Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 30, 2016 | |
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 | $ 5,764,318,000 | ||
Entity Common Stock, Shares Outstanding | 1,172,525,000 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
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, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 522 | $ 936 |
Accounts receivable, less allowances of $131 and $57, respectively | 938 | 571 |
Restricted cash | 8,444 | |
Prepaid expenses | 88 | 100 |
Income taxes and other current assets | 108 | 80 |
Total current assets | 1,656 | 10,131 |
Property, plant and equipment, net | 14,902 | 8,493 |
Goodwill | 9,674 | 7,166 |
Other intangibles, net | 2,662 | 1,143 |
Other assets | 119 | 151 |
Total assets | 29,013 | 27,084 |
Current liabilities: | ||
Long-term debt due within one year | 363 | 384 |
Accounts payable | 698 | 467 |
Advanced billings | 301 | 160 |
Accrued other taxes | 134 | 87 |
Accrued interest | 437 | 403 |
Pension and other postretirement benefits | 23 | 33 |
Other current liabilities | 488 | 359 |
Total current liabilities | 2,444 | 1,893 |
Deferred income taxes | 2,516 | 2,666 |
Pension and other postretirement benefits | 1,602 | 1,163 |
Other liabilities | 372 | 240 |
Long-term debt | 17,560 | 15,508 |
Equity: | ||
Preferred stock, $0.01 par value (50,000 authorized shares, 11.125%, Series A, 19,250 shares issued and outstanding) | ||
Common stock, $0.25 par value (1,750,000 authorized shares, 1,192,986 issued, and 1,172,553 and 1,168,200 outstanding, at December 31, 2016 and 2015, respectively) | 298 | 298 |
Additional paid-in capital | 5,283 | 6,034 |
Accumulated deficit | (460) | (87) |
Accumulated other comprehensive loss, net of tax | (387) | (353) |
Treasury common stock | (215) | (278) |
Total equity | 4,519 | 5,614 |
Total liabilities and equity | $ 29,013 | $ 27,084 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 131 | $ 57 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Dividend Rate, Percentage | 11.125% | 11.125% |
Preferred Stock, Shares Issued | 19,250,000 | 19,250,000 |
Preferred Stock, Shares Outstanding | 19,250,000 | 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) | 1,172,553,000 | 1,168,200,000 |
Common stock, shares issued (in shares) | 1,192,986,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Operations [Abstract] | |||
Revenue | $ 8,896 | $ 5,576 | $ 4,772 |
Operating expenses: | |||
Network access expenses | 1,470 | 640 | 465 |
Network related expenses | 1,887 | 1,287 | 1,118 |
Selling, general and administrative expenses | 2,093 | 1,346 | 1,086 |
Depreciation and amortization | 2,031 | 1,320 | 1,139 |
Acquisition and integration costs | 436 | 236 | 142 |
Restructuring costs and other charges | 91 | 2 | 2 |
Total operating expenses | 8,008 | 4,831 | 3,952 |
Operating income | 888 | 745 | 820 |
Investment and other income, net | 20 | 7 | 39 |
Interest expense | 1,531 | 1,113 | 696 |
Income (loss) before income taxes | (623) | (361) | 163 |
Income tax expense (benefit) | (250) | (165) | 30 |
Net income (loss) | (373) | (196) | 133 |
Less: Dividends on preferred stock | 214 | 120 | |
Net income (loss) attributable to Frontier common shareholders | $ (587) | $ (316) | $ 133 |
Basic and diluted net income (loss) per share attributable to Frontier common shareholders (in dollars per share) | $ (0.51) | $ (0.29) | $ 0.13 |
Total weighted average shares outstanding - basic | 1,164,099 | 1,084,606 | 994,418 |
Total weighted average shares outstanding - diluted | 1,164,099 | 1,084,606 | 998,162 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Loss [Abstract] | |||
Net income (loss) | $ (373) | $ (196) | $ 133 |
Other comprehensive income (loss), net of tax (see Note 13) | (34) | 51 | (143) |
Comprehensive income (loss) | $ (407) | $ (145) | $ (10) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Millions | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Common Stock [Member] | Total |
Balance, beginning 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) | |||||
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 | ||||
Stock plans | (44) | $ 63 | $ 19 | ||||
Stock plans (in shares) | 4,353,000 | ||||||
Dividends on common stock | (493) | (493) | |||||
Dividends on preferred stock | (214) | (214) | |||||
Net income (loss) | (373) | (373) | |||||
Other comprehensive income (loss), net of tax | (34) | $ (34) | |||||
Preferred Stock Balance (in shares) at Dec. 31, 2016 | 19,250,000 | 19,250,000 | |||||
Balance, ending at Dec. 31, 2016 | $ 298 | $ 5,283 | $ (460) | $ (387) | $ (215) | $ 4,519 | |
Balance (in shares) at Dec. 31, 2016 | 1,192,986,000 | (20,433,000) | 1,172,553,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows provided from (used by) operating activities: | |||
Net income (loss) | $ (373) | $ (196) | $ 133 |
Adjustments to reconcile net income (loss) to net cash provided from operating activities: | |||
Depreciation and amortization | 2,031 | 1,320 | 1,139 |
Loss on Debt Exchanges | 7 | ||
Pension/OPEB costs | 79 | 10 | (18) |
Special Termination Benefits | 26 | ||
Stock based compensation expense | 24 | 27 | 23 |
Gains on sale of assets | (37) | ||
Amortization of deferred financing costs | 46 | 191 | 10 |
Other non-cash adjustments | (12) | 22 | |
Deferred income taxes | (206) | (167) | (78) |
Change in accounts receivable | (19) | 62 | (61) |
Change in accounts payable and other liabilities | (22) | 102 | 90 |
Change in prepaid expenses, income taxes and other current assets | 85 | (48) | 47 |
Net cash provided from operating activities | 1,666 | 1,301 | 1,270 |
Cash flows provided from (used by) investing activities: | |||
Cash paid for an acquisition, net of cash acquired | (9,871) | ||
Cash paid for Conn. Acquisition | (2,018) | ||
Capital expenditures - Business operations | (1,259) | (710) | (572) |
Capital expenditures - Integration activities | (142) | (153) | (116) |
Network expansion funded by Connect America Fund - Phase I | (22) | (56) | |
Grant funds received for network expansion from Connect America Fund - Phase I | 4 | ||
Proceeds on sale of assets | 8 | 22 | 39 |
Cash paid for an acquisition, net of cash acquired | (17) | ||
Other | 5 | 2 | 32 |
Net cash used by investing activities | (11,259) | (878) | (2,687) |
Cash flows provided from (used by) financing activities: | |||
Proceeds from long-term debt borrowings | 1,940 | 6,603 | 1,911 |
Financing costs paid | (39) | (119) | (40) |
Long-term debt payments | (453) | (298) | (260) |
Proceeds from issuance of common stock, net | 799 | ||
Proceeds from issuance of preferred stock, net | 1,866 | ||
Dividends paid on common stock | (493) | (456) | (401) |
Dividends paid on preferred stock | (214) | (120) | |
Other | (6) | (2) | |
Net cash provided from financing activities | 735 | 8,275 | 1,208 |
Increase/(Decrease) in cash, cash equivalents and restricted cash | (8,858) | 8,698 | (209) |
Cash, cash equivalents and restricted cash at January 1, | 9,380 | 682 | 891 |
Cash, cash equivalents and restricted cash at December 31, | 522 | 9,380 | 682 |
Cash paid (received) during the period for: | |||
Interest | 1,467 | 728 | 656 |
Income taxes(refunds), net | (120) | 28 | 70 |
Non-cash investing and financing activities: | |||
Financing obligation for contribution of real property to pension plan | 15 | 15 | |
Reduction of pension obligation | 15 | ||
Increase (decrease) in capital expenditures due to change in accounts payable | (60) | $ (56) | $ (15) |
Conversion of operating leases to capital leases | $ 111 |
Description Of Business And Sum
Description Of Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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, with approximately 5.4 million customers, 4.3 million broadband subscribers and 28,300 employees, operating in 29 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 April 1, 2016, Frontier’s scope of operations and balance sheet changed materially as a result of the completion of the CTF Acquisition, as described in Note 3 - Acquisitions. Historical financial data presented for Frontier is not indicative of the future financial position or operating results for Frontier, and includes the results of the CTF Operations, as defined in Note 3 – Acquisitions, from the date of acquisition on April 1, 2016. (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. For our financial statements as of and for the period ended December 31, 2016, 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. We maintain an allowance for doubtful accounts based on an estimate of our ability to collect accounts receivable. At December 31, 2016, our accounts receivable balances, including balances for delinquent accounts, were higher than usual as a result of planned delays in collection efforts for certain new customers acquired in the CTF Acquisition. These payment delays are customary for us after large acquisitions in order to allow for resolution of any service or billing issues for new customers. Our allowance for doubtful accounts was adjusted to reflect our best estimate of collectability. 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 $ 217 million, $1 51 million and $125 million for the years ended December 31, 2016, 2015 and 2014, 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. Upon completion of the CTF Acquisition, Frontier assumed the CAF Phase II support and related obligations that Verizon had previously accepted with regard to California and Texas. CAF Phase II funding is a program intended to subsidize the high cost of establishing and delivering communications services to certain unserved or underserved areas. We are recognizing these subsidies into revenue on a straight line basis, which is consistent with how the costs related to these subsidies are being and are expected to be incurred. CAF Phase II is a multi-year program which requires us to deploy broadband to a specified 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 five 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. Voice 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”); · Video services include revenues generated from services provided directly to residential customers through the FiOS ® and Vantage video brands, and through DISH ® satellite TV services; · Other customer revenue includes sales of customer premise equipment to our business customers and directory services, less our provision for bad debts; 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 Phase II. 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 ) 2016 2015 2014 Voice services $ 2,886 $ 2,022 $ 1,951 Data and Internet services 3,693 2,337 1,948 Video services 1,244 285 134 Other 276 255 220 Customer revenue 8,099 4,899 4,253 Switched access and subsidy 797 677 519 Total revenue $ 8,896 $ 5,576 $ 4,772 (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 2016, Frontier reorganized into s even 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 2016, we reassigned goodwill to our regional operating segments (reporting units) 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 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) 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. (i) 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. (j) 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 13 – Net Income (Loss) Per Common Share. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements : Recently Adopted Accounting Pronouncements Business Combinations – Measurement Period Adjustments In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations – Simplifying the Accounting for Measurement Period Adjustments.” This ASU requires that an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new guidance was effective for Frontier on January 1, 2016 and has been applied to the measurement period adjustments related to our CTF Acquisition during 2016. 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. The new guidance was effective for Frontier on January 1, 2016 and Frontier has applied the new guidance in its reporting for defined benefit plans completed in 2016. Cash Flows – Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15,” Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this ASU provide guidance on the following cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. The new guidance was early adopted by Frontier in 2016 and Frontier has retrospectively applied the new guidance in our Statement of Cash Flows for 2014, 2015, and 2016. Statement of Cash Flows – Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows – Restricted Cash Flows.” This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The new guidance was early adopted by Frontier in 2016 and Frontier has retrospectively applied the new guidance in our Statement of Cash Flows for 2014, 2015, and 2016. Recent Accounting Pronouncements Not Yet Adopted 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, along with its related amendments, 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, however, Frontier does not intend to early adopt. 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 has not yet selected a transition method and is currently evaluating the guidance and developing an implementation plan. Leases In February 2016, the FASB issued ASU No. 2016 – 02, “Leases (Topic 842).” This standard establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Upon implementation, lessees will need to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. It will be critical to identify leases embedded in a contract to avoid misstating the lessee’s balance sheet. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Frontier is currently evaluating the impact of adopting the new standard, but has not yet determined the impact of adoption on its consolidated financial statements. Compensation – Stock Compensation In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” to amend ASC Topic 718, “Compensation – Stock Compensation.” The ASU is part of the FASB’s ongoing simplification initiative, which is designed to reduce cost and complexity while maintaining or improving the usefulness of the information provided to the users of financial statements. The proposed simplifications address a variety of areas for public entities, including the following: 1) accounting for income taxes, 2) classification of excess tax benefits on the statement of cash flows, 3) forfeitures, 4) minimum statutory tax withholding requirements, 5) classifications of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes, and 6) classification of awards with repurchase features. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Frontier has determined that the impact of adoption is immaterial to i ts consolidated financial statements. Intangibles – Goodwill In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment,” This standard was established to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Frontier is currently evaluating the impact of adopting the new standard and has not yet determined the impact of adoption on its consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | (3) Acquisitions : The CTF Acquisition On April 1, 2016, Frontier acquired the wireline operations of Verizon Communications, Inc. in California, Texas and Florida for a purchase price of $ 10,540 million in cash and assumed debt (the CTF Acquisition), pursuant to the February 5, 2015 Securities Purchase Agreement, as amended. In addition, Frontier and Verizon settled the working capital and net debt adjustments with $ 15 million paid to Frontier in October 2016. As a result of the CTF Acquisition, Frontier now operates these former Verizon properties, which included approximately 2.5 million total customers, 2.1 million broadband subscribers, and 1.2 million FiOS video subscribers as of April 1, 2016 (the CTF Operations). Our consolidated statement of operations for the year ended December 31, 2016 includes $3,622 million of revenue and $582 million of operating income related to the nine months of operating results of the CTF Operations since April 1, 2016. The allocation of the purchase price presented below, which is preliminary and subject to change, represents the effect of recording the estimates of the fair value of assets acquired and liabilities assumed as of the date of the CTF Acquisition, based on the total transaction cash consideration of $ 9,886 million at December 31, 2016, as adjusted for the $ 15 million settlement payment discussed above . These current estimates will be revised in future periods for information that is currently not available to us, primarily related to certain legal and tax accruals and contingencies; accounts receivable; property , plant and equipment; customer base and other intangibles; deferred income tax assets and liabilities; pension assets and liabilities, as well as other assumed postretirement benefit obligations, pending completion of actuarial studies and the related transfer of pension assets. The revisions may affect the presentation of our consolidated financial results. Any changes to the initial estimates of the fair value of the assets and liabilities will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. ($ in millions) Current assets $ 350 Property, plant & equipment 6,236 Goodwill 2,508 Other intangibles - primarily customer base 2,162 Current liabilities (518) Long-term debt (544) Other liabilities (323) Total net assets acquired $ 9,871 The total consideration exceeded the net estimated fair value of the assets acquired and liabilities assumed by $2,5 08 million, which we recognized as goodwill. This goodwill is attributable to strategic benefits, including enhanced financial and operational scale, market diversification and leveraged combined networks that we expect to realize. This amount of goodwill associated with the CTF Acquisition will be deductible for income tax purposes. The Securities Purchase Agreement provides for a post-closing adjustment for both pension liabilities and pension assets. Frontier and Verizon have not finalized the results of these calculations. Such calculations will be completed in accordance with the terms of the Securities Purchase Agreement. The following unaudited pro forma financial information presents the combined results of operations of Frontier and the CTF Operations as if the CTF Acquisition had occurred as of January 1, 2015. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the CTF Acquisition been completed as of January 1, 2015. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the future financial position or operating results of Frontier. The unaudited pro forma financial information excludes acquisition and integration costs and does not give effect to any estimated and potential cost savings or other operating efficiencies that may result from the CTF Acquisition. (Unaudited) For the year ended December 31, ($ in millions, except per share amounts) 2016 2015 Revenue $ 10,255 $ 11,157 Operating income $ 1,433 $ 1,529 Net loss attributable to Frontier common shareholders $ 262 $ (192) Basic and diluted net loss per share attributable to Frontier common shareholders $ (0.23) $ (0.17) During 2015, we completed our financing activities associated with the CTF Acquisition, which included: 1) a private debt offering of $6,600 million of unsecured senior notes in September 2015, 2) the 2015 Credit Agreement (as defined below) for a senior secured delayed-draw term loan facility in August 2015 and 3) a registered offering of $2,750 million of preferred and common stock in June 2015. Net proceeds from these debt and equity offerings together with the proceeds received from the delayed draw term loan facility and cash on hand were used to fund the CTF Acquisition and pay related fees and expenses. The Connecticut Acquisition On October 24, 2014, 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, pursuant to the stock purchase agreement dated December 16, 2013, as amended. 