Document and Entity Information
Document and Entity Information - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FRONTIER COMMUNICATIONS CORPORATION | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Central Index Key | 0000020520 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity Tax Identification Number | 06-0619596 | |
Entity File Number | 001-11001 | |
Entity Address, Address Line One | 401 Merritt 7 | |
Entity Address, City or Town | Norwalk | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06851 | |
City Area Code | 203 | |
Local Phone Number | 614-5600 | |
Title of 12(b) Security | Common Stock, par value $0.25 per share | |
Security Exchange Name | NASDAQ | |
Trading Symbol | FTR | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,370 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 683 | $ 354 |
Accounts receivable, less allowances of $91 and $105, respectively | 654 | 723 |
Contract acquisition costs | 105 | 107 |
Prepaid expenses | 110 | 86 |
Assets held for sale | 1,402 | |
Income taxes and other current assets | 55 | 60 |
Total current assets | 3,009 | 1,330 |
Property, plant and equipment, net | 12,973 | 14,187 |
Goodwill | 6,383 | |
Other intangibles, net | 1,120 | 1,494 |
Other assets | 459 | 265 |
Total assets | 17,561 | 23,659 |
Current liabilities: | ||
Long-term debt due within one year | 994 | 814 |
Accounts payable | 453 | 495 |
Advanced billings | 227 | 256 |
Accrued other taxes | 213 | 182 |
Accrued interest | 294 | 381 |
Pension and other postretirement benefits | 39 | 39 |
Liabilities held for sale | 134 | |
Other current liabilities | 386 | 394 |
Total current liabilities | 2,740 | 2,561 |
Deferred income taxes | 580 | 1,109 |
Pension and other postretirement benefits | 1,641 | 1,750 |
Other liabilities | 398 | 281 |
Long-term debt | 16,305 | 16,358 |
Equity (Deficit): | ||
Common stock, $0.25 par value (175,000 authorized shares, 106,025 issued and 105,370 and 105,536 outstanding, at September 30, 2019 and December 31, 2018, respectively) | 27 | 27 |
Additional paid-in capital | 4,810 | 4,802 |
Accumulated deficit | (8,411) | (2,752) |
Accumulated other comprehensive loss, net of tax | (517) | (463) |
Treasury common stock | (12) | (14) |
Total equity (deficit) | (4,103) | 1,600 |
Total liabilities and equity (deficit) | $ 17,561 | $ 23,659 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 91 | $ 105 |
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) | 106,025,000 | 106,025,000 |
Common stock, shares outstanding (in shares) | 105,370,000 | 105,536,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements Of Operations [Abstract] | ||||
Revenue | $ 1,997 | $ 2,126 | $ 6,165 | $ 6,487 |
Operating expenses: | ||||
Network access expenses | 307 | 353 | 963 | 1,094 |
Network related expenses | 464 | 476 | 1,365 | 1,437 |
Selling, general and administrative expenses | 445 | 445 | 1,346 | 1,374 |
Depreciation and amortization | 422 | 471 | 1,360 | 1,462 |
Goodwill impairment | 276 | 400 | 5,725 | 400 |
Loss on disposal of Northwest Operations | 30 | 414 | ||
Restructuring costs and other charges | 27 | 14 | 86 | 20 |
Total operating expenses | 1,971 | 2,159 | 11,259 | 5,787 |
Operating income (loss) | 26 | (33) | (5,094) | 700 |
Investment and other income (loss), net | (10) | 3 | (28) | 16 |
Pension settlement costs | 9 | 34 | ||
Gain (loss) on extinguishment of debt | (2) | (20) | 31 | |
Interest expense | 382 | 389 | 1,144 | 1,148 |
Loss before income taxes | (366) | (430) | (6,286) | (435) |
Income tax benefit | (21) | (4) | (537) | (11) |
Net loss | (345) | (426) | (5,749) | (424) |
Less: Dividends on preferred stock | 107 | |||
Net loss attributable to Frontier common shareholders | $ (345) | $ (426) | $ (5,749) | $ (531) |
Basic and diluted net loss per share attributable to Frontier common shareholders | $ (3.31) | $ (4.11) | $ (55.26) | $ (6.09) |
Total weighted average shares outstanding - basic and diluted | 104,135 | 103,665 | 104,031 | 87,138 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net loss | $ (345) | $ (426) | $ (5,749) | $ (424) |
Other comprehensive income (loss), net of tax | 8 | (34) | 25 | 36 |
Comprehensive loss | $ (337) | $ (460) | $ (5,724) | $ (388) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity (Deficit) - 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, 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) | |||||
Impact of adoption of new accounting principle | Accounting Standards Update 2014-09 [Member] | 154 | 154 | |||||
Stock plans | (134) | $ 136 | 2 | ||||
Stock plans (in shares) | 835 | 975 | |||||
Dividends on preferred stock ($5.56 per share) | (53) | (53) | |||||
Net income (loss) | 20 | 20 | |||||
Other comprehensive income (loss), 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) | |||||
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) | |||||
Net income (loss) | (424) | ||||||
Other comprehensive income (loss), net of tax | 36 | 36 | |||||
Balance at Sep. 30, 2018 | $ 27 | 4,793 | (2,533) | (330) | $ (14) | 1,943 | |
Common Stock Balance (in shares) at Sep. 30, 2018 | 106,025 | (472) | |||||
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) | |||||
Conversion of preferred stock, shares converted | (19,250) | 25,529 | |||||
Conversion of preferred stock, amount issued | $ 7 | (7) | |||||
Stock plans | 2 | $ 4 | 6 | ||||
Stock plans (in shares) | 129 | (99) | |||||
Dividends on preferred stock ($5.56 per share) | (54) | (54) | |||||
Net income (loss) | (18) | (18) | |||||
Other comprehensive income (loss), net of tax | 71 | 71 | |||||
Balance at Jun. 30, 2018 | $ 27 | 4,788 | (2,107) | (296) | $ (11) | 2,401 | |
Common Stock Balance (in shares) at Jun. 30, 2018 | 106,025 | (215) | |||||
Stock plans | 5 | $ (3) | 2 | ||||
Stock plans (in shares) | (257) | ||||||
Net income (loss) | (426) | (426) | |||||
Other comprehensive income (loss), net of tax | (34) | (34) | |||||
Balance at Sep. 30, 2018 | $ 27 | 4,793 | (2,533) | (330) | $ (14) | 1,943 | |
Common Stock Balance (in shares) at Sep. 30, 2018 | 106,025 | (472) | |||||
Balance at Dec. 31, 2018 | $ 27 | 4,802 | (2,752) | (463) | $ (14) | $ 1,600 | |
Common Stock Balance (in shares) at Dec. 31, 2018 | 106,025 | (489) | 105,536 | ||||
Impact of adoption of new accounting principle | Accounting Standards Update 2016-02 [Member] | 11 | $ 11 | |||||
Impact of adoption of new accounting principle | Accounting Standards Update 2018-02 [Member] | 79 | (79) | |||||
Stock plans | 3 | 3 | |||||
Stock plans (in shares) | (229) | ||||||
Net income (loss) | (87) | (87) | |||||
Other comprehensive income (loss), net of tax | 8 | 8 | |||||
Balance at Mar. 31, 2019 | $ 27 | 4,805 | (2,749) | (534) | $ (14) | 1,535 | |
Common Stock Balance (in shares) at Mar. 31, 2019 | 106,025 | (718) | |||||
Balance at Dec. 31, 2018 | $ 27 | 4,802 | (2,752) | (463) | $ (14) | $ 1,600 | |
Common Stock Balance (in shares) at Dec. 31, 2018 | 106,025 | (489) | 105,536 | ||||
Impact of adoption of new accounting principle | Accounting Standards Update 2016-02 [Member] | $ 11 | ||||||
Impact of adoption of new accounting principle | Accounting Standards Update 2018-02 [Member] | (79) | (79) | |||||
Net income (loss) | (5,749) | ||||||
Other comprehensive income (loss), net of tax | 25 | 25 | |||||
Balance at Sep. 30, 2019 | $ 27 | 4,810 | (8,411) | (517) | $ (12) | $ (4,103) | |
Common Stock Balance (in shares) at Sep. 30, 2019 | 106,025 | (655) | 105,370 | ||||
Balance at Mar. 31, 2019 | $ 27 | 4,805 | (2,749) | (534) | $ (14) | $ 1,535 | |
Common Stock Balance (in shares) at Mar. 31, 2019 | 106,025 | (718) | |||||
Stock plans | $ 2 | 2 | |||||
Stock plans (in shares) | 68 | ||||||
Net income (loss) | (5,317) | (5,317) | |||||
Other comprehensive income (loss), net of tax | 9 | 9 | |||||
Balance at Jun. 30, 2019 | $ 27 | 4,805 | (8,066) | (525) | $ (12) | (3,771) | |
Common Stock Balance (in shares) at Jun. 30, 2019 | 106,025 | (650) | |||||
Stock plans | 5 | 5 | |||||
Stock plans (in shares) | (5) | ||||||
Net income (loss) | (345) | (345) | |||||
Other comprehensive income (loss), net of tax | 8 | 8 | |||||
Balance at Sep. 30, 2019 | $ 27 | $ 4,810 | $ (8,411) | $ (517) | $ (12) | $ (4,103) | |
Common Stock Balance (in shares) at Sep. 30, 2019 | 106,025 | (655) | 105,370 |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity (Deficit) (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Consolidated Statements Of Equity (Deficit) [Abstract] | ||
Dividends on preferred stock per share | $ 5.56 | $ 5.56 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows provided from (used by) operating activities: | ||
Net loss | $ (5,749) | $ (424) |
Adjustments to reconcile net loss to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 1,360 | 1,462 |
Loss (gain) on extinguishment of debt | 20 | (31) |
Pension settlement costs | 34 | |
Stock-based compensation expense | 10 | 14 |
Amortization of deferred financing costs | 23 | 26 |
Other adjustments | 2 | (24) |
Deferred income taxes | (541) | (12) |
Goodwill impairment | 5,725 | 400 |
Loss on disposal of Northwest Operations | 414 | |
Change in accounts receivable | 17 | 43 |
Change in accounts payable and other liabilities | (153) | (239) |
Change in prepaid expenses, income taxes and other assets | (25) | (40) |
Net cash provided from operating activities | 1,103 | 1,209 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures | (898) | (947) |
Proceeds on sale of assets | 76 | 11 |
Other | 2 | 4 |
Net cash used by investing activities | (820) | (932) |
Cash flows provided from (used by) financing activities: | ||
Long-term debt payments | (2,003) | (1,997) |
Proceeds from long-term debt borrowings | 1,650 | 1,840 |
Proceeds from revolving debt | 949 | |
Repayment of revolving debt | (475) | |
Financing costs paid | (44) | (43) |
Premium paid to retire debt | (17) | |
Dividends paid on preferred stock | (107) | |
Finance lease obligation payments | (26) | (30) |
Other | (5) | (11) |
Net cash provided from (used by) financing activities | 46 | (365) |
Increase (Decrease) in cash, cash equivalents, and restricted cash | 329 | (88) |
Cash, cash equivalents, and restricted cash at January 1, | 404 | 376 |
Cash, cash equivalents, and restricted cash at September 30, | 733 | 288 |
Cash paid during the period for: | ||
Interest | 1,208 | 1,266 |
Income tax payments, net | $ 5 | $ 5 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018. 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 September 30, 2019, 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, 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. b) Accounting Changes: Except for the adoption of the new lease accounting standard and required reclassification of certain tax effects related to the Tax Cuts and Jobs Act, Frontier has consistently applied the accounting policies to all periods presented in these unaudited consolidated financial statements. Refer to Notes 2, 11, and 16 for additional discussion. c) Revenue Recognition : Revenue for data & Internet services, voice services, video services and switched and non-switched access services is 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. Satisfaction of Performance Obligations Frontier satisfies its obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s satisfaction of the performance obligation 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. Bundled Service and Allocation of Discounts When customers purchase more than one service, the revenue allocable to each service is determined based upon the relative stand-alone selling price of each service received. We frequently offer service discounts as an incentive to customers. Service discounts reduce the total transaction price allocated to the performance obligations that are satisfied over the term of the customer contract. We may also offer incentives which are considered cash equivalents (e.g. Visa gift cards) that similarly result in a reduction of the total transaction price as well as lower revenue over the term of the contract. A contract asset is often created during the beginning of the contract term when the term of the incentive is shorter than the contract term. These contract assets are realized over the term of the contract as our performance obligations are satisfied and customer consideration is received. Customer Incentives In the process of acquiring and/or retaining customers, we may issue a variety of other incentives aside from service discounts or cash equivalent incentives. Those incentives that have stand-alone value (e.g. gift cards not considered cash equivalents or free goods/services) are considered a separate performance obligation. As a result, while these incentives are free to the customer, a portion of the consideration received from the customer over the contract term is ascribed to them based upon their relative stand-alone selling price. The revenue, reflected in “Other” revenue, and costs, reflected in “Network access expenses”, for these incentives are recognized when they are delivered to the customer and the performance obligation is satisfied. Similar to discounts, these types of incentives generally result in the creation of a contract asset during the beginning of the contract term which is recorded in Other current assets and Other assets on our consolidated balance sheet. Upfront Fees All non-refundable upfront fees provide our customers with a material right to renew, and therefore, are deferred and amortized into revenue over the expected period for which related services are provided. With upfront fees assessed at the beginning of a contract, a contract liability is often created, which is reduced over the term of the contract as the performance obligations are satisfied. The contract liabilities are recorded in Other current liabilities and Other liabilities on our consolidated balance sheet. Contributions in Aid of Construction (CIAC) It is customary for us to charge customers for certain construction activities. These activities are requested by the customer and construction charges are assessed at the beginning of a contract. When charges are incurred, a contract liability is often created, which is reduced over the term of the contract as performance obligations are satisfied. The contract liabilities are recorded in Other current liabilities and Other liabilities on our consolidated balance sheet. Contract Acquisition Costs Certain costs to acquire customers are deferred and amortized over the expected customer life (average of 4.0 years). For Frontier, this includes certain commissions paid to acquire new customers. Commissions attributable to new customer contracts are deferred and amortized into expense. Unamortized deferred commissions are recorded in Contract acquisition costs and Other assets on our consolidated balance sheet. Surcharges and Subsidies 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), which amounted to $ 60 million and $ 50 million, and $ 162 million and $ 160 million for the three and nine months ended September 30, 2019 and 2018, respectively, and video franchise fees, which amounted to $ 10 million and $ 11 million, and $ 31 million and $ 35 million for the three and nine months ended September 30, 2019 and 2018, respectively, that we have recorded on a gross basis in our consolidated statements of operations and included within “Revenue” and “Network related expenses”. 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. We are recognizing FCC’s Connect America Fund (CAF) Phase II subsidies into revenue on a straight-line basis over the six year funding term. d) Cash Equivalents : We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $ 50 million is included within “Income taxes and other current assets” on our consolidated balance sheet as of September 30, 2019 and December 31, 2018. This amount represents funds held as collateral by a bank against letters of credit issued predominately to insurance carriers. e) 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 undertake studies to determine the fair values of assets and liabilities acquired and allocate purchase prices to assets and liabilities, including property, plant and equipment, and other identifiable intangibles with the residual recorded as goodwill. We evaluate the carrying value of our goodwill and indefinite-lived 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” (reporting unit) level, as that term is defined in GAAP. We have one operating segment (reporting unit) due to a number of factors that our management uses to evaluate and run our business operations, including similarities of customers, products and technology. The decline in our stock price, our profitability, and the outlook of our business during the second and third quarter of 2019 were triggering events that required an impairment assessment as of June 30, 2019 and September 30, 2019. Refer to Note 6. Frontier amortizes finite-lived intangible assets, which include acquired customer lists and royalty agreements, over their estimated useful lives on the accelerated method of sum of the years digits. f) Lease Accounting: We determine if an arrangement contains a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating and finance lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms used in accounting for leases may reflect options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. ROU assets for operating leases are recorded to “Other Assets”, and the related liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. Assets subject to finance leases are included in “Property, Plant & Equipment”, with corresponding liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. g) Assets Held for Sale: We classify assets and related liabilities as held for sale when the following criteria are met: when management has committed to a plan to sell the asset, the asset is available for immediate sale, there is an active program to locate a buyer and the sale and transfer of the asset is probable within one year. Assets and liabilities are presented separately on the Consolidated Balance Sheets with a valuation allowance, if necessary, to recognize the net carrying amount at the lower of cost or fair value, less costs to sell. Depreciation and amortization for property, plant and equipment and finite-lived intangible assets, are not recorded while these assets are classified as held for sale. Assets held for sale are tested for recoverability each period that they are classified as held for sale. The amounts and information in the footnotes as they are presented do not include assets and liabilities that have been reclassified as held for sale as of September 30, 2019. Refer to Note 7. |
