Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FRONTIER COMMUNICATIONS CORP | ||
Entity Central Index Key | 20,520 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 5,743,714,000 | ||
Entity Common Stock, Shares Outstanding | 1,168,179,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 936 | $ 682 |
Accounts receivable, less allowances of $57 and $72, respectively | 571 | 614 |
Restricted cash | 8,444 | |
Prepaid expenses | 100 | 61 |
Income taxes and other current assets | 80 | 58 |
Total current assets | 10,131 | 1,415 |
Property, plant and equipment, net | 8,493 | 8,566 |
Goodwill | 7,166 | 7,205 |
Other intangibles, net | 1,143 | 1,500 |
Other assets | 151 | 124 |
Total assets | 27,084 | 18,810 |
Current liabilities: | ||
Long-term debt due within one year | 384 | 298 |
Accounts payable | 467 | 379 |
Advanced billings | 160 | 179 |
Accrued other taxes | 87 | 80 |
Accrued interest | 403 | 214 |
Pension and other postretirement benefits | 33 | 124 |
Other current liabilities | 359 | 238 |
Total current liabilities | 1,893 | 1,512 |
Deferred income taxes | 2,666 | 2,868 |
Pension and other postretirement benefits | 1,163 | 1,141 |
Other liabilities | 240 | 238 |
Long-term debt | $ 15,508 | $ 9,393 |
Equity: | ||
Preferred stock, $0.01 par value (50,000 authorized shares, 11.125%, Series A, 19,250 shares issued and outstanding at December 31, 2015) | ||
Common stock, $0.25 par value (1,750,000 authorized shares, 1,168,200 and 1,002,469 outstanding, and 1,192,986 and 1,027,986 issued, at December 31, 2015 and 2014, respectively) | $ 298 | $ 257 |
Additional paid-in capital | 6,034 | 3,990 |
Retained earnings (deficit) | (87) | 109 |
Accumulated other comprehensive loss, net of tax | (353) | (404) |
Treasury stock | (278) | (294) |
Total equity | 5,614 | 3,658 |
Total liabilities and equity | $ 27,084 | $ 18,810 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 57 | $ 72 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Dividend Rate, Percentage | 11.125% | |
Preferred Stock, Shares Issued | 19,250,000 | |
Preferred Stock, Shares Outstanding | 19,250,000 | |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 1,750,000,000 | 1,750,000,000 |
Common stock, shares outstanding (in shares) | 1,168,200,000 | 1,002,469,000 |
Common stock, shares issued (in shares) | 1,192,986,000 | 1,027,986,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Operations [Abstract] | |||
Revenue | $ 5,576 | $ 4,772 | $ 4,762 |
Operating expenses: | |||
Network access expenses | 640 | 465 | 431 |
Network related expenses | 1,287 | 1,118 | 1,084 |
Selling, general and administrative expenses | 1,348 | 1,088 | 1,057 |
Depreciation and amortization | 1,320 | 1,139 | 1,170 |
Pension settlement costs | 44 | ||
Acquisition and integration costs | 236 | 142 | 10 |
Total operating expenses | 4,831 | 3,952 | 3,796 |
Gain on sale of Mohave partnership interest | 15 | ||
Operating income | 745 | 820 | 981 |
Investment and other income, net | 7 | 39 | 9 |
Losses on early extinguishment of debt | 160 | ||
Interest expense | 1,113 | 696 | 667 |
Income (loss) before income taxes | (361) | 163 | 163 |
Income tax expense (benefit) | (165) | 30 | 48 |
Net income (loss) | (196) | 133 | 115 |
Less: Dividends on preferred stock | 120 | ||
Less: Income attributable to the noncontrolling interest in a partnership | 2 | ||
Net income (loss) attributable to Frontier common shareholders | $ (316) | $ 133 | $ 113 |
Basic and diluted net income (loss) per share attributable to Frontier common shareholders (in dollars per share) | $ (0.29) | $ 0.13 | $ 0.11 |
Total weighted average shares outstanding - basic | 1,084,606 | 994,418 | 992,659 |
Total weighted average shares outstanding - diluted | 1,084,606 | 998,162 | 993,997 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ (196) | $ 133 | $ 115 |
Pension settlement costs, net of tax (see Notes 13 and 16) | 27 | ||
Other comprehensive income (loss), net of tax (see Note 13) | 51 | (143) | 196 |
Less: Income attributable to the noncontrolling interest in a partnership | 2 | ||
Comprehensive income (loss) | $ (145) | $ (10) | $ 336 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Millions | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance, beginning at Dec. 31, 2012 | $ 257 | $ 4,640 | $ 63 | $ (484) | $ (369) | $ 12 | $ 4,119 | |
Balance (in shares) at Dec. 31, 2012 | 1,027,986,000 | 29,576,000 | ||||||
Stock plans | (19) | $ 31 | 12 | |||||
Stock plans (in shares) | 1,052,000 | |||||||
Dividends on common stock | (300) | (100) | (400) | |||||
Net income (loss) | 113 | 2 | 115 | |||||
Pension settlement costs, net of tax | 27 | 27 | ||||||
Other comprehensive income (loss), net of tax | 196 | 196 | ||||||
Distributions | (6) | (6) | ||||||
Sale of Mohave partnership interest | $ (8) | (8) | ||||||
Balance, ending at Dec. 31, 2013 | $ 257 | 4,321 | 76 | (261) | $ (338) | 4,055 | ||
Balance (in shares) at Dec. 31, 2013 | 1,027,986,000 | 28,524,000 | ||||||
Stock plans | (30) | $ 44 | 14 | |||||
Stock plans (in shares) | 3,007,000 | |||||||
Dividends on common stock | (301) | (100) | (401) | |||||
Net income (loss) | 133 | 133 | ||||||
Other comprehensive income (loss), net of tax | (143) | (143) | ||||||
Balance, ending at Dec. 31, 2014 | $ 257 | 3,990 | 109 | (404) | $ (294) | $ 3,658 | ||
Balance (in shares) at Dec. 31, 2014 | 1,027,986,000 | 25,517,000 | 1,002,469,000 | |||||
Issuance of stock (in shares) | 19,250,000 | 165,000,000 | ||||||
Issuance of common stock | $ 41 | 758 | $ 799 | |||||
Issuance of preferred stock | 1,866 | 1,866 | ||||||
Stock plans | (4) | $ 16 | 12 | |||||
Stock plans (in shares) | 731,000 | |||||||
Dividends on common stock | (456) | (456) | ||||||
Dividends on preferred stock | (120) | (120) | ||||||
Net income (loss) | (196) | (196) | ||||||
Other comprehensive income (loss), net of tax | 51 | $ 51 | ||||||
Preferred Stock Balance (in shares) at Dec. 31, 2015 | 19,250,000 | 19,250,000 | ||||||
Balance, ending at Dec. 31, 2015 | $ 298 | $ 6,034 | $ (87) | $ (353) | $ (278) | $ 5,614 | ||
Balance (in shares) at Dec. 31, 2015 | 1,192,986,000 | 24,786,000 | 1,168,200,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows provided from (used by) operating activities: | |||
Net income (loss) | $ (196) | $ 133 | $ 115 |
Adjustments to reconcile net income (loss) to net cash provided from operating activities: | |||
Depreciation and amortization | 1,320 | 1,139 | 1,170 |
Losses on early extinguishment of debt | 160 | ||
Pension settlement costs | 44 | ||
Pension/OPEB costs | 10 | (18) | 37 |
Stock based compensation expense | 27 | 23 | 17 |
Gains on sale of assets | (37) | (15) | |
Amortization of deferred financing costs | 191 | 10 | 12 |
Other non-cash adjustments | 22 | (1) | |
Deferred income taxes | (167) | (78) | (7) |
Change in accounts receivable | 62 | (61) | 50 |
Change in accounts payable and other liabilities | 102 | 90 | (6) |
Change in prepaid expenses, income taxes and other current assets | (48) | 47 | (80) |
Net cash provided from operating activities | 1,301 | 1,270 | 1,496 |
Cash flows provided from (used by) investing activities: | |||
Capital expenditures - Business operations | (710) | (572) | (635) |
Capital expenditures - Integration activities | (153) | (116) | |
Network expansion funded by Connect America Fund - Phase I | (22) | (56) | (33) |
Grant funds received for network expansion from Connect America Fund - Phase I | 4 | 64 | |
Proceeds on sale of assets | 22 | 39 | 18 |
Cash transferred (to)/from escrow | (8,444) | 11 | 31 |
Cash paid for an acquisition, net of cash acquired | (17) | (2,018) | |
Other | 2 | 32 | 12 |
Net cash used by investing activities | (9,322) | (2,676) | (543) |
Cash flows provided from (used by) financing activities: | |||
Proceeds from long-term debt borrowings | 6,603 | 1,911 | 750 |
Financing costs paid | (119) | (40) | (19) |
Long-term debt payments | (298) | (260) | (1,563) |
Proceeds from issuance of common stock, net | 799 | ||
Proceeds from issuance of preferred stock, net | 1,866 | ||
Premium paid to retire debt | (159) | ||
Dividends paid on common stock | (456) | (401) | (400) |
Dividends paid on preferred stock | (120) | ||
Other | (2) | (9) | |
Net cash provided from (used by) financing activities | 8,275 | 1,208 | (1,400) |
Increase/(Decrease) in cash and cash equivalents | 254 | (198) | (447) |
Cash and cash equivalents at January 1, | 682 | 880 | 1,327 |
Cash and cash equivalents at December 31, | 936 | 682 | 880 |
Cash paid during the period for: | |||
Interest | 728 | 656 | 668 |
Income taxes, net | 28 | 70 | 94 |
Non-cash investing and financing activities: | |||
Financing obligation for contribution of real property to pension plan | 23 | ||
Reduction of pension obligation | (23) | ||
Increase in capital expenditures due to change in accounts payable | $ (56) | $ (15) | $ 40 |
Description Of Business And Sum
Description Of Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | (1) Description of Business and Summary of Significant Accounting Policies : (a) Description of Business : Frontier Communications Corporation (Frontier) is the fourth largest Incumbent Local Exchange Carrier (ILEC) in the United States, w ith approximately 3.4 million customers, 2.5 million broadband subscribers and 19,200 employees, operating in 28 states. Frontier was incorporated in 1935, originally under the name of Citizens Utilities Company and was known as Citizens Communications Company until July 31, 2008. Frontier and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Effective October 24, 2014, Frontier’s scope of operations and balance sheet capitalization changed materially as a result of the completion of the Connecticut Acquisition, as described in Note 3 - Acquisitions. Financial data presented for Frontier for periods prior to that date is not indicative of the future financial position or operating results for Frontier. (b) Basis of Presentation and Use of Estimates : Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain reclassifications of amounts previously reported have been made to conform to the current presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Frontier had a 33⅓% controlling general partner interest in a partnership entity, the Mohave Cellular Limited Partnership (Mohave). Mohave’s results of operations and balance sheet were included in our consolidated financial statements through its date of disposal on April 1, 2013. The minority interest of the limited partners was reflected in the consolidated balance sheet as “Noncontrolling interest in a partnership” and in the consolidated statements of income as “Income attributable to the noncontrolling interest in a partnership.” On April 1, 2013, Frontier sold its partnership interest in Mohave and received proceeds of $18 million. Frontier recognized a gain on sale of approximately $ 15 million before taxes in 2013. For our financial statements as of and for the period ended December 31, 2015, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-K with the Securities and Exchange Commission (SEC). The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the allowance for doubtful accounts, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, business combinations, and pension and other postretirement benefits, among others. (c) Cash Equivalents : We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. (d) Revenue Recognition : Revenue is recognized when services are provided or when products are delivered to customers. Revenue that is billed in advance includes monthly recurring network access services (including data services), special access services and monthly recurring voice, video and related charges. The unearned portion of these fees is initially deferred as a component of “Advanced billings” on our consolidated balance sheet and recognized as revenue over the period that the services are provided. Revenue that is billed in arrears includes non-recurring network access services (including data services), switched access services and non-recurring voice and video services. The earned but unbilled portion of these fees is recognized as revenue in our consolidated statements of operations and accrued in “Accounts Receivable” on our consolidated balance sheet in the period that the services are provided. Excise taxes are recognized as a liability when billed. Installation fees and their related direct and incremental costs are initially deferred and recognized as revenue and expense over the average term of a customer relationship. We recognize as current period expense the portion of installation costs that exceeds installation fee revenue. Frontier collects various taxes from its customers and subsequently remits these taxes to governmental authorities. Substantially all of these taxes are recorded through the consolidated balance sheet and presented on a net basis in our consolidated statements of operations. We also collect Universal Service Fund (USF) surcharges from customers (primarily federal USF) that we have recorded on a gross basis in our consolidated statements of operations and included within “Revenue” and “Network related expenses” of $151 million, $1 25 million and $118 million for the years ended December 31, 2015, 2014 and 2013, respectively . In 2015 we accepted the FCC’s Connect America Fund (CAF) Phase II offer of support, which is a successor to and augments the USF frozen high-cost support that we had been receiving pursuant to a 2011 FCC order. CAF Phase II funding is a program intended to subsidize the high-cost of establishing and delivering communications services to certain high-cost unserved or underserved areas. We are recognizing these subsidies into revenue consistent with how the costs related to these subsidies are being and are expected to be incurred, which is on a straight line basis. We may reserve against our subsidy revenue which would be based on our ability to meet the buildout requirements of CAF Phase II. CAF Phase II is a multi-year program which requires us to deploy broadband to an agreed upon number of households in each of the states where funding was accepted. Failure to meet our deployment obligations at the end of the program in 2020 will result in a return of a portion of the funding received. We regularly evaluate our ability to meet our broadband deployment obligations and adjust revenue accordingly. We categorize our products, services and other revenues among the following four categories: · Voice services include traditional local and long distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our residential and business customers. Voices services also include the long distance voice origination and termination services that we provide to our business customers and other carriers; · Data and Internet services include broadband services for residential and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (“wireless backhaul”); · Other customer revenue includes residential video services, our provision for bad debts, sales of customer premise equipment to our business customers and directory services; and · Switched Access and Subsidy revenues include revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long distance voice traffic (“switched access”). These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies. We also receive cost subsidies from state and federal authorities, including the Connect America Fund. The following table provides a summary of revenues from external customers by the categories of Frontier’s products and services: For the year ended December 31, ( $ in millions ) 2015 2014 2013 Voice services $ 2,022 $ 1,951 $ 2,045 Data and Internet services 2,337 1,948 1,866 Other 540 354 299 Customer revenue 4,899 4,253 4,210 Switched access and subsidy 677 519 552 Total revenue $ 5,576 $ 4,772 $ 4,762 (e) Property, Plant and Equipment : Property, plant and equipment are stated at original cost, including capitalized interest, or fair market value as of the date of acquisition for acquired properties. Maintenance and repairs are charged to operating expenses as incurred. The gross book value of routine property, plant and equipment retirements is charged against accumulated depreciation. (f) Goodwill and Other Intangibles : Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible net assets acquired. We undertake studies to determine the fair values of assets and liabilities acquired and allocate purchase prices to assets and liabilities, including property, plant and equipment, goodwill and other identifiable intangibles. We examine the carrying value of our goodwill and trade name annually as of December 31, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. We test for goodwill impairment at the “operating segment” level, as that term is defined in GAAP. During the second quarter of 2015, Frontier reorganized into six regional operating segments, which are aggregated into one reportable segment. In conjunction with the reorganization of our operating segments, effective with the second quarter of 2015, we reassigned goodwill using a relative fair value allocation approach. Frontier amortizes finite-lived intangible assets over their estimated useful lives on the accelerated method of sum of the years digits. We review such intangible assets at least annually as of December 31 st to assess whether any potential impairment exists and whether factors exist that would necessitate a change in useful life and a different amortization period. (g) Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of : We review long-lived assets to be held and used, including customer lists, and long-lived assets to be disposed of for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to the future undiscounted net cash flows expected to be generated by the asset. Recoverability of assets held for sale is measured by comparing the carrying amount of the assets to their estimated fair market value. If any assets are considered to be impaired, the impairment is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value. Also, we periodically reassess the useful lives of our tangible and intangible assets to determine whether any changes are required. (h) Investments : Investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting. (i) Income Taxes and Deferred Income Taxes : We file a consolidated federal income tax return. We utilize the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recorded for the tax effect of temporary differences between the financial statement basis and the tax basis of assets and liabilities using tax rates expected to be in effect when the temporary differences are expected to reverse. (j) Stock Plans : We have various stock-based compensation plans. Awards under these plans are granted to eligible employees and directors. Awards may be made in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units or other stock-based awards, including awards with performance, market and time-vesting conditions. Our general policy is to issue shares from treasury upon the grant of restricted shares, earning of performance shares and the exercise of options. The compensation cost recognized is based on awards ultimately expected to vest. GAAP requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. (k) Net Income (Loss) Per Share Attributable to Frontier Common Shareholders : Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding during the period being reported on, excluding unvested restricted stock awards. The impact of dividends paid on unvested restricted stock awards have been deducted in the determination of basic and diluted net income (loss) per share attributable to Frontier common shareholders. Except when the effect would be antidilutive, diluted net income per common share reflects the dilutive effect of certain common stock equivalents, as described further in Note 12 – Net Income (Loss) Per Common Share. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements : Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” This standard requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which Frontier expects to be entitled in exchange for those goods or services. This new standard is effective for annual and interim reporting periods beginning after December 15, 2017. Companies are also permitted to voluntarily adopt the new standard as of the original effective date that was for annual reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. Frontier is currently evaluating the impact of adopting the new standard, but has not yet selected a transition method or determined the impact of adoption on its consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements”. This standard permits an entity to defer and present debt issuance costs related to line of credit arrangements as an asset and to subsequently amortize the deferred debt issuance costs ratably over the term of the line of credit arrangement. These new standards are effective for annual and interim reporting periods beginning after December 15, 2015. Frontier has elected to early adopt these standards. As of December 31, 2014, Frontier reclassified $93 million of debt issuance costs from “Other Assets” to “Long-term debt” in the Consolidated Balance Sheet. Classification of Deferred Taxes In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” This standard eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. Under ASU No. 2015-17, a reporting entity is required to classify deferred tax assets and liabilities as noncurrent in a classified statement of financial position. Current guidance requiring the offsetting of deferred tax assets and liabilities of a tax-paying component of an entity and presentation as a single noncurrent amount is not affected. The amendment applies to all entities that present a classified statement of financial position. This new standard is effective for annual and interim reporting periods beginning after December 15, 2016. Frontier has elected to early adopt this standard. As of December 31, 2014, Frontier reclassified $71 million of deferred tax assets from "Income taxes and other current assets" to "Deferred income taxes" in the Consolidated Balance Sheet. Employee Benefit Plans In July 2015, the FASB issued ASU No. 2015-12, “ Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965)”: There are three parts to the ASU that aim to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II of this ASU requires investments (both participant-directed and nonparticipant-directed investments) of employee benefit plans be grouped only by general type, eliminating the need to disaggregate the investments in multiple ways. Part III of this ASU provides a similar measurement date practical expedient for employee benefit plans as available in ASU No. 2015-04, “Compensation – Retirement Benefits (Topic 715),” which allows employers to measure defined benefit plan assets on a month-end date that is nearest to the year’s fiscal year-end when the fiscal period does not coincide with a month-end. Parts I and II of the new guidance should be applied on a retrospective basis. Part III of the new guidance should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The adoption is not expected to have a material impact on Frontier’s Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | (3) Acquisitions : The Connecticut Acquisition On October 24, 2014, pursuant to the stock purchase agreement dated December 16, 2013, as amended, Frontier acquired the wireline properties of AT&T Inc. (AT&T) in Connecticut (the Connecticut Acquisition) for a purchase price of $2,018 million in cash . Following the Connecticut Acquisition, Frontier now owns and operates the wireline business and fiber optic network servicing residential, commercial and wholesale customers in Connecticut. Frontier also acquired the AT&T U-verse ® video (Frontier TV ® ) and DISH ® satellite TV customers in Connecticut. See Note 7 for further discussion related to financing the Connecticut Acquisition. In connection with the Connecticut Acquisition, Frontier incurred $ 40 million of operating expenses, consisting of $ 1 million and $39 million of acquisition and integration costs, respectively, and $24 million in capital expenditures related to the Connecticut Acquisition during 2015. Frontier incurred $142 million of operating expenses, consisting of $15 million and $127 million of acquisition and integration costs, respectively, and $116 million in capital expenditures related to the Connecticut Acquisition during 2014. Frontier incurred $10 million of acquisition costs related to the Connecticut Acquisition during the fourth quarter of 2013. Our consolidated statements of operations for the years ended December 31, 2015 and 2014 include $1,049 million and $216 million of revenue, respectively, and $100 million and $38 million of operating income, respectively, related to the results of the Connecticut operations. The final allocation of the purchase price presented below represents the effect of recording the fair value of assets acquired, liabilities assumed and related deferred income taxes as of the date of the Connecticut Acquisition, based on the total transaction consideration of $2,018 million. ($ in millions) Current assets $ 69 Property, plant & equipment 1,459 Goodwill 815 Other intangibles - customer base 570 Current liabilities (94) Deferred income taxes (576) Other liabilities (225) Total net assets acquired $ 2,018 The total consideration exceeded the net estimated fair value of the assets acquired and liabilities assumed by $815 million, which we recognized as goodwill. This goodwill is attributable to strategic benefits, including enhanced financial and operational scale, market diversification and leveraged combined networks that we expect to realize. Of this amount, goodwill associated with the Connecticut Acquisition of $75 million is deductible for income tax purposes. The following unaudited pro forma financial information presents the combined results of operations of Frontier and the Connecticut operations as if the Connecticut Acquisition had occurred as of January 1, 2013. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the Connecticut Acquisition been completed as of January 1, 2013. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the future financial position or operating results of Frontier. The unaudited pro forma financial information excludes acquisition and integration costs and does not give effect to any estimated and potential cost savings or other operating efficiencies that may result from the Connecticut Acquisition. ($ in millions, except per share amounts) (Unaudited) For the year ended December 31, 2014 2013 Revenue $ 5,775 $ 6,011 Operating income $ 985 $ 1,049 Net income attributable to Frontier common shareholders $ 191 $ 83 Basic and diluted net income per share attributable to Frontier common shareholders $ 0.19 $ 0.08 The Verizon Transaction On February 5, 2015, we entered into an agreement with Verizon Communications Inc. (Verizon) to acquire Verizon’s wireline operations that provide services to residential, commercial and wholesale customers in California, Florida and Texas for a purchase price of $10,540 million in cash and assumed debt (the Verizon Transaction), with adjustments for working capital. Upon completion of the pending Verizon Transaction, Frontier will operate Verizon properties that included 3.3 million voice connections, 2.1 million broadband connections, and 1.2 million FiOS® video connections. The transaction is expected to close at the end of the first quarter of 2016 subject to the completion of operational matters. Frontier received regulatory approvals from the FCC, the Public Utilities Commission of Texas and the California Public Utilities Commission. Frontier reached agreement with the Communications Workers of America and the International Brotherhood of Electrical Workers, representing employees that support operations in California, Florida and Texas, to extend their existing collective bargaining agreements. In addition, Verizon has conditionally accepted $49 million in annual support in California and Texas under the CAF Phase II program. Acquisition costs include legal, financial advisory, accounting, regulatory and other related costs. Integration costs include expenses incurred to integrate the network and information technology platforms and to enable other integration initiatives. Frontier incurred $196 million of operating expenses, consisting of $44 million of acquisition costs and $152 million of integration costs, related to the pending Verizon Transaction during the year ended December 31, 2015. We also invested $129 million in capital expenditures related to the Verizon Transaction during the year ended December 31, 2015. During 2015, we completed our financing activities associated with the Verizon Transaction, which include: 1) a private debt offering of $6,600 million of unsecured senior notes in September 2015 2) a credit agreement for a new $1,500 million senior secured delayed-draw term loan facility in August 2015, 3) a preferred and common sto ck issuance of $2,750 million in June 2015. Net proceeds from these debt and equity offerings in the amount of $8,440 million are included in “Restricted cash” in the consolidated balance sheet as of December 31, 2015, and together with the proceeds to be received from the delayed draw term loan facility and cash on hand will be sufficient to finance the Verizon Transaction and pay related fees and expenses. See Notes 7 and 9 for further discussion. Restricted cash also includes $4 million of interest income on those net proceeds. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | (4) Accounts Receivable : The components of accounts receivable, net at December 31, 201 5 and 201 4 are as follows: ($ in millions) 2015 2014 Retail and Wholesale $ 569 $ 630 Other 59 56 Less: Allowance for doubtful accounts (57) (72) Accounts receivable, net $ 571 $ 614 An analysis of the activity in the allowance for doubtful accounts for the years ended December 31, 201 5 , 201 4 and 201 3 is as follows: ( $ in millions ) Balance at beginning of Period Charged to Other Revenue Charged (Credited) to Switched and Nonswitched Revenue and Other Accounts Write-offs, net of Recoveries Balance at end of Period 2013 $ 93 $ 69 $ (3) $ (88) $ 71 2014 $ 71 $ 61 $ - $ (60) $ 72 2015 $ 72 $ 67 $ (17) $ (65) $ 57 We maintain an allowance for doubtful accounts based on our estimate of our ability to collect accounts receivable. The provision for uncollectible amounts was $50 million, $61 million and $66 million for the years ended December 31, 201 5 , 201 4 and 201 3 , respectively. Our allowance for doubtful accounts declined in 2015, primarily as a result of the resolution of a principal carrier dispute. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | (5) Property, Plant and Equipment : Property, plant and equipment, net at December 31, 2015 and 2014 are as follows: ($ in millions) Estimated Useful Lives 2015 2014 Land N/A $ 151 $ 147 Buildings and leasehold improvements 41 years 1,327 1,326 General support 5 to 17 years 1,146 1,037 Central office/electronic circuit equipment 5 to 18 years 6,244 5,934 Poles 30 years 712 672 Cable and wire 15 to 25 years 7,280 6,973 Conduit 55 years 515 509 Other 12 to 25 years 47 47 Construction work in progress 379 301 Property, plant and equipment 17,801 16,946 Less: Accumulated depreciation (9,308) (8,380) Property, plant and equipment, net $ 8,493 $ 8,566 Depreciation expense is principally based on the composite group method. Depreciation expense was $983 m illion , $835 million and $841 million for the years ended December 31, 201 5 , 201 4 and 201 3 , respectively. We adopted new estimated remaining useful lives for certain plant assets as of October 1, 2015, as a result of our annual independent study of the estimated remaining useful lives of our plant assets, with an insignificant impact to depreciation expense. |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Other Intangibles [Abstract] | |
Goodwill And Other Intangibles | (6) Goodwill and Other Intangibles : The activity in our goodwill from January 1, 2015 through December 31, 2015 is as follows: ($ in millions) Goodwill Balance at January 1, 2015 $ 7,205 Connecticut Acquisition (Note 3) (53) Other Acquisition 14 Balance at December 31, 2015 $ 7,166 The components of other intangibles at December 31, 201 5 and 201 4 are as follows: ($ in millions) 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other Intangibles: Customer base $ 2,998 $ (1,977) $ 1,021 $ 3,018 $ (1,640) $ 1,378 Trade name 122 - 122 122 - 122 Total other intangibles $ 3,120 $ (1,977) $ 1,143 $ 3,140 $ (1,640) $ 1,500 Amortization expense was $ 337 m illion , $304 million and $329 million for the years ended December 31, 201 5 , 201 4 and 201 3 , respectively. Amortization expense represents the amortization of our customer lists acquired as a result of the Connecticut Acquisition and the acquisition of certain Verizon properties in 2010 (the 2010 Acquisition) with each based on a useful life of 9 to 12 years on an accelerated method. Amortization expense , excluding the impact of the Verizon Transaction and based on our current estimate of useful lives, is estimated to be a pproximately $285 million in 2016, $230 million in 2017, $175 million in 2018 , $120 million in 201 9 and $80 million in 2020. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (7) Long-Term Debt : The activity in our long-term debt from January 1, 2015 to December 31, 201 5 is summarized as follows: Year Ended December 31, 2015 Interest Rate at January 1, Payments New December 31, December 31, ($ in millions) 2015 and Retirements Borrowings 2015 2015 * Senior Unsecured Debt $ 9,750 $ (295) $ 6,600 $ 16,055 9.00% Secured Debt 23 (3) 3 23 3.78% Rural Utilities Service Loan Contracts 8 - - 8 6.15% Total Long-Term Debt $ 9,781 $ (298) $ 6,603 $ 16,086 8.99% Less: Debt Issuance Costs (93) (196) Less: Debt Premium 3 2 Less: Current Portion (298) (384) $ 9,393 $ 15,508 * Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at December 31, 2015 represent a weighted average of multiple issuances. Additional information regarding our senior unsecured d ebt and subsidiary debentures at December 31, 201 5 and 201 4 is as follows: ($ in millions) 2015 2014 Principal Interest Principal Interest Outstanding Rate Outstanding Rate Senior Unsecured Debt Due: 3/15/2015 $ - - $ 105 6.625% 4/15/2015 - - 97 7.875% 10/14/2016 * 344 2.805% (Variable) 402 3.045% (Variable) 4/15/2017 607 8.250% 607 8.250% 10/1/2018 583 8.125% 583 8.125% 3/15/2019 434 7.125% 434 7.125% 10/24/2019 ** 315 3.805% (Variable) 350 3.545% (Variable) 4/15/2020 1,022 8.500% 1,022 8.500% 9/15/2020 1,000 8.875% - - 7/1/2021 500 9.250% 500 9.250% 9/15/2021 775 6.250% 775 6.250% 4/15/2022 500 8.750% 500 8.750% 9/15/2022 2,000 10.500% - - 1/15/2023 850 7.125% 850 7.125% 4/15/2024 750 7.625% 750 7.625% 1/15/2025 775 6.875% 775 6.875% 9/15/2025 3,600 11.000% - - 11/1/2025 138 7.000% 138 7.000% 8/15/2026 2 6.800% 2 6.800% 1/15/2027 346 7.875% 346 7.875% 8/15/2031 945 9.000% 945 9.000% 10/1/2034 1 7.680% 1 7.680% 7/1/2035 125 7.450% 125 7.450% 10/1/2046 193 7.050% 193 7.050% 15,805 9,500 Subsidiary Debentures Due: 2/15/2028 200 6.730% 200 6.730% 10/15/2029 50 8.400% 50 8.400% Total $ 16,055 8.74% *** $ 9,750 7.45% *** * Represents borrowings under the 2011 CoBank Credit Agreement, as defined below. ** Represents borrowings under the 2014 CoBank Credit Agreement, as defined below. ** * Interest rate represents a weighted average of the stated interest rates of multiple issuances. On September 25, 2015, Frontier completed a private offering of $6,600 million aggregate principal amount of unsecured Senior Notes, as follows: $1,000 million of 8.875% Senior Notes due 2020; $2,000 million of 10.500% Senior Notes due 2022; and $3,600 million of 11.000% Senior Notes due 2025 . Each was issued at a price equal to 100% of its principal amount. Frontier intends to use the proceeds from the offering to finance a portion of the cash consideration payable in connection with the Verizon Transaction and to pay related fees and expenses. The net proceeds of the debt offering (after deducting underwriting fees) of $6,485 million are included in “Restricted cash” in the consolidated balance sheet as of December 31, 2015. These funds were deposited in an escrow account to partially fund the acquisition or, if the acquisition is terminated or otherwise not consummated on or before August 6, 2016, to redeem the new Senior Notes at par plus accrued interest. On August 12, 2015, Frontier entered into a credit agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and the lenders party thereto, for a $1,500 million senior secured delayed draw term loan facility (the 2015 Credit Agreement). The term loan will be drawn at the closing of the Verizon Transaction. The final maturity date is the earlier of the fifth anniversary of the draw date or March 31, 2021. Repayment of the outstanding principal balance will be made in quarterly installments, initially in the amount of $19 million per installment, commencing one full fiscal quarter after the draw date. The quarterly installments will increase to $38 million, beginning with the 13th quarterly installment. The remaining outstanding principal balance will be repaid on the final maturity date. Borrowings under the term loan will bear interest based on margins over the Base Rate (as defined in the 2015 Credit Agreement) or LIBOR, at the election of Frontier. Interest rate margins under the facility (ranging from 0.75% to 1.75% for Base Rate borrowings and 1.75% to 2.75% for LIBOR borrowings) are subject to adjustment based on Frontier’s Total Leverage Ratio (as defined in the 2015 Credit Agreement). Borrowings under the 2015 Credit Agreement will be secured by a pledge of the stock of Frontier North Inc., a wholly owned subsidiary, primarily representing Frontier operations in the states of Illinois, Indiana, Michigan, Ohio and Wisconsin. On February 5, 2015, we entered into a commitment for a bridge loan facility (the Verizon Bridge Facility) and recognized related interest expense of $184 million for the year ended December 31, 2015. The accrued liabilities related to the Verizon Bridge Facility of $173 million will be paid after the closing of the Verizon Transaction and are included in “Other current liabilities” in the consolidated balance sheet as of December 31, 2015. The Verizon Bridge Facility terminated, in accordance with its terms, on September 25, 2015. Frontier has a credit agreement with CoBank, ACB, as administrative agent, lead arranger and a lender, and the other lenders party thereto, for a $350 million senior unsecured term loan facility (the 2014 CoBank Credit Agreement). The facility was drawn upon closing of the Connecticut Acquisition with proceeds used to partially finance the acquisition. The maturity date is October 24, 2019. Repayment of the outstanding principal balance will be made in quarterly installments of $9 million, which commenced on March 31, 2015 with the remaining outstanding principal balance to be repaid on the maturity date. Borrowings under the 2014 CoBank Credit Agreement will bear interest based on the margins over the Base Rate (as defined in the 2014 CoBank Credit Agreement) or LIBOR, at the election of Frontier. Interest rate margins under the facility (ranging from 0.875% to 2.875% for Base Rate borrowings and 1.875% to 3.875% for LIBOR borrowings) are subject to adjustments based on our Total Leverage Ratio, as such term is defined in the 2014 CoBank Credit Agreement. The interest rate on this facility at December 31, 2015 was LIBOR plus 3.375% . Frontier has a revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, the lenders party thereto and the other parties named therein (the Revolving Credit Agreement), for a $750 million revolving credit facility (the Revolving Credit Facility) with a scheduled termination date of May 31, 2018. As of December 31, 2015, the Revolving Credit Facility was fully available and no borrowings had been made thereunder. Associated commitment fees under the Revolving Credit Facility will vary from time to time depending on our debt rating (as defined in the Revolving Credit Agreement) and were 0.45% per annum as of December 31, 2015. During the term of the Revolving Credit Facility, Frontier may borrow, repay and reborrow funds, and may obtain letters of credit, subject to customary borrowing conditions. Loans under the Revolving Credit Facility will bear interest based on the alternate base rate or the adjusted LIBO Rate (each as determined in the Revolving Credit Agreement), at our election, plus a margin based on our debt rating (ranging from 0.50% to 1.50% for alternate base rate borrowings and 1.50% to 2.50% for adjusted LIBO Rate borrowings). The interest rate on this facility would have been the alternate base rate plus 1.50% or the adjusted LIBO Rate plus 2.50% , respectively, as of December 31, 2015. Letters of credit issued under the Revolving Credit Facility will also be subject to fees that vary depending on our debt rating. The Revolving Credit Facility is available for general corporate purposes but may not be used to fund dividend payments. Frontier has a credit agreement with CoBank, ACB, as administrative agent, lead arranger and a lender, and the other lenders party thereto, for a $575 million senior unsecured term loan facility with a final maturity of October 14, 2016 (the 2011 CoBank Credit Agreement). The facility was drawn upon execution of the 2011 CoBank Credit Agreement in October 2011. Repayment of the outstanding principal balance is made in quarterly installments of $14 million, which commenced on March 31, 2012, with the remaining outstanding principal balance to be repaid on the final maturity date. Borrowings under the 2011 CoBank Credit Agreement bear interest based on the margins over the Base Rate (as defined in the 2011 CoBank Credit Agreement) or LIBOR, at the election of Frontier. Interest rate margins under the facility (ranging from 0.875% to 2.875% for Base Rate borrowings and 1.875% to 3.875% for LIBOR borrowings) are subject to adjustments based on our Total Leverage Ratio, as such term is defined in the 2011 CoBank Credit Agreement. The interest rate on this facility at December 31, 2015 was LIBOR plus 2.375% . Upon the drawdown of the term loan under the 2015 Credit Agreement in connection with the closing of the Verizon Transaction, borrowings under the 2014 CoBank Credit Agreement, the 2011 CoBank Credit Agreement and the Revolving Credit Facility will become secured debt. These borrowings will be secured, equally and ratably with borrowings under the 2015 Credit Agreement, by a pledge of the stock of Frontier North Inc., a wholly owned subsidiary. On September 17, 2014, Frontier completed a registered debt offering of $775 million aggregate principal amount of 6.250% senior unsecured notes due 2021, and $775 million aggregate principal amount of 6.875% senior unsecured notes due 2025. We received net proceeds, after deducting underwriting fees, of $1,519 million from the offering. Frontier used the net proceeds from the offering of the notes, together with borrowings under the 2014 CoBank Credit Agreement, as defined above, and cash on hand, to finance the Connecticut Acquisition, which closed on October 24, 2014. See Note 3 for further discussion of the Connecticut Acquisition. During 2015 and 2014, we also entered into secured financings totaling $3 million and $11 million , respectively, with four year terms and no stated interest rate for certain equipment purchases. On April 10, 2013 , Frontier completed a registered debt offering of $750 million aggregate principal amount of 7.625% senior unsecured notes due 2024 , issued at a price of 100% of their principal amount. We received net proceeds of $737 million from the offering after deducting underwriting fees. Frontier used the net proceeds from the sale of the notes, together with cash on hand, to finance the cash tender offers discussed below. On April 10, 2013 , Frontier accepted for purchase $471 million aggregate principal amount of its senior notes tendered for total consideration of $532 million, consisting of $194 million aggregate principal amount of Frontier ’s 6.625% senior notes due 2015 (the March 2015 Notes), tendered for total consideration of $216 million, and $277 million aggregate principal amount of Frontier ’s 7.875% senior notes due 2015 (the April 2015 Notes), tendered for total consideration of $316 million. On April 24, 2013 , Frontier accepted for purchase $1 million aggregate principal amount of the March 2015 Notes, tendered for total consideration of $1 million, $1 million of the April 2015 Notes, tendered for total consideration of $1 million, and $225 million aggregate principal amount of Frontier ’s 8.250% senior notes due 2017 (the 2017 Notes), tendered for total consideration of $268 million. The repurchases in the debt tender offers for the senior notes resulted in a loss on the early extinguishment of debt of $105 million, ($ 65 million or $0.06 per share after tax) . Additionally, during the second quarter of 2013, Frontier repurchased $209 million of the 2017 Notes in a privately negotiated transaction, along with $17 million of its 8.125% senior notes due 2018 and $79 million of its 8.500% senior notes due 2020 in open market repurchases. These transactions resulted in a loss on the early extinguishment of debt of $55 million ($ 34 million or $0.04 per share after tax) . As of December 31, 201 5 , we were in compliance with all of our debt and credit facility covenants. Our scheduled principal payments are as follows as of December 31, 201 5 : Principal ($ in millions) Payments 2016 $ 384 2017 $ 646 2018 $ 620 2019 $ 645 2020 $ 2,022 Thereafter $ 11,769 Other Obligations During 20 13, Frontier contributed four real estate properties to its qualified defined benefit pension plan. The pension plan obtained independent appraisals of the properties and, based on these appraisals, the pension plan recorded the contributions at their fair value of $23 million. Frontier has entered into leases for the contributed properties with initial terms of 15 years at a combined aggregate annual rent of approximately $2 million. The properties are managed on behalf of the pension plan by an independent fiduciary, and the terms of the leases were negotiated with the fiduciary on an arm’s-length basis. The contribution and leaseback of the properties was treated as a financing transaction and, accordingly, Frontier continue s to depreciate the carrying value of the properties in its financial statements and no gain or loss was recognized. An obligation of $23 million was recorded in our consolidated balance sheet within “Other liabilities” and the liabilit y is reduced annually by a portion of the lease payments made to the pension plan. During 201 2 , Frontier entered into a sale and leaseback arrangement for a facility in Everett, Washington and entered into a capital lease for the use of fiber in the state of Minnesota. These agreements have lease terms of 12 and 23 years, respectively. These capital lease obligations are included in our consolidated balance sheet within “Other liabilities” and “Other current liabilities.” Future minimum payments for finance lease obligations and capital lease obligations as of December 31, 201 5 are as follows: ($ in millions) Finance Lease Obligations Capital Lease Obligations Year ending December 31: 2016 $ 7 $ 3 2017 7 3 2018 8 3 2019 8 4 2020 8 4 Thereafter 55 13 Total future payments 93 30 Less: Amounts representing interest (52) (7) Present value of minimum lease payments $ 41 $ 23 |
Investment and Other Income, Ne
Investment and Other Income, Net | 12 Months Ended |
Dec. 31, 2015 | |
Investment and Other Income, Net [Abstract] | |
Investment and Other Income, Net | (8) Investment and Other Income, Net : The components of investment and other income, net for the years ended December 31, 2015, 2014 and 2013 are as follows: ( $ in millions ) 2015 2014 2013 Gain on sale of Fairmount Cellular LLC $ - $ 25 $ - Gain on sale of 700 MHz spectrum - 12 - Interest and dividend income 7 2 2 Investment gain - - 2 Gain on expiration/settlement of customer advances - - 3 Split-dollar life insurance proceeds - - 2 Total investment and other income, net $ 7 $ 39 $ 9 During 2015, we received $7 million in interest and dividend income. During 2014, we sold assets that were unrelated to Frontier ’s operations and recognized a gain of $25 million associated with the sale of our interest in Fairmount Cellular LLC and recognized a gain of $12 million related to the sale of our 700 MHz spectrum. During 201 3, we recognized income of $ 3 million in connection with certain retained liabilities that have terminated, associated with customer advances for construction from our disposed water properties. W e also recognized investment gains of $ 2 million associated with cash received in connection with our previously written-off investment in Adelphia and $2 million in the settlement of a split-dollar life insurance policy for a former senior executive. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2015 | |
Capital Stock [Abstract] | |
Capital Stock | (9) Capital Stock : We are authorized to issue up to 1,750,000,000 shares of common stock and 50,000,000 shares of preferred stock. The amount and timing of dividends payable on common stock are, subject to applicable law, within the sole discretion of our Board of Directors. Common Stock Offering On June 10, 2015, we completed a registered offering of 150,000,000 shares of our common stock, par value $0.25 per share, at an offering price of $5 per share. On June 24, 2015, Frontier issued an additional 15,000,000 shares of common stock in connection with the over-allotment option that was exercised in full by the underwriters. Aggregate net proceeds were approximately $799 million after deducting commissions and estimated expenses. We intend to use the net proceeds from this offering to fund a portion of the acquisition price of the Verizon Transaction and related fees and expenses. Mandatory Convertible Preferred Stock (Series A) Offering On June 10, 2015, we also completed a registered offering of 17,500,000 shares of our 11.125% Mandatory Convertible Preferred Stock, Series A, par value $0.01 per share (the “Series A Preferred Stock”), at an offering price of $100 per share. On June 24, 2015, Frontier issued an additional 1,750,000 shares of Series A Preferred Stock in connection with the over-allotment option that was exercised in full by the underwriters. Aggregate net proceeds of the offering were $1,866 million after deducting commissions and estimated expenses. We intend to use the net proceeds from this offering to fund a portion of the acquisition price of the Verizon Transaction and related fees and expenses. Unless converted earlier, each share of the Series A Preferred Stock will automatically convert on June 29, 2018 into between 17.0213 and 20.0000 shares of common stock, depending on the applicable market value of our common stock, subject to anti-dilution adjustments. Subject to certain restrictions, at any time prior to June 29, 2018, holders of the Series A Preferred Stock may elect to convert all or a portion of their shares into common stock at the minimum conversion rate then in effect. Dividends on shares of the Series A Preferred Stock are payable on a cumulative basis when, as and if declared by our Board of Directors (or an authorized committee thereof) at an annual rate of 11.125% on the liquidation preference of $100.00 per share, on the last business day of March, June, September and December of each year, commencing on September 30, 2015 to, and including, the mandatory conversion date. Series A Preferred Stock dividends of $120 million were paid in 2015. Pursuant to the terms of the Verizon Transaction, $1,955 million of the $2,665 million in net proceeds from the equity offerings were deposited into escrow and are included in “Restricted cash” in the consolidated balance sheet as of December 31, 2015. Upon closing of the Verizon Transaction, the funds will be released and used to fund a portion of the purchase price. If the Verizon Transaction is terminated, the funds will be released and become unrestricted cash of Frontier. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2015 | |
