Document and Entity Information
Document and Entity Information - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
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 | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,988 | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock, par value $0.25 per share | |
Trading Symbol | FTRCQ | |
Security Exchange Name | NONE | |
Preferred Stock [Member] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 941 | $ 760 |
Accounts receivable, less allowances of $100 and $120, respectively | 596 | 629 |
Contract acquisition costs | 105 | 105 |
Prepaid expenses | 98 | 89 |
Assets held for sale | 1,406 | 1,401 |
Income taxes and other current assets | 56 | 53 |
Total current assets | 3,202 | 3,037 |
Property, plant and equipment, net | 12,890 | 12,963 |
Other intangibles, net | 921 | 1,020 |
Other assets | 475 | 468 |
Total assets | 17,488 | 17,488 |
Current liabilities: | ||
Long-term debt due within one year | 17,306 | 994 |
Accounts payable | 357 | 437 |
Advanced billings | 221 | 219 |
Accrued other taxes | 209 | 206 |
Accrued interest | 619 | 407 |
Pension and other postretirement benefits | 43 | 43 |
Liabilities held for sale | 115 | 123 |
Other current liabilities | 359 | 375 |
Total current liabilities | 19,229 | 2,804 |
Deferred income taxes | 477 | 462 |
Pension and other postretirement benefits | 1,864 | 1,896 |
Other liabilities | 411 | 412 |
Long-term debt | 16,308 | |
Equity (Deficit): | ||
Common stock, $0.25 par value (175,000 authorized shares, 106,025 issued and 104,989 and 105,131 outstanding at March 31, 2020 and December 31, 2019, respectively) | 27 | 27 |
Additional paid-in capital | 4,816 | 4,815 |
Accumulated deficit | (8,759) | (8,573) |
Accumulated other comprehensive loss, net of tax | (564) | (650) |
Treasury common stock | (13) | (13) |
Total equity (deficit) | (4,493) | (4,394) |
Total liabilities and equity (deficit) | $ 17,488 | $ 17,488 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 100 | $ 120 |
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) | 104,989,000 | 105,131,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Operations [Abstract] | ||
Revenue | $ 1,933 | $ 2,101 |
Operating expenses: | ||
Network access expenses | 286 | 338 |
Network related expenses | 444 | 456 |
Selling, general and administrative expenses | 444 | 456 |
Depreciation and amortization | 415 | 484 |
Loss on disposal of Northwest Operations | 24 | |
Restructuring costs and other charges | 48 | 28 |
Total operating expenses | 1,661 | 1,762 |
Operating income | 272 | 339 |
Investment and other income (loss), net | 5 | (9) |
Pension settlement costs | 103 | |
Loss on extinguishment of debt | (20) | |
Interest expense | 383 | 379 |
Loss before income taxes | (209) | (69) |
Income tax (benefit) expense | (23) | 18 |
Net loss | $ (186) | $ (87) |
Basic and diluted net loss per share attributable to Frontier common shareholders | $ (1.78) | $ (0.84) |
Total weighted average shares outstanding - basic and diluted | 104,363 | 103,885 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Comprehensive Loss [Abstract] | ||
Net loss | $ (186) | $ (87) |
Other comprehensive income, net of tax | 86 | 8 |
Comprehensive loss | $ (100) | $ (79) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Common Stock [Member] | Total |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | $ 11 | $ 11 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2018-02 [Member] | 79 | $ (79) | ||||
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) | ||||
Stock plans | 3 | 3 | ||||
Stock plans (in shares) | (229) | |||||
Net loss | (87) | (87) | ||||
Other comprehensive income, 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, 2019 | $ 27 | 4,815 | (8,573) | (650) | $ (13) | $ (4,394) |
Common Stock Balance (in shares) at Dec. 31, 2019 | 106,025 | (894) | 105,131 | |||
Stock plans | 1 | $ 1 | ||||
Stock plans (in shares) | (143) | |||||
Net loss | (186) | (186) | ||||
Other comprehensive income, net of tax | 86 | 86 | ||||
Balance at Mar. 31, 2020 | $ 27 | $ 4,816 | $ (8,759) | $ (564) | $ (13) | $ (4,493) |
Common Stock Balance (in shares) at Mar. 31, 2020 | 106,025 | (1,037) | 104,989 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows provided from (used by) operating activities: | ||
Net loss | $ (186) | $ (87) |
Adjustments to reconcile net loss to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 415 | 484 |
Loss on extinguishment of debt | 20 | |
Pension settlement costs | 103 | |
Stock-based compensation expense | 1 | 3 |
Amortization of deferred financing costs | 8 | 9 |
Other adjustments | 1 | |
Deferred income taxes | (30) | 16 |
Loss on disposal of Northwest Operations | 24 | |
Change in accounts receivable | 29 | 7 |
Change in accounts payable and other liabilities | 110 | (157) |
Change in prepaid expenses, income taxes and other assets | 2 | (13) |
Net cash provided from operating activities | 477 | 282 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures | (286) | (305) |
Proceeds on sale of assets | 2 | 74 |
Other | 2 | |
Net cash used by investing activities | (282) | (231) |
Cash flows provided from (used by) financing activities: | ||
Long-term debt principle payments | (5) | (1,995) |
Proceeds from long-term debt borrowings | 1,650 | |
Proceeds from revolving debt | 375 | |
Repayment of revolving debt | (275) | |
Financing costs paid | (30) | |
Finance lease obligation payments | (8) | (8) |
Other | (3) | |
Net cash used by financing activities | (13) | (286) |
Increase (Decrease) in cash, cash equivalents, and restricted cash | 182 | (235) |
Cash, cash equivalents, and restricted cash at January 1, | 809 | 404 |
Cash, cash equivalents, and restricted cash at March 31, | 991 | 169 |
Cash paid during the period for: | ||
Interest | 163 | $ 525 |
Income tax payments, net | $ 1 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019. Certain reclassifications of amounts previously reported have been made to conform to the current presentation. All significant intercompany balances and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net loss and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. For our interim financial statements as of and for the period ended March 31, 2020, 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) Going Concern Our interim unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. In connection with the preparation of our interim unaudited consolidated financial statements, we conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity’s ability to continue as a going concern. As reflected in our consolidated financial statements, the Company had cash and cash equivalents of $ 941 million and an accumulated deficit of $ 8,759 million as of March 31, 2020. The Company also had operating income of $ 272 million and a net loss of $ 186 million for the three months ended March 31, 2020. On April 14, 2020, Frontier Communications Corporation and its subsidiaries (collectively, the Company Parties) entered into a Restructuring Support Agreement (the Restructuring Support Agreement) with certain of its noteholders (the Consenting Noteholders). The Restructuring Support Agreement contemplates agreed-upon terms for a pre-arranged financial restructuring plan (the Plan) that leaves unimpaired all general unsecured creditors and holders of secured debt and subsidiary debt. Under the Restructuring Support Agreement, the Consenting Noteholders have agreed, subject to certain terms and conditions, to support a financial restructuring (the Restructuring) of the existing debt of, existing equity interests in, and certain other obligations of the Company Parties, pursuant to the Plan to be filed in cases commenced under chapter 11 (the Chapter 11 Cases) of the United States Bankruptcy Code (the Bankruptcy Code). To implement the Plan, on April 14, 20 20 (the Petition Date), the Company Parties filed the Chapter 11 Cases in the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). Each Company Party will continue to operate its business as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The Chapter 11 Cases are being jointly administered under the caption In re Frontier Communications Corporation., et al ., Case No. 20-22476 (RDD). Our ability to continue as a going concern is contingent upon, among other things, our ability to, subject to the Bankruptcy Court’s approval, implement the Plan, successfully emerge from the Chapter 11 Cases and generate sufficient liquidity from the Restructuring to meet our obligations and operating needs . As a result of risks and uncertainties related to (i) the Company’s ability to obtain requisite support for the Plan from various stakeholders, and (ii) the effects of disruption from the Chapter 11 Cases making it more difficult to maintain business, financing and operational relationships, together with the Company’s recurring losses from operations and accumulated deficit, substantial doubt exists regarding our ability to continue as a going concern. For detailed discussion about the Restructuring Support Agreement and the Plan, refer to note 18. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the JPM Credit Facilities, the First Lien Notes, the Second Lien Notes, our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. As such, we have reclassified all debt obligations to “Long term debt due within one year” on our consolidated balance sheet as of March 31, 2020. For additional discussion related to the impact of the Chapter 11 Cases on our debt obligations, refer to Note 9. Our consolidated interim unaudited financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. c) Impact of COVID-19 On March 11, 2020, the World Health Organization declared the highly contagious and lethal corona virus outbreak a global pandemic (COVID-19) and recommended containment and other mitigation measures worldwide to lessen the transmission of COVID-19. In the first quarter of 2020, governments from around the world, including the United States federal government as well as state and local governments have reacted to this public health crisis, imposing travel restrictions and restrictions on large gatherings of people, which includes school and non-essential business closures. The rapid spread of COVID-19 and the drastic responses being taken to curb its spread have resulted in a significant negative impact to the global and domestic economies, which will increase the longer these limitations are in place. In an effort to reduce the economic impacts of COVID-19, the United States federal government has responded with multiple stimulus bills, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest economic stimulus legislation in American history. Despite these efforts, the short-term and long-term impacts of COVID-19 cannot be determined. With more people staying at home and an increased reliance on broadband and telephone networks, the FCC issued the Keep Americans Connected Pledge on March 11, 2020, which provides for telecommunication providers, including Frontier, to not terminate service and to waive any late payment fees for 60 days for certain customers due to economic circumstances they are facing related to COVID-19 as well as making WIFI hotspots available to all Americans who need them. In addition, we have seen a number of the states we operate in issue executive orders that impact our business, including prohibiting the disconnection of services for customers for the length of the state of emergency. State and federal governments continue to ask companies to aid in pandemic response. Given the unprecedented and evolving nature of the pandemic and the swift moving response of multiple levels of government as well as the uncertainty of funding available for services provided, the impact of these changes and potential changes on the Company are unknown at this time. In addition to committing to the Keep Americans Connected Pledge, Frontier’s response to COVID-19 includes limiting our product offerings to those that do not require a field service employee to enter a customer’s home and directing most non-field service employees to work from home. Thus far only a few of Frontier’s employees have been tested positive for COVID-19. Through March 31, 2020, we had not experienced any disruptions in our supply chain; however, some of our business partners, particularly those operating outside of the United States, have been more greatly impacted which has affected our service levels and distribution of work. While overall the operational and financial impact to Frontier of the COVID-19 pandemic for the three months ended March 31, 2020 were not significant, we continue to closely monitor the ongoing impact to our employees, our customers, our business and our results of operations. For example, we have experienced a slowdown in service activations and an increase in deactivations for our SMB customers; however, these negative impacts have been partially offset, by higher residential activations and lower churn. While we haven’t noticed any meaningful changes in our customers’ payment behaviors, we continue to closely monitor as any changes could have a material financial impact to Frontier. With more people working from home, we have experienced higher demands on our network and higher sales activity for our residential broadband service offering. We have not experienced any significant disruptions in our service through March 31, 2020; however, a sustained increase in network demand that we have experienced could lead to reduced network availability and potential outages, which may