Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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 Common Stock, Shares Outstanding | 80,138,000 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 201 | $ 362 |
Accounts receivable, less allowances of $99 and $69, respectively | 778 | 819 |
Contract acquisition costs | 91 | |
Prepaid expenses | 78 | 78 |
Income taxes and other current assets | 54 | 64 |
Total current assets | 1,202 | 1,323 |
Property, plant and equipment, net | 14,321 | 14,377 |
Goodwill | 7,024 | 7,024 |
Other intangibles, net | 1,903 | 2,063 |
Other assets | 228 | 97 |
Total assets | 24,678 | 24,884 |
Current liabilities: | ||
Long-term debt due within one year | 1,060 | 656 |
Accounts payable | 537 | 564 |
Advanced billings | 271 | 270 |
Accrued content costs | 105 | 102 |
Accrued other taxes | 156 | 156 |
Accrued interest | 167 | 401 |
Pension and other postretirement benefits | 29 | 29 |
Other current liabilities | 334 | 330 |
Total current liabilities | 2,659 | 2,508 |
Deferred income taxes | 1,217 | 1,139 |
Pension and other postretirement benefits | 1,656 | 1,676 |
Other liabilities | 280 | 317 |
Long-term debt | 16,470 | 16,970 |
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 (175,000 authorized shares, 80,367 and 79,532 issued and 80,251 and 78,441 outstanding, at March 31, 2018 and December 31, 2017, respectively) | 20 | 20 |
Additional paid-in capital | 4,847 | 5,034 |
Accumulated deficit | (2,089) | (2,263) |
Accumulated other comprehensive loss, net of tax | (367) | (366) |
Treasury common stock | (15) | (151) |
Total equity | 2,396 | 2,274 |
Total liabilities and equity | $ 24,678 | $ 24,884 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Allowances for accounts receivable, current | $ 99 | $ 69 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 80,367,000 | 79,532,000 |
Common stock, shares outstanding (in shares) | 80,251,000 | 78,441,000 |
Series A Preferred Stock [Member] | ||
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 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements Of Operations [Abstract] | ||
Revenue | $ 2,199 | $ 2,356 |
Operating expenses: | ||
Network access expenses | 372 | 411 |
Network related expenses | 483 | 493 |
Selling, general and administrative expenses | 469 | 542 |
Depreciation and amortization | 505 | 579 |
Acquisition and integration costs | 2 | |
Restructuring costs and other charges | 4 | 12 |
Total operating expenses | 1,833 | 2,039 |
Operating income | 366 | 317 |
Investment and other income, net | 8 | |
Pension settlement costs | 43 | |
Gain on extinguishment of debt | 33 | |
Interest expense | 374 | 388 |
Income (loss) before income taxes | 33 | (114) |
Income tax expense (benefit) | 13 | (39) |
Net income (loss) | 20 | (75) |
Less: Dividends on preferred stock | 53 | 54 |
Net loss attributable to Frontier common shareholders | $ (33) | $ (129) |
Basic and diluted net loss per share attributable to Frontier common shareholders | $ (0.44) | $ (1.67) |
Total weighted average shares outstanding - basic and diluted | 77,416 | 77,591 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $ 20 | $ (75) |
Other comprehensive income (loss), net of tax | (1) | 61 |
Comprehensive income (loss) | $ 19 | $ (14) |
Consolidated Statement Of Equit
Consolidated Statement Of Equity - USD ($) shares in Thousands, $ in Millions | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Common Stock [Member] | Total |
Balance at Dec. 31, 2016 | $ (387) | ||||||
Net income | $ (75) | ||||||
Other comprehensive income, net of tax | 61 | ||||||
Balance at Mar. 31, 2017 | (326) | ||||||
Balance at Dec. 31, 2017 | $ 20 | $ 5,034 | $ (2,263) | (366) | $ (151) | $ 2,274 | |
Preferred Stock Balance (in shares) at Dec. 31, 2017 | 19,250 | ||||||
Common Stock Balance (in shares) at Dec. 31, 2017 | 79,532 | (1,091) | 78,441 | ||||
Impact of adoption of ASC 606 at Dec. 31, 2017 | 154 | $ 154 | |||||
Stock plans | (134) | $ 136 | 2 | ||||
Stock plans (in shares) | 835 | 975 | |||||
Dividends on preferred stock | (53) | (53) | |||||
Net income | 20 | 20 | |||||
Other comprehensive income, net of tax | (1) | (1) | |||||
Balance at Mar. 31, 2018 | $ 20 | $ 4,847 | $ (2,089) | $ (367) | $ (15) | $ 2,396 | |
Preferred Stock Balance (in shares) at Mar. 31, 2018 | 19,250 | ||||||
Common Stock Balance (in shares) at Mar. 31, 2018 | 80,367 | (116) | 80,251 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows provided from (used by) operating activities: | ||
Net income (loss) | $ 20 | $ (75) |
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 505 | 579 |
Gain on extinguishment of debt | (33) | |
Pension settlement costs | 43 | |
Stock-based compensation expense | 4 | 3 |
Amortization of deferred financing costs | 9 | 9 |
Other adjustments | (9) | |
Deferred income taxes | 12 | (41) |
Change in accounts receivable | 9 | 105 |
Change in accounts payable and other liabilities | (261) | (312) |
Change in prepaid expenses, income taxes and other current assets | (5) | (11) |
Net cash provided from operating activities | 251 | 300 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures - Business operations | (297) | (315) |
Capital expenditures - Integration activities | (1) | |
Proceeds on sale of assets | 10 | 70 |
Other | (2) | 3 |
Net cash used by investing activities | (289) | (243) |
Cash flows provided from (used by) financing activities: | ||
Proceeds from long-term debt borrowings | 1,600 | |
Long-term debt payments | (1,627) | (38) |
Financing costs paid | (26) | (6) |
Premium paid to retire debt | (16) | |
Dividends paid on common stock | (124) | |
Dividends paid on preferred stock | (53) | (54) |
Capital lease obligation payments | (10) | (10) |
Other | (5) | (6) |
Net cash used by financing activities | (137) | (238) |
Decrease in cash, cash equivalents, and restricted cash | (175) | (181) |
Cash, cash equivalents, and restricted cash at January 1, | 376 | 522 |
Cash, cash equivalents, and restricted cash at March 31, | 201 | 341 |
Cash paid (received) during the period for: | ||
Interest | $ 593 | 577 |
Income tax refunds, net | $ (3) |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies : (a) Basis of Presentation and Use of Estimates : Frontier Communications Corporation and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Our interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. 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. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net loss and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. For our interim financial statements as of and for the period ended March 31, 2018, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (SEC). The preparation of our interim 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. We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, commercial and wholesale customers and is typically the incumbent voice services provider in its service areas. On July 10, 2017, we effected a one for fifteen reverse stock split of our common stock. The reverse stock split reduced the number of common shares issued (which includes outstanding shares and treasury shares) from approximately 1,193,000,000 shares to 80,000,000 shares, and reduced shares outstanding from 1,178,000,000 shares to 79,000,000 shares. In addition, and at the same time, the total number of shares of common stock that Frontier is authorized to issue changed from 1,750,000,000 shares to 175,000,000 shares. There was no change in the par value of the common stock, and no fractional shares were issued. All share and per share amounts in the financial statements and footnotes have been retroactively adjusted for all periods presented to give effect to the reverse stock split. As a result of our reverse stock split the conversion rates of our Series A Preferred Stock were proportionately adjusted. ( b ) Accounting Changes: Except for the changes discussed below, Frontier has consistently applied the accounting policies to all periods presented in these unaudited consolidated financial statements. Effective January 1, 2018, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” as modified (ASC 606). Frontier applied ASC 606 using the modified retrospective method – i.e., by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of equity at January 1, 2018. The historical periods have not been adjusted and continue to be reported under ASC 605 “Revenue Recognition.” See Note 3 for additional details. The table below summarizes the impact of the adoption of ASC 606 on revenue, operating expenses, and operating income for the three months ended March 31, 2018: For the three months ended March 31, 2018 Amounts without Adjustments adoption of As Reported for ASC 606 ASC 606 Revenue $ 2,199 $ (6) $ 2,193 Operating expenses 1,833 1 1,834 Operating income $ 366 $ (7) $ 359 (c) Revenue Recognition : Revenue for Voice services, Data & internet services, Video services, Switched and non-switched access services will be recognized as the service is provided. Services that are billed in advance include 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. Services that are billed in arrears include 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 services are provided. Excise taxes are recognized as a liability when billed. 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), $57 million and $53 million for the three months ended March 31, 2018 and 2017, respectively, and video franchise fees of $12 million and $14 million for the three months ended March 31, 2018 and 2017, respectively, that we have recorded on a gross basis in our consolidated statements of operations and included within “Revenue” and “Network related expenses.” 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 2016 acquisition of properties in California, Texas, and Florida with Verizon (CTF Acquisition), Frontier assumed the CAF Phase II support and related obligations that Verizon had previously accepted with regard to California and Texas. We are recognizing these subsidies into revenue on a straight - line basis. For additional information about our revenue policies and other required disclosures in accordance with ASC 606, refer to Note 3. (d ) Goodwill and Other Intangibles : Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible net assets acquired in a business combination. We have undertaken studies to determine the fair values of assets and liabilities acquired as well as to allocate the purchase price 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. We determined that we have one operating segment based on a number of factors that our management uses to evaluate and run our business operations, including similarities of customers, products and technology. No triggering events were identified as of March 31, 2018. 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. |
Recent Accounting Literature
Recent Accounting Literature | 3 Months Ended |
Mar. 31, 2018 | |
Recent Accounting Literature [Abstract] | |
Recent Accounting Literature | (2) Recent Accounting Literature : Recently Adopted Accounting Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “ Revenue from Contracts with Customers .” This standard, 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 they expect to be entitled in exchange for those goods o r services. Frontier adopted the standard during the first quarter of 2018, using the modified retrospective method – i.e., by recognizing the cumulative effect of initially applying Accounting Standards Codification Topic (ASC) 606 as an adjustment to the opening balance of shareholders’ equity at January 1, 2018. The comparative information for historical periods has not been adjusted and continues to be reported under ASC 605. See Note 3 for additional details and disclosures. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Effective January 1, 2018, we adopted FASB ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ” This standard was established to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost by requiring that an employer disaggregate the service cost component of periodic benefit cost from the other components of net benefit cost. The amendments in the update also provide explicit guidance on how to present the service cost component and other components of net benefit cost in the income statement and allow only the service cost components of net benefit cost to be eligible for capitalization. For adoption, Frontier retrospectively applied changes to our presentation of pension settlement costs and certain other benefit costs. The following table summarizes the impacts of adopting ASU No. 2017-07. For the three months ended March 31, 2017 Impact of adoption ($ in millions) As Reported of ASU 2017-07 As Restated Operating expenses: Network related expenses $ 494 $ (1) $ 493 Selling, general and administrative expenses $ 544 $ (2) $ 542 Pension settlement costs $ 43 $ (43) $ - Non-operating income/expenses: Investment and other income, net $ 3 $ (3) $ - Pension settlement costs $ - $ 43 $ 43 Recent Accounting Pronouncements Not Yet Adopted 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, l essees 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 using modified retrospective application . Early application is permitted . Frontier is in the initial stages of evaluating the potential impact this new standard may have on the consolidated financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, FASB issued ASU 2018-02, which allows for the reclassification of certain income tax effects related to the Tax Cuts and Jobs Act (the “Tax Act”) between “Accumulated other comprehensive income” and “Retained earnings.” This ASU relates to the requirement that adjustments to deferred tax liabilities and assets related to a change in tax laws or rates to be included in “Income from continuing operations , ” even in situations where the related items were originally recognized in “Other comprehensive income” (rather than in “Income from continuing operations”). The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. We are still evaluating certain aspects of this ASU as well as the related impacts it may have on our financial statemen ts. |
ASC 606 Adoption And Revenue Re
ASC 606 Adoption And Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
ASC 606 Adoption And Revenue Recognition [Abstract] | |