Stock Plans [Abstract] | |
Stock Plans | (10) Stock Plans : At December 31, 2015, we had six stock-based compensation plans under which grants were made and awards remained outstanding. No further awards may be granted under four of the plans: the 1996 Equity Incentive Plan (the 1996 EIP), the Amended and Restated 2000 Equity Incentive Plan (the 2000 EIP), the 2009 Equity Incentive Plan (the 2009 EIP) and the Non-Employee Directors’ Deferred Fee Equity Plan (the Deferred Fee Plan). At December 31, 2015, there were 22,541,000 shares authorized for grant and 12,475,000 shares available for grant under the 2013 Equity Incentive Plan (the 2013 EIP and together with the 1996 EIP, the 2000 EIP and the 2009 EIP, the EIPs) and the Non-Employee Directors’ Equity Incentive Plan (the Directors’ Equity Plan, and together with the Deferred Fee Plan, the Director Plans). Our general policy is to issue shares from treasury upon the grant of restricted shares and the exercise of options. 1996, 2000, 2009 and 2013 Equity Incentive Plans Since the expiration dates of the 1996 EIP, the 2000 EIP and the 2009 EIP on May 22, 2006, May 14, 2009 and May 8, 2013, respectively, no awards have been or may be granted under the 1996 EIP, the 2000 EIP and the 2009 EIP. Under the 2013 EIP, awards of our common stock may be granted to eligible employees in the form of incentive stock options, non-qualified stock options, SARs, restricted stock, performance shares or other stock-based awards. As discussed under the Non-Employee Directors’ Compensation Plans below, prior to May 25, 2006 non-employee directors received an award of stock options under the 2000 EIP upon commencement of service. At December 31, 2015, there were 20,000,000 shares authorized for grant under the 2013 EIP and 11,998,000 shares available for grant. No awards may be granted more than 10 years after the effective date (May 8, 2013) of the 2013 EIP plan. The exercise price of stock options and SARs under the EIPs generally are equal to or greater than the fair market value of the underlying common stock on the date of grant. Stock options are not ordinarily exercisable on the date of grant but vest over a period of time (generally four years). Under the terms of the EIPs, subsequent stock dividends and stock splits have the effect of increasing the option shares outstanding, which correspondingly decrease the average exercise price of outstanding options. Performance Shares On February 15, 2012, Frontier ’s Compensation Committee, in consultation with the other non-management directors of Frontier ’s Board of Directors and the Committee’s independent executive compensation consultant, adopted the Frontier Long-Term Incentive Plan (the LTIP). LTIP awards are granted in the form of performance shares. The LTIP is currently offered under Frontier ’s 2009 EIP and 2013 EIP, and participants consist of senior vice presidents and above. The LTIP awards have performance, market and time-vesting conditions. Beginning in 2012, during the first 90 days of a three -year performance period (a Measurement Period), a target number of performance shares are awarded to each LTIP participant with respect to the Measurement Period. The performance metrics under the LTIP are (1) annual targets for operating cash flow based on a goal set during the first 90 days of each year in the three-year Measurement Period and (2) an overall performance “modifier” set during the first 90 days of the Measurement Period, based on Frontier ’s total return to stockholders (i.e., Total Shareholder Return or TSR) relative to the Integrated Telecommunications Services Group (GICS Code 50101020) for the three-year Measurement Period. Operating cash flow performance is determined at the end of each year and the annual results will be averaged at the end of the three-year Measurement Period to determine the preliminary number of shares earned under the LTIP award. The TSR performance measure is then applied to decrease or increase payouts based on Frontier ’s three year relative TSR performance. LTIP awards, to the extent earned, will be paid out in the form of common stock shortly following the end of the three-year Measurement Period. In 2012, the Compensation Committee granted approximately 979,000 performance shares under the LTIP and set the operating cash flow performance goal for the first year in the 2012-2014 Measurement Period and the TSR modifier for the three-year Measurement Period. In 2013, the Compensation Committee granted approximately 1,124,000 performance shares under the LTIP and set the operating cash flow performance goal for 2013, which applies to the first year of the 2013-2015 Measurement Period and the second year of the 2012-2014 Measurement Period. On February 17, 2014, the Compensation Committee granted approximately 1,028,000 performance shares under the LTIP and set the operating cash flow performance goal for 2014, which applies to the first year in the 2014-2016 Measurement Period, the second year of the 2013-2015 Measurement Period and the third year of the 2012-2014 Measurement Period. On February 25, 2015, the Compensation Committee granted approximately 665,000 performance shares under the LTIP and set the operating cash flow performance goal for 2015, which applies to the first year in the 2015-2017 measurement period, the second year of the 2014-2016 measurement period and the third year of the 2013-2015 measurement period. The number of shares of common stock earned at the end of each three-year Measurement Period may be more or less than the number of target performance shares granted as a result of operating cash flow and TSR performance. An executive must maintain a satisfactory performance rating during the Measurement Period and must be employed by Frontier at the end of the three-year Measurement Period in order for the award to vest. The Compensation Committee will determine the number of shares earned for each three year Measurement Period in February of the year following the end of the Measurement Period. The following summary presents information regarding LTIP target performance shares as of December 31, 2015 and changes during the three years then ended with regard to LTIP shares awarded under the 2009 EIP and the 2013 EIP: Number of Shares (in thousands) Balance at January 1, 2013 979 LTIP target performance shares granted 1,124 LTIP target performance shares forfeited (354) Balance at December 31, 2013 1,749 LTIP target performance shares granted 1,037 LTIP target performance shares forfeited (104) Balance at December 31, 2014 2,682 LTIP target performance shares granted 738 LTIP target performance shares earned (743) LTIP target performance shares forfeited (152) Balance at December 31, 2015 2,525 For purposes of determining compensation expense, the fair value of each performance share is measured at the end of each reporting period and, therefore, will fluctuate based on the price of Frontier common stock as well as performance relative to the targets. Frontier recognized an expense of $7 million, $4 million and $1 million during 2015, 2014 and 2013, respectively, for the LTIP. Restricted Stock The following summary presents information regarding unvested restricted stock as of December 31, 2015 and changes during the three years then ended with regard to restricted stock under the 2009 EIP and the 2013 EIP: Weighted Number of Average Aggregate Shares Grant Date Fair Value (in thousands) Fair Value (in millions) Balance at January 1, 2013 7,049 $ 6.08 $ 30 Restricted stock granted 3,360 $ 4.10 $ 16 Restricted stock vested (3,097) $ 6.78 $ 14 Restricted stock forfeited (1,078) $ 5.26 Balance at December 31, 2013 6,234 $ 4.80 $ 29 Restricted stock granted 4,314 $ 4.91 $ 29 Restricted stock vested (2,372) $ 5.22 $ 16 Restricted stock forfeited (369) $ 4.55 Balance at December 31, 2014 7,807 $ 4.75 $ 52 Restricted stock granted 2,815 $ 7.92 $ 13 Restricted stock vested (3,215) $ 4.89 $ 15 Restricted stock forfeited (359) $ 5.10 Balance at December 31, 2015 7,048 $ 5.93 $ 33 For purposes of determining compensation expense, the fair value of each restricted stock grant is estimated based on the average of the high and low market price of a share of our common stock on the date of grant. Total remaining unrecognized compensation cost associated with unvested restricted stock awards at December 31, 2015 was $24 million and the weighted average period over which this cost is expected to be recognized is approximately 1.2 years. We have granted restricted stock awards to employees in the form of our common stock. None of the restricted stock awards may be sold, assigned, pledged or otherwise transferred, voluntarily or involuntarily, by the employees until the restrictions lapse, subject to limited exceptions. The restrictions are time-based. Compensation expense, recognized in “Selling, general and administrative expenses”, of $20 million, $16 million and $14 million, for the years ended December 31, 2015, 2014 and 2013, respectively, has been recorded in connection with these grants. Stock Options The following summary presents information regarding outstanding stock options as of December 31, 2015 and changes during the year then ended with regard to options under the EIPs: Shares Weighted Weighted Subject to Average Average Aggregate Option Option Price Remaining Intrinsic (in thousands) Per Share Life in Years Value Balance at January 1, 2015 83 $ 13.23 0.8 $ - Options granted - $ - Options exercised - $ - Options canceled, forfeited or lapsed (33) $ 12.96 Balance at December 31, 2015 50 $ 13.40 - $ - The number of options exercisable at December 31, 2015, 2014 and 2013 were 50,000 , 83,000 and 83,000 , with a weighted average exercise price of $13.40 , $ 13.23 and $13.23 , respectively. No stock options were granted or exercised during 2015, 2014 or 2013. There is no remaining unrecognized compensation cost associated with stock options at December 31, 2015. Non-Employee Directors’ Compensation Plans Prior to October 1, 2010, non-employee directors received stock options upon joining the Board of Directors. These options were awarded under the Directors’ Equity Plan commencing May 25, 2006. Prior thereto, these options were awarded under the 2000 EIP. Options awarded to directors under the 2000 EIP are included in the above tables. As of October 1, 2013, stock units are credited to the director’s account in an amount that is determined as follows: the total cash value of the fees payable to the director is divided by the closing prices of Frontier common stock on the grant date of the units. Prior to October 1, 2013, stock units were credited to the director’s account in an amount that was determined as follows: the total cash value of the fees payable to the director divided by 85% of the closing prices of Frontier common stock on the grant date of the units. Units are credited to the director’s account quarterly. Directors must also elect to convert the units to either common stock (convertible on a one -to-one basis) or cash upon retirement or death. Dividends are paid on stock units held by directors at the same rate and at the same time as we pay dividends on shares of our common stock. Dividends on stock units are paid in the form of additional stock units. The number of shares of common stock authorized for issuance under the Directors’ Equity Plan is 2,541,000 , which includes 541,000 shares that were available for grant under the Deferred Fee Plan on the effective date of the Directors’ Equity Plan. In addition, if and to the extent that any “plan units” outstanding on May 25, 2006 under the Deferred Fee Plan are forfeited or if any option granted under the Deferred Fee Plan terminates, expires, or is cancelled or forfeited, without having been fully exercised, shares of common stock subject to such “plan units” or options cancelled shall become available under the Directors’ Equity Plan. At December 31, 2015, there were 477,000 shares available for grant. There were 10 directors participating in the Directors’ Plans during all or part of 2015. The total plan units earned were 334,188, 237,607 and 374,383 in 2015, 2014 and 2013 , respectively . Options granted prior to the adoption of the Directors’ Equity Plan were granted under the 2000 EIP. At December 31, 2015, 40,000 options were outstanding and exercisable under the Director Plans at a weighted average exercise price of $10.37 . To the extent directors elect to receive the distribution of their stock unit account in cash, they are considered liability-based awards. To the extent directors elect to receive the distribution of their stock unit accounts in common stock, they are considered equity-based awards. Compensation expense for stock units that are considered equity-based awards is based on the market value of our common stock at the date of grant. Compensation expense for stock units that are considered liability-based awards is based on the market value of our common stock at the end of each period. In connection with the Director Plans, compensation costs associated with the issuance of stock units were ($1) million, $4 million and $2 million in 2015, 2014 and 2013, respectively. Cash compensation associated with the Director Plans was $1 million in 2015, 2014 and 2013, respectively. These costs are recognized in “Selling, general and administrative expenses”. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | (11 ) Income Taxes : The following is a reconciliation of the provision for income taxes computed at federal statutory rates to the effective rates for the years ended December 31, 201 5 , 201 4 and 201 3 : 2015 2014 2013 Consolidated tax provision at federal statutory rate 35.0 % 35.0 % 35.0 % State income tax provisions, net of federal income tax benefit 8.7 1.6 (2.7) Noncontrolling interest - - (0.6) Tax reserve adjustment (0.3) 6.9 (1.1) Domestic production activities deduction - (8.7) - Changes in certain deferred tax balances 0.8 (14.1) (4.0) IRS audit adjustments - - 3.2 Federal research and development credit 1.5 (3.3) (3.2) Non-deductible transaction costs 0.4 1.0 2.0 All other, net (0.3) 0.3 0.4 Effective tax rate 45.8 % 18.7 % 29.0 % Income taxes for 2015 include the impact of a $3 million benefit arising from the adjustment of deferred tax balances and a $5 million benefit from the federal research and development credit. Income taxes for 201 4 include the impact of a $23 million benefit from the reduction in deferred tax liabilities arising primarily from the inclusion of the Connecticut operations in the state unitary filings, a $14 million benefit from the domestic production activities deduction and a $5 million benefit from federal research and development credits, partially offset by the impact of a charge of $11 million resulting from an increase in tax reserves and a charge of $2 million resulting from non-deductible transaction costs. Income taxes for 201 3 reflect the impact of a $7 million net benefit resulting from the adjustment of deferred tax balances, a $5 million benefit from federal research and development credits and a $2 million benefit from the net reversal of reserves for uncertain tax positions, partially offset by the impact of a charge of $5 million resulting from the settlement of the 2010 IRS audit, and a charge of $3 million resulting from non-deductible transaction costs. As a result of the retrospective implementation of Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , Frontier offset all deferred tax liabilities and assets, as well as any related valuation allowance, and is presenting them as a single non-current amount within Deferred income taxes in the consolidated balance sheet as of December 31, 2015 and 2014. The components of the net deferred income tax liability (asset) at December 31 are as follows: ( $ in millions ) 2015 2014 Deferred income tax liabilities: Property, plant and equipment basis differences $ 2,401 $ 2,451 Intangibles 960 1,076 Other, net 15 24 $ 3,376 $ 3,551 Deferred income tax assets: Pension liability 222 247 Tax operating loss carryforward 295 162 Employee benefits 262 304 Accrued expenses 50 55 Allowance for doubtful accounts 10 16 Other, net 48 39 887 823 Less: Valuation allowance (177) (140) Net deferred income tax asset 710 683 Net deferred income tax liability $ 2,666 $ 2,868 Our federal net operating loss carryforward as of December 31, 2015 is estimated at $244 million. The federal loss carryforward will expire in 2035. O ur state tax operating loss carryforward as of De cember 31, 2015 is estimated at $4.1 billion. A portion of our state loss carryforward will continue to expire annually through 203 5, unless otherwise used . The provision (benefit) for federal and state income taxes, as well as the taxes charged or credited to equity of Frontier, includes amounts both payable currently and deferred for payment in future periods as indicated below: ( $ in millions ) 2015 2014 2013 Income tax expense (benefit): Current: Federal $ 8 $ 98 $ 55 State (6) 10 - Total Current 2 108 55 Deferred: Federal (126) (34) 13 State (41) (44) (20) Total Deferred (167) (78) (7) Total income tax expense (benefit) (165) 30 48 Income taxes charged (credited) to equity of Frontier: Utilization of the benefits arising from restricted stock - - 2 Deferred income taxes (benefits) arising from the recognition of additional pension/OPEB liability 36 (90) 132 Total income taxes charged (credited) to equity of Frontier 36 (90) 134 Total income taxes $ (129) $ (60) $ 182 U.S. GAAP requires applying a “more likely than not” threshold to the recognition and derecognition of uncertain tax positions either taken or expected to be taken in Frontier ’s income tax returns. The total amount of our gross tax liability for tax positions that may not be sustained under a “more likely than not” threshold amounts to $20 million as of December 31, 201 5 including interest of $1 million. The amount of our uncertain tax positions for which the statutes of limitations are expected to expire during the next twelve months and which would affect our effective tax rate is $1 million as of December 31, 2015. Frontier ’s policy regarding the classification of interest and penalties is to include these amounts as a component of income tax expense. This treatment of interest and penalties is consistent with pri or periods. We are subject to income tax examinations generally for the years 2012 forward for federal and 200 8 forward for state filing jurisdictions. We also maintain uncertain tax positions in various state jurisdictions. The following table sets forth the changes in Frontier ’s balance of unrecognized tax benefits for the years ended December 31, 201 5 and 201 4 : ($ in millions) 2015 2014 Unrecognized tax benefits - beginning of year $ 19 $ 9 Gross increases - current year tax positions 2 13 Gross decreases - expired statute of limitations (2) (3) Unrecognized tax benefits - end of year $ 19 $ 19 The amounts above exclude $1 million of accrued interest as of December 31, 201 5 and 201 4 , respectively, that we have recorded and would be payable should Frontier ’s tax positions not be sustained. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | (1 2 ) Net Income (Loss) Per Share : The reconciliation of the net income per share calculation for the years ended December 31, 201 5 , 201 4 and 201 3 is as follows: ( $ in millions and shares in thousands, except per share amounts ) 2015 2014 2013 Net income (loss) used for basic and diluted earnings per share: Net income (loss) attributable to Frontier common shareholders $ (316) $ 133 $ 113 Less: Dividends paid on unvested restricted stock awards (3) (3) (3) Total basic and diluted net income (loss) attributable to Frontier common shareholders $ (319) $ 130 $ 110 Basic earnings per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 1,091,798 1,001,812 999,126 Less: Weighted average unvested restricted stock awards (7,192) (7,394) (6,467) Total weighted average shares outstanding - basic 1,084,606 994,418 992,659 Basic net income (loss) per share attributable to Frontier common shareholders $ (0.29) $ 0.13 $ 0.11 Diluted earnings per share: Total weighted average shares outstanding - basic 1,084,606 994,418 992,659 Effect of dilutive shares - 3,744 1,338 Total weighted average shares outstanding - diluted 1,084,606 998,162 993,997 Diluted net income (loss) per share attributable to Frontier common shareholders $ (0.29) $ 0.13 $ 0.11 In calculating diluted net loss per share for the year ended December 31, 2015, the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive. Stock Options For the years ended December 31, 2015, 2014 and 2013, options to purchase 50,000 , 83,000 and 83,000 shares, respectively, issuable under employee compensation plans were excluded from the computation of diluted earnings per share (EPS) for those periods because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be antidilutive. Stock Units At December 31, 2015, 2014 and 2013, we had 1 ,437,183, 1,102,995 and 1,238,542 stock units, respectively, issued under the Director Plans. These securities have not been included in the diluted income per share of common stock calculation because their inclusion would have an antidilutive effect. Mandatory Convertible Preferred Stock The impact of the common share equivalents associated with the 19,250,000 shares of Series A Preferred stock described above were not included in the calculation of diluted EPS as of December 31, 2015, as their impact was anti-dilutive. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (13 ) Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting shareholders’ investment and pension/postretirement benefit (OPEB) liabilities that, under GAA P, are excluded from net income/(loss). The components of accumulated other comprehensive loss, net of tax at December 31, 201 5 , 201 4 and 201 3, and changes for the years then ended, are as follows: ($ in millions) Pension Costs OPEB Costs Deferred taxes on pension and OPEB costs Total Balance at January 1, 2013 $ (698) $ (74) $ 288 $ (484) Other comprehensive income (loss) before reclassifications 205 67 (100) 172 Amounts reclassified from accumulated other comprehensive income (loss) 37 2 (15) 24 Recognition of net actuarial loss for pension settlement costs 44 - (17) 27 Net current-period other comprehensive income (loss) 286 69 (132) 223 Balance at December 31, 2013 (412) (5) 156 (261) Other comprehensive income (loss) before reclassifications (140) (113) 98 (155) Amounts reclassified from accumulated other comprehensive income (loss) 20 (1) (7) 12 Net current-period other comprehensive income (loss) (120) (114) 91 (143) Balance at December 31, 2014 (532) (119) 247 (404) Other comprehensive income (loss) before reclassifications (81) 136 (24) 31 Amounts reclassified from accumulated other comprehensive income (loss) 29 3 (12) 20 Net current-period other comprehensive income (loss) (52) 139 (36) 51 Balance at December 31, 2015 $ (584) $ 20 $ 211 $ (353) The significant items reclassified from each component of accumulated other comprehensive loss for the years ended December 31, 201 5 , 201 4 and 201 3 are as follows: ($ in millions) Amount Reclassified from Accumulated Other Comprehensive Loss (a) Details about Accumulated Other Comprehensive Loss Components 2015 2014 2013 Affected Line Item in the Statement Where Net Income (Loss) is Presented Amortization of Pension Cost Items (b) Actuarial gains (losses) (29) (20) (37) Pension settlement costs - - (44) (29) (20) (81) Income (loss) before income taxes Tax impact 11 7 31 Income tax (expense) benefit $ (18) $ (13) $ (50) Net income (loss) Amortization of OPEB Cost Items (b) Prior-service costs $ 5 $ 4 $ 6 Actuarial gains (losses) (8) (3) (8) (3) 1 (2) Income (loss) before income taxes Tax impact 1 - 1 Income tax (expense) benefit $ (2) $ 1 $ (1) Net income (loss) (a) Amounts in parentheses indicate losses. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB cost s (see Note 1 6 - Retirement Plans for additional details) . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | (14 ) Segment Information : We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to residential, business and wholesale customers and is typically the incumbent voice services provider in its service areas. We have utilized the aggregation criteria to combine our six operating regions because all of our regions share similar characteristics, in that they provide the same products and services to similar customers using comparable technologies in all of t he states in which we operate. The regulatory structure is generally similar. Differences in the regulatory regime of a particular state do not significantly impact the economic characteristics or operating results of a particular property . |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | (15 ) Quarterly Financial Data (Unaudited) : ($ in millions, except per share amounts) 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Revenue $ 1,371 $ 1,368 $ 1,424 $ 1,413 $ 5,576 Operating income 163 193 207 182 745 Net (loss) attributable to Frontier common shareholders (51) (28) (81) (156) (316) Basic net (loss) per share attributable to Frontier common shareholders $ (0.05) $ (0.03) $ (0.07) $ (0.14) $ (0.29) 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Revenue $ 1,154 $ 1,147 $ 1,141 $ 1,330 $ 4,772 Operating income 226 224 197 173 820 Net income attributable to Frontier common shareholders 39 38 42 14 133 Basic net income per share attributable to Frontier common shareholders $ 0.04 $ 0.04 $ 0.04 $ 0.01 $ 0.13 The quarterly net income (loss) per share amounts ar e rounded to the nearest cent. Annual net income (loss) per share may vary depending on the effect of such rounding. The change in revenue, operating income, net income (loss) and net income (loss) per share during the fourth quarter of 2014 and each quarter of 2015 reflects the additional results of operations related to the Connecticut Acquisition, as described further in Note 3. We recognized $57 million ( $35 million or $0.04 per share after tax), $35 million ( $23 million or $0.02 per share after tax), $58 million ( $27 million or $0.02 per share after tax) and $ 86 million ( $47 million or $0.04 per share after tax ) of acquisition and integration costs during the first, second, third and fourth quarters of 2015, respectively. We recognized $11 million ( $7 million or $0.01 per share after tax), $19 million ( $13 million or $0.01 per share after tax), $42 million ( $27 million or $0.03 per share after tax ) and $70 million ( $44 million or $0.04 per share after tax ) of acquisition and integration costs during the first, second, third and fourth quarters of 2014, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Retirement Plans | (1 6 ) Retirement Plans : We sponsor a noncontributory defined benefit pension plan covering a significant number of our former and current employees and other postretirement benefit plans that provide medical, dental, life insurance and other benefits for covered retired employees and their beneficiaries and covered dependents. The benefits are based on years of service and final average pay or career average pay. Contributions are made in amounts sufficient to meet ERISA funding requirements while considering tax deductibility. Plan assets are invested in a diversified portfolio of equity and fixed-income securities and alternative investments. The accounting results for pension and other postretirement benefit costs and obligations are dependent upon various actuarial assumptions applied in the determination of such amounts. These actuarial assumptions include the following: discount rates, expected long-term rate of return on plan assets, future compensation increases, employee turnover, healthcare cost trend rates, expected retirement age, optional form of benefit and mortality. We review these assumptions for changes annually with our independent actuaries. We consider our discount rate and expected long-term rate of return on plan assets to be our most critical assumptions. The discount rate is used to value, on a present value basis, our pension and other postretirement benefit obligations as of the balance sheet date. The same rate is also used in the interest cost component of the pension and postretirement benefit cost determination for the following year. The measurement date used in the selection of our discount rate is the balance sheet date. Our discount rate assumption is determined annually with assistance from our independent actuaries based on the pattern of expected future benefit payments and the prevailing rates available on long-term, high quality corporate bonds that approximate the benefit obligation. As of December 31, 2015, 2014 and 2013, we utilized an estimation technique that is based upon a settlement model (Bond:Link) that permits us to closely match cash flows to the expected payments to participants . This rate can change from year-to-year based on market conditions that affect corporate bond yields. As a result of the technique described above, Frontier is utilizing a discount rate of 4.50% as of December 31, 201 5 for its qualified pension plan, compared to rates of 4.10% and 4.90% in 2014 and 2013, respectively. The discount rate for postretirement plans as of December 31, 2015 was a range of 4.50% to 4.70% co mpared to a range of 4.10% to 4.20% in 201 4 and 4.90% to 5.20% in 201 3 . The expected long-term rate of return on plan assets is applied in the determination of periodic pension and postretirement benefit cost as a reduction in the computation of the expense. In developing the expected long-term rate of return assumption, we considered published surveys of expected market returns, 10 and 20 year actual returns of various major indices, and our own historical 5 year, 10 year and 20 year investment returns. The expected long-term rate of return on plan assets is based on an asset allocation assumption of 40% in long-duration fixed income se curities , and 60% in equity securities and other investments . We review our asset allocation at least annually and make changes when considered appropriate. Our pension asset investment allocation decisions are made by the Retirement Investment & Administration Committee (RIAC), a committee comprised of members of management, pursuant to a delegation of authority by the Retirement Plan Committee of the Board of Directors. The RIAC is responsible for reporting its actions to the Retirement Plan Committee. Asset allocation decisions take into account expected market return assumptions of various asset classes as well as expected pension benefit payment streams. When analyzing anticipated benefit payments, management considers both the absolute amount of the payments as well as the timing of such payments. In 201 5 , 201 4 and 201 3 , our expected long-term rate of return on plan assets was 7.75% , 7.75% and 8.00% , respectively. For 201 6 , we will assume a rate of return of 7.50% . Our pension plan assets are valued at fair value as of the measurement date. The measurement date used to determine pension and other postretirement benefit measures for the pension plan and the postretirement benefit plan is December 31. During 201 4 , the Society of Actuaries released a series of updated mortality tables resulting from recent studies conducted by them measuring mortality rates for various groups of individuals. The updated mortality tables reflect improved trends in longevity and therefore have the effect of increasing the estimate of benefits to be received by plan participants. At December 31, 201 4 we updated our mortality assumptions by taking into consideration the newly issued mortality tables as well as our own historical experience, which increased our pension benefit obligation by $66 million and our postretirement benefit obligation by $24 million. Pension Benefits The following tables set forth the pension plan’ s projected benefit obligations, fair values of plan assets and the pension benefit liability recognized on our consolidated balance sheets as of December 31, 201 5 and 201 4 and the components of total periodic pension benefit cost for the years ended December 31, 201 5 , 201 4 and 201 3 : ( $ in millions ) 2015 2014 Change in projected benefit obligation (PBO) PBO at beginning of year $ 2,210 $ 1,669 PBO for plans of the Connecticut operations at contracted discount rate - 342 Actuarial adjustment to PBO for plans of the Connecticut operations 5 5 Service cost 55 42 Interest cost 88 80 Actuarial (gain)/loss (88) 182 Benefits paid (128) (110) PBO at end of year $ 2,142 $ 2,210 Change in plan assets Fair value of plan assets at beginning of year $ 1,673 $ 1,217 Fair value of plan assets for the Connecticut operations as of acquisition date 5 342 Actual return on plan assets (40) 141 Employer contributions 62 83 Benefits paid (128) (110) Fair value of plan assets at end of year $ 1,572 $ 1,673 Funded status $ (570) $ (537) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ (9) $ (101) Pension and other postretirement benefits - noncurrent $ (561) $ (436) Accumulated other comprehensive loss $ 584 $ 532 In connection with the completion of the Connecticut Acquisition, certain employees were transferred to the Frontier Communications Pension Plan (the Plan) effective October 24, 2014. Assets of $5 million were transferred from the AT&T pension plan trust during 2015. Assets of $342 million, including a receivable of $34 million, were transferred into the Plan during 2014 . ( $ in millions ) 2015 2014 2013 Components of total periodic pension benefit cost Service cost $ 55 $ 42 $ 48 Interest cost on projected benefit obligation 88 80 76 Expected return on plan assets (129) (99) (95) Amortization of unrecognized loss 29 20 37 Net periodic pension benefit cost 43 43 66 Pension settlement costs - - 44 Total periodic pension benefit cost $ 43 $ 43 $ 110 The expected amortization of unrecognized loss in 2016 is $42 million, excluding the impact, if any, from the pending Verizon Transaction. Our pension plan contains provisions that provide certain employees with the option of receiving lump sum payment upon retirement. Frontier ’s accounting policy is to record these payments as a settlement only if, in the aggregate, they exceed the sum of the annual service and interest costs for the plan’s net periodic pension benefit cost. During 201 3 , lump sum pension settlement payments to terminated or retired individuals amounted to $165 million, which exceeded the settlement threshold of $125 million. As a result, Frontier was required to recognize a non-cash settlement charge of $44 million during 2013 . The non-cash charge was required to accelerate the recognition of a portion of the previously unrecognized actuari al losses in the pension plan. This non-cash charge reduced our recorded net income and retained earnings, with an offset to accumulated other comprehensive loss in shareholders’ equity of Frontier. We capitalized $20 million , $15 million and $19 million of pension and OPEB expense into the cost of our capital expenditures during the years ended December 31, 201 5 , 201 4 and 201 3 , respectively, as the costs relate to our engineering and plant construction activities. The plan’s weighted average asset allocations at December 31, 201 5 and 201 4 by asset category are as follows: 2015 2014 Asset category: Equity securities 47 % 45 % Debt securities 46 % 47 % Alternative investments 6 % 6 % Cash and other 1 % 2 % Total 100 % 100 % The plan’s expected benefit payments over the next 10 years are as follows: ($ in millions) Amount 2016 $ 200 2017 160 2018 158 2019 157 2020 154 2021-2025 754 Total $ 1,583 We made total cash contributions to our pension plan of $62 million and $83 million, respectively, during 2015 and 2014. Our 2014 total contributions reflect the impact of the extension of funding relief included in the Highway and Transportation Funding Act of 2014. During 201 3 , Frontier contributed four real estate properties to its qualified defined benefit pension plan. The pension plan obtained independent appraisals of the properties and, based on these appraisals, the pension plan recorded the contributions at their fair value of $23 million. Frontier has entered into leases for the contributed properties with initial terms of 15 years at a combined aggregate annual rent of approximately $2 million. The properties are managed on behalf of the pension plan by an independent fiduciary, and the terms of the leases were negotiated with the fiduciary on an arm’s-length basis. We made total contributions to our pension plan during 2013 of $ 62 million, consisting of cash payments of $39 million and the contribution of real property with a fair value of $ 23 million, as described above. The accumulated benefit obligation for the plan was $2,048 million and $2,094 million at December 31, 201 5 and 201 4 , respectively. Assumptions used in the computation of annual pension costs and valuation of the year-end obligations were as follows: 2015 2014 2013 Discount rate - used at year end to value obligation 4.50 % 4.10 % 4.90 % Discount rate - used to compute annual cost 4.10 % 4.90 % 4.00 % Expected long-term rate of return on plan assets 7.75 % 7.75 % 8.00 % Rate of increase in compensation levels 2.50 % 2.50 % 2.50 % Postretirement Benefits Other Than Pensions—“OPEB” The following tables set forth the OPEB plan’s benefit obligations, fair values of plan assets and the postretirement benefit liability recognized on our consolidated balance sheets as of December 31, 201 5 and 201 4 and the components of net periodic postretirement benefit cost for the years ended December 31, 201 5 , 201 4 and 201 3 . ( $ in millions) 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 727 $ 385 Benefit obligation for the Connecticut operations as of acquisition date 5 211 Service cost 19 11 Interest cost 30 22 Plan participants' contributions 5 5 Actuarial (gain)/loss (115) 115 Benefits paid (25) (19) Plan change (20) (3) Benefit obligation at end of year $ 626 $ 727 Change in plan assets Fair value of plan assets at beginning of year $ - $ 2 Plan participants' contributions 5 5 Employer contribution 20 12 Benefits paid (25) (19) Fair value of plan assets at end of year $ - $ - Funded status $ (626) $ (727) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ (24) $ (22) Pension and other postretirement benefits - noncurrent $ (602) $ (705) Accumulated other comprehensive (gain) loss $ (20) $ 119 ( $ in millions ) 2015 2014 2013 Components of net periodic postretirement benefit cost Service cost $ 19 $ 11 $ 13 Interest cost on projected benefit obligation 30 22 17 Amortization of prior service cost /(credit) (5) (4) (6) Amortization of unrecognized loss 8 3 8 Net periodic postretirement benefit cost $ 52 $ 32 $ 32 The expected amortization of prior service credit in 2016 is $9 million and the expected amortization of unrecognized loss in 2016 is $2 million, excluding the impact, if any, from the pending Verizon Transaction. Assumptions used in the computation of annual OPEB costs and valuation of the year-end OPEB obligations were as follows: 2015 2014 2013 Discount rate - used at year end to value obligation 4.50% - 4.70% 4.10% - 4.20% 4.90% - 5.20% Discount rate - used to compute annual cost 4.10% - 4.20% 4.90% - 5.20% 4.00% - 4.20% The OPEB plan’s expected benefit payments over the next 10 years are as follows: ($ in millions) Gross Benefit Medicare Part D Subsidy Total 2016 $ 25 $ - $ 25 2017 29 - 29 2018 33 - 33 2019 35 - 35 2020 38 - 38 2021-2025 211 1 210 Total $ 371 $ 1 $ 370 For purposes of measuring year-end benefit obligations, we used, depending on medical plan coverage for different retiree groups, a 7.00% annual rate of increase in the per-capita cost of covered medical benefits, gradually decreasing to 5.00% in the year 20 24 and remaining at that level thereafter. The effect of a 1% increase in the assumed medical cost trend rates for each future year on the aggregate of the service and interest cost components of the total postretirement benefit cost would be $2 million and the effect on the accumulated postretirement benefit obligation for health benefits would be $18 million. The effect of a 1% decrease in the assumed medical cost trend rates for each future year on the aggregate of the service and interest cost components of the total postretirement benefit cost would be $(2) million and the effect on the accumulated postretirement benefit obligation for health benefits would be $(16) million . The amounts in accumulated other comprehensive (gain) loss that have not yet been recognized as components of net periodic benefit cost at December 31, 201 5 and 201 4 are as follows: ( $ in millions ) Pension Plan OPEB 2015 2014 2015 2014 Net actuarial loss $ 584 $ 532 $ 20 $ 143 Prior service cost/(credit) - - (40) (24) Total $ 584 $ 532 $ (20) $ 119 The amounts recognized as a component of accumulated other comprehensive loss for the years ended December 31, 201 5 and 201 4 are as follows: ( $ in millions ) Pension Plan OPEB 2015 2014 2015 2014 Accumulated other comprehensive loss at beginning of year $ 532 $ 412 $ 119 $ 5 Net actuarial gain (loss) recognized during year (29) (20) (8) (3) Prior service (cost) credit recognized during year - - 5 4 Net actuarial loss (gain) occurring during year 81 140 (136) 113 Net amount recognized in comprehensive income (loss) for the year 52 120 (139) 114 Accumulated other comprehensive (gain) loss at end of year $ 584 $ 532 $ (20) $ 119 401(k) Savings Plans We sponsor employee retirement savings plans under section 401(k) of the Internal Revenue Code. The plans cover substantially all full-time employees. Under certain plans, we provide matching contributions. Employer contributions were $28 million , $21 million and $21 million for 201 5 , 201 4 and 201 3, respectively. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (17 ) Fair Value of Financial Instruments : Fair value is defined under GAAP as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value under GAAP must maximize the use of observable inputs and minimize the use of uno bservable inputs. In addition, GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows: Input Level Description of Input Level 1 Observable inputs such as quoted prices in active markets for identical assets. Level 2 Inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 Unobservable inputs in which little or no market data exists. The following tables represent Frontier ’s pension plan assets measured at fair value on a recurring basis as of December 31, 201 5 and 201 4 : ( $ in millions ) Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 23 $ 23 $ - $ - U.S. Government Obligations 32 - 32 - Corporate and Other Obligations 315 - 315 - Common Stock 178 178 - - Common/Collective Trusts 894 - 894 - Interest in Registered Investment Companies 49 49 - - Interest in Limited Partnerships and Limited Liability Companies 92 - - 92 Total investments at fair value $ 1,583 $ 250 $ 1,241 $ 92 Interest and Dividend Receivable 4 Due from Broker for Securities Sold 21 Receivable Associated with Insurance Contract 7 Due to Broker for Securities Purchased (43) Total Plan Assets, at Fair Value $ 1,572 ( $ in millions ) Fair Value Measurements at December 31, 2014 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 32 $ 32 $ - $ - U.S. Government Obligations 32 - 32 - Corporate and Other Obligations 283 - 283 - Common Stock 170 170 - - Common/Collective Trusts 959 - 959 - Interest in Registered Investment Companies 66 66 - - Interest in Limited Partnerships and Limited Liability Companies 103 - - 103 Insurance Contracts 1 - 1 - Other 2 - 2 - Total investments at fair value $ 1,648 $ 268 $ 1,277 $ 103 Receivable for plan assets of the Connecticut operations 34 Interest and Dividend Receivable 4 Due from Broker for Securities Sold 32 Receivable Associated with Insurance Contract 8 Due to Broker for Securities Purchased (53) Total Plan Assets, at Fair Value $ 1,673 There have been no reclassifications of investments between Levels 1, 2 or 3 assets during the years ended December 31, 2015 or 2014. The table s below set forth a summary of changes in the fair value of the Plan’s Level 3 assets for the years ended December 31, 201 5 and 201 4 : ( $ in millions ) 2015 Interest in Limited Partnerships and Limited Liability Companies Balance, beginning of year $ 103 Realized gains 8 Unrealized losses (11) Sales and distributions (8) Balance, end of year $ 92 ( $ in millions ) 2014 Interest in Limited Partnerships and Limited Liability Companies Commingled Funds Balance, beginning of year $ 129 $ 33 Realized gains 12 5 Unrealized losses (5) (5) Sales and distributions (33) (33) Balance, end of year $ 103 $ - The following table provides further information regarding the redemption of the Plan’s Level 3 investments as of December 31, 201 5 : ( $ in millions ) Fair Value Redemption Frequency Redemption Notice Period Liquidation Period Interest in Limited Partnerships and Limited Liability Companies MS IFHF SVP LP Cayman (a) $ 1 Through liquidation of underlying investments None 2 years MS IFHF SVP LP Alpha (a) 1 Through liquidation of underlying investments None 2 years RII World Timberfund, LLC (b) 7 Through liquidation of underlying investments None 10 years 100 Comm Drive, LLC (c) 8 Through liquidation of underlying investments None NA 100 CTE Drive, LLC (c) 6 Through liquidation of underlying investments None NA 6430 Oakbrook Parkway, LLC (c) 24 Through liquidation of underlying investments None NA 8001 West Jefferson, LLC (c) 25 Through liquidation of underlying investments None NA 1500 MacCorkle Ave SE, LLC (c) 13 Through liquidation of underlying investments None NA 400 S. Pike Road West, LLC (c) 1 Through liquidation of underlying investments None NA 601 N US 131, LLC (c) 1 Through liquidation of underlying investments None NA 9260 E. Stockton Blvd., LLC (c) 5 Through liquidation of underlying investments None NA Total Interest in Limited Partnerships and Limited Liability Companies $ 92 ( a ) The partnerships’ investment objective is to seek capital appreciation principally through investing in investment funds managed by third party investment managers who employ a variety of alternative investment strategies. ( b ) The fund’s objective is to realize substantial long-term capital appreciation by investing in timberland properties primarily in South America, New Zealand and Australia. ( c ) The entity invest s in commercial real estate properties that are leased to Frontier . The leases are triple net, whereby Frontier is responsible for all expenses, including but not limited to, insurance, repairs and maintenance and payment of property taxes. The following table represents the Plan’s Level 3 financial instruments for its interest in certain limited partnerships and limited liability companies, which all use the direct capitalization valuation technique to measure the fair value of those financial instruments as of December 31, 2015, and the significant unobservable inputs and ranges of values for those inputs: Instrument Property Fair Value Capitalization Rate 100 Comm Drive, LLC $ 8 7.75% 100 CTE Drive, LLC $ 6 9.00% 6430 Oakbrook Parkway, LLC $ 24 8.00% Interest in Limited Partnerships 8001 West Jefferson, LLC $ 25 8.50% and Limited Liability Companies 1500 MacCorkle Ave SE, LLC $ 13 8.25% 400 S. Pike Road West, LLC $ 1 8.75% 601 N US 131, LLC $ 1 9.50% 9260 E. Stockton Blvd., LLC $ 5 7.75% The following table summarizes the carrying amounts and estimated fair values for long-term debt at December 31, 201 5 and 201 4 . For the other financial instruments including cash, accounts receivable, restricted cash, long-term debt due within one year, accounts payable and other current liabilities, the carrying amounts approximate fair value due to the relatively short maturities of those instruments. ($ in millions) 2015 2014 Carrying Carrying Amount Fair Value Amount Fair Value Long-term debt $ 15,508 $ 14,767 $ 9,393 $ 10,034 The fair value of our long-term debt is estimated based upon quoted market prices at the reporting date for those financial instruments. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (1 8 ) Commitments and Contingencies : Although from time to time we make short-term purchasing commitments to vendors with respect to capital expenditures, we generally do not enter into firm, written contracts for such activities. In June 2015, Frontier accepted the Federal Communications Commission’s (FCC) offer of support to price cap carriers under the Connect America Fund (CAF) Phase II program, which is intended to provide long-term support for broadband in high-cost unserved or underserved areas. This provides $280 million in annual support from 2015 through 2020 to deliver 10Mbps downstream/1Mbps upstream broadband service to approximately 654,000 households across the 28 states where we operate. To the extent we do not enable the required number of households with 10 Mbps downstream/1 Mbps upstream broadband service by the end of the CAF Phase II term, we will be required to return a portion of the funds previously received. In addition, Verizon has conditionally accepted $49 million in annual support in California and Texas under the CAF Phase II program to enable broadband connections for approximately 115,000 households. Upon closing of the Verizon Transaction, Frontier will assume the obligations associated with the receipt of the CAF Phase II support in California and Texas and will also receive all of those funds. On October 16, 2015, the FCC announced that the Wireline Competition Bureau is conducting an inquiry into whether certain terms and conditions contained in specifically identified special access tariff pricing plans offered by four carriers, including Frontier, are just and reasonable. The focus of the inquiry is term and volume discounts under pricing plans for business data TDM services, specifically DS1s and DS3s, and exclude pricing for IP-based services. At the conclusion of this inquiry, FCC staff will make recommendations to the FCC Commissioners regarding the reasonableness of certain terms and conditions. The Commissioners will then determine whether the tariffs under review may need to be revised prospectively. The final pleadings for parties in the proceeding were due February 22, 2016. When and how the FCC will address the issues subject to this inquiry is unknown, but we do not anticipate that any proposed revisions to the specific tariffs under review would have a material impact on our results or operations. In connection with the Verizon Transaction, we will incur additional operating expenses and capital expenditures in 2016 related to integration activities. We are party to various legal proceedings (including individual, class and putative class actions) arising in the normal course of our business covering a wide range of matters and types of claims including, but not limited to, general contracts, billing disputes, rights of access, taxes and surcharges, consumer protection, trademark and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. We accrue an expense for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of our existing accruals for pending matters, after considering insurance coverage, is material. We monitor our pending litigation for the purpose of adjusting our accruals and revising our disclosures accordingly, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. We will vigorously defend our interests in pending litigation, and as of this date, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our consolidated financial position, results of operations, or our cash flows. We conduct certain of our operations in leased premises and also lease certain equipment and other assets pursuant to operating leases. The lease arrangements have terms ranging from 1 to 99 years and several contain rent escalation clauses providing for increases in monthly rent at specific intervals. When rent escalation clauses exist, we record annual rental expense based on the total expected rent payments on a straight-line basis over the lease term. Certain leases also have renewal options. Renewal options that are reasonably assured are included in determining the lease term. Future minimum rental commitments for all long-term noncancelable operating leases as of December 31, 201 5 are as follows: ($ in millions) Operating Leases Year ending December 31: 2016 $ 64 2017 10 2018 8 2019 10 2020 15 Thereafter 70 Total minimum lease payments $ 177 Total rental expense included in our consolidated statements of operations for the years ended December 31, 201 5 , 201 4 and 201 3 was $119 million, $100 million and $84 million, respectively. We are party to contracts with several unrelated long distance carriers. The contracts provide fees based on traffic they carry for us subject to minimum monthly fees. At December 31, 201 5 , the estimated future payments for obligations under our noncancelable long distance contracts and service agreements are as follows: ($ in millions) Amount Year ending December 31: 2016 $ 26 2017 27 2018 16 2019 3 2020 3 Thereafter - Total $ 75 At December 31, 201 5 , we have outstanding performance letters of credit as follows: ($ in millions) Amount CNA Financial Corporation (CNA) $ 49 All other 1 Total $ 50 CNA serves as our agent with respect to general liability claims (auto, workers compensation and other insured perils of Frontier ). As our agent, they administer all claims and make payments for claims on our behalf. We reimburse CNA for such services upon presentation of their invoice. To serve as our agent and make payments on our behalf, CNA requires that we establish a letter of credit in their favor. CNA could potentially draw against this letter of credit if we failed to reimburse CNA in accordance with the terms of our agreement. The amount of the letter of credit is reviewed annually and adjusted based on claims history. None of the above letters of credit restrict our cash balances. |