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 (Vantage ) and DISH ® satellite TV customers in Connecticut. See Note 7 for further discussion related to financing the Connecticut Acquisition. 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 $75 million is deductible for income tax purposes. The following unaudited pro forma financial information presents the combined results of operations of Frontier and the Connecticut operations as if the Connecticut Acquisition had occurred as of January 1, 2014. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the Connecticut Acquisition been completed as of January 1, 2014. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the future financial position or operating results of Frontier. The unaudited pro forma financial information excludes acquisition and integration costs and does not give effect to any estimated and potential cost savings or other operating efficiencies that may result from the Connecticut Acquisition. (Unaudited) For the year ended December 31, ($ in millions, except per share amounts) 2014 Revenue $ 5,775 Operating income $ 985 Net income attributable to Frontier common shareholders $ 191 Basic and diluted net income per share attributable to Frontier common shareholders $ 0.19 Acquisition and Integration Costs Acquisition costs include legal, financial advisory, accounting, regulatory and other related costs. Integration costs include expenses that are incremental and directly related to the acquisition, and were incurred to integrate the network and information technology platforms and to enable other integration initiatives. Frontier incurred operating expenses related to the CTF Acquisition and the Connecticut Acquisition, as follows: For the Year Ended ($ in millions) 2016 2015 2014 Acquisition costs: CTF Acquisition $ 23 $ 44 $ - Connecticut Acquisition - 1 15 23 45 15 Integration costs: CTF Acquisition 412 152 - Connecticut Acquisition 1 39 127 413 191 127 Total acquisition and integration costs $ 436 $ 236 $ 142 We also invested $142 million and $129 million in capital expenditures related to the CTF Acquisition during the years ended December 31, 2016 and 2015, respectively. In connection with the Connecticut Acquisition, Frontier invested $24 million and $116 million in capital expenditures during the years ended December 31, 2015 and 2014, respectively . |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | (4 ) Accounts Receivable : The components of accounts receivable, net at December 31, 2016 and 2015 are as follows : ($ in millions) 2016 2015 Retail and Wholesale $ 979 $ 569 Other 90 59 Less: Allowance for doubtful accounts (131) (57) Accounts receivable, net $ 938 $ 571 An analysis of the activity in the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 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 2014 $ 71 $ 61 $ - $ (60) $ 72 2015 $ 72 $ 67 $ (17) $ (65) $ 57 2016 $ 57 $ 164 $ 15 $ (105) $ 131 We maintain an allowance for doubtful accounts based on our estimate of our ability to collect accounts receivable. The provisio n for uncollectible amounts was $179 million, $50 million , and $61 million for the years ended December 31, 2016, 2015 and 2014, respectively. Our allowance for doubtful accounts declined in 2015, primarily as a result of the resolution of a principal carrier dispute . Our allowance for doubtful accounts increased in 2016 primarily as a result of the customer account balances related to the CTF Operations subsequent to the CTF Acquisition. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | (5) Property, Plant and Equipment : Property, plant and equipment, net at December 31, 2016 and 2015 are as follows : ($ in millions) Estimated Useful Lives 2016 2015 Land N/A $ 235 $ 151 Buildings and leasehold improvements 41 years 2,300 1,327 General support 5 to 17 years 1,495 1,146 Central office/electronic circuit equipment 5 to 18 years 7,683 6,244 Poles 30 years 995 712 Cable, fiber and wire 15 to 25 years 10,267 7,280 Conduit 55 years 1,611 515 Other 12 to 25 years 52 47 Construction work in progress 903 379 Property, plant and equipment 25,541 17,801 Less: Accumulated depreciation (10,639) (9,308) Property, plant and equipment, net $ 14,902 $ 8,493 Property, plant, and equipment includes approximately $154 million and $43 million of fixed assets recognized under capital leases as of December 31, 2016 and 2015, respectively. Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the Year Ended ($ in millions) 2016 2015 2014 Depreciation expense $ 1,388 $ 983 $ 835 We adopted new estimated remaining useful lives for certain plant assets as of October 1, 2016, as a result of an annual independent study of the estimated remaining useful lives of our plant assets, with an insignificant impact to depreciation expense. In addition, the estimated useful lives for assets acquired in the CTF Acquisition were adopted for such assets based on a similar study performed as of October 1, 2015 and were effective April 1, 2016 . |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 is as follows : ($ in millions) Goodwill Balance at January 1, 2015 $ 7,205 Connecticut Acquisition Adjustment (53) Other Acquisition 14 Balance at December 31, 2015 7,166 CTF Acquisition (Note 3) 2,508 Balance at December 31, 2016 $ 9,674 The components of other intangibles at December 31, 2016 and 2015 are as follows : 2016 2015 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other Intangibles: Customer base $ 5,088 $ (2,604) $ 2,484 $ 2,998 $ (1,977) $ 1,021 Trade name 122 - 122 122 - 122 Royalty agreement 72 (16) 56 - - - Total other intangibles $ 5,282 $ (2,620) $ 2,662 $ 3,120 $ (1,977) $ 1,143 Amortization expense was as follows : For the Year Ended ($ in millions) 2016 2015 2014 Amortization expense $ 643 $ 337 $ 304 Amortization expense primarily represents the am ortization of our customer base acquired as a result of the CTF Acquisition, the Connecticut Acquisition and the acquisition of certain Verizon properties in 2010 with each based on a useful life of 8 to 12 years on an accelerated method. The approximate weighted average remaining life of our customer base is 7 years and for our royalty agreement is 4 years. Amortization expense based on our current estimate of useful lives, is estimated to be approximately $663 million in 2017, $552 million in 2018, $439 million in 2019, $342 million in 2020, and $251 million in 2021 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (7) Long-Term Debt : The activity in our long-term debt from January 1, 2016 to December 31, 2016 is summarized as follows : Year ended December 31, 2016 ($ in millions) January 1, 2016 Payments and Retirements New Borrowings Debt Assumed Reclassifications December 31, 2016 Interest Rate at December 31, 2016* Senior & Subsidiary Unsecured Debt $ 16,055 $ (419) $ 401 $ 500 $ (637) $ 15,900 9.18% Senior Secured Debt - (426) 1,940 - 637 2,151 3.89% Secured Subsidiary Debt - - - 100 - 100 8.50% Secured Debt 23 (4) - - - 19 4.50% Rural Utilities Service Loan Contracts 8 - - - - 8 6.15% Total Long-Term Debt $ 16,086 $ (849) $ 2,341 $ 600 $ - $ 18,178 8.55% Less: Debt Issuance Costs (196) (209) Less: Debt Premium (Discount) 2 (46) Less: Current Portion (384) (363) $ 15,508 $ 17,560 * Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at December 31, 2016 represent a weighted average of multiple issuances . Additional information regarding our senior unsecured debt, senior secured debt and subsidiary debt at December 31, 2016 and 2015 is as follows: 2016 2015 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Senior Unsecured Debt Due: 4/15/2017 $ 210 8.250% $ 607 8.250% 10/1/2018 583 8.125% 583 8.125% 3/15/2019 434 7.125% 434 7.125% 4/15/2020 1,169 8.500% 1,022 8.500% 9/15/2020 1,066 8.875% 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 2,188 10.500% 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% 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% 15,150 15,146 Senior Secured Debt Due: 10/14/2016 (1) - - 344 2.805% (Variable) 10/24/2019 (2) 280 4.145% (Variable) 315 3.805% (Variable) 3/31/2021 (3) 1,564 3.270% (Variable) - 10/12/2021 (4) 307 4.145% (Variable) - 2,151 659 Subsidiary Debentures Due: 5/15/2027 200 6.750% - 2/1/2028 300 6.860% - 2/15/2028 200 6.730% 200 6.730% 10/15/2029 50 8.400% 50 8.400% 11/15/2031 100 8.500% - 850 250 Total $ 18,151 8.30% (5) $ 16,055 8.74% (5) (1) Represents borrowings under the 2011 CoBank Credit Agreement, as defined below, that became secured as of April 1, 2016. (2) Represents borrowings under the 2014 CoBank Credit Agreement, as defined below, that became secured as of April 1, 2016. (3) Represents borrowings under the 2015 Credit Agreement, as defined below. (4) Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. (5) Interest rate represents a weighted average of the stated interest rates of multiple issuances. During 2016, we completed non-cash debt exchanges including related accrued interest, of $397 million of our 8.25% Notes due April 2017 for approximately $147 million of our 8.50% Notes due April 2020, $66 million of our 8.875% Notes due September 2020, and $188 million of our 10.50% Notes due September 2022. A pretax loss of approximately $7 million was recognized and included in “Investment and other income, net” in our consolidated statement of operations for the year ended December 31, 2016. 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 10.50% Senior Notes due 2022; and $3,600 million of 11.00% Senior Notes due 2025 . Each was issued at a price equal to 100% of its principal amount. Frontier used the net proceeds from the offering (after deducting underwriting fees) to finance a portion of the cash consideration paid in connection with the CTF Acquisition and to pay related fees and expenses. The net proceeds of the debt offering of $6,485 million were included in “Restricted cash” in the consolidated balance sheet as of December 31, 2015. In June 2016, we completed an exchange offer of registered senior notes for the privately placed senior notes. On August 12, 2015, Frontier entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto, for a $1,500 million senior secured delayed-draw term loan facility (the 2015 Credit Agreement). Frontier exercised its right under the 2015 Credit Agreement to obtain additional commitments and increased the size of the facility to $1,625 million. On April 1, 2016, in connection with the closing of the CTF Acquisition, Frontier drew $1,550 million under that facility, with the additional $75 million drawn subsequently. The final maturity date is March 31, 2021 . Repayment of the outstanding principal balance will be made in quarterly installments, initially in the amount of $20 million per installment, which commenced on June 30, 2016. The quarterly installments will increase to $41 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 are 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. Upon completion of the CTF Acquisition on April 1, 2016, we assumed additional debt of $600 million, including $200 million aggregate principal amount of 6.75% Senior Notes due May 15, 2027, $300 million aggregate principal amount of 6.86% Senior Notes due February 1, 2028 and $100 million aggregate principal amount of 8.50% Senior Notes due November 15, 2031. On February 5, 2015, we entered into a commitment for a bridge loan facility (the Verizon Bridge Facility) and recognized related interest expense of $10 million and $184 million for the years ended December 31, 2016 and 2015, respectively. The accrued liabilities related to the Verizon Bridge Facility of $184 million were paid after the closing of the CTF Acquisition and were 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, 2016 was LIBOR plus 3.375% . Frontier has two senior secured credit agreements with CoBank, ACB, as administrative agent, lead arranger and a lender, and the other lenders party thereto: the first, drawn in 2011 (the 2011 CoBank Credit Agreement), was refinanced in October 2016 with a similar facility for $315 million, maturing on October 12, 2021 (the 2016 CoBank Credit Agreement), and the second, drawn in 2014 (the 2014 CoBank Credit Agreement), matures on October 24, 2019 . We refer to the 2011 CoBank Credit Agreement, the 2014 CoBank Credit Agreement and the 2016 CoBank Credit Agreement collectively as the CoBank Credit Agreements. Borrowings under the CoBank Credit Agreements are secured by a pledge of the stock of Frontier North, Inc. Repayment of the outstanding principal balance for the 2016 CoBank Credit Agreement is being made in quarterly installments of approximately $8 million which began on December 31, 2016. Any 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 2016 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 adjustment based on Frontier’s Total Leverage Ratio (as defined in the 2016 CoBank Credit Agreement). The term loan under the 2016 CoBank Credit Agreement is secured by a pledge of the stock of Frontier North Inc. 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, 2016, 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, 2016. 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, 2016. 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. On February 27, 201 7 , Frontier amended and restated its April 2021 term loan and its revolving credit facility, combining them into a single credit agreement and unifying the covenants. The amended and restated credit agreement provides Frontier with more flexible terms, increases the revolving credit facility to $850 million and extends the maturity of the revolving credit facility from 2018 to 2022. The determination of interest rates remains unchanged. The most significant change in the covenants is an increase of the maximum Leverage Ratio (as defined) to 5.25 to 1.0 initially, migrating to 5.0 to 1.0 beginning in the second quarter of 2018, 4.75 to 1.0 in the second quarter of 2019, and 4.5 to 1.0 in the second quarter of 2020. In addition, under the amended and restated credit agreement, Frontier will be expanding the security package to include pledges of the equity interests in certain Frontier subsidiaries and guaranties by certain Frontier subsidiaries. Upon the drawdown of the term loan under the 2015 Credit Agreement in connection with the closing of the CTF Acquisition, borrowings under the 2014 CoBank Credit Agreement, the 2011 CoBank Credit Agreement and the Revolving Credit Facility became secured debt. These borrowings are 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 $11 million, respectively, with four year terms and no stated interest rate for certain equipment purchases. As of December 31, 2016, we were in compliance with all of our debt and credit facility covenants. Our scheduled principal payments are as follows as of December 31, 2016 : Principal ($ in millions) Payments 2017 $ 363 2018 $ 733 2019 $ 818 2020 $ 2,429 2021 $ 2,554 Thereafter $ 11,281 Other Obligations During 2016, Frontier contributed a real estate property with a fair value of $15 million for the purpose of funding a portion of its contribution obligations to its qualified defined benefit pension plan. The pension plan obtained independent appraisals of the property and, based on these appraisals, the pension plan recorded the contribution at its fair value of $15 million. Frontier has entered into a lease for the contributed property with initial terms of 15 years at a combined aggregate annual rent of approximately $2 million. The property is managed on behalf of the pension plan by an independent fiduciary, and the terms of the lease were negotiated with the fiduciary on an arm’s-length basis. The contribution and leaseback of the property was treated as a financing transaction and, accordingly, Frontier continues to depreciate the carrying value of the property in its financial statements and no gain or loss was recognized. An obligation of $15 million was recorded in our consolidated balance sheet within “Other liabilities” and the liability is reduced annually by a portion of the lease payments made to the pension plan. During 2016, Frontier modified certain o perating leases for vehicles which resulted in the classification as capital leases. These agreements have lease terms of 1 to 7 years. These capital lease obligations are included in our consolidated balance sheet within “Other liabilities” and “Other current liabilities”. In 2012, Frontier entered into a sale and leaseback arrangement for a facility in Everett, Washington and entered into a capital lease for the use of fiber in the state of Minnesota. These agreements have lease terms of 12 and 23 years, respectively. These capital lease obligations are included in our consolidated balance sheet within “Other liabilities” and “Other current liabilities.” Future minimum payments for finance lease obligations and capital lease obligations as of December 31, 2016 are as follows: ($ in millions) Finance Lease Obligations Capital Lease Obligations Year ending December 31: 2017 $ 9 $ 39 2018 9 37 2019 9 26 2020 9 15 2021 9 9 Thereafter 60 21 Total future payments 105 147 Less: Amounts representing interest (57) (18) Present value of minimum lease payments $ 48 $ 129 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | (8) Restructuring Costs As of December 31, 2016, restructuring related liabilities of $47 million pertaining to employee separation charges are included in “Other current liabilities” in our consolidated balance sheet. During 2016, restructuring costs and other charges, primarily consisting of severance an d other employee-related costs of $65 million, and pension/OPEB benefit enhancements of $26 million, totaling $91 million in connection with workforce reductions, are included in “ Restructuring costs and other charges” in our consolidated statement of operations for the year ended December 31, 2016 . The following is a summary of the changes in the liabilities established for restru cturing programs at December 31 , 2016: ($ in millions) Restructuring Liability Balance, January 1, 2016 $ 1 Severance costs 65 Cash payments during the period (19) Balance, December 31, 2016 $ 47 |
Investment and Other Income, Ne
Investment and Other Income, Net | 12 Months Ended |
Dec. 31, 2016 | |
Investment and Other Income, Net [Abstract] | |
Investment and Other Income, Net | (9) Investment and Other Income, Net : The components of investment and other income, net for the years ended December 31, 2016, 2015 and 2014 are as follows: ( $ in millions ) 2016 2015 2014 Interest and dividend income $ 13 $ 7 $ 2 Loss on debt exchanges (7) - - Gain on sale of Fairmount Cellular LLC - - 25 Gain on sale of 700 MHz spectrum - - 12 Gain on expiration/settlement of customer advances 13 - - All other, net 1 - - Total investment and other income, net $ 20 $ 7 $ 39 During 2016 and 2015 , we received $13 million and $7 million, respectively, in interest and dividend income, primarily due to interest earned on restricted cash. During 2016, we recognized income of $13 million in connection with certain retained liabilities that have terminated, associated with customer advances for construction from our disposed water properties. 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. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Capital Stock [Abstract] | |
Capital Stock | (10) 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 and preferred 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 used the net proceeds from this offering to fund a portion of the acquisition price of the CTF Acquisition 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 used the net proceeds from this offering to fund a portion of the acquisition price of the CTF Acquisition and related fees and expenses. Unless converted earlier, each share of the Series A Preferred Stock will automatically convert on June 29, 2018 into common stock, (between 17.0213 and 20.0000 shares) 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 $214 million and $120 million were paid in 2016 and 2015, respectively. Pursuant to the terms of the CTF Acquisition, $1,955 million of the $2,665 million in net proceeds from the equity offerings were deposited into escrow and were included in “Restricted cash” in the consolidated balance sheet as of December 31, 2015. Upon closing of the CTF Acquisition, the funds were released and used to fund a portion of the purchase price. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2016 | |