Recent Accounting Literature
Recent Accounting Literature | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Literature [Abstract] | |
Recent Accounting Literature | (2) Recent Accounting Literature : Recently Adopted Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016 – 02, “Leases (Topic 842).” This standard, along with its related amendments, establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Upon implementation, l essees recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification is 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. Frontier adopted the new lease standard during the first quarter of 2019 using the additional transition method provided by ASU 2018 – 11, “Targeted Improvements.” Under this method, Frontier applied the requirements of the new leases standard as of January 1, 2019 and recognized a cumulative-effect adjustment of $ 15 million ($ 11 million net of tax) to accumulated deficit. Consequently, Frontier’s reporting for comparative periods will continue to be in accordance with Topic 840. Refer to Note 11 for additional lease disclosures. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the 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.” Frontier adopted this standard as of January 1, 2019 by recording a decrease to accumulated deficit of $ 79 million, with a corresponding increase to Accumulated other comprehensive loss on the consolidated balance sheet and the consolidated statement of equity (deficit). Improvements to Nonemployee Share-Based Payment Accounting In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation — Stock Compensation (ASC 718), Improvements to Nonemployee Share-Based Payment Accounting,” which aligns the measurement and classification guidance for share-based payments to nonemployees with that for employees, with certain exceptions. Frontier adopted this standard update as of January 1, 2019, and records such awards at their grant date fair value, and the related liability is no longer remeasured in each period. The impact to our consolidated financial statements was not material. Recent Accounting Pronouncements Not Yet Adopted Financial Instrument Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses”, which amends the current financial statement impairment model requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Frontier is currently evaluating the impact of adoption of this standard on our consolidated financial statements. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which adds, removes, and modifies certain disclosures required by ASC 820. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Frontier is currently evaluating the impact of the adoption of this standard on our disclosures. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General: Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." This standard eliminates requirements for certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures under defined benefit pension plans and other postretirement plans. We are required to adopt this guidance beginning January 1, 2021. Early adoption is permitted. The amendments in the standard would need to be applied on a retrospective basis. Frontier is currently evaluating the impact of the adoption of this standard on our disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (3) Revenue Recognition : 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 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 access 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. The following tables provide a summary of revenues, by category: For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Data and Internet services $ 928 $ 961 $ 2,858 $ 2,919 Voice services 621 669 1,900 2,053 Video services 244 260 772 810 Other 113 141 357 416 Revenue from contracts with customers (1) 1,906 2,031 5,887 6,198 Subsidy revenue 91 95 278 289 Total revenue $ 1,997 $ 2,126 $ 6,165 $ 6,487 For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Consumer $ 1,024 $ 1,069 $ 3,151 $ 3,292 Commercial 882 962 2,736 2,906 Revenue from contracts with customers (1) 1,906 2,031 5,887 6,198 Subsidy revenue 91 95 278 289 Total revenue $ 1,997 $ 2,126 $ 6,165 $ 6,487 (1) Amount includes approximately $ 17 million and $ 18 million, and $ 52 million and $ 55 million of lease revenue for the three and nine months ended September 30, 2019 and 2018, respectively. The opening and closing balances of Frontier’s contract asset and contract liability balances for the nine months ended September 30, 2019 and 2018 are as follows: Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at January 1, 2019 $ 44 $ 25 $ 49 $ 22 Revenue recognized included in opening contract balance ( 29 ) ( 5 ) ( 56 ) ( 14 ) Cash received, excluding amounts recognized as revenue - - 58 9 Credits granted, excluding amounts recognized as revenue 23 1 - - Reclassified between Current and NonCurrent 5 ( 5 ) ( 2 ) 2 Reclassified to held for sale ( 3 ) ( 1 ) ( 5 ) ( 1 ) Balance at September 30, 2019 $ 40 $ 15 $ 44 $ 18 Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at January 1, 2018 $ 40 $ 37 $ 41 $ 19 Revenue recognized included in opening contract balance ( 38 ) - ( 86 ) ( 4 ) Cash received, excluding amounts recognized as revenue - - 106 3 Credits granted, excluding amounts recognized as revenue 36 - - - Reclassified between Current and NonCurrent - - ( 10 ) 10 Other - - ( 6 ) - Balance at September 30, 2018 $ 38 $ 37 $ 45 $ 28 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 sheets. 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 2019 (remaining three months) $ 778 2020 1,909 2021 849 2022 385 2023 191 Thereafter 249 Total $ 4,361 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | (4) Accounts Receivable : The components of accounts receivable, net are as follows : ($ in millions) September 30, 2019 December 31, 2018 Retail and wholesale $ 669 $ 745 Other 76 83 Less: Allowance for doubtful accounts ( 91 ) ( 105 ) Accounts receivable, net $ 654 $ 723 We maintain an allowance for doubtful accounts based on our estimate of our ability to collect accounts receivable. Bad debt expense, which is recorded as a reduction to revenue, is as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Bad debt expense $ 16 $ 21 $ 48 $ 62 |
Property, Plant And Equipment
Property, Plant And Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 5) Property, Plant and Equipment : Property, plant and equipment, net is as follows : ($ in millions) September 30, 2019 December 31, 2018 Property, plant and equipment $ 26,274 $ 27,657 Less: Accumulated depreciation ( 13,301 ) ( 13,470 ) Property, plant and equipment, net $ 12,973 $ 14,187 In 2017 and 2018, we sold certain properties subject to leaseback, generating $ 106 million in net proceeds. In connection with the adoption of ASC 842, the $ 15 million ($ 11 million net of tax) unamortized deferred gains resulting from these transactions were recognized directly to opening accumulated deficit as January 1, 2019. In January 2019, we closed the sale of certain wireless towers for approximately $ 76 million. The aggregate carrying value of the towers was approximately $ 1 million, resulting in a gain on the sale of $ 75 million which was recognized against “Accumulated Depreciation” in our consolidated balance sheet during 2019. Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Depreciation expense $ 321 $ 337 $ 1,016 $ 1,025 We adopted new estimated remaining useful lives for certain plant assets as of October 1, 2018, 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 | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Other Intangibles [Abstract] | |
Goodwill And Other Intangibles | (6) Goodwill and Other Intangibles : We perform impairment tests related to our goodwill annually as of December 31, or sooner if an indicator of impairment occurs. The decline in our stock price, our profitability, and the outlook of our business during the second and third quarter of 2019 were each triggering events that required an impairment assessment as of June 30, 2019 and September 30, 2019. We use a market multiples approach to determine Frontier’s enterprise fair value for purposes of assessing goodwill for impairment. Marketplace comparisons, analyst reports and trends for other public companies within the telecommunications industry whose service offerings are comparable to ours have a range of fair value multiples between 4.1x and 7.6x of annualized expected EBITDA as adjusted for certain items. At September 30, 2019, we estimated the enterprise fair value using an EBITDA multiple of 4.4x. Our quantitative assessment indicated that the carrying value of the enterprise exceeded its fair value as of September 30, 2019, and, therefore, an impairment existed. This impairment reflected a lower enterprise valuation driven by lower profitability. This reflects, among other things, pressures on our business resulting in a continued deterioration in revenue, challenges in achieving improvements in revenue and customer trends under our transformation program, the long-term sustainability of our capital structure, and the lower outlook for our industry as a whole. The market multiples approach we use incorporates significant estimates and assumptions related to our forecasted profitability, principally revenue and operating expenses. Our assessment also includes certain qualitative factors that require significant judgment, including challenges in achieving improvements in revenue and customer trends under our transformation program, the amount and timing of other anticipated transformation benefits, and uncertainty regarding the timing and successor to the FCC’s CAF Phase II program. Alternative interpretations of these factors could have resulted in different conclusions regarding the need for, or size of, an impairment. We also considered whether the carrying values of finite-lived intangible assets and property plant and equipment may not be recoverable or whether the carrying value of certain indefinite-lived intangible assets were impaired, noting no additional impairment was present as of September 30, 2019. As a result of this assessment, we impaired the $ 276 million remaining balance of our goodwill during the three months ended September 30, 2019. We recorded goodwill impairment of $ 5,449 million in the three-month period ended June 30, 2019, which was based on the amount that Frontier’s enterprise carrying value exceeded its fair value. This impairment reflected a lower enterprise valuation driven by lower profitability as well as a reduction in the utilized market multiple from 5.3x at December 31, 2018 to 4.4x at June 30, 2019. The changes in the carrying amount of goodwill, net for the nine months ended September 30, 2019 was as follows: ($ in millions) Balance at January 1, 2019 $ 6,383 Reclassified as held for sale (1) ( 658 ) Goodwill impairment ( 5,725 ) Balance at September 30, 2019 $ - (1) Represents the amounts reclassified as held-for-sale related to the Company’s Northwest Operations. See Note 7. Accumulated goodwill impairment charges were $ 9,154 million and $ 3,429 million as of September 30, 2019 and December 31, 2018. The components of other intangibles are as follows : September 30, 2019 December 31, 2018 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 4,332 $ ( 3,356 ) $ 976 $ 5,188 $ ( 3,848 ) $ 1,340 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 50 ) 22 72 ( 40 ) 32 Total other intangibles $ 4,526 $ ( 3,406 ) $ 1,120 $ 5,382 $ ( 3,888 ) $ 1,494 Amortization expense was as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Amortization expense $ 101 $ 134 $ 344 $ 437 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 and amortized on an accelerated method . |
Planned Divestiture Of Northwes
Planned Divestiture Of Northwest Operations | 9 Months Ended |
Sep. 30, 2019 | |
Planned Divestiture Of Northwest Operations [Abstract] | |