ASC 606 Adoption And Revenue Recognition | ( 3 ) ASC 606 Adoption and Revenue Recognition : Frontier applied ASC 606 using the modified retrospective method – i.e., by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of equity at January 1, 2018. The historical periods have not been adjusted and continue to be reported under ASC 605 “Revenue Recognition.” The following table includes information for the transition adjustment recorded as of January 1, 2018 to record the cumulative impact of adoption of ASC 606 for prior periods. (Unaudited) As Reported ASC 606 Adjusted ($ in millions) December 31, 2017 Transition Adjustment January 1, 2018 Assets Accounts receivable, net $ 819 $ (32) $ 787 Contract acquisition costs $ - $ 87 $ 87 Other current assets $ 64 $ 4 $ 68 Property, plant and equipment, net $ 14,377 $ 15 $ 14,392 Other assets $ 97 $ 127 $ 224 Liabilities and Equity Other current liabilities $ 330 $ 5 $ 335 Other liabilities $ 317 $ (9) $ 308 Deferred income taxes $ 1,139 $ 51 $ 1,190 Accumulated deficit $ (2,263) $ 154 $ (2,109) The details of the significant changes are set out below. Bundled Service and Allocation of Discounts When customers purchase more than one service, the amount allocable to each service under ASC 606 is being determined based upon the relative stand-alone selling price of each service received. While this change results in different allocations to each of the services, it does not change total customer revenue. Customer Incentives When customers purchase more than one service, the amount allocable to each service under ASC 606 is determined based upon the relative stand-alone selling price of each service received. While this change results in different allocations to each of the services, it does not change total customer revenue. Under ASC 606, services, discounts, and other incentives offered to customers are considered separate performance obligations and a portion of consideration received from the customer over the contract will be allocated to them. Other customer revenue is recognized when the incentives are granted to the customer and our performance obligation is satisfied. The costs for these incentives will continue to be recognized as marketing expense and included in Selling, general and administrative expenses. Under ASC 606, cash equivalent customer incentives reduce the total contract value, which reduces revenue over the contract term, or in the case of a month-to-month contract over the expected contract term. When customer incentives issued exceed the reduction of revenue recorded over the contract term, a contract asset is generated. As part of the above transition adjustment, $40 million and $37 million of Short-term and Long-term contract assets were recorded, respectively. As of March 31, 2018, we have included $39 million of Short-term contract assets in Other current assets and $37 million of Long-term contract assets in Other assets on our consolidated balance sheet. Upfront Fees Under ASC 606, upfront non-refundable fees for carrier contracts that provide the customer with a material right to renew must be deferred and amortized into revenue over the typical contract term. Previously, these were recognized as revenue when billed. When upfront fees paid by customers exceeds the revenue recognized for the satisfaction of the performance obligations, a contract liability is generated. As part of the transition adjustment above, $13 million and $9 million of Short-term and Long-term contract liabilities were recorded, respectively, for carrier upfront fees. As of March 31, 2018, we have included $13 million of Short-term contract liabilities in Other current liabilities and $9 million of Long-term contract liabilities in Other liabilities on our consolidated balance sheet related to carrier upfront fees . Contract Acquisition Costs Under ASC 606, certain costs to acquire customers must be deferred and amortized over the related contract period or expected customer life (average of 3.8 years). For Frontier, this includes certain commissions paid to acquire new customers. Beginning January 1, 2018, commissions attributable to new customer contracts are being deferred and amortized into expense. Historically these acquisition costs were expensed as incurred. Frontier expects that the incremental commissions paid as a result of acquiring customers are recoverable and therefore, as part of the transition adjustment above, short-term acquisition costs of $ 87 million and long-term contract acquisition costs of $ 117 million were capitalized. For the three months ended March 31, 2018 , Frontier capitalized and deferred $33 million of costs and amortized deferred costs of $25 million to Selling, general and administrative expens e. As of March 31, 2018, we have recorded short-term contract acquisition costs of $91 million and included $121 million of long-term contract acquisition costs in Other assets on our con solidated balance sheet . Reserves and Disputes For carrier disputes, Frontier previously recorded a reserve as a reduction of commercial revenue on a case by case basis once the carrier claim was validated by Frontier. Under ASC 606, credits issued for disputes are variable consideration and an estimate for the credits to be issued is now being recorded at the time of customer billing and the related contract liability is reflected in our Allowance for doubtful accounts (see Note 4). Other than the transition adjustment, there was no impact to our operating results for the three months ended March 31, 2018 related to this change. Switched Access Under ASC 606, switched access revenue, which has been historically reflected in Other regulatory revenue, is considered revenue from a customer; therefore, will be reflected in commercial customer revenue on a prospective basis. Contributions in Aid of Construction (CIAC) It is customary for us to charge customers for certain construction activities requested by them. Historically, these amounts were reflected as offsets to the costs of construction and were recorded net in pro perty, plant and equipment accounts. Under ASC 606, certain CIAC amounts will now be recognized as other customer revenue. For the three months ended March 31, 2018, we recognized $5 million in Revenue for performance obligations that were satisfied during the period. USF Fees Universal Service Fund Fees assessed to our customers were previously reflected in regulatory revenue. Under ASC 606, these amounts are being included in contract value and allocated to the services which have been delivered based on relative stand-alone selling price of each service. The following tables summarize the impacts of adopting ASC 606 on Frontier’s consolidated balance sheet and statement of operations as of and for the three months ended March 31, 2018. March 31, 2018 Impact of Amounts Excluding ($ in millions) As Reported Adoption of ASC 606 adoption of ASC 606 Assets Accounts receivable, net $ 778 $ 32 $ 810 Prepaid expenses $ 78 $ 4 $ 82 Contract acquisition costs $ 91 $ (91) $ - Other current assets $ 54 $ (2) $ 52 Property, plant and equipment, net $ 14,321 $ (24) $ 14,297 Other assets $ 228 $ (130) $ 98 Liabilities and Equity Other current liabilities $ 334 $ (9) $ 325 Other liabilities $ 280 $ 10 $ 290 Deferred income taxes $ 1,217 $ (53) $ 1,164 Accumulated deficit $ (2,089) $ (159) $ (2,248) For the three months ended March 31, 2018 Impact of Amounts Excluding As Reported Adoption of ASC 606 Adoption of ASC 606 ($ in millions) Revenue $ 2,199 $ (6) $ 2,193 Operating expenses: Network access expenses 372 (3) 369 Network related expenses 483 - 483 Selling, general and administrative expenses 469 4 473 Other operating expenses 509 - 509 Total operating expenses 1,833 1 1,834 Operating income $ 366 $ (7) $ 359 The impact of adoption of ASC 606 on net income, basic and diluted net loss per share, consolidated statement of comprehensive income, and the consolidated statement of cash flows were not material for the three months ended March 31, 2018. We categorize our products, services and other revenues into the following categories: 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”); 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; 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 switched access revenue , sales of customer premise equipment to our business customers , rents collected for collocation services, and revenue from other services and fees . Switched a ccess revenue includes 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; and Subsidy and other regulatory revenue includes revenues generated from cost subsidies from state and federal authorities, including the Connect America Fund Phase II. Th e following table provides a summary of revenues, by category. Because of limited comparability for historical p eriods, we have reflected the current period under both an ASC 606 basis as well as the historical ASC 605 basis. For the three months ended March 31, 2018 Impact Amounts Excluding Adoption of Adoption of ($ in millions) As reported ASC 606 ASC 606 2017 Data and Internet services $ 985 $ (43) $ 942 $ 993 Voice services 702 (32) 670 751 Video services 280 29 309 347 Other 135 (50) 85 68 Revenue from contracts with customers 2,102 (96) 2,006 2,159 Subsidy and other regulatory revenue 97 90 187 197 Total revenue $ 2,199 $ (6) $ 2,193 $ 2,356 For the three months ended March 31, 2018 Impact of Amounts Excluding Adoption of Adoption of ($ in millions) As reported ASC 606 ASC 606 2017 Consumer $ 1,128 $ (39) $ 1,089 $ 1,164 Commercial 974 (57) 917 995 Revenue from contracts with customers 2,102 (96) 2,006 2,159 Subsidy and other regulatory revenue 97 90 187 197 Total revenue $ 2,199 $ (6) $ 2,193 $ 2,356 Frontier satisfies its obligation s to customer s by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s performance often differs from the timing of the customer’s payment, which results in the recognition of a contract asset or a contract liability. Frontier recognizes a contract asset or liability when the Company transfers goods or services to a customer and bills an amount which differs from the revenue allocated to the related performance obligations. The opening and closing balances of Frontier’s contract asset, contract liability , receivables , and advanced billings balances for the three months ended March 31, 2018 are as follows: ($ in millions) January 1, 2018 March 31, 2018 Increase/Decrease Contract Assets: Short-term contract assets $ 40 $ 39 $ (1) Long-term contract assets $ 37 $ 37 $ - Contract Liabilities: Short-term contract liabilities $ 41 $ 47 $ 6 Long-term contract liabilities $ 19 $ 19 $ - Receivables $ 787 $ 778 $ (9) Advanced billings $ 270 $ 271 $ 1 The activity in contract assets included our recognition of reductions to revenue related to discounts and other customer incentives of $11 million and contract assets generated by issuance of new discounts and customer incentives to customers of $10 million. The increase in contract liabilities was driven primarily by the deferral of revenue for $29 million exceeding the $24 million of revenue recognized for the satisfaction of the performance obligations related to the deferred revenue. Short-term contract assets, Long-term contract assets, Short-term contract liabilities, and Long-term contract liabilities are included in other current assets, other assets, other current liabilities, and other liabilities, respectively, on our consolidated balance sheet. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. ($ in millions) Revenue from contracts with customers 2018 (remaining nine months) $ 3,276 2019 2,202 2020 669 2021 316 2022 196 Thereafter 256 Total $ 6,915 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ( 4 ) Accounts Receivable : The components of accounts receivable, net are as follows : ($ in millions) March 31, 2018 December 31, 2017 Retail and wholesale $ 787 $ 801 Other 90 87 Less: Allowance for doubtful accounts (99) (69) Accounts receivable, net $ 778 $ 819 We maintain an allowance for doubtful accounts based on our estimate of our ability to collect accounts receivable. A transition adjustment of $32 million was recorded for the impact of ASC 606 to the Allowance for doubtful accounts as of January 1, 2018 to reflect the cumulative impact of this change on prior periods. Bad debt expense, which is recorded as a reduction to revenue , is as follows : For the three months ended March 31, ($ in millions) 2018 2017 Bad debt expense $ 19 $ 32 |
Property, Plant And Equipment
Property, Plant And Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 5 ) Property, Plant and Equipment : Property, plant and equipment, net is as follows : ($ in millions) March 31, 2018 December 31, 2017 Property, plant and equipment $ 26,786 $ 26,496 Less: Accumulated depreciation (12,465) (12,119) Property, plant and equipment, net $ 14,321 $ 14,377 In 201 8 , we sold certain properties subject to leaseback , generating $10 million in net proceeds . For these proper ties , we have deferred $9 million in related gains that will be amortized over the related lease terms of two years. For the three months ended March 31, 2018, amortization of deferred gains for properties sold in 2017 and 2018 totaled $8 million, which are included in “Selling, general and administrative expenses” on our consolidated statement of operations . We have a remaining deferred gain balance of $44 million , which is included in “Other current liabilities .” Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended March 31, ($ in millions) 2018 2017 Depreciation expense $ 345 $ 376 We adopted new estimated remaining useful lives for certain plant assets as of October 1, 201 7 , 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. |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Other Intangibles [Abstract] | |