Stock Plans [Abstract] | |
Stock Plans | (11) Stock Plans : At December 31, 2016, we had six stock-based compensation plans under which grants were made and awards remained outstanding. No further awards may be granted under five 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), the Non-Employee Directors’ Deferred Fee Equity Plan (the Deferred Fee Plan), and the Non-Employee Directors’ Equity Incentive Plan (the Directors’ Equity Plan and together with the Deferred Fee Plan, the Director Plans). At December 31, 2016, there were 20,000,000 shares authorized for grant and 7,324,000 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). 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. 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. 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. On February 11, 2016, the Compensation Committee granted approximately 1,669,000 performance shares under the LTIP and set the operating cash flow performance goal for 2016, which applies to the first year in the 2016-2018 measurement period, the second year of the 2015-2017 measurement period and the third year of the 2014-2016 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, 2016 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, 2014 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 LTIP target performance shares granted 1,669 LTIP target performance shares earned (887) LTIP target performance shares forfeited (448) Balance at December 31, 2016 2,859 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, included in “Selling, general, and administrative expenses” of $6 million, $7 million , and $4 million during 2016, 2015 and 2014, respectively, for the LTIP. Restricted Stock The following summary presents information regarding unvested restricted stock as of December 31, 2016 and changes during the three years then ended with regard to restricted stock under the 2009 EIP and the 2013 EIP: Weighted Average Number of Grant Date Aggregate Shares Fair Value Fair Value (in thousands) (per share) (in millions) Balance at January 1, 2014 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 Restricted stock granted 5,936 $ 4.36 $ 20 Restricted stock vested (3,720) $ 5.26 $ 13 Restricted stock forfeited (908) $ 5.11 Balance at December 31, 2016 8,356 $ 5.20 $ 28 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 that is deferred at December 31, 2016 was $26 million and the weighted average vesting period over which this cost is expected to be recognized is approximately 1.3 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 $18 million, $20 million and $16 million, for the years ended December 31, 2016, 2015 and 2014, respectively, has been recorded in connection with these grants. Stock Options The number of options exercisable under the EIPs at December 31, 2016, 2015 and 2014 were 40,000 , 50,000 and 83,0 00 , with a weighted average exercise price of $8.81 , $ 13.40 , and $ 13.23 , respectively. No stock options were granted or exercised during 2016, 2015 or 2014. There is no remaining unrecognized compensation cost associated with stock options at December 31, 2016. Non-Employee Directors’ Compensation Plans 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 price 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. There were 10 directors participating in the Director Plans during all or part of 2016. The total plan units earned were 444,277 , 334,188 , and 237,607 in 2016, 2015 and 2014 , respectively . 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, there were no compensation costs associated with the issuance of stock units in 2016, ( $1 ) million in 2015, and $4 million in 2014. Cash compensation associated with the Director Plans was $1 million in 2016, 2015 and 2014, respectively. These costs are recognized in “Selling, general and administrative expenses”. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | (12) Income Taxes : The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rates for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Consolidated tax provision at federal statutory rate 35.0 % 35.0 % 35.0 % State income tax provisions, net of federal income tax benefit (0.1) 8.7 1.6 Tax reserve adjustment 0.6 (0.3) 6.9 Domestic production activities deduction (1.9) - (8.7) Changes in certain deferred tax balances 5.8 0.8 (14.1) Federal research and development credit 1.0 1.5 (3.3) Non-deductible transaction costs - 0.4 1.0 All other, net (0.2) (0.3) 0.3 Effective tax rate 40.2 % 45.8 % 18.7 % Income taxes for 2016 include the impact of $36 million of tax benefits resulting primarily from the adjustment of deferred tax balances due to the CTF Acquisition, the impact of $6 million in benefits from the Federal research and development credits, along with a $12 million reversal of benefits related to the domestic production activities deduction. 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 2014 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. 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, 2016 and 2015. Amounts pertaining to income tax related accounts of $55 million and $50 million are included in “Income taxes and other current assets” in the consolidated balance sheets as of December 31, 2016 and 2015, respectively. In 2016, we received federal and state income tax refunds totaling $120 million. The components of the net deferred income tax liability (asset) at December 31 are as follows: ( $ in millions ) 2016 2015 Deferred income tax liabilities: Property, plant and equipment basis differences $ 2,751 $ 2,401 Intangibles 878 960 Deferred revenue/expense 14 - Other, net 12 15 $ 3,655 $ 3,376 Deferred income tax assets: Pension liability 273 222 Tax operating loss carryforward 687 295 Employee benefits 255 262 Accrued expenses 44 50 Lease obligations 75 - Tax credit 30 - Allowance for doubtful accounts 44 10 Other, net 2 48 1,410 887 Less: Valuation allowance (271) (177) Net deferred income tax asset 1,139 710 Net deferred income tax liability $ 2,516 $ 2,666 Our federal net operating loss carryforward as of December 31, 2016 is estimated at $1. 0 billion. The federal loss carryforward will expire in 2036 , unless otherwise used. Our state tax operating loss carryforward as of December 31, 2016 is estimated at $6.7 billion. A portion of our state loss carryforward will continue to expire annually through 2036, unless otherwise used. Our federal research and development credit and alternative minimum tax credit as of December 31, 2016 is estimated at $13 million and $4 million, respectively. The federal research and development credit will expire between 2034 and 2036, unless otherwise used. Our various state credits as of December 31, 2016 are estimated at $19 million. The state credits will expire between 2018 and 2021, unless otherwise used. As of December 31, 2016, Frontier has a valuation allowance of $271 million to reduce deferred tax assets to an amount more likely than not to be realized. This valuation allowance is related to state net operating losses and state tax credits. In evaluating Frontier’s ability to realize its deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. Management also considered the projected reversal of deferred tax liabilities and projected future taxable income in making this assessment. Based upon this assessment, management believes it is more likely than not Frontier will realize the benefits of these deductible differences, net of valuation allowance. There was a valuation allowance of $177 million recorded as of December 31, 2015. 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 ) 2016 2015 2014 Income tax expense (benefit): Current: Federal $ (52) $ 8 $ 98 State 7 (6) 10 Total Current (45) 2 108 Deferred: Federal (145) (126) (34) State (60) (41) (44) Total Deferred (205) (167) (78) Total income tax expense (benefit) (250) (165) 30 Income taxes charged (credited) to equity of Frontier: Utilization of the benefits arising from restricted stock (5) - - Deferred income taxes (benefits) arising from the recognition of additional pension/OPEB liability (21) 36 (90) Total income taxes charged (credited) to equity of Frontier (26) 36 (90) Total income taxes $ (276) $ (129) $ (60) 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 $17 million as of December 31, 2016 including interest of $1 million. The amount of our uncertain tax positions , for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease during the next twelve months , and which would affect our effective tax rate , is $ 8 million as of December 31, 2016. 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 prior periods. We are subject to income tax examinations generally for the years 2012 forward for federal and 2008 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, 2016 and 2015: ($ in millions) 2016 2015 Unrecognized tax benefits - beginning of year $ 19 $ 19 Gross increases - prior year tax positions 3 - Gross increases - current year tax positions 3 2 Gross decreases - FIN 48 liability release (9) - Gross decreases - expired statute of limitations - (2) Unrecognized tax benefits - end of year $ 16 $ 19 The amounts above exclude $1 million of accrued interest as of December 31, 2016 and 2015, respectively, that we have recorded and would be payable should Frontier’s tax positions not be sustained. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Income (Loss) Per Common Share [Abstract] | |
Net Income (Loss) Per Common Share | (13) Net Income (Loss) Per Common Share : The reconciliation of the net income (loss) per common share calculation for the years ended December 31, 2016, 2015 and 2014 is as follows : ( $ in millions and shares in thousands, except per share amounts ) 2016 2015 2014 Net income (loss) used for basic and diluted earnings (loss) per share: Net income (loss) attributable to Frontier common shareholders $ (587) $ (316) $ 133 Less: Dividends paid on unvested restricted stock awards (3) (3) (3) Total basic and diluted net income (loss) attributable to Frontier common shareholders $ (590) $ (319) $ 130 Basic earnings (loss) per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 1,172,131 1,091,798 1,001,812 Less: Weighted average unvested restricted stock awards (8,032) (7,192) (7,394) Total weighted average shares outstanding - basic 1,164,099 1,084,606 994,418 Basic net income (loss) per share attributable to Frontier common shareholders $ (0.51) $ (0.29) $ 0.13 Diluted earnings (loss) per share: Total weighted average shares outstanding - basic 1,164,099 1,084,606 994,418 Effect of dilutive shares - - 3,744 Total weighted average shares outstanding - diluted 1,164,099 1,084,606 998,162 Diluted net income (loss) per share attributable to Frontier common shareholders $ (0.51) $ (0.29) $ 0.13 In calculating diluted net loss per common share for the years ended December 31, 2016 and 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, 2016, 2015 and 2014, options to purchase 40,000 , 50,000 and 83,000 shares, respectively, issuable under employee compensation plans were excluded from the computation of diluted earnings (loss) 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, 2016, 2015 and 2014, we had 1,881,460, 1,437,183 and 1,102,995 stock units, respectively, issued under the Director Plans and the 2013 EIP. 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, 2016 and 2015, as their impact was antidilutive. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (14) 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 GAAP, are excluded from net income/(loss). The components of accumulated other comprehensive loss, net of tax at December 31, 2016, 2015 and 2014, 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, 2014 $ (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) Other comprehensive income (loss) before reclassifications (103) 17 32 (54) Amounts reclassified from accumulated other comprehensive income (loss) 40 (8) (12) 20 Net current-period other comprehensive income (loss) (63) 9 20 (34) Balance at December 31, 2016 $ (647) $ 29 $ 231 $ (387) As a result of the CTF Acquisition, the Frontier Communications Pension Plan (the Plan) was remeasured. This remeasurement resulted in a decrease in the discount rate from 4.50% at December 31, 2015 to 4.00% at the date of the CTF Acquisition. This change in the discount rate resulted in a remeasurement charge to Other comprehensive income (loss) of $105 million during 2016 . The significant items reclassified from each component of accumulated other comprehensive loss for the years ended December 31, 2016, 2015 and 2014 are as follows : Amount Reclassified from ($ in millions) Accumulated Other Comprehensive Loss (a) Details about Accumulated Other Comprehensive Loss Components 2016 2015 2014 Affected Line Item in the Statement Where Net Income (Loss) is Presented Amortization of Pension Cost Items (b) Actuarial gains (losses) $ (40) $ (29) $ (20) (40) (29) (20) Income (loss) before income taxes Tax impact 15 11 7 Income tax (expense) benefit $ (25) $ (18) $ (13) Net income (loss) Amortization of OPEB Cost Items (b) Prior-service costs $ 9 $ 5 $ 4 Actuarial gains (losses) (1) (8) (3) 8 (3) 1 Income (loss) before income taxes Tax impact (3) 1 - Income tax (expense) benefit $ 5 $ (2) $ 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 costs (see Note 17 - Retirement Plans for additional details ). |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | (15) 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 seven regional operating segments because all of these regional operations share similar characteristics, in that they provide the same products and services to similar customers using comparable technologies in all of the states in which we operate. The regulatory structure is generally similar. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | (16) Quarterly Financial Data (Unaudited ) : ($ in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2016 Revenue $ 1,355 $ 2,608 $ 2,524 $ 2,409 $ 8,896 Operating income 58 311 264 255 888 Net loss attributable to Frontier common shareholders (240) (80) (134) (133) (587) Basic net loss per share attributable to Frontier common shareholders $ (0.21) $ (0.07) $ (0.12) $ (0.12) $ (0.51) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2015 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) The quarterly net income (loss) per share amounts are 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 second quarter of 2016 and each subsequent quarter of 2016 reflects the additional results of the CTF operations related to the CTF Acquisition, as described further in Note 3. We recognized $11 million ( $7 million or $0.01 per share after tax) and $80 million ( $52 million or $0.0 4 per share after tax) of restructuring costs and other charges during the third and fourth quarters of 2016, respectively. We recognized $1 million of restructuring costs and other charges during each of the third and fourth quarters of 2015. We recognized $138 million ( $85 million or $0.07 per share after tax), $127 million ( $76 million or $0.07 per share after tax), $122 million ( $74 million or $0.06 p er share after tax) and $49 million ( $48 million or $0.04 per share after tax) of acquisition and integration costs during the first, second, third and fourth quarters of 2016, respectively. 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 . |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Plans [Abstract] | |
Retirement Plans | (17) 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 pension plan and postretirement benefit plans are closed to the majority of our newly hired employees. 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, 2016, 2015 and 2014, 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 4.10% as of December 31, 2016 for its qualified pension plan, compared to rates of 4.50% and 4.10% in 2015 and 2014, respectively. The discount rate for postretirement plans as of December 31, 2016 was a range of 4.10% to 4.30% compared to a range of 4.50% to 4.70% in 2015 and 4.10% to 4.20% in 2014. As a result of the CTF Acquisition, the Frontier Communications Pension Plan (the Plan) was remeasured. This remeasurement resulted in a decrease in the discount rate from 4.50% at December 31, 2015 to 4.00% at the date of the CTF Acquisition. This change in the discount rate resulted in a remeasurement charge to other comprehensive income (loss) of $105 million during 2016. 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 securities, 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 2016, 2015 and 2014, our expected long-term rate of return on plan assets was 7.50% , 7.75% , and 7.75% , respectively. For 2017, 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. . 