Planned Divestiture Of Northwest Operations | (7) Planned divestiture of Northwest Operations: In May 2019, Frontier entered into a definitive agreement to sell its operations and associated assets in Washington, Oregon, Idaho, and Montana (Northwest Operations) for $ 1,352 million, subject to certain closing adjustments, including adjustments for working capital and certain pension and retiree medical liabilities. The sale is expected to close during the first half of 2020, subject to customary closing conditions including regulatory approvals. In connection with the sale, Frontier has entered into a transition services agreement with the purchaser to provide various network and support services for a minimum of six months following the transaction closing. This transaction does not represent a strategic shift for Frontier; therefore, it does not meet the criteria to be classified as a discontinued operation. As a result, the Northwest Operations will continue to be reported in our operating results until the sale is finalized. Effective with the designation as held-for-sale on May 28, 2019, we discontinued recording depreciation on Property, Plant and Equipment and finite-lived intangible assets of this business as required by the accounting rules. The Company also separately classified the related assets and liabilities of the business as held-for-sale in its September 30, 2019 consolidated balance sheet. As a result of its evaluation of the recoverability of the carrying value of the assets and liabilities held for sale relative to the agreed upon sales price, adjusted for costs to sell, Frontier recorded an estimated loss on disposal of $ 414 million during the nine months ended September 30, 2019 in its consolidated statement of operations and a valuation allowance included in assets held for sale on its consolidated balance sheet. The principal components of the held-for-sale assets and liabilities as of September 30, 2019 are as follows: ($ in millions) September 30, 2019 ASSETS Accounts receivable, less allowances of $ 7 $ 51 Prepaid expenses 2 Contract acquisition costs 10 Other current assets 3 Property, plant and equipment, net 1,021 Goodwill (1) 658 Other intangibles, net 30 Other assets 26 Valuation allowance on assets held for sale ( 399 ) Total assets held for sale $ 1,402 LIABILITIES Accounts payable $ 10 Advanced billings 18 Accrued other taxes 13 Other current liabilities 23 Pension and other postretirement benefits (2) 30 Other liabilities 40 Total liabilities held for sale $ 134 (1) The assignment of goodwill was based on the relative fair value of the disposal group and the portion of the remaining reporting unit. (2) Excludes pension liability of $ 146 million, which will be fully funded upon closing. Approximately $ 87 million, or 60 % of the pension liability will be funded through the transfer of Pension Plan assets. The remaining liability will be separately funded by Frontier at the time of closing. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (8) Fair Value of Financial Instruments : The following table summarizes the carrying amounts and estimated fair values for long-term debt at September 30, 2019 and December 31, 2018. For the other financial instruments including cash, accounts receivable, restricted cash, 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. September 30, 2019 December 31, 2018 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 17,520 $ 11,690 $ 17,400 $ 12,756 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (9) Long-Term Debt: The activity in our long-term debt from January 1, 2019 through September 30, 2019 is summarized as follows: For the nine months ended September 30, 2019 Principal Interest Rate at January 1, Payments September 30, September 30, ($ in millions) 2019 and Retirements New Borrowings 2019 2019* Secured debt issued by Frontier $ 5,246 $ ( 2,130 ) $ 2,599 $ 5,715 7.35 % Unsecured debt issued by Frontier 11,297 ( 348 ) - 10,949 9.63 % Secured debt issued by subsidiaries 107 ( 1 ) - 106 8.36 % Unsecured debt issued by subsidiaries 750 - - 750 6.90 % Total debt $ 17,400 $ ( 2,479 ) $ 2,599 $ 17,520 8.76 % Less: Debt Issuance Costs ( 178 ) ( 174 ) Less: Debt Discount ( 50 ) ( 47 ) Less: Current Portion ( 814 ) ( 994 ) Total Long-term debt $ 16,358 $ 16,305 * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at September 30, 2019 represent a weighted average of multiple issuances. Additional information regarding our long-term debt as of September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 3/31/2021 (1) $ - $ 1,402 5.280 % (Variable) Term loan due 10/12/2021 (2) - 239 7.405 % (Variable) Revolver due 2/27/2024 (3) 749 5.043 % (Variable) 275 5.280 % (Variable) Term loan due 6/15/2024 (4) 1,703 5.800 % (Variable) 1,716 6.280 % (Variable) First lien notes due 4/1/2027 1,650 8.000 % - Second lien notes due 4/1/2026 1,600 8.500 % 1,600 8.500 % IDRB due 5/1/2030 13 6.200 % 13 6.200 % Equipment financings - 1 0.000 % Total secured debt issued by Frontier 5,715 5,246 Senior notes due 3/15/2019 - 348 7.125 % Senior notes due 4/15/2020 172 8.500 % 172 8.500 % Senior notes due 9/15/2020 55 8.875 % 55 8.875 % Senior notes due 7/1/2021 89 9.250 % 89 9.250 % Senior notes due 9/15/2021 220 6.250 % 220 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 10,949 11,297 Secured debt issued by subsidiaries Debentures due 11/15/2031 100 8.500 % 100 8.500 % RUS loan contracts due 1/3/2028 6 6.154 % 7 6.154 % Total secured debt issued by subsidiaries 106 107 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 $ 17,520 8.522 % (5) $ 17,400 8.411 % (5) (1) Represents borrowings under the JPM Credit Agreement Term Loan A, as defined below. (2) Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. (3) Represents borrowings under the JPM Credit Agreement Revolver, 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 . Term Loan and Revolving Credit Facilities JP Morgan 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 amended to date, the JPM Credit Agreement), Frontier has a $ 1,740 million senior secured Term Loan B facility (the Term Loan B) maturing on June 15, 2024 and an $ 850 million secured revolving credit facility maturing on February 27, 2024 (the Revolver). The maturities of the Term Loan B and the Revolver, 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. As of September 30, 2019, approximately $ 227 million principal amount, in the aggregate, remains outstanding on the two series of senior notes maturing in 2020 and $ 309 million principal amount, in the aggregate, remains outstanding on the two series of senior notes maturing in 2021. The determination of interest rates for the Term Loan B and Revolver 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 Revolver (ranging from 1.00 % to 2.00 % for Base Rate borrowings and 2.00 % to 3.00 % for LIBOR borrowings) are subject to adjustment based on Frontier’s Leverage Ratio (as defined in the JPM Credit Agreement). The interest rate on the Revolver as of September 30, 2019 was LIBOR plus 3.00 %. 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 guarantees by certain Frontier subsidiaries. As of September 30, 2019, Frontier had borrowings of $ 749 million outstanding under the Revolver (with letters of credit issued under the Revolver totaling an additional $ 101 million). In July 2019, a $ 20 million Letter of Credit issued under the Bank of Tokyo LC agreement was replaced by a Letter of Credit issued under the Revolver. On March 15, 2019, Frontier used proceeds from the offering of First Lien Notes, together with cash on hand, to repay in full the outstanding borrowings under its $ 1,625 million senior secured Term Loan A facility, which otherwise would have matured in March 2021, as described below under “New Debt Issuances and Debt Reductions.” In addition , Frontier amended the JPM Credit Agreement to, among other things, (i) extend the maturity date of the Revolver from February 27, 2022 to February 27, 2024 , (ii) increase the interest rate applicable to such revolving loans by 0.25 % and (iii) make certain modifications to the debt and restricted payment covenants. CoBank Credit Facilities As of December 31, 2018, Frontier had $239 million outstanding under a $ 315 million senior term loan facility drawn in October 2016 (as amended, the 2016 CoBank Credit Agreement) with CoBank, ACB, as administrative agent, lead arranger and lender, and the other lenders. On March 15, 2019, Frontier used proceeds from the offering of First Lien Notes, together with cash on hand, to repay in full the outstanding borrowings under the 2016 CoBank Credit Agreement, which otherwise would have matured in October 2021, as described below under “New Debt Issuances and Debt Reductions.” New Debt Issuances and Debt Reductions On March 15, 2019, Frontier completed a private offering of $ 1,650 million aggregate principal amount of 8.00 % First Lien Secured Notes due 2027 (the First Lien Notes). The First Lien Notes are guaranteed by each of the Company’s subsidiaries that guarantees its Term Loan B and Revolver under the JPM Credit Agreement (the Senior Secured Credit Facilities). The guarantees are unsecured obligations of the guarantors equal 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 and senior in right of payment to all subordinated obligations of the guarantors. The First Lien Notes are secured on a first-priority basis by all the assets that secure the Company’s obligations under its Senior Secured Credit Facilities on a first-priority basis. Interest on the First Lien Notes is payable to holders of record semi-annually in arrears on April 1 and October 1 of each year, commencing October 1, 2019. On March 19, 2018, Frontier completed a private offering of $ 1,600 million aggregate principal amount of 8.50 % Second Lien Secured Notes due 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 guarantors 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 Frontier Video Services, Inc. The Second Lien Notes bear interest at a rate of 8.50 % per annum and mature on April 1, 2026 . Interest on the Second Lien Notes is payable semi-annually in arrears on April 1 and October 1 of each year, commencing October 1, 2018. On July 3, 2018, the collateral package for the Second Lien Notes was amended to replace certain operating subsidiary equity pledges with pledges of the equity interests of certain direct subsidiaries of Frontier, consistent with amendments made to Frontier’s credit agreements. On July 3, 2018, the Company entered into Increase Joinder No. 2 to the JPM Credit Agreement, pursuant to which the Company borrowed an incremental $ 240 million under the Term Loan B maturing in 2024 . The Company used the incremental borrowings to repay in full the 2014 CoBank Credit Agreement, repay a portion of the 2016 CoBank Credit Agreement and pay certain fees and expenses related to this incremental borrowing. For the nine months ended September 30, 2019 , Frontier retired $ 348 million principal amount of 7.125 % senior unsecured notes due 2019 . Additionally, on March 15, 2019, Frontier used the proceeds from the offering of First Lien Notes, together with cash on hand, to (i) repay in full the outstanding borrowings under the senior secured Term Loan A facility under the JPM Credit Agreement, which otherwise would have matured in March 2021 , (ii) repay in full the outstanding borrowings under the 2016 CoBank Credit Agreement, which otherwise would have matured in October 2021 , and (iii) pay related interest, fees and expenses. During the first nine months of 2019, Frontier recorded a loss on early extinguishment of debt of $ 20 million driven primarily by the write-off of unamortized original issuance costs associated with the retired Term Loan A and 2016 CoBank Credit Agreement. During the first nine months of 2018, Frontier recorded a gain on early extinguishment of debt of $ 31 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. Our scheduled principal payments are as follows as of September 30, 2019. This does not reflect outstanding borrowings under the Revolver. ($ in millions) Principal payments 2019 (remaining three months) $ 4 2020 $ 245 2021 $ 327 2022 $ 2,706 2023 $ 868 Thereafter $ 12,621 |
Restructuring Costs And Other C
Restructuring Costs And Other Charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Costs And Other Charges | |
Restructuring Costs And Other Charges | (10) Restructuring Costs and Other Charges: Transformation Program During the second quarter of 2018, Frontier announced a multi-year strategic plan with the objective of improving revenues, profitability, and cash flows by enhancing our operations and customer service and support processes. During the three and nine months ended September 30, 2019, we incurred $ 9 million and $ 38 million, respectively, in costs directly associated with these activities. We had retained a consulting firm to assist in executing on various aspects of the transformation program. This agreement was terminated in June 2019 and in connection therewith we made a payment in the third quarter of approximately $ 30 million of previously accrued expenses. We continue to pursue a reduced transformation program and expect associated expenses to be recognized as incurred. Amounts accrued in connection with the consulting arrangement are recognized as operating expense under “Restructuring costs and other charges.” Restructuring Costs Restructuring costs and other charges, consisting primarily of severance and other employee-related costs of $ 29 million and costs directly associated with the transformation program of $ 38 million, are included in “Restructuring costs and other charges” in our consolidated statement of operations for the nine months ended September 30, 2019. For the nine months ended September 30, 2018, restructuring costs and other charges, consisted primarily of severance and other employee-related costs of $ 11 million. The following is a summary of the changes in the liabilities established for restructuring and other programs for the nine months ended September 30, 2019 which are all classified in other current liabilities: ($ in millions) Balance at January 1, 2019 $ 18 Severance expense 29 Transformation costs 38 Other restructuring costs 19 Cash payments during the period ( 95 ) Balance at September 30, 2019 $ 9 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | (11) Leases: With the adoption of ASC 842 on January 1, 2019, Frontier elected to apply the ‘package of practical expedients’, which permits the Company to not reassess under the new standard its prior conclusions including lease identification, lease classification, and initial direct costs. Additionally, Frontier elected to apply the land easement practical expedient, which permits the Company to account for land easements under the new standard only on a prospective basis. Frontier did not apply the use of hindsight practical expedient. The following table includes information for the transition adjustment recorded as of January 1, 2019 to record the cumulative impact of adoption of ASC 842 for prior periods: (Unaudited) As Reported ASC 842 Adjusted ($ in millions) December 31, 2018 Transition Adjustment January 1, 2019 Assets Other assets $ 265 $ 205 (1) $ 470 Liabilities and Equity (Deficit) Other current liabilities $ 394 $ 32 (2) $ 426 Other liabilities $ 281 $ 158 (3) $ 439 Deferred income taxes $ 1,109 $ 4 (4) $ 1,113 Accumulated deficit $ ( 2,752 ) $ 11 (5) $ ( 2,741 ) (1) Includes $ 205 million of operating Right-of-use (ROU) assets recorded upon adoption. (2) Includes $ 46 million of operating lease liabilities, partially offset by $ 14 million recognition of the current portion of deferred gains on sale of property to accumulated deficit. (3) Includes $ 168 million of operating lease liabilities, partially offset by $ 1 million recognition of deferred gains on sale of property to accumulated deficit and $ 9 million of deferred rent reclassified to Operating Right-of-use assets. (4) Represents the tax effect of the recognition of $ 15 million in deferred gains on sale of property to accumulated deficit. (5) Includes the recognition of $ 15 million in deferred gains on the sale of property, partially offset by $ 4 million tax impact on the recognition of the gain. The components of lease cost are as follows: For the three months ended For the nine months ended ( $ in millions ) September 30, 2019 September 30, 2019 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 3 $ 9 Interest on lease liabilities 3 11 Finance lease cost 6 20 Operating lease cost (1) 19 56 Sublease income ( 2 ) ( 9 ) Total Lease cost $ 23 $ 67 (1) Includes short-term lease cost of $ 0 and $ 2 million and variable lease cost of $ 1 million and $ 5 million for the three and nine months ended September 30, 2019, respectively. Supplemental balance sheet information related to leases is as follows: ( $ in millions ) September 30, 2019 Operating right-of-use assets $ 196 (1) Finance right-of-use assets $ 170 (2) Operating lease liabilities $ 203 (3) Finance lease liabilities $ 161 (4) Operating leases: Weighted-average remaining lease term 7.61 years Weighted-average discount rate 8.26 % Finance leases: Weighted-average remaining lease term 8.86 years Weighted-average discount rate 7.97 % (1) Operating ROU assets are included in Other assets on our consolidated balance sheet. (2) Finance ROU assets are included in Property, plant, and equipment on our September 30, 2019 consolidated balance sheet. (3) This amount represents $ 44 million and $ 159 million included in other current liabilities and other liabilities, respectively, on our September 30, 2019 consolidated balance sheet. (4) This amount represents $ 28 million and $ 133 million included in other current liabilities and other liabilities, respectively, on our September 30, 2019 consolidated balance sheet. Supplemental cash flow information related to leases is as follows: For the nine months ended ( $ in millions ) September 30, 2019 Cash paid for amount included in the measurement of lease liabilities, net of amounts received as revenue: Operating cash flows provided by operating leases $ 52 Operating cash flows used by operating leases $ ( 53 ) Operating cash flows used by finance