Goodwill And Other Intangibles | ( 6 ) Goodwill and Other Intangibles : We are required to perform impairment tests related to our goodwill annually, which we perform as of December 31, or sooner if an indicator of impairment occurs. Accumulated goodwill impairment charges were $2,788 million as of March 31, 2018 and December 31, 2017. During the first quarter of 2018, Frontier has not identified any trigger events that would indicate impairment of goodwill, or any other intangible assets. The components of other intangibles are as follows : March 31, 2018 December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 5,188 $ (3,450) $ 1,738 $ 5,188 $ (3,294) $ 1,894 Trade name 122 - 122 122 - 122 Royalty agreement 72 (29) 43 72 (25) 47 Total other intangibles $ 5,382 $ (3,479) $ 1,903 $ 5,382 $ (3,319) $ 2,063 Amortization expense was as follows : For the three months ended March 31, ($ in millions) 2018 2017 Amortization expense $ 160 $ 203 Amortization expense primarily represents the amortization of our customer base acquired as a result of our acquisitions in 2010, 2014, and 2016 with each based on a useful life of 8 to 12 years on an accelerated method . |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | ( 7 ) Fair Value of Financial Instruments : The following table summarizes the carrying amounts and estimated fair values for long-term debt at March 31 , 201 8 and December 31, 201 7 . For the other financial instruments including cash, accounts receivable, 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. The fair value of our long-term debt is estimated based upon quoted market prices at the reporting date for those financial instruments. March 31, 2018 December 31, 2017 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 16,470 $ 13,522 $ 16,970 $ 13,994 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | ( 8 ) Long-Term Debt : The activity in our long-term debt from January 1, 201 8 through March 31, 2018 is summarized as follows: Three months ended March 31, 2018 ($ in millions) January 1, 2018 Payments and Retirements New Borrowings March 31, 2018 Interest Rate at March 31, 2018* Secured debt issued by Frontier $ 3,511 $ (41) $ 1,600 $ 5,070 6.64% Unsecured debt issued by Frontier 13,495 (1,651) - 11,844 9.51% Secured debt issued by subsidiaries 107 - - 107 8.35% Unsecured debt issued by subsidiaries 750 - - 750 6.90% Total debt $ 17,863 $ (1,692) $ 1,600 $ 17,771 8.57% Less: Debt Issuance Costs (183) (188) Less: Debt Premium/(Discount) (54) (53) Less: Current Portion (656) (1,060) $ 16,970 $ 16,470 * Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at March 31, 2018 represent a weighted average of multiple issuances. Additional information regarding our long-term debt as of March 31, 2018 and December 31, 2017 is as follows: March 31, 2018 December 31, 2017 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 10/24/2019 (1) $ 236 6.255% (Variable) $ 245 5.445% (Variable) Term loan due 3/31/2021 (2) 1,463 4.630% (Variable) 1,483 4.320% (Variable) Term loan due 10/12/2021 (3) 268 6.255% (Variable) 276 5.445% (Variable) Term loan due 6/15/2024 (4) 1,489 5.630% (Variable) 1,492 5.320% (Variable) Second lien notes due 4/1/2026 1,600 8.500% - IDRB due 5/1/2030 13 6.200% 13 6.200% Equipment financings 1 0.000% 2 0.000% Total secured debt issued by Frontier 5,070 3,511 Unsecured debt issued by Frontier Senior notes due 10/1/2018 491 8.125% 491 8.125% Senior notes due 3/15/2019 404 7.125% 404 7.125% Senior notes due 4/15/2020 172 8.500% 619 8.500% Senior notes due 9/15/2020 55 8.875% 303 8.875% Senior notes due 7/1/2021 89 9.250% 490 9.250% Senior notes due 9/15/2021 220 6.250% 775 6.250% Senior notes due 4/15/2022 500 8.750% 500 8.750% Senior notes due 9/15/2022 2,188 10.500% 2,188 10.500% Senior notes due 1/15/2023 850 7.125% 850 7.125% Senior notes due 4/15/2024 750 7.625% 750 7.625% Senior notes due 1/15/2025 775 6.875% 775 6.875% Senior notes due 9/15/2025 3,600 11.000% 3,600 11.000% Debentures due 11/1/2025 138 7.000% 138 7.000% Debentures due 8/15/2026 2 6.800% 2 6.800% Senior notes due 1/15/2027 346 7.875% 346 7.875% Senior notes due 8/15/2031 945 9.000% 945 9.000% Debentures due 10/1/2034 1 7.680% 1 7.680% Debentures due 7/1/2035 125 7.450% 125 7.450% Debentures due 10/1/2046 193 7.050% 193 7.050% Total unsecured debt issued by Frontier 11,844 13,495 Secured debt issued by subsidiaries Debentures due 11/15/2031 100 8.500% 100 8.500% RUS loan contracts due 1/3/2028 7 6.152% 7 6.152% Total secured debt issued by subsidiaries 107 107 Unsecured debt issued by subsidiaries Debentures due 5/15/2027 200 6.750% 200 6.750% Debentures due 2/1/2028 300 6.860% 300 6.860% Debentures due 2/15/2028 200 6.730% 200 6.730% Debentures due 10/15/2029 50 8.400% 50 8.400% Total unsecured debt issued by subsidiaries 750 750 Total debt $ 17,771 8.3% (5) $ 17,863 8.1% (5) (1) Represents borrowings under the 2014 CoBank Credit Agreement, as defined below. (2) Represents borrowings under the JPM Credit Agreement Term Loan A, as defined below. (3) Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. (4) Represents borrowings under the JPM Credit Agreement Term Loan B, as defined below. (5) Interest rate represents a weighted average of the stated interest rates of multiple issuances . New Notes Issuances On March 19, 2018, Frontier completed a private offering of $1,600 million aggregate principal amount of 8.500% Second Lien Secured Notes du e 2026 (the “Second Lien Notes”). The Second Lien Notes are guaranteed by each of the Company’s subsidiaries that guarantees its senior secured credit facilities. The guarantees are unsecured obligations of the guarantors and subordinated in right of payment to all of the guarantor’s obligations under the Company’s senior secured credit facilities and certain other permitted future senior indebtedness but equal in right of payment with all other unsubordinated obligations of the guarantors. The Second Lien Notes indenture provides that (a) the aggregate amount of all guaranteed obligations guaranteed by the guarantees are limited and shall not, at any time, exceed the lesser of (x) the principal amount of the Second Lien Notes then outstanding and (y) the Maximum Guarantee Amount (as defined in the Second Lien Notes indenture), and (b) for the avoidance of doubt, nothing in the Second Lien Notes indenture shall, on any date or from time to time, allow the aggregate amount of all such guaranteed obligations guaranteed by the guarantors to cause or result in the Company or any subsidiary violating any indenture governing the Company’s existing senior notes. The Second Lien Notes are secured on a second-priority basis by all the assets that secure Frontier’s obligations under its senior secured credit facilities on a first-priority basis. The collateral securing the Second Lien Notes and the Company’s senior secured credit facilities is limited to the equity interests of certain subsidiaries of the Company and substantially all personal property of Newco West Holdings LLC. The Second Lien Notes bear interest at a rate of 8.500% per annum and mature on April 1, 2026 . Interest on the Second Lien Notes is payable to holders of record semi-annually in arrears on April 1 and October 1 of each year, commencing October 1, 2018. Debt Reductions During the three months ended March 31, 201 8 , Frontier used cash on hand for the scheduled retirement of $41 million contractual payments of principal indebtedness. Additionally, Frontier used cash proceeds from the $1,600 million Second Lien Notes offering and cash on hand to r etire an aggregate principal amount of $1,651 million senior unsecured notes prior to maturity, consisting of $447 million of 8.500% senior notes due 2020 , $249 million 8.875% senior notes due 2020, $555 million of 6.250% due 2021, and $400 million of 9.250% senior notes due 2021. During the first three months of 2018, Frontier recorded a gain on early extinguishment of debt of $33 million driven primarily by discounts received on the retirement of certain notes, slightly offset by premiums paid to retire certain notes and unamortized original issuance costs . Term Loans and Credit Facilities On February 27, 2017, Frontier entered into a first amended and restated credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto, pursuant to which Frontier combined its revolving credit agreement, dated as of June 2, 2014, and its term loan credit agreement, dated as of August 12, 2015. Under the JPM Credit Agreement, as further amended on June 15, 2017 by Increase Joinder No.1 (as so amended, the JPM Credit Agreement), Frontier has a $1,625 million senior secured term loan A facility (the Term Loan A) maturing on March 31, 2021 , an $850 million undrawn secured revolving credit facility maturing on February 27, 2022 (the Revolver), and $1,500 million senior secured term loan B facility (the Term Loan B) maturing on June 15, 2024 . The maturities of the Term Loan A, the Revolver, and the Term Loan B, in each case if still outstanding, will be accelerated in the following circumstances: (i) if, 91 days before the maturity date of any series of Senior Notes maturing in 2020, 2023 and 2024, more than $500 million in principal amount remains outstanding on such series; or (ii) if, 91 days before the maturity date of the first series of Senior Notes maturing in 2021 or 2022, more than $500 million in principal amount remains outstanding, in the aggregate, on the two series of Senior Notes maturing in such year. The determination of interest rates for each of the facilities under the JPM Credit Agreement is based on margins over the Base Rate (as defined in the JPM Credit Agreement) or over LIBOR, at the election of Frontier. Interest rate margins on the Term Loan A and Revolver (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 JPM Credit Agreement). The interest rate on the Term Loan A as of March 31, 2018 was LIBOR plus 2.75% . Interest rate margins on the Term Loan B ( 2.75% for Base Rate borrowings and 3.75% for LIBOR borrowings) are not subject to adjustment. The security package under the JPM Credit Agreement includes pledges of the equity interests in certain Frontier subsidiaries and guaranties by certain Frontier subsidiaries. As of March 31, 2018, the company had no borrowings outstanding under the revolver (with letters of credit issued under the revolver totaling $62 million). 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, for a $350 million senior term loan facility drawn in 2014 (the 2014 CoBank Credit Agreement), matures on October 24, 2019 , and the second, for a $315 million senior term loan facility drawn in October 2016 (the 2016 CoBank Credit Agreement), matures on October 12, 2021 . We refer to the 2014 CoBank Credit Agreement and the 2016 CoBank Credit Agreement collectively as the CoBank Credit Agreements. B orrowings under each of the CoBank Credit Agreements bear interest based on the margins over the Base Rate (as defined in the applicable CoBank Credit Agreement) or over LIBOR, at the election of Frontier. On March 29, 2017, Frontier amended the 2014 and 2016 CoBank Credit Agreements. The amendments provide that interest rate margins under each of these facilities will range from 0.875% to 3.875% for Base Rate borrowings and 1.875% to 4.875% for LIBOR borrowings, subject to adjustment based on our Total Leverage Ratio, as defined in each credit agreement. The interest rate on each of the facilities as of March 31, 2018 was LIBOR plus 4.375% . In addition, the amendments provide for increases in the maximum Leverage Ratio and expansion of the security package identical to those contained in the JPM Credit Agreement. On January 25, 2018 Frontier further amended its credit agreements with JP Morgan Chase and CoBank. The amendments , among other things, expanded the security package to include the interests of certain subsidiaries previously not pledged and replaced the net leverage ratio maintenance test with a first lien net leverage ratio maintenance test. As of March 31, 2018 , we were in compliance with all of our indenture and credit facility covenants. Our scheduled principal payments are as follows as of March 31, 2018 : Principal ($ in millions) Payments 2018 (remaining nine months) $ 614 2019 $ 804 2020 $ 436 2021 $ 1,603 2022 $ 2,703 2023 $ 866 Thereafter $ 10,745 |
Restructuring Costs And Other C
Restructuring Costs And Other Charges | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring Costs And Other Charges | |
Restructuring Costs And Other Charges | (9) Restructuring Costs and Other Charges As of March 31, 2018 , restructuring related liabilities of $9 millio n pertaining to employee separation charges were included in “Other current liabilities” in our consolidated balance sheet. Restructuring costs and other charges, primarily consisting of severance and other employee-related costs of $4 million and $12 mill ion in connection with workforce reductions, are included in “Restructuring costs and other charges” in our consolidated statement of operations for the three months ended March 31, 2018 and 2017 . The following is a summary of the changes in the liabilities established for restructuring programs at March 31, 2018: ($ in millions) Balance, January 1, 2018 $ 25 Severance costs 4 Cash payments during the period (20) Balance, March 31, 2018 $ 9 |
Investment And Other Income
Investment And Other Income | 3 Months Ended |
Mar. 31, 2018 | |
Investment And Other Income [Abstract] | |