impair our ability to meet customer service level commitments, lead to higher costs, higher customer churn and potential increased regulatory actions. d) 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 $ 49 million and $ 53 million for the three months ended March 31, 2020 and 2019, respectively, and video franchise fees, which amounted to $ 9 million and $ 11 million, for the three months ended March 31, 2020 and 2019, 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. e) 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 March 31, 2020 and December 31, 2019. This amount represents funds held as collateral by a bank against letters of credit issued predominately to insurance carriers. f) Goodwill and Other Intangibles: Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible net assets acquired. We undertake studies to determine the fair values of assets and liabilities acquired and allocate purchase prices to assets and liabilities, including property, plant and equipment, goodwill and other identifiable intangibles. We examine the carrying value of our goodwill and trade name annually as of December 31, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. We test for goodwill impairment at the “reporting unit” level, as that term is defined in GAAP. We have two reporting units (following the announcement of the sale of the Northwest Operations) that aggregate to one operating segment, based on a number of factors that our management uses to evaluate and run our business operations, including similarities of customers, products and technology. As of December 31, 2019, all goodwill was fully impaired, other than goodwill reclassified to Assets held for sale. No further impairment testing is required as of March 31, 2020. Refer to Note 6. Frontier amortizes its acquired customer lists and certain other finite-lived intangible assets over their estimated useful lives on the accelerated method of sum of the years digits and its royalty agreement over its estimated useful life on the straight-line method. We review such intangible assets at least annually as of December 31 to assess whether any potential impairment exists and whether factors exist that would necessitate a change in useful life and a different amortization period. g) 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. h) 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. On May 1, 2020, Frontier completed its sale of its operations and associated assets in Washington, Oregon, Idaho, and Montana (Northwest Operations). See note 18 for further details. As of March 31, 2020 and December 31, 2019, we have reclassified assets and liabilities of our Northwest Operations as held for sale on our consolidated balance sheets, and t he amounts and information in the footnotes as they are presented do not include assets and liabilities that have been reclassified. Refer to Note 7. |
Recent Accounting Literature
Recent Accounting Literature | 3 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Literature [Abstract] | |
Recent Accounting Literature | (2) Recent Accounting Literature : Recently Adopted Accounting Pronouncements 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. The standard’s new disclosures are not applicable for our interim periods and will be included in Frontier’s 10-K disclosures for our Level 3 assets. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. Frontier adopted this standard effective for January 1, 2020, with no impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Financial Instrument Credit Losses In June 2016, The FASB issued ASU 2016-13, “Financial Instruments – Credit Losses”. This standard, along with its amendments, update 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. For the Company, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. Frontier is currently still evaluating the impact of adopting this standard on our consolidated financial statements. 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, ($ in millions) 2020 2019 Data and Internet services $ 932 $ 967 Voice services 572 650 Video services 222 268 Other 117 124 Revenue from contracts with customers (1) 1,843 2,009 Subsidy revenue 90 92 Total revenue $ 1,933 $ 2,101 For the three months ended March 31, ($ in millions) 2020 2019 Consumer $ 971 $ 1,077 Commercial 872 932 Revenue from contracts with customers (1) 1,843 2,009 Subsidy revenue 90 92 Total revenue $ 1,933 $ 2,101 (1) Amount includes approximately $ 17 million and $ 18 million, of lease revenue for the three months ended March 31, 2020 and 2019, respectively. The following is a summary of the changes in the contract assets and contract liabilities for the three months ended March 31, 2020 and 2019: Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2019 $ 37 $ 8 $ 41 $ 21 Revenue recognized included in opening contract balance ( 9 ) - ( 21 ) ( 4 ) Cash received, excluding amounts recognized as revenue - - 25 5 Credits granted, excluding amounts recognized as revenue 1 - - - Reclassified between Current and Non-Current - - 1 ( 1 ) Balance at March 31, 2020 $ 29 $ 8 $ 46 $ 21 Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2018 $ 44 $ 25 $ 49 $ 22 Revenue recognized included in opening contract balance ( 10 ) ( 4 ) ( 20 ) ( 5 ) Cash received, excluding amounts recognized as revenue - - 18 3 Credits granted, excluding amounts recognized as revenue 11 1 - - Balance at March 31, 2019 $ 45 $ 22 $ 47 $ 20 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 2020 (remaining nine months) $ 1,096 2021 990 2022 456 2023 193 2024 103 Thereafter 626 Total $ 3,464 (1) (1) Future performance obligations include $248 million related to our Northwest Operations . Refer to Note 7. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | (4) Accounts Receivable : The components of accounts receivable, net are as follows : ($ in millions) March 31, 2020 December 31, 2019 Retail and wholesale $ 625 $ 678 Other 71 71 Less: Allowance for doubtful accounts ( 100 ) ( 120 ) Accounts receivable, net $ 596 $ 629 We maintain an allowance for doubtful accounts based on our estimate of our ability to collect accounts receivable. The reduction in our reserves for doubtful accounts was driven by settlements reached with our wholesale customers exceeding new reserves during the period. Bad debt expense (credits), which is recorded as a reduction to revenue, is as follows : For the three months ended March 31, ($ in millions) 2020 2019 Bad debt expense $ 14 $ 14 |
Property, Plant And Equipment
Property, Plant And Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 5) Property, Plant and Equipment : Property, plant and equipment, net is as follows : ($ in millions) March 31, 2020 December 31, 2019 Property, plant and equipment $ 26,788 $ 26,552 Less: Accumulated depreciation ( 13,898 ) ( 13,589 ) Property, plant and equipment, net $ 12,890 (1) $ 12,963 (1) Amounts exclude $ 1,075 million and $ 1,049 million reclassified as Held for Sale as of March 31, 2020 and December 31, 2019, respectively. Refer to Note 7. In connection with the adoption of ASU No. 2016 – 02, “Leases (Topic 842)” , the $ 15 million ($ 11 million net of tax) of unamortized deferred gains that had resulted from certain sale leaseback transactions were recognized directly to opening accumulated deficit as of 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 sale of $ 75 million which was recognized against “Accumulated Depreciation” in our consolidated balance sheet during the three months ended March 31, 2019. Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended March 31, ($ in millions) 2020 2019 Depreciation expense $ 316 $ 353 We revised the estimated remaining useful lives for certain plant assets as of October 1, 2019, as a result of an annual independent study of the estimated remaining useful lives of our plant assets, with an insignificant impact to depreciation expense. |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Other Intangibles [Abstract] | |
Goodwill And Other Intangibles | (6) Goodwill and Other Intangibles : All Goodwill was fully impaired as of March 31, 2020 and December 31, 2019, other than goodwill reclassified to Assets held for sale. Accumulated goodwill impairment charges were $ 9,154 million as of March 31, 2020 and December 31, 2019. The components of other intangibles are as follows : March 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 4,332 $ ( 3,547 ) $ 785 $ 4,332 $ ( 3,452 ) $ 880 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 58 ) 14 72 ( 54 ) 18 Total other intangibles $ 4,526 $ ( 3,605 ) $ 921 $ 4,526 $ ( 3,506 ) $ 1,020 Amortization expense was as follows : For the three months ended March 31, ($ in millions) 2020 2019 Amortization expense $ 99 $ 131 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 . Our Trade name is an indefinite-lived intangible asset that is not subject to amortization. |
Planned Divestiture Of Northwes
Planned Divestiture Of Northwest Operations | 3 Months Ended |
Mar. 31, 2020 | |
Planned Divestiture Of Northwest Operations [Abstract] | |
Planned Divestiture Of Northwest Operations | (7) Planned divestiture of Northwest Operations: On May 1, 2020, Frontier completed the sale of its Northwest Operations . See note 18 for further details. This transaction does not represent a strategic shift for Frontier; therefore, it does not meet the criteria to be classified as a discontinued operation. 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 GAAP. The Company also separately classified the related assets and liabilities of the business as “held-for-sale” as of this date and in its March 31, 2020 consolidated balance sheet. As a result of its ongoing evaluation of the recoverability of the carrying value of the assets and liabilities held for sale as of March 31, 2020 relative to the agreed upon sales price, adjusted for costs to sell, Frontier recorded an estimated loss on disposal of $ 24 million during the three months ended March 31, 2020 in its consolidated statement of operations and a corresponding adjustment to the 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 March 31, 2020 are as follows: ($ in millions) March 31, 2020 ASSETS Accounts receivable, less allowances of $ 12 $ 49 Prepaid expenses 1 Contract acquisition costs 8 Other current assets 2 Property, plant and equipment, net 1,075 Goodwill (1) 658 Other intangibles, net 30 Other assets 17 Valuation allowance on assets held for sale ( 434 ) Total assets held for sale $ 1,406 LIABILITIES Accounts payable $ 13 Advanced billings 18 Accrued other taxes 9 Other current liabilities 14 Pension and other postretirement benefits (2) 29 Other liabilities 32 Total liabilities held for sale $ 115 (1) The assignment of goodwill was based on the relative fair value of the disposal group and the portion of the remaining reporting unit upon designation as “held for sale” as of May 28, 2019. (2) Excludes pension liability of $ 163 million, which will be fully funded upon closing. Approximately $ 98 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019. 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. March 31, 2020 December 31, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 17,511 $ 10,117 $ 17,516 $ 12,026 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (9) Long-Term Debt: The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the JPM Credit Facilities, the First Lien Notes, the Second Lien Notes, our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. As such we have reclassified all debt obligations to Long term debt due within one year on our consolidated balance sheet as of March 31, 2020. While this reclassification includes all of our debt, the Restructuring Support Agreement contemplates agreed-upon terms for a pre-arranged financial restructuring Plan that leaves unimpaired all holders of secured debt and subsidiary debt. Among other things, the Restructuring Support Agreement provides that holders of our secured debt will be entitled to receive cash interest payments and to have the principal amount of their indebtedness repaid or reinstated upon emergence and that holders of secured and unsecured debt of our subsidiaries will be entitled to receive cash interest payments and to have the principal amount of their indebtedness reinstated upon emergence. Pursuant to Section 362 of the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed most actions against or on behalf of the Company Parties, including actions to collect indebtedness incurred prior to the Petition Date or to exercise control over the Company Parties’ property. For information about subsequent events related to the Restructuring Support Agreement, the Chapter 11 Cases and the Plan, refer to Note 18. The activity in our long-term debt from January 1, 2020 through March 31, 2020 is summarized as follows: For the three months ended March 31, 2020 Principal Interest Rate at January 1, Payments March 31, March 31, ($ in millions) 2020 and Retirements New Borrowings 2020 2020* Secured debt issued by Frontier $ 5,711 $ ( 5 ) $ - $ 5,706 7.17 % Unsecured debt issued by Frontier 10,949 - - 10,949 9.62 % Secured debt issued by subsidiaries 106 - - 106 8.37 % Unsecured debt issued by subsidiaries 750 - - 750 6.90 % Total debt $ 17,516 $ ( 5 ) $ - $ 17,511 8.69 % Less: Debt Issuance Costs ( 168 ) ( 160 ) Less: Debt Discount ( 46 ) ( 45 ) Less: Current Portion ( 994 ) ( 17,306 ) Total Long-term debt $ 16,308 $ - * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at March 31, 2020 represent a weighted average of multiple issuances. Additional information regarding our secured and