leases $ ( 11 ) Financing cash flows used by finance leases $ ( 26 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 26 Finance leases $ 28 Lessee For lessee agreements, Frontier elected to apply the short-term lease recognition exemption for all leases that qualify and as such, does not recognize assets or liabilities for leases with terms of less than twelve months, including existing leases at transition. Frontier elected not to separate lease and non-lease components. As of January 1, 2019, Frontier has operating and finance leases for administrative and network properties, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 99 years, some of which include options to extend the leases, and some of which include options to terminate the leases within 1 year. The following represents a maturity analysis for our operating and finance lease liabilities as of September 30, 2019: Operating Finance ( $ in millions ) Leases Leases Future maturities: 2019 (remaining three months) $ 12 $ 11 2020 44 35 2021 38 31 2022 36 26 2023 33 22 Thereafter 106 104 Total lease payments 269 229 Less: imputed interest ( 66 ) ( 68 ) Present value of lease liabilities $ 203 $ 161 Upon adoption of ASC 842, we recorded the unamortized deferred gain balances for previous sale-leasebacks of real estate assets as a transition adjustment, which had the effect of decreasing our accumulated deficit by $ 15 million ($ 11 million net of tax). Lessor Frontier is the lessor for operating leases of towers, datacenters, corporate offices, and certain equipment. Our leases have remaining lease terms of 1 year to 99 years, some of which include options to extend the leases, and some of which include options to terminate the leases within 1 year. None of these leases include options for our lessees to purchase the underlying asset. A significant number of Frontier’s telecom service contracts with its customers include equipment rentals. The Company has elected to apply the practical expedient to account for those associated equipment rentals and telecom services as a single, combined component. We have evaluated the service component to be ‘predominant’ in these contracts and have accounted for the combined component as a single performance obligation under ASC 606. For the three and nine months ended September 30, 2019, Frontier, as a lessor, recognized revenue of $ 17 million and $ 52 million, respectively. The following represents a maturity analysis for our future operating lease payments from customers as of September 30, 2019: Operating ( $ in millions ) Lease Payments Future maturities of lease payments from customers: 2019 (remaining three months) $ 3 2020 10 2021 10 2022 10 2023 10 Thereafter 8 Total lease payments from customers $ 51 |
Investment And Other Income (Lo
Investment And Other Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Investment And Other Income (Loss) [Abstract] | |
Investment And Other Income (Loss) | (12) Investment and Other Income (Loss): The following is a summary of the components of Investment and Other Income (loss) for the three and nine months ended September 30, 2019 and 2018: For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2019 2018 2019 2018 Interest and dividend income $ 2 $ 2 $ 6 $ 5 Pension and OPEB benefit (costs) ( 12 ) 2 ( 34 ) 12 All other, net - ( 1 ) - ( 1 ) Total investment and other income (loss), net $ ( 10 ) $ 3 $ ( 28 ) $ 16 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | (13) 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 For the nine months ended September 30, September 30, 2019 2018 2019 2018 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit ( 0.7 ) 0.8 1.3 0.4 Remeasurement of certain deferred tax balances - - - 0.9 Tax reserve adjustment ( 0.1 ) 0.5 - 0.5 Changes in certain deferred tax balances ( 0.6 ) ( 10.4 ) ( 1.8 ) ( 8.6 ) Goodwill impairment ( 15.9 ) ( 10.4 ) ( 10.7 ) ( 10.3 ) Loss on disposal of Northwest Operations 1.8 - ( 1.2 ) - Shared-based payments - - ( 0.1 ) ( 0.8 ) Federal research and development tax credit 0.3 ( 1.0 ) - ( 1.0 ) All other, net ( 0.2 ) 0.4 - 0.4 Effective tax rate 5.6 % 0.9 % 8.5 % 2.5 % As of September 30, 2019, amounts pertaining to expected income tax refunds of $ 2 million and $ 2 million are included in “Income taxes and other current assets” and “Other assets” in the consolidated balance sheets, respectively. Frontier considered positive and negative evidence in regard to evaluating certain deferred tax assets during the third quarter of 2019, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $ 141 million ($ 113 million net of federal benefit) has been recorded for the nine months ended September 30, 2019, related to these deferred tax assets and reflected in “Changes in certain deferred tax balances.” The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth. As of December 31, 2018, Frontier had approximately $ 2.4 billion of federal NOLs, which for U.S. federal income tax purposes can be used to offset future taxable income. The closing of the sale of the Northwest Operations would utilize approximately $ 1 billion of these NOLs. On July 1, 2019, the Board of Directors of Frontier Communications adopted a shareholder’s right plan (Rights Agreement) designed to protect the availability of the net operating loss carryforwards under the Internal Revenue Code (Code). The Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 of the Code by deterring any person or group of affiliated or associated persons from acquiring beneficial ownership of 4.9 % or more of the outstanding common shares. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | (14) Net Loss Per Share : The reconciliation of the net loss per share calculation is as follows : For the three months ended For the nine months ended September 30, September 30, ( $ in millions and shares in thousands, except per share amounts ) 2019 2018 2019 2018 Net loss used for basic and diluted loss per share: Total basic net loss attributable to Frontier common shareholders $ ( 345 ) $ ( 426 ) $ ( 5,749 ) $ ( 531 ) Effect of loss related to dilutive stock units - - - - Total diluted net loss attributable to Frontier common shareholders $ ( 345 ) $ ( 426 ) $ ( 5,749 ) $ ( 531 ) Basic loss per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 105,372 105,740 105,375 88,997 Less: Weighted average unvested restricted stock awards ( 1,237 ) ( 2,075 ) ( 1,344 ) ( 1,859 ) Total weighted average shares outstanding - basic 104,135 103,665 104,031 87,138 Basic net loss per share attributable to Frontier common shareholders $ ( 3.31 ) $ ( 4.11 ) $ ( 55.26 ) $ ( 6.09 ) Diluted loss per share: Total weighted average shares outstanding - basic 104,135 103,665 104,031 87,138 Effect of dilutive stock units - - - - Total weighted average shares outstanding - diluted 104,135 103,665 104,031 87,138 Diluted net loss per share attributable to Frontier common shareholders $ ( 3.31 ) $ ( 4.11 ) $ ( 55.26 ) $ ( 6.09 ) In calculating diluted net loss per common share for the three and nine months ended September 30, 2019 and 2018, the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive. Stock Options For the three and nine months ended September 30, 2019 and 2018, previously granted options to purchase 1,344 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 September 30, 2019 and 2018, we had 339,544 and 299,827 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 and nine months ended September 30, 2019 and 2018 because their inclusion would have an antidilutive effect. Compensation costs associated with the issuance of stock units were $ 0 and $ 1 million for the nine months ended September 30, 2019 and 2018, respectively. |
Stock Plans
Stock Plans | 9 Months Ended |
Sep. 30, 2019 | |
Stock Plans [Abstract] | |
Stock Plans | (15) Stock Plans : At September 30, 2019, we have 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 September 30, 2019, there were approximately 5,667,000 shares authorized for grant and approximately 2,801,000 shares available 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 As of January 1, 2019, we had 497,000 outstanding performance shares under the Frontier Long Term Incentive Plan (the LTIP). The following summary presents information regarding LTIP target performance shares as of September 30, 2019 and changes during the nine 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, 2019 497 LTIP target performance shares granted, net - LTIP target performance shares earned ( 41 ) LTIP target performance shares forfeited ( 20 ) Balance at September 30, 2019 436 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 nine months ended September 30, 2019 and 2018, we recognized net compensation expense, reflected in “Selling, general and administrative expenses,” of $ 3 million for the LTIP. Restricted Stock The following summary presents information regarding unvested restricted stock as of September 30, 2019 and changes during the nine 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, 2019 1,858 $ 16.02 $ 4 Restricted stock granted 105 $ 2.00 $ - Restricted stock vested ( 711 ) $ 21.78 $ ( 1 ) Restricted stock forfeited ( 19 ) $ 32.44 Balance at September 30, 2019 1,233 $ 11.26 $ 1 For purposes of determining compensation expense, 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 September 30, 2019 was $ 8 million, and the weighted average vesting period over which this cost is expected to be recognized is approximately 1 year. 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 $ 7 million and $ 10 million for the nine month periods ended September 30, 2019 and 2018, respectively, has been recorded in connection with these grants . |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (16) Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting shareholders’ equity (deficit) and pension/postretirement benefit (OPEB) liabilities that, under GAAP, are excluded from net loss. The components of accumulated other comprehensive income (loss), net of tax at September 30, 2019 and 2018, and changes for the nine month periods then ended, are as follows : ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2019 (1) $ ( 489 ) $ 26 $ ( 463 ) Other comprehensive income (loss) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss to net loss 31 ( 6 ) 25 Net current-period other comprehensive income (loss) 31 ( 6 ) 25 Impact of adoption of ASU 2018-02 ( 83 ) 4 ( 79 ) Balance at September 30, 2019 (1) $ ( 541 ) $ 24 $ ( 517 ) ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2018 (1) $ ( 345 ) $ ( 21 ) $ ( 366 ) Other comprehensive income (loss) before reclassifications 1 1 2 Amounts reclassified from accumulated other comprehensive loss to net loss 38 ( 4 ) 34 Net current-period other comprehensive income (loss) 39 ( 3 ) 36 Balance at September 30, 2018 (1) $ ( 306 ) $ ( 24 ) $ ( 330 ) (1) Pension and OPEB amounts are net of tax of $ 250 million and $ 223 million as of January 1, 2019 and 2018, respectively and $ 163 million and $ 206 million as of September 30, 2019 and 2018, respectively. The significant items reclassified from each component of accumulated other comprehensive loss for the three and nine month periods then ended September 30, 2019 and 2018 are as follows: Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended For the nine months ended the Statement Where Details about Accumulated Other September 30, September 30, Net Loss Comprehensive Loss Components 2019 2018 2019 2018 is Presented Amortization of Pension Cost Items (2) Actuarial gains (losses) $ ( 14 ) $ ( 4 ) $ ( 42 ) $ ( 17 ) Pension settlement costs - ( 9 ) - ( 34 ) ( 14 ) ( 13 ) ( 42 ) ( 51 ) Loss before income taxes Tax impact 4 2 11 13 Income tax benefit $ ( 10 ) $ ( 11 ) $ ( 31 ) $ ( 38 ) Net loss Amortization of OPEB Cost Items (2) Prior-service costs $ 3 $ 1 $ 7 $ 6 Actuarial gains (losses) ( 1 ) - 1 ( 1 ) 2 1 8 5 Loss before income taxes Tax impact - - ( 2 ) ( 1 ) Income tax benefit $ 2 $ 1 $ 6 $ 4 Net loss (1) Amounts in parentheses indicate losses. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 17 - Retirement Plans for additional details) . |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Plans [Abstract] | |
Retirement Plans | (17) Retirement Plans : The following tables provide the components of total pension and postretirement benefit cost : Pension Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2019 2018 2019 2018 Components of total pension benefit cost Service cost $ 21 $ 22 $ 63 $ 70 Interest cost on projected benefit obligation 33 31 98 91 Expected return on plan assets ( 43 ) ( 45 ) ( 129 ) ( 143 ) Amortization of unrecognized loss 14 4 42 17 Net periodic pension benefit cost $ 25 $ 12 $ 74 $ 35 Pension settlement costs - 9 - 34 Total pension benefit cost $ 25 $ 21 $ 74 $ 69 Postretirement Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2019 2018 2019 2018 Components of net periodic postretirement benefit cost Service cost $ 4 $ 5 $ 14 $ 16 Interest cost on projected benefit obligation 10 9 31 28 Amortization of prior service cost (credit) ( 3 ) ( 1 ) ( 7 ) ( 6 ) Amortization of unrecognized (gain) loss 1 - ( 1 ) 1 Net periodic postretirement benefit cost $ 12 $ 13 $ 37 $ 39 The components of net periodic benefit cost other than the service cost component are included in “Investment and other income” in the consolidated statement of operations. During the first nine months of 2019 and 2018, we capitalized $ 18 million and $ 20 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. Our Pension Plan assets increased from $ 2,348 million at December 31, 2018 to $ 2,670 million at September 30, 2019, an increase of $ 322 million, or 14 %. This increase was a result of contributions of $ 129 million and positive investment returns (net of investment management and administrative fees) of $ 404 million, partially offset by benefit payments of $ 211 million. Required pension plan contributions for the full year 2019 are estimated to be $ 166 million, of which $ 129 million was contributed to the Plan during the first nine months of 2019. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (18) 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 support for broadband in high cost unserved or underserved areas. This program provides $ 332 million in annual support, including $ 19 million in annual support related to the Northwest Operations, through 2020 to make available 10 Mbps downstream/1 Mbps upstream broadband service to approximately 774,000 households across certain of the 29 states where we now operate. To the extent we do not enable the required number of households with 10 Mbps downstream/1 Mbps upstream broadband service by the end of the CAF Phase II term, we will be required to return a portion of the funds previously received. In August 2019, the FCC adopted a notice of proposed rulemaking to establish the Rural Digital Opportunity Fund (RDOF), which will be the successor to the CAF II program. While the RDOF has not been finalized, its final form could result in a material change in the level of annual funding that Frontier receives from the FCC under CAF II as early as 2021. 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 appealed the Order in the 8th Circuit Court of Appeals. The Court of Appeals issued a ruling August 28, 2018, which upheld the vast majority of the FCC’s decision easing regulation of business data services of internet service providers and vacated and remanded one part of the Order back to the FCC. On October 10, 2018, the FCC filed a Motion to Stay the Court’s Decision. Frontier cannot predict the extent to which these regulatory changes could affect revenues at this time. On July 10, 2019, the FCC issued an Order reinstating its original decision regarding transport that was remanded by the 8th Circuit due to lack of notice. While this Order cures the lack of notice cited by the 8th Circuit, Frontier cannot predict whether parties may again appeal the decision. 