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, 2016 and 2015 and the components of total pension benefit cost for the years ended December 31, 2016, 2015 and 2014: ( $ in millions ) 2016 2015 Change in projected benefit obligation (PBO) PBO at beginning of year $ 2,142 $ 2,210 Service cost 88 55 Interest cost 122 88 Actuarial (gain)/loss 137 (88) Benefits paid (155) (128) Connecticut Acquisition transfer - 5 CTF Acquisition PBO 1,108 - Special termination benefits 23 - PBO at end of year $ 3,465 $ 2,142 Change in plan assets Fair value of plan assets at beginning of year $ 1,572 $ 1,673 Fair value of plan assets for the CTF operations as of acquisition date 1,120 - Fair value of plan assets for the Connecticut Operations as of acquisition date - 5 Actual return on plan assets 201 (40) Employer contributions 28 62 Benefits paid (155) (128) Fair value of plan assets at end of year $ 2,766 $ 1,572 Funded status $ (699) $ (570) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ - $ (9) Pension and other postretirement benefits - noncurrent $ (699) $ (561) Accumulated other comprehensive loss $ 647 $ 584 In connection with the completion of the CTF Acquisition, certain employees were transferred to the Frontier Communications Pension Plan (the Plan) effective April 1, 2016. Assets of $1, 108 million related to the CTF Acquisition were transferred from Verizon and the Verizon pension plan trusts during 2016 . ( $ in millions ) 2016 2015 2014 Components of total pension benefit cost Service cost $ 88 $ 55 $ 42 Interest cost on projected benefit obligation 122 88 80 Expected return on plan assets (168) (129) (99) Amortization of unrecognized loss 40 29 20 Net periodic pension benefit cost 82 43 43 Special termination benefits 23 - - Total pension benefit cost $ 105 $ 43 $ 43 The expected amortization of unrecognized loss in 2017 is $35 million. We capitalized $25 million, $20 million and $15 million of pension and OPEB expense into the cost of our capital expenditures during the years ended December 31, 2016, 2015 and 2014, respectively, as the costs relate to our engineering and plant construction activities . The plan’s weighted average asset allocations at December 31, 2016 and 2015 by asset category are as follows : 2016 2015 Asset category: Equity securities 50 % 47 % Debt securities 38 % 46 % Alternative investments 11 % 6 % Cash and other 1 % 1 % Total 100 % 100 % The plan’s expected benefit payments over the next 10 years are as follows : ($ in millions) Amount 2017 $ 375 2018 308 2019 293 2020 281 2021 271 2022-2026 1,224 Total $ 2,752 We made total contributions to our pension plan of $ 28 million during 2016 consisting of cash payments of $13 million and the contribution of real property with a fair value of $15 million, as described below. See Note 7 for further discussion of a Frontier contribut ion of real estate property in 2016 with an aggregate fair value of $15 million for the purpose of funding a portion of its contribution obligations to the Plan. We made total cash contributions to our pension plan during 2015 and 2014 of $ 62 million and $83 million, respectively. The accumulated benefit obligation for the plan was $3,363 million and $2,048 million at December 31, 2016 and 2015, respectively. Assumptions used in the computation of annual pension costs and valuation of the year-end obligations were as follows : 2016 2015 2014 Discount rate - used at year end to value obligation 4.10 % 4.50 % 4.10 % Discount rate - used to compute annual cost 4.50 % 4.10 % 4.90 % Expected long-term rate of return on plan assets 7.50 % 7.75 % 7.75 % 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 plans’ benefit obligations, fair values of plan assets and the postretirement benefit liability recognized on our consolidated balance sheets as of December 31, 2016 and 2015 and the components of total postretirement benefit cost for the years ended December 31, 2016, 2015 and 2014 . ( $ in millions) 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 626 $ 727 CTF Acquisition PBO 276 - Service cost 19 19 Interest cost 37 30 Plan participants' contributions 5 5 Actuarial (gain)/loss (18) (115) Benefits paid (23) (25) Connecticut Acquisition transfer - 5 Plan change - (20) Special termination benefits 3 - Benefit obligation at end of year $ 925 $ 626 Change in plan assets Fair value of plan assets at beginning of year $ - $ - Plan participants' contributions 5 5 Employer contribution 18 20 Benefits paid (23) (25) Fair value of plan assets at end of year $ - $ - Funded status $ (925) $ (626) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ (23) $ (24) Pension and other postretirement benefits - noncurrent $ (902) $ (602) Accumulated other comprehensive (gain) loss $ (29) $ (20) ( $ in millions ) 2016 2015 2014 Components of total postretirement benefit cost Service cost $ 19 $ 19 $ 11 Interest cost on projected benefit obligation 37 30 22 Amortization of prior service cost /(credit) (9) (5) (4) Amortization of unrecognized loss 1 8 3 Net periodic postretirement benefit cost 48 52 32 Special termination benefits 3 - - Total postretirement benefit cost $ 51 $ 52 $ 32 The expected amortization of prior service credit in 2017 is $9 million and the expected amortization of unrecognized loss in 2017 is $0 . Assumptions used in the computation of annual OPEB costs and valuation of the year-end OPEB obligations were as follows : 2016 2015 2014 Discount rate - used at year end to value obligation 4.10% - 4.30% 4.50% - 4.70% 4.10% - 4.20% Discount rate - used to compute annual cost 4.50% - 4.70% 4.10% - 4.20% 4.90% - 5.20% The OPEB plan’s expected benefit payments over the next 10 years are as follows : ($ in millions) Gross Benefit Medicare Part D Subsidy Total 2017 $ 24 $ - $ 24 2018 30 - 30 2019 38 - 38 2020 44 - 44 2021 49 - 49 2022-2026 298 1 299 Total $ 483 $ 1 $ 484 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 2024 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 $1 million and the effect on the accumulated postretirement benefit obligation for health benefits would be $20 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 $(1) million and the effect on the accumulated postretirement benefit obligation for health benefits would be $ (19) 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, 2016 and 2015 are as follows : Pension Plan OPEB ( $ in millions ) 2016 2015 2016 2015 Net actuarial loss $ 647 $ 584 $ 1 $ 20 Prior service cost/(credit) - - (30) (40) Total $ 647 $ 584 $ (29) $ (20) The amounts recognized as a component of accumulated other comprehensive loss for the years ended December 31, 2016 and 2015 are as follows : Pension Plan OPEB ( $ in millions ) 2016 2015 2016 2015 Accumulated other comprehensive (gain) loss at beginning of year $ 584 $ 532 $ (20) $ 119 Net actuarial gain (loss) recognized during year (40) (29) (1) (8) Prior service (cost) credit recognized during year - - 9 5 Net actuarial loss (gain) occurring during year 103 81 (17) (136) Net amount recognized in comprehensive income (loss) for the year 63 52 (9) (139) Accumulated other comprehensive (gain) loss at end of year $ 647 $ 584 $ (29) $ (20) 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 $48 million, $28 million and $21 million for 2016, 2015 and 2014, respectively . |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (18) 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 unobservable 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, 2016 and 2015 : Fair Value Measurements at December 31, 2016 ( $ in millions ) Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 42 $ 42 $ - $ - U.S. Government Obligations 29 - 29 - Corporate and Other Obligations 400 - 400 - Common Stock 487 487 - - Common/Collective Trusts 1,104 - 1,104 - Interest in Registered Investment Companies 334 334 - - Interest in Limited Partnerships and Limited Liability Companies 118 - - 118 Total investments at fair value $ 2,514 $ 863 $ 1,533 $ 118 Receviable for plan assets of the CTF Operations 258 Interest and Dividend Receivable 6 Due from Broker for Securities Sold 27 Receivable Associated with Insurance Contract 7 Due to Broker for Securities Purchased (46) Total Plan Assets, at Fair Value $ 2,766 ( $ 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 There have been no reclassifications of investments between Levels 1, 2 or 3 assets during the years ended December 31, 2016 or 2015. The tables below set forth a summary of changes in the fair value of the Plan’s Level 3 assets for the years ended December 31, 2016 and 2015 : Interest in Limited Partnerships and Limited Liability Companies ( $ in millions ) 2016 2015 Balance, beginning of year $ 92 $ 103 Realized gains 7 8 Unrealized losses 13 (11) Purchases 15 - Sales and distributions (9) (8) Balance, end of year $ 118 $ 92 The following table provides further information regarding the redemption of the Plan’s Level 3 investments as of December 31, 2016 : ( $ 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 4 years MS IFHF SVP LP Alpha (a) 1 Through liquidation of underlying investments None 4 years RII World Timberfund, LLC (b) 6 Through liquidation of underlying investments None 10 years 426 E Casino Road, LLC (c) 15 Through liquidation of underlying investments None NA 100 Comm Drive, LLC (c) 9 Through liquidation of underlying investments None NA 100 CTE Drive, LLC (c) 13 Through liquidation of underlying investments None NA 6430 Oakbrook Parkway, LLC (c) 25 Through liquidation of underlying investments None NA 8001 West Jefferson, LLC (c) 26 Through liquidation of underlying investments None NA 1500 MacCorkle Ave SE, LLC (c) 14 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) 6 Through liquidation of underlying investments None NA Total Interest in Limited Partnerships and Limited Liability Companies $ 118 (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. These instruments are subject to certain withdrawal restrictions. The Plan is in the process of liquidating its interest in the partnerships and distributions are expected to be made over the next four years. (b) The fund’s objective is to realize substantial long-term capital appreciation by investing in timberland properties primarily in South America and Australia. This investment is subject to certain withdrawal restrictions. (c) The entity invests 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, 2016, and the significant unobservable inputs and ranges of values for those inputs : Instrument Property Fair Value Capitalization Rate 426 E. Casino Road, LLC $ 15 7.00% 100 Comm Drive, LLC $ 9 7.75% 100 CTE Drive, LLC $ 13 9.00% 6430 Oakbrook Parkway, LLC $ 25 7.75% Interest in Limited Partnerships 8001 West Jefferson, LLC $ 26 8.50% and Limited Companies 1500 MacCorkle Ave SE, LLC $ 14 8.25% 400 S. Pike Road West, LLC $ 1 8.50% 601 N US 131, LLC $ 1 9.50% 9260 E. Stockton Blvd., LLC $ 6 7.50% The following table summarizes the carrying amounts and estimated fair values for long-term debt at December 31, 2016 and 2015. 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 . 2016 2015 Carrying Carrying ($ in millions) Amount Fair Value Amount Fair Value Long-term debt $ 17,560 $ 17,539 $ 15,508 $ 14,767 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, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (19) 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 program provides $332 million in annual support, including $49 million in annual support related to the properties acquired in the CTF Acquisition, through 2020 to make available 10 Mbps downstream/1 Mbps upstream broadband service to approximately 774,000 households across certain of the 29 states where we now 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. On April 28, 2016, the FCC completed its 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 FCC held that certain of the tariff terms for business data TDM services, specifically DS1s and DS3s, were unreasonable. Specifically, the FCC struck down “excessive” early termination fees and “all-or-nothing” provisions. Frontier has revised its tariffs in accordance with the FCC’s Order. The FCC’s decision has no retroactive effect, and we anticipate no material impact to Frontier from it. The FCC deferred the issue of how its ruling will affect customers currently purchasing services from these tariffs to a Notice of Proposed Rulemaking. It is seeking comment on proposed changes to the way the FCC regulates traditional special access services and on a proposal to adopt pricing rules for Ethernet services in markets that are found to be “noncompetitive.” The potential impact to Frontier of this proceeding is unknown, though any pending initiative could adversely affect our operations or financial results. 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. In October 2013, the California Attorney General’s Office notified certain Verizon companies, including one of the subsidiaries that we acquired in the CTF Acquisition, of potential violations of California state hazardous waste statutes primarily arising from the disposal of electronic components, batteries and aerosol cans at certain California facilities. We are cooperating with this investigation. While penalties relating to the alleged violations could exceed $100,000 , we do not expect that any penalties ultimately incurred will be material. We accrue an expense for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of our existing accruals for pending matters, after considering insurance coverage, is material. We monitor our pending litigation for the purpose of adjusting our accruals and revising our disclosures accordingly, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. We will vigorously defend our interests in pending litigation, and as of this date, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our consolidated financial position, results of operations, or our cash flows. We conduct certain of our operations in leased premises and also lease certain equipment and other assets pursuant to operating leases. The lease arrangements have terms ranging from 1 to 99 years and several contain rent escalation clauses providing for increases in monthly rent at specific intervals. When rent escalation clauses exist, we record annual rental expense based on the total expected rent payments on a straight-line basis over the lease term. Certain leases also have renewal options. Renewal options that are reasonably assured are included in determining the lease term. Future minimum rental commitments for all long-term noncancelable operating leases as of December 31, 2016 are as follows : ($ in millions) Operating Leases Year ending December 31: 2017 $ 91 2018 18 2019 18 2020 23 2021 21 Thereafter 76 Total minimum lease payments $ 247 Total rental expense included in our consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 was $137 million, $119 million and $100 million, respectively. We are party to contracts with several unrelated long distance carriers. The contracts provide fees based on traffic they carry for us subject to minimum monthly fees. At December 31, 2016, the estimated future payments for obligations under our noncancelable long distance contracts and service agreements are as follows : ($ in millions) Amount Year ending December 31: 2017 $ 42 2018 41 2019 7 2020 6 2021 2 Thereafter 10 Total $ 108 At December 31, 2016, we have outstanding performance letters of credit as follows : ($ in millions) Amount CNA Financial Corporation (CNA) $ 49 AIG Insurance 75 All other 1 Total $ 125 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 S27
Description Of Business And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
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, with approximately 5.4 million customers, 4.3 million broadband subscribers and 28,300 employees, operating in 29 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 April 1, 2016, Frontier’s scope of operations and balance sheet changed materially as a result of the completion of the CTF Acquisition, as described in Note 3 - Acquisitions. Historical financial data presented for Frontier is not indicative of the future financial position or operating results for Frontier, and includes the results of the CTF Operations, as defined in Note 3 – Acquisitions, from the date of acquisition on April 1, 2016. |
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. For our financial statements as of and for the period ended December 31, 2016, 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. We maintain an allowance for doubtful accounts based on an estimate of our ability to collect accounts receivable. At December 31, 2016, our accounts receivable balances, including balances for delinquent accounts, were higher than usual as a result of planned delays in collection efforts for certain new customers acquired in the CTF Acquisition. These payment delays are customary for us after large acquisitions in order to allow for resolution of any service or billing issues for new customers. Our allowance for doubtful accounts was adjusted to reflect our best estimate of collectability. 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 $ 217 million, $1 51 million and $125 million for the years ended December 31, 2016, 2015 and 2014, 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. Upon completion of the CTF Acquisition, Frontier assumed the CAF Phase II support and related obligations that Verizon had previously accepted with regard to California and Texas. CAF Phase II funding is a program intended to subsidize the high cost of establishing and delivering communications services to certain unserved or underserved areas. We are recognizing these subsidies into revenue on a straight line basis, which is consistent with how the costs related to these subsidies are being and are expected to be incurred. CAF Phase II is a multi-year program which requires us to deploy broadband to a specified 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 five 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. Voice 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”); · Video services include revenues generated from services provided directly to residential customers through the FiOS ® and Vantage video brands, and through DISH ® satellite TV services; · Other customer revenue includes sales of customer premise equipment to our business customers and directory services, less our provision for bad debts; 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 Phase II. 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 ) 2016 2015 2014 Voice services $ 2,886 $ 2,022 $ 1,951 Data and Internet services 3,693 2,337 1,948 Video services 1,244 285 134 Other 276 255 220 Customer revenue 8,099 4,899 4,253 Switched access and subsidy 797 677 519 Total revenue $ 8,896 $ 5,576 $ 4,772 |
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 2016, Frontier reorganized into s even 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 2016, we reassigned goodwill to our regional operating segments (reporting units) 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 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. |
Income Taxes and Deferred Income Taxes | (h) 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 | (i) 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 | (j) 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 13 – Net Income (Loss) Per Common Share. |
Description Of Business And S28
Description Of Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Revenue From External Customers | For the year ended December 31, ( $ in millions ) 2016 2015 2014 Voice services $ 2,886 $ 2,022 $ 1,951 Data and Internet services 3,693 2,337 1,948 Video services 1,244 285 134 Other 276 255 220 Customer revenue 8,099 4,899 4,253 Switched access and subsidy 797 677 519 Total revenue $ 8,896 $ 5,576 $ 4,772 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Verizon Transaction | |
Business Acquisition [Line Items] | |
Allocation of the purchase price | ($ in millions) Current assets $ 350 Property, plant & equipment 6,236 Goodwill 2,508 Other intangibles - primarily customer base 2,162 Current liabilities (518) Long-term debt (544) Other liabilities (323) Total net assets acquired $ 9,871 |
Unaudited Pro Forma Condensed Combined Statements of Income Information | (Unaudited) For the year ended December 31, ($ in millions, except per share amounts) 2016 2015 Revenue $ 10,255 $ 11,157 Operating income $ 1,433 $ 1,529 Net loss attributable to Frontier common shareholders $ 262 $ (192) Basic and diluted net loss per share attributable to Frontier common shareholders $ (0.23) $ (0.17) |
Connecticut Transaction | |
Business Acquisition [Line Items] | |
Allocation of the purchase price | ($ 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 | (Unaudited) For the year ended December 31, ($ in millions, except per share amounts) 2014 Revenue $ 5,775 Operating income $ 985 Net income attributable to Frontier common shareholders $ 191 Basic and diluted net income per share attributable to Frontier common shareholders $ 0.19 |
Parent Company [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Acquisition And Integration Costs Table TextBlock | For the Year Ended ($ in millions) 2016 2015 2014 Acquisition costs: CTF Acquisition $ 23 $ 44 $ - Connecticut Acquisition - 1 15 23 45 15 Integration costs: CTF Acquisition 412 152 - Connecticut Acquisition 1 39 127 413 191 127 Total acquisition and integration costs $ 436 $ 236 $ 142 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) 2016 2015 Retail and Wholesale $ 979 $ 569 Other 90 59 Less: Allowance for doubtful accounts (131) (57) Accounts receivable, net $ 938 $ 571 |
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 2014 $ 71 $ 61 $ - $ (60) $ 72 2015 $ 72 $ 67 $ (17) $ (65) $ 57 2016 $ 57 $ 164 $ 15 $ (105) $ 131 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) Estimated Useful Lives 2016 2015 Land N/A $ 235 $ 151 Buildings and leasehold improvements 41 years 2,300 1,327 General support 5 to 17 years 1,495 1,146 Central office/electronic circuit equipment 5 to 18 years 7,683 6,244 Poles 30 years 995 712 Cable, fiber and wire 15 to 25 years 10,267 7,280 Conduit 55 years 1,611 515 Other 12 to 25 years 52 47 Construction work in progress 903 379 Property, plant and equipment 25,541 17,801 Less: Accumulated depreciation (10,639) (9,308) Property, plant and equipment, net $ 14,902 $ 8,493 |