unsecured long-term debt as of March 31, 2020 (prior to the filing of the Chapter 11 Cases) and December 31, is as follows: March 31, 2020 December 31, 2019 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Revolver due 2/27/2024 (1) $ 749 4.680 % (Variable) $ 749 4.760 % (Variable) Term loan due 6/15/2024 (2) 1,694 5.350 % (Variable) 1,699 5.550 % (Variable) First lien notes due 4/1/2027 1,650 8.000 % 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 % Total secured debt issued by Frontier 5,706 5,711 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 10,949 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 % 6 6.154 % Total secured debt issued by subsidiaries 106 106 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 $ 17,511 8.464 % (3) $ 17,516 8.486 % (3) (1) Represents borrowings under the JPM Credit Agreement Revolver, as defined below. (2) Represents borrowings under the JPM Credit Agreement Term Loan B, as defined below. (3) 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 March 31, 2020, 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 March 31, 2020 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 March 31, 2020, Frontier had borrowings of $ 749 million outstanding under the Revolver (with letters of credit issued under the Revolver totaling an additional $ 101 million). On March 15, 2019, Frontier amended the JPM Credit Agreement to, among other things, extend the maturity date of the Revolver from February 27, 2022 to February 27, 2024 (subject to springing maturity to any tranche of our existing debt with an aggregate outstanding principal amount in excess of $ 500 million), increase the interest rate applicable to loans under the Revolver by 0.25 % and make certain modifications to the debt and restricted payment covenants. On April 26, 2019, Frontier further amended the JPM Credit Agreement to, among other things, extend the maturity date of the outstanding small tranche of loans under the Revolver that had not been party to the March 2019 amendments. Frontier also had a $ 1,625 million senior secured Term Loan A facility (the Term Loan A) under the JPM Credit Agreement which was fully repaid on March 15, 2019, as described below under “New Debt Issuances and Debt Reductions.” Repaid CoBank Credit Facilities Frontier had a $ 315 million senior term loan facility drawn in October 2016 (the 2016 CoBank Credit Agreement) with CoBank, ACB, as administrative agent, lead arranger and a lender, and the other lenders which was repaid in full on March 15, 2019. Frontier had a separate $ 350 million senior term loan facility drawn in 2014 (the 2014 CoBank Credit Agreement) with CoBank which was repaid in full on July 3, 2018. Details of both transactions are 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 8.000 % 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 the JPM Credit Agreement, including the Term Loan B and Revolver. The guarantees are unsecured obligations of the guarantors equal in right of payment to all of the guarantor’s obligations under the JPM Credit Agreement 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 the JPM Credit Agreement 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. 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. For the three months ended March 31, 2020, Frontier retired $ 5 million principal amount of senior secured debt. For the three months ended March 31, 2019 , Frontier retired $ 348 million principal amount of 7.125 % senior unsecured notes due 2019 . During 2019, Frontier recorded a gain 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. |
Restructuring Costs And Other C
Restructuring Costs And Other Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Costs And Other Charges [Abstract] | |
Restructuring Costs And Other Charges | (10) Restructuring Costs and Other Charges: As of March 31, 2020, restructuring related liabilities of $ 14 million pertaining to employee separation charges and accrued costs related to transformation initiatives are included in “Other current liabilities” in our consolidated balance sheet. Restructuring Costs and Other Charges During the first three months of 2020, we incurred $ 48 million in expenses related to changes in the operation of our business, consisting of $ 8 million directly associated with transformation initiatives, $ 2 million of severance and employee costs resulting from workforce reductions, and $ 38 million of consulting and advisory costs related to our balance sheet restructuring activities, which are included in “Restructuring costs and other charges” in our consolidated statement of operations for the three months ended March 31, 2020. During the first three months 2019, we incurred $ 28 million in expenses related to changes in the operation of our business, consisting of $ 13 million directly associated with transformation initiatives and $ 15 million of severance and employee costs resulting from workforce reductions, which are included in “Restructuring costs and other charges” in our consolidated statement of operations for the three months ended March 31, 2019. The following is a summary of the changes in the liabilities established for restructuring and other related programs for the three months ended March 31, 2020: ($ in millions) Balance at January 1, 2020 $ 15 Severance expense 2 Transformation costs 8 Other costs 38 Cash payments during the period ( 49 ) Balance at March 31, 2020 $ 14 |
Investment And Other Income (Lo
Investment And Other Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Investment And Other Income (Loss) [Abstract] | |
Investment And Other Income (Loss) | (11) Investment and Other Income (Loss): The following is a summary of the components of Investment and Other Income (loss) for the three months ended March 31, 2020 and 2019: For the three months ended March 31, ( $ in millions ) 2020 2019 Interest and dividend income $ 2 $ 3 Pension and OPEB benefit (costs) 1 ( 11 ) All other, net 2 ( 1 ) Total investment and other income (loss), net $ 5 $ ( 9 ) Pension and OPEB benefit (costs) consist of interest costs, expected return on plan assets, amortization of prior service costs (credit) and amortization of unrecognized (gain) loss. The driver of the change for the three months ended March 31, 2020 as compared to the prior year period, primarily relates to an increase in the expected return on plan assets combined with increased amortization of prior service credits. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | (12) Income Taxes : The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rate: For the three months ended March 31, 2020 2019 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit ( 1.2 ) ( 3.2 ) Tax reserve adjustment ( 2.5 ) ( 0.9 ) Restructuring cost ( 3.4 ) - Changes in certain deferred tax balances 0.6 ( 38.6 ) Loss on disposal of Northwest Operations ( 2.4 ) - Shared-based payments ( 0.7 ) ( 4.4 ) Federal research and development tax credit 0.6 1.7 All other, net ( 0.9 ) ( 1.6 ) Effective tax rate 11.1 % ( 26.0 ) % CARES Act The CARES Act has a number of beneficial tax provisions (e.g., deferral of the employer portion of social security taxes for the remainder of 2020, the ability to claim additional interest deductions, net operating loss carrybacks, and removal of the 80 % usage limitation for post-2017 NOLs for tax years 2018, 2019 and 2020). Employers can defer payment of the employer’s share of the Social Security tax that they otherwise are responsible for paying on wages. The deferral applies to affected taxes normally required to be paid from March 27, 2020, through December 31, 2020. The deferred tax must be paid over the following two years , with half to be paid by December 31, 2021, and the other half to be paid by December 31, 2022. The business interest deduction limit under Code Sec. 163(j) is increased to 50 percent of the taxpayer’s adjusted taxable income (ATI) for the 2019 and 2020 tax years. A taxpayer may also elect for the 2020 year only to use 2019 ATI in calculating the limitation. A taxpayer may elect not to have the increased limitation apply in 2019 or 2020 Net operating losses (NOLs) arising in tax years beginning in 2018, 2019, and 2020 now have a five-year carryback period and an unlimited carryforward period. The provision limiting an NOL deduction attributable to NOLs arising in tax years beginning after 2017 to 80 percent of taxable income does not apply during these years. As of March 31, 2020 and December 31, 2019, amounts pertaining to expected income tax refunds of $ 13 million and $ 1 million are included in “Income taxes and other current assets” in the consolidated balance sheets, respectively. Frontier considered positive and negative evidence in regard to evaluating certain deferred tax assets during the first quarter of 2020, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $ 54 million ($ 43 million net of federal benefit) has been recorded for the three months ended March 31, 2020, 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 March 31, 2020, Frontier had approximately $ 2.2 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 | 3 Months Ended |
Mar. 31, 2020 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | (13) Net Loss Per Share : The reconciliation of the net loss per share calculation is as follows : For the three months ended March 31, ( $ in millions and shares in thousands, except per share amounts ) 2020 2019 Net loss used for basic and diluted loss per share: Total basic net loss attributable to Frontier common shareholders $ ( 186 ) $ ( 87 ) Effect of loss related to dilutive stock units - - Total diluted net loss attributable to Frontier common shareholders $ ( 186 ) $ ( 87 ) Basic loss per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 105,060 105,426 Less: Weighted average unvested restricted stock awards ( 697 ) ( 1,541 ) Total weighted average shares outstanding - basic 104,363 103,885 Basic net loss per share attributable to Frontier common shareholders $ ( 1.78 ) $ ( 0.84 ) Diluted loss per share: Total weighted average shares outstanding - basic 104,363 103,885 Effect of dilutive stock units - - Total weighted average shares outstanding - diluted 104,363 103,885 Diluted net loss per share attributable to Frontier common shareholders $ ( 1.78 ) $ ( 0.84 ) In calculating diluted net loss per common share for the three months ended March 31, 2020 and 2019, the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive. Stock Options For the three months ended March 31, 2020 and 2019, 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 March 31, 2020 and 2019, we had 339,544 and 485,687 stock units, respectively, issued under the Non-Employee Directors’ Deferred Fee Equity Plan (Deferred Fee Plan), the Non-Employee Directors’ Equity Incentive Plan (Directors’ Equity Plan), the 2013 Equity Incentive Plan and the 2017 Equity Incentive Plan. These securities have not been included in the diluted EPS calculation for the three months ended March 31, 2020 and 2019 because their inclusion would have an antidilutive effect. Compensation costs associated with the issuance of stock units were $ 0 million for each of the three months ended March 31, 2020 and 2019, respectively. |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2020 | |
Stock Plans [Abstract] | |
Stock Plans | (14) Stock Plans : At March 31, 2020, 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 March 31, 2020, there were approximately 5,667,000 shares authorized for grant and approximately 3,437,000 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, 2020, we had 96,000 outstanding performance shares under the Frontier Long Term Incentive Plan (the LTIP). During the three months ended March 31, 2020, all of the remaining performance shares under the LTIP were cancelled. For purposes of determining compensation expense, the fair value of each performance share is measured at the end of each reporting period and, therefore, will fluctuate based on the price of Frontier common stock as well as performance relative to the targets. For the three months ended March 31, 2020 and 2019, we recognized net compensation expense, reflected in “Selling, general and administrative expenses,” of $ 0 . Restricted Stock The following summary presents information regarding unvested restricted stock as of March 31, 2020 and changes during the three months then ended with regard to restricted stock granted under the 2013 EIP and the 2017 EIP : Weighted Average Number of Grant Date Aggregate Shares Fair Value Fair Value (in thousands) (per share) (in millions) Balance at January 1, 2020 900 $ 10.57 $ 1 Restricted stock granted - $ - $ - Restricted stock vested ( 387 ) $ 15.04 $ - Restricted stock forfeited ( 14 ) $ 11.57 Balance at March 31, 2020 499 $ 7.07 $ - 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 March 31, 2020 was $ 3 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 $ 1 million and $ 3 million for the three month periods ended March 31, 2020 and 2019, respectively, has been recorded in connection with these grants . |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (15) 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 March 31, 2020 and 2019, and changes for the three month periods then ended, are as follows : ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2020 (1) $ ( 684 ) $ 34 $ ( 650 ) Other comprehensive income (loss) before reclassifications 1 - 1 Amounts reclassified from accumulated other comprehensive loss to net loss 90 ( 5 ) 85 Net current-period other comprehensive income (loss) 91 ( 5 ) 86 Balance at March 31, 2020 (1) $ ( 593 ) $ 29 $ ( 564 ) ($ 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 10 ( 2 ) 8 Net current-period other comprehensive income (loss) 10 ( 2 ) 8 Impact of adoption of ASU 2018-02 ( 83 ) 4 ( 79 ) Balance at March 31, 2019 (1) $ ( 562 ) $ 28 $ ( 534 ) (1) Pension and OPEB amounts are net of tax of $ 204 million and $ 250 million as of January 1, 2020 and 2019, respectively and $ 176 million and $ 169 million as of March 31, 2020 and 2019, respectively. The significant items reclassified from each component of accumulated other comprehensive loss for the three month periods ended March 31, 2020 and 2019 are as follows: Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended the Statement Where Details about Accumulated Other March 31, Net Loss Comprehensive Loss Components 2020 2019 is Presented Amortization of Pension Cost Items (2) Actuarial losses $ ( 17 ) $ ( 14 ) Pension settlement costs ( 103 ) - ( 120 ) ( 14 ) Loss before income taxes Tax impact 30 4 Income tax benefit $ ( 90 ) $ ( 10 ) Net loss Amortization of OPEB Cost Items (2) Prior-service costs $ 8 $ 1 Actuarial gains (losses) ( 2 ) 2 6 3 Loss before income taxes Tax impact ( 1 ) ( 1 ) Income tax benefit $ 5 $ 2 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 | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Plans [Abstract] | |