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 was 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 asserted, 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 sought, among other things, damages and equitable and injunctive relief. On March 8, 2019, the District Court granted in its entirety Frontier’s motion to dismiss the complaint. The District Court dismissed with prejudice a number of claims and with respect to certain other claims that were not dismissed with prejudice, Plaintiffs were permitted to seek the court’s permission to refile. On May 10, 2019, Plaintiffs filed a motion for leave to amend along with a proposed amended complaint that is narrower in scope than the dismissed complaint. Frontier filed an opposition to the motion for leave to amend, and the motion remains pending. We continue to dispute the allegations and intend to vigorously defend against such claims. In addition, shareholders have filed derivative complaints on behalf of the Company in Connecticut, California, and Delaware courts. The derivative complaints are based, generally, on the same facts asserted in the consolidated class action complaint and allege against current and former officers and directors of the Company (i) breach of fiduciary duty claims for disseminating false and misleading information to shareholders, failure to manage internal controls, and failure to oversee and manage the company; (ii) unjust enrichment and waste of corporate assets claims; and (iii) violations of Section 14(a) of the Exchange Act for the false and misleading statements. We also dispute the allegations in the derivative complaints described above and intend to vigorously defend against such claims. Given that all of these matters are in the early stages of litigation, we are unable to estimate a reasonably possible range of loss, if any, that may result. We are currently defending an intellectual property lawsuit initiated by Sprint Communications which alleges that the VoIP services that we offer to our customers infringe on certain of the plaintiff’s patents. Sprint has asserted these claims against other broadband providers and obtained significant judgements and settlements. While we intend to defend this lawsuit vigorously, we cannot at this time predict the outcome of this lawsuit or reasonably estimate a possible range of loss. In addition, we are party to various legal proceedings (including individual actions, class and putative class actions, and federal and state 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 contract disputes, billing disputes, rights of access, taxes and surcharges, consumer protection, advertising, sales and the provision of services, trademark and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. Legal proceedings and litigation are subject to uncertainty and the outcome of individual matters is not predictable. However, 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 financial position, results of operations, or 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 maintain an accrual 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. 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. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | 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, 2018. 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 September 30, 2019, 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, 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. |
Accounting Changes | b) Accounting Changes: Except for the adoption of the new lease accounting standard and required reclassification of certain tax effects related to the Tax Cuts and Jobs Act, Frontier has consistently applied the accounting policies to all periods presented in these unaudited consolidated financial statements. Refer to Notes 2, 11, and 16 for additional discussion. |
Revenue Recognition | c) Revenue Recognition : Revenue for data & Internet services, voice services, video services and switched and non-switched access services is 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. Satisfaction of Performance Obligations Frontier satisfies its obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s satisfaction of the performance obligation 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. Bundled Service and Allocation of Discounts When customers purchase more than one service, the revenue allocable to each service is determined based upon the relative stand-alone selling price of each service received. We frequently offer service discounts as an incentive to customers. Service discounts reduce the total transaction price allocated to the performance obligations that are satisfied over the term of the customer contract. We may also offer incentives which are considered cash equivalents (e.g. Visa gift cards) that similarly result in a reduction of the total transaction price as well as lower revenue over the term of the contract. A contract asset is often created during the beginning of the contract term when the term of the incentive is shorter than the contract term. These contract assets are realized over the term of the contract as our performance obligations are satisfied and customer consideration is received. Customer Incentives In the process of acquiring and/or retaining customers, we may issue a variety of other incentives aside from service discounts or cash equivalent incentives. Those incentives that have stand-alone value (e.g. gift cards not considered cash equivalents or free goods/services) are considered a separate performance obligation. As a result, while these incentives are free to the customer, a portion of the consideration received from the customer over the contract term is ascribed to them based upon their relative stand-alone selling price. The revenue, reflected in “Other” revenue, and costs, reflected in “Network access expenses”, for these incentives are recognized when they are delivered to the customer and the performance obligation is satisfied. Similar to discounts, these types of incentives generally result in the creation of a contract asset during the beginning of the contract term which is recorded in Other current assets and Other assets on our consolidated balance sheet. Upfront Fees All non-refundable upfront fees provide our customers with a material right to renew, and therefore, are deferred and amortized into revenue over the expected period for which related services are provided. With upfront fees assessed at the beginning of a contract, a contract liability is often created, which is reduced over the term of the contract as the performance obligations are satisfied. The contract liabilities are recorded in Other current liabilities and Other liabilities on our consolidated balance sheet. Contributions in Aid of Construction (CIAC) It is customary for us to charge customers for certain construction activities. These activities are requested by the customer and construction charges are assessed at the beginning of a contract. When charges are incurred, a contract liability is often created, which is reduced over the term of the contract as performance obligations are satisfied. The contract liabilities are recorded in Other current liabilities and Other liabilities on our consolidated balance sheet. Contract Acquisition Costs Certain costs to acquire customers are deferred and amortized over the expected customer life (average of 4.0 years). For Frontier, this includes certain commissions paid to acquire new customers. Commissions attributable to new customer contracts are deferred and amortized into expense. Unamortized deferred commissions are recorded in Contract acquisition costs and Other assets on our consolidated balance sheet. Surcharges and Subsidies 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), which amounted to $ 60 million and $ 50 million, and $ 162 million and $ 160 million for the three and nine months ended September 30, 2019 and 2018, respectively, and video franchise fees, which amounted to $ 10 million and $ 11 million, and $ 31 million and $ 35 million for the three and nine months ended September 30, 2019 and 2018, respectively, that we have recorded on a gross basis in our consolidated statements of operations and included within “Revenue” and “Network related expenses”. 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. We are recognizing FCC’s Connect America Fund (CAF) Phase II subsidies into revenue on a straight-line basis over the six year funding term. |
Cash Equivalents | d) Cash Equivalents : We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $ 50 million is included within “Income taxes and other current assets” on our consolidated balance sheet as of September 30, 2019 and December 31, 2018. This amount represents funds held as collateral by a bank against letters of credit issued predominately to insurance carriers. |
Goodwill and Other Intangibles | e) 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 undertake studies to determine the fair values of assets and liabilities acquired and allocate purchase prices to assets and liabilities, including property, plant and equipment, and other identifiable intangibles with the residual recorded as goodwill. We evaluate the carrying value of our goodwill and indefinite-lived 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” (reporting unit) level, as that term is defined in GAAP. We have one operating segment (reporting unit) due to a number of factors that our management uses to evaluate and run our business operations, including similarities of customers, products and technology. The decline in our stock price, our profitability, and the outlook of our business during the second and third quarter of 2019 were triggering events that required an impairment assessment as of June 30, 2019 and September 30, 2019. Refer to Note 6. Frontier amortizes finite-lived intangible assets, which include acquired customer lists and royalty agreements, over their estimated useful lives on the accelerated method of sum of the years digits. |
Lease Accounting | f) Lease Accounting: We determine if an arrangement contains a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating and finance lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms used in accounting for leases may reflect options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. ROU assets for operating leases are recorded to “Other Assets”, and the related liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. Assets subject to finance leases are included in “Property, Plant & Equipment”, with corresponding liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. |
Assets Held for Sale | g) Assets Held for Sale: We classify assets and related liabilities as held for sale when the following criteria are met: when management has committed to a plan to sell the asset, the asset is available for immediate sale, there is an active program to locate a buyer and the sale and transfer of the asset is probable within one year. Assets and liabilities are presented separately on the Consolidated Balance Sheets with a valuation allowance, if necessary, to recognize the net carrying amount at the lower of cost or fair value, less costs to sell. Depreciation and amortization for property, plant and equipment and finite-lived intangible assets, are not recorded while these assets are classified as held for sale. Assets held for sale are tested for recoverability each period that they are classified as held for sale. The amounts and information in the footnotes as they are presented do not include assets and liabilities that have been reclassified as held for sale as of September 30, 2019. Refer to Note 7. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Data and Internet services $ 928 $ 961 $ 2,858 $ 2,919 Voice services 621 669 1,900 2,053 Video services 244 260 772 810 Other 113 141 357 416 Revenue from contracts with customers (1) 1,906 2,031 5,887 6,198 Subsidy revenue 91 95 278 289 Total revenue $ 1,997 $ 2,126 $ 6,165 $ 6,487 For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Consumer $ 1,024 $ 1,069 $ 3,151 $ 3,292 Commercial 882 962 2,736 2,906 Revenue from contracts with customers (1) 1,906 2,031 5,887 6,198 Subsidy revenue 91 95 278 289 Total revenue $ 1,997 $ 2,126 $ 6,165 $ 6,487 (1) Amount includes approximately $ 17 million and $ 18 million, and $ 52 million and $ 55 million of lease revenue for the three and nine months ended September 30, 2019 and 2018, respectively. |
Changes In Contract Assets And Contract Liabilities | Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at January 1, 2019 $ 44 $ 25 $ 49 $ 22 Revenue recognized included in opening contract balance ( 29 ) ( 5 ) ( 56 ) ( 14 ) Cash received, excluding amounts recognized as revenue - - 58 9 Credits granted, excluding amounts recognized as revenue 23 1 - - Reclassified between Current and NonCurrent 5 ( 5 ) ( 2 ) 2 Reclassified to held for sale ( 3 ) ( 1 ) ( 5 ) ( 1 ) Balance at September 30, 2019 $ 40 $ 15 $ 44 $ 18 Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at January 1, 2018 $ 40 $ 37 $ 41 $ 19 Revenue recognized included in opening contract balance ( 38 ) - ( 86 ) ( 4 ) Cash received, excluding amounts recognized as revenue - - 106 3 Credits granted, excluding amounts recognized as revenue 36 - - - Reclassified between Current and NonCurrent - - ( 10 ) 10 Other - - ( 6 ) - Balance at September 30, 2018 $ 38 $ 37 $ 45 $ 28 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2019 (remaining three months) $ 778 2020 1,909 2021 849 2022 385 2023 191 Thereafter 249 Total $ 4,361 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) September 30, 2019 December 31, 2018 Retail and wholesale $ 669 $ 745 Other 76 83 Less: Allowance for doubtful accounts ( 91 ) ( 105 ) Accounts receivable, net $ 654 $ 723 |
Allowance For Doubtful Accounts | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Bad debt expense $ 16 $ 21 $ 48 $ 62 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) September 30, 2019 December 31, 2018 Property, plant and equipment $ 26,274 $ 27,657 Less: Accumulated depreciation ( 13,301 ) ( 13,470 ) Property, plant and equipment, net $ 12,973 $ 14,187 |
Schedule Of Depreciation Expense | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Depreciation expense $ 321 $ 337 $ 1,016 $ 1,025 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Other Intangibles [Abstract] | |
Goodwill Rollforward | ($ in millions) Balance at January 1, 2019 $ 6,383 Reclassified as held for sale (1) ( 658 ) Goodwill impairment ( 5,725 ) Balance at September 30, 2019 $ - (1) Represents the amounts reclassified as held-for-sale related to the Company’s Northwest Operations. See Note 7. |
Components Of Other Intangibles | September 30, 2019 December 31, 2018 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 4,332 $ ( 3,356 ) $ 976 $ 5,188 $ ( 3,848 ) $ 1,340 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 50 ) 22 72 ( 40 ) 32 Total other intangibles $ 4,526 $ ( 3,406 ) $ 1,120 $ 5,382 $ ( 3,888 ) $ 1,494 |
Amortization Expense | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2019 2018 2019 2018 Amortization expense $ 101 $ 134 $ 344 $ 437 |
Planned Divestiture Of Northw_2
Planned Divestiture Of Northwest Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Planned Divestiture Of Northwest Operations [Abstract] | |
Components Of Held-For-Sale Assets And Liabilities | ($ in millions) September 30, 2019 ASSETS Accounts receivable, less allowances of $ 7 $ 51 Prepaid expenses 2 Contract acquisition costs 10 Other current assets 3 Property, plant and equipment, net 1,021 Goodwill (1) 658 Other intangibles, net 30 Other assets 26 Valuation allowance on assets held for sale ( 399 ) Total assets held for sale $ 1,402 LIABILITIES Accounts payable $ 10 Advanced billings 18 Accrued other taxes 13 Other current liabilities 23 Pension and other postretirement benefits (2) 30 Other liabilities 40 Total liabilities held for sale $ 134 (1) The assignment of goodwill was based on the relative fair value of the disposal group and the portion of the remaining reporting unit. (2) Excludes pension liability of $ 146 million, which will be fully funded upon closing. Approximately $ 87 million, or 60 % of the pension liability will be funded through the transfer of Pension Plan assets. The remaining liability will be separately funded by Frontier at the time of closing. |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | September 30, 2019 December 31, 2018 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 17,520 $ 11,690 $ 17,400 $ 12,756 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | For the nine months ended September 30, 2019 Principal Interest Rate at January 1, Payments September 30, September 30, ($ in millions) 2019 and Retirements New Borrowings 2019 2019* Secured debt issued by Frontier $ 5,246 $ ( 2,130 ) $ 2,599 $ 5,715 7.35 % Unsecured debt issued by Frontier 11,297 ( 348 ) - 10,949 9.63 % Secured debt issued by subsidiaries 107 ( 1 ) - 106 8.36 % Unsecured debt issued by subsidiaries 750 - - 750 6.90 % Total debt $ 17,400 $ ( 2,479 ) $ 2,599 $ 17,520 8.76 % Less: Debt Issuance Costs ( 178 ) ( 174 ) Less: Debt Discount ( 50 ) ( 47 ) Less: Current Portion ( 814 ) ( 994 ) Total Long-term debt $ 16,358 $ 16,305 * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at September 30, 2019 represent a weighted average of multiple issuances. |
