offerings and contributions | 64.9 | 660.7 | (5.6) | |||
Dividends received/(paid) | 15.8 | (18.6) | ||||
Principal payments on long-term debt | (1.2) | (5.3) | ||||
Principal payments on capital lease obligations | (0.9) | (0.8) | (1.4) | (5.8) | (0.1) | |
Net cash provided by financing activities | 3.4 | 58.8 | 659.3 | 4.4 | (13.8) | |
Effect of changes in foreign exchange rates on cash | 0.8 | (0.1) | ||||
Cash flows from continuing operations | (1.1) | 1.6 | 4.3 | |||
Cash and cash equivalents, beginning of year | 1 | 4.7 | 5.8 | 5.8 | 4.2 | |
Cash and cash equivalents, end of period | 4.1 | 3.7 | 4.1 | 4.7 | 5.8 | 4.2 |
Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Cash Flow Statements Captions [Line Items] | ||||||
Net cash provided by operating activities | 57.3 | 14.4 | 62 | 33.3 | 13.6 | |
Cash flows from investing activities | ||||||
Purchases of property and equipment, net of stimulus grants | (45.8) | (16) | (9.4) | |||
Acquisition of net cash acquired | (101) | (73.9) | (73.9) | (292.3) | 7.9 | |
Net cash used in investing activities | (121.5) | (93) | (119.7) | (308.3) | (1.5) | |
Cash flows from financing activities | ||||||
Proceeds from debt | 40.1 | |||||
Proceeds from equity offerings and contributions | 9.5 | 15.2 | ||||
Dividends received/(paid) | 55 | |||||
Principal payments on capital lease obligations | (0.6) | (0.4) | ||||
Payment of)/receipt from intercompany loans | 50.1 | 251.1 | (8.3) | |||
Net cash provided by financing activities | 73.2 | 59.6 | 54.9 | 306.1 | (8.3) | |
Effect of changes in foreign exchange rates on cash | (3.3) | 1.7 | (3.8) | 1 | (0.3) | |
Cash flows from continuing operations | (2.8) | 31.1 | 3.8 | |||
Cash and cash equivalents, beginning of year | 35.6 | 29 | 35.6 | 35.6 | 3.5 | |
Cash and cash equivalents, end of period | $ 18.3 | $ 34.7 | $ 18.3 | $ 29 | $ 35.6 | $ 3.5 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule of Quarterly Results) (Detail) - USD ($) $ in Millions | Jul. 02, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[7],[8] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [2],[3] | Mar. 31, 2014 | [2],[4] | Dec. 31, 2013 | [2],[5],[6] | Sep. 30, 2013 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | [1] | Jun. 30, 2014 | [2] | Jun. 30, 2013 |
Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||
Revenue | $ 369.6 | $ 361.9 | $ 323.9 | $ 298.1 | $ 283.2 | $ 278.7 | $ 269.7 | $ 736.4 | $ 644.5 | $ 1,347.1 | $ 1,129.7 | $ 1,011 | |||||||||||||
Operating costs and expenses | |||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization and including stock-based compensation) | 112.2 | 107.5 | $ 100.9 | 97.8 | $ 107.3 | 92.8 | 84.9 | 85.9 | 79.7 | 225.2 | 205.1 | 413.5 | 343.3 | 314.1 | |||||||||||
Selling, general and administrative expenses (including stock-based compensation—Note 12) | 85 | 86.4 | [9] | 83 | [9] | 32.1 | [9] | 156.6 | [9] | 124.6 | 96.6 | 87 | 76.4 | 169.6 | 188.7 | 358.1 | [9] | 384.6 | 256.7 | ||||||
Depreciation and amortization | 113.7 | 113.2 | 100.1 | 96.9 | 96 | 91.3 | 84.2 | 81.7 | 81 | 230.8 | 192.9 | 406.2 | 338.2 | 324.5 | |||||||||||
Total operating costs and expenses | 310.9 | 307.1 | 284 | 226.8 | 359.9 | 308.7 | 265.7 | 254.6 | 237.1 | 625.6 | 586.7 | 1,177.8 | 1,066.1 | 895.3 | |||||||||||
Operating income | 58.7 | 54.8 | 56.7 | 97.1 | (39.3) | (10.6) | 17.5 | 24.1 | 32.6 | 110.8 | 57.8 | 169.3 | 63.6 | 115.7 | |||||||||||
Other expenses | |||||||||||||||||||||||||
Interest expense | (51.2) | (53) | (60.7) | (53.4) | (46.9) | (52.6) | [10] | (49.1) | [10] | (50.3) | [10] | (51.5) | [10] | (105) | (100.3) | (214) | (203.5) | [10] | (202.5) | ||||||