Retirement Plans | (16) Retirement Plans : The following tables provide the components of total pension and postretirement benefit cost : Pension Benefits For the three months ended March 31, ( $ in millions ) 2020 2019 Components of total pension benefit cost Service cost $ 25 $ 21 Interest cost on projected benefit obligation 30 33 Expected return on plan assets ( 50 ) ( 43 ) Amortization of unrecognized loss 17 14 Net periodic pension benefit cost 22 25 Pension settlement costs 103 - Total pension benefit cost $ 125 $ 25 Postretirement Benefits For the three months ended March 31, ( $ in millions ) 2020 2019 Components of net periodic postretirement benefit cost Service cost $ 5 $ 5 Interest cost on projected benefit obligation 8 10 Amortization of prior service cost (credit) ( 8 ) ( 1 ) Amortization of unrecognized (gain) loss 2 ( 2 ) Net periodic postretirement benefit cost $ 7 $ 12 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. The pension plan contains provisions that provide certain employees with the option of receiving a lump sum payment upon retirement. Frontier’s accounting policy is to record these payments as a settlement only if, in the aggregate, they exceed the sum of the annual service and interest costs for the Pension Plan’s net periodic pension benefit cost. During the three months ended March 31, 2020, lump sum pension settlement payments to terminated or retired individuals amounted to $ 310 million, which exceeded the settlement threshold of $ 211 million, and as a result, Frontier recognized non-cash settlement charges totaling $ 103 million during the first quarter of 2020. The non-cash charge accelerated the recognition of a portion of the previously unrecognized actuarial losses in the Pension Plan. These non-cash charges increased our recorded net loss and accumulated deficit, with a corresponding adjustment offset to accumulated other comprehensive loss in stockholders’ equity. During the first three months of 2020 and 2019, we capitalized $ 7 million and $ 6 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 decreased from $ 2,730 million at December 31, 2019 to $ 2,166 million at March 31, 2020, a decrease of $ 564 million, or 21 %. This decrease was a result of benefit payments of $ 327 million and investment losses (net of investment management and administrative fees) of $ 274 million, partially offset by contributions of $ 37 million. Required pension plan contributions for the full year 2020 are estimated to be $ 190 million, of which $ 37 million was contributed to the Plan during the first three months of 2020. Certain provisions of the CARES Act permit employers to postpone making pension contributions due in 2020 until January 1, 2021. Frontier intends to postpone the remaining 2020 contributions of approximately $ 153 million, in the aggregate, until on or prior to January 1, 2021 as permitted by the CARES Act. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (17) 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 2015, Frontier accepted the FCC’s CAF Phase II offer in 29 states, which provides $ 332 million in annual support through 2020 (since extended to 2021 under the Rural Digital Opportunity Fund (RDOF) Order) in return for the Company’s commitment to make broadband available to approximately 774,000 locations within Frontier’s footprint. This amount includes approximately $ 19 million in the four states of the Northwest Operations. The CAF Phase II program is intended to provide long-term support for carriers for establishing and providing broadband service with at least 10 Mbps downstream/1 Mbps upstream speeds in high-cost unserved or underserved areas. CAF Phase II support is a successor to the approximately $ 198 million in annual USF frozen high-cost support that Frontier used to receive prior to CAF II. In August 2019, the FCC adopted a notice of proposed rulemaking to establish the 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 2022. 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 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. On March 24, 2020, the court denied plaintiffs’ motion for leave to amend, finding that they had not pled a viable claim. Plaintiffs may seek an appeal of the order dismissing the case. 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. In addition, we are party to various legal proceedings (including individual actions, class and putative class actions, and 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. Litigation is 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 have accrued an amount for potential penalties that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual. We accrue an expense for pending litigation when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of our existing accruals for pending matters, after considering insurance coverage, is material. We monitor our pending litigation for the purpose of adjusting our accruals and revising our disclosures accordingly, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. We will vigorously defend our interests in pending litigation, and as of this date, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our consolidated financial position, results of operations, or our cash flows. We conduct certain of our operations in leased premises and also lease certain equipment and other assets pursuant to operating leases. The lease arrangements have terms ranging from 1 to 99 years and several contain rent escalation clauses providing for increases in monthly rent at specific intervals. When rent escalation clauses exist, we record annual rental expense based on the total expected rent payments on a straight-line basis over the lease term. Certain leases also have renewal options. Renewal options that are reasonably assured are included in determining the lease term. We are party to contracts with several unrelated long-distance carriers. The contracts provide fees based on traffic they carry for us subject to minimum monthly fees. Effect of Automatic Stay Subject to certain exceptions under the Bankruptcy Code, the filing of the Company Parties’ Chapter 11 Cases automatically stayed the continuation of most legal proceedings or the filing of other actions against or on behalf of the Company Parties or their property to recover on, collect or secure a claim arising prior to the Petition Date or to exercise control over property of the Company Parties’ bankruptcy estates, unless and until the Bankruptcy Court modifies or lifts the automatic stay as to any such claim. Notwithstanding the general application of the automatic stay described above, governmental authorities may determine to continue actions brought under their police and regulatory powers. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | ( 18) Subsequent Events : Restructuring Support Agreement On April 14, 2020, the Company Parties entered into the Restructuring Support Agreement with the Consenting Noteholders. The Restructuring Support Agreement contemplates agreed-upon terms for a pre-arranged financial restructuring Plan that leaves unimpaired all general unsecured creditors and holders of secured debt. Under the Restructuring Support Agreement, the Consenting Noteholders have agreed, subject to certain terms and conditions, to support the Restructuring of the existing debt of, existing equity interests in, and certain other obligations of the Company Parties, pursuant to the Plan to be filed in the Chapter 11 Cases. The Plan will be based on the restructuring term sheet attached to and incorporated into the Restructuring Support Agreement (the Term Sheet) (such transactions described in, and in accordance with the Restructuring Agreement and the Term Sheet, the Restructuring Transactions), which, among other things, contemplates: the Company Parties’ obtaining confirmation of the Plan, which shall be on terms consistent with the Restructuring Support Agreement and the Term Sheet, no later than 120 calendar days after the Petition Date (as defined herein); the Company Parties using commercially reasonable efforts to obtain commitments on the best available terms for a senior secured superpriority debtor-in-possession financing facility (the DIP Facility), with an option for conversion into an Exit Facility (as defined below) on the Plan effective date (Plan Effective Date), on terms and conditions (including as to amount) reasonably acceptable to the Company Parties and reasonably acceptable to the Consenting Noteholders, as of the relevant date, holding greater than 50.1 % of the aggregate outstanding principal amount of the Frontier Communications Corporation’s senior unsecured notes and debentures (the Senior Notes) that are subject to the Restructuring Support Agreement (the Required Consenting Noteholders); one or more third-party debt facilities (Exit Facilities), to be entered into on the Plan Effective Date, in an amount reasonably sufficient to facilitate Plan distributions and ensure incremental liquidity on the Plan Effective Date, and otherwise be on terms and conditions (including as to amount) reasonably acceptable to the Company Parties and reasonably acceptable to the Required Consenting Noteholders; to the extent not converted into an Exit Facility, full satisfaction in cash on the Plan Effective Date of all DIP Facility claims; issuance by one or more of the Company Parties of takeback debt (the Takeback Debt), in a principal amount of $ 750 million, subject to downward adjustment and certain other terms set forth in the Term Sheet, including, but not limited to: o an interest rate (a) no more than 250 basis points higher than the interest rate of the next more junior secured debt facility to be entered into on the Plan Effective Date if the Takeback Debt is secured on a third lien basis or (b) no more than 350 basis points higher than the interest rate of the most junior secured debt facility to be entered into on the Plan Effective Date if the Takeback Debt is unsecured; o a maturity no less than one year outside of the longest-dated debt facility to be entered into on the Plan Effective Date, subject to an outside maturity date of eight years from the Plan Effective Date; o (i) to the extent the Second Lien Notes are reinstated under the Plan, providing the Takeback Debt will be third lien debt, or (ii) to the extent the Second Lien Notes are paid in full in cash during the pendency of the Chapter 11 Cases or under the Plan, providing the Company Parties and the Required Consenting Noteholders will agree on whether the Takeback Debt will be secured or unsecured, subject to certain conditions; and o all other terms including, without limitation, covenants and governance, shall be reasonably acceptable to the Company Parties and the Required Consenting Noteholders; provided that such terms shall not be more restrictive than those in the indenture for the Second Lien Notes. subject to acceptance of the Plan by the holders of the Senior Notes, a cash payment (the Incremental Payments) on the Plan Effective Date to each holder of the Senior Notes (to the extent of the available amount of unrestricted balance sheet cash in excess of $ 150 million on the Plan Effective Date as projected 30 days prior to the anticipated Plan Effective Date, subject to adjustments set forth in the Term Sheet (Surplus Cash)); cash interest payments for the Revolver and, to the extent not already satisfied in full during the Chapter 11 Cases from the proceeds of the DIP Facility, satisfaction in full on the Plan Effective Date of all Revolver claims; cash interest payments for (i) the Term Loan B maturing on June 15, 2024 , and (ii) the $ 1,650 million aggregate principal amount of the First Lien Notes, as applicable, at non-default rate during the Chapter 11 Cases, which shall not include any make-whole payments, until repayment or reinstatement of such indebtedness; upon mutual agreement among the Company Parties and the Required Consenting Noteholders, for the $ 1,600 million aggregate principal amount of the Second Lien Notes (together with the First Lien Notes, the Secured Notes), (i) cash interest payment at non-default rate during the Chapter 11 Cases, which shall not include any make-whole payments, until repayment or reinstatement of the