Senior Unsecured Debt | September 30, 2019 December 31, 2018 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 3/31/2021 (1) $ - $ 1,402 5.280 % (Variable) Term loan due 10/12/2021 (2) - 239 7.405 % (Variable) Revolver due 2/27/2024 (3) 749 5.043 % (Variable) 275 5.280 % (Variable) Term loan due 6/15/2024 (4) 1,703 5.800 % (Variable) 1,716 6.280 % (Variable) First lien notes due 4/1/2027 1,650 8.000 % - Second lien notes due 4/1/2026 1,600 8.500 % 1,600 8.500 % IDRB due 5/1/2030 13 6.200 % 13 6.200 % Equipment financings - 1 0.000 % Total secured debt issued by Frontier 5,715 5,246 Senior notes due 3/15/2019 - 348 7.125 % Senior notes due 4/15/2020 172 8.500 % 172 8.500 % Senior notes due 9/15/2020 55 8.875 % 55 8.875 % Senior notes due 7/1/2021 89 9.250 % 89 9.250 % Senior notes due 9/15/2021 220 6.250 % 220 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 10,949 11,297 Secured debt issued by subsidiaries Debentures due 11/15/2031 100 8.500 % 100 8.500 % RUS loan contracts due 1/3/2028 6 6.154 % 7 6.154 % Total secured debt issued by subsidiaries 106 107 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 $ 17,520 8.522 % (5) $ 17,400 8.411 % (5) (1) Represents borrowings under the JPM Credit Agreement Term Loan A, as defined below. (2) Represents borrowings under the 2016 CoBank Credit Agreement, as defined below. (3) Represents borrowings under the JPM Credit Agreement Revolver, 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 | ($ in millions) Principal payments 2019 (remaining three months) $ 4 2020 $ 245 2021 $ 327 2022 $ 2,706 2023 $ 868 Thereafter $ 12,621 |
Restructuring Costs And Other_2
Restructuring Costs And Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Costs And Other Charges | |
Restructuring Reserve Rollforward | ($ in millions) Balance at January 1, 2019 $ 18 Severance expense 29 Transformation costs 38 Other restructuring costs 19 Cash payments during the period ( 95 ) Balance at September 30, 2019 $ 9 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Effect Of The Adoption Of ASC 842 | (Unaudited) As Reported ASC 842 Adjusted ($ in millions) December 31, 2018 Transition Adjustment January 1, 2019 Assets Other assets $ 265 $ 205 (1) $ 470 Liabilities and Equity (Deficit) Other current liabilities $ 394 $ 32 (2) $ 426 Other liabilities $ 281 $ 158 (3) $ 439 Deferred income taxes $ 1,109 $ 4 (4) $ 1,113 Accumulated deficit $ ( 2,752 ) $ 11 (5) $ ( 2,741 ) (1) Includes $ 205 million of operating Right-of-use (ROU) assets recorded upon adoption. (2) Includes $ 46 million of operating lease liabilities, partially offset by $ 14 million recognition of the current portion of deferred gains on sale of property to accumulated deficit. (3) Includes $ 168 million of operating lease liabilities, partially offset by $ 1 million recognition of deferred gains on sale of property to accumulated deficit and $ 9 million of deferred rent reclassified to Operating Right-of-use assets. (4) Represents the tax effect of the recognition of $ 15 million in deferred gains on sale of property to accumulated deficit. (5) Includes the recognition of $ 15 million in deferred gains on the sale of property, partially offset by $ 4 million tax impact on the recognition of the gain. |
Components Of Lease Cost | For the three months ended For the nine months ended ( $ in millions ) September 30, 2019 September 30, 2019 Lease cost: Finance lease cost: Amortization of right-of-use assets $ 3 $ 9 Interest on lease liabilities 3 11 Finance lease cost 6 20 Operating lease cost (1) 19 56 Sublease income ( 2 ) ( 9 ) Total Lease cost $ 23 $ 67 (1) Includes short-term lease cost of $ 0 and $ 2 million and variable lease cost of $ 1 million and $ 5 million for the three and nine months ended September 30, 2019, respectively. |
Supplemental Balance Sheet Information Related To Leases | ( $ in millions ) September 30, 2019 Operating right-of-use assets $ 196 (1) Finance right-of-use assets $ 170 (2) Operating lease liabilities $ 203 (3) Finance lease liabilities $ 161 (4) Operating leases: Weighted-average remaining lease term 7.61 years Weighted-average discount rate 8.26 % Finance leases: Weighted-average remaining lease term 8.86 years Weighted-average discount rate 7.97 % (1) Operating ROU assets are included in Other assets on our consolidated balance sheet. (2) Finance ROU assets are included in Property, plant, and equipment on our September 30, 2019 consolidated balance sheet. (3) This amount represents $ 44 million and $ 159 million included in other current liabilities and other liabilities, respectively, on our September 30, 2019 consolidated balance sheet. (4) This amount represents $ 28 million and $ 133 million included in other current liabilities and other liabilities, respectively, on our September 30, 2019 consolidated balance sheet. |
Supplemental Cash Flow Information Related To Leases | For the nine months ended ( $ in millions ) September 30, 2019 Cash paid for amount included in the measurement of lease liabilities, net of amounts received as revenue: Operating cash flows provided by operating leases $ 52 Operating cash flows used by operating leases $ ( 53 ) Operating cash flows used by finance leases $ ( 11 ) Financing cash flows used by finance leases $ ( 26 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 26 Finance leases $ 28 |
Maturity Analysis For Operating and Finance Lease Liabilities | Operating Finance ( $ in millions ) Leases Leases Future maturities: 2019 (remaining three months) $ 12 $ 11 2020 44 35 2021 38 31 2022 36 26 2023 33 22 Thereafter 106 104 Total lease payments 269 229 Less: imputed interest ( 66 ) ( 68 ) Present value of lease liabilities $ 203 $ 161 |
Maturity Analysis For Operating Leases From Customers | Operating ( $ in millions ) Lease Payments Future maturities of lease payments from customers: 2019 (remaining three months) $ 3 2020 10 2021 10 2022 10 2023 10 Thereafter 8 Total lease payments from customers $ 51 |
Investment And Other Income (_2
Investment And Other Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment And Other Income (Loss) [Abstract] | |
Components Of Investment And Other Income | For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2019 2018 2019 2018 Interest and dividend income $ 2 $ 2 $ 6 $ 5 Pension and OPEB benefit (costs) ( 12 ) 2 ( 34 ) 12 All other, net - ( 1 ) - ( 1 ) Total investment and other income (loss), net $ ( 10 ) $ 3 $ ( 28 ) $ 16 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended For the nine months ended September 30, September 30, 2019 2018 2019 2018 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit ( 0.7 ) 0.8 1.3 0.4 Remeasurement of certain deferred tax balances - - - 0.9 Tax reserve adjustment ( 0.1 ) 0.5 - 0.5 Changes in certain deferred tax balances ( 0.6 ) ( 10.4 ) ( 1.8 ) ( 8.6 ) Goodwill impairment ( 15.9 ) ( 10.4 ) ( 10.7 ) ( 10.3 ) Loss on disposal of Northwest Operations 1.8 - ( 1.2 ) - Shared-based payments - - ( 0.1 ) ( 0.8 ) Federal research and development tax credit 0.3 ( 1.0 ) - ( 1.0 ) All other, net ( 0.2 ) 0.4 - 0.4 Effective tax rate 5.6 % 0.9 % 8.5 % 2.5 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net Loss Per Share [Abstract] | |
Calculation Of Net Income (Loss) Per Common Share | For the three months ended For the nine months ended September 30, September 30, ( $ in millions and shares in thousands, except per share amounts ) 2019 2018 2019 2018 Net loss used for basic and diluted loss per share: Total basic net loss attributable to Frontier common shareholders $ ( 345 ) $ ( 426 ) $ ( 5,749 ) $ ( 531 ) Effect of loss related to dilutive stock units - - - - Total diluted net loss attributable to Frontier common shareholders $ ( 345 ) $ ( 426 ) $ ( 5,749 ) $ ( 531 ) Basic loss per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 105,372 105,740 105,375 88,997 Less: Weighted average unvested restricted stock awards ( 1,237 ) ( 2,075 ) ( 1,344 ) ( 1,859 ) Total weighted average shares outstanding - basic 104,135 103,665 104,031 87,138 Basic net loss per share attributable to Frontier common shareholders $ ( 3.31 ) $ ( 4.11 ) $ ( 55.26 ) $ ( 6.09 ) Diluted loss per share: Total weighted average shares outstanding - basic 104,135 103,665 104,031 87,138 Effect of dilutive stock units - - - - Total weighted average shares outstanding - diluted 104,135 103,665 104,031 87,138 Diluted net loss per share attributable to Frontier common shareholders $ ( 3.31 ) $ ( 4.11 ) $ ( 55.26 ) $ ( 6.09 ) |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock Plans [Abstract] | |
LTIP Target Performance Shares | Number of Shares (in thousands) Balance at January 1, 2019 497 LTIP target performance shares granted, net - LTIP target performance shares earned ( 41 ) LTIP target performance shares forfeited ( 20 ) Balance at September 30, 2019 436 |
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, 2019 1,858 $ 16.02 $ 4 Restricted stock granted 105 $ 2.00 $ - Restricted stock vested ( 711 ) $ 21.78 $ ( 1 ) Restricted stock forfeited ( 19 ) $ 32.44 Balance at September 30, 2019 1,233 $ 11.26 $ 1 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2019 (1) $ ( 489 ) $ 26 $ ( 463 ) Other comprehensive income (loss) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss to net loss 31 ( 6 ) 25 Net current-period other comprehensive income (loss) 31 ( 6 ) 25 Impact of adoption of ASU 2018-02 ( 83 ) 4 ( 79 ) Balance at September 30, 2019 (1) $ ( 541 ) $ 24 $ ( 517 ) ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2018 (1) $ ( 345 ) $ ( 21 ) $ ( 366 ) Other comprehensive income (loss) before reclassifications 1 1 2 Amounts reclassified from accumulated other comprehensive loss to net loss 38 ( 4 ) 34 Net current-period other comprehensive income (loss) 39 ( 3 ) 36 Balance at September 30, 2018 (1) $ ( 306 ) $ ( 24 ) $ ( 330 ) (1) Pension and OPEB amounts are net of tax of $ 250 million and $ 223 million as of January 1, 2019 and 2018, respectively and $ 163 million and $ 206 million as of September 30, 2019 and 2018, respectively. |
Reclassification Out of Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended For the nine months ended the Statement Where Details about Accumulated Other September 30, September 30, Net Loss Comprehensive Loss Components 2019 2018 2019 2018 is Presented Amortization of Pension Cost Items (2) Actuarial gains (losses) $ ( 14 ) $ ( 4 ) $ ( 42 ) $ ( 17 ) Pension settlement costs - ( 9 ) - ( 34 ) ( 14 ) ( 13 ) ( 42 ) ( 51 ) Loss before income taxes Tax impact 4 2 11 13 Income tax benefit $ ( 10 ) $ ( 11 ) $ ( 31 ) $ ( 38 ) Net loss Amortization of OPEB Cost Items (2) Prior-service costs $ 3 $ 1 $ 7 $ 6 Actuarial gains (losses) ( 1 ) - 1 ( 1 ) 2 1 8 5 Loss before income taxes Tax impact - - ( 2 ) ( 1 ) Income tax benefit $ 2 $ 1 $ 6 $ 4 Net loss (1) Amounts in parentheses indicate losses. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 17 - Retirement Plans for additional details) . |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Plans [Abstract] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2019 2018 2019 2018 Components of total pension benefit cost Service cost $ 21 $ 22 $ 63 $ 70 Interest cost on projected benefit obligation 33 31 98 91 Expected return on plan assets ( 43 ) ( 45 ) ( 129 ) ( 143 ) Amortization of unrecognized loss 14 4 42 17 Net periodic pension benefit cost $ 25 $ 12 $ 74 $ 35 Pension settlement costs - 9 - 34 Total pension benefit cost $ 25 $ 21 $ 74 $ 69 Postretirement Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2019 2018 2019 2018 Components of net periodic postretirement benefit cost Service cost $ 4 $ 5 $ 14 $ 16 Interest cost on projected benefit obligation 10 9 31 28 Amortization of prior service cost (credit) ( 3 ) ( 1 ) ( 7 ) ( 6 ) Amortization of unrecognized (gain) loss 1 - ( 1 ) 1 Net periodic postretirement benefit cost $ 12 $ 13 $ 37 $ 39 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Abstract] | |||||
Number of reportable segments | segment | 1 | ||||
Customer surcharges | $ 60 | $ 50 | $ 162 | $ 160 | |
Video franchise fees | 10 | $ 11 | $ 31 | $ 35 | |
Number of operating segments | segment | 1 | ||||
Restricted cash | $ 50 | $ 50 | $ 50 | ||
Expected customer life | 4 years | 4 years | |||
Funding term | 6 years |
Recent Accounting Literature (N
Recent Accounting Literature (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Accounting Standards Update 2018-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact of adoption of new accounting principle | $ (79) |
Accounting Standards Update 2018-11 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact of adoption of new accounting principle | 11 |
Cumulative-effect adjustment, Net of tax | $ 15 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 1,906 | $ 2,031 | $ 5,887 | $ 6,198 |
Subsidy revenue | 91 | 95 | 278 | 289 |
Total revenue | 1,997 | 2,126 | 6,165 | 6,487 |
Lease revenue | 17 | 18 | 52 | 55 |
Revenue from contracts with customers, performance obligation | 4,361 | 4,361 | ||
Data And Internet Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 928 | 961 | 2,858 | 2,919 |
Voice Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 621 | 669 | 1,900 | 2,053 |
Video Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 244 | 260 | 772 | 810 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 113 | 141 | 357 | 416 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,024 | 1,069 | 3,151 | 3,292 |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 882 | $ 962 | $ 2,736 | $ 2,906 |
Revenue Recognition (Changes In
Revenue Recognition (Changes In Contract Assets And Contract Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Recognition [Abstract] | ||
Contract current assets, Beginning balance | $ 44 | $ 40 |
Contract current assets, Revenue recognized included in opening contract balance | (29) | (38) |
Contract current assets, Credits granted, excluding amounts recognized as revenue | 23 | 36 |
Contract current assets, Reclassified between Current and NonCurrent | 5 | |
Contract current assets, Reclassified to held for sale | (3) | |
Contract current assets, Ending balance | 40 | 38 |
Contract noncurrent assets, Beginning balance | 25 | 37 |
Contract noncurrent assets, Revenue recognized included in opening contract balance | (5) | |
Contract noncurrent assets, Credits granted, excluding amounts recognized as revenue | 1 | |
Contract current assets, Reclassified between Current and NonCurrent | (5) | |
Contract noncurrent assets, Reclassified to held for sale | (1) | |
Contract current assets, Ending balance | 15 | 37 |
Contract current liabilities, Beginning balance | 49 | 41 |
Contract current liabilities, Revenue recognized included in opening contract balance | (56) | (86) |
Contract current liabilities, Cash received, excluding amounts recognized as revenue | 58 | 106 |
Contract current liabilities, Reclassified between Current and NonCurrent, NonCurrent | (2) | (10) |
Contract current liabilities, Other | (6) | |
Contract current liabilities, Reclassified to held for sale | (5) | |
Contract current liabilities, Ending balance | 44 | 45 |
Contract noncurrent liabilities, Beginning balance | 22 | 19 |
Contract noncurrent liabilities, Revenue recognized included in opening contract balance | (14) | (4) |
Contract noncurrent liabilities, Cash received, excluding amounts recognized as revenue | 9 | 3 |
Contract current liabilities, Reclassified between Current and NonCurrent | 2 | 10 |
Contract noncurrent liabilities, Reclassified to held for sale | (1) | |