Investment And Other Income | (10) Investment and Other Income The following is a summary of the components of Investment and Other Income for the three months ended March 31, 2018 and 2017: For the three months ended March 31, ( $ in millions ) 2018 2017 Interest and dividend income $ 2 $ 3 Pension and OPEB costs 5 (3) All other, net 1 - Total investment and other income, net $ 8 $ - |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | (1 1 ) 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 rate : For the three months ended March 31, 2018 2017 Consolidated tax provision at federal statutory rate 21.0 % 35.0 % State income tax provisions, net of federal income tax benefit 7.2 0.2 Remeasurement of certain deferred tax balances (11.9) - Tax reserve adjustment 1.2 (0.6) Changes in certain deferred tax balances 14.2 - Shared-based payments 10.6 (1.8) Federal research and development tax credit (2.0) 0.9 All other, net 0.8 0.5 Effective tax rate 41.1 % 34.2 % Under ASC 605, income tax expense would have been $2 million lower for the three months ended March 31, 2018, as a result of changes in pre-tax income as discussed in Note 3. Amounts pertaining to income tax related accounts of $0 million and $2 million are included in “Income taxes and other current assets” in the consolidated balance sheets as of March 31, 2018 and December 31, 201 7 , respectively. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | (12 ) Net Loss Per Share : All share and per share amounts in the tables below have been retroactively adjusted for all periods presented to give effect to the reverse stock split. See Note 1 – Summary of Significant Accounting Policies for additional details. The reconciliation of the net loss per share calculation is as follows : For the three months ended March 31, ( $ in millions and shares in thousands, except per share amounts ) 2018 2017 Net loss used for basic and diluted loss per share: Net loss attributable to Frontier common shareholders $ (33) $ (129) Less: Dividends paid on unvested restricted stock awards - (1) Total basic net loss attributable to Frontier common shareholders $ (33) $ (130) Effect of loss related to dilutive stock units - - Total diluted net loss attributable to Frontier common shareholders $ (33) $ (130) Basic and diluted loss per share: Total weighted average shares and unvested restricted stock awards outstanding - basic and diluted 78,861 78,244 Less: Weighted average unvested restricted stock awards (1,445) (653) Total weighted average shares outstanding - basic and diluted 77,416 77,591 Basic and diluted net loss per share attributable to Frontier common shareholders $ (0.44) $ (1.67) In calculating diluted net loss per common share for the three months ended March 31, 2018 and 2017 , the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive. Stock Options For the three months ended March 31, 2018 and 201 7 , previously granted options to purchase 1,334 a nd 2,667 shares , 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 March 31, 2018 and 201 7 , we had 244,337 and 139,666 stock units, respectively, issued under the Non-Employee Directors’ Deferred Fee Equity Plan (Deferred Fee Plan), the Non-Employee Directors’ Equity Incentive Plan (Directors’ Equity Plan) , the 2013 Equity Incentive Plan and the 2017 Equity Incentive Plan . These securities have not been included in the diluted EPS calculation for the three months ended March 31, 2018 and 2017 because their inclusion would have an antidilutive effect. C ompensation costs associated with the issuance of stock units were $0 and $(2) mi llion for the three months ended March 31, 2018 and 2017, respectively . Mandatory Convertible Preferred Stock The impact of the common share equivalents associated with approximately 19,250,000 shares of Series A Preferred stock were not included in the diluted EPS calculation as of March 31, 2018 and 201 7 , as their impact was antidilutive . |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2018 | |
Stock Plans [Abstract] | |
Stock Plans | (13 ) Stock Plans : All share and per share amounts in the tables below have been retroactively adjusted for all periods presented to give effect to the reverse stock split. See Note 1 – Summary of Significant Accounting Policies for additional details. At March 31, 2018 , we had seven stock-based compensation plans under which grants were made and awards remained outstanding. No further awards may be granted under six 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 2013 Equity Incentive Plan (the 2013 EIP), the Deferred Fee Plan and the Directors’ Equity Plan. At March 31, 2018 , there were approximately 5 ,667,000 shares authorized for grant and approximately 2,270,000 shares av ailable for grant under the 2017 Equity Incentive Plan (the 2017 EIP and together with the 1996 EIP, the 2000 EIP , the 2009 EIP and the 2013 EIPS , the EIPs). Performance Shares O n February 14, 2018, th e Compensation Committee of our Boar d of Directors granted approximately 284,000 performance shares under the Frontier Long Term Incentive Plan (the LTIP) and set the operating cash flow performance goal for 201 7 , which applies to the first year in the 201 7 -201 9 measurement period, the second year of the 201 6 -201 8 measurement period and the third year of the 201 5 -201 7 measurement period. The following summary presents information regarding LTIP target performance shares as of March 31, 2018 and changes during the three months then ended with regard to LTIP shares awarded under the 2013 EIP and the 2017 EIP : Number of Shares (in thousands) Balance at January 1, 2018 306 LTIP target performance shares granted, net 284 LTIP target performance shares earned (18) LTIP target performance shares forfeited (8) Balance at March 31, 2018 564 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. For the three months ended March 31, 2018 and 201 7 , we recognized net compensation expense, reflected in “Selling, general and administrative expenses ,” of $1 million and $(1) million , respectively, for the LTIP. Restricted Stock The following summary presents information regarding unvested restricted stock as of March 31, 2018 and changes during the three months then ended with regard to restricted stock granted under the 2013 EIP and the 2017 EIP : Weighted Average Number of Grant Date Aggregate Shares Fair Value Fair Value (in thousands) (per share) (in millions) Balance at January 1, 2018 633 $ 58.63 $ 4 Restricted stock granted 1,897 $ 8.23 $ 14 Restricted stock vested (219) $ 66.41 $ (2) Restricted stock forfeited (39) $ 57.87 Balance at March 31, 2018 2,272 $ 15.80 $ 17 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 co mmon stock on the date of grant, for shares granted prior to May 10, 2017. Beginning on May 10, 2017, the fair value of each restricted stock grant is estimated based on the closing price of a share of our common stock on the date of the grant. Total remaining unrecognized compensation cost associated with unvested restricted stock awards that is deferred at March 31, 2018 was $43 million, and the weighted average vesting period over which this cost is expected to be recognized is approximately 2 years . Shares of restricted stock granted during the first three months of 201 7 totaled 431,000 . The total fair value of shares of restricted stock granted and vested at March 31, 2017 was approximately $14 million. The total fair value of unvested restricted stock at March 31, 2017 was $24 million. The weighted average grant date fair value of restricted shares granted during the three months ended March 31, 2017 was $49.95 per share . 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 $3 million and $4 million for each of the three month period s ended March 31, 2018 and 201 7 , respectively, has been recorded in connection with these grants . |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (1 4 ) Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting shareholders’ investment and pension/postretirement benefit (OPEB) liabilities that, under GAAP, are excluded from net loss. The components of accumulated other comprehensive loss, net of tax at March 31, 2018 and 201 7 , and changes for the three months then ended, are as follows : ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2018 (a) $ (345) $ (21) $ (366) Other comprehensive income (loss) before reclassifications (4) - (4) Amounts reclassified from accumulated other comprehensive loss to net loss 4 (1) 3 Net current-period other comprehensive income (loss) - (1) (1) Balance at March 31, 2018 (a) $ (345) $ (22) $ (367) ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2017 (a) $ (403) $ 16 $ (387) Other comprehensive income (loss) before reclassifications 30 - 30 Amounts reclassified from accumulated other comprehensive loss to net loss 32 (1) 31 Net current-period other comprehensive income (loss) 62 (1) 61 Balance at March 31, 2017 (a) $ (341) $ 15 $ (326) (a) Pension and OPEB amounts are net of deferred tax balances of $223 million and $231 million as of January 1, 2018 and 2017, respectively and $2 18 million and $195 million as of March 31, 2018 and 2017, respectively. As a result of pension settlement accounting, the Frontier Communications Pension Plan (the Pension Plan) was remeasured as of March 31, 2017. For the three months ended March 31, 2017, Frontier recorded a net loss on remeasurement of $48 million to Other comprehensive income (loss). Additionally, during this period Frontier recorded pension settlement charges totaling $43 million to Other comprehensive income (loss). Refer to Note 1 5 for details about the settlement accounting. The significant items reclassified from each component of accumulated other comprehensive loss for the three months ended March 31, 2018 and 201 7 are as follows: Amount Reclassified from Accumulated Other Comprehensive Loss (a) ($ in millions) Details about Accumulated Other For the three months ended March 31, Affected Line Item in the Statement Where Comprehensive Loss Components 2018 2017 Net Income (Loss) is Presented Amortization of Pension Cost Items (b) Actuarial gains (losses) $ (7) $ (8) Pension settlement costs - (43) (7) (51) Income (loss) before income taxes Tax impact 3 19 Income tax (expense) benefit $ (4) $ (32) Net income (loss) Amortization of OPEB Cost Items (b) Prior-service costs $ 2 $ 2 Actuarial gains (losses) (1) - 1 2 Income (loss) before income taxes Tax impact - (1) Income tax (expense) benefit $ 1 $ 1 Net income (loss) (a) Amounts in parentheses indicate losses. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 15 - Retirement Plans for additional details) . |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Plans [Abstract] | |
Retirement Plans | (1 5 ) Retirement Plans : The following tables provide the components of total benefit cost : Pension Benefits For the three months ended March 31, ( $ in millions ) 2018 2017 Components of total pension benefit cost Service cost $ 24 $ 25 Interest cost on projected benefit obligation 30 34 Expected return on plan assets (50) (48) Amortization of unrecognized loss 7 8 Net periodic pension benefit cost $ 11 $ 19 Pension settlement costs - 43 Total pension benefit cost $ 11 $ 62 Postretirement Benefits For the three months ended March 31, ( $ in millions ) 2018 2017 Components of net periodic postretirement benefit cost Service cost $ 5 $ 5 Interest cost on projected benefit obligation 9 10 Amortization of prior service cost/(credit) (2) (2) Amortization of unrecognized (gain) loss 1 - Net periodic postretirement benefit cost $ 13 $ 13 During the first three months of 201 8 and 201 7 , we capitalized $7 million and $7 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. The Pension Plan contains provisions that provide certain employees with the option of receiving a lump sum payment upon retirement. Frontier’s accounting policy is to record these payments as a settlement only if, in the aggregate, they exceed the sum of the annual service and interest costs for the Pension Plan’s net periodic pension benefit cost. During the three months ended March 31, 2017 , lump sum pension settlement payments to terminated or retired individuals amounted to $255 million, which exceeded the settlement threshold of $234 million , and as a result, Frontier recognized a non-cash settlement charge of $43 million during the first quarter of 2017 . The non-cash charge accelerated the recognition of a portion of the previously unrecognized actuarial losses in the Pension Plan. These non-cash charges increased our recorded net loss and accumulated deficit, with an offset to accumulated other comprehensive loss in shareholders’ equity. As a result of the recognition of the settlement charges in the first three months of 201 7 , the net pension plan liability was remeasured as of March 31, 2017 to be $655 million, as compared to the $699 million measured and recorded at December 31, 201 6 . Frontier did not record any adjustment to the pension plan liability, beyond the settlement charge, as a result of this remeasurement. Our Pension Plan assets decreased fro m $2,674 million at December 31, 2017 to $2,558 million at March 31, 2018, a decrease of $116 million, or 4% . This decrease was a result of benefit payments of $102 million and negative investment returns of $45 million, net of investment management and administrative fees, partially offset by contributions of $31 million. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (1 6 ) 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 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 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 in 2020 , we would be required to return a portion of the funds previously received. Frontier’s frozen high-cost phasedown support is expected to be $6 million in 2018. On April 20, 2017, the FCC issued an Order that significantly altered how Commercial Data Services are regulated. Specifically, the Order adopted a test to determine, on a county-by-county basis, whether price cap ILECs, like Frontier’s DS1 and DS3 services, will continue to be regulated. The test resulted in deregulation in a substantial number of our markets and is allowing Frontier to offer its DS1 and DS3 services in a manner that better responds to the competitive marketplace and allows for commercial negotiation. The areas that remain regulated may be subject to price fluctuations depending upon the price cap formula that year. Multiple parties have appealed the Order, which is pending in the 8th Circuit. Frontier cannot predict the extent to which these regulatory changes will affect revenues at this time . On April 30, 2018, an amended consolidated class action complaint was filed in the United States District Court for the District of Connecticut on behalf of certain purported stockholders against Frontier, certain of its current and former directors and officers and the underwriters of certain Frontier securities offerings. The complaint is brought on behalf of all persons who (1) acquired Frontier common stock between February 6, 2015 and February 28, 2018, inclusive, and/or (2) acquired Frontier common stock or Mandatory Convertible Preferred Stock either in or traceable to Frontier’s offerings of common and preferred stock conducted on or about June 2, 2015 and June 8, 2015. The complaint asserts, among other things, violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 thereunder, Section 20(a) of the Exchange Act and Sections 11 and 12 of the Securities Act of 1933, as amended, in connection with certain disclosures relating to the CTF Acquisition. The complaint seeks, among other things, damages and equitable and injuncti ve relief. We dispute the allegations in the complaint described above and intend to vigorously defend against such claims. Given that this matter is in the early stages of litigation, we are unable to estimate a reasonably possible range of loss, if any, that may result from this matter. In addition, w e are party to various other legal proceedings (including individual, class and putative class actions as well as governmental investigations) 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. Such matters are subject to uncertainty and the outcome of individual matters is not predictable. However, we believe that the ultimate resolution of these matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our financial position, results of operations, or cash flows. 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 . 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. We have accrued an amount for potential penalties that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual. |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | (a) Basis of Presentation and Use of Estimates : Frontier Communications Corporation and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Our interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. 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. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net loss and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. For our interim financial statements as of and for the period ended March 31, 2018, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (SEC). The preparation of our interim 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. We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, commercial and wholesale customers and is typically the incumbent voice services provider in its service areas. On July 10, 2017, we effected a one for fifteen reverse stock split of our common stock. The reverse stock split reduced the number of common shares issued (which includes outstanding shares and treasury shares) from approximately 1,193,000,000 shares to 80,000,000 shares, and reduced shares outstanding from 1,178,000,000 shares to 79,000,000 shares. In addition, and at the same time, the total number of shares of common stock that Frontier is authorized to issue changed from 1,750,000,000 shares to 175,000,000 shares. There was no change in the par value of the common stock, and no fractional shares were issued. All share and per share amounts in the financial statements and footnotes have been retroactively adjusted for all periods presented to give effect to the reverse stock split. As a result of our reverse stock split the conversion rates of our Series A Preferred Stock were proportionately adjusted. |