Description Of Business And S26
Description Of Business And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Description of Business | (a) Description of Business : Frontier Communications Corporation (Frontier) is the fourth largest Incumbent Local Exchange Carrier (ILEC) in the United States, w ith approximately 3.4 million customers, 2.5 million broadband subscribers and 19,200 employees, operating in 28 states. Frontier was incorporated in 1935, originally under the name of Citizens Utilities Company and was known as Citizens Communications Company until July 31, 2008. Frontier and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Effective October 24, 2014, Frontier’s scope of operations and balance sheet capitalization changed materially as a result of the completion of the Connecticut Acquisition, as described in Note 3 - Acquisitions. Financial data presented for Frontier for periods prior to that date is not indicative of the future financial position or operating results for Frontier. |
Basis of Presentation and Use of Estimates | (b) Basis of Presentation and Use of Estimates : Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain reclassifications of amounts previously reported have been made to conform to the current presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Frontier had a 33⅓% controlling general partner interest in a partnership entity, the Mohave Cellular Limited Partnership (Mohave). Mohave’s results of operations and balance sheet were included in our consolidated financial statements through its date of disposal on April 1, 2013. The minority interest of the limited partners was reflected in the consolidated balance sheet as “Noncontrolling interest in a partnership” and in the consolidated statements of income as “Income attributable to the noncontrolling interest in a partnership.” On April 1, 2013, Frontier sold its partnership interest in Mohave and received proceeds of $18 million. Frontier recognized a gain on sale of approximately $ 15 million before taxes in 2013. For our financial statements as of and for the period ended December 31, 2015, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-K with the Securities and Exchange Commission (SEC). The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the allowance for doubtful accounts, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, business combinations, and pension and other postretirement benefits, among others. |
Cash Equivalents | (c) Cash Equivalents : We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Revenue Recognition | (d) Revenue Recognition : Revenue is recognized when services are provided or when products are delivered to customers. Revenue that is billed in advance includes monthly recurring network access services (including data services), special access services and monthly recurring voice, video and related charges. The unearned portion of these fees is initially deferred as a component of “Advanced billings” on our consolidated balance sheet and recognized as revenue over the period that the services are provided. Revenue that is billed in arrears includes non-recurring network access services (including data services), switched access services and non-recurring voice and video services. The earned but unbilled portion of these fees is recognized as revenue in our consolidated statements of operations and accrued in “Accounts Receivable” on our consolidated balance sheet in the period that the services are provided. Excise taxes are recognized as a liability when billed. Installation fees and their related direct and incremental costs are initially deferred and recognized as revenue and expense over the average term of a customer relationship. We recognize as current period expense the portion of installation costs that exceeds installation fee revenue. Frontier collects various taxes from its customers and subsequently remits these taxes to governmental authorities. Substantially all of these taxes are recorded through the consolidated balance sheet and presented on a net basis in our consolidated statements of operations. We also collect Universal Service Fund (USF) surcharges from customers (primarily federal USF) that we have recorded on a gross basis in our consolidated statements of operations and included within “Revenue” and “Network related expenses” of $151 million, $1 25 million and $118 million for the years ended December 31, 2015, 2014 and 2013, respectively . In 2015 we accepted the FCC’s Connect America Fund (CAF) Phase II offer of support, which is a successor to and augments the USF frozen high-cost support that we had been receiving pursuant to a 2011 FCC order. CAF Phase II funding is a program intended to subsidize the high-cost of establishing and delivering communications services to certain high-cost unserved or underserved areas. We are recognizing these subsidies into revenue consistent with how the costs related to these subsidies are being and are expected to be incurred, which is on a straight line basis. We may reserve against our subsidy revenue which would be based on our ability to meet the buildout requirements of CAF Phase II. CAF Phase II is a multi-year program which requires us to deploy broadband to an agreed upon number of households in each of the states where funding was accepted. Failure to meet our deployment obligations at the end of the program in 2020 will result in a return of a portion of the funding received. We regularly evaluate our ability to meet our broadband deployment obligations and adjust revenue accordingly. We categorize our products, services and other revenues among the following four categories: · Voice services include traditional local and long distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our residential and business customers. Voices services also include the long distance voice origination and termination services that we provide to our business customers and other carriers; · Data and Internet services include broadband services for residential and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (“wireless backhaul”); · Other customer revenue includes residential video services, our provision for bad debts, sales of customer premise equipment to our business customers and directory services; and · Switched Access and Subsidy revenues include revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long distance voice traffic (“switched access”). These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies. We also receive cost subsidies from state and federal authorities, including the Connect America Fund. The following table provides a summary of revenues from external customers by the categories of Frontier’s products and services: For the year ended December 31, ( $ in millions ) 2015 2014 2013 Voice services $ 2,022 $ 1,951 $ 2,045 Data and Internet services 2,337 1,948 1,866 Other 540 354 299 Customer revenue 4,899 4,253 4,210 Switched access and subsidy 677 519 552 Total revenue $ 5,576 $ 4,772 $ 4,762 |
Property, Plant and Equipment | (e) Property, Plant and Equipment : Property, plant and equipment are stated at original cost, including capitalized interest, or fair market value as of the date of acquisition for acquired properties. Maintenance and repairs are charged to operating expenses as incurred. The gross book value of routine property, plant and equipment retirements is charged against accumulated depreciation. |
Goodwill and Other Intangibles | (f) Goodwill and Other Intangibles : Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible net assets acquired. We undertake studies to determine the fair values of assets and liabilities acquired and allocate purchase prices to assets and liabilities, including property, plant and equipment, goodwill and other identifiable intangibles. We examine the carrying value of our goodwill and trade name annually as of December 31, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. We test for goodwill impairment at the “operating segment” level, as that term is defined in GAAP. During the second quarter of 2015, Frontier reorganized into six regional operating segments, which are aggregated into one reportable segment. In conjunction with the reorganization of our operating segments, effective with the second quarter of 2015, we reassigned goodwill using a relative fair value allocation approach. Frontier amortizes finite-lived intangible assets over their estimated useful lives on the accelerated method of sum of the years digits. We review such intangible assets at least annually as of December 31 st to assess whether any potential impairment exists and whether factors exist that would necessitate a change in useful life and a different amortization period. |
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of | (g) Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of : We review long-lived assets to be held and used, including customer lists, and long-lived assets to be disposed of for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to the future undiscounted net cash flows expected to be generated by the asset. Recoverability of assets held for sale is measured by comparing the carrying amount of the assets to their estimated fair market value. If any assets are considered to be impaired, the impairment is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value. Also, we periodically reassess the useful lives of our tangible and intangible assets to determine whether any changes are required. |
Investments | (h) Investments : Investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting. |
Income Taxes and Deferred Income Taxes | (i) Income Taxes and Deferred Income Taxes : We file a consolidated federal income tax return. We utilize the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recorded for the tax effect of temporary differences between the financial statement basis and the tax basis of assets and liabilities using tax rates expected to be in effect when the temporary differences are expected to reverse. |
Stock Plans | (j) Stock Plans : We have various stock-based compensation plans. Awards under these plans are granted to eligible employees and directors. Awards may be made in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units or other stock-based awards, including awards with performance, market and time-vesting conditions. Our general policy is to issue shares from treasury upon the grant of restricted shares, earning of performance shares and the exercise of options. The compensation cost recognized is based on awards ultimately expected to vest. GAAP requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Net Income (Loss) Per Share Attributable to Frontier Common Shareholders | (k) Net Income (Loss) Per Share Attributable to Frontier Common Shareholders : Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding during the period being reported on, excluding unvested restricted stock awards. The impact of dividends paid on unvested restricted stock awards have been deducted in the determination of basic and diluted net income (loss) per share attributable to Frontier common shareholders. Except when the effect would be antidilutive, diluted net income per common share reflects the dilutive effect of certain common stock equivalents, as described further in Note 12 – Net Income (Loss) Per Common Share. |
Description Of Business And S27
Description Of Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Revenue From External Customers | For the year ended December 31, ( $ in millions ) 2015 2014 2013 Voice services $ 2,022 $ 1,951 $ 2,045 Data and Internet services 2,337 1,948 1,866 Other 540 354 299 Customer revenue 4,899 4,253 4,210 Switched access and subsidy 677 519 552 Total revenue $ 5,576 $ 4,772 $ 4,762 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Allocation of the purchase price for the Connecticut Acquisition | ($ in millions) Current assets $ 69 Property, plant & equipment 1,459 Goodwill 815 Other intangibles - customer base 570 Current liabilities (94) Deferred income taxes (576) Other liabilities (225) Total net assets acquired $ 2,018 |
Unaudited Pro Forma Condensed Combined Statements of Income Information | ($ in millions, except per share amounts) (Unaudited) For the year ended December 31, 2014 2013 Revenue $ 5,775 $ 6,011 Operating income $ 985 $ 1,049 Net income attributable to Frontier common shareholders $ 191 $ 83 Basic and diluted net income per share attributable to Frontier common shareholders $ 0.19 $ 0.08 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) 2015 2014 Retail and Wholesale $ 569 $ 630 Other 59 56 Less: Allowance for doubtful accounts (57) (72) Accounts receivable, net $ 571 $ 614 |
Allowance For Doubtful Accounts | ( $ in millions ) Balance at beginning of Period Charged to Other Revenue Charged (Credited) to Switched and Nonswitched Revenue and Other Accounts Write-offs, net of Recoveries Balance at end of Period 2013 $ 93 $ 69 $ (3) $ (88) $ 71 2014 $ 71 $ 61 $ - $ (60) $ 72 2015 $ 72 $ 67 $ (17) $ (65) $ 57 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) Estimated Useful Lives 2015 2014 Land N/A $ 151 $ 147 Buildings and leasehold improvements 41 years 1,327 1,326 General support 5 to 17 years 1,146 1,037 Central office/electronic circuit equipment 5 to 18 years 6,244 5,934 Poles 30 years 712 672 Cable and wire 15 to 25 years 7,280 6,973 Conduit 55 years 515 509 Other 12 to 25 years 47 47 Construction work in progress 379 301 Property, plant and equipment 17,801 16,946 Less: Accumulated depreciation (9,308) (8,380) Property, plant and equipment, net $ 8,493 $ 8,566 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Other Intangibles [Abstract] | |
Schedule Of Goodwill Activity | ($ in millions) Goodwill Balance at January 1, 2015 $ 7,205 Connecticut Acquisition (Note 3) (53) Other Acquisition 14 Balance at December 31, 2015 $ 7,166 |
Components Of Other Intangibles | ($ in millions) 2015 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other Intangibles: Customer base $ 2,998 $ (1,977) $ 1,021 $ 3,018 $ (1,640) $ 1,378 Trade name 122 - 122 122 - 122 Total other intangibles $ 3,120 $ (1,977) $ 1,143 $ 3,140 $ (1,640) $ 1,500 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Year Ended December 31, 2015 Interest Rate at January 1, Payments New December 31, December 31, ($ in millions) 2015 and Retirements Borrowings 2015 2015 * Senior Unsecured Debt $ 9,750 $ (295) $ 6,600 $ 16,055 9.00% Secured Debt 23 (3) 3 23 3.78% Rural Utilities Service Loan Contracts 8 - - 8 6.15% Total Long-Term Debt $ 9,781 $ (298) $ 6,603 $ 16,086 8.99% Less: Debt Issuance Costs (93) (196) Less: Debt Premium 3 2 Less: Current Portion (298) (384) $ 9,393 $ 15,508 * Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at December 31, 2015 represent a weighted average of multiple issuances. |
Senior Unsecured Debt | ($ in millions) 2015 2014 Principal Interest Principal Interest Outstanding Rate Outstanding Rate Senior Unsecured Debt Due: 3/15/2015 $ - - $ 105 6.625% 4/15/2015 - - 97 7.875% 10/14/2016 * 344 2.805% (Variable) 402 3.045% (Variable) 4/15/2017 607 8.250% 607 8.250% 10/1/2018 583 8.125% 583 8.125% 3/15/2019 434 7.125% 434 7.125% 10/24/2019 ** 315 3.805% (Variable) 350 3.545% (Variable) 4/15/2020 1,022 8.500% 1,022 8.500% 9/15/2020 1,000 8.875% - - 7/1/2021 500 9.250% 500 9.250% 9/15/2021 775 6.250% 775 6.250% 4/15/2022 500 8.750% 500 8.750% 9/15/2022 2,000 10.500% - - 1/15/2023 850 7.125% 850 7.125% 4/15/2024 750 7.625% 750 7.625% 1/15/2025 775 6.875% 775 6.875% 9/15/2025 3,600 11.000% - - 11/1/2025 138 7.000% 138 7.000% 8/15/2026 2 6.800% 2 6.800% 1/15/2027 346 7.875% 346 7.875% 8/15/2031 945 9.000% 945 9.000% 10/1/2034 1 7.680% 1 7.680% 7/1/2035 125 7.450% 125 7.450% 10/1/2046 193 7.050% 193 7.050% 15,805 9,500 Subsidiary Debentures Due: 2/15/2028 200 6.730% 200 6.730% 10/15/2029 50 8.400% 50 8.400% Total $ 16,055 8.74% *** $ 9,750 7.45% *** * Represents borrowings under the 2011 CoBank Credit Agreement, as defined below. ** Represents borrowings under the 2014 CoBank Credit Agreement, as defined below. ** * Interest rate represents a weighted average of the stated interest rates of multiple issuances. |
Debt Maturities by Year | Principal ($ in millions) Payments 2016 $ 384 2017 $ 646 2018 $ 620 2019 $ 645 2020 $ 2,022 Thereafter $ 11,769 |
Contractual Obligations by Year | ($ in millions) Finance Lease Obligations Capital Lease Obligations Year ending December 31: 2016 $ 7 $ 3 2017 7 3 2018 8 3 2019 8 4 2020 8 4 Thereafter 55 13 Total future payments 93 30 Less: Amounts representing interest (52) (7) Present value of minimum lease payments $ 41 $ 23 |
Investment and Other Income, 33
Investment and Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment and Other Income, Net [Abstract] | |
Components Of Investment and Other Income, Net | ( $ in millions ) 2015 2014 2013 Gain on sale of Fairmount Cellular LLC $ - $ 25 $ - Gain on sale of 700 MHz spectrum - 12 - Interest and dividend income 7 2 2 Investment gain - - 2 Gain on expiration/settlement of customer advances - - 3 Split-dollar life insurance proceeds - - 2 Total investment and other income, net $ 7 $ 39 $ 9 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Plans [Abstract] | |
LTIP Target Performance Shares | Number of Shares (in thousands) Balance at January 1, 2013 979 LTIP target performance shares granted 1,124 LTIP target performance shares forfeited (354) Balance at December 31, 2013 1,749 LTIP target performance shares granted 1,037 LTIP target performance shares forfeited (104) Balance at December 31, 2014 2,682 LTIP target performance shares granted 738 LTIP target performance shares earned (743) LTIP target performance shares forfeited (152) Balance at December 31, 2015 2,525 |
Restricted Shares Outstanding | Weighted Number of Average Aggregate Shares Grant Date Fair Value (in thousands) Fair Value (in millions) Balance at January 1, 2013 7,049 $ 6.08 $ 30 Restricted stock granted 3,360 $ 4.10 $ 16 Restricted stock vested (3,097) $ 6.78 $ 14 Restricted stock forfeited (1,078) $ 5.26 Balance at December 31, 2013 6,234 $ 4.80 $ 29 Restricted stock granted 4,314 $ 4.91 $ 29 Restricted stock vested (2,372) $ 5.22 $ 16 Restricted stock forfeited (369) $ 4.55 Balance at December 31, 2014 7,807 $ 4.75 $ 52 Restricted stock granted 2,815 $ 7.92 $ 13 Restricted stock vested (3,215) $ 4.89 $ 15 Restricted stock forfeited (359) $ 5.10 Balance at December 31, 2015 7,048 $ 5.93 $ 33 |
Options Outstanding | Shares Weighted Weighted Subject to Average Average Aggregate Option Option Price Remaining Intrinsic (in thousands) Per Share Life in Years Value Balance at January 1, 2015 83 $ 13.23 0.8 $ - Options granted - $ - Options exercised - $ - Options canceled, forfeited or lapsed (33) $ 12.96 Balance at December 31, 2015 50 $ 13.40 - $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | 2015 2014 2013 Consolidated tax provision at federal statutory rate 35.0 % 35.0 % 35.0 % State income tax provisions, net of federal income tax benefit 8.7 1.6 (2.7) Noncontrolling interest - - (0.6) Tax reserve adjustment (0.3) 6.9 (1.1) Domestic production activities deduction - (8.7) - Changes in certain deferred tax balances 0.8 (14.1) (4.0) IRS audit adjustments - - 3.2 Federal research and development credit 1.5 (3.3) (3.2) Non-deductible transaction costs 0.4 1.0 2.0 All other, net (0.3) 0.3 0.4 Effective tax rate 45.8 % 18.7 % 29.0 % |
Components of Net Deferred Income Tax Liability (Asset) | ( $ in millions ) 2015 2014 Deferred income tax liabilities: Property, plant and equipment basis differences $ 2,401 $ 2,451 Intangibles 960 1,076 Other, net 15 24 $ 3,376 $ 3,551 Deferred income tax assets: Pension liability 222 247 Tax operating loss carryforward 295 162 Employee benefits 262 304 Accrued expenses 50 55 Allowance for doubtful accounts 10 16 Other, net 48 39 887 823 Less: Valuation allowance (177) (140) Net deferred income tax asset 710 683 Net deferred income tax liability $ 2,666 $ 2,868 |
Schedule of Components of Income Tax Expense (Benefit) | ( $ in millions ) 2015 2014 2013 Income tax expense (benefit): Current: Federal $ 8 $ 98 $ 55 State (6) 10 - Total Current 2 108 55 Deferred: Federal (126) (34) 13 State (41) (44) (20) Total Deferred (167) (78) (7) Total income tax expense (benefit) (165) 30 48 Income taxes charged (credited) to equity of Frontier: Utilization of the benefits arising from restricted stock - - 2 Deferred income taxes (benefits) arising from the recognition of additional pension/OPEB liability 36 (90) 132 Total income taxes charged (credited) to equity of Frontier 36 (90) 134 Total income taxes $ (129) $ (60) $ 182 |
Changes in the Balance of Unrecognized Tax Benefits | ($ in millions) 2015 2014 Unrecognized tax benefits - beginning of year $ 19 $ 9 Gross increases - current year tax positions 2 13 Gross decreases - expired statute of limitations (2) (3) Unrecognized tax benefits - end of year $ 19 $ 19 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Income (Loss) Per Share [Abstract] | |