Schedule of Depreciation Expense | For the Year Ended ($ in millions) 2016 2015 2014 Depreciation expense $ 1,388 $ 983 $ 835 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Other Intangibles [Abstract] | |
Schedule Of Goodwill Activity | ($ in millions) Goodwill Balance at January 1, 2015 $ 7,205 Connecticut Acquisition Adjustment (53) Other Acquisition 14 Balance at December 31, 2015 7,166 CTF Acquisition (Note 3) 2,508 Balance at December 31, 2016 $ 9,674 |
Components Of Other Intangibles | 2016 2015 ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other Intangibles: Customer base $ 5,088 $ (2,604) $ 2,484 $ 2,998 $ (1,977) $ 1,021 Trade name 122 - 122 122 - 122 Royalty agreement 72 (16) 56 - - - Total other intangibles $ 5,282 $ (2,620) $ 2,662 $ 3,120 $ (1,977) $ 1,143 |
Schedule Of Amortization Expense Table Text Block | For the Year Ended ($ in millions) 2016 2015 2014 Amortization expense $ 643 $ 337 $ 304 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Year ended December 31, 2016 ($ in millions) January 1, 2016 Payments and Retirements New Borrowings Debt Assumed Reclassifications December 31, 2016 Interest Rate at December 31, 2016* Senior & Subsidiary Unsecured Debt $ 16,055 $ (419) $ 401 $ 500 $ (637) $ 15,900 9.18% Senior Secured Debt - (426) 1,940 - 637 2,151 3.89% Secured Subsidiary Debt - - - 100 - 100 8.50% Secured Debt 23 (4) - - - 19 4.50% Rural Utilities Service Loan Contracts 8 - - - - 8 6.15% Total Long-Term Debt $ 16,086 $ (849) $ 2,341 $ 600 $ - $ 18,178 8.55% Less: Debt Issuance Costs (196) (209) Less: Debt Premium (Discount) 2 (46) Less: Current Portion (384) (363) $ 15,508 $ 17,560 * Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at December 31, 2016 represent a weighted average of multiple issuances . |
Senior Unsecured Debt | 2016 2015 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Senior Unsecured Debt Due: 4/15/2017 $ 210 8.250% $ 607 8.250% 10/1/2018 583 8.125% 583 8.125% 3/15/2019 434 7.125% 434 7.125% 4/15/2020 1,169 8.500% 1,022 8.500% 9/15/2020 1,066 8.875% 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 2,188 10.500% 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% 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% 15,150 15,146 Senior Secured Debt Due: 10/14/2016 (1) - - 344 2.805% (Variable) 10/24/2019 (2) 280 4.145% (Variable) 315 3.805% (Variable) 3/31/2021 (3) 1,564 3.270% (Variable) - 10/12/2021 (4) 307 4.145% (Variable) - 2,151 659 Subsidiary Debentures Due: 5/15/2027 200 6.750% - 2/1/2028 300 6.860% - 2/15/2028 200 6.730% 200 6.730% 10/15/2029 50 8.400% 50 8.400% 11/15/2031 100 8.500% - 850 250 Total $ 18,151 8.30% (5) $ 16,055 8.74% (5) (1) Represents borrowings under the 2011 CoBank Credit Agreement, as defined below, that became secured as of April 1, 2016. (2) Represents borrowings under the 2014 CoBank Credit Agreement, as defined below, that became secured as of April 1, 2016. (3) Represents borrowings under the 2015 Credit Agreement, as defined below. (4) Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. (5) Interest rate represents a weighted average of the stated interest rates of multiple issuances. |
Debt Maturities by Year | Principal ($ in millions) Payments 2017 $ 363 2018 $ 733 2019 $ 818 2020 $ 2,429 2021 $ 2,554 Thereafter $ 11,281 |
Contractual Obligations by Year | ($ in millions) Finance Lease Obligations Capital Lease Obligations Year ending December 31: 2017 $ 9 $ 39 2018 9 37 2019 9 26 2020 9 15 2021 9 9 Thereafter 60 21 Total future payments 105 147 Less: Amounts representing interest (57) (18) Present value of minimum lease payments $ 48 $ 129 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Costs [Abstract] | |
Restructuring Reserve Rollforward (Table) | ($ in millions) Restructuring Liability Balance, January 1, 2016 $ 1 Severance costs 65 Cash payments during the period (19) Balance, December 31, 2016 $ 47 |
Investment and Other Income, 35
Investment and Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment and Other Income, Net [Abstract] | |
Components Of Investment and Other Income, Net | ( $ in millions ) 2016 2015 2014 Interest and dividend income $ 13 $ 7 $ 2 Loss on debt exchanges (7) - - Gain on sale of Fairmount Cellular LLC - - 25 Gain on sale of 700 MHz spectrum - - 12 Gain on expiration/settlement of customer advances 13 - - All other, net 1 - - Total investment and other income, net $ 20 $ 7 $ 39 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Plans [Abstract] | |
LTIP Target Performance Shares | Number of Shares (in thousands) Balance at January 1, 2014 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 LTIP target performance shares granted 1,669 LTIP target performance shares earned (887) LTIP target performance shares forfeited (448) Balance at December 31, 2016 2,859 |
Restricted Shares Outstanding | Weighted Average Number of Grant Date Aggregate Shares Fair Value Fair Value (in thousands) (per share) (in millions) Balance at January 1, 2014 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 Restricted stock granted 5,936 $ 4.36 $ 20 Restricted stock vested (3,720) $ 5.26 $ 13 Restricted stock forfeited (908) $ 5.11 Balance at December 31, 2016 8,356 $ 5.20 $ 28 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | 2016 2015 2014 Consolidated tax provision at federal statutory rate 35.0 % 35.0 % 35.0 % State income tax provisions, net of federal income tax benefit (0.1) 8.7 1.6 Tax reserve adjustment 0.6 (0.3) 6.9 Domestic production activities deduction (1.9) - (8.7) Changes in certain deferred tax balances 5.8 0.8 (14.1) Federal research and development credit 1.0 1.5 (3.3) Non-deductible transaction costs - 0.4 1.0 All other, net (0.2) (0.3) 0.3 Effective tax rate 40.2 % 45.8 % 18.7 % |
Components of Net Deferred Income Tax Liability (Asset) | ( $ in millions ) 2016 2015 Deferred income tax liabilities: Property, plant and equipment basis differences $ 2,751 $ 2,401 Intangibles 878 960 Deferred revenue/expense 14 - Other, net 12 15 $ 3,655 $ 3,376 Deferred income tax assets: Pension liability 273 222 Tax operating loss carryforward 687 295 Employee benefits 255 262 Accrued expenses 44 50 Lease obligations 75 - Tax credit 30 - Allowance for doubtful accounts 44 10 Other, net 2 48 1,410 887 Less: Valuation allowance (271) (177) Net deferred income tax asset 1,139 710 Net deferred income tax liability $ 2,516 $ 2,666 |
Schedule of Components of Income Tax Expense (Benefit) | ( $ in millions ) 2016 2015 2014 Income tax expense (benefit): Current: Federal $ (52) $ 8 $ 98 State 7 (6) 10 Total Current (45) 2 108 Deferred: Federal (145) (126) (34) State (60) (41) (44) Total Deferred (205) (167) (78) Total income tax expense (benefit) (250) (165) 30 Income taxes charged (credited) to equity of Frontier: Utilization of the benefits arising from restricted stock (5) - - Deferred income taxes (benefits) arising from the recognition of additional pension/OPEB liability (21) 36 (90) Total income taxes charged (credited) to equity of Frontier (26) 36 (90) Total income taxes $ (276) $ (129) $ (60) |
Changes in the Balance of Unrecognized Tax Benefits | ($ in millions) 2016 2015 Unrecognized tax benefits - beginning of year $ 19 $ 19 Gross increases - prior year tax positions 3 - Gross increases - current year tax positions 3 2 Gross decreases - FIN 48 liability release (9) - Gross decreases - expired statute of limitations - (2) Unrecognized tax benefits - end of year $ 16 $ 19 |
Net Income (Loss) Per Common 38
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income (Loss) Per Common Share [Abstract] | |
Calculation Of Net Income (Loss) Per Common Share | ( $ in millions and shares in thousands, except per share amounts ) 2016 2015 2014 Net income (loss) used for basic and diluted earnings (loss) per share: Net income (loss) attributable to Frontier common shareholders $ (587) $ (316) $ 133 Less: Dividends paid on unvested restricted stock awards (3) (3) (3) Total basic and diluted net income (loss) attributable to Frontier common shareholders $ (590) $ (319) $ 130 Basic earnings (loss) per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 1,172,131 1,091,798 1,001,812 Less: Weighted average unvested restricted stock awards (8,032) (7,192) (7,394) Total weighted average shares outstanding - basic 1,164,099 1,084,606 994,418 Basic net income (loss) per share attributable to Frontier common shareholders $ (0.51) $ (0.29) $ 0.13 Diluted earnings (loss) per share: Total weighted average shares outstanding - basic 1,164,099 1,084,606 994,418 Effect of dilutive shares - - 3,744 Total weighted average shares outstanding - diluted 1,164,099 1,084,606 998,162 Diluted net income (loss) per share attributable to Frontier common shareholders $ (0.51) $ (0.29) $ 0.13 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2014 $ (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) Other comprehensive income (loss) before reclassifications (103) 17 32 (54) Amounts reclassified from accumulated other comprehensive income (loss) 40 (8) (12) 20 Net current-period other comprehensive income (loss) (63) 9 20 (34) Balance at December 31, 2016 $ (647) $ 29 $ 231 $ (387) |
Reclassification Out of Accumulated Other Comprehensive Income | Amount Reclassified from ($ in millions) Accumulated Other Comprehensive Loss (a) Details about Accumulated Other Comprehensive Loss Components 2016 2015 2014 Affected Line Item in the Statement Where Net Income (Loss) is Presented Amortization of Pension Cost Items (b) Actuarial gains (losses) $ (40) $ (29) $ (20) (40) (29) (20) Income (loss) before income taxes Tax impact 15 11 7 Income tax (expense) benefit $ (25) $ (18) $ (13) Net income (loss) Amortization of OPEB Cost Items (b) Prior-service costs $ 9 $ 5 $ 4 Actuarial gains (losses) (1) (8) (3) 8 (3) 1 Income (loss) before income taxes Tax impact (3) 1 - Income tax (expense) benefit $ 5 $ (2) $ 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 costs (see Note 17 - Retirement Plans for additional details ). |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | ($ in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2016 Revenue $ 1,355 $ 2,608 $ 2,524 $ 2,409 $ 8,896 Operating income 58 311 264 255 888 Net loss attributable to Frontier common shareholders (240) (80) (134) (133) (587) Basic net loss per share attributable to Frontier common shareholders $ (0.21) $ (0.07) $ (0.12) $ (0.12) $ (0.51) First Quarter Second Quarter Third Quarter Fourth Quarter Total Year 2015 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) |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Plans [Abstract] | |
Projected Benefit Obligations, Fair Values of Plan Assets and Amounts Recognized in the Balance Sheet | ( $ in millions ) 2016 2015 Change in projected benefit obligation (PBO) PBO at beginning of year $ 2,142 $ 2,210 Service cost 88 55 Interest cost 122 88 Actuarial (gain)/loss 137 (88) Benefits paid (155) (128) Connecticut Acquisition transfer - 5 CTF Acquisition PBO 1,108 - Special termination benefits 23 - PBO at end of year $ 3,465 $ 2,142 Change in plan assets Fair value of plan assets at beginning of year $ 1,572 $ 1,673 Fair value of plan assets for the CTF operations as of acquisition date 1,120 - Fair value of plan assets for the Connecticut Operations as of acquisition date - 5 Actual return on plan assets 201 (40) Employer contributions 28 62 Benefits paid (155) (128) Fair value of plan assets at end of year $ 2,766 $ 1,572 Funded status $ (699) $ (570) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ - $ (9) Pension and other postretirement benefits - noncurrent $ (699) $ (561) Accumulated other comprehensive loss $ 647 $ 584 |
Net Periodic Benefit Cost | ( $ in millions ) 2016 2015 2014 Components of total pension benefit cost Service cost $ 88 $ 55 $ 42 Interest cost on projected benefit obligation 122 88 80 Expected return on plan assets (168) (129) (99) Amortization of unrecognized loss 40 29 20 Net periodic pension benefit cost 82 43 43 Special termination benefits 23 - - Total pension benefit cost $ 105 $ 43 $ 43 |
Weighted Average Asset Allocations, By Asset Category | 2016 2015 Asset category: Equity securities 50 % 47 % Debt securities 38 % 46 % Alternative investments 11 % 6 % Cash and other 1 % 1 % Total 100 % 100 % |
Expected Benefit Payments Over The Next Ten Years | ($ in millions) Amount 2017 $ 375 2018 308 2019 293 2020 281 2021 271 2022-2026 1,224 Total $ 2,752 |
Schedule of Assumptions Used | 2016 2015 2014 Discount rate - used at year end to value obligation 4.10 % 4.50 % 4.10 % Discount rate - used to compute annual cost 4.50 % 4.10 % 4.90 % Expected long-term rate of return on plan assets 7.50 % 7.75 % 7.75 % Rate of increase in compensation levels 2.50 % 2.50 % 2.50 % |
Schedule of Changes in Projected benefit Obligations for OPEB | ( $ in millions) 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 626 $ 727 CTF Acquisition PBO 276 - Service cost 19 19 Interest cost 37 30 Plan participants' contributions 5 5 Actuarial (gain)/loss (18) (115) Benefits paid (23) (25) Connecticut Acquisition transfer - 5 Plan change - (20) Special termination benefits 3 - Benefit obligation at end of year $ 925 $ 626 Change in plan assets Fair value of plan assets at beginning of year $ - $ - Plan participants' contributions 5 5 Employer contribution 18 20 Benefits paid (23) (25) Fair value of plan assets at end of year $ - $ - Funded status $ (925) $ (626) Amounts recognized in the consolidated balance sheet Pension and other postretirement benefits - current $ (23) $ (24) Pension and other postretirement benefits - noncurrent $ (902) $ (602) Accumulated other comprehensive (gain) loss $ (29) $ (20) |
Schedule of Net Benefit Costs For OPEB | ( $ in millions ) 2016 2015 2014 Components of total postretirement benefit cost Service cost $ 19 $ 19 $ 11 Interest cost on projected benefit obligation 37 30 22 Amortization of prior service cost /(credit) (9) (5) (4) Amortization of unrecognized loss 1 8 3 Net periodic postretirement benefit cost 48 52 32 Special termination benefits 3 - - Total postretirement benefit cost $ 51 $ 52 $ 32 |
Schedule of Assumptions Used for OPEB | 2016 2015 2014 Discount rate - used at year end to value obligation 4.10% - 4.30% 4.50% - 4.70% 4.10% - 4.20% Discount rate - used to compute annual cost 4.50% - 4.70% 4.10% - 4.20% 4.90% - 5.20% |
Schedule of Expected Benefit Payments for OPEB | ($ in millions) Gross Benefit Medicare Part D Subsidy Total 2017 $ 24 $ - $ 24 2018 30 - 30 2019 38 - 38 2020 44 - 44 2021 49 - 49 2022-2026 298 1 299 Total $ 483 $ 1 $ 484 |
Net Periodic Benefit Cost Not Yet Recognized | Pension Plan OPEB ( $ in millions ) 2016 2015 2016 2015 Net actuarial loss $ 647 $ 584 $ 1 $ 20 Prior service cost/(credit) - - (30) (40) Total $ 647 $ 584 $ (29) $ (20) |
Amounts Recognized as a Componenet of Accumulated Comprehensive Income | Pension Plan OPEB ( $ in millions ) 2016 2015 2016 2015 Accumulated other comprehensive (gain) loss at beginning of year $ 584 $ 532 $ (20) $ 119 Net actuarial gain (loss) recognized during year (40) (29) (1) (8) Prior service (cost) credit recognized during year - - 9 5 Net actuarial loss (gain) occurring during year 103 81 (17) (136) Net amount recognized in comprehensive income (loss) for the year 63 52 (9) (139) Accumulated other comprehensive (gain) loss at end of year $ 647 $ 584 $ (29) $ (20) |
Fair Value Of Financial Instr42
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Pension Plan Assets Measured At Fair Value on Recurring Basis | Fair Value Measurements at December 31, 2016 ( $ in millions ) Total Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 42 $ 42 $ - $ - U.S. Government Obligations 29 - 29 - Corporate and Other Obligations 400 - 400 - Common Stock 487 487 - - Common/Collective Trusts 1,104 - 1,104 - Interest in Registered Investment Companies 334 334 - - Interest in Limited Partnerships and Limited Liability Companies 118 - - 118 Total investments at fair value $ 2,514 $ 863 $ 1,533 $ 118 Receviable for plan assets of the CTF Operations 258 Interest and Dividend Receivable 6 Due from Broker for Securities Sold 27 Receivable Associated with Insurance Contract 7 Due to Broker for Securities Purchased (46) Total Plan Assets, at Fair Value $ 2,766 ( $ 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 |
Changes in Fair Value of Plan's Level 3 Assets | Interest in Limited Partnerships and Limited Liability Companies ( $ in millions ) 2016 2015 Balance, beginning of year $ 92 $ 103 Realized gains 7 8 Unrealized losses 13 (11) Purchases 15 - Sales and distributions (9) (8) Balance, end of year $ 118 $ 92 |
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 4 years MS IFHF SVP LP Alpha (a) 1 Through liquidation of underlying investments None 4 years RII World Timberfund, LLC (b) 6 Through liquidation of underlying investments None 10 years 426 E Casino Road, LLC (c) 15 Through liquidation of underlying investments None NA 100 Comm Drive, LLC (c) 9 Through liquidation of underlying investments None NA 100 CTE Drive, LLC (c) 13 Through liquidation of underlying investments None NA 6430 Oakbrook Parkway, LLC (c) 25 Through liquidation of underlying investments None NA 8001 West Jefferson, LLC (c) 26 Through liquidation of underlying investments None NA 1500 MacCorkle Ave SE, LLC (c) 14 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) 6 Through liquidation of underlying investments None NA Total Interest in Limited Partnerships and Limited Liability Companies $ 118 (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. These instruments are subject to certain withdrawal restrictions. The Plan is in the process of liquidating its interest in the partnerships and distributions are expected to be made over the next four years. (b) The fund’s objective is to realize substantial long-term capital appreciation by investing in timberland properties primarily in South America and Australia. This investment is subject to certain withdrawal restrictions. (c) The entity invests 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 426 E. Casino Road, LLC $ 15 7.00% 100 Comm Drive, LLC $ 9 7.75% 100 CTE Drive, LLC $ 13 9.00% 6430 Oakbrook Parkway, LLC $ 25 7.75% Interest in Limited Partnerships 8001 West Jefferson, LLC $ 26 8.50% and Limited Companies 1500 MacCorkle Ave SE, LLC $ 14 8.25% 400 S. Pike Road West, LLC $ 1 8.50% 601 N US 131, LLC $ 1 9.50% 9260 E. Stockton Blvd., LLC $ 6 7.50% |
Fair Value Of Long-Term Debt | 2016 2015 Carrying Carrying ($ in millions) Amount Fair Value Amount Fair Value Long-term debt $ 17,560 $ 17,539 $ 15,508 $ 14,767 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Future Minimum Rental Commitments for All Long-Term Noncancelable Operating Leases | ($ in millions) Operating Leases Year ending December 31: 2017 $ 91 2018 18 2019 18 2020 23 2021 21 Thereafter 76 Total minimum lease payments $ 247 |
Future Payments for Obligations under Noncancelable Long Distance Contracts and Service Agreements | ($ in millions) Amount Year ending December 31: 2017 $ 42 2018 41 2019 7 2020 6 2021 2 Thereafter 10 Total $ 108 |
Outstanding Performance Letters of Credit | ($ in millions) Amount CNA Financial Corporation (CNA) $ 49 AIG Insurance 75 All other 1 Total $ 125 |
Description Of Business And S44
Description Of Business And Summary Of Significant Accounting Policies (Narrative) (Details) customer in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)customeremployeestatesegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |||
Number of customers | customer | 5.4 | ||
Number of subscribers | customer | 4.3 | ||
Number of employees | employee | 28,300 | ||
Number of states of operation | state | 29 | ||
Customer surcharges | $ | $ 217 | $ 151 | $ 125 |
Number of operating regions | segment | 7 | ||
Number of reportable segments | segment | 1 |
Description Of Business And S45
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||||||||||
Revenues | $ 2,409 | $ 2,524 | $ 2,608 | $ 1,355 | $ 1,413 | $ 1,424 | $ 1,368 | $ 1,371 | $ 8,896 | $ 5,576 | $ 4,772 |