Accounting Changes | ( b ) Accounting Changes: Except for the changes discussed below, Frontier has consistently applied the accounting policies to all periods presented in these unaudited consolidated financial statements. Effective January 1, 2018, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” as modified (ASC 606). Frontier applied ASC 606 using the modified retrospective method – i.e., by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of equity at January 1, 2018. The historical periods have not been adjusted and continue to be reported under ASC 605 “Revenue Recognition.” See Note 3 for additional details. The table below summarizes the impact of the adoption of ASC 606 on revenue, operating expenses, and operating income for the three months ended March 31, 2018: For the three months ended March 31, 2018 Amounts without Adjustments adoption of As Reported for ASC 606 ASC 606 Revenue $ 2,199 $ (6) $ 2,193 Operating expenses 1,833 1 1,834 Operating income $ 366 $ (7) $ 359 |
Revenue Recognition | (c) Revenue Recognition : Revenue for Voice services, Data & internet services, Video services, Switched and non-switched access services will be recognized as the service is provided. Services that are billed in advance include 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. Services that are billed in arrears include 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 services are provided. Excise taxes are recognized as a liability when billed. 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), $57 million and $53 million for the three months ended March 31, 2018 and 2017, respectively, and video franchise fees of $12 million and $14 million for the three months ended March 31, 2018 and 2017, respectively, that we have recorded on a gross basis in our consolidated statements of operations and included within “Revenue” and “Network related expenses.” 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 2016 acquisition of properties in California, Texas, and Florida with Verizon (CTF Acquisition), Frontier assumed the CAF Phase II support and related obligations that Verizon had previously accepted with regard to California and Texas. We are recognizing these subsidies into revenue on a straight - line basis. For additional information about our revenue policies and other required disclosures in accordance with ASC 606, refer to Note 3. |
Goodwill and Other Intangibles | (d ) Goodwill and Other Intangibles : Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible net assets acquired in a business combination. We have undertaken studies to determine the fair values of assets and liabilities acquired as well as to allocate the purchase price 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. We determined that we have one operating segment based on a number of factors that our management uses to evaluate and run our business operations, including similarities of customers, products and technology. No triggering events were identified as of March 31, 2018. 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. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Standards Update 2014-09 [Member] | |
Schedule Of New Accounting Pronouncement Adoption | For the three months ended March 31, 2018 Amounts without Adjustments adoption of As Reported for ASC 606 ASC 606 Revenue $ 2,199 $ (6) $ 2,193 Operating expenses 1,833 1 1,834 Operating income $ 366 $ (7) $ 359 |
Recent Accounting Literature (T
Recent Accounting Literature (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Standards Update 2017-07 [Member] | |
Schedule Of New Accounting Pronouncement Adoption | For the three months ended March 31, 2017 Impact of adoption ($ in millions) As Reported of ASU 2017-07 As Restated Operating expenses: Network related expenses $ 494 $ (1) $ 493 Selling, general and administrative expenses $ 544 $ (2) $ 542 Pension settlement costs $ 43 $ (43) $ - Non-operating income/expenses: Investment and other income, net $ 3 $ (3) $ - Pension settlement costs $ - $ 43 $ 43 |
ASC 606 Adoption And Revenue 27
ASC 606 Adoption And Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ASC 606 Adoption And Revenue Recognition [Abstract] | |
Schedule Of Prior Period Impact Of New Accounting Pronouncement | (Unaudited) As Reported ASC 606 Adjusted ($ in millions) December 31, 2017 Transition Adjustment January 1, 2018 Assets Accounts receivable, net $ 819 $ (32) $ 787 Contract acquisition costs $ - $ 87 $ 87 Other current assets $ 64 $ 4 $ 68 Property, plant and equipment, net $ 14,377 $ 15 $ 14,392 Other assets $ 97 $ 127 $ 224 Liabilities and Equity Other current liabilities $ 330 $ 5 $ 335 Other liabilities $ 317 $ (9) $ 308 Deferred income taxes $ 1,139 $ 51 $ 1,190 Accumulated deficit $ (2,263) $ 154 $ (2,109) |
Schedule Of Impact Of New Accounting Pronouncement On Balance Sheet And Income Statement | March 31, 2018 Impact of Amounts Excluding ($ in millions) As Reported Adoption of ASC 606 adoption of ASC 606 Assets Accounts receivable, net $ 778 $ 32 $ 810 Prepaid expenses $ 78 $ 4 $ 82 Contract acquisition costs $ 91 $ (91) $ - Other current assets $ 54 $ (2) $ 52 Property, plant and equipment, net $ 14,321 $ (24) $ 14,297 Other assets $ 228 $ (130) $ 98 Liabilities and Equity Other current liabilities $ 334 $ (9) $ 325 Other liabilities $ 280 $ 10 $ 290 Deferred income taxes $ 1,217 $ (53) $ 1,164 Accumulated deficit $ (2,089) $ (159) $ (2,248) For the three months ended March 31, 2018 Impact of Amounts Excluding As Reported Adoption of ASC 606 Adoption of ASC 606 ($ in millions) Revenue $ 2,199 $ (6) $ 2,193 Operating expenses: Network access expenses 372 (3) 369 Network related expenses 483 - 483 Selling, general and administrative expenses 469 4 473 Other operating expenses 509 - 509 Total operating expenses 1,833 1 1,834 Operating income $ 366 $ (7) $ 359 |
Disaggregation Of Revenue | For the three months ended March 31, 2018 Impact Amounts Excluding Adoption of Adoption of ($ in millions) As reported ASC 606 ASC 606 2017 Data and Internet services $ 985 $ (43) $ 942 $ 993 Voice services 702 (32) 670 751 Video services 280 29 309 347 Other 135 (50) 85 68 Revenue from contracts with customers 2,102 (96) 2,006 2,159 Subsidy and other regulatory revenue 97 90 187 197 Total revenue $ 2,199 $ (6) $ 2,193 $ 2,356 For the three months ended March 31, 2018 Impact of Amounts Excluding Adoption of Adoption of ($ in millions) As reported ASC 606 ASC 606 2017 Consumer $ 1,128 $ (39) $ 1,089 $ 1,164 Commercial 974 (57) 917 995 Revenue from contracts with customers 2,102 (96) 2,006 2,159 Subsidy and other regulatory revenue 97 90 187 197 Total revenue $ 2,199 $ (6) $ 2,193 $ 2,356 |
Contract Asset, Liability, And Receivables Balances | ($ in millions) January 1, 2018 March 31, 2018 Increase/Decrease Contract Assets: Short-term contract assets $ 40 $ 39 $ (1) Long-term contract assets $ 37 $ 37 $ - Contract Liabilities: Short-term contract liabilities $ 41 $ 47 $ 6 Long-term contract liabilities $ 19 $ 19 $ - Receivables $ 787 $ 778 $ (9) Advanced billings $ 270 $ 271 $ 1 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2018 (remaining nine months) $ 3,276 2019 2,202 2020 669 2021 316 2022 196 Thereafter 256 Total $ 6,915 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) March 31, 2018 December 31, 2017 Retail and wholesale $ 787 $ 801 Other 90 87 Less: Allowance for doubtful accounts (99) (69) Accounts receivable, net $ 778 $ 819 |
Allowance For Doubtful Accounts | For the three months ended March 31, ($ in millions) 2018 2017 Bad debt expense $ 19 $ 32 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) March 31, 2018 December 31, 2017 Property, plant and equipment $ 26,786 $ 26,496 Less: Accumulated depreciation (12,465) (12,119) Property, plant and equipment, net $ 14,321 $ 14,377 |
Schedule Of Depreciation Expense | For the three months ended March 31, ($ in millions) 2018 2017 Depreciation expense $ 345 $ 376 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Other Intangibles [Abstract] | |
Components Of Other Intangibles | March 31, 2018 December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 5,188 $ (3,450) $ 1,738 $ 5,188 $ (3,294) $ 1,894 Trade name 122 - 122 122 - 122 Royalty agreement 72 (29) 43 72 (25) 47 Total other intangibles $ 5,382 $ (3,479) $ 1,903 $ 5,382 $ (3,319) $ 2,063 |
Amortization Expense | For the three months ended March 31, ($ in millions) 2018 2017 Amortization expense $ 160 $ 203 |
Fair Value Of Financial Instr31
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | March 31, 2018 December 31, 2017 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 16,470 $ 13,522 $ 16,970 $ 13,994 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Three months ended March 31, 2018 ($ in millions) January 1, 2018 Payments and Retirements New Borrowings March 31, 2018 Interest Rate at March 31, 2018* Secured debt issued by Frontier $ 3,511 $ (41) $ 1,600 $ 5,070 6.64% Unsecured debt issued by Frontier 13,495 (1,651) - 11,844 9.51% Secured debt issued by subsidiaries 107 - - 107 8.35% Unsecured debt issued by subsidiaries 750 - - 750 6.90% Total debt $ 17,863 $ (1,692) $ 1,600 $ 17,771 8.57% Less: Debt Issuance Costs (183) (188) Less: Debt Premium/(Discount) (54) (53) Less: Current Portion (656) (1,060) $ 16,970 $ 16,470 * Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The interest rates at March 31, 2018 represent a weighted average of multiple issuances. |
Senior Unsecured Debt | March 31, 2018 December 31, 2017 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 10/24/2019 (1) $ 236 6.255% (Variable) $ 245 5.445% (Variable) Term loan due 3/31/2021 (2) 1,463 4.630% (Variable) 1,483 4.320% (Variable) Term loan due 10/12/2021 (3) 268 6.255% (Variable) 276 5.445% (Variable) Term loan due 6/15/2024 (4) 1,489 5.630% (Variable) 1,492 5.320% (Variable) Second lien notes due 4/1/2026 1,600 8.500% - IDRB due 5/1/2030 13 6.200% 13 6.200% Equipment financings 1 0.000% 2 0.000% Total secured debt issued by Frontier 5,070 3,511 Unsecured debt issued by Frontier Senior notes due 10/1/2018 491 8.125% 491 8.125% Senior notes due 3/15/2019 404 7.125% 404 7.125% Senior notes due 4/15/2020 172 8.500% 619 8.500% Senior notes due 9/15/2020 55 8.875% 303 8.875% Senior notes due 7/1/2021 89 9.250% 490 9.250% Senior notes due 9/15/2021 220 6.250% 775 6.250% Senior notes due 4/15/2022 500 8.750% 500 8.750% Senior notes due 9/15/2022 2,188 10.500% 2,188 10.500% Senior notes due 1/15/2023 850 7.125% 850 7.125% Senior notes due 4/15/2024 750 7.625% 750 7.625% Senior notes due 1/15/2025 775 6.875% 775 6.875% Senior notes due 9/15/2025 3,600 11.000% 3,600 11.000% Debentures due 11/1/2025 138 7.000% 138 7.000% Debentures due 8/15/2026 2 6.800% 2 6.800% Senior notes due 1/15/2027 346 7.875% 346 7.875% Senior notes due 8/15/2031 945 9.000% 945 9.000% Debentures due 10/1/2034 1 7.680% 1 7.680% Debentures due 7/1/2035 125 7.450% 125 7.450% Debentures due 10/1/2046 193 7.050% 193 7.050% Total unsecured debt issued by Frontier 11,844 13,495 Secured debt issued by subsidiaries Debentures due 11/15/2031 100 8.500% 100 8.500% RUS loan contracts due 1/3/2028 7 6.152% 7 6.152% Total secured debt issued by subsidiaries 107 107 Unsecured debt issued by subsidiaries Debentures due 5/15/2027 200 6.750% 200 6.750% Debentures due 2/1/2028 300 6.860% 300 6.860% Debentures due 2/15/2028 200 6.730% 200 6.730% Debentures due 10/15/2029 50 8.400% 50 8.400% Total unsecured debt issued by subsidiaries 750 750 Total debt $ 17,771 8.3% (5) $ 17,863 8.1% (5) (1) Represents borrowings under the 2014 CoBank Credit Agreement, as defined below. (2) Represents borrowings under the JPM Credit Agreement Term Loan A, as defined below. (3) Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. (4) Represents borrowings under the JPM Credit Agreement Term Loan B, 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 2018 (remaining nine months) $ 614 2019 $ 804 2020 $ 436 2021 $ 1,603 2022 $ 2,703 2023 $ 866 Thereafter $ 10,745 |
Restructuring Costs And Other33
Restructuring Costs And Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring Costs And Other Charges | |
Restructuring Reserve Rollforward | ($ in millions) Balance, January 1, 2018 $ 25 Severance costs 4 Cash payments during the period (20) Balance, March 31, 2018 $ 9 |
Investment And Other Income (Ta
Investment And Other Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment And Other Income [Abstract] | |