Calculation Of Net Income (Loss) Per Common Share | ( $ in millions and shares in thousands, except per share amounts ) 2015 2014 2013 Net income (loss) used for basic and diluted earnings per share: Net income (loss) attributable to Frontier common shareholders $ (316) $ 133 $ 113 Less: Dividends paid on unvested restricted stock awards (3) (3) (3) Total basic and diluted net income (loss) attributable to Frontier common shareholders $ (319) $ 130 $ 110 Basic earnings per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 1,091,798 1,001,812 999,126 Less: Weighted average unvested restricted stock awards (7,192) (7,394) (6,467) Total weighted average shares outstanding - basic 1,084,606 994,418 992,659 Basic net income (loss) per share attributable to Frontier common shareholders $ (0.29) $ 0.13 $ 0.11 Diluted earnings per share: Total weighted average shares outstanding - basic 1,084,606 994,418 992,659 Effect of dilutive shares - 3,744 1,338 Total weighted average shares outstanding - diluted 1,084,606 998,162 993,997 Diluted net income (loss) per share attributable to Frontier common shareholders $ (0.29) $ 0.13 $ 0.11 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | ($ in millions) Pension Costs OPEB Costs Deferred taxes on pension and OPEB costs Total Balance at January 1, 2013 $ (698) $ (74) $ 288 $ (484) Other comprehensive income (loss) before reclassifications 205 67 (100) 172 Amounts reclassified from accumulated other comprehensive income (loss) 37 2 (15) 24 Recognition of net actuarial loss for pension settlement costs 44 - (17) 27 Net current-period other comprehensive income (loss) 286 69 (132) 223 Balance at December 31, 2013 (412) (5) 156 (261) Other comprehensive income (loss) before reclassifications (140) (113) 98 (155) Amounts reclassified from accumulated other comprehensive income (loss) 20 (1) (7) 12 Net current-period other comprehensive income (loss) (120) (114) 91 (143) Balance at December 31, 2014 (532) (119) 247 (404) Other comprehensive income (loss) before reclassifications (81) 136 (24) 31 Amounts reclassified from accumulated other comprehensive income (loss) 29 3 (12) 20 Net current-period other comprehensive income (loss) (52) 139 (36) 51 Balance at December 31, 2015 $ (584) $ 20 $ 211 $ (353) |
Reclassification Out of Accumulated Other Comprehensive Income | ($ in millions) Amount Reclassified from Accumulated Other Comprehensive Loss (a) Details about Accumulated Other Comprehensive Loss Components 2015 2014 2013 Affected Line Item in the Statement Where Net Income (Loss) is Presented Amortization of Pension Cost Items (b) Actuarial gains (losses) (29) (20) (37) Pension settlement costs - - (44) (29) (20) (81) Income (loss) before income taxes Tax impact 11 7 31 Income tax (expense) benefit $ (18) $ (13) $ (50) Net income (loss) Amortization of OPEB Cost Items (b) Prior-service costs $ 5 $ 4 $ 6 Actuarial gains (losses) (8) (3) (8) (3) 1 (2) Income (loss) before income taxes Tax impact 1 - 1 Income tax (expense) benefit $ (2) $ 1 $ (1) Net income (loss) (a) Amounts in parentheses indicate losses. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB cost s (see Note 1 6 - Retirement Plans for additional details). |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | ($ in millions, except per share amounts) 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Revenue $ 1,371 $ 1,368 $ 1,424 $ 1,413 $ 5,576 Operating income 163 193 207 182 745 Net (loss) attributable to Frontier common shareholders (51) (28) (81) (156) (316) Basic net (loss) per share attributable to Frontier common shareholders $ (0.05) $ (0.03) $ (0.07) $ (0.14) $ (0.29) 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Revenue $ 1,154 $ 1,147 $ 1,141 $ 1,330 $ 4,772 Operating income 226 224 197 173 820 Net income attributable to Frontier common shareholders 39 38 42 14 133 Basic net income per share attributable to Frontier common shareholders $ 0.04 $ 0.04 $ 0.04 $ 0.01 $ 0.13 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Projected Benefit Obligations, Fair Values of Plan Assets and Amounts Recognized in the Balance Sheet | ( $ in millions ) 2015 2014 Change in projected benefit obligation (PBO) PBO at beginning of year $ 2,210 $ 1,669 PBO for plans of the Connecticut operations at contracted discount rate - 342 Actuarial adjustment to PBO for plans of the Connecticut operations 5 5 Service cost 55 42 Interest cost 88 80 Actuarial (gain)/loss (88) 182 Benefits paid (128) (110) PBO at end of year $ 2,142 $ 2,210 Change in plan assets Fair value of plan assets at beginning of year $ 1,673 $ 1,217 Fair value of plan assets for the Connecticut operations as of acquisition date 5 342 Actual return on plan assets (40) 141 Employer contributions 62 83 Benefits paid (128) (110) Fair value of plan assets at end of year $ 1,572 $ 1,673 Funded status $ (570) $ (537) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ (9) $ (101) Pension and other postretirement benefits - noncurrent $ (561) $ (436) Accumulated other comprehensive loss $ 584 $ 532 |
Net Periodic Benefit Cost | ( $ in millions ) 2015 2014 2013 Components of total periodic pension benefit cost Service cost $ 55 $ 42 $ 48 Interest cost on projected benefit obligation 88 80 76 Expected return on plan assets (129) (99) (95) Amortization of unrecognized loss 29 20 37 Net periodic pension benefit cost 43 43 66 Pension settlement costs - - 44 Total periodic pension benefit cost $ 43 $ 43 $ 110 |
Weighted Average Asset Allocations, By Asset Category | 2015 2014 Asset category: Equity securities 47 % 45 % Debt securities 46 % 47 % Alternative investments 6 % 6 % Cash and other 1 % 2 % Total 100 % 100 % |
Expected Benefit Payments Over The Next Ten Years | ($ in millions) Amount 2016 $ 200 2017 160 2018 158 2019 157 2020 154 2021-2025 754 Total $ 1,583 |
Schedule of Assumptions Used | 2015 2014 2013 Discount rate - used at year end to value obligation 4.50 % 4.10 % 4.90 % Discount rate - used to compute annual cost 4.10 % 4.90 % 4.00 % Expected long-term rate of return on plan assets 7.75 % 7.75 % 8.00 % Rate of increase in compensation levels 2.50 % 2.50 % 2.50 % |
Schedule of Changes in Projected benefit Obligations for OPEB Table Text Block | ( $ in millions) 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 727 $ 385 Benefit obligation for the Connecticut operations as of acquisition date 5 211 Service cost 19 11 Interest cost 30 22 Plan participants' contributions 5 5 Actuarial (gain)/loss (115) 115 Benefits paid (25) (19) Plan change (20) (3) Benefit obligation at end of year $ 626 $ 727 Change in plan assets Fair value of plan assets at beginning of year $ - $ 2 Plan participants' contributions 5 5 Employer contribution 20 12 Benefits paid (25) (19) Fair value of plan assets at end of year $ - $ - Funded status $ (626) $ (727) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ (24) $ (22) Pension and other postretirement benefits - noncurrent $ (602) $ (705) Accumulated other comprehensive (gain) loss $ (20) $ 119 |
Schedule of Net Benefit Costs For OPEB Table Text Block | ( $ in millions ) 2015 2014 2013 Components of net periodic postretirement benefit cost Service cost $ 19 $ 11 $ 13 Interest cost on projected benefit obligation 30 22 17 Amortization of prior service cost /(credit) (5) (4) (6) Amortization of unrecognized loss 8 3 8 Net periodic postretirement benefit cost $ 52 $ 32 $ 32 |
Schedule of Assumptions Used for OPEB Table Text Block | 2015 2014 2013 Discount rate - used at year end to value obligation 4.50% - 4.70% 4.10% - 4.20% 4.90% - 5.20% Discount rate - used to compute annual cost 4.10% - 4.20% 4.90% - 5.20% 4.00% - 4.20% |
Schedule of Expected Benefit Payments for OPEB Table Text Block | ($ in millions) Gross Benefit Medicare Part D Subsidy Total 2016 $ 25 $ - $ 25 2017 29 - 29 2018 33 - 33 2019 35 - 35 2020 38 - 38 2021-2025 211 1 210 Total $ 371 $ 1 $ 370 |
Net Periodic Benefit Cost Not Yet Recognized | ( $ in millions ) Pension Plan OPEB 2015 2014 2015 2014 Net actuarial loss $ 584 $ 532 $ 20 $ 143 Prior service cost/(credit) - - (40) (24) Total $ 584 $ 532 $ (20) $ 119 |
Amounts Recognized as a Componenet of Accumulated Comprehensive Income | ( $ in millions ) Pension Plan OPEB 2015 2014 2015 2014 Accumulated other comprehensive loss at beginning of year $ 532 $ 412 $ 119 $ 5 Net actuarial gain (loss) recognized during year (29) (20) (8) (3) Prior service (cost) credit recognized during year - - 5 4 Net actuarial loss (gain) occurring during year 81 140 (136) 113 Net amount recognized in comprehensive income (loss) for the year 52 120 (139) 114 Accumulated other comprehensive (gain) loss at end of year $ 584 $ 532 $ (20) $ 119 |
Fair Value Of Financial Instr40
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Of Financial Instruments [Abstract] | |
Pension Plan Assets Measured At Fair Value on Recurring Basis | ( $ in millions ) Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 23 $ 23 $ - $ - U.S. Government Obligations 32 - 32 - Corporate and Other Obligations 315 - 315 - Common Stock 178 178 - - Common/Collective Trusts 894 - 894 - Interest in Registered Investment Companies 49 49 - - Interest in Limited Partnerships and Limited Liability Companies 92 - - 92 Total investments at fair value $ 1,583 $ 250 $ 1,241 $ 92 Interest and Dividend Receivable 4 Due from Broker for Securities Sold 21 Receivable Associated with Insurance Contract 7 Due to Broker for Securities Purchased (43) Total Plan Assets, at Fair Value $ 1,572 ( $ in millions ) Fair Value Measurements at December 31, 2014 Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 32 $ 32 $ - $ - U.S. Government Obligations 32 - 32 - Corporate and Other Obligations 283 - 283 - Common Stock 170 170 - - Common/Collective Trusts 959 - 959 - Interest in Registered Investment Companies 66 66 - - Interest in Limited Partnerships and Limited Liability Companies 103 - - 103 Insurance Contracts 1 - 1 - Other 2 - 2 - Total investments at fair value $ 1,648 $ 268 $ 1,277 $ 103 Receivable for plan assets of the Connecticut operations 34 Interest and Dividend Receivable 4 Due from Broker for Securities Sold 32 Receivable Associated with Insurance Contract 8 Due to Broker for Securities Purchased (53) Total Plan Assets, at Fair Value $ 1,673 |
Changes in Fair Value of Plan's Level 3 Assets | ( $ in millions ) 2015 Interest in Limited Partnerships and Limited Liability Companies Balance, beginning of year $ 103 Realized gains 8 Unrealized losses (11) Sales and distributions (8) Balance, end of year $ 92 ( $ in millions ) 2014 Interest in Limited Partnerships and Limited Liability Companies Commingled Funds Balance, beginning of year $ 129 $ 33 Realized gains 12 5 Unrealized losses (5) (5) Sales and distributions (33) (33) Balance, end of year $ 103 $ - |
Redemption of Plan's Level 3 Investments | ( $ in millions ) Fair Value Redemption Frequency Redemption Notice Period Liquidation Period Interest in Limited Partnerships and Limited Liability Companies MS IFHF SVP LP Cayman (a) $ 1 Through liquidation of underlying investments None 2 years MS IFHF SVP LP Alpha (a) 1 Through liquidation of underlying investments None 2 years RII World Timberfund, LLC (b) 7 Through liquidation of underlying investments None 10 years 100 Comm Drive, LLC (c) 8 Through liquidation of underlying investments None NA 100 CTE Drive, LLC (c) 6 Through liquidation of underlying investments None NA 6430 Oakbrook Parkway, LLC (c) 24 Through liquidation of underlying investments None NA 8001 West Jefferson, LLC (c) 25 Through liquidation of underlying investments None NA 1500 MacCorkle Ave SE, LLC (c) 13 Through liquidation of underlying investments None NA 400 S. Pike Road West, LLC (c) 1 Through liquidation of underlying investments None NA 601 N US 131, LLC (c) 1 Through liquidation of underlying investments None NA 9260 E. Stockton Blvd., LLC (c) 5 Through liquidation of underlying investments None NA Total Interest in Limited Partnerships and Limited Liability Companies $ 92 ( a ) The partnerships’ investment objective is to seek capital appreciation principally through investing in investment funds managed by third party investment managers who employ a variety of alternative investment strategies. ( b ) The fund’s objective is to realize substantial long-term capital appreciation by investing in timberland properties primarily in South America, New Zealand and Australia. ( c ) The entity invest s in commercial real estate properties that are leased to Frontier . The leases are triple net, whereby Frontier is responsible for all expenses, including but not limited to, insurance, repairs and maintenance and payment of property taxes. |
Valuation Techniques Used to Measure the Fair Value of the Plan's Interest in Limited Partnerships | Instrument Property Fair Value Capitalization Rate 100 Comm Drive, LLC $ 8 7.75% 100 CTE Drive, LLC $ 6 9.00% 6430 Oakbrook Parkway, LLC $ 24 8.00% Interest in Limited Partnerships 8001 West Jefferson, LLC $ 25 8.50% and Limited Liability Companies 1500 MacCorkle Ave SE, LLC $ 13 8.25% 400 S. Pike Road West, LLC $ 1 8.75% 601 N US 131, LLC $ 1 9.50% 9260 E. Stockton Blvd., LLC $ 5 7.75% |
Fair Value Of Long-Term Debt | ($ in millions) 2015 2014 Carrying Carrying Amount Fair Value Amount Fair Value Long-term debt $ 15,508 $ 14,767 $ 9,393 $ 10,034 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Future Minimum Rental Commitments for All Long-Term Noncancelable Operating Leases | ($ in millions) Operating Leases Year ending December 31: 2016 $ 64 2017 10 2018 8 2019 10 2020 15 Thereafter 70 Total minimum lease payments $ 177 |
Future Payments for Obligations under Noncancelable Long Distance Contracts and Service Agreements | ($ in millions) Amount Year ending December 31: 2016 $ 26 2017 27 2018 16 2019 3 2020 3 Thereafter - Total $ 75 |
Outstanding Performance Letters of Credit | ($ in millions) Amount CNA Financial Corporation (CNA) $ 49 All other 1 Total $ 50 |
Description Of Business And S42
Description Of Business And Summary Of Significant Accounting Policies (Narrative) (Details) item in Millions, customer in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)employeestatesegmentcustomeritem | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Number of customers | customer | 3.4 | ||
Number of subscribers | item | 2.5 | ||
Number of employees | employee | 19,200 | ||
Number of states of operation | state | 28 | ||
Proceeds on sale of interest | $ 22 | $ 39 | $ 18 |
Gain on sale of Mohave partnership interest | 15 | ||
Customer surcharges | $ 151 | $ 125 | $ 118 |
Number of operating regions | segment | 6 | ||
Number of reportable segments | segment | 1 | ||
Mohave Cellular Limited Partnership [Member] | |||
Ownership percentage of subsidiary sold (in hundredths) | 33.33% | ||
Gain on sale of Mohave partnership interest | $ 15 |
Description Of Business And S43
Description Of Business And Summary Of Significant Accounting Policies (Schedule Of Revenues From External Customers) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,413 | $ 1,424 | $ 1,368 | $ 1,371 | $ 1,330 | $ 1,141 | $ 1,147 | $ 1,154 | $ 5,576 | $ 4,772 | $ 4,762 |
Customer Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,899 | 4,253 | 4,210 | ||||||||
Switched Access And Subsidy Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 677 | 519 | 552 | ||||||||
Voice Services [Member] | Customer Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,022 | 1,951 | 2,045 | ||||||||
Data And Internet Services [Member] | Customer Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,337 | 1,948 | 1,866 | ||||||||
Other Customer Revenues [Member] | Customer Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 540 | $ 354 | $ 299 |
Recent Accounting Pronounceme44
Recent Accounting Pronouncements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Reclassification To Long-Term Debt [Member] | |
Reclassification adjustment | $ 93 |
Reclassification To Deferred Income Taxes [Member] | |
Reclassification adjustment | $ 71 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) item in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)item | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Cash paid for acquisition | $ 17,000,000 | $ 2,018,000,000 | |||||||||
Acquisition and integration costs | $ 86,000,000 | $ 58,000,000 | $ 35,000,000 | $ 57,000,000 | $ 70,000,000 | $ 42,000,000 | $ 19,000,000 | $ 11,000,000 | 236,000,000 | 142,000,000 | $ 10,000,000 |
Capital Expenditures Integration Activities | 153,000,000 | 116,000,000 | |||||||||
Revenue | 1,413,000,000 | 1,424,000,000 | 1,368,000,000 | 1,371,000,000 | 1,330,000,000 | 1,141,000,000 | 1,147,000,000 | 1,154,000,000 | 5,576,000,000 | 4,772,000,000 | 4,762,000,000 |
Operating income | 182,000,000 | 207,000,000 | 193,000,000 | $ 163,000,000 | 173,000,000 | $ 197,000,000 | $ 224,000,000 | $ 226,000,000 | 745,000,000 | 820,000,000 | 981,000,000 |
Goodwill | 7,166,000,000 | $ 7,205,000,000 | 7,166,000,000 | 7,205,000,000 | |||||||
Restricted cash, excluding interest income | 8,440,000,000 | 8,440,000,000 | |||||||||
Restricted cash | 8,444,000,000 | 8,444,000,000 | |||||||||
Interest Income [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Restricted cash | 4,000,000 | 4,000,000 | |||||||||
2015 JP Morgan Credit Agreement [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt instrument, face amount | 1,500,000,000 | 1,500,000,000 | |||||||||
Connecticut Operations [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition and integration costs | 40,000,000 | 142,000,000 | |||||||||
Acquisition costs | 1,000,000 | 15,000,000 | $ 10,000,000 | ||||||||
Integration costs | 39,000,000 | 127,000,000 | |||||||||
Capital Expenditures Integration Activities | 24,000,000 | 116,000,000 | |||||||||
Revenue | 1,049,000,000 | 216,000,000 | |||||||||
Operating income | 100,000,000 | $ 38,000,000 | |||||||||
Goodwill | 815,000,000 | 815,000,000 | |||||||||
Goodwill deductible for income tax purposes | 75,000,000 | 75,000,000 | |||||||||
Verizon Transaction [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition purchase price | $ 10,540,000,000 | 10,540,000,000 | |||||||||
Acquisition and integration costs | 196,000,000 | ||||||||||
Acquisition costs | 44,000,000 | ||||||||||
Integration costs | 152,000,000 | ||||||||||
Capital Expenditures Integration Activities | $ 129,000,000 | ||||||||||
Number of voice connections acquired | item | 3.3 | 3.3 | |||||||||
Number of broadband connections acquired | item | 2.1 | 2.1 | |||||||||
Number of video connections acquired | item | 1.2 | 1.2 | |||||||||
Connect America Funding Conditionally Accepted | $ 49,000,000 | ||||||||||
Proceeds from equity issuance | $ 2,750,000,000 | ||||||||||
Verizon Transaction [Member] | Senior Unsecured Debt [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt instrument, face amount | 6,600,000,000 | ||||||||||
Verizon Transaction [Member] | 2015 JP Morgan Credit Agreement [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,500,000,000 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $ 7,166 | $ 7,205 |
Connecticut Operations [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | 69 | |
Property, plant and equipment | 1,459 | |
Goodwill | 815 | |
Other intangibles - customer list | 570 | |
Current liabilities | (94) | |
Deferred income taxes | (576) | |
Other liabilities | (225) | |
Total net assets acquired | $ 2,018 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Acquisitions [Abstract] | ||
Revenue | $ 5,775 | $ 6,011 |
Operating income | 985 | 1,049 |
Net income attributable to Frontier common shareholders | $ 191 | $ 83 |
Basic and diluted net income per share attributable to Frontier common shareholders | $ 0.19 | $ 0.08 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Receivable [Abstract] | |||
Provision for uncollectible amounts | $ 50 | $ 61 | $ 66 |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable [Abstract] | ||
Retail and Wholesale | $ 569 | $ 630 |
Other | 59 | 56 |
Less: Allowance for doubtful accounts | (57) | (72) |
Accounts receivable, net | $ 571 | $ 614 |
Accounts Receivable (Schedule O
Accounts Receivable (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for Doubtful Accounts, Beginning of Period | $ 72 | ||
Allowance for Doubtful Accounts, End of Period | 57 | $ 72 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for Doubtful Accounts, Beginning of Period | 72 | 71 | $ 93 |
Charged to Other Revenue | 67 | 61 | 69 |
Charged (Credited) to Switched and Nonswitched Revenue and Other Accounts | (17) | (3) | |
Write-offs, net of Recoveries | (65) | (60) | (88) |
Allowance for Doubtful Accounts, End of Period | $ 57 | $ 72 | $ 71 |
Property, Plant And Equipment51
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant And Equipment [Abstract] | |||
Depreciation expense | $ 983 | $ 835 | $ 841 |
Property, Plant And Equipment52
Property, Plant And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 17,801 | $ 16,946 |
Less: Accumulated depreciation | (9,308) | (8,380) |
Property, plant and equipment, net | 8,493 | 8,566 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 151 | 147 |
Buildings and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,327 | 1,326 |
Estimated useful lives | 41 years | |
General support [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,146 | 1,037 |
General support [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 17 years | |
General support [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Central office/electronic circuit equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 6,244 | 5,934 |
Central office/electronic circuit equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 18 years | |
Central office/electronic circuit equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Poles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 712 | 672 |
Estimated useful lives | 30 years | |
Cable and wire [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 7,280 | 6,973 |
Cable and wire [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Cable and wire [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years | |
Conduit [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 515 | 509 |
Estimated useful lives | 55 years | |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 47 | 47 |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 12 years | |
Construction Work In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction work in progress | $ 379 | $ 301 |
Goodwill And Other Intangible53
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 337 | $ 304 | $ 329 |
Estimated future amortization expense, year 1 | 285 | ||
Estimated future amortization expense, year 2 | 230 | ||
Estimated future amortization expense, year 3 | 175 | ||
Estimated future amortization expense, year 4 | 120 | ||
Estimated future amortization expense, year 5 | $ 80 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 9 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 12 years |
Goodwill And Other Intangible54
Goodwill And Other Intangibles (Schedule Of Goodwill Activity) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 7,205 |
Goodwill, Ending Balance | 7,166 |
Connecticut Operations [Member] | |
Goodwill [Line Items] | |
Connecticut Acquisition (Note 3) | (53) |
Goodwill, Ending Balance | 815 |
Other Acquisitions [Member] | |
Goodwill [Line Items] | |
Other Acquisition | $ 14 |
Goodwill And Other Intangible55
Goodwill And Other Intangibles (Components Of Other Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,120 | $ 3,140 |
Accumulated Amortization | (1,977) | (1,640) |
Net Carrying Amount | 1,143 | 1,500 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,998 | 3,018 |
Accumulated Amortization | (1,977) | (1,640) |
Net Carrying Amount | 1,021 | 1,378 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 122 | 122 |
Net Carrying Amount | $ 122 | $ 122 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Apr. 10, 2013USD ($) | Apr. 24, 2013USD ($)$ / shares | Jun. 30, 2013USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)property | Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | $ 16,086,000,000 | $ 9,781,000,000 | ||||||
Proceeds from debt, net of issuance costs | 1,519,000,000 | |||||||
Loss on early extinguishment of debt | $ (160,000,000) | |||||||
Line of credit facility, current borrowings | 50,000,000 | |||||||
Other liabilities | $ 240,000,000 | $ 238,000,000 | ||||||
Sale and leaseback term, minimum (in years) | 12 years | |||||||
Sale and leaseback term, maximum (in years) | 23 years | |||||||
2013 Pension Real Estate Contributions [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of properties contributed | property | 4 | |||||||
Fair value of property contributed to plan | $ 23,000,000 | |||||||
Pension Building Contribution Aggregate Annual Rent | $ 2,000,000 | |||||||
Lease term of contributed property | 15 years | |||||||
Other liabilities | $ 23,000,000 | |||||||
Senior Note Due 3/15/2015 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 6.625% | |||||||
Debt Instrument, Issuance Date | Apr. 24, 2013 | |||||||
Debt instrument, maturity date | Mar. 15, 2015 | |||||||
Aggregate principal amount agreed to be purchased | $ 194,000,000 | $ 1,000,000 | ||||||
Amount of consideration for purchase of notes | $ 216,000,000 | 1,000,000 | ||||||
Senior Note Due 4/15/2015 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.875% | |||||||
Debt instrument, maturity date | Apr. 15, 2015 | |||||||
Aggregate principal amount agreed to be purchased | $ 277,000,000 | 1,000,000 | ||||||
Amount of consideration for purchase of notes | 316,000,000 | 1,000,000 | ||||||
Senior Note Due 10/14/2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 575,000,000 | |||||||
Debt instrument, maturity date | Oct. 14, 2016 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | $ 14,000,000 | |||||||
Initial pricing for LIBOR based borrowings (in hundredths) | 2.375% | |||||||
Senior Note Due 4/15/2017 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.25% | |||||||
Debt instrument, maturity date | Apr. 15, 2017 | |||||||
Aggregate principal amount agreed to be purchased | 225,000,000 | |||||||
Amount of consideration for purchase of notes | 268,000,000 | |||||||
Repurchase of senior notes | $ 209,000,000 | |||||||
Senior Note Due 10/1/2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.125% | |||||||
Debt instrument, maturity date | Oct. 1, 2018 | |||||||
Repurchase of senior notes | $ 17,000,000 | |||||||
Senior Note Due 4/15/2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.50% | |||||||
Debt instrument, maturity date | Apr. 15, 2020 | |||||||
Repurchase of senior notes | $ 79,000,000 | |||||||
Senior Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||
Interest Rate | 7.625% | |||||||