Second Lien Notes or (ii) payment of accrued non-default rate interest on the Plan Effective Date, which shall not include any make-whole payments, and no cash interest payment during the Chapter 11 Cases; to the extent not already satisfied in full during the Chapter 11 Cases from the proceeds of the DIP Facility, (i) satisfaction in full of all Term Loan B claims and all Secured Notes claims on the Plan Effective Date, or (ii) solely in the event the Company Parties cannot procure financing on terms acceptable to the Company Parties and the Required Consenting Noteholders to repay in full the Term Loan B or the Secured Notes, as applicable, reinstatement of all Term Loan B claims and all Secured Notes claims, as applicable, pursuant to section 1124 of the Bankruptcy Code on the Plan Effective Date; cash interest payments at non-default rate during the Chapter 11 Cases for the secured and unsecured notes of the Company’s subsidiaries and, on or as soon as reasonably practicable following the Plan Effective Date, reinstatement of such notes pursuant to section 1124 of the Bankruptcy Code; cash payment of all general unsecured claims (other than Parent Litigation Claims (as defined below)), if applicable, that are not Senior Notes claims or subsidiary unsecured notes claims, reinstatement of such claims pursuant to section 1124 of the Bankruptcy Code or other such treatment rendering such claims unimpaired, in each case, as reasonably acceptable to the Company Parties and the Required Consenting Noteholders; litigation-related claims against the Company that would be subject to the automatic stay (except those subject to the police and regulatory exception) (the Parent Litigation Claims) will be unimpaired, provided that the Parent Litigation Claims will be allowed in an amount that does not exceed existing insurance coverage plus $ 25 million; cash payment in full of all administrative expense claims, priority tax claims, other priority claims, and other secured claims or other such treatment rendering such claims unimpaired, including reinstatement pursuant to section 1124 of the Bankruptcy Code or delivery of the collateral securing any such secured claim and payment of any interest required under section 506(b) of the Bankruptcy Code; a motion, promptly after the commencement of the Chapter 11 Cases, filed by the Company Parties to assume the Purchase Agreement (the Purchase Agreement), dated as of May 28, 2019, among the Company, Frontier Communications ILEC Holdings LLC, and Northwest Fiber, LLC, as amended, restated, amended and restated, or otherwise modified from time to time, and close the sale of the Northwest Operations subject to certain terms and conditions in the Purchase Agreement, as soon as reasonably practicable; on or as soon as reasonably practicable following the Plan Effective Date, receipt by the holders of the Senior Notes, in full satisfaction of their claims, their pro rata share of (a) 100% of the common equity (the New Common Stock) of the Company or an entity formed to indirectly acquire substantially all of the assets and/or stock of the Company as may be contemplated by the Restructuring (the Reorganized Company), subject to dilution by the Management Incentive Plan (as defined below), (b) the Takeback Debt and (c) any Surplus Cash remaining after payments of the Incremental Payments; on the Plan Effective Date, reservation of a pool (the Management Incentive Plan Pool) of 6% (on a fully diluted basis) of the New Common Stock for a post-emergence management incentive plan (the Management Incentive Plan) for management employees of the Reorganized Company, which will contain terms and conditions as determined at the discretion of the board of directors of the Reorganized Company after the Plan Effective Date; provided that up to 50% of the Management Incentive Plan Pool may be allocated prior to the Plan Effective Date as emergence grants (Emergence Awards) to individuals selected to service in key senior management positions after the Plan Effective Date; provided, further, that the Emergence Awards will have terms and conditions that are acceptable to the Company Parties and the Required Consenting Noteholders; no distribution for existing equity interests; and in the event the Required Consenting Noteholders and the Company Parties determine that the New Common Stock should be listed on a recognized U.S. stock exchange, commercially reasonable efforts by the Reorganized Company to have the New Common Stock listed on a recognized U.S. stock exchange as promptly as reasonably practicable on or after the Plan Effective Date, and prior to any such listing, commercially reasonable efforts to qualify its shares for trading in the pink sheets. In accordance with the Restructuring Support Agreement, the Consenting Noteholders agreed, among other things, to: (i) support the Restructuring Transactions as contemplated by, and within the timeframes outlined in, the Restructuring Support Agreement and the definitive documents governing the Restructuring Transactions; (ii) not take any action, directly or indirectly, that is reasonably likely to interfere with acceptance, implementation, or consummation of the Restructuring Transactions; (iii) vote each of its Senior Notes Claims to accept the Plan; and (iv) not transfer Senior Notes Claims held by each Consenting Noteholders except with respect to limited and customary exceptions, including requiring any transferee to either already be bound or become bound by the terms of the Restructuring Support Agreement. In accordance with the Restructuring Support Agreement, the Company Parties agreed, among other things, to: (i) support and take all steps reasonably necessary and desirable to consummate the Restructuring Transactions in accordance with the Restructuring Support Agreement; (ii) support and take all steps reasonably necessary and desirable to obtain entry of (a) the final orders of the Bankruptcy Court authorizing the relevant Company Parties’ entry into the DIP Facility documents (the DIP Orders), (b) the order of the Bankruptcy Court approving the Plan disclosure statement pursuant to section 1125 of the Bankruptcy Code and (c) the Bankruptcy Court’s order confirming the Plan; (iii) use commercially reasonable efforts to obtain any and all required governmental, regulatory and/or third-party approvals for the Restructuring Transactions; (iv) act in good faith and use commercially reasonable efforts to execute and deliver certain required documents and agreements to effectuate and consummate the Restructuring Transactions as contemplated by the Restructuring Support Agreement; (v) operate their business in the ordinary course of business in a manner consistent with the Restructuring Support Agreement and past practice and use commercially reasonable efforts to preserve their business; and (vi) not, directly or indirectly, object to, delay, impede, or take any other action to interfere with acceptance, implementation, or consummation of the Restructuring Transactions. The Restructuring Support Agreement may be terminated upon the occurrence of certain events, including the failure to meet specified milestones related to the solicitation of votes to approve the Plan, commencement of the Chapter 11 Cases, confirmation of the Plan, consummation of the Plan, and the entry of orders relating to the DIP Facility. Chapter 11 Cases To implement the Plan, on the Petition Date, the Company Parties filed the Chapter 11 Cases under the Bankruptcy Code in the Bankruptcy Court. Each Company Party will continue to operate its business as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The Chapter 11 Cases are being jointly administered under the caption In re Frontier Communications Corporation., et al ., Case No. 20-22476 (RDD). Documents filed on the docket of and other information related to the Chapter 11 Cases are available at https://cases.primeclerk.com/ftr. Documents and other information available on such website are not part of this document and shall not be deemed incorporated by reference in this document. To ensure the Company Parties’ ability to continue operating in the ordinary course of business and minimize the effect of the Restructuring on the Company Parties’ customers and employees, the Company Parties filed with the Bankruptcy Court motions seeking a variety of “first-day” relief, including authority to pay employee wages and benefits, and pay vendors and suppliers for all goods and services, each of which was approved on an interim basis by the Bankruptcy Court. Effect of Chapter 11 Cases & Automatic Stay on Pre-Petition Debt Obligations The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the JPM Credit Facilities, the First Lien Notes, the Second Lien Notes, our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. However, pursuant to Section 362 of the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed most actions against or on behalf of the Company Parties, including actions to collect indebtedness incurred prior to the Petition Date or to exercise control over the Company Parties’ property. DIP Facility On April 14, 2020 and prior to the commencement of the Chapter 11 Cases, the Company and certain of its subsidiaries (the DIP Loan Parties) entered into a commitment letter (the Commitment Letter) with Goldman Sachs Bank USA (GS Bank), Deutsche Bank AG New York Branch (DBNY), Deutsche Bank Securities Inc. (DBSI and, collectively with DBNY, DB), Barclays Bank PLC (Barclays), Morgan Stanley Senior Funding, Inc. (MSSF), Credit Suisse AG, Cayman Islands Branch (CS) and Credit Suisse Loan Funding LLC (CSLF and, together with CS and their respective affiliates, Credit Suisse, and together with GS Bank, DB, Barclays and MSSF, the Commitment Parties), pursuant to which, and subject to the satisfaction of certain customary conditions, including the approval of the Bankruptcy Court, the Commitment Parties have agreed to provide the DIP Loan Parties with a senior secured superpriority debtor-in-possession revolving credit facility (the DIP Revolving Facility) in an aggregate principal amount of $ 460 million which, upon satisfaction of certain conditions, including the effectiveness of the Plan, will become a longer term senior secured exit revolving facility (the Exit Revolving Facility). The terms and conditions of the DIP Revolving Facility are set forth in the form Senior Secured Superpriority Debtor-in-Possession Credit Agreement (the Form DIP Credit Agreement) attached to the Commitment Letter. The DIP Revolving Facility includes conditions precedent, representations and warranties, affirmative and negative covenants and events of default customary for financings of this type and size, including an event of default (the Prepayment Event of Default) that is triggered if the revolving loans outstanding under the JPM Credit Agreement are not repaid in full on or prior to the earlier to occur of (i) the 60th day following the Company’s actual receipt of the net cash proceeds from the sale of the Northwest Operations, and (ii) the third business day following the first day on which the Company has received both (x) the net cash proceeds of the sale of the Northwest Operations and (y) an order of the Bankruptcy Court approving the repayment in full of the outstanding revolving loans under the JPM Credit Agreement. The occurrence of the Prepayment Event of Default would cause the termination of the commitments with respect to the Exit Revolving Facility unless otherwise agreed by each Commitment Party. The proceeds of all or a portion of the DIP Revolving Facility may be used for, among other things, general corporate purposes, including working capital and permitted acquisitions and letters of credit, administrative costs, premiums, expenses and fees of the transactions contemplated by the Chapter 11 Cases, for payment of court approved adequate protection obligations and other such purposes consistent with the DIP Revolving Facility. To the extent not converted into an Exit Revolving Facility, DIP Revolving Facility claims will be paid in cash on the Plan Effective Date. The terms and conditions of the Exit Revolving Facility are reflected in an exit facility term sheet attached as an exhibit to the Form DIP Credit Agreement (the Exit Facility Term Sheet). Upon of the satisfaction of certain conditions set forth in the Exit Facility Term Sheet, including compliance with a 1.55 :1.00 gross first lien leverage ratio test and the repayment in full of the revolving loans outstanding under the JPM Credit Agreement, the DIP Revolving Facility commitments will become Exit Revolving Facility commitments. The Company has the option to increase the size of the Exit Revolving Facility up to an amount of $ 600.0 million by obtaining commitments from one or more lenders prior to the Plan Effective Date. Notice of Delisting On April 15, 2020, the Company received a letter from the listing qualifications department staff of the Nasdaq Stock Market (Nasdaq) notifying the Company that, as a result of the Chapter 11 Cases and in accordance with Nasdaq Listing Rules 5101, 5110(b) and IM-5101-1, Nasdaq determined that Frontier common stock would be delisted from Nasdaq. We did not appeal Nasdaq's delisting determination. Accordingly, Nasdaq suspended trading of the Company's common stock on April 24, 2020, and filed a Form 25-NSE with the SEC to delist the common stock. On April 24, 2020, after our common stock was suspended by Nasdaq, it began being quoted on the OTC Bulletin Board or “pink sheets” market of the OTC Markets Group Inc. under the symbol "FTRCQ.” Northwest Operations Sale Closing On May 1, 2020, Frontier completed the sale of its Northwest Operations pursuant to the terms and conditions of the Purchase Agreement, dated as of May 28, 2019, for gross proceeds of $ 1,352 million, subject to certain closing adjustments. Net of funding certain pension and other retiree medical liabilities, funding certain escrows and other closing adjustments, we received $ 1,131 million in proceeds. The sale had been previously approved by the Bankruptcy Court on April 24, 2020. 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. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | a) Basis of Presentation and Use of Estimates : Frontier Communications Corporation and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Our interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. Certain reclassifications of amounts previously reported have been made to conform to the current presentation. All significant intercompany balances and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net loss and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. For our interim financial statements as of and for the period ended March 31, 2020, 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. |