Components Of Investment And Other Income | For the three months ended March 31, ( $ in millions ) 2018 2017 Interest and dividend income $ 2 $ 3 Pension and OPEB costs 5 (3) All other, net 1 - Total investment and other income, net $ 8 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended March 31, 2018 2017 Consolidated tax provision at federal statutory rate 21.0 % 35.0 % State income tax provisions, net of federal income tax benefit 7.2 0.2 Remeasurement of certain deferred tax balances (11.9) - Tax reserve adjustment 1.2 (0.6) Changes in certain deferred tax balances 14.2 - Shared-based payments 10.6 (1.8) Federal research and development tax credit (2.0) 0.9 All other, net 0.8 0.5 Effective tax rate 41.1 % 34.2 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Net Loss Per Share [Abstract] | |
Calculation Of Net Income (Loss) Per Common Share | For the three months ended March 31, ( $ in millions and shares in thousands, except per share amounts ) 2018 2017 Net loss used for basic and diluted loss per share: Net loss attributable to Frontier common shareholders $ (33) $ (129) Less: Dividends paid on unvested restricted stock awards - (1) Total basic net loss attributable to Frontier common shareholders $ (33) $ (130) Effect of loss related to dilutive stock units - - Total diluted net loss attributable to Frontier common shareholders $ (33) $ (130) Basic and diluted loss per share: Total weighted average shares and unvested restricted stock awards outstanding - basic and diluted 78,861 78,244 Less: Weighted average unvested restricted stock awards (1,445) (653) Total weighted average shares outstanding - basic and diluted 77,416 77,591 Basic and diluted net loss per share attributable to Frontier common shareholders $ (0.44) $ (1.67) |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock Plans [Abstract] | |
LTIP Target Performance Shares | Number of Shares (in thousands) Balance at January 1, 2018 306 LTIP target performance shares granted, net 284 LTIP target performance shares earned (18) LTIP target performance shares forfeited (8) Balance at March 31, 2018 564 |
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, 2018 633 $ 58.63 $ 4 Restricted stock granted 1,897 $ 8.23 $ 14 Restricted stock vested (219) $ 66.41 $ (2) Restricted stock forfeited (39) $ 57.87 Balance at March 31, 2018 2,272 $ 15.80 $ 17 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2018 (a) $ (345) $ (21) $ (366) Other comprehensive income (loss) before reclassifications (4) - (4) Amounts reclassified from accumulated other comprehensive loss to net loss 4 (1) 3 Net current-period other comprehensive income (loss) - (1) (1) Balance at March 31, 2018 (a) $ (345) $ (22) $ (367) ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2017 (a) $ (403) $ 16 $ (387) Other comprehensive income (loss) before reclassifications 30 - 30 Amounts reclassified from accumulated other comprehensive loss to net loss 32 (1) 31 Net current-period other comprehensive income (loss) 62 (1) 61 Balance at March 31, 2017 (a) $ (341) $ 15 $ (326) (a) Pension and OPEB amounts are net of deferred tax balances of $223 million and $231 million as of January 1, 2018 and 2017, respectively and $2 18 million and $195 million as of March 31, 2018 and 2017, respectively. |
Reclassification Out of Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Loss (a) ($ in millions) Details about Accumulated Other For the three months ended March 31, Affected Line Item in the Statement Where Comprehensive Loss Components 2018 2017 Net Income (Loss) is Presented Amortization of Pension Cost Items (b) Actuarial gains (losses) $ (7) $ (8) Pension settlement costs - (43) (7) (51) Income (loss) before income taxes Tax impact 3 19 Income tax (expense) benefit $ (4) $ (32) Net income (loss) Amortization of OPEB Cost Items (b) Prior-service costs $ 2 $ 2 Actuarial gains (losses) (1) - 1 2 Income (loss) before income taxes Tax impact - (1) Income tax (expense) benefit $ 1 $ 1 Net income (loss) (a) Amounts in parentheses indicate losses. (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 15 - Retirement Plans for additional details) . |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Plans [Abstract] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended March 31, ( $ in millions ) 2018 2017 Components of total pension benefit cost Service cost $ 24 $ 25 Interest cost on projected benefit obligation 30 34 Expected return on plan assets (50) (48) Amortization of unrecognized loss 7 8 Net periodic pension benefit cost $ 11 $ 19 Pension settlement costs - 43 Total pension benefit cost $ 11 $ 62 Postretirement Benefits For the three months ended March 31, ( $ in millions ) 2018 2017 Components of net periodic postretirement benefit cost Service cost $ 5 $ 5 Interest cost on projected benefit obligation 9 10 Amortization of prior service cost/(credit) (2) (2) Amortization of unrecognized (gain) loss 1 - Net periodic postretirement benefit cost $ 13 $ 13 |
Summary Of Significant Accoun40
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | Jul. 10, 2017shares | Mar. 31, 2018USD ($)segmentshares | Mar. 31, 2017USD ($) | Dec. 31, 2017shares | Jul. 09, 2017shares |
Summary Of Significant Accounting Policies [Abstract] | |||||
Number of reportable segments | segment | 1 | ||||
Reverse stock split, conversion ratio | 0.0667 | ||||
Common Stock, Shares Authorized | 175,000,000 | 175,000,000 | 175,000,000 | 1,750,000,000 | |
Common stock, shares issued (in shares) | 80,000,000 | 80,367,000 | 79,532,000 | 1,193,000,000 | |
Common stock, shares outstanding (in shares) | 79,000,000 | 80,251,000 | 78,441,000 | 1,178,000,000 | |
Reverse Stock Split, Fractional Shares Issued | 0 | ||||
Customer surcharges | $ | $ 57 | $ 53 | |||
Video franchise fees | $ | $ 12 | $ 14 | |||
Number of operating segments | segment | 1 |
Summary Of Significant Accoun41
Summary Of Significant Accounting Policies (Schedule Of New Accounting Pronouncement Adoption) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 2,199 | $ 2,356 |
Operating expenses | 1,833 | 2,039 |
Operating income | 366 | $ 317 |
Amounts Without Adoption Of ASC 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 2,193 | |
Operating expenses | 1,834 | |
Operating income | 359 | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | (6) | |
Operating expenses | 1 | |
Operating income | $ (7) |
Recent Accounting Literature (S
Recent Accounting Literature (Schedule Of Impact Of Adoption Of ASU 2017-07) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Network related expenses | $ 483 | $ 493 |
Selling, general and administrative expenses | 469 | 542 |
Investment and other income, net | $ 8 | |
Pension settlement costs | 43 | |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Network related expenses | 494 | |
Selling, general and administrative expenses | 544 | |
Pension settlement costs | 43 | |
Investment and other income, net | 3 | |
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Network related expenses | (1) | |
Selling, general and administrative expenses | (2) | |
Pension settlement costs | (43) | |
Investment and other income, net | (3) | |
Pension settlement costs | $ 43 |
ASC 606 Adoption And Revenue 43
ASC 606 Adoption And Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Expected customer life | 3 years 9 months 18 days | ||
Short-term contract acquisition costs | $ 91 | $ 87 | |
Long-term contract acquisition costs | 121 | 117 | |
Revenue from contract with customers | 2,102 | $ 2,159 | |
Revenue recognized for satisfaction of performance obligations | 24 | ||
Recognition of reductions to revenue related to discounts and other customer incentives | 11 | ||
Increase in contract assets, due to new contracts | 10 | ||
Increase (decrease) in contract liabilities driven by collection and deferral of revenue | 29 | ||
Revenue from contracts with customers | 6,915 | ||
Contributions In Aid Of Construction [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue recognized for satisfaction of performance obligations | 5 | ||
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract cost incurred during the period | 33 | ||
Amortized deferred costs | 25 | ||
Short-term Contract With Customer [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Short-term contract assets | 39 | 40 | |
Short-term contract liabilities | 47 | 41 | |
Short-term Contract With Customer [Member] | Upfront Fees [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Short-term contract liabilities | 13 | ||
Long-term Contract With Customer [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term contract assets | 37 | 37 | |
Long-term contract liabilities | 19 | 19 | |
Long-term Contract With Customer [Member] | Upfront Fees [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term contract liabilities | 9 | ||
Adjustments For ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Short-term contract acquisition costs | (91) | 87 | |
Revenue from contract with customers | $ (96) | ||
Adjustments For ASC 606 [Member] | Short-term Contract With Customer [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Short-term contract assets | 40 | ||
Short-term contract liabilities | 13 | ||
Adjustments For ASC 606 [Member] | Long-term Contract With Customer [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term contract assets | 37 | ||
Long-term contract liabilities | $ 9 |
ASC 606 Adoption And Revenue 44
ASC 606 Adoption And Revenue Recognition (Schedule Of Prior Period Impact Of New Accounting Pronouncement) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 778 | $ 787 | $ 819 |
Contract acquisition costs | 91 | 87 | |
Other current assets | 54 | 68 | 64 |
Property, plant and equipment, net | 14,321 | 14,392 | 14,377 |
Other assets | 228 | 224 | 97 |
Other current liabilities | 334 | 335 | 330 |
Other liabilities | 280 | 308 | 317 |
Deferred income taxes | 1,217 | 1,190 | 1,139 |
Accumulated deficit | (2,089) | (2,109) | $ (2,263) |
Amounts Without Adoption Of ASC 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 810 | ||
Other current assets | 52 | ||
Property, plant and equipment, net | 14,297 | ||
Other assets | 98 | ||
Other current liabilities | 325 | ||
Other liabilities | 290 | ||
Deferred income taxes | 1,164 | ||
Accumulated deficit | (2,248) | ||
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 32 | (32) | |
Contract acquisition costs | (91) | 87 | |
Other current assets | (2) | 4 | |
Property, plant and equipment, net | (24) | 15 | |
Other assets | (130) | 127 | |
Other current liabilities | (9) | 5 | |
Other liabilities | 10 | (9) | |
Deferred income taxes | (53) | 51 | |
Accumulated deficit | $ (159) | $ 154 |
ASC 606 Adoption And Revenue 45
ASC 606 Adoption And Revenue Recognition (Schedule Of Impact Of New Accounting Pronouncement On Balance Sheet And Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | $ 778 | $ 787 | $ 819 | |
Prepaid expenses | 78 | 78 | ||
Contract acquisition costs | 91 | 87 | ||
Other current assets | 54 | 68 | 64 | |
Property, plant and equipment, net | 14,321 | 14,392 | 14,377 | |
Other assets | 228 | 224 | 97 | |
Other current liabilities | 334 | 335 | 330 | |
Other liabilities | 280 | 308 | 317 | |
Deferred income taxes | 1,217 | 1,190 | 1,139 | |
Accumulated deficit | (2,089) | (2,109) | $ (2,263) | |
Revenue | 2,199 | $ 2,356 | ||
Network access expenses | 372 | 411 | ||
Network related expenses | 483 | 493 | ||
Selling, general and administrative expenses | 469 | 542 | ||
Other operating expenses | 509 | |||
Total operating expenses | 1,833 | 2,039 | ||
Operating income | 366 | $ 317 | ||
Amounts Without Adoption Of ASC 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | 810 | |||
Prepaid expenses | 82 | |||
Other current assets | 52 | |||
Property, plant and equipment, net | 14,297 | |||
Other assets | 98 | |||
Other current liabilities | 325 | |||
Other liabilities | 290 | |||
Deferred income taxes | 1,164 | |||
Accumulated deficit | (2,248) | |||
Revenue | 2,193 | |||
Network access expenses | 369 | |||
Network related expenses | 483 | |||
Selling, general and administrative expenses | 473 | |||
Other operating expenses | 509 | |||
Total operating expenses | 1,834 | |||
Operating income | 359 | |||
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | 32 | (32) | ||
Prepaid expenses | 4 | |||
Contract acquisition costs | (91) | 87 | ||
Other current assets | (2) | 4 | ||
Property, plant and equipment, net | (24) | 15 | ||
Other assets | (130) | 127 | ||
Other current liabilities | (9) | 5 | ||
Other liabilities | 10 | (9) | ||
Deferred income taxes | (53) | 51 | ||
Accumulated deficit | (159) | $ 154 | ||
Revenue | (6) | |||
Network access expenses | (3) | |||
Selling, general and administrative expenses | 4 | |||
Total operating expenses | 1 | |||
Operating income | $ (7) |
ASC 606 Adoption And Revenue 46
ASC 606 Adoption And Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 2,102 | $ 2,159 |
Revenue | 2,199 | 2,356 |
Data And Internet Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 985 | 993 |
Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 702 | 751 |
Video Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 280 | 347 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 135 | 68 |
Subsidy And Other Regulatory Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 97 | 197 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,128 | 1,164 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 974 | $ 995 |
Amounts Without Adoption Of ASC 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,006 | |
Revenue | 2,193 | |
Amounts Without Adoption Of ASC 606 [Member] | Data And Internet Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 942 | |
Amounts Without Adoption Of ASC 606 [Member] | Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 670 | |
Amounts Without Adoption Of ASC 606 [Member] | Video Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 309 | |
Amounts Without Adoption Of ASC 606 [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 85 | |
Amounts Without Adoption Of ASC 606 [Member] | Subsidy And Other Regulatory Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 187 | |
Amounts Without Adoption Of ASC 606 [Member] | Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,089 | |
Amounts Without Adoption Of ASC 606 [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 917 | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (96) | |
Revenue | (6) | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Data And Internet Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (43) | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (32) | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Video Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 29 | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (50) | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Subsidy And Other Regulatory Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 90 | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (39) | |