Customer Revenue | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 8,099 | 4,899 | 4,253 | ||||||||
Voice Services | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 2,886 | 2,022 | 1,951 | ||||||||
Data And Internet Services | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 3,693 | 2,337 | 1,948 | ||||||||
Video Services | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 1,244 | 285 | 134 | ||||||||
Other Customer Revenues | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 276 | 255 | 220 | ||||||||
Switched Access And Subsidy Revenue | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | $ 797 | $ 677 | $ 519 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) item in Millions | Apr. 01, 2016USD ($)item | Oct. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition, Date of Acquisition [Abstract] | |||||||||||||
Cash paid for acquisition | $ 9,871,000,000 | ||||||||||||
Goodwill | $ 9,674,000,000 | $ 7,166,000,000 | 9,674,000,000 | $ 7,166,000,000 | $ 7,205,000,000 | ||||||||
Revenue | 2,409,000,000 | $ 2,524,000,000 | $ 2,608,000,000 | $ 1,355,000,000 | 1,413,000,000 | $ 1,424,000,000 | $ 1,368,000,000 | $ 1,371,000,000 | 8,896,000,000 | 5,576,000,000 | 4,772,000,000 | ||
Operating income | 255,000,000 | $ 264,000,000 | $ 311,000,000 | $ 58,000,000 | 182,000,000 | 207,000,000 | $ 193,000,000 | $ 163,000,000 | 888,000,000 | 745,000,000 | 820,000,000 | ||
Capital Expenditures Integration Activities | 142,000,000 | 153,000,000 | 116,000,000 | ||||||||||
Proceeds from equity issuance | 2,750,000,000 | ||||||||||||
Restricted cash | 8,444,000,000 | 8,444,000,000 | |||||||||||
Verizon Transaction | |||||||||||||
Business Acquisition, Date of Acquisition [Abstract] | |||||||||||||
Acquisition purchase price | $ 10,540,000,000 | ||||||||||||
Working Capital And Net Debt Settlement Payments Received | $ 15,000,000 | ||||||||||||
Number of video connections acquired | item | 1.2 | ||||||||||||
Number of broadband connections acquired | item | 2.1 | ||||||||||||
Number of voice connections acquired | item | 2.5 | ||||||||||||
Cash paid for acquisition | $ 9,886,000,000 | ||||||||||||
Goodwill | $ 2,508,000,000 | 2,508,000,000 | |||||||||||
Revenue | 3,622,000,000 | ||||||||||||
Operating income | 582,000,000 | ||||||||||||
Capital Expenditures Integration Activities | $ 142,000,000 | 129,000,000 | |||||||||||
Verizon Transaction | Senior Unsecured Debt [Member] | |||||||||||||
Business Acquisition, Date of Acquisition [Abstract] | |||||||||||||
Debt instrument, face amount | 6,600,000,000 | $ 6,600,000,000 | 6,600,000,000 | ||||||||||
Connecticut Transaction | |||||||||||||
Business Acquisition, Date of Acquisition [Abstract] | |||||||||||||
Cash paid for acquisition | 2,018,000,000 | ||||||||||||
Goodwill | 815,000,000 | 815,000,000 | |||||||||||
Goodwill deductible for income tax purposes | $ 75,000,000 | 75,000,000 | |||||||||||
Revenue | 1,049,000,000 | 216,000,000 | |||||||||||
Operating income | 100,000,000 | 38,000,000 | |||||||||||
Capital Expenditures Integration Activities | $ 24,000,000 | $ 116,000,000 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,674 | $ 7,166 | $ 7,205 |
Verizon Transaction | |||
Business Acquisition [Line Items] | |||
Current assets | 350 | ||
Property, plant and equipment | 6,236 | ||
Goodwill | 2,508 | ||
Other intangibles - customer base | 2,162 | ||
Current liabilities | (518) | ||
Long-term debt | (544) | ||
Other liabilities | (323) | ||
Total net assets acquired | $ 9,871 | ||
Connecticut Transaction | |||
Business Acquisition [Line Items] | |||
Current assets | 69 | ||
Property, plant and 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 |
Acquisitions (Unaudited Pro For
Acquisitions (Unaudited Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Verizon Transaction | ||
Business Acquisition [Line Items] | ||
Revenue | $ 10,255 | $ 11,157 |
Operating income | 1,433 | 1,529 |
Net income attributable to Frontier common shareholders | $ 262 | $ (192) |
Basic and diluted net income per share attributable to Frontier common shareholders | $ (0.23) | $ (0.17) |
Connecticut Transaction | ||
Business Acquisition [Line Items] | ||
Revenue | $ 5,775 | |
Operating income | 985 | |
Net income attributable to Frontier common shareholders | $ 191 | |
Basic and diluted net income per share attributable to Frontier common shareholders | $ 0.19 |
Acquisitions (Acqusition And In
Acquisitions (Acqusition And Integration Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||||||||
Acquisition costs | $ 23 | $ 45 | $ 15 | ||||||||
Integration costs | 413 | 191 | 127 | ||||||||
Acquisition and integration costs | $ 49 | $ 122 | $ 127 | $ 138 | $ 86 | $ 58 | $ 35 | $ 57 | 436 | 236 | 142 |
Verizon Transaction | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition costs | 23 | 44 | |||||||||
Integration costs | 412 | 152 | |||||||||
Connecticut Transaction | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition costs | 1 | 15 | |||||||||
Integration costs | $ 1 | $ 39 | $ 127 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable [Abstract] | |||
Provision for uncollectible amounts | $ 179 | $ 50 | $ 61 |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable [Abstract] | ||
Retail and Wholesale | $ 979 | $ 569 |
Other | 90 | 59 |
Less: Allowance for doubtful accounts | (131) | (57) |
Accounts receivable, net | $ 938 | $ 571 |
Accounts Receivable (Schedule O
Accounts Receivable (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for Doubtful Accounts, Beginning of Period | $ 57 | ||
Allowance for Doubtful Accounts, End of Period | 131 | $ 57 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for Doubtful Accounts, Beginning of Period | 57 | 72 | $ 71 |
Charged to Other Revenue | 164 | 67 | 61 |
Charged (Credited) to Switched and Nonswitched Revenue and Other Accounts | 15 | (17) | |
Write-offs, net of Recoveries | (105) | (65) | (60) |
Allowance for Doubtful Accounts, End of Period | $ 131 | $ 57 | $ 72 |
Property, Plant And Equipment53
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant And Equipment [Abstract] | ||
Capital Leased Assets, Gross | $ 154 | $ 43 |
Property, Plant, & Equipment (P
Property, Plant, & Equipment (Property, Pland And Equipment, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 25,541 | $ 17,801 |
Construction work in progress | 903 | 379 |
Less: Accumulated depreciation | (10,639) | (9,308) |
Property, plant and equipment, net | 14,902 | 8,493 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 235 | 151 |
Buildings and Leasehold Improvements Member | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 2,300 | 1,327 |
Estimated useful lives | 41 years | |
General Support Member | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,495 | 1,146 |
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 | $ 7,683 | 6,244 |
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 | $ 995 | 712 |
Estimated useful lives | 30 years | |
Cable and Wire Member | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 10,267 | 7,280 |
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 | $ 1,611 | 515 |
Estimated useful lives | 55 years | |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 52 | $ 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 |
Property, Plant, & Equipment (S
Property, Plant, & Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation [Abstract] | |||
Depreciation expense | $ 1,388 | $ 983 | $ 835 |
Goodwill And Other Intangible56
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 643 | $ 337 | $ 304 |
Estimated future amortization expense, year 1 | 663 | ||
Estimated future amortization expense, year 2 | 552 | ||
Estimated future amortization expense, year 3 | 439 | ||
Estimated future amortization expense, year 4 | 342 | ||
Estimated future amortization expense, year 5 | $ 251 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 8 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 12 years | ||
Customer Base [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Asset, Weighted-Average Period before Renewal or Extension | 7 years | ||
Royalty Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Asset, Weighted-Average Period before Renewal or Extension | 4 years |
Goodwill And Other Intangible57
Goodwill And Other Intangibles (Schedule Of Goodwill Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 7,166 | $ 7,205 |
Goodwill, Ending Balance | 9,674 | 7,166 |
Connecticut Transaction | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 815 | |
Goodwill, Purchase Accounting Adjustments | (53) | |
Goodwill, Ending Balance | 815 | |
Other Acquisitions [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Acquired During the Period | $ 14 | |
Verizon Transaction | ||
Goodwill [Line Items] | ||
Goodwill, Acquired During the Period | 2,508 | |
Goodwill, Ending Balance | $ 2,508 |
Goodwill And Other Intangible58
Goodwill And Other Intangibles (Components Of Other Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,282 | $ 3,120 |
Accumulated Amortization | (2,620) | (1,977) |
Net Carrying Amount | 2,662 | 1,143 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,088 | 2,998 |
Accumulated Amortization | (2,604) | (1,977) |
Net Carrying Amount | 2,484 | 1,021 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 122 | 122 |
Net Carrying Amount | 122 | $ 122 |
Royalty Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 72 | |
Accumulated Amortization | (16) | |
Net Carrying Amount | $ 56 |
Goodwill And Other Intangible59
Goodwill And Other Intangibles (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Other Intangibles [Abstract] | |||
Amortization expense | $ 643 | $ 337 | $ 304 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Feb. 27, 2017 | Jun. 30, 2016 | Apr. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Aug. 12, 2015 |
Debt Instrument [Line Items] | ||||||||
Loss on debt exchanges | $ (7,000,000) | |||||||
Issue price expressed as a percentage of principal amount (in hundredths) | 100.00% | |||||||
Proceeds from debt, net of issuance costs | $ 1,519,000,000 | |||||||
Long Term Debt Assumed | 600,000,000 | |||||||
Financing obligation for contribution of real property to pension plan | 15,000,000 | $ 15,000,000 | ||||||
Fair value of property contributed to plan | 15,000,000 | |||||||
Pension Building Contribution Aggregate Annual Rent | $ 2,000,000 | |||||||
Lease term of contributed property | 15 years | |||||||
Other liabilities | $ 372,000,000 | $ 240,000,000 | ||||||
Sale and leaseback term, minimum (in years) | 12 years | |||||||
Sale and leaseback term, maximum (in years) | 23 years | |||||||
Capital Lease Term, minimum years | 1 year | |||||||
Capital Lease Term, maximum years | 7 years | |||||||
Secured equipment financing | 3,000,000 | $ 11,000,000 | ||||||
2016 Pension Real Estate Contributions [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financing obligation for contribution of real property to pension plan | $ 15,000,000 | |||||||
Senior Note Due 4/15/2017 [Member] | Exchangeable Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Conversion, Original Debt, Amount | 397,000,000 | |||||||
Loss on debt exchanges | $ 7,000,000 | |||||||
Interest Rate | 8.25% | |||||||
Senior Note Due 4/15/2020 [Member] | Exchangeable Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Conversion, Converted Instrument, Amount | $ 147,000,000 | |||||||
Interest Rate | 8.50% | |||||||
Senior Note Due 9/15/2020 [Member] | Exchangeable Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Conversion, Converted Instrument, Amount | $ 66,000,000 | |||||||
Interest Rate | 8.875% | |||||||
Senior Note Due 9/15/2022 [Member] | Exchangeable Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Conversion, Converted Instrument, Amount | $ 188,000,000 | |||||||
Interest Rate | 10.50% | |||||||
Secured Equipment Financing [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.00% | |||||||
Secured equipment financing term | 4 years | |||||||
Verizon Bridge Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 10,000,000 | 184,000,000 | ||||||
Accrued financing liabilities | $ 184,000,000 | |||||||
Verizon Transaction | ||||||||
Debt Instrument [Line Items] | ||||||||
Long Term Debt Assumed | $ 600,000,000 | |||||||
Verizon Transaction | Subsidiary Senior Note Due 5/15/2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 6.75% | |||||||
Long Term Debt Assumed | $ 200,000,000 | |||||||
Verizon Transaction | Subsidiary Senior Note Due 2/1/2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 6.86% | |||||||
Long Term Debt Assumed | $ 300,000,000 | |||||||
Verizon Transaction | Subsidiary Senior Note Due 11/15/2031 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.50% | |||||||
Long Term Debt Assumed | $ 100,000,000 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2017 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 8.25% | 8.25% | ||||||
Debt instrument, maturity date | Apr. 15, 2017 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
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] | ||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||
Interest Rate | 8.875% | 8.875% | ||||||
Debt instrument, maturity date | Sep. 15, 2020 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
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] | ||||||||
Debt instrument, face amount | $ 775,000,000 | |||||||
Interest Rate | 6.25% | 6.25% | ||||||
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% | 10.50% | ||||||
Debt instrument, maturity date | Sep. 15, 2022 | |||||||
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% | ||||||
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% | 11.00% | ||||||
Debt instrument, maturity date | Sep. 15, 2025 | |||||||
Senior Unsecured Debt [Member] | Verizon Transaction | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 6,600,000,000 | $ 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 | |||||||
Debt instrument, maturity date | Oct. 24, 2019 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | $ 9,000,000 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | $ 9,000,000 | |||||||
Interest Rate Margin | 3.375% | |||||||
CoBank Term Loan 2016 Member | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 12, 2021 | |||||||
Long-term Line of Credit | $ 315,000,000 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | 8,000,000 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | 8,000,000 | |||||||
Line of credit facility, current borrowings | $ 315,000,000 | |||||||
2015 JP Morgan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Mar. 31, 2021 | |||||||
Line of credit facility maximum borrowing capacity | $ 1,625,000,000 | $ 1,500,000,000 | ||||||
Long-term Line of Credit | 1,550,000,000 | $ 75,000,000 | ||||||
Repayment of the outstanding principal balance, quarterly installments amount | $ 20,000,000 | |||||||
Repayment of the outstanding principal balance, quarterly installments amount | $ 20,000,000 | |||||||
Line Of Credit Facility Increased Periodic Payment Principal | 41,000,000 | |||||||
Line of credit facility, current borrowings | $ 1,550,000,000 | 75,000,000 | ||||||
2017 JP Morgan Credit Agreement [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Permitted Leverage Ratio - Initial Covenant Term | 5.25% | |||||||
Line of Credit Facility, Maximum Permitted Leverage Ratio - 2nd Covenant Term | 5.00% | |||||||
Line of Credit Facility, Maximum Permitted Leverage Ratio - 3rd Covenant Term | 4.75% | |||||||
Line of Credit Facility, Maximum Permitted Leverage Ratio - 4th Covenant Term | 4.50% | |||||||
Line of credit facility maximum borrowing capacity | $ 850,000,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility maximum borrowing capacity | 750,000,000 | |||||||
Long-term Line of Credit | 0 | |||||||
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] | 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] | CoBank Term Loan 2016 Member | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.875% | |||||||
Minimum [Member] | CoBank Term Loan 2016 Member | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 1.875% | |||||||
Minimum [Member] | 2015 JP Morgan Credit Agreement [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.75% | |||||||
Minimum [Member] | 2015 JP Morgan Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 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] | 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] | CoBank Term Loan 2016 Member | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 2.875% | |||||||
Maximum [Member] | CoBank Term Loan 2016 Member | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 3.875% | |||||||
Maximum [Member] | 2015 JP Morgan Credit Agreement [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 1.75% | |||||||
Maximum [Member] | 2015 JP Morgan Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 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% |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | $ 16,086 | |||
Payments and Retirements | (849) | |||
New Borrowings | 2,341 | |||
Debt Assumed | 600 | |||
Long-term debt, ending balance | (16,086) | $ (18,178) | $ (16,086) | |
Less: Debt Issuance Cost | (209) | (196) | ||
Less: Debt Discount/Premium | (46) | 2 | ||
Less: Current Portion | (363) | (384) | ||
Principal Outstanding | $ 17,560 | 15,508 | ||
Weighted average interest rate | [1] | 8.55% | ||
Senior and Subsidiary Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 16,055 | |||
Payments and Retirements | (419) | |||
New Borrowings | 401 | |||
Debt Assumed | 500 | |||
Relcassifications | (637) | |||
Long-term debt, ending balance | (16,055) | $ (15,900) | (16,055) | |
Weighted average interest rate | [1] | 9.18% | ||
Senior Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments and Retirements | (426) | |||
New Borrowings | 1,940 | |||
Relcassifications | 637 | |||
Long-term debt, ending balance | $ (2,151) | |||
Weighted average interest rate | [1] | 3.89% | ||
Secured Subsidiary Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Assumed | 100 | |||
Long-term debt, ending balance | $ (100) | |||
Weighted average interest rate | [1] | 8.50% | ||
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 23 | |||
Payments and Retirements | (4) | |||
Long-term debt, ending balance | (23) | $ (19) | (23) | |
Weighted average interest rate | [1] | 4.50% | ||
Rural Utilities Service Loan Contracts [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 8 | |||
Long-term debt, ending balance | $ (8) | $ (8) | $ (8) | |
Weighted average interest rate | [1] | 6.15% | ||
[1] | Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at December 31, 2016 represent a weighted average of multiple issuances. |
Long-Term Debt (Senior Unsecure
Long-Term Debt (Senior Unsecured Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 18,178 | $ 16,086 | |
Senior Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 15,150 | 15,146 | |
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Apr. 15, 2017 | ||
Principal Outstanding | $ 210 | $ 607 | |
Interest Rate | 8.25% | 8.25% | |
Senior Unsecured Debt [Member] | Senior Note Due 10/1/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 1, 2018 | ||
Principal Outstanding | $ 583 | $ 583 | |
Interest Rate | 8.125% | 8.125% | |
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Mar. 15, 2019 | ||
Principal Outstanding | $ 434 | $ 434 | |
Interest Rate | 7.125% | 7.125% | |
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Apr. 15, 2020 | ||
Principal Outstanding | $ 1,169 | $ 1,022 | |
Interest Rate | 8.50% | 8.50% | |
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Sep. 15, 2020 | ||
Principal Outstanding | $ 1,066 | $ 1,000 | |
Interest Rate | 8.875% | 8.875% | |
Senior Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jul. 1, 2021 | ||
Principal Outstanding | $ 500 | $ 500 | |
Interest Rate | 9.25% | 9.25% | |
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Sep. 15, 2021 | ||