Going Concern | b) Going Concern Our interim unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the normal course of business. In connection with the preparation of our interim unaudited consolidated financial statements, we conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raised substantial doubt as to the entity’s ability to continue as a going concern. As reflected in our consolidated financial statements, the Company had cash and cash equivalents of $ 941 million and an accumulated deficit of $ 8,759 million as of March 31, 2020. The Company also had operating income of $ 272 million and a net loss of $ 186 million for the three months ended March 31, 2020. On April 14, 2020, Frontier Communications Corporation and its subsidiaries (collectively, the Company Parties) entered into a Restructuring Support Agreement (the Restructuring Support Agreement) with certain of its noteholders (the Consenting Noteholders). The Restructuring Support Agreement contemplates agreed-upon terms for a pre-arranged financial restructuring plan (the Plan) that leaves unimpaired all general unsecured creditors and holders of secured debt and subsidiary debt. Under the Restructuring Support Agreement, the Consenting Noteholders have agreed, subject to certain terms and conditions, to support a financial restructuring (the Restructuring) of the existing debt of, existing equity interests in, and certain other obligations of the Company Parties, pursuant to the Plan to be filed in cases commenced under chapter 11 (the Chapter 11 Cases) of the United States Bankruptcy Code (the Bankruptcy Code). To implement the Plan, on April 14, 20 20 (the Petition Date), the Company Parties filed the Chapter 11 Cases in the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). Each Company Party will continue to operate its business as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The Chapter 11 Cases are being jointly administered under the caption In re Frontier Communications Corporation., et al ., Case No. 20-22476 (RDD). Our ability to continue as a going concern is contingent upon, among other things, our ability to, subject to the Bankruptcy Court’s approval, implement the Plan, successfully emerge from the Chapter 11 Cases and generate sufficient liquidity from the Restructuring to meet our obligations and operating needs . As a result of risks and uncertainties related to (i) the Company’s ability to obtain requisite support for the Plan from various stakeholders, and (ii) the effects of disruption from the Chapter 11 Cases making it more difficult to maintain business, financing and operational relationships, together with the Company’s recurring losses from operations and accumulated deficit, substantial doubt exists regarding our ability to continue as a going concern. For detailed discussion about the Restructuring Support Agreement and the Plan, refer to note 18. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the documents governing the JPM Credit Facilities, the First Lien Notes, the Second Lien Notes, our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. As such, we have reclassified all debt obligations to “Long term debt due within one year” on our consolidated balance sheet as of March 31, 2020. For additional discussion related to the impact of the Chapter 11 Cases on our debt obligations, refer to Note 9. Our consolidated interim unaudited financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. |
Impact of COVID-19 | c) Impact of COVID-19 On March 11, 2020, the World Health Organization declared the highly contagious and lethal corona virus outbreak a global pandemic (COVID-19) and recommended containment and other mitigation measures worldwide to lessen the transmission of COVID-19. In the first quarter of 2020, governments from around the world, including the United States federal government as well as state and local governments have reacted to this public health crisis, imposing travel restrictions and restrictions on large gatherings of people, which includes school and non-essential business closures. The rapid spread of COVID-19 and the drastic responses being taken to curb its spread have resulted in a significant negative impact to the global and domestic economies, which will increase the longer these limitations are in place. In an effort to reduce the economic impacts of COVID-19, the United States federal government has responded with multiple stimulus bills, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest economic stimulus legislation in American history. Despite these efforts, the short-term and long-term impacts of COVID-19 cannot be determined. With more people staying at home and an increased reliance on broadband and telephone networks, the FCC issued the Keep Americans Connected Pledge on March 11, 2020, which provides for telecommunication providers, including Frontier, to not terminate service and to waive any late payment fees for 60 days for certain customers due to economic circumstances they are facing related to COVID-19 as well as making WIFI hotspots available to all Americans who need them. In addition, we have seen a number of the states we operate in issue executive orders that impact our business, including prohibiting the disconnection of services for customers for the length of the state of emergency. State and federal governments continue to ask companies to aid in pandemic response. Given the unprecedented and evolving nature of the pandemic and the swift moving response of multiple levels of government as well as the uncertainty of funding available for services provided, the impact of these changes and potential changes on the Company are unknown at this time. In addition to committing to the Keep Americans Connected Pledge, Frontier’s response to COVID-19 includes limiting our product offerings to those that do not require a field service employee to enter a customer’s home and directing most non-field service employees to work from home. Thus far only a few of Frontier’s employees have been tested positive for COVID-19. Through March 31, 2020, we had not experienced any disruptions in our supply chain; however, some of our business partners, particularly those operating outside of the United States, have been more greatly impacted which has affected our service levels and distribution of work. While overall the operational and financial impact to Frontier of the COVID-19 pandemic for the three months ended March 31, 2020 were not significant, we continue to closely monitor the ongoing impact to our employees, our customers, our business and our results of operations. For example, we have experienced a slowdown in service activations and an increase in deactivations for our SMB customers; however, these negative impacts have been partially offset, by higher residential activations and lower churn. While we haven’t noticed any meaningful changes in our customers’ payment behaviors, we continue to closely monitor as any changes could have a material financial impact to Frontier. With more people working from home, we have experienced higher demands on our network and higher sales activity for our residential broadband service offering. We have not experienced any significant disruptions in our service through March 31, 2020; however, a sustained increase in network demand that we have experienced could lead to reduced network availability and potential outages, which may impair our ability to meet customer service level commitments, lead to higher costs, higher customer churn and potential increased regulatory actions. |
Revenue Recognition | d) 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 $ 49 million and $ 53 million for the three months ended March 31, 2020 and 2019, respectively, and video franchise fees, which amounted to $ 9 million and $ 11 million, for the three months ended March 31, 2020 and 2019, 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 | e) 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 March 31, 2020 and December 31, 2019. This amount represents funds held as collateral by a bank against letters of credit issued predominately to insurance carriers. |
Goodwill and Other Intangibles | f) Goodwill and Other Intangibles: Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible net assets acquired. We undertake studies to determine the fair values of assets and liabilities acquired and allocate purchase prices to assets and liabilities, including property, plant and equipment, goodwill and other identifiable intangibles. We examine the carrying value of our goodwill and trade name annually as of December 31, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. We test for goodwill impairment at the “reporting unit” level, as that term is defined in GAAP. We have two reporting units (following the announcement of the sale of the Northwest Operations) that aggregate to one operating segment, based on a number of factors that our management uses to evaluate and run our business operations, including similarities of customers, products and technology. As of December 31, 2019, all goodwill was fully impaired, other than goodwill reclassified to Assets held for sale. No further impairment testing is required as of March 31, 2020. Refer to Note 6. Frontier amortizes its acquired customer lists and certain other finite-lived intangible assets over their estimated useful lives on the accelerated method of sum of the years digits and its royalty agreement over its estimated useful life on the straight-line method. We review such intangible assets at least annually as of December 31 to assess whether any potential impairment exists and whether factors exist that would necessitate a change in useful life and a different amortization period. |
Lease Accounting | g) 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 | h) 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. On May 1, 2020, Frontier completed its sale of its operations and associated assets in Washington, Oregon, Idaho, and Montana (Northwest Operations). See note 18 for further details. As of March 31, 2020 and December 31, 2019, we have reclassified assets and liabilities of our Northwest Operations as held for sale on our consolidated balance sheets, and t he amounts and information in the footnotes as they are presented do not include assets and liabilities that have been reclassified. Refer to Note 7. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | For the three months ended March 31, ($ in millions) 2020 2019 Data and Internet services $ 932 $ 967 Voice services 572 650 Video services 222 268 Other 117 124 Revenue from contracts with customers (1) 1,843 2,009 Subsidy revenue 90 92 Total revenue $ 1,933 $ 2,101 For the three months ended March 31, ($ in millions) 2020 2019 Consumer $ 971 $ 1,077 Commercial 872 932 Revenue from contracts with customers (1) 1,843 2,009 Subsidy revenue 90 92 Total revenue $ 1,933 $ 2,101 (1) Amount includes approximately $ 17 million and $ 18 million, of lease revenue for the three months ended March 31, 2020 and 2019, respectively. |
Changes In Contract Assets And Contract Liabilities | Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2019 $ 37 $ 8 $ 41 $ 21 Revenue recognized included in opening contract balance ( 9 ) - ( 21 ) ( 4 ) Cash received, excluding amounts recognized as revenue - - 25 5 Credits granted, excluding amounts recognized as revenue 1 - - - Reclassified between Current and Non-Current - - 1 ( 1 ) Balance at March 31, 2020 $ 29 $ 8 $ 46 $ 21 Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2018 $ 44 $ 25 $ 49 $ 22 Revenue recognized included in opening contract balance ( 10 ) ( 4 ) ( 20 ) ( 5 ) Cash received, excluding amounts recognized as revenue - - 18 3 Credits granted, excluding amounts recognized as revenue 11 1 - - Balance at March 31, 2019 $ 45 $ 22 $ 47 $ 20 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2020 (remaining nine months) $ 1,096 2021 990 2022 456 2023 193 2024 103 Thereafter 626 Total $ 3,464 (1) (1) Future performance obligations include $248 million related to our Northwest Operations . Refer to Note 7. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) March 31, 2020 December 31, 2019 Retail and wholesale $ 625 $ 678 Other 71 71 Less: Allowance for doubtful accounts ( 100 ) ( 120 ) Accounts receivable, net $ 596 $ 629 |