Accounting Standards Update 2014-09 [Member] | Adjustments For ASC 606 [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ (57) |
ASC 606 Adoption And Revenue 47
ASC 606 Adoption And Revenue Recognition (Contract Asset, Liability, And Receivables Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Contract Asset, Liability, And Receivables Balances [Line Items] | ||||
Receivables | $ 778 | $ 787 | $ 819 | |
Advanced billings | 271 | 270 | $ 270 | |
Increase/Decrease | (9) | $ (105) | ||
Increase (decrease) in advanced billings | 1 | |||
Short-term Contract With Customer [Member] | ||||
Contract Asset, Liability, And Receivables Balances [Line Items] | ||||
Short-term contract assets | 39 | 40 | ||
Short-term contract liabilities | 47 | 41 | ||
Increase/Decrease in contract assets | (1) | |||
Increase/Decrease in contract liabilities | 6 | |||
Long-term Contract With Customer [Member] | ||||
Contract Asset, Liability, And Receivables Balances [Line Items] | ||||
Long-term contract assets | 37 | 37 | ||
Long-term contract liabilities | 19 | $ 19 | ||
Increase/Decrease in contract assets | ||||
Increase/Decrease in contract liabilities |
ASC 606 Adoption And Revenue 48
ASC 606 Adoption And Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | $ 6,915 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | 3,276 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | 2,202 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | 669 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | 316 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | 196 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers | $ 256 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) $ in Millions | Jan. 01, 2018USD ($) |
Adjustments For ASC 606 [Member] | Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Allowance for Doubtful Accounts Receivable, Recoveries | $ 32 |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts Receivable [Abstract] | |||
Retail and wholesale | $ 787 | $ 801 | |
Other | 90 | 87 | |
Less: Allowance for doubtful accounts | (99) | (69) | |
Accounts receivable, net | $ 778 | $ 787 | $ 819 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts Receivable [Abstract] | ||
Bad debt expense | $ 19 | $ 32 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Narative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Property, Plant And Equipment [Abstract] | |
Proceeds from sale of property | $ 10 |
Sale leaseback, gains | $ 9 |
Sale Leaseback Transaction, Deferred Gain, Amortization Period | 2 years |
Sale leaseback, gain recognized | $ 8 |
Sale leaseback, gain remaining | $ 44 |
Property, Plant And Equipment53
Property, Plant And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Property, Plant And Equipment [Abstract] | |||
Property, plant and equipment | $ 26,786 | $ 26,496 | |
Less: Accumulated depreciation | (12,465) | (12,119) | |
Property, plant and equipment, net | $ 14,321 | $ 14,392 | $ 14,377 |
Property, Plant And Equipment54
Property, Plant And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant And Equipment [Abstract] | ||
Depreciation expense | $ 345 | $ 376 |
Goodwill And Other Intangible55
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Impairment | $ 2,788 | $ 2,788 |
Customer Base [Member] | Maximum [Member] | ||
Goodwill [Line Items] | ||
Estimated useful life | 12 years | |
Customer Base [Member] | Minimum [Member] | ||
Goodwill [Line Items] | ||
Estimated useful life | 8 years |
Goodwill And Other Intangible56
Goodwill And Other Intangibles (Components Of Other Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,382 | $ 5,382 |
Accumulated Amortization | (3,479) | (3,319) |
Net Carrying Amount | 1,903 | 2,063 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,188 | 5,188 |
Accumulated Amortization | (3,450) | (3,294) |
Net Carrying Amount | 1,738 | 1,894 |
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 | 72 |
Accumulated Amortization | (29) | (25) |
Net Carrying Amount | $ 43 | $ 47 |
Goodwill And Other Intangible57
Goodwill And Other Intangibles (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill And Other Intangibles [Abstract] | ||
Amortization expense | $ 160 | $ 203 |
Fair Value Of Financial Instr58
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 16,470 | $ 16,970 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Long-term debt | $ 13,522 | $ 13,994 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 19, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Payments to retire debt instruments | $ 1,692,000,000 | ||
Line of credit facility, current borrowings | 0 | ||
Gain on extinguishment of debt | 33,000,000 | ||
Proceeds from long-term debt borrowings | 1,600,000,000 | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowings | 62,000,000 | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Payments to retire debt instruments | 41,000,000 | ||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,600,000,000 | $ 1,600,000,000 | |
Debt instrument, maturity date | Apr. 1, 2026 | ||
Interest Rate | 8.50% | 8.50% | |
Secured Debt [Member] | Term Loan Due 3/31/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Mar. 31, 2021 | ||
Interest Rate | 4.63% | 4.32% | |
Secured Debt [Member] | Term Loan Due 10/12/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 12, 2021 | ||
Interest Rate | 6.255% | 5.445% | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Payments to retire debt instruments | $ 1,651,000,000 | ||
Unsecured Debt [Member] | Senior Note Due 10/1/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 1, 2018 | ||
Interest Rate | 8.125% | 8.125% | |
Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Payments to retire debt instruments | $ 400,000,000 | ||
Debt instrument, maturity date | Jul. 1, 2021 | ||
Interest Rate | 9.25% | 9.25% | |
Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Mar. 15, 2019 | ||
Interest Rate | 7.125% | 7.125% | |
Unsecured Debt [Member] | Senior Note Due 4/15/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Apr. 15, 2020 | ||
Interest Rate | 8.50% | 8.50% | |
Repurchase of senior notes | $ 447,000,000 | ||
Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Payments to retire debt instruments | $ 249,000,000 | ||
Debt instrument, maturity date | Sep. 15, 2020 | ||
Interest Rate | 8.875% | 8.875% | |
Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Payments to retire debt instruments | $ 555,000,000 | ||
Debt instrument, maturity date | Sep. 15, 2021 | ||
Interest Rate | 6.25% | 6.25% | |
JP Morgan Combined Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Acceleration Clause | The maturities of the Term Loan A, the Revolver, and the Term Loan B, in each case if still outstanding, will be accelerated in the following circumstances: (i) if, 91 days before the maturity date of any series of Senior Notes maturing in 2020, 2023 and 2024, more than $500 million in principal amount remains outstanding on such series; or (ii) if, 91 days before the maturity date of the first series of Senior Notes maturing in 2021 or 2022, more than $500 million in principal amount remains outstanding, in the aggregate, on the two series of Senior Notes maturing in such year. | ||
Days Prior To Maturity To Meet Threshold To Not Accelerate Debt | 91 days | ||
Maximum Debt Threshold To Not Accelerate Debt | $ 500,000,000 | ||
Debt Instrument, Covenant Description | The interest rate on the Term Loan A as of March 31, 2018 was LIBOR plus 2.75%. Interest rate margins on the Term Loan B (2.75% for Base Rate borrowings and 3.75% for LIBOR borrowings) are not subject to adjustment. The security package under the JPM Credit Agreement includes pledges of the equity interests in certain Frontier subsidiaries and guaranties by certain Frontier subsidiaries. | ||
JP Morgan Revolving Credit Facility 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Feb. 27, 2022 | ||
Line of credit facility maximum borrowing capacity | $ 850,000,000 | ||
JP Morgan Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,625,000,000 | ||
Debt instrument, maturity date | Mar. 31, 2021 | ||
JP Morgan Term Loan A [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Effective basis spread | 2.75% | ||
JP Morgan Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,500,000,000 | ||
Debt instrument, maturity date | Jun. 15, 2024 | ||
JP Morgan Term Loan B [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 2.75% | ||
JP Morgan Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 3.75% | ||
CoBank Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Effective basis spread | 4.375% | ||
CoBank Term Loan 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 350,000,000 | ||
Debt instrument, maturity date | Oct. 24, 2019 | ||
CoBank Term Loan 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 315,000,000 | ||
Debt instrument, maturity date | Oct. 12, 2021 | ||
Minimum [Member] | JP Morgan Term Loan A and Revolver [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 0.75% | ||
Minimum [Member] | JP Morgan Term Loan A and Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 1.75% | ||
Minimum [Member] | CoBank Credit Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 0.875% | ||
Minimum [Member] | CoBank Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 1.875% | ||
Maximum [Member] | JP Morgan Term Loan A and Revolver [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 1.75% | ||
Maximum [Member] | JP Morgan Term Loan A and Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 2.75% | ||
Maximum [Member] | CoBank Credit Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 3.875% | ||
Maximum [Member] | CoBank Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Margin | 4.875% |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | $ 17,863 | ||
Payments and Retirements | (1,692) | ||
New Borrowings | 1,600 | ||
Long-term debt, ending balance | 17,771 | ||
Long-term debt | 17,863 | $ 17,771 | $ 17,863 |
Less: Debt Issuance Cost | (188) | (183) | |
Less: Debt Premium/(Discount) | 53 | 54 | |
Less: Current Portion | (1,060) | (656) | |
Long-term Debt, Excluding Current Maturities | $ 16,470 | 16,970 | |
Weighted average interest rate | 8.57% | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 3,511 | ||
Payments and Retirements | (41) | ||
New Borrowings | 1,600 | ||
Long-term debt, ending balance | 5,070 | ||
Long-term debt | 3,511 | $ 5,070 | 3,511 |
Weighted average interest rate | 6.64% | ||
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 13,495 | ||
Payments and Retirements | (1,651) | ||
New Borrowings | |||
Long-term debt, ending balance | 11,844 | ||
Long-term debt | 13,495 | $ 11,844 | 13,495 |
Weighted average interest rate | 9.51% | ||
Secured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 107 | ||
Long-term debt, ending balance | 107 | ||
Long-term debt | 107 | $ 107 | 107 |
Weighted average interest rate | 8.35% | ||
Unsecured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 750 | ||
Long-term debt, ending balance | 750 | ||
Long-term debt | $ 750 | $ 750 | $ 750 |
Weighted average interest rate | 6.90% |
Long-Term Debt (Senior Unsecure
Long-Term Debt (Senior Unsecured Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 19, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 17,771 | $ 17,863 | |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 5,070 | 3,511 | |
Secured Debt [Member] | Term Loan Due 10/24/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 236 | $ 245 | |
Interest Rate | 6.255% | 5.445% | |
Debt instrument, maturity date | Oct. 24, 2019 | ||
Secured Debt [Member] | Term Loan Due 3/31/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,463 | $ 1,483 | |
Interest Rate | 4.63% | 4.32% | |
Debt instrument, maturity date | Mar. 31, 2021 | ||
Secured Debt [Member] | Term Loan Due 10/12/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 268 | $ 276 | |
Interest Rate | 6.255% | 5.445% | |
Debt instrument, maturity date | Oct. 12, 2021 | ||
Secured Debt [Member] | Term Loan Due 6/15/2024 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,489 | $ 1,492 | |
Interest Rate | 5.63% | 5.32% | |
Debt instrument, maturity date | Jun. 15, 2024 | ||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,600 | ||
Interest Rate | 8.50% | 8.50% | |
Debt instrument, maturity date | Apr. 1, 2026 | ||
Secured Debt [Member] | IDRB Due 5/1/2030 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 13 | $ 13 | |
Interest Rate | 6.20% | 6.20% | |
Debt instrument, maturity date | May 1, 2030 | ||
Secured Debt [Member] | Equipment Financings [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1 | $ 2 | |
Interest Rate | 0.00% | 0.00% | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 11,844 | $ 13,495 | |
Unsecured Debt [Member] | Senior Note Due 10/1/2018 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 491 | $ 491 | |
Interest Rate | 8.125% | 8.125% | |
Debt instrument, maturity date | Oct. 1, 2018 | ||
Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 404 | $ 404 | |
Interest Rate | 7.125% | 7.125% | |
Debt instrument, maturity date | Mar. 15, 2019 | ||
Unsecured Debt [Member] | Senior Note Due 4/15/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 172 | $ 619 | |
Interest Rate | 8.50% | 8.50% | |
Debt instrument, maturity date | Apr. 15, 2020 | ||
Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 55 | $ 303 | |
Interest Rate | 8.875% | 8.875% | |
Debt instrument, maturity date | Sep. 15, 2020 | ||
Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 89 | $ 490 | |
Interest Rate | 9.25% | 9.25% | |
Debt instrument, maturity date | Jul. 1, 2021 | ||
Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 220 | $ 775 | |
Interest Rate | 6.25% | 6.25% | |
Debt instrument, maturity date | Sep. 15, 2021 | ||
Unsecured Debt [Member] | Senior Note Due 4/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 500 | $ 500 | |
Interest Rate | 8.75% | 8.75% | |
Debt instrument, maturity date | Apr. 15, 2022 | ||
Unsecured Debt [Member] | Senior Note Due 9/15/2022 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 2,188 | $ 2,188 | |
Interest Rate | 10.50% | 10.50% | |
Debt instrument, maturity date | Sep. 15, 2022 | ||
Unsecured Debt [Member] | Senior Note Due 1/15/2023 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 850 | $ 850 | |