Loss on extinguishment of debt | $ (65) | (8.5) | [11] | (54.9) | [11] | (30.9) | [11] | (1.9) | [12] | (30.9) | (94.3) | [11] | (1.9) | [12] | (77.3) | ||||||||||
Foreign currency (loss)/gain on intercompany loans | (7.1) | 16.8 | (13.2) | (13.3) | (14.7) | 3.8 | 0.1 | 0.2 | 0.6 | (17.8) | (27.9) | (24.4) | 4.7 | 0.1 | |||||||||||
Other (expenses)/income, net | (0.1) | (0.3) | (0.1) | (0.1) | 0.3 | 0.1 | (0.2) | (0.2) | (0.4) | 0.3 | 0.3 | ||||||||||||||
Total other expenses, net | (58.4) | (45) | (128.8) | (97.7) | (61.6) | (48.9) | (49) | (51.7) | (50.8) | (123) | (159.3) | (333.1) | (200.4) | (279.4) | |||||||||||
Loss before income taxes | 0.3 | 9.8 | (72.1) | (0.6) | (100.9) | (59.5) | (31.5) | (27.6) | (18.2) | (12.2) | (101.5) | (163.8) | (136.8) | (163.7) | |||||||||||
(Benefit)/provision for income taxes | 11.1 | 4.6 | (18.4) | (4.3) | 9.4 | 10.5 | 12.1 | 8.4 | 9.3 | 13.8 | 5.1 | (8.7) | 40.3 | (21.8) | |||||||||||
Net Loss | $ (10.8) | $ 5.2 | $ (53.7) | $ 3.7 | $ (110.3) | $ (70) | $ (43.6) | $ (36) | $ (27.5) | $ (26) | $ (106.6) | $ (155.1) | $ (177.1) | $ (141.9) | |||||||||||
[1] | The Company realized an increase in revenue and operating expenses beginning July 1, 2014 as a result of the acquisition of AtlantaNap and Neo. | ||||||||||||||||||||||||
[2] | The Company realized an increase in revenue and operating expenses beginning August?1, 2013 as a result of the acquisition of Corelink. | ||||||||||||||||||||||||
[3] | The Company realized an increase in revenue and operating expenses beginning May?16, 2014 as a result of the acquisition of Geo. | ||||||||||||||||||||||||
[4] | The Company realized an increase in revenue and operating expenses beginning March?4, 2014 as a result of the acquisition of CoreXchange. | ||||||||||||||||||||||||
[5] | The Company realized an increase in revenue and operating expenses beginning October?1, 2013 as a result of the acquisition of Access. | ||||||||||||||||||||||||
[6] | The Company realized an increase in revenue and operating expenses beginning October?2, 2013 as a result of the acquisition of Fiberlink. | ||||||||||||||||||||||||
[7] | The Company realized an increase in revenue and operating expenses beginning February 23, 2015 as a result of the acquisition of Latisys. | ||||||||||||||||||||||||
[8] | The Company realized an increase in revenue and operating expenses beginning January 1, 2015 as a result of the acquisition of IdeaTek. | ||||||||||||||||||||||||
[9] | The Company realized an increase in compensation expense in the first quarter as a result of an increase in the estimated fair value of CII common units as a result of the pending IPO. The common unit fair values were further adjusted in second quarter upon completion of the IPO. See Note 12? Stock-based Compensation. | ||||||||||||||||||||||||
[10] | The Company realized an increase in interest expense during the second and fourth quarters of 2014 due to financing transactions completed to increase its borrowings under its term loan facility. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[11] | The Company completed debt refinancing transactions during the second, third and fourth quarters of Fiscal 2015, resulting in a loss on debt extinguishment for those respective periods. See Note 8? Long-Term Debt. | ||||||||||||||||||||||||
[12] | The Company completed a debt refinancing transaction during the second quarter of Fiscal 2014, resulting in a loss on debt extinguishment for that period. See Note 8? Long-Term Debt. |