Debt Instrument, Issuance Date | Apr. 10, 2013 | |||||||
Debt instrument, maturity date | Apr. 15, 2024 | |||||||
Issue price expressed as a percentage of principal amount (in hundredths) | 100.00% | |||||||
Proceeds from debt, net of issuance costs | $ 737,000,000 | |||||||
Secured Equipment Financing [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.00% | |||||||
Secured equipment financing | $ 3,000,000 | $ 11,000,000 | ||||||
Secured equipment financing term | 4 years | |||||||
Verizon Bridge Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 184,000,000 | |||||||
Accrued financing liabilities | 173,000,000 | |||||||
Senior Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | $ 15,805,000,000 | $ 9,500,000,000 | ||||||
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2015 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 6.625% | |||||||
Remaining outstanding principal | $ 105,000,000 | |||||||
Debt instrument, maturity date | Mar. 15, 2015 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2015 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.875% | |||||||
Remaining outstanding principal | $ 97,000,000 | |||||||
Debt instrument, maturity date | Apr. 15, 2015 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 10/14/2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 2.805% | 3.045% | ||||||
Remaining outstanding principal | $ 344,000,000 | $ 402,000,000 | ||||||
Debt instrument, maturity date | [1] | Oct. 14, 2016 | ||||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2017 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.25% | 8.25% | ||||||
Remaining outstanding principal | $ 607,000,000 | $ 607,000,000 | ||||||
Debt instrument, maturity date | Apr. 15, 2017 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 10/1/2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.125% | 8.125% | ||||||
Remaining outstanding principal | $ 583,000,000 | $ 583,000,000 | ||||||
Debt instrument, maturity date | Oct. 1, 2018 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.50% | 8.50% | ||||||
Remaining outstanding principal | $ 1,022,000,000 | $ 1,022,000,000 | ||||||
Debt instrument, maturity date | Apr. 15, 2020 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||
Interest Rate | 8.875% | |||||||
Remaining outstanding principal | $ 1,000,000,000 | |||||||
Debt instrument, maturity date | Sep. 15, 2020 | |||||||
Issue price expressed as a percentage of principal amount (in hundredths) | 100.00% | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 9.25% | 9.25% | ||||||
Remaining outstanding principal | $ 500,000,000 | $ 500,000,000 | ||||||
Debt instrument, maturity date | Jul. 1, 2021 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 775,000,000 | |||||||
Interest Rate | 6.25% | 6.25% | ||||||
Remaining outstanding principal | $ 775,000,000 | $ 775,000,000 | ||||||
Debt instrument, maturity date | Sep. 15, 2021 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 2,000,000,000 | |||||||
Interest Rate | 10.50% | |||||||
Remaining outstanding principal | $ 2,000,000,000 | |||||||
Debt instrument, maturity date | Sep. 15, 2022 | |||||||
Issue price expressed as a percentage of principal amount (in hundredths) | 100.00% | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.125% | 7.125% | ||||||
Remaining outstanding principal | $ 850,000,000 | $ 850,000,000 | ||||||
Debt instrument, maturity date | Jan. 15, 2023 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 775,000,000 | |||||||
Interest Rate | 6.875% | 6.875% | ||||||
Remaining outstanding principal | $ 775,000,000 | $ 775,000,000 | ||||||
Debt instrument, maturity date | Jan. 15, 2025 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 3,600,000,000 | |||||||
Interest Rate | 11.00% | |||||||
Remaining outstanding principal | $ 3,600,000,000 | |||||||
Debt instrument, maturity date | Sep. 15, 2025 | |||||||
Issue price expressed as a percentage of principal amount (in hundredths) | 100.00% | |||||||
Senior Unsecured Debt [Member] | Verizon Transaction [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 6,600,000,000 | |||||||
Proceeds from debt, net of issuance costs | $ 6,485,000,000 | |||||||
CoBank Term Loan 2014 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 350,000,000 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | $ 9,000,000 | |||||||
Interest Rate Margin | 3.375% | |||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount agreed to be purchased | 471,000,000 | |||||||
Amount of consideration for purchase of notes | $ 532,000,000 | |||||||
Loss on early extinguishment of debt | (105,000,000) | (55,000,000) | ||||||
Loss on early extinguishment of debt, net of tax | $ 65,000,000 | $ 34,000,000 | ||||||
Loss on early extinguishment of debt, net of tax (in dollars per share) | $ / shares | $ 0.06 | $ 0.04 | ||||||
2015 JP Morgan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,500,000,000 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | 19,000,000 | |||||||
Line Of Credit Facility Increased Periodic Payment Principal | 38,000,000 | |||||||
2015 JP Morgan Credit Agreement [Member] | Verizon Transaction [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,500,000,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility maximum borrowing capacity | 750,000,000 | |||||||
Line of credit facility, current borrowings | $ 0 | |||||||
Interest Rate (in thousandths) | 0.45% | |||||||
Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Initial pricing for LIBOR based borrowings (in hundredths) | 1.50% | |||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Initial pricing for LIBOR based borrowings (in hundredths) | 2.50% | |||||||
Minimum [Member] | Senior Note Due 10/14/2016 [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 0.875% | |||||||
Minimum [Member] | Senior Note Due 10/14/2016 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 1.875% | |||||||
Minimum [Member] | CoBank Term Loan 2014 [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 0.875% | |||||||
Minimum [Member] | CoBank Term Loan 2014 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 1.875% | |||||||
Minimum [Member] | 2015 JP Morgan Credit Agreement [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 0.75% | |||||||
Minimum [Member] | 2015 JP Morgan Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 1.75% | |||||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 0.50% | |||||||
Minimum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 1.50% | |||||||
Maximum [Member] | Senior Note Due 10/14/2016 [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 2.875% | |||||||
Maximum [Member] | Senior Note Due 10/14/2016 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 3.875% | |||||||
Maximum [Member] | CoBank Term Loan 2014 [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 2.875% | |||||||
Maximum [Member] | CoBank Term Loan 2014 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 3.875% | |||||||
Maximum [Member] | 2015 JP Morgan Credit Agreement [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 1.75% | |||||||
Maximum [Member] | 2015 JP Morgan Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 2.75% | |||||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 1.50% | |||||||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Margin | 2.50% | |||||||
[1] | * Represents borrowings under the 2011 CoBank Credit Agreement, as defined below. |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | $ 9,781 | ||
Payments and Retirements | (298) | ||
New Borrowings | 6,603 | ||
Long-term debt, ending balance | 9,781 | $ 9,781 | $ 16,086 |
Less: Debt Issuance Cost | (196) | (93) | |
Less: Debt Premium | 3 | 2 | |
Less: Current Portion | (298) | (384) | |
Principal Outstanding | 9,393 | $ 15,508 | |
Weighted average interest rate | 8.99% | ||
Subsidiary Senior Notes And Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 9,750 | ||
Payments and Retirements | (295) | ||
New Borrowings | 6,600 | ||
Long-term debt, ending balance | 9,750 | 9,750 | $ 16,055 |
Weighted average interest rate | 9.00% | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 23 | ||
Payments and Retirements | (3) | ||
New Borrowings | 3 | ||
Long-term debt, ending balance | 23 | 23 | $ 23 |
Weighted average interest rate | 3.78% | ||
Rural Utilities Service Loan Contracts [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | $ 8 | ||
Payments and Retirements | |||
New Borrowings | |||
Long-term debt, ending balance | $ 8 | $ 8 | $ 8 |
Weighted average interest rate | 6.15% |
Long-Term Debt (Senior Unsecure
Long-Term Debt (Senior Unsecured Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2013 | Apr. 10, 2013 | ||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 16,086 | $ 9,781 | |||
Senior Note Due 3/15/2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 6.625% | ||||
Debt instrument, maturity date | Mar. 15, 2015 | ||||
Senior Note Due 4/15/2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 7.875% | ||||
Debt instrument, maturity date | Apr. 15, 2015 | ||||
Senior Note Due 10/14/2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Oct. 14, 2016 | ||||
Senior Note Due 4/15/2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 8.25% | ||||
Debt instrument, maturity date | Apr. 15, 2017 | ||||
Senior Note Due 10/1/2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 8.125% | ||||
Debt instrument, maturity date | Oct. 1, 2018 | ||||
Senior Note Due 4/15/2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 8.50% | ||||
Debt instrument, maturity date | Apr. 15, 2020 | ||||
Senior Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 15,805 | $ 9,500 | |||
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 105 | ||||
Interest Rate | 6.625% | ||||
Debt instrument, maturity date | Mar. 15, 2015 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 97 | ||||
Interest Rate | 7.875% | ||||
Debt instrument, maturity date | Apr. 15, 2015 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 10/14/2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 344 | $ 402 | |||
Interest Rate | 2.805% | 3.045% | |||
Debt instrument, maturity date | [1] | Oct. 14, 2016 | |||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 607 | $ 607 | |||
Interest Rate | 8.25% | 8.25% | |||
Debt instrument, maturity date | Apr. 15, 2017 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 10/1/2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 583 | $ 583 | |||
Interest Rate | 8.125% | 8.125% | |||
Debt instrument, maturity date | Oct. 1, 2018 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 434 | $ 434 | |||
Interest Rate | 7.125% | 7.125% | |||
Debt instrument, maturity date | Oct. 24, 2019 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 10/24/2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 315 | $ 350 | |||
Interest Rate | 3.805% | 3.545% | |||
Debt instrument, maturity date | [2] | Oct. 24, 2019 | |||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 1,022 | $ 1,022 | |||
Interest Rate | 8.50% | 8.50% | |||
Debt instrument, maturity date | Apr. 15, 2020 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 1,000 | ||||
Interest Rate | 8.875% | ||||
Debt instrument, maturity date | Sep. 15, 2020 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 500 | $ 500 | |||
Interest Rate | 9.25% | 9.25% | |||
Debt instrument, maturity date | Jul. 1, 2021 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 775 | $ 775 | |||
Interest Rate | 6.25% | 6.25% | |||
Debt instrument, maturity date | Sep. 15, 2021 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 500 | $ 500 | |||
Interest Rate | 8.75% | 8.75% | |||
Debt instrument, maturity date | Apr. 15, 2022 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 2,000 | ||||
Interest Rate | 10.50% | ||||
Debt instrument, maturity date | Sep. 15, 2022 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 850 | $ 850 | |||
Interest Rate | 7.125% | 7.125% | |||
Debt instrument, maturity date | Jan. 15, 2023 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 750 | $ 750 | |||
Interest Rate | 7.625% | 7.625% | |||
Debt instrument, maturity date | Apr. 15, 2024 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 775 | $ 775 | |||
Interest Rate | 6.875% | 6.875% | |||
Debt instrument, maturity date | Jan. 15, 2025 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 3,600 | ||||
Interest Rate | 11.00% | ||||
Debt instrument, maturity date | Sep. 15, 2025 | ||||
Senior Unsecured Debt [Member] | Debenture Due 11/1/2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 138 | $ 138 | |||
Interest Rate | 7.00% | 7.00% | |||
Debt instrument, maturity date | Nov. 1, 2025 | ||||
Senior Unsecured Debt [Member] | Debenture Due 8/15/2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 2 | $ 2 | |||
Interest Rate | 6.80% | 6.80% | |||
Debt instrument, maturity date | Aug. 15, 2026 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 346 | $ 346 | |||
Interest Rate | 7.875% | 7.875% | |||
Debt instrument, maturity date | Jan. 15, 2027 | ||||
Senior Unsecured Debt [Member] | Senior Note Due 8/15/2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 945 | $ 945 | |||
Interest Rate | 9.00% | 9.00% | |||
Debt instrument, maturity date | Aug. 15, 2031 | ||||
Senior Unsecured Debt [Member] | Debenture Due 10/1/2034 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 1 | $ 1 | |||
Interest Rate | 7.68% | 7.68% | |||
Debt instrument, maturity date | Oct. 1, 2034 | ||||
Senior Unsecured Debt [Member] | Debenture Due 7/1/2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 125 | $ 125 | |||
Interest Rate | 7.45% | 7.45% | |||
Debt instrument, maturity date | Jul. 1, 2035 | ||||
Senior Unsecured Debt [Member] | Debenture Due 10/1/2046 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 193 | $ 193 | |||
Interest Rate | 7.05% | 7.05% | |||
Debt instrument, maturity date | Oct. 1, 2046 | ||||
Subsidiary Debentures [Member] | Subsidiary Senior Note Due 2/15/2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 200 | $ 200 | |||
Interest Rate | 6.73% | 6.73% | |||
Debt instrument, maturity date | Feb. 15, 2028 | ||||
Subsidiary Debentures [Member] | Subsidiary Senior Note Due 10/15/2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 50 | $ 50 | |||
Interest Rate | 8.40% | 8.40% | |||
Debt instrument, maturity date | Oct. 15, 2029 | ||||
Subsidiary Senior Notes And Debentures [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 16,055 | $ 9,750 | |||
Weighted average interest rate | [3] | 8.74% | 7.45% | ||
[1] | * Represents borrowings under the 2011 CoBank Credit Agreement, as defined below. | ||||
[2] | ** Represents borrowings under the 2014 CoBank Credit Agreement, as defined below. | ||||
[3] | *** Interest rate represents a weighted average of the stated interest rates of multiple issuances. |
Long-Term Debt (Debt Maturities
Long-Term Debt (Debt Maturities By Year) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Long-Term Debt [Abstract] | |
Principal Payments 2016 | $ 384 |
Principal Payments 2017 | 646 |
Principal Payments 2018 | 620 |
Principal Payments 2019 | 645 |
Principal Payments 2020 | 2,022 |
Principal Payments Thereafter | $ 11,769 |
Long-Term Debt (Schedule Of Fut
Long-Term Debt (Schedule Of Future Minimum Lease Obligations) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Finance Lease Obligations, Future Minimum Payments [Abstract] | |
2,016 | $ 7 |
2,017 | 7 |
2,018 | 8 |
2,019 | 8 |
2,020 | 8 |
Thereafter | 55 |
Total future payments | 93 |
Less: Amounts representing interest | (52) |
Present value of minimum lease payments | 41 |
Capital Lease Obligations, Future Minimum Payments [Abstract] | |
2,016 | 3 |
2,017 | 3 |
2,018 | 3 |
2,019 | 4 |
2,020 | 4 |
Thereafter | 13 |
Total future payments | 30 |
Less: Amounts representing interest | (7) |
Present value of minimum lease payments | $ 23 |
Investment and Other Income, 61
Investment and Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment and Other Income, Net [Abstract] | |||
Gain on sale of Fairmount Cellular LLC | $ 25 | ||
Gain on sale of 700 MHz spectrum | 12 | ||
Interest and dividend income | $ 7 | 2 | $ 2 |
Investment gain | 2 | ||
Gain on expiration/settlement of customer advances | 3 | ||
Split-dollar life insurance proceeds | 2 | ||
Investment and other income, net | $ 7 | $ 39 | $ 9 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 | |
Proceeds from Issuance of Common Stock | $ 799 | ||
Preferred Stock, Dividend Rate, Percentage | 11.125% | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||
Adjustments to Additional Paid in Capital, Preferred Dividends in Excess of Retained Earnings | $ 120 | ||
Proceeds from Issuance of Preferred Stock and Preference Stock | 1,866 | ||
Restricted cash | $ 8,444 | ||
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Stock Issued During Period Shares Excluding Over Allotment New Issues | 150,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.25 | ||
Shares Issued, Price Per Share | $ 5 | ||
Over Allotment Option Shares Issued | 15,000,000 | ||
Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Stock Issued During Period Shares Excluding Over Allotment New Issues | 17,500,000 | ||
Shares Issued, Price Per Share | $ 100 | ||
Over Allotment Option Shares Issued | 1,750,000 | ||
Preferred Stock, Dividend Rate, Percentage | 11.125% | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||
Preferred Stock, Liquidation Preference Per Share | $ 100 | ||
Preferred dividends | $ 120 | ||
Restricted cash | 1,955 | ||
Proceeds from Equity, Net of Issuance Costs | $ 2,665 | ||
Minimum [Member] | Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 17.0213 | ||
Maximum [Member] | Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 20 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ / shares in Units, $ in Millions | Feb. 25, 2015shares | Feb. 17, 2014shares | Sep. 30, 2013 | Dec. 31, 2015USD ($)ShareBasedCompensationPlanentity$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2012USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock-based compensation plan under which grants were made | ShareBasedCompensationPlan | 6 | ||||||
Number of stock-based compensation plan under which grants were not made | ShareBasedCompensationPlan | 4 | ||||||
Shares authorized for grant under the plans (in shares) | 22,541,000 | ||||||
Shares available for grant under the plan (in shares) | 12,475,000 | ||||||
Unrecognized compensation cost | $ | $ 0 | ||||||
Non Employee Directors Compensation Plans | |||||||
Exercisable at end of period (in shares) | 50,000 | 83,000 | 83,000 | ||||
Exercisable at end of period (in dollars per share) | $ / shares | $ 13.40 | $ 13.23 | $ 13.23 | ||||
Deferred Fee Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for grant under the plans (in shares) | 541,000 | ||||||
EIP Plans [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for grant under the plans (in shares) | 20,000,000 | ||||||
Shares available for grant under the plan (in shares) | 11,998,000 | ||||||
Shares granted (in shares) | 0 | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for grant under the plans (in shares) | 1,124,000 | ||||||
Expense recognized during the period | $ | $ 7 | $ 4 | $ 1 | ||||
Shares granted (in shares) | 665,000 | 1,028,000 | 738,000 | 1,037,000 | 1,124,000 | 979,000 | |
Performance Shares | |||||||
Initial period over which target number of performance shares are awarded | 90 days | ||||||
Measurement period | 3 years | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expense recognized during the period | $ | $ 20 | $ 16 | $ 14 | ||||
Shares granted (in shares) | 2,815,000 | 4,314,000 | 3,360,000 | ||||
Restricted Stock | |||||||
Restricted stock granted | $ | $ 13 | $ 29 | $ 16 | ||||
Restricted stock vested | $ | 15 | 16 | 14 | ||||
Fair value of unvested restricted stock | $ | $ 33 | $ 52 | $ 29 | $ 30 | |||
Restriced stock, grant date fair value per share | $ / shares | $ 5.93 | $ 4.75 | $ 4.80 | $ 6.08 | |||
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ | $ 24 | ||||||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 1 year 2 months 12 days | ||||||
Non-Employee Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for grant under the plans (in shares) | 2,541,000 | ||||||
Shares available for grant under the plan (in shares) | 477,000 | ||||||
Expense recognized during the period | $ | $ (1) | $ 4 | $ 2 | ||||
Non Employee Directors Compensation Plans | |||||||
Plan units earned during the period (in shares) | 334,188 | 237,607 | 374,383 | ||||
Number of directors participating in the plan during the period | entity | 10 | ||||||
Cash value of the fees payable to the director as a percentage of closing prices of common stock (in hundredths) | 85.00% | ||||||
Cash compensation | $ | $ 1 | $ 1 | $ 1 | ||||
Exercisable at end of period (in shares) | 40,000 | ||||||
Exercisable at end of period (in dollars per share) | $ / shares | $ 10.37 |
Stock Plans (LTIP Target Perfor
Stock Plans (LTIP Target Performance Shares) (Details) - Performance Shares [Member] - shares | Feb. 25, 2015 | Feb. 17, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Balance at beginning of period (in shares) | 1,749,000 | 2,682,000 | 1,749,000 | 979,000 | ||
Shares granted (in shares) | 665,000 | 1,028,000 | 738,000 | 1,037,000 | 1,124,000 | 979,000 |
Shares vested (in shares) | (743,000) | |||||
Shares forfeited (in shares) | (152,000) | (104,000) | (354,000) | |||
Balance at end of period (in shares) | 2,525,000 | 2,682,000 | 1,749,000 | 979,000 |
Stock Plans (Restricted Shares
Stock Plans (Restricted Shares Outstanding) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance at beginning of period (in shares) | 7,807 | 6,234 | 7,049 |
Shares granted (in shares) | 2,815 | 4,314 | 3,360 |
Shares vested (in shares) | (3,215) | (2,372) | (3,097) |
Shares forfeited (in shares) | (359) | (369) | (1,078) |
Balance at end of period (in shares) | 7,048 | 7,807 | 6,234 |
Balance at beginning of period (in dollars per shares) | $ 4.75 | $ 4.80 | $ 6.08 |
Restricted stock granted (in dollars per shares) | 7.92 | 4.91 | 4.10 |
Restricted stock vested (in dollars per shares) | 4.89 | 5.22 | 6.78 |
Restricted stock forfeited (in dollars per shares) | 5.10 | 4.55 | 5.26 |
Balance at end of period (in dollars per shares) | $ 5.93 | $ 4.75 | $ 4.80 |
Balance at beginning of period | $ 52 | $ 29 | $ 30 |
Restricted stock granted | 13 | 29 | 16 |
Restricted stock vested | 15 | 16 | 14 |
Balance at end of period | $ 33 | $ 52 | $ 29 |
Stock Plans (Options Outstandin
Stock Plans (Options Outstanding) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares Subject to Option [Roll forward] | |||
Balance at beginning of period (in shares) | 83,000 | ||
Options canceled, forfeited or lapsed (in shares) | (33,000) | ||
Balance at end of period (in shares) | 50,000 | 83,000 | |
Exercisable at end of period (in shares) | 50,000 | 83,000 | 83,000 |
Weighted Average Option Price Per Share [Abstract] | |||
Balance at beginning of period (in dollars per share) | $ 13.23 | $ 13.23 | |
Options canceled, forfeited or lapsed (in dollars per share) | 12.96 | ||
Balance at end of period (in dollars per share) | $ 13.40 | $ 13.23 | |
Weighted Average Remaining Life in Years [Abstract] | |||
Weighted Average Remaining Life in Years | 0 years | 9 months 18 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Adjustment of deferred tax balances | $ 3 | $ 23 | $ 7 |
Domestic production activities deduction | 14 | ||
Federal research and development credits | 5 | 5 | 5 |
Reversal of reserves for uncertain tax postions | 2 | ||
Tax reserve adjustment | 11 | ||
Settlement of 2010 IRS audit | 5 | ||
Non-deductible transaction costs | 2 | $ 3 | |
Effect of expiration of statute of limitations during next twelve months | 1 | ||
Federal net operating loss carryforward | 244 | ||
State tax operating loss carryforward | 4,100 | ||
Gross tax liability for tax positions that may not be sustained under a more likely than not threshold | 20 | ||
Additional interest recognized on tax liability | 1 | ||
Accrued interest on tax liability | $ 1 | $ 1 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Consolidated tax provision at federal statutory rate | 35.00% | 35.00% | 35.00% |
State income tax provisions, net of federal income tax benefit | 8.70% | 1.60% | (2.70%) |
Noncontrolling interest | (0.60%) | ||
Tax reserve adjustment | (0.30%) | 6.90% | (1.10%) |
Domestic production activities deduction | (8.70%) | ||
Changes in certain deferred tax balances | 0.80% | (14.10%) | (4.00%) |
IRS audit adjustments | 3.20% | ||
Federal research and development credit | 1.50% | (3.30%) | (3.20%) |
Non-deductible transaction costs | 0.40% | 1.00% | 2.00% |
All other, net | (0.30%) | 0.30% | 0.40% |
Effective tax rate | 45.80% | 18.70% | 29.00% |
Income Taxes (Components Of Net
Income Taxes (Components Of Net Deferred Income Tax Liability (Asset) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax liabilities [Abstract] | ||
Property, plant and equipment basis differences | $ 2,401 | $ 2,451 |
Intangibles | 960 | 1,076 |
Other, net | 15 | 24 |
Gross deferred income tax liability | 3,376 | 3,551 |
Deferred income tax assets [Abstract] | ||
Pension liability | 222 | 247 |
Tax operating loss carryforward | 295 | 162 |
Employee benefits | 262 | 304 |
Accrued expenses | 50 | 55 |
Allowance for doubtful accounts | 10 | 16 |
Other, net | 48 | 39 |
Gross deferred income tax asset | 887 | 823 |
Less: Valuation allowance | (177) | (140) |
Net deferred income tax asset | 710 | 683 |
Net deferred income tax liability | $ 2,666 | $ 2,868 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current [Abstract] | |||
Federal | $ 8 | $ 98 | $ 55 |
State | (6) | 10 | |
Total current | 2 | 108 | 55 |
Deferred [Abstract] | |||
Federal | (126) | (34) | 13 |