Allowance For Doubtful Accounts | For the three months ended March 31, ($ in millions) 2020 2019 Bad debt expense $ 14 $ 14 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) March 31, 2020 December 31, 2019 Property, plant and equipment $ 26,788 $ 26,552 Less: Accumulated depreciation ( 13,898 ) ( 13,589 ) Property, plant and equipment, net $ 12,890 (1) $ 12,963 (1) Amounts exclude $ 1,075 million and $ 1,049 million reclassified as Held for Sale as of March 31, 2020 and December 31, 2019, respectively. Refer to Note 7. |
Schedule Of Depreciation Expense | For the three months ended March 31, ($ in millions) 2020 2019 Depreciation expense $ 316 $ 353 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Other Intangibles [Abstract] | |
Components Of Other Intangibles | March 31, 2020 December 31, 2019 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 4,332 $ ( 3,547 ) $ 785 $ 4,332 $ ( 3,452 ) $ 880 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 58 ) 14 72 ( 54 ) 18 Total other intangibles $ 4,526 $ ( 3,605 ) $ 921 $ 4,526 $ ( 3,506 ) $ 1,020 |
Amortization Expense | For the three months ended March 31, ($ in millions) 2020 2019 Amortization expense $ 99 $ 131 |
Planned Divestiture Of Northw_2
Planned Divestiture Of Northwest Operations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Planned Divestiture Of Northwest Operations [Abstract] | |
Components Of Held-For-Sale Assets And Liabilities | ($ in millions) March 31, 2020 ASSETS Accounts receivable, less allowances of $ 12 $ 49 Prepaid expenses 1 Contract acquisition costs 8 Other current assets 2 Property, plant and equipment, net 1,075 Goodwill (1) 658 Other intangibles, net 30 Other assets 17 Valuation allowance on assets held for sale ( 434 ) Total assets held for sale $ 1,406 LIABILITIES Accounts payable $ 13 Advanced billings 18 Accrued other taxes 9 Other current liabilities 14 Pension and other postretirement benefits (2) 29 Other liabilities 32 Total liabilities held for sale $ 115 (1) The assignment of goodwill was based on the relative fair value of the disposal group and the portion of the remaining reporting unit upon designation as “held for sale” as of May 28, 2019. (2) Excludes pension liability of $ 163 million, which will be fully funded upon closing. Approximately $ 98 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) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | March 31, 2020 December 31, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 17,511 $ 10,117 $ 17,516 $ 12,026 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | For the three months ended March 31, 2020 Principal Interest Rate at January 1, Payments March 31, March 31, ($ in millions) 2020 and Retirements New Borrowings 2020 2020* Secured debt issued by Frontier $ 5,711 $ ( 5 ) $ - $ 5,706 7.17 % Unsecured debt issued by Frontier 10,949 - - 10,949 9.62 % Secured debt issued by subsidiaries 106 - - 106 8.37 % Unsecured debt issued by subsidiaries 750 - - 750 6.90 % Total debt $ 17,516 $ ( 5 ) $ - $ 17,511 8.69 % Less: Debt Issuance Costs ( 168 ) ( 160 ) Less: Debt Discount ( 46 ) ( 45 ) Less: Current Portion ( 994 ) ( 17,306 ) Total Long-term debt $ 16,308 $ - * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at March 31, 2020 represent a weighted average of multiple issuances. |
Senior Unsecured Debt | March 31, 2020 December 31, 2019 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Revolver due 2/27/2024 (1) $ 749 4.680 % (Variable) $ 749 4.760 % (Variable) Term loan due 6/15/2024 (2) 1,694 5.350 % (Variable) 1,699 5.550 % (Variable) First lien notes due 4/1/2027 1,650 8.000 % 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 % Total secured debt issued by Frontier 5,706 5,711 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 10,949 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 % 6 6.154 % Total secured debt issued by subsidiaries 106 106 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 $ 17,511 8.464 % (3) $ 17,516 8.486 % (3) (1) Represents borrowings under the JPM Credit Agreement Revolver, as defined below. (2) Represents borrowings under the JPM Credit Agreement Term Loan B, as defined below. (3) Interest rate represents a weighted average of the stated interest rates of multiple issuances . |
Investment And Other Income (_2
Investment And Other Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment And Other Income (Loss) [Abstract] | |
Components Of Investment And Other Income | For the three months ended March 31, ( $ in millions ) 2020 2019 Interest and dividend income $ 2 $ 3 Pension and OPEB benefit (costs) 1 ( 11 ) All other, net 2 ( 1 ) Total investment and other income (loss), net $ 5 $ ( 9 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended March 31, 2020 2019 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit ( 1.2 ) ( 3.2 ) Tax reserve adjustment ( 2.5 ) ( 0.9 ) Restructuring cost ( 3.4 ) - Changes in certain deferred tax balances 0.6 ( 38.6 ) Loss on disposal of Northwest Operations ( 2.4 ) - Shared-based payments ( 0.7 ) ( 4.4 ) Federal research and development tax credit 0.6 1.7 All other, net ( 0.9 ) ( 1.6 ) Effective tax rate 11.1 % ( 26.0 ) % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Net Loss Per Share [Abstract] | |
Calculation Of Net Income (Loss) Per Common Share | For the three months ended March 31, ( $ in millions and shares in thousands, except per share amounts ) 2020 2019 Net loss used for basic and diluted loss per share: Total basic net loss attributable to Frontier common shareholders $ ( 186 ) $ ( 87 ) Effect of loss related to dilutive stock units - - Total diluted net loss attributable to Frontier common shareholders $ ( 186 ) $ ( 87 ) Basic loss per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 105,060 105,426 Less: Weighted average unvested restricted stock awards ( 697 ) ( 1,541 ) Total weighted average shares outstanding - basic 104,363 103,885 Basic net loss per share attributable to Frontier common shareholders $ ( 1.78 ) $ ( 0.84 ) Diluted loss per share: Total weighted average shares outstanding - basic 104,363 103,885 Effect of dilutive stock units - - Total weighted average shares outstanding - diluted 104,363 103,885 Diluted net loss per share attributable to Frontier common shareholders $ ( 1.78 ) $ ( 0.84 ) |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock Plans [Abstract] | |
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, 2020 900 $ 10.57 $ 1 Restricted stock granted - $ - $ - Restricted stock vested ( 387 ) $ 15.04 $ - Restricted stock forfeited ( 14 ) $ 11.57 Balance at March 31, 2020 499 $ 7.07 $ - |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2020 (1) $ ( 684 ) $ 34 $ ( 650 ) Other comprehensive income (loss) before reclassifications 1 - 1 Amounts reclassified from accumulated other comprehensive loss to net loss 90 ( 5 ) 85 Net current-period other comprehensive income (loss) 91 ( 5 ) 86 Balance at March 31, 2020 (1) $ ( 593 ) $ 29 $ ( 564 ) ($ 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 10 ( 2 ) 8 Net current-period other comprehensive income (loss) 10 ( 2 ) 8 Impact of adoption of ASU 2018-02 ( 83 ) 4 ( 79 ) Balance at March 31, 2019 (1) $ ( 562 ) $ 28 $ ( 534 ) (1) Pension and OPEB amounts are net of tax of $ 204 million and $ 250 million as of January 1, 2020 and 2019, respectively and $ 176 million and $ 169 million as of March 31, 2020 and 2019, respectively. |
Reclassification Out of Accumulated Other Comprehensive Loss | Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended the Statement Where Details about Accumulated Other March 31, Net Loss Comprehensive Loss Components 2020 2019 is Presented Amortization of Pension Cost Items (2) Actuarial losses $ ( 17 ) $ ( 14 ) Pension settlement costs ( 103 ) - ( 120 ) ( 14 ) Loss before income taxes Tax impact 30 4 Income tax benefit $ ( 90 ) $ ( 10 ) Net loss Amortization of OPEB Cost Items (2) Prior-service costs $ 8 $ 1 Actuarial gains (losses) ( 2 ) 2 6 3 Loss before income taxes Tax impact ( 1 ) ( 1 ) Income tax benefit $ 5 $ 2 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) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Plans [Abstract] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended March 31, ( $ in millions ) 2020 2019 Components of total pension benefit cost Service cost $ 25 $ 21 Interest cost on projected benefit obligation 30 33 Expected return on plan assets ( 50 ) ( 43 ) Amortization of unrecognized loss 17 14 Net periodic pension benefit cost 22 25 Pension settlement costs 103 - Total pension benefit cost $ 125 $ 25 Postretirement Benefits For the three months ended March 31, ( $ in millions ) 2020 2019 Components of net periodic postretirement benefit cost Service cost $ 5 $ 5 Interest cost on projected benefit obligation 8 10 Amortization of prior service cost (credit) ( 8 ) ( 1 ) Amortization of unrecognized (gain) loss 2 ( 2 ) Net periodic postretirement benefit cost $ 7 $ 12 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Summary Of Significant Accounting Policies [Abstract] | |||
Number of Reporting Units | segment | 2 | ||
Customer surcharges | $ 49 | $ 53 | |
Video franchise fees | $ 9 | 11 | |
Number of operating segments | segment | 1 | ||
Restricted cash | $ 50 | $ 50 | |
Expected customer life | 4 years | ||
Funding term | 6 years | ||
Cash and cash equivalents | $ 941 | 760 | |
Accumulated deficit | (8,759) | $ (8,573) | |
Operating income | 272 | 339 | |
Net loss | $ (186) | $ (87) | |
Number of reportable segments | segment | 1 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1,843 | $ 2,009 |
Subsidy revenue | 90 | 92 |
Total revenue | 1,933 | 2,101 |
Lease revenue | 17 | 18 |
Revenue from contracts with customers, performance obligation | 3,464 | |
Data And Internet Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 932 | 967 |
Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 572 | 650 |
Video services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 222 | 268 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 117 | 124 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 971 | 1,077 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 872 | $ 932 |
Revenue Recognition (Changes In
Revenue Recognition (Changes In Contract Assets And Contract Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue Recognition [Abstract] | ||
Contract current assets, Beginning balance | $ 37 | $ 44 |
Contract current assets, Revenue recognized included in opening contract balance | (9) | (10) |
Contract current assets, Credits granted, excluding amounts recognized as revenue | 1 | 11 |
Contract current assets, Ending balance | 29 | 45 |
Contract noncurrent assets, Beginning balance | 8 | 25 |
Contract noncurrent assets, Revenue recognized included in opening contract balance | (4) | |
Contract noncurrent assets, Credits granted, excluding amounts recognized as revenue | 1 | |
Contract current assets, Ending balance | 8 | 22 |
Contract current liabilities, Beginning balance | 41 | 49 |
Contract current liabilities, Revenue recognized included in opening contract balance | (21) | (20) |
Contract current liabilities, Cash received, excluding amounts recognized as revenue | 25 | 18 |
Contract current liabilities, Reclassified between Current and NonCurrent, NonCurrent | 1 | |
Contract current liabilities, Ending balance | 46 | 47 |
Contract noncurrent liabilities, Beginning balance | 21 | 22 |
Contract noncurrent liabilities, Revenue recognized included in opening contract balance | (4) | (5) |
Contract noncurrent liabilities, Cash received, excluding amounts recognized as revenue | 5 | 3 |
Contract current liabilities, Reclassified between Current and NonCurrent | (1) | |
Contract noncurrent liabilities, Ending balance | $ 21 | $ 20 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 3,464 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 1,096 |
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 | $ 990 |
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 | $ 456 |
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 | $ 193 |
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 | $ 626 |
Performance obligation satisfaction period | 1 year |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable [Abstract] | ||
Retail and wholesale | $ 625 | $ 678 |
Other | 71 | 71 |
Less: Allowance for doubtful accounts | (100) | (120) |
Accounts receivable, net | $ 596 | $ 629 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts Receivable [Abstract] | ||
Bad debt expense | $ 14 | $ 14 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2019 | Mar. 31, 2020 | |
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 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant And Equipment [Abstract] | ||
Property, plant and equipment | $ 26,788 | $ 26,552 |
Less: Accumulated depreciation | (13,898) | (13,589) |
Property, plant and equipment, net | 12,890 | 12,963 |
Assets reclassified as held for sale | $ 1,075 | $ 1,049 |
Property, Plant And Equipment_3
Property, Plant And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant And Equipment [Abstract] | ||
Depreciation expense | $ 316 | $ 353 |
Goodwill And Other Intangible_2
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Impairment | $ 9,154 | $ 9,154 |
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 (Components Of Other Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,526 | $ 4,526 |
Accumulated Amortization | (3,605) | (3,506) |
Net Carrying Amount | 921 | 1,020 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,332 | 4,332 |
Accumulated Amortization | (3,547) | (3,452) |
Net Carrying Amount | 785 | 880 |