Interest Rate | 7.125% | 7.125% | |
Debt instrument, maturity date | Jan. 15, 2023 | ||
Unsecured Debt [Member] | Senior Note Due 4/15/2024 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 750 | $ 750 | |
Interest Rate | 7.625% | 7.625% | |
Debt instrument, maturity date | Apr. 15, 2024 | ||
Unsecured Debt [Member] | Senior Note Due 1/15/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 775 | $ 775 | |
Interest Rate | 6.875% | 6.875% | |
Debt instrument, maturity date | Jan. 15, 2025 | ||
Unsecured Debt [Member] | Senior Note Due 9/15/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 3,600 | $ 3,600 | |
Interest Rate | 11.00% | 11.00% | |
Debt instrument, maturity date | Sep. 15, 2025 | ||
Unsecured Debt [Member] | Debenture Due 11/1/2025 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 138 | $ 138 | |
Interest Rate | 7.00% | 7.00% | |
Debt instrument, maturity date | Nov. 1, 2025 | ||
Unsecured Debt [Member] | Debenture Due 8/15/2026 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 2 | $ 2 | |
Interest Rate | 6.80% | 6.80% | |
Debt instrument, maturity date | Aug. 15, 2026 | ||
Unsecured Debt [Member] | Senior Note Due 1/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 346 | $ 346 | |
Interest Rate | 7.875% | 7.875% | |
Debt instrument, maturity date | Jan. 15, 2027 | ||
Unsecured Debt [Member] | Senior Note Due 8/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 945 | $ 945 | |
Interest Rate | 9.00% | 9.00% | |
Debt instrument, maturity date | Aug. 15, 2031 | ||
Unsecured Debt [Member] | Debenture Due 10/1/2034 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1 | $ 1 | |
Interest Rate | 7.68% | 7.68% | |
Debt instrument, maturity date | Oct. 1, 2034 | ||
Unsecured Debt [Member] | Debenture Due 7/1/2035 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 125 | $ 125 | |
Interest Rate | 7.45% | 7.45% | |
Debt instrument, maturity date | Jul. 1, 2035 | ||
Unsecured Debt [Member] | Debenture Due 10/1/2046 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 193 | $ 193 | |
Interest Rate | 7.05% | 7.05% | |
Debt instrument, maturity date | Oct. 1, 2046 | ||
Secured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 107 | $ 107 | |
Secured Subsidiary Debt [Member] | Debenture Due 11/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 100 | $ 100 | |
Interest Rate | 8.50% | 8.50% | |
Debt instrument, maturity date | Nov. 15, 2031 | ||
Secured Subsidiary Debt [Member] | RUS Loan Contracts Due 1/3/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 7 | $ 7 | |
Interest Rate | 6.152% | 6.152% | |
Debt instrument, maturity date | Jan. 3, 2028 | ||
Unsecured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 750 | $ 750 | |
Unsecured Subsidiary Debt [Member] | Debenture Due 5/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 200 | $ 200 | |
Interest Rate | 6.75% | 6.75% | |
Debt instrument, maturity date | May 15, 2027 | ||
Unsecured Subsidiary Debt [Member] | Debenture Due 2/1/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 300 | $ 300 | |
Interest Rate | 6.86% | 6.86% | |
Debt instrument, maturity date | Feb. 1, 2028 | ||
Unsecured Subsidiary Debt [Member] | Debenture Due 2/15/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 200 | $ 200 | |
Interest Rate | 6.73% | 6.73% | |
Debt instrument, maturity date | Feb. 15, 2028 | ||
Unsecured Subsidiary Debt [Member] | Debenture Due 10/15/2029 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 50 | $ 50 | |
Interest Rate | 8.40% | 8.40% | |
Debt instrument, maturity date | Oct. 15, 2029 | ||
Secured Debt, Unsecured Debt, Secured Subsidiary Debt, And Unsecured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 17,771 | $ 17,863 | |
Weighted average interest rate | 8.30% | 8.10% |
Long-Term Debt (Debt Maturities
Long-Term Debt (Debt Maturities By Year) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Long-Term Debt [Abstract] | |
Principal Payments 2018 (remaining nine months) | $ 614 |
Principal Payments 2019 | 804 |
Principal Payments 2020 | 436 |
Principal Payments 2021 | 1,603 |
Principal Payments 2022 | 2,703 |
Principal Payments 2023 | 866 |
Principal Payments Thereafter | $ 10,745 |
Restructuring Costs And Other63
Restructuring Costs And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Restructuring Costs And Other Charges | |||
Restructuring Reserve | $ 9 | $ 25 | |
Severance costs | $ 4 | $ 12 |
Restructuring Costs And Other64
Restructuring Costs And Other Charges (Restructuring Reserve Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | $ 25 | |
Severance costs | 4 | $ 12 |
Cash payments during the period | (20) | |
Restructuring Reserve, Ending Balance | $ 9 |
Investment And Other Income (De
Investment And Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investment And Other Income [Abstract] | ||
Interest and dividend income | $ 2 | $ 3 |
Pension and OPEB costs | 5 | $ (3) |
All other, net | 1 | |
Total investment and other income, net | $ 8 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Deferred Tax Assets, Net, Current | $ 0 | $ 2 |
Accounting Standards Update 2014-09 [Member] | ||
Income Tax Contingency [Line Items] | ||
Current Income Tax Expense (Benefit) | $ 2 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Abstract] | ||
Consolidated tax provision at federal statutory rate (in hundredths) | 21.00% | 35.00% |
State income tax provisions, net of federal income tax benefit (in hundredths) | 7.20% | 0.20% |
Pension/OPEB remeasurement | (11.90%) | |
Tax reserve adjustment (in hundredths) | 1.20% | (0.60%) |
Changes in certain deferred tax balances (in hundredths) | 14.20% | |
Shared-based payments (in hundreths) | 10.60% | (1.80%) |
Federal research and development tax credit (in hundreths) | (2.00%) | 0.90% |
All other, net (in hundredths) | 0.80% | 0.50% |
Effective tax rate (in hundredths) | 41.10% | 34.20% |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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) | 1,334,000 | 2,667,000 |
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) | 244,337 | 139,666 |
Expense recognized during the period | $ 0 | $ (2) |
Series A 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 Loss Per Share (Calculation
Net Loss Per Share (Calculation Of Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Loss Per Share [Abstract] | ||
Net loss attributable to Frontier common shareholders | $ (33) | $ (129) |
Less: Dividends paid on unvested restricted stock awards | (1) | |
Total basic net loss attributable to Frontier common shareholders | (33) | (130) |
Total diluted net loss attributable to Frontier common shareholders | $ (33) | $ (130) |
Total weighted average shares and unvested restricted stock awards outstanding - basic and diluted | 78,861 | 78,244 |
Less: Weighted average unvested restricted stock awards (in shares) | (1,445) | (653) |
Total weighted average shares outstanding - basic and diluted (in shares) | 77,416 | 77,591 |
Basic and diluted net loss per share attributable to Frontier common shareholders | $ (0.44) | $ (1.67) |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ / shares in Units, $ in Millions | Feb. 14, 2018shares | Mar. 31, 2018USD ($)ShareBasedCompensationPlan$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plan under which grants were made | ShareBasedCompensationPlan | 7 | |||
Number of stock-based compensation plan under which grants were not made | ShareBasedCompensationPlan | 6 | |||
EIP Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for grant under the plans (in shares) | shares | 5,667,000 | |||
Shares available for grant under the plan (in shares) | shares | 2,270,000 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognized during the period | $ 1 | $ (1) | ||
Shares granted (in shares) | shares | 284,000 | 284,000 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognized during the period | $ 3 | $ 4 | ||
Shares granted (in shares) | shares | 1,897,000 | 431,000 | ||
Restricted Stock | ||||
Restricted stock granted, Aggregate fair value | $ 14 | $ 14 | ||
Fair value of unvested restricted stock | $ 17 | $ 24 | $ 4 | |
Restriced stock, grant date fair value per share | $ / shares | $ 15.80 | $ 49.95 | $ 58.63 | |
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ 43 | |||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 2 years |
Stock Plans (LTIP Target Perfor
Stock Plans (LTIP Target Performance Shares) (Details) - Performance Shares [Member] - shares | Feb. 14, 2018 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance at beginning of period (in shares) | 306,000 | |
Shares granted (in shares) | 284,000 | 284,000 |
Shares earned (in shares) | (18,000) | |
Shares forfeited (in shares) | (8,000) | |
Balance at end of period (in shares) | 564,000 |
Stock Plans (Restricted Shares
Stock Plans (Restricted Shares Outstanding) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance at beginning of period (in shares) | 633,000 | |
Shares granted (in shares) | 1,897,000 | 431,000 |
Shares earned (in shares) | (219,000) | |
Shares forfeited (in shares) | (39,000) | |
Balance at end of period (in shares) | 2,272,000 | |
Balance at beginning of period (in dollars per shares) | $ 58.63 | |
Restricted stock granted (in dollars per shares) | 8.23 | |
Restricted stock vested (in dollars per shares) | 66.41 | |
Restricted stock forfeited (in dollars per shares) | 57.87 | |
Balance at end of period (in dollars per shares) | $ 15.80 | $ 49.95 |
Balance at beginning of period, Aggregate fair value | $ 4 | |
Restricted stock granted, Aggregate fair value | 14 | $ 14 |
Restricted stock vested, Aggregate fair value | (2) | |
Balance at end of period, Aggregate fair value | $ 17 | $ 24 |
Comprehensive Income (Loss) (Na
Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | $ 48 | |
Pension Costs/Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (4) | 30 |
Pension Costs/Benefits [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income, Recognition of net actuarial loss for pension settlement costs, before tax | 43 | |
Postretirement Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss, Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 2,274 | |||
Balance | 2,396 | |||
Pension Costs/Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (345) | $ (403) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (4) | 30 | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | 4 | 32 | ||
Net current-period other comprehensive income (loss), before tax | 62 | |||
Balance | (345) | (341) | ||
Postretirement Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (21) | 16 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | ||||
Amounts reclassified from accumulated other comprehensive loss, before tax | (1) | (1) | ||
Net current-period other comprehensive income (loss), before tax | (1) | (1) | ||
Balance | (22) | 15 | ||
Deferred Taxes On Pension And OPEB Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Deferred tax items | 218 | 195 | $ 223 | $ 231 |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (366) | (387) | ||
Other Comprehensive income (loss), before reclassifications, Net of Tax | (4) | 30 | ||
Amounts reclassified from accumulated other comprehensive loss to net loss, net of tax | 3 | 31 | ||
Other Comprehensive Income, Recognition Of Net Actuarial Loss For Pension Settlement Costs, Net of Tax | 61 | |||
Other Comprehensive Income (loss) and Settlement Costs, Net of Tax | (1) | |||
Balance | $ (367) | (326) | ||
Accumulated Other Comprehensive Loss [Member] | Pension Costs/Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income, Recognition of net actuarial loss for pension settlement costs, before tax | $ 43 |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Costs/Benefits [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | $ 4 | $ 32 |
Postretirement Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | (1) | (1) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Costs/Benefits [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | (7) | (8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Costs/Benefits [Member] | Accumulated Defined Benefit Plans Adjustment, Net Actuarial Loss for Pension Settlement Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | (43) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Costs/Benefits [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | 7 | 51 |
Amounts reclassified from AOCI, tax | 3 | 19 |
Amounts reclassified from AOCI, net of tax | (4) | (32) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | (2) | (2) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | (1) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss, before tax | (1) | (2) |
Amounts reclassified from AOCI, tax | (1) | |
Amounts reclassified from AOCI, net of tax | $ 1 | $ 1 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 255 | |||
Defined Benefit Plan, Settlements Benefit obligation threshold | 234 | |||
Pension settlement costs | 43 | |||
Liability, Retirement and Postemployment Benefits | 655 | $ 699 | ||
Capitalization of pension and OPEB expense related to engineering and plant construction | $ 7 | 7 | ||
Defined benefit plan, cash contributions by employer | 31 | |||
Plan assets | 2,558 | $ 2,674 | ||
Decrease in pension assets | $ 116 | |||
Percentage of increase in pension plan | 4.00% | |||
Negative investment returns | $ (45) | |||
Benefit payments | $ 102 | |||
Pension Costs/Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension settlement costs | $ 43 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension settlement costs | $ 43 | |
Pension Costs/Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 24 | 25 |
Interest cost on projected benefit obligation | 30 | 34 |
Expected return on plan assets | (50) | (48) |
Amortization of unrecognized (gain) loss | 7 | 8 |
Net periodic pension benefit cost, before settlement | 11 | 19 |
Pension settlement costs | 43 | |
Net periodic benefit cost | 11 | 62 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 5 | 5 |
Interest cost on projected benefit obligation | 9 | 10 |
Amortization of prior service cost/(credit) | (2) | (2) |
Amortization of unrecognized (gain) loss | 1 | |
Net periodic benefit cost | $ 13 | $ 13 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Regulatory Commitments [Abstract] | |
Frozen high-cost phasedown support | $ 6 |
Number of households to be serviced under regulatory funded programs | 774,000 |
Number of States in our Territory | 29 |
CAF II [ Member] | |
Regulatory Commitments [Abstract] | |
Annual support offered by the Federal Communications Commission | $ 332 |