Principal Outstanding | $ 775 | $ 775 | |
Interest Rate | 6.25% | 6.25% | |
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Apr. 15, 2022 | ||
Principal Outstanding | $ 500 | $ 500 | |
Interest Rate | 8.75% | 8.75% | |
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Sep. 15, 2022 | ||
Principal Outstanding | $ 2,188 | $ 2,000 | |
Interest Rate | 10.50% | 10.50% | |
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jan. 15, 2023 | ||
Principal Outstanding | $ 850 | $ 850 | |
Interest Rate | 7.125% | 7.125% | |
Senior Unsecured Debt [Member] | Senior Note Due 4/15/2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Apr. 15, 2024 | ||
Principal Outstanding | $ 750 | $ 750 | |
Interest Rate | 7.625% | 7.625% | |
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jan. 15, 2025 | ||
Principal Outstanding | $ 775 | $ 775 | |
Interest Rate | 6.875% | 6.875% | |
Senior Unsecured Debt [Member] | Senior Note Due 9/15/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Sep. 15, 2025 | ||
Principal Outstanding | $ 3,600 | $ 3,600 | |
Interest Rate | 11.00% | 11.00% | |
Senior Unsecured Debt [Member] | Senior Note Due 11/1/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Nov. 1, 2025 | ||
Principal Outstanding | $ 138 | $ 138 | |
Interest Rate | 7.00% | 7.00% | |
Senior Unsecured Debt [Member] | Senior Note Due 8/15/2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Aug. 15, 2026 | ||
Principal Outstanding | $ 2 | $ 2 | |
Interest Rate | 6.80% | 6.80% | |
Senior Unsecured Debt [Member] | Senior Note Due 1/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jan. 15, 2027 | ||
Principal Outstanding | $ 346 | $ 346 | |
Interest Rate | 7.875% | 7.875% | |
Senior Unsecured Debt [Member] | Senior Note Due 8/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Aug. 15, 2031 | ||
Principal Outstanding | $ 945 | $ 945 | |
Interest Rate | 9.00% | 9.00% | |
Senior Unsecured Debt [Member] | Senior Note Due 10/1/2034 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 1, 2034 | ||
Principal Outstanding | $ 1 | $ 1 | |
Interest Rate | 7.68% | 7.68% | |
Senior Unsecured Debt [Member] | Senior Note Due 7/1/2035 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jul. 1, 2035 | ||
Principal Outstanding | $ 125 | $ 125 | |
Interest Rate | 7.45% | 7.45% | |
Senior Unsecured Debt [Member] | Senior Note Due 10/1/2046 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 1, 2046 | ||
Principal Outstanding | $ 193 | $ 193 | |
Interest Rate | 7.05% | 7.05% | |
Senior Notes And Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 2,151 | $ 659 | |
Senior Notes And Debentures [Member] | Senior Secured Debt Due 10/14/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | [1] | Oct. 14, 2016 | |
Principal Outstanding | [1] | $ 344 | |
Interest Rate | [1] | 2.805% | |
Senior Notes And Debentures [Member] | Senior Secured Debt Due 10/24/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | [2] | Oct. 24, 2019 | |
Principal Outstanding | [2] | $ 280 | $ 315 |
Interest Rate | [2] | 4.145% | 3.805% |
Senior Notes And Debentures [Member] | Senior Secured Debt Due 3/31/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | [3] | Mar. 31, 2021 | |
Principal Outstanding | [3] | $ 1,564 | |
Interest Rate | [3] | 3.27% | |
Senior Notes And Debentures [Member] | Senir Secured Debt Due 10/12/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | [4] | Oct. 12, 2021 | |
Principal Outstanding | [4] | $ 307 | |
Interest Rate | [4] | 4.145% | |
Subsidiary Senior Note [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 850 | $ 250 | |
Subsidiary Senior Note [Member] | Subsidiary Senior Note Due 5/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | May 15, 2027 | ||
Principal Outstanding | $ 200 | ||
Interest Rate | 6.75% | ||
Subsidiary Senior Note [Member] | Subsidiary Senior Note Due 2/1/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Feb. 1, 2028 | ||
Principal Outstanding | $ 300 | ||
Interest Rate | 6.86% | ||
Subsidiary Senior Note [Member] | Subsidiary Senior Note Due 2/15/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Feb. 15, 2028 | ||
Principal Outstanding | $ 200 | $ 200 | |
Interest Rate | 6.73% | 6.73% | |
Subsidiary Senior Note [Member] | Subsidiary Senior Note Due 10/15/2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 15, 2029 | ||
Principal Outstanding | $ 50 | $ 50 | |
Interest Rate | 8.40% | 8.40% | |
Subsidiary Senior Note [Member] | Subsidiary Senior Note Due 11/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Nov. 15, 2031 | ||
Principal Outstanding | $ 100 | ||
Interest Rate | 8.50% | ||
Senior Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 18,151 | $ 16,055 | |
Weighted average interest rate | [5] | 8.30% | 8.74% |
[1] | Represents borrowings under the 2011 CoBank Credit Agreement, as defined below, that became secured as of April 1, 2016. | ||
[2] | Represents borrowings under the 2014 CoBank Credit Agreement, as defined below, that became secured as of April 1, 2016. | ||
[3] | Represents borrowings under the 2015 Credit Agreement, as defined below. | ||
[4] | Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. | ||
[5] | 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, 2016USD ($) |
Long-Term Debt [Abstract] | |
Principal Payments 2017 | $ 363 |
Principal Payments 2018 | 733 |
Principal Payments 2019 | 818 |
Principal Payments 2020 | 2,429 |
Principal Payments 2021 | 2,554 |
Principal Payments Thereafter | $ 11,281 |
Long-Term Debt (Schedule Of Fut
Long-Term Debt (Schedule Of Future Minimum Lease Obligations) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Finance Lease Obligations, Future Minimum Payments [Abstract] | |
2,017 | $ 9 |
2,018 | 9 |
2,019 | 9 |
2,020 | 9 |
2,021 | 9 |
Thereafter | 60 |
Total future payments | 105 |
Less: Amounts representing interest | (57) |
Present value of minimum lease payments | 48 |
Capital Lease Obligations, Future Minimum Payments [Abstract] | |
2,017 | 39 |
2,018 | 37 |
2,019 | 26 |
2,020 | 15 |
2,021 | 9 |
Thereafter | 21 |
Total future payments | 147 |
Less: Amounts representing interest | (18) |
Present value of minimum lease payments | $ 129 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Costs [Abstract] | |||||||
Restructuring Reserve | $ 47 | $ 1 | $ 47 | $ 1 | |||
Severance Costs | 65 | ||||||
Defined Benefit Plan, Special termination Benefits cost | 26 | ||||||
Restructuring Charges | $ 80 | $ 11 | $ 1 | $ 1 | $ 91 | $ 2 | $ 2 |
Restructuring Costs (Rollforwar
Restructuring Costs (Rollforward of Restructuring) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Costs [Abstract] | |
Restructuring Reserve, Beginning Balance | $ 1 |
Severance Costs | 65 |
Cash payments during the period | (19) |
Restructuring Reserve, Ending Balance | $ 47 |
Investment and Other Income, 67
Investment and Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment and Other Income, Net [Abstract] | |||
Interest and dividend income | $ 13 | $ 7 | $ 2 |
Loss on debt exchanges | (7) | ||
Gain on sale of Fairmount Cellular LLC | 25 | ||
Gain on sale of 700 MHz spectrum | 12 | ||
Gain on expiration/settlement of customer advances | 13 | ||
All other, net | 1 | ||
Investment and other income, net | $ 20 | $ 7 | $ 39 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | 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 | 1,750,000,000 |
Preferred Stock, Shares Authorized | 50,000,000 | 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% | 11.125% | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Adjustments to Additional Paid in Capital, Preferred Dividends in Excess of Retained Earnings | $ 214 | $ 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 | $ 214 | 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. 11, 2016shares | Feb. 25, 2015shares | Feb. 17, 2014shares | Dec. 31, 2016USD ($)ShareBasedCompensationPlanentity$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / 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 | 5 | |||||
Shares authorized for grant under the plans (in shares) | 20,000,000 | |||||
Shares available for grant under the plan (in shares) | 7,324,000 | |||||
EIP Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 0 | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expense recognized during the period | $ | $ 6 | $ 7 | $ 4 | |||
Shares granted (in shares) | 1,669,000 | 665,000 | 1,028,000 | 1,669,000 | 738,000 | 1,037,000 |
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 | $ | $ 18 | $ 20 | $ 16 | |||
Shares granted (in shares) | 5,936,000 | 2,815,000 | 4,314,000 | |||
Restricted Stock | ||||||
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ | $ 26 | |||||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 1 year 3 months 18 days | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ | $ 0 | |||||
Non Employee Directors Compensation Plans | ||||||
Exercisable at end of period (in shares) | 40,000 | 50,000 | 83,000 | |||
Exercisable at end of period (in dollars per share) | $ / shares | $ 8.81 | $ 13.40 | $ 13.23 | |||
Non-Employee Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expense recognized during the period | $ | $ 0 | $ (1) | $ 4 | |||
Non Employee Directors Compensation Plans | ||||||
Plan units earned during the period (in shares) | 444,277 | 334,188 | 237,607 | |||
Number of directors participating in the plan during the period | entity | 10 | |||||
Cash compensation | $ | $ 1 | $ 1 | $ 1 |
Stock Plans (LTIP Target Perfor
Stock Plans (LTIP Target Performance Shares) (Details) - Performance Shares [Member] - shares | Feb. 11, 2016 | Feb. 25, 2015 | Feb. 17, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Balance at beginning of period (in shares) | 1,749,000 | 2,525,000 | 2,682,000 | 1,749,000 | ||
Shares granted (in shares) | 1,669,000 | 665,000 | 1,028,000 | 1,669,000 | 738,000 | 1,037,000 |
Shares vested (in shares) | (887,000) | (743,000) | ||||
Shares forfeited (in shares) | (448,000) | (152,000) | (104,000) | |||
Balance at end of period (in shares) | 2,859,000 | 2,525,000 | 2,682,000 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance at beginning of period (in shares) | 7,048 | 7,807 | 6,234 |
Shares granted (in shares) | 5,936 | 2,815 | 4,314 |
Shares vested (in shares) | (3,720) | (3,215) | (2,372) |
Shares forfeited (in shares) | (908) | (359) | (369) |
Balance at end of period (in shares) | 8,356 | 7,048 | 7,807 |
Balance at beginning of period (in dollars per shares) | $ 5.93 | $ 4.75 | $ 4.80 |
Restricted stock granted (in dollars per shares) | 4.36 | 7.92 | 4.91 |
Restricted stock vested (in dollars per shares) | 5.26 | 4.89 | 5.22 |
Restricted stock forfeited (in dollars per shares) | 5.11 | 5.10 | 4.55 |
Balance at end of period (in dollars per shares) | $ 5.20 | $ 5.93 | $ 4.75 |
Balance at beginning of period | $ 33 | $ 52 | $ 29 |
Restricted stock granted | 20 | 13 | 29 |
Restricted stock vested | 13 | 15 | 16 |
Balance at end of period | $ 28 | $ 33 | $ 52 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Adjustment of deferred tax balances | $ 36 | $ 3 | $ 23 |
Domestic production activities deduction | 12 | 14 | |
Federal research and development credits | 6 | 5 | 5 |
Deferred Tax Assets, Valuation Allowance | 271 | 177 | |
Tax reserve adjustment | 11 | ||
Non-deductible transaction costs | $ 2 | ||
Effect of expiration of statute of limitations during next twelve months | 8 | ||
Gross tax liability for tax positions that may not be sustained under a more likely than not threshold | 17 | ||
Additional interest recognized on tax liability | 1 | ||
Accrued interest on tax liability | 1 | 1 | |
Deferred Tax Assets, Net, Current | 55 | $ 50 | |
Proceeds from Income Tax Refunds | 120 | ||
Research Tax Credit Carryforward [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Credit Carryforward, Amount | 13 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Credit Carryforward, Amount | 19 | ||
Federal net operating loss carryforward | 6,700 | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal net operating loss carryforward | $ 1,000 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | (0.10%) | 8.70% | 1.60% |
Tax reserve adjustment | 0.60% | (0.30%) | 6.90% |
Domestic production activities deduction | (1.90%) | (8.70%) | |
Changes in certain deferred tax balances | 5.80% | 0.80% | (14.10%) |
Federal research and development credit | 1.00% | 1.50% | (3.30%) |
Non-deductible transaction costs | 0.40% | 1.00% | |
All other, net | (0.20%) | (0.30%) | 0.30% |
Effective tax rate | 40.20% | 45.80% | 18.70% |
Income Taxes (Components Of Net
Income Taxes (Components Of Net Deferred Income Tax Liability (Asset) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax liabilities [Abstract] | ||
Property, plant and equipment basis differences | $ 2,751 | $ 2,401 |
Intangibles | 878 | 960 |
Deferred Revenue/Expense | 14 | |
Other, net | 12 | 15 |
Gross deferred income tax liability | 3,655 | 3,376 |
Deferred income tax assets [Abstract] | ||
Pension liability | 273 | 222 |
Tax operating loss carryforward | 687 | 295 |
Employee benefits | 255 | 262 |
Accrued expenses | 44 | 50 |
Capital Lease Obligations | 75 | |
Tax Credits | 30 | |
Allowance for doubtful accounts | 44 | 10 |
Other, net | 2 | 48 |
Gross deferred income tax asset | 1,410 | 887 |
Less: Valuation allowance | (271) | (177) |
Net deferred income tax asset | 1,139 | 710 |
Net deferred income tax liability | $ 2,516 | $ 2,666 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current [Abstract] | |||
Federal | $ (52) | $ 8 | $ 98 |
State | 7 | (6) | 10 |
Total current | (45) | 2 | 108 |
Deferred [Abstract] | |||
Federal | (145) | (126) | (34) |
State | (60) | (41) | (44) |
Total deferred | (205) | (167) | (78) |
Income Tax Expense (Benefit), Total | (250) | (165) | 30 |
Income taxes charged (credited) to shareholders' equity of Frontier [Abstract] | |||
Utilization of the benefits arising from restricted stock | (5) | ||
Deferred income taxes (benefits) arising from the recognition of additional pension/OPEB liability | (21) | 36 | (90) |
Total income taxes charged (credited) to equity of Frontier | (26) | 36 | (90) |
Total income taxes | $ (276) | $ (129) | $ (60) |
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, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||
Unrecognized tax benefits - beginning of year | $ 19 | $ 19 |
Gross increases - prior year tax positions | 3 | |
Gross increases - current year tax positions | 3 | 2 |
Gross Decreases - FIN 48 Liability Release | (9) | |
Gross decreases - expired statute of limitations | (2) | |
Unrecognized tax benefits - end of year | $ 16 | $ 19 |
Net Income (Loss) Per Common 77
Net Income (Loss) Per Common Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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) | 40,000 | 50,000 | 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) | 1,881,460 | 1,437,183 | 1,102,995 |
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 | 19,250,000 |
Net Income (Loss) Per Common 78
Net Income (Loss) Per Common 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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income (Loss) Per Common Share [Abstract] | |||||||||||
Net income (loss) attributable to Frontier common shareholders | $ (133) | $ (134) | $ (80) | $ (240) | $ (156) | $ (81) | $ (28) | $ (51) | $ (587) | $ (316) | $ 133 |
Less: Dividends paid on unvested restricted stock awards | (3) | (3) | (3) | ||||||||
Total basic and diluted net income (loss) attributable to Frontier common shareholders | $ (590) | $ (319) | $ 130 | ||||||||
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 1,172,131 | 1,091,798 | 1,001,812 | ||||||||
Less: Weighted average unvested restricted stock awards (in shares) | (8,032) | (7,192) | (7,394) | ||||||||
Total weighted average shares outstanding - basic (in shares) | 1,164,099 | 1,084,606 | 994,418 | ||||||||
Basic net income (loss) per share attributable to Frontier common shareholders | $ (0.12) | $ (0.12) | $ (0.07) | $ (0.21) | $ (0.14) | $ (0.07) | $ (0.03) | $ (0.05) | $ (0.51) | $ (0.29) | $ 0.13 |
Effect of dilutive shares (in shares) | 3,744 | ||||||||||
Total weighted average shares outstanding - diluted (in shares) | 1,164,099 | 1,084,606 | 998,162 | ||||||||
Diluted net income (loss) per share attributable to Frontier common shareholders | $ (0.51) | $ (0.29) | $ 0.13 |
Comprehensive Income (Loss) (Na
Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | |
Comprehensive Income (Loss) [Abstract] | |||
Discount rate - used at year end to value obligation (in hundredths) | 4.00% | 4.50% | |
Other comprehensive income (loss) before reclassifications | $ 105 |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss, Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | $ 5,614 | $ 3,658 | $ 4,055 |
Other comprehensive income (loss) before reclassifications | (105) | ||
Balance, ending | 4,519 | 5,614 | 3,658 |
Defined Benefit Plans [Member] | Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (584) | (532) | (412) |
Other comprehensive income (loss) before reclassifications | (103) | (81) | (140) |
Amounts reclassified from accumulated other comprehensive income (loss) | 40 | 29 | 20 |
Net current-period other comprehensive income (loss) | (63) | (52) | (120) |
Balance, ending | (647) | (584) | (532) |
Defined Benefit Plans [Member] | Postretirement Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | 20 | (119) | (5) |
Other comprehensive income (loss) before reclassifications | 17 | 136 | (113) |
Amounts reclassified from accumulated other comprehensive income (loss) | (8) | 3 | (1) |
Net current-period other comprehensive income (loss) | 9 | 139 | (114) |
Balance, ending | 29 | 20 | (119) |
Defined Benefit Plans [Member] | Deferred Taxes On Pension And OPEB Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | 211 | 247 | 156 |
Other comprehensive income (loss) before reclassifications | 32 | (24) | 98 |
Amounts reclassified from accumulated other comprehensive income (loss) | (12) | (12) | (7) |
Net current-period other comprehensive income (loss) | 20 | (36) | 91 |
Balance, ending | 231 | 211 | 247 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (353) | (404) | (261) |
Other comprehensive income (loss) before reclassifications | (54) | 31 | (155) |
Amounts reclassified from accumulated other comprehensive income (loss) | 20 | 20 | 12 |
Net current-period other comprehensive income (loss) | (34) | 51 | (143) |
Balance, ending | $ (387) | $ (353) | $ (404) |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | $ (623) | $ (361) | $ 163 | |
Tax impact | 250 | 165 | (30) | |
Net income (loss) | (373) | (196) | 133 | |
Pension Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Actuarial gains (losses) | [1],[2] | (40) | (29) | (20) |
Income before income taxes | [1],[2] | (40) | (29) | (20) |
Tax impact | [1],[2] | 15 | 11 | 7 |
Net income (loss) | [1],[2] | (25) | (18) | (13) |
Postretirement Costs [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior service (cost) credit recognized during year | [1],[2] | 9 | 5 | 4 |
Actuarial gains (losses) | [1],[2] | (1) | (8) | (3) |
Income before income taxes | [1],[2] | 8 | (3) | 1 |
Tax impact | [1],[2] | (3) | 1 | |
Net income (loss) | [1],[2] | $ 5 | $ (2) | $ 1 |
[1] | Amounts in parentheses indicate losses. | |||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 17 - Retirement Plans for additional details). |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Information [Abstract] | |
Number of reportable segments | 1 |
Number of operating regions | 7 |
Quarterly Financial Data (Narra
Quarterly Financial Data (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Restructuring Charges | $ 80 | $ 11 | $ 1 | $ 1 | $ 91 | $ 2 | $ 2 | ||||
Restructuring Charges, Net of Tax | $ 52 | $ 7 | |||||||||
Restructuring Charges, After tax effect on net income | $ 0.04 | $ 0.01 | |||||||||
Acquisition and integration costs | $ 49 | $ 122 | $ 127 | $ 138 | 86 | 58 | $ 35 | $ 57 | $ 436 | $ 236 | $ 142 |