State | (41) | (44) | (20) |
Total deferred | (167) | (78) | (7) |
Income Tax Expense (Benefit), Total | (165) | 30 | 48 |
Income taxes charged (credited) to shareholders' equity of Frontier [Abstract] | |||
Utilization of the benefits arising from restricted stock | 2 | ||
Deferred income taxes (benefits) arising from the recognition of additional pension/OPEB liability | 36 | (90) | 132 |
Total income taxes charged (credited) to equity of Frontier | 36 | (90) | 134 |
Total income taxes | $ (129) | $ (60) | $ 182 |
Income Taxes (Changes In The Ba
Income Taxes (Changes In The Balance Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Unrecognized tax benefits - beginning of year | $ 19 | $ 9 |
Gross increases - current year tax positions | 2 | 13 |
Gross decreases - expired statute of limitations | (2) | (3) |
Unrecognized tax benefits - end of year | $ 19 | $ 19 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation of diluted earnings per share (in shares) | 50,000 | 83,000 | 83,000 |
Non-Employee Directors' Deferred Fee Plan and Equity Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation of diluted earnings per share (in shares) | 1,437,183 | 1,102,995 | 1,238,542 |
Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation of diluted earnings per share (in shares) | 19,250,000 |
Net Income (Loss) Per Share (Ca
Net Income (Loss) Per Share (Calculation Of Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income (Loss) Per Share [Abstract] | |||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (156) | $ (81) | $ (28) | $ (51) | $ 14 | $ 42 | $ 38 | $ 39 | $ (316) | $ 133 | $ 113 |
Less: Dividends paid on unvested restricted stock awards | (3) | (3) | (3) | ||||||||
Total basic and diluted net income (loss) attributable to Frontier common shareholders | $ (319) | $ 130 | $ 110 | ||||||||
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 1,091,798 | 1,001,812 | 999,126 | ||||||||
Less: Weighted average unvested restricted stock awards (in shares) | (7,192) | (7,394) | (6,467) | ||||||||
Total weighted average shares outstanding - basic (in shares) | 1,084,606 | 994,418 | 992,659 | ||||||||
Net income (loss) per share attributable to common shareholders of Frontier (in dollars per share) | $ (0.14) | $ (0.07) | $ (0.03) | $ (0.05) | $ 0.01 | $ 0.04 | $ 0.04 | $ 0.04 | $ (0.29) | $ 0.13 | $ 0.11 |
Effect of dilutive shares (in shares) | 3,744 | 1,338 | |||||||||
Total weighted average shares outstanding - diluted (in shares) | 1,084,606 | 998,162 | 993,997 | ||||||||
Diluted net income (loss) per share attributable to Frontier common shareholders | $ (0.29) | $ 0.13 | $ 0.11 |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss, Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | $ 3,658 | $ 4,055 | $ 4,119 |
Other comprehensive income (loss), net of tax | 51 | (143) | 196 |
Balance, ending | 5,614 | 3,658 | 4,055 |
Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Actuarial gains (losses) | (29) | (20) | |
Defined Benefit Plans [Member] | Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (532) | (412) | (698) |
Other comprehensive income (loss) before reclassifications | (81) | (140) | 205 |
Amounts reclassified from accumulated other comprehensive income (loss) | 29 | 20 | 37 |
Actuarial gains (losses) | 44 | ||
Net current-period other comprehensive income (loss) | (52) | (120) | 286 |
Balance, ending | (584) | (532) | (412) |
Defined Benefit Plans [Member] | Postretirement Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (119) | (5) | (74) |
Other comprehensive income (loss) before reclassifications | 136 | (113) | 67 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | (1) | 2 |
Net current-period other comprehensive income (loss) | 139 | (114) | 69 |
Balance, ending | 20 | (119) | (5) |
Defined Benefit Plans [Member] | Deferred Taxes On Pension And OPEB Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | 247 | 156 | 288 |
Other comprehensive income (loss) before reclassifications | (24) | 98 | (100) |
Amounts reclassified from accumulated other comprehensive income (loss) | (12) | (7) | (15) |
Actuarial gains (losses) | (17) | ||
Net current-period other comprehensive income (loss) | (36) | 91 | (132) |
Balance, ending | 211 | 247 | 156 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (404) | (261) | (484) |
Other comprehensive income (loss) before reclassifications | 31 | (155) | 172 |
Amounts reclassified from accumulated other comprehensive income (loss) | 20 | 12 | 24 |
Actuarial gains (losses) | 27 | ||
Net current-period other comprehensive income (loss) | 51 | (143) | 223 |
Other comprehensive income (loss), net of tax | 51 | (143) | 196 |
Balance, ending | $ (353) | $ (404) | $ (261) |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before income taxes | $ (361) | $ 163 | $ 163 |
Tax impact | 165 | (30) | (48) |
Net income (loss) | (196) | 133 | 115 |
Pension Benefits [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Actuarial gains (losses) | (29) | (20) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Amortization Of Defined Benefit Cost Items [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Actuarial gains (losses) | (29) | (20) | (37) |
Pension settlement costs | (44) | ||
Income before income taxes | (29) | (20) | (81) |
Tax impact | 11 | 7 | 31 |
Net income (loss) | (18) | (13) | (50) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Amortization Of Defined Benefit Cost Items [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Prior-service costs | 5 | 4 | 6 |
Actuarial gains (losses) | (8) | (3) | (8) |
Income before income taxes | (3) | 1 | (2) |
Tax impact | 1 | 1 | |
Net income (loss) | $ (2) | $ 1 | $ (1) |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Segment Information [Abstract] | |
Number of reportable segments | 1 |
Number of operating regions | 6 |
Quarterly Financial Data (Narra
Quarterly Financial Data (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Acquisition and integration costs | $ 86 | $ 58 | $ 35 | $ 57 | $ 70 | $ 42 | $ 19 | $ 11 | $ 236 | $ 142 | $ 10 |
Acquisition and integration costs, after tax | $ 47 | $ 27 | $ 23 | $ 35 | $ 44 | $ 27 | $ 13 | $ 7 | |||
Acquisition and integration costs, after tax effect on net income (in dollars per share) | $ 0.04 | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | $ 0.03 | $ 0.01 | $ 0.01 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $ 1,413 | $ 1,424 | $ 1,368 | $ 1,371 | $ 1,330 | $ 1,141 | $ 1,147 | $ 1,154 | $ 5,576 | $ 4,772 | $ 4,762 |
Operating income | 182 | 207 | 193 | 163 | 173 | 197 | 224 | 226 | 745 | 820 | 981 |
Net income (loss) attributable to Frontier common shareholders | $ (156) | $ (81) | $ (28) | $ (51) | $ 14 | $ 42 | $ 38 | $ 39 | $ (316) | $ 133 | $ 113 |
Basic net income (loss) per share attributable to Frontier common shareholders | $ (0.14) | $ (0.07) | $ (0.03) | $ (0.05) | $ 0.01 | $ 0.04 | $ 0.04 | $ 0.04 | $ (0.29) | $ 0.13 | $ 0.11 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)property | Dec. 31, 2013USD ($)property | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average asset allocation (in hundreths) | 100.00% | 100.00% | |
Expected Long Term Rate Of Return On Plan Assets In Future Year In Hundreths | 7.50 | ||
Pension settlement costs | $ 44 | ||
Capitalization of pension and OPEB expense related to engineering and plant construction | $ 20 | $ 15 | 19 |
Pension/OPEB costs | 10 | (18) | 37 |
Contribution of Property | 23 | ||
Plan assets | 1,572 | 1,673 | |
Accumulated benefit obligation | 2,048 | 2,094 | |
401(k) savings plan employer contributions | $ 28 | $ 21 | $ 21 |
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.50% | 4.10% | 4.90% |
Expected long-term rate of return on plan assets (in hundredths) | 7.75% | 7.75% | 8.00% |
Expected amortization of unrecognized loss | $ 42 | ||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 165 | ||
Defined Benefit Plan, Settlements Benefit obligation threshold | $ 125 | ||
Pension settlement costs | $ 44 | ||
Defined Benefit Plan, Number of properties contributed | property | 4 | ||
Contribution of Property | $ 23 | ||
Defined Benefit Plan, Lease term of contributed property | 15 years | ||
Contributions to plans | 62 | $ 83 | 62 |
Plan assets | 1,572 | 1,673 | 1,217 |
Assets transferred to plan as a result of acquisition | 5 | 342 | |
Defined benefit plan, cash contributions by employer | 39 | ||
Benefit payments | 128 | 110 | |
Increase (Decrease) in Pension and Postretirement Obligations | 24 | ||
Pension Benefits [Member] | Receivable [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assets transferred to plan as a result of acquisition | 34 | ||
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected amortization of prior service credit | 9 | ||
Expected amortization of unrecognized loss | 2 | ||
Contributions to plans | 20 | 12 | |
Plan assets | $ 2 | ||
Benefit payments | $ 25 | $ 19 | |
Annual rate of increase in the per-capita cost of covered medical benefits (in hundredths) | 7.00% | ||
Annual rate of increase in the per-capita cost of covered medical benefits in 2024 (in hundredths) | 5.00% | ||
Effect on total of service and interest cost components, 1 percentage point increase | $ 2 | ||
Effect on postretirement benefit obligation, 1 percentage point increase | 18 | ||
Effect on total of service and interest cost components, 1 percentage point decrease | (2) | ||
Effect on postretirement benefit obligation, 1 percentage point decrease | (16) | ||
Increase (Decrease) in Pension and Postretirement Obligations | $ 66 | ||
Postretirement Benefits Other Than Pensions (OPEB) [Member] | Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.50% | 4.10% | 4.90% |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.70% | 4.20% | 5.20% |
2013 Pension Real Estate Contributions [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Number of properties contributed | property | 4 | ||
Defined Benefit Plan, Lease term of contributed property | 15 years | ||
Pension Building Contribution Aggregate Annual Rent | $ 2 | ||
Common Stock Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average asset allocation (in hundreths) | 47.00% | 45.00% | |
Common Stock Securities [Member] | Maximum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average asset allocation (in hundreths) | 40.00% | ||
Alternative Investments [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average asset allocation (in hundreths) | 6.00% | 6.00% | |
Debt Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average asset allocation (in hundreths) | 46.00% | 47.00% | |
Debt Securities [Member] | Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average asset allocation (in hundreths) | 60.00% |
Retirement Plans (Projected Ben
Retirement Plans (Projected Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 1,673 | ||
Fair value of plan assets at end of year | 1,572 | $ 1,673 | |
Amounts recognized in the consolidated balance sheet [Abstract] | |||
Pension and other postretirement benefits - current | (33) | (124) | |
Pension and other postretirement benefits - noncurrent | (1,163) | (1,141) | |
Pension Benefits [Member] | |||
Change in projected benefit obligation (PBO) [Roll Forward] | |||
PBO at beginning of year | 2,210 | 1,669 | |
PBO for plans of the Connecticut operations at contracted discount rate | 342 | ||
Actuarial adjustment to PBO for plans of the Connecticut operations | 5 | 5 | |
Service cost | 55 | 42 | $ 48 |
Interest cost | 88 | 80 | 76 |
Actuarial (gain)/loss | (88) | 182 | |
Benefits paid | (128) | (110) | |
PBO at end of year | 2,142 | 2,210 | 1,669 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1,673 | 1,217 | |
Assets transferred to plan as a result of acquisition | 5 | 342 | |
Actual return on plan assets | (40) | 141 | |
Employer contributions | 62 | 83 | 62 |
Benefits paid | (128) | (110) | |
Fair value of plan assets at end of year | 1,572 | 1,673 | 1,217 |
Funded status | (570) | (537) | |
Amounts recognized in the consolidated balance sheet [Abstract] | |||
Pension and other postretirement benefits - current | (9) | (101) | |
Pension and other postretirement benefits - noncurrent | (561) | (436) | |
Accumulated other comprehensive loss | 584 | 532 | |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |||
Change in projected benefit obligation (PBO) [Roll Forward] | |||
PBO at beginning of year | 727 | 385 | |
PBO for plans of the Connecticut operations at contracted discount rate | 5 | 211 | |
Service cost | 19 | 11 | 13 |
Interest cost | 30 | 22 | 17 |
Plan participants' contributions | 5 | 5 | |
Actuarial (gain)/loss | (115) | 115 | |
Benefits paid | (25) | (19) | |
Plan change | (20) | (3) | |
PBO at end of year | 626 | 727 | 385 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2 | ||
Plan participant's contributions | 5 | 5 | |
Employer contributions | 20 | 12 | |
Benefits paid | (25) | (19) | |
Fair value of plan assets at end of year | $ 2 | ||
Funded status | (626) | (727) | |
Amounts recognized in the consolidated balance sheet [Abstract] | |||
Pension and other postretirement benefits - current | (24) | (22) | |
Pension and other postretirement benefits - noncurrent | (602) | (705) | |
Accumulated other comprehensive loss | $ (20) | $ 119 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension settlement costs | $ 44 | ||
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 55 | $ 42 | 48 |
Interest cost on projected benefit obligation | 88 | 80 | 76 |
Expected return on plan assets | (129) | (99) | (95) |
Amortization of unrecognized loss | 29 | 20 | 37 |
Net periodic pension benefit cost | 43 | 43 | 66 |
Pension settlement costs | 44 | ||
Net periodic benefit cost | 43 | 43 | 110 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 19 | 11 | 13 |
Interest cost on projected benefit obligation | 30 | 22 | 17 |
Amortization of prior service cost/(credit) | (5) | (4) | (6) |
Amortization of unrecognized loss | 8 | 3 | 8 |
Net periodic benefit cost | $ 52 | $ 32 | $ 32 |
Retirement Plans (Asset Allocat
Retirement Plans (Asset Allocations) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 100.00% | 100.00% |
Common Stock Securities [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 47.00% | 45.00% |
Debt Securities [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 46.00% | 47.00% |
Alternative Investments [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 6.00% | 6.00% |
Cash and Cash Equivalents [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 1.00% | 2.00% |
Retirement Plans (Pension Expec
Retirement Plans (Pension Expected Benefit Payments) (Details) - Pension Benefits [Member] $ in Millions | Dec. 31, 2015USD ($) |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,016 | $ 200 |
2,017 | 160 |
2,018 | 158 |
2,019 | 157 |
2,020 | 154 |
2021 - 2025 | 754 |
Total | $ 1,583 |
Retirement Plans (Assumptions U
Retirement Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.50% | 4.10% | 4.90% |
Discount rate - used to compute annual cost (in hundredths) | 4.10% | 4.90% | 4.00% |
Expected long-term rate of return on plan assets (in hundredths) | 7.75% | 7.75% | 8.00% |
Rate of increase in compensation levels (in hundredths) | 2.50% | 2.50% | 2.50% |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | Maximum [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.70% | 4.20% | 5.20% |
Discount rate - used to compute annual cost (in hundredths) | 4.20% | 5.20% | 4.20% |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | Minimum [Member] | |||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.50% | 4.10% | 4.90% |
Discount rate - used to compute annual cost (in hundredths) | 4.10% | 4.90% | 4.00% |
Retirement Plans (OPEB Expected
Retirement Plans (OPEB Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
OPEB, Gross Benefits [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,016 | $ 25 |
2,017 | 29 |
2,018 | 33 |
2,019 | 35 |
2,020 | 38 |
2021 - 2025 | 211 |
Total | 371 |
Medicare Part D Subsidy [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2021 - 2025 | 1 |
Total | 1 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,016 | 25 |
2,017 | 29 |
2,018 | 33 |
2,019 | 35 |
2,020 | 38 |
2021 - 2025 | 210 |
Total | $ 370 |
Retirement Plans (Amounts In AO
Retirement Plans (Amounts In AOCI Not Yet Recognized as Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Benefits [Member] | ||
Defined Benefit Plan [Abstract] | ||
Net actuarial loss | $ 584 | $ 532 |
Total | 584 | 532 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||
Defined Benefit Plan [Abstract] | ||
Net actuarial loss | 20 | 143 |
Prior service cost/(credit) | (40) | (24) |
Total | $ (20) | $ 119 |
Retirement Plans (Amounts Recog
Retirement Plans (Amounts Recognized as a Component of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Settlement costs recognized during year | $ (44) | ||
Pension Benefits [Member] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Accumulated other comprehensive loss at beginning of year | $ 532 | $ 412 | |
Net actuarial gain (loss) recognized during year | (29) | (20) | |
Net actuarial loss (gain) occurring during year | 81 | 140 | |
Settlement costs recognized during year | (44) | ||
Net amount recognized in comprehensive income for the year | 52 | 120 | |
Accumulated other comprehensive (gain) loss at end of year | 584 | 532 | 412 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Accumulated other comprehensive loss at beginning of year | 119 | 5 | |
Net actuarial gain (loss) recognized during year | (8) | (3) | |
Prior service (cost) credit recognized during year | 5 | 4 | |
Net actuarial loss (gain) occurring during year | (136) | 113 | |
Net amount recognized in comprehensive income for the year | (139) | 114 | |
Accumulated other comprehensive (gain) loss at end of year | $ (20) | $ 119 | $ 5 |
Fair Value of Financial Instr88
Fair Value of Financial Instruments (Pension Plan Assets Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 1,583 | $ 1,648 |
Receivable for plan assets of the Connecticut operations | 34 | |
Interest and Dividends Receivable | 4 | 4 |
Due from Broker for Securities Sold | 21 | 32 |
Receivable Associated with Insurance Contract | 7 | 8 |
Due to Broker for Securities Purchased | (43) | (53) |
Total Plan Assets, at Fair Value | 1,572 | 1,673 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 250 | 268 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,241 | 1,277 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 92 | 103 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 23 | 32 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 23 | 32 |
U.S. Government Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 32 | 32 |
U.S. Government Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 32 | 32 |
Corporate and Other Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 315 | 283 |
Corporate and Other Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 315 | 283 |
Common Stock Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 178 | 170 |
Common Stock Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 178 | 170 |
Commingled Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 894 | 959 |
Commingled Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 894 | 959 |
Interest in Registered Investment Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 49 | 66 |
Interest in Registered Investment Companies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 49 | 66 |
Interest in Limited Partnerships and Limited Liability Corporations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 92 | 103 |
Interest in Limited Partnerships and Limited Liability Corporations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 92 | 103 |
Insurance Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1 | |
Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1 | |
Other Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 2 | |
Other Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 2 |
Fair Value of Financial Instr89
Fair Value of Financial Instruments (Changes In Fair Value Of Plan's Level 3 Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest in Limited Partnerships and Limited Liability Corporations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance, beginning of year | $ 103 | $ 129 |
Realized gains | 8 | 12 |
Unrealized (losses) | (11) | (5) |
Sales and distributions | (8) | (33) |
Balance, end of year | $ 92 | 103 |
Commingled Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance, beginning of year | 33 | |
Realized gains | 5 | |
Unrealized (losses) | (5) | |
Sales and distributions | $ (33) |
Fair Value of Financial Instr90
Fair Value of Financial Instruments (Redemption Of The Plan's Level 3 Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
MS IFHF SVP LP Cayman [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 1 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
Liquidation Period (in years) | 2 years | ||
MS IFHF SVP LP Alpha [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 1 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
Liquidation Period (in years) | 2 years | ||
RII World Timberfund, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 7 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
Liquidation Period (in years) | 10 years | ||
Comm Drive, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 8 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
CTE Drive, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 6 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
Oakbrook Parkway LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 24 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
West Jefferson, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 25 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
MacCorkle Ave SE, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 13 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
S Pike Road West, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 1 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
N US 131, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 1 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
E Stockton Blvd, LLC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 5 | ||
Redemption Frequency | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Corporations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 92 | $ 103 | $ 129 |
Commingled Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 33 |
Fair Value of Financial Instr91
Fair Value of Financial Instruments (Valuation Techniques Used to Measure the Fair Value of the Plan's Level 3 Investments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Comm Drive, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 8 |
Capitalization rate | 7.75% |
CTE Drive, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 6 |
Capitalization rate | 9.00% |
Oakbrook Parkway LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 24 |
Capitalization rate | 8.00% |
West Jefferson, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 25 |
Capitalization rate | 8.50% |
MacCorkle Ave SE, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 13 |
Capitalization rate | 8.25% |
S Pike Road West, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 1 |
Capitalization rate | 8.75% |
N US 131, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 1 |
Capitalization rate | 9.50% |
E Stockton Blvd, LLC [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 5 |
Capitalization rate | 7.75% |
Fair Value Of Financial Instr92
Fair Value Of Financial Instruments (Long Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 15,508 | $ 9,393 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 14,767 | $ 10,034 |
Commitments And Contingencies93
Commitments And Contingencies (Narrative) (Details) item in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)stateentityitem | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Regulatory Commitments [Abstract] | |||
Number of states of operation | state | 28 | ||
Operating Leases [Abstract] | |||
Term Of Lease Arrangements Lower Range | 1 year | ||
Term Of Lease Arrangements Upper Range | 99 years | ||
Rental expense | $ 119 | $ 100 | $ 84 |
FCC Inquiry [Member] | |||
Regulatory Commitments [Abstract] | |||
Number of carriers with tariff pricing plans under review | entity | 4 | ||
CAF Phase II [Member] | |||
Regulatory Commitments [Abstract] | |||
Annual support offered by the Federal Communications Commission | $ 280 | ||
Number of households to be serviced under regulatory funded programs | item | 654 | ||
Verizon Transaction [Member] | |||
Regulatory Commitments [Abstract] | |||
Annual support offered by the Federal Communications Commission | $ 49 | ||
Number of households to be serviced under regulatory funded programs | item | 115 |
Commitments and Contingencies94
Commitments and Contingencies (Future Minimum Rental Commitments For All Long-Term Noncancelable Operating Leases) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments And Contingencies [Abstract] | |
2,016 | $ 64 |
2,017 | 10 |
2,018 | 8 |
2,019 | 10 |
2,020 | 15 |
Thereafter | 70 |
Total minimum lease payments | $ 177 |
Commitments and Contingencies95
Commitments and Contingencies (Future Payments For Obligations Under Noncancelable Long Distance Contracts And Service Agreements) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments And Contingencies [Abstract] | |
2,016 | $ 26 |
2,017 | 27 |
2,018 | 16 |
2,019 | 3 |
2,020 | 3 |
Total | $ 75 |
Commitments and Contingencies96
Commitments and Contingencies (Outstanding Performance Letters Of Credit) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | $ 50 |
CNA [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | 49 |
Other Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | $ 1 |