Contract noncurrent liabilities, Ending balance | $ 18 | $ 28 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 4,361 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 778 |
Performance obligation satisfaction period | 1 year |
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, performance obligation | $ 1,909 |
Performance obligation satisfaction period | 1 year |
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, performance obligation | $ 849 |
Performance obligation satisfaction period | 1 year |
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, performance obligation | $ 385 |
Performance obligation satisfaction period | 1 year |
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, performance obligation | $ 191 |
Performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 249 |
Performance obligation satisfaction period | 1 year |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable [Abstract] | ||
Retail and wholesale | $ 669 | $ 745 |
Other | 76 | 83 |
Less: Allowance for doubtful accounts | (91) | (105) |
Accounts receivable, net | $ 654 | $ 723 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts Receivable [Abstract] | ||||
Bad debt expense | $ 16 | $ 21 | $ 48 | $ 62 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Proceeds from sale of property | $ 106 | $ 106 | |||
Towers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from sale of property | $ 76 | ||||
Aggregate carrying value | 1 | ||||
Gain on sale of property | $ 75 | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cumulative-effect adjustment, Net of tax | $ 15 | ||||
Cumulative-effect adjustment | $ 11 | 11 | |||
Accounting Standards Update 2018-11 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cumulative-effect adjustment, Net of tax | 15 | ||||
Cumulative-effect adjustment | $ 11 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant And Equipment [Abstract] | ||
Property, plant and equipment | $ 26,274 | $ 27,657 |
Less: Accumulated depreciation | (13,301) | (13,470) |
Property, plant and equipment, net | $ 12,973 | $ 14,187 |
Property, Plant And Equipment_3
Property, Plant And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 321 | $ 337 | $ 1,016 | $ 1,025 |
Goodwill And Other Intangible_2
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 276 | $ 5,449 | $ 400 | $ 5,725 | $ 400 | |
Impairment | $ 9,154 | $ 9,154 | $ 3,429 | |||
Customer Base [Member] | Maximum [Member] | ||||||
Goodwill [Line Items] | ||||||
Useful life | 12 years | |||||
Customer Base [Member] | Minimum [Member] | ||||||
Goodwill [Line Items] | ||||||
Useful life | 8 years |
Goodwill And Other Intangible_3
Goodwill And Other Intangibles (Goodwill Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Other Intangibles [Abstract] | |||||
Goodwill, Beginning Balance | $ 6,383 | ||||
Reclassification as held for sale | (658) | ||||
Goodwill impairment | $ (276) | $ (5,449) | $ (400) | $ (5,725) | $ (400) |
Goodwill And Other Intangible_4
Goodwill And Other Intangibles (Components Of Other Intangibles) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,526 | $ 5,382 |
Accumulated Amortization | (3,406) | (3,888) |
Net Carrying Amount | 1,120 | 1,494 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,332 | 5,188 |
Accumulated Amortization | (3,356) | (3,848) |
Net Carrying Amount | 976 | 1,340 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 122 | 122 |
Net Carrying Amount | 122 | 122 |
Royalty Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 72 | 72 |
Accumulated Amortization | (50) | (40) |
Net Carrying Amount | $ 22 | $ 32 |
Goodwill And Other Intangible_5
Goodwill And Other Intangibles (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Other Intangibles [Abstract] | ||||
Amortization expense | $ 101 | $ 134 | $ 344 | $ 437 |
Planned Divestiture Of Northw_3
Planned Divestiture Of Northwest Operations (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | May 31, 2019 | |
Planned Divestiture Of Northwest Operations [Abstract] | |||
Assets held for sale | $ 1,402 | $ 1,402 | |
Consideration amount | $ 1,352 | ||
Loss on disposal of Northwest Operations | $ 30 | $ 414 |
Planned Divestiture Of Northw_4
Planned Divestiture Of Northwest Operations (Schedule Of Assets And Liabilities Held For Sale) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Planned Divestiture Of Northwest Operations [Abstract] | |
Accounts receivable, less allowances of $7 | $ 51 |
Prepaid expenses | 2 |
Contract acquisition costs | 10 |
Other current assets | 3 |
Property, plant and equipment, net | 1,021 |
Goodwill | 658 |
Other intangibles, net | 30 |
Other assets | 26 |
Valuation allowance on assets held for sale | (399) |
Total assets held for sale | 1,402 |
Accounts payable | 10 |
Advanced billings | 18 |
Accrued other taxes | 13 |
Other current liabilities | 23 |
Total liabilities held for sale | 134 |
Pension and other postretirement benefits | 30 |
Other liabilities | 40 |
Allowance for accounts receivable, classified as held for sale | 7 |
Pension liability | 146 |
Pension asset to transfer | $ 87 |
Percent of pension liability to transfer | 60 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 17,520 | $ 17,400 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 11,690 | $ 12,756 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Mar. 15, 2019 | Jul. 03, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jul. 31, 2019 | Mar. 31, 2019 | Mar. 19, 2018 |
Debt Instrument [Line Items] | ||||||||
Payments to retire debt instruments | $ 2,479,000,000 | |||||||
Line of credit facility, current borrowings | 749,000,000 | |||||||
Loss on extinguishment of debt | (20,000,000) | $ 31,000,000 | ||||||
Proceeds from long-term debt borrowings | 1,650,000,000 | $ 1,840,000,000 | ||||||
Remaining outstanding principal | 17,520,000,000 | $ 17,400,000,000 | ||||||
Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, current borrowings | 101,000,000 | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments to retire debt instruments | $ 348,000,000 | |||||||
Debt instrument, maturity date | Mar. 15, 2019 | |||||||
Interest Rate | 7.125% | |||||||
Senior Unsecured Debt [Member] | Senior Notes Due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | $ 227,000,000 | |||||||
Senior Unsecured Debt [Member] | Senior Notes Due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | 309,000,000 | |||||||
Secured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | $ 5,715,000,000 | $ 5,246,000,000 | ||||||
Secured Debt [Member] | First Lien Notes Due 4/1/2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,650,000,000 | |||||||
Debt instrument, maturity date | Apr. 1, 2027 | |||||||
Interest Rate | 8.00% | 8.00% | ||||||
Remaining outstanding principal | $ 1,650,000,000 | |||||||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,600,000,000 | |||||||
Debt instrument, maturity date | Apr. 1, 2026 | |||||||
Interest Rate | 8.50% | 8.50% | 8.50% | |||||
Remaining outstanding principal | $ 1,600,000,000 | $ 1,600,000,000 | ||||||
Secured Debt [Member] | Term Loan Due 3/31/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 5.28% | |||||||
Remaining outstanding principal | $ 1,402,000,000 | |||||||
Secured Debt [Member] | Term Loan Due 10/12/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 12, 2021 | |||||||
Interest Rate | 7.405% | |||||||
Remaining outstanding principal | $ 239,000,000 | |||||||
Secured Debt [Member] | Term Loan Due 6/15/2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Jun. 15, 2024 | |||||||
Interest Rate | 5.80% | 6.28% | ||||||
Remaining outstanding principal | $ 1,703,000,000 | $ 1,716,000,000 | ||||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | $ 10,949,000,000 | $ 11,297,000,000 | ||||||
Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Jul. 1, 2021 | |||||||
Interest Rate | 9.25% | 9.25% | ||||||
Remaining outstanding principal | $ 89,000,000 | $ 89,000,000 | ||||||
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% | |||||||
Remaining outstanding principal | $ 348,000,000 | |||||||
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% | ||||||
Remaining outstanding principal | $ 172,000,000 | $ 172,000,000 | ||||||
Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Sep. 15, 2020 | |||||||
Interest Rate | 8.875% | 8.875% | ||||||
Remaining outstanding principal | $ 55,000,000 | $ 55,000,000 | ||||||
Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Sep. 15, 2021 | |||||||
Interest Rate | 6.25% | 6.25% | ||||||
Remaining outstanding principal | $ 220,000,000 | $ 220,000,000 | ||||||
Secured Subsidiary Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | 106,000,000 | 107,000,000 | ||||||
Unsecured Subsidiary Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining outstanding principal | $ 750,000,000 | $ 750,000,000 | ||||||
JP Morgan Combined Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Acceleration Clause | The maturities of the Term Loan B and the Revolver, 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 | |||||||
JP Morgan Revolving Credit Facility 2015 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Feb. 27, 2024 | Feb. 27, 2022 | ||||||
Line of credit facility maximum borrowing capacity | $ 850,000,000 | |||||||
JP Morgan Revolving Credit Facility 2015 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective basis spread | 3.00% | |||||||
JP Morgan Revolving Credit Facility 2015 [Member] | Secured Revolving Debt Due 2/27/2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Feb. 27, 2024 | |||||||
Increased interest rate | 0.25% | |||||||
JP Morgan Term Loan A [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,740,000,000 | $ 1,625,000,000 | ||||||
Debt instrument, maturity date | Jun. 15, 2024 | |||||||
JP Morgan Term Loan A [Member] | Senior Note Due 3/31/2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Mar. 1, 2021 | |||||||
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% | |||||||
JP Morgan Term Loan B [Member] | Term Loan Due 6/15/2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Jun. 15, 2024 | |||||||
Proceeds from long-term debt borrowings | $ 240,000,000 | |||||||
CoBank Term Loan 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 315,000,000 | |||||||
Debt instrument, maturity date | Oct. 1, 2021 | |||||||
Letter Of Credit, July 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, current borrowings | $ 20,000,000 | |||||||
Minimum [Member] | JP Morgan Term Loan A and Revolver [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 1.00% | |||||||
Minimum [Member] | JP Morgan Term Loan A and Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 2.00% | |||||||
Maximum [Member] | JP Morgan Term Loan A and Revolver [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 2.00% | |||||||
Maximum [Member] | JP Morgan Term Loan A and Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.00% |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | $ 17,400 | ||
Payments and Retirements | (2,479) | ||
New Borrowings | 2,599 | ||
Long-term debt, ending balance | 17,520 | ||
Long-term debt | 17,400 | $ 17,520 | $ 17,400 |
Less: Debt Issuance Cost | (174) | (178) | |
Less: Debt Discount | (47) | (50) | |
Less: Current Portion | (994) | (814) | |
Total Long term debt | $ 16,305 | 16,358 | |
Interest rate | 8.76% | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 5,246 | ||
Long-term debt, ending balance | 5,715 | ||
Long-term debt | 5,715 | $ 5,715 | 5,246 |
Secured Debt [Member] | Parent Company [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 5,246 | ||
Payments and Retirements | (2,130) | ||
New Borrowings | 2,599 | ||
Long-term debt, ending balance | 5,715 | ||
Long-term debt | 5,246 | $ 5,715 | 5,246 |
Interest rate | 7.35% | ||
Secured Debt [Member] | Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 107 | ||
Payments and Retirements | (1) | ||
Long-term debt, ending balance | 106 | ||
Long-term debt | 107 | $ 106 | 107 |
Interest rate | 8.36% | ||
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 11,297 | ||
Long-term debt, ending balance | 10,949 | ||
Long-term debt | 10,949 | $ 10,949 | 11,297 |
Unsecured Debt [Member] | Parent Company [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 11,297 | ||
Payments and Retirements | (348) | ||
Long-term debt, ending balance | 10,949 | ||
Long-term debt | 11,297 | $ 10,949 | 11,297 |
Interest rate | 9.63% | ||
Unsecured Debt [Member] | Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 750 | ||
Long-term debt, ending balance | 750 | ||
Long-term debt | $ 750 | $ 750 | $ 750 |
Interest rate | 6.90% |
Long-Term Debt (Senior Unsecure
Long-Term Debt (Senior Unsecured Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 19, 2018 | |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 17,520 | $ 17,400 | ||
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 5,715 | 5,246 | ||
Secured Debt [Member] | Term Loan Due 3/31/2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,402 | |||
Interest Rate | 5.28% | |||
Secured Debt [Member] | Term Loan Due 10/12/2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 239 | |||
Interest Rate | 7.405% | |||
Debt instrument, maturity date | Oct. 12, 2021 | |||
Secured Debt [Member] | Revolver Due 2/27/2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 749 | $ 275 | ||
Interest Rate | 5.043% | 5.28% | ||
Debt instrument, maturity date | Feb. 27, 2024 | |||
Secured Debt [Member] | Term Loan Due 6/15/2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,703 | $ 1,716 | ||
Interest Rate | 5.80% | 6.28% | ||
Debt instrument, maturity date | Jun. 15, 2024 | |||
Secured Debt [Member] | First Lien Notes Due 4/1/2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,650 | |||
Interest Rate | 8.00% | 8.00% | ||
Debt instrument, maturity date | Apr. 1, 2027 | |||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,600 | $ 1,600 | ||
Interest Rate | 8.50% | 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 | |||
Interest Rate | 0.00% | |||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 10,949 | $ 11,297 | ||
Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 348 | |||
Interest Rate | 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 | $ 172 | ||
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 | $ 55 | ||
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 | $ 89 | ||
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 | $ 220 | ||
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 | $ 106 | $ 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 | $ 6 | $ 7 | ||
Interest Rate | 6.154% | 6.154% | ||
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 | |||
Senior Secured Debt [Member] | Term Loan Due 3/31/2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Mar. 31, 2021 | |||
Secured Debt, Unsecured Debt, Secured Subsidiary Debt, And Unsecured Subsidiary Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 17,520 | $ 17,400 | ||
Interest Rate | 8.522% | 8.411% |
Long-Term Debt (Debt Maturities
Long-Term Debt (Debt Maturities By Year) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Long-Term Debt [Abstract] | |
Principal Payments 2019 (remaining three months) | $ 4 |
Principal Payments 2020 | 245 |
Principal Payments 2021 | 327 |
Principal Payments 2022 | 2,706 |
Principal Payments 2023 | 868 |
Thereafter | $ 12,621 |
Restructuring Costs And Other_3
Restructuring Costs And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Costs And Other Charges | |||
Severance expense | $ 29 | ||
Transformation costs | $ 9 | $ 38 | |
Restructuring charges | $ 11 | ||
Payment of restructuring costs | $ 30 |
Restructuring Costs And Other_4
Restructuring Costs And Other Charges (Restructuring Reserve Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | $ 18 | |
Severance expense | 29 | |
Transformation costs | $ 9 | 38 |
Other restructuring costs | 19 | |
Cash payments during the period | (95) | |
Restructuring Reserve, Ending Balance | $ 9 | $ 9 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Line Items] | |||||
Option to terminate leases, Lessee | 1 year | ||||
Option to terminate leases, Lessor | 1 year | ||||
Lease revenue | $ 17 | $ 18 | $ 52 | $ 55 | |
Accounting Standards Update 2016-02 [Member] | |||||
Leases [Line Items] | |||||
Impact of adoption of new accounting principle | $ 11 | 11 | |||
Cumulative-effect adjustment, Net of tax | $ 11 | 11 | |||