Acquisition and integration costs, after tax | $ 48 | $ 74 | $ 76 | $ 85 | $ 47 | $ 27 | $ 23 | $ 35 | |||
Acquisition and integration costs, after tax effect on net income (in dollars per share) | $ 0.04 | $ 0.06 | $ 0.07 | $ 0.07 | $ 0.04 | $ 0.02 | $ 0.02 | $ 0.04 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule Of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $ 2,409 | $ 2,524 | $ 2,608 | $ 1,355 | $ 1,413 | $ 1,424 | $ 1,368 | $ 1,371 | $ 8,896 | $ 5,576 | $ 4,772 |
Operating income | 255 | 264 | 311 | 58 | 182 | 207 | 193 | 163 | 888 | 745 | 820 |
Net income (loss) attributable to Frontier common shareholders | $ (133) | $ (134) | $ (80) | $ (240) | $ (156) | $ (81) | $ (28) | $ (51) | $ (587) | $ (316) | $ 133 |
Basic net income (loss) per share attributable to Frontier common shareholders | $ (0.12) | $ (0.12) | $ (0.07) | $ (0.21) | $ (0.14) | $ (0.07) | $ (0.03) | $ (0.05) | $ (0.51) | $ (0.29) | $ 0.13 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 01, 2016 | |
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% | 4.00% | ||
Expected long-term rate of return on plan assets (in hundredths) | 7.50% | 7.75% | 7.75% | |
Expected Long Term Rate Of Return On Plan Assets In Future Year In Hundreths | 7.50 | |||
Expected amortization of unrecognized loss | $ 35 | |||
Capitalization of pension and OPEB expense related to engineering and plant construction | 25 | $ 20 | $ 15 | |
Pension/OPEB costs | 79 | 10 | (18) | |
Contribution of Property | $ 15 | 15 | ||
Defined Benefit Plan, Lease term of contributed property | 15 years | |||
Pension Building Contribution Aggregate Annual Rent | $ 2 | |||
Assets transferred to plan as a result of acquisition | 1,108 | |||
Accumulated benefit obligation | 3,363 | 2,048 | ||
401(k) savings plan employer contributions | $ 48 | $ 28 | $ 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) | 4.10% | 4.50% | 4.10% | |
Expected long-term rate of return on plan assets (in hundredths) | 7.50% | 7.75% | 7.75% | |
Contributions to plans | $ 28 | $ 62 | $ 83 | |
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 | 0 | |||
Contributions to plans | $ 18 | $ 20 | ||
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 | $ 1 | |||
Effect on postretirement benefit obligation, 1 percentage point increase | 20 | |||
Effect on total of service and interest cost components, 1 percentage point decrease | (1) | |||
Effect on postretirement benefit obligation, 1 percentage point decrease | $ (19) | |||
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) | 4.10% | 4.50% | 4.10% | |
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) | 4.30% | 4.70% | 4.20% | |
2016 Pension Real Estate Contributions [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contribution of Property | $ 15 | |||
Cash [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer Cash Contributions | $ 13 | |||
Fixed Income Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target asset allocation | 40.00% | |||
Equity Securities [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target asset allocation | 60.00% |
Retirement Plans (Projected Ben
Retirement Plans (Projected Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 1,572 | ||
Fair value of plan assets acquired | 1,108 | ||
Fair value of plan assets at end of year | 2,766 | $ 1,572 | |
Amounts recognized in the consolidated balance sheet [Abstract] | |||
Pension and other postretirement benefits - current | (23) | (33) | |
Pension and other postretirement benefits - noncurrent | (1,602) | (1,163) | |
Pension Benefits [Member] | |||
Change in projected benefit obligation (PBO) [Roll Forward] | |||
PBO at beginning of year | 2,142 | 2,210 | |
Service cost | 88 | 55 | $ 42 |
Interest cost | 122 | 88 | 80 |
Actuarial (gain)/loss | 137 | (88) | |
Benefits paid | (155) | (128) | |
Connecticut Acquisition Transfer | 5 | ||
CTF Acquisition PBO | 1,108 | ||
Defined Benefit Plan, Special Termination Benefits | 23 | ||
PBO at end of year | 3,465 | 2,142 | 2,210 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1,572 | 1,673 | |
Actual return on plan assets | 201 | (40) | |
Employer contributions | 28 | 62 | 83 |
Benefits paid | (155) | (128) | |
Fair value of plan assets at end of year | 2,766 | 1,572 | 1,673 |
Funded status | (699) | (570) | |
Amounts recognized in the consolidated balance sheet [Abstract] | |||
Pension and other postretirement benefits - current | (9) | ||
Pension and other postretirement benefits - noncurrent | (699) | (561) | |
Accumulated other comprehensive (gain) loss | 647 | 584 | |
Pension Benefits [Member] | Verizon Transaction | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets acquired | 1,120 | ||
Pension Benefits [Member] | Connecticut Transaction | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets acquired | 5 | ||
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |||
Change in projected benefit obligation (PBO) [Roll Forward] | |||
PBO at beginning of year | 626 | 727 | |
Service cost | 19 | 19 | 11 |
Interest cost | 37 | 30 | 22 |
Actuarial (gain)/loss | (18) | (115) | |
Benefits paid | (23) | (25) | |
Connecticut Acquisition Transfer | 5 | ||
CTF Acquisition PBO | 276 | ||
Defined Benefit Plan, Special Termination Benefits | 3 | ||
Plan participants' contributions | 5 | 5 | |
Plan change | (20) | ||
PBO at end of year | 925 | 626 | $ 727 |
Change in plan assets [Roll Forward] | |||
Plan participant's contributions | 5 | 5 | |
Employer contributions | 18 | 20 | |
Benefits paid | (23) | (25) | |
Funded status | (925) | (626) | |
Amounts recognized in the consolidated balance sheet [Abstract] | |||
Pension and other postretirement benefits - current | (23) | (24) | |
Pension and other postretirement benefits - noncurrent | (902) | (602) | |
Accumulated other comprehensive (gain) loss | $ (29) | $ (20) |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Special termination benefits | $ 26 | ||
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 88 | $ 55 | $ 42 |
Interest cost on projected benefit obligation | 122 | 88 | 80 |
Expected return on plan assets | (168) | (129) | (99) |
Amortization of unrecognized loss | 40 | 29 | 20 |
Net periodic benefit cost | 82 | 43 | 43 |
Special termination benefits | 23 | ||
Total Disclosed Benefit Cost | 105 | 43 | 43 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 19 | 19 | 11 |
Interest cost on projected benefit obligation | 37 | 30 | 22 |
Amortization of prior service cost/(credit) | (9) | (5) | (4) |
Amortization of unrecognized loss | 1 | 8 | 3 |
Net periodic benefit cost | 48 | 52 | 32 |
Special termination benefits | 3 | ||
Total Disclosed Benefit Cost | $ 51 | $ 52 | $ 32 |
Retirement Plans (Asset Allocat
Retirement Plans (Asset Allocations) (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 100.00% | 100.00% |
Equity Securities [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 50.00% | 47.00% |
Debt Securities [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 38.00% | 46.00% |
Alternative Investments [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 11.00% | 6.00% |
Cash and Cash Equivalents [Member] | ||
Asset category [Abstract] | ||
Weighted average asset allocation (in hundreths) | 1.00% | 1.00% |
Retirement Plans (Pension Expec
Retirement Plans (Pension Expected Benefit Payments) (Details) - Pension Benefits [Member] $ in Millions | Dec. 31, 2016USD ($) |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,017 | $ 375 |
2,018 | 308 |
2,019 | 293 |
2,020 | 281 |
2,021 | 271 |
2022 - 2026 | 1,224 |
Total | $ 2,752 |
Retirement Plans (Assumptions U
Retirement Plans (Assumptions Used) (Details) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 01, 2016 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Discount rate - used at year end to value obligation (in hundredths) | 4.50% | 4.00% | ||
Expected long-term rate of return on plan assets (in hundredths) | 7.50% | 7.75% | 7.75% | |
Pension Benefits [Member] | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Discount rate - used at year end to value obligation (in hundredths) | 4.10% | 4.50% | 4.10% | |
Discount rate - used to compute annual cost (in hundredths) | 4.50% | 4.10% | 4.90% | |
Expected long-term rate of return on plan assets (in hundredths) | 7.50% | 7.75% | 7.75% | |
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) | 4.30% | 4.70% | 4.20% | |
Discount rate - used to compute annual cost (in hundredths) | 4.70% | 4.20% | 5.20% | |
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) | 4.10% | 4.50% | 4.10% | |
Discount rate - used to compute annual cost (in hundredths) | 4.50% | 4.10% | 4.90% |
Retirement Plans (OPEB Expected
Retirement Plans (OPEB Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2016USD ($) |
OPEB, Gross Benefits [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,017 | $ 24 |
2,018 | 30 |
2,019 | 38 |
2,020 | 44 |
2,021 | 49 |
2022 - 2026 | 298 |
Total | 483 |
Medicare Part D Subsidy [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2022 - 2026 | 1 |
Total | 1 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,017 | 24 |
2,018 | 30 |
2,019 | 38 |
2,020 | 44 |
2,021 | 49 |
2022 - 2026 | 299 |
Total | $ 484 |
Retirement Plans (Amounts In AO
Retirement Plans (Amounts In AOCI Not Yet Recognized as Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Benefits [Member] | ||
Defined Benefit Plan [Abstract] | ||
Net actuarial loss | $ 647 | $ 584 |
Total | 647 | 584 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||
Defined Benefit Plan [Abstract] | ||
Net actuarial loss | 1 | 20 |
Prior service cost/(credit) | (30) | (40) |
Total | $ (29) | $ (20) |
Retirement Plans (Amounts Recog
Retirement Plans (Amounts Recognized as a Component of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension Benefits [Member] | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Accumulated other comprehensive (gain) loss at beginning of year | $ 584 | $ 532 | ||
Net actuarial gain (loss) recognized during year | [1],[2] | (40) | (29) | $ (20) |
Net actuarial loss (gain) occurring during year | 103 | 81 | ||
Net amount recognized in comprehensive income (loss) for the year | 63 | 52 | ||
Accumulated other comprehensive (gain) loss at end of year | 647 | 584 | 532 | |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Accumulated other comprehensive (gain) loss at beginning of year | (20) | 119 | ||
Net actuarial gain (loss) recognized during year | (1) | (8) | ||
Prior service (cost) credit recognized during year | 9 | 5 | ||
Net actuarial loss (gain) occurring during year | (17) | (136) | ||
Net amount recognized in comprehensive income (loss) for the year | (9) | (139) | ||
Accumulated other comprehensive (gain) loss at end of year | $ (29) | $ (20) | $ 119 | |
[1] | Amounts in parentheses indicate losses. | |||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 17 - Retirement Plans for additional details). |
Fair Value of Financial Instr94
Fair Value of Financial Instruments (Pension Plan Assets Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | $ 2,514 | $ 1,583 |
Receivable for plan assets of the CTF Operations | 258 | |
Interest and Dividends Receivable | 6 | 4 |
Due from Broker for Securities Sold | 27 | 21 |
Receivable Associated with Insurance Contract | 7 | 7 |
Due to Broker for Securities Purchased | (46) | (43) |
Total Plan Assets, at Fair Value | 2,766 | 1,572 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 863 | 250 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 1,533 | 1,241 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 118 | 92 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 42 | 23 |
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 as fair value | 42 | 23 |
U.S. Government Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 29 | 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 as fair value | 29 | 32 |
Corporate and Other Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 400 | 315 |
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 as fair value | 400 | 315 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 487 | 178 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 487 | 178 |
Commingled Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 1,104 | 894 |
Commingled Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 1,104 | 894 |
Interest in Registered Investment Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 334 | 49 |
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 as fair value | 334 | 49 |
Interest in Limited Partnerships and Limited Liability Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | 118 | 92 |
Interest in Limited Partnerships and Limited Liability Companies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments as fair value | $ 118 | $ 92 |
Fair Value of Financial Instr95
Fair Value of Financial Instruments (Changes In Fair Value Of Plan's Level 3 Assets) (Details) - Interest in Limited Partnerships and Limited Liability Companies [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance, beginning of year | $ 92 | $ 103 |
Realized gains | 7 | 8 |
Unrealized (losses) | 13 | (11) |
Purchases | 15 | |
Sales and distributions | (9) | (8) |
Balance, end of year | $ 118 | $ 92 |
Fair Value of Financial Instr96
Fair Value of Financial Instruments (Redemption Of The Plan's Level 3 Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
MS IFHF SVP LP Cayman [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liquidation Period (in years) | 4 years | |||
MS IFHF SVP LP Alpha [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liquidation Period (in years) | 4 years | |||
RII World Timberfund, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liquidation Period (in years) | 10 years | |||
Interest in Limited Partnerships and Limited Liability Companies [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 118 | $ 92 | $ 103 | |
Interest in Limited Partnerships and Limited Liability Companies [Member] | MS IFHF SVP LP Cayman [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 1 | ||
Redemption Frequency | [1] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | MS IFHF SVP LP Alpha [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 1 | ||
Redemption Frequency | [1] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | RII World Timberfund, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [2] | $ 6 | ||
Redemption Frequency | [2] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | E Casino Road, LLC (member) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 15 | |||
Redemption Frequency | Through liquidation of underlying investments | |||
Interest in Limited Partnerships and Limited Liability Companies [Member] | Comm Drive, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 9 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | CTE Drive, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 13 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | Oakbrook Parkway LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 25 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | West Jefferson, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 26 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | MacCorkle Ave SE, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 14 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | S Pike Road West, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 1 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | N US 131, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 1 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
Interest in Limited Partnerships and Limited Liability Companies [Member] | E Stockton Blvd, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [3] | $ 6 | ||
Redemption Frequency | [3] | Through liquidation of underlying investments | ||
[1] | 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. These instruments are subject to certain withdrawal restrictions. The Plan is in the process of liquidating its interest in the partnerships and distributions are expected to be made over the next four years. | |||
[2] | The fund's objective is to realize substantial long-term capital appreciation by investing in timberland properties primarily in South America and Australia. This investment is subject to certain withdrawal restrictions. | |||
[3] | The entity invests 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. |
Fair Value of Financial Instr97
Fair Value of Financial Instruments (Valuation Techniques Used to Measure the Fair Value of the Plan's Level 3 Investments) (Details) - Interest in Limited Partnerships and Limited Liability Companies [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 118 | $ 92 | $ 103 | |
E Casino Road, LLC (member) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 15 | |||
Capitalization rate | 7.00% | |||
Comm Drive, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 9 | ||
Capitalization rate | 7.75% | |||
CTE Drive, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 13 | ||
Capitalization rate | 9.00% | |||
Oakbrook Parkway LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 25 | ||
Capitalization rate | 7.75% | |||
West Jefferson, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 26 | ||
Capitalization rate | 8.50% | |||
MacCorkle Ave SE, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 14 | ||
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] | $ 1 | ||
Capitalization rate | 8.50% | |||
N US 131, LLC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 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 | [1] | $ 6 | ||
Capitalization rate | 7.50% | |||
[1] | The entity invests 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. |
Fair Value Of Financial Instr98
Fair Value Of Financial Instruments (Long Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 17,560 | $ 15,508 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 17,539 | $ 14,767 |
Commitments And Contingencies99
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)stateproperty | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Regulatory Commitments [Abstract] | |||
Number of households to be serviced under regulatory funded programs | property | 774,000 | ||
Number of states of operation | state | 29 | ||
Operating Leases [Abstract] | |||
Term Of Lease Arrangements Lower Range | 1 year | ||
Term Of Lease Arrangements Upper Range | 99 years | ||
Rental expense | $ 137,000,000 | $ 119,000,000 | $ 100,000,000 |
Loss Contingency, Estimate of Possible Loss | 100,000 | ||
CAF Phase II [Member] | |||
Regulatory Commitments [Abstract] | |||
Annual support offered by the Federal Communications Commission | 332,000,000 | ||
Verizon Transaction | CAF Phase II [Member] | |||
Regulatory Commitments [Abstract] | |||
Annual support offered by the Federal Communications Commission | $ 49,000,000 |
Commitments and Contingencie100
Commitments and Contingencies (Future Minimum Rental Commitments For All Long-Term Noncancelable Operating Leases) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments And Contingencies [Abstract] | |
2,017 | $ 91 |
2,018 | 18 |
2,019 | 18 |
2,020 | 23 |
2,021 | 21 |
Thereafter | 76 |
Total minimum lease payments | $ 247 |
Commitments and Contingencie101
Commitments and Contingencies (Future Payments For Obligations Under Noncancelable Long Distance Contracts And Service Agreements) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments And Contingencies [Abstract] | |
2,017 | $ 42 |
2,018 | 41 |
2,019 | 7 |
2,020 | 6 |
2,021 | 2 |
Thereafter | 10 |
Total | $ 108 |
Commitments and Contingencie102
Commitments and Contingencies (Outstanding Performance Letters Of Credit) (Details) - Letter of Credit [Member] $ in Millions | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | $ 125 |
CNA [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | 49 |
AIG Insurance [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | 75 |
Other Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit, amount outstanding | $ 1 |