Accounting Standards Update 2018-11 [Member] | |||||
Leases [Line Items] | |||||
Impact of adoption of new accounting principle | 11 | ||||
Cumulative-effect adjustment, Net of tax | $ 11 | ||||
Minimum [Member] | |||||
Leases [Line Items] | |||||
Operating and finace lease terms, Lessee | 1 year | ||||
Operator lease terms, Lessor | 1 year | 1 year | |||
Maximum [Member] | |||||
Leases [Line Items] | |||||
Operating and finace lease terms, Lessee | 99 years | ||||
Operator lease terms, Lessor | 99 years | 99 years |
Leases (Effect Of The Adoption
Leases (Effect Of The Adoption Of ASC 842) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Other assets | $ 459 | $ 459 | $ 470 | $ 265 | ||
Other current liabilities | 386 | 386 | 426 | 394 | ||
Other liabilities | 398 | 398 | 439 | 281 | ||
Deferred income taxes | 580 | 580 | 1,113 | 1,109 | ||
Accumulated deficit | (8,411) | (8,411) | (2,741) | (2,752) | ||
Operating lease liabilities | 203 | 203 | ||||
Operating right-of-use assets | 196 | 196 | ||||
Income tax expense (benefit) | (21) | $ (4) | (537) | $ (11) | ||
Previously Reported [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Other assets | 265 | |||||
Other current liabilities | 394 | |||||
Other liabilities | 281 | |||||
Deferred income taxes | 1,109 | |||||
Accumulated deficit | $ (2,752) | |||||
Other Current Liabilities [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Current operating lease liabilities | 44 | 44 | ||||
Other Noncurrent Liabilities [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Noncurrent operating lease liabilities | $ 159 | $ 159 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Other assets | 205 | |||||
Other current liabilities | 32 | |||||
Other liabilities | 158 | |||||
Deferred income taxes | 4 | |||||
Accumulated deficit | 11 | |||||
Operating right-of-use assets | 205 | |||||
Current operating lease liabilities | 46 | |||||
Noncurrent operating lease liabilities | 168 | |||||
Accounting Standards Update 2016-02 [Member] | Accumulated Deficit [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Deferred gain on sale of property | 15 | |||||
Tax effect on the gain of sale of property | 4 | |||||
Accounting Standards Update 2016-02 [Member] | Other Current Liabilities [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Deferred gain on sale of property | 14 | |||||
Accounting Standards Update 2016-02 [Member] | Other Noncurrent Liabilities [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Deferred rent | 9 | |||||
Deferred gain on sale of property | 1 | |||||
Accounting Standards Update 2016-02 [Member] | Deferred Tax Liabilities Noncurrent [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Deferred gain on sale of property | $ 15 |
Leases (Components Of Lease Cos
Leases (Components Of Lease Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 3 | $ 9 |
Interest on lease liabilities | 3 | 11 |
Finance lease cost | 6 | 20 |
Operating lease cost | 19 | 56 |
Sublease income | (2) | (9) |
Total Lease cost | 23 | 67 |
Short-term lease cost | 0 | 2 |
Variable lease cost | $ 1 | $ 5 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Supplemental Balance Sheet Information Related To Leases [Line Items] | |
Operating right-of-use assets | $ 196 |
Finance right-of-use assets | 170 |
Operating lease liabilities | 203 |
Finance lease liabilities | $ 161 |
Operating leases, Weighted-average remaining lease term | 7 years 7 months 9 days |
Operating leases, Weighted-average discount rate | 8.26% |
Finance lease, Weighted-average remaining lease term | 8 years 10 months 9 days |
Finance lease, Weighted-average discount rate | 7.97% |
Other Current Liabilities [Member] | |
Supplemental Balance Sheet Information Related To Leases [Line Items] | |
Finance lease liabilities, Current | $ 28 |
Current operating lease liabilities | 44 |
Other Noncurrent Liabilities [Member] | |
Supplemental Balance Sheet Information Related To Leases [Line Items] | |
Financed lease liabilities, Noncurrent | 133 |
Noncurrent operating lease liabilities | $ 159 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows provided by operating leases | $ 52 |
Operating cash flows used by operating leases | (53) |
Operating cash flows used by finance leases | (11) |
Financing cash flows used by finance leases | (26) |
Right-of-use assets obtained in exchange for lease liabilities, Operating leases | 26 |
Right-of-use assets obtained in exchange for lease liabilities, Finance leases | $ 28 |
Leases (Maturity Analysis For O
Leases (Maturity Analysis For Operating and Finance Lease) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 (remaining three months) | $ 12 |
2020 | 44 |
2021 | 38 |
2022 | 36 |
2023 | 33 |
Thereafter | 106 |
Total lease payments | 269 |
Less: imputed interest | (66) |
Present value of lease liabilities | 203 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 (remaining three months) | 11 |
2020 | 35 |
2021 | 31 |
2022 | 26 |
2023 | 22 |
Thereafter | 104 |
Total lease payments | 229 |
Less: imputed interest | (68) |
Present value of lease liabilities | $ 161 |
Leases (Maturity Analysis For_2
Leases (Maturity Analysis For Operating Leases From Customers) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining three months) | $ 3 |
2020 | 10 |
2021 | 10 |
2022 | 10 |
2023 | 10 |
Thereafter | 8 |
Total lease payments from customers | $ 51 |
Investment And Other Income (_3
Investment And Other Income (Loss) (Components Of Investment And Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investment And Other Income (Loss) [Abstract] | ||||
Interest and dividend income | $ 2 | $ 2 | $ 6 | $ 5 |
Pension and OPEB benefit (costs) | (12) | 2 | (34) | 12 |
All other, net | (1) | (1) | ||
Total investment and other income (loss), net | $ (10) | $ 3 | $ (28) | $ 16 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Contingency [Line Items] | ||
Valuation allowance | $ 141 | |
Net of federal benefit | 113 | |
Deferred Tax Assets, Net, Current | 2 | |
Deferred Tax Assets, Net, Noncurrent | $ 2 | |
Shareholder's Right Plan [Member] | ||
Income Tax Contingency [Line Items] | ||
Beneficial ownership | 4.90% | |
Internal Revenue Service (IRS) [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforward | $ 2,400 | |
Washington, Oregon, Idaho, And Montana [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforward | $ 1,000 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Consolidated tax provision at federal statutory rate (in hundredths) | 21.00% | 21.00% | 21.00% | 21.00% |
State income tax provisions, net of federal income tax benefit (in hundredths) | (0.70%) | 0.80% | 1.30% | 0.40% |
Remeasurement of certain deferred tax balances (in hundredths) | 0.90% | |||
Tax reserve adjustment (in hundredths) | (0.10%) | 0.50% | 0.50% | |
Changes in certain deferred tax balances (in hundredths) | (0.60%) | (10.40%) | (1.80%) | (8.60%) |
Goodwill impairment (in hundreths) | (15.90%) | (10.40%) | (10.70%) | (10.30%) |
Loss on disposal of Northwest Operations (in hundreths) | 1.80% | (1.20%) | ||
Shared-based payments (in hundreths) | (0.10%) | (0.80%) | ||
Federal research and development tax credit (in hundreths) | 0.30% | (1.00%) | (1.00%) | |
All other, net (in hundredths) | (0.20%) | 0.40% | 0.40% | |
Effective tax rate (in hundredths) | 5.60% | 0.90% | 8.50% | 2.50% |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted earnings per share (in shares) | 1,344 | 1,344 | 1,344 | 1,344 |
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) | 339,544 | 299,827 | ||
Expense recognized during the period | $ 0 | $ 1 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Loss Per Share [Abstract] | ||||
Total basic net loss attributable to Frontier common shareholders | $ (345) | $ (426) | $ (5,749) | $ (531) |
Total diluted net loss attributable to Frontier common shareholders | $ (345) | $ (426) | $ (5,749) | $ (531) |
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 105,372 | 105,740 | 105,375 | 88,997 |
Less: Weighted average unvested restricted stock awards (in shares) | (1,237) | (2,075) | (1,344) | (1,859) |
Total weighted average shares outstanding - basic (in shares) | 104,135 | 103,665 | 104,031 | 87,138 |
Basic net loss per share attributable to Frontier common shareholders | $ (3.31) | $ (4.11) | $ (55.26) | $ (6.09) |
Total weighted average shares outstanding - diluted (in shares) | 104,135 | 103,665 | 104,031 | 87,138 |
Diluted net loss per share attributable to Frontier common shareholders | $ (3.31) | $ (4.11) | $ (55.26) | $ (6.09) |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2019USD ($)ShareBasedCompensationPlan$ / sharesshares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | |
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 | 2,801,000 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for grant under the plans (in shares) | shares | 497,000 | ||
Expense recognized during the period | $ 3 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense recognized during the period | $ 7 | $ 10 | |
Shares granted (in shares) | shares | 105,000 | ||
Restricted Stock | |||
Restricted stock vested, fair value | $ 1 | ||
Fair value of unvested restricted stock | $ 1 | $ 4 | |
Restriced stock, grant date fair value per share | $ / shares | $ 11.26 | $ 16.02 | |
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ 8 | ||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 1 year |
Stock Plans (LTIP Target Perfor
Stock Plans (LTIP Target Performance Shares) (Details) - Performance Shares [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | 497 |
LTIP target performance shares earned (in shares) | (41) |
LTIP target performance shares forfeited (in shares) | (20) |
Balance at end of period (in shares) | 436 |
Stock Plans (Restricted Shares
Stock Plans (Restricted Shares Outstanding) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 1,858,000 |
Restricted stock granted (in shares) | shares | 105,000 |
Restricted stock vested (in shares) | shares | (711,000) |
Restricted stock forfeited (in shares) | shares | (19,000) |
Balance at end of period (in shares) | shares | 1,233,000 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 16.02 |
Restricted stock granted (in dollars per shares) | $ / shares | 2 |
Restricted stock vested (in dollars per shares) | $ / shares | 21.78 |
Restricted stock forfeited (in dollars per shares) | $ / shares | 32.44 |
Balance at end of period (in dollars per shares) | $ / shares | $ 11.26 |
Balance at beginning of period, Aggregate fair value | $ | $ 4 |
Restricted stock vested, Aggregate fair value | $ | (1) |
Balance at end of period, Aggregate fair value | $ | $ 1 |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss, Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | $ (3,771) | $ 1,535 | $ 1,600 | $ 2,401 | $ 2,396 | $ 2,274 | $ 1,600 | $ 2,274 | ||
Net current-period other comprehensive income (loss) | 8 | 9 | 8 | (34) | 71 | (1) | 25 | 36 | ||
Balance | (4,103) | (3,771) | 1,535 | 1,943 | 2,401 | 2,396 | (4,103) | 1,943 | ||
Pension Benefits [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | (489) | (345) | (489) | (345) | ||||||
Other comprehensive income (loss) before reclassifications | 1 | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | 31 | 38 | ||||||||
Net current-period other comprehensive income (loss) | 31 | 39 | ||||||||
Balance | (541) | (306) | (541) | (306) | ||||||
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | 26 | (21) | 26 | (21) | ||||||
Other comprehensive income (loss) before reclassifications | 1 | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | (6) | (4) | ||||||||
Net current-period other comprehensive income (loss) | (6) | (3) | ||||||||
Balance | 24 | (24) | 24 | (24) | ||||||
Deferred Taxes On Pension And OPEB Costs [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Deferred tax items | 163 | 206 | 163 | 206 | $ 250 | $ 223 | ||||
Accumulated Other Comprehensive Loss [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | (525) | (534) | (463) | (296) | (367) | (366) | (463) | (366) | ||
Other comprehensive income (loss) before reclassifications | 2 | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | 25 | 34 | ||||||||
Net current-period other comprehensive income (loss) | 8 | 9 | 8 | (34) | 71 | (1) | 25 | 36 | ||
Balance | $ (517) | $ (525) | (534) | $ (330) | $ (296) | $ (367) | (517) | $ (330) | ||
Accounting Standards Update 2018-02 [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Cumulative-effect adjustment, Net of tax | (79) | |||||||||
Accounting Standards Update 2018-02 [Member] | Pension Benefits [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Cumulative-effect adjustment, Net of tax | (83) | |||||||||
Accounting Standards Update 2018-02 [Member] | Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Cumulative-effect adjustment, Net of tax | 4 | |||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Other Comprehensive Loss [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Cumulative-effect adjustment, Net of tax | $ (79) | $ (79) |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | $ (14) | $ (13) | $ (42) | $ (51) |
Reclassifications, net of tax | (31) | (38) | ||
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | 6 | 4 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Amortization Of Defined Benefit Cost Items [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax impact | 4 | 2 | 11 | 13 |
Reclassifications, net of tax | (10) | (11) | (31) | (38) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Actuarial Gains (Losses) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | (14) | (4) | (42) | (17) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits [Member] | Pension Settlement Cost [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | (9) | (34) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Benefits Other Than Pensions (OPEB) [Member] | Amortization Of Defined Benefit Cost Items [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | 2 | 1 | 8 | 5 |
Tax impact | (2) | (1) | ||
Reclassifications, net of tax | 2 | 1 | 6 | 4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Benefits Other Than Pensions (OPEB) [Member] | Prior-Service Credits (Costs) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | 3 | $ 1 | 7 | 6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Benefits Other Than Pensions (OPEB) [Member] | Actuarial Gains (Losses) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | $ (1) | $ 1 | $ (1) |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Capitalization of pension and OPEB expense related to engineering and plant construction | $ 18 | $ 20 | |
Defined benefit plan, cash contributions by employer | 129 | ||
Plan assets | 2,670 | $ 2,348 | |
Increase in pension assets | $ 322 | ||
Percentage of increase in pension plan | 14.00% | ||
Positive investment returns | $ 404 | ||
Benefit payments | 211 | ||
Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan contributions required, 2019 | 166 | ||
Plan contributions | $ 129 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension settlement costs | $ 34 | |||
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 21 | $ 22 | $ 63 | 70 |
Interest cost on projected benefit obligation | 33 | 31 | 98 | 91 |
Expected return on plan assets | (43) | (45) | (129) | (143) |
Amortization of unrecognized (gain) loss | 14 | 4 | 42 | 17 |
Net periodic pension benefit cost | 25 | 12 | 74 | 35 |
Pension settlement costs | 9 | 34 | ||
Net periodic benefit cost | 25 | 21 | 74 | 69 |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 4 | 5 | 14 | 16 |
Interest cost on projected benefit obligation | 10 | 9 | 31 | 28 |
Amortization of prior service cost (credit) | (3) | (1) | (7) | (6) |
Amortization of unrecognized (gain) loss | 1 | (1) | 1 | |
Net periodic benefit cost | $ 12 | $ 13 | $ 37 | $ 39 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Regulatory Commitments [Abstract] | |
Number of States in our Territory | 29 |
CAF Phase II [ Member] | |
Regulatory Commitments [Abstract] | |
Annual support offered by the Federal Communications Commission | $ 332 |
Number of households to be serviced under regulatory funded programs | 774,000 |
Northwest Operations [Member] | |
Regulatory Commitments [Abstract] | |
Annual support offered by the Federal Communications Commission | $ 19 |