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 | (58) | (54) |
Net Carrying Amount | $ 14 | $ 18 |
Goodwill And Other Intangible_4
Goodwill And Other Intangibles (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill And Other Intangibles [Abstract] | ||
Amortization expense | $ 99 | $ 131 |
Planned Divestiture Of Northw_3
Planned Divestiture Of Northwest Operations (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Planned Divestiture Of Northwest Operations [Abstract] | ||
Assets held for sale | $ 1,406 | $ 1,401 |
Loss on disposal of Northwest Operations | $ 24 |
Planned Divestiture Of Northw_4
Planned Divestiture Of Northwest Operations (Schedule Of Assets And Liabilities Held For Sale) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Planned Divestiture Of Northwest Operations [Abstract] | ||
Accounts receivable, less allowances of $12 | $ 49 | |
Prepaid expenses | 1 | |
Contract acquisition costs | 8 | |
Other current assets | 2 | |
Property, plant and equipment, net | 1,075 | $ 1,049 |
Goodwill | 658 | |
Other intangibles, net | 30 | |
Other assets | 17 | |
Valuation allowance on assets held for sale | (434) | |
Total assets held for sale | 1,406 | 1,401 |
Accounts payable | 13 | |
Advanced billings | 18 | |
Accrued other taxes | 9 | |
Other current liabilities | 14 | |
Pension and other postretirement benefits | 29 | |
Total liabilities held for sale | 115 | $ 123 |
Other liabilities | 32 | |
Allowance for accounts receivable, classified as held for sale | 12 | |
Pension liability | 163 | |
Pension asset to transfer | $ 98 | |
Percent of pension liability to transfer | 60.00% |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 17,511 | $ 17,516 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 10,117 | $ 12,026 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Mar. 15, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 03, 2018 |
Debt Instrument [Line Items] | ||||||
Payments to retire debt instruments | $ 5 | |||||
Line of credit facility, current borrowings | 749 | |||||
Loss on extinguishment of debt | $ 20 | |||||
Remaining outstanding principal | 17,511 | $ 17,516 | ||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, current borrowings | 101 | |||||
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments to retire debt instruments | $ 5 | $ 348 | ||||
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 | |||||
Senior Unsecured Debt [Member] | Senior Notes Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining outstanding principal | 309 | |||||
Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining outstanding principal | $ 5,706 | $ 5,711 | ||||
Secured Debt [Member] | First Lien Notes Due 4/1/2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 1,650 | |||||
Debt instrument, maturity date | Apr. 1, 2027 | |||||
Interest rate | 8.00% | 8.00% | 8.00% | |||
Remaining outstanding principal | $ 1,650 | $ 1,650 | ||||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Apr. 1, 2026 | |||||
Interest rate | 8.50% | 8.50% | ||||
Remaining outstanding principal | $ 1,600 | $ 1,600 | ||||
Secured Debt [Member] | Term Loan Due 6/15/2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Jun. 15, 2024 | |||||
Interest rate | 5.35% | 5.55% | ||||
Remaining outstanding principal | $ 1,694 | $ 1,699 | ||||
Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining outstanding principal | $ 10,949 | $ 10,949 | ||||
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 | $ 89 | ||||
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 | $ 172 | ||||
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 | $ 55 | ||||
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 | $ 220 | ||||
Secured Subsidiary Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining outstanding principal | 106 | 106 | ||||
Unsecured Subsidiary Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining outstanding principal | $ 750 | $ 750 | ||||
JP Morgan Term Loan B and Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Acceleration cause | 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. | |||||
JP Morgan Term Loan B and Revolver [Member] | Senior Notes Maturing In 2020, 2023, And 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Days prior to maturity to meet threshold to not accelerate debt | 91 days | |||||
Maximum debt threshold to not accelerate debt | $ 500 | |||||
JP Morgan Term Loan B and Revolver [Member] | Senior Notes Maturing In 2021 Or 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Days prior to maturity to meet threshold to not accelerate debt | 91 days | |||||
Maximum debt threshold to not accelerate debt | $ 500 | |||||
JP Morgan Revolving Credit Facility 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 850 | |||||
Debt instrument, maturity date | Feb. 27, 2024 | |||||
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] | Senior Unsecured Debt [Member] | Senior Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum debt threshold to not accelerate debt | $ 500 | |||||
Increased interest rate | 0.25% | |||||
JP Morgan Revolving Credit Facility 2015 [Member] | Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Feb. 27, 2024 | Feb. 27, 2022 | ||||
JP Morgan Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 1,625 | |||||
JP Morgan Term Loan A [Member] | Senior Note Due 3/31/2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Mar. 1, 2021 | |||||
JP Morgan Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 1,740 | |||||
Debt instrument, maturity date | Jun. 15, 2024 | |||||
JP Morgan Term Loan B [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 2.75% | |||||
JP Morgan Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 3.75% | |||||
CoBank Term Loan 2014 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 350 | |||||
CoBank Term Loan 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 315 | |||||
Debt instrument, maturity date | Oct. 1, 2021 | |||||
Minimum [Member] | JP Morgan Term Loan B and Revolver [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 1.00% | |||||
Minimum [Member] | JP Morgan Term Loan B and Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 2.00% | |||||
Maximum [Member] | JP Morgan Term Loan B and Revolver [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 2.00% | |||||
Maximum [Member] | JP Morgan Term Loan B 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 | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | $ 17,516 | ||
Principal Payments and Retirements | (5) | ||
Long-term debt, ending balance | 17,511 | ||
Long-term debt | 17,511 | $ 17,511 | $ 17,516 |
Less: Debt Issuance Cost | (160) | (168) | |
Less: Debt Discount | (45) | (46) | |
Less: Current Portion | $ (17,306) | (994) | |
Total Long term debt | 16,308 | ||
Interest rate | 8.69% | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 5,711 | ||
Long-term debt, ending balance | 5,706 | ||
Long-term debt | 5,711 | $ 5,706 | 5,711 |
Secured Debt [Member] | Parent Company [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 5,711 | ||
Principal Payments and Retirements | (5) | ||
Long-term debt, ending balance | 5,706 | ||
Long-term debt | 5,706 | $ 5,706 | 5,711 |
Interest rate | 7.17% | ||
Secured Debt [Member] | Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 106 | ||
Long-term debt, ending balance | 106 | ||
Long-term debt | 106 | $ 106 | 106 |
Interest rate | 8.37% | ||
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 10,949 | ||
Long-term debt, ending balance | 10,949 | ||
Long-term debt | 10,949 | $ 10,949 | 10,949 |
Unsecured Debt [Member] | Parent Company [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, beginning balance | 10,949 | ||
Long-term debt, ending balance | 10,949 | ||
Long-term debt | 10,949 | $ 10,949 | 10,949 |
Interest rate | 9.62% | ||
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 | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 17,511 | $ 17,516 | |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 5,706 | 5,711 | |
Secured Debt [Member] | Revolver Due 2/27/2024 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 749 | $ 749 | |
Interest Rate | 4.68% | 4.76% | |
Debt instrument, maturity date | Feb. 27, 2024 | ||
Secured Debt [Member] | Term Loan Due 6/15/2024 [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 1,694 | $ 1,699 | |
Interest Rate | 5.35% | 5.55% | |
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 | $ 1,650 | |
Interest Rate | 8.00% | 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% | |
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 | ||
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 10,949 | $ 10,949 | |
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 | $ 106 | |
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 | $ 6 | |
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 | ||
Secured Debt, Unsecured Debt, Secured Subsidiary Debt, And Unsecured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 17,511 | $ 17,516 | |
Weighted average interest rate | 8.464% | 8.486% |
Restructuring Costs And Other_2
Restructuring Costs And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Restructuring Costs And Other Charges [Abstract] | |||
Restructuring reserve | $ 14 | $ 15 | |
Restructuring costs | 48 | $ 28 | |
Transformation costs | 8 | 13 | |
Severance expense | 2 | $ 15 | |
Consulting and advisory costs | $ 38 |
Restructuring Costs And Other_3
Restructuring Costs And Other Charges (Restructuring Reserve Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | $ 15 | |
Severance expense | 2 | $ 15 |
Transformation costs | 8 | $ 13 |
Other costs | 38 | |
Cash payments during the period | (49) | |
Restructuring Reserve, Ending Balance | $ 14 |
Investment And Other Income (_3
Investment And Other Income (Loss) (Components Of Investment And Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investment And Other Income (Loss) [Abstract] | ||
Interest and dividend income | $ 2 | $ 3 |
Pension and OPEB benefit (costs) | 1 | (11) |
All other, net | 2 | (1) |
Total investment and other income (loss), net | $ 5 | $ (9) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Valuation allowance | $ 54 | |
Net of federal benefit | $ 43 | |
Percentage of limitation on use | 80.00% | |
Deferred income tax payment period | 2 years | |
Income tax refunds | $ 13 | $ 1 |
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 | 2,200 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Abstract] | ||
Consolidated tax provision at federal statutory rate (in hundredths) | 21.00% | 21.00% |
State income tax provisions, net of federal income tax benefit (in hundredths) | (1.20%) | (3.20%) |
Tax reserve adjustment (in hundredths) | (2.50%) | (0.90%) |
Restructuring cost | (3.40%) | |
Changes in certain deferred tax balances (in hundredths) | 0.60% | (38.60%) |
Loss on disposal of Northwest Operations (in hundreths) | (2.40%) | |
Shared-based payments (in hundreths) | (0.70%) | (4.40%) |
Federal research and development tax credit (in hundreths) | 0.60% | 1.70% |
All other, net (in hundredths) | (0.90%) | (1.60%) |
Effective tax rate (in hundredths) | 11.10% | (26.00%) |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation of diluted earnings per share (in shares) | 1,344 | 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 | 485,687 |
Expense recognized during the period | $ 0 | $ 0 |
Net Loss Per Share (Calculation
Net Loss Per Share (Calculation Of Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Loss Per Share [Abstract] | ||
Total basic net loss attributable to Frontier common shareholders | $ (186) | $ (87) |
Total diluted net loss attributable to Frontier common shareholders | $ (186) | $ (87) |
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 105,060 | 105,426 |
Less: Weighted average unvested restricted stock awards (in shares) | (697) | (1,541) |
Total weighted average shares outstanding - basic (in shares) | 104,363 | 103,885 |
Basic net loss per share attributable to Frontier common shareholders | $ (1.78) | $ (0.84) |
Total weighted average shares outstanding - diluted (in shares) | 104,363 | 103,885 |
Diluted net loss per share attributable to Frontier common shareholders | $ (1.78) | $ (0.84) |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 15 Months Ended | ||
Mar. 31, 2020USD ($)ShareBasedCompensationPlan$ / sharesshares | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)ShareBasedCompensationPlan$ / sharesshares | Dec. 31, 2019USD ($)$ / 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 | 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 | 5,667,000 | ||
Shares available for grant under the plan (in shares) | shares | 3,437,000 | 3,437,000 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for grant under the plans (in shares) | shares | 96,000 | |||
Expense recognized during the period | $ 0 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognized during the period | $ 1 | $ 3 | ||
Restricted Stock | ||||
Fair value of unvested restricted stock | $ 1 | |||
Restriced stock, grant date fair value per share | $ / shares | $ 7.07 | $ 7.07 | $ 10.57 | |
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ 3 | $ 3 | ||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 1 year |
Stock Plans (Restricted Shares
Stock Plans (Restricted Shares Outstanding) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 900,000 |
Restricted stock vested (in shares) | shares | (387,000) |
Restricted stock forfeited (in shares) | shares | (14,000) |
Balance at end of period (in shares) | shares | 499,000 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 10.57 |
Restricted stock vested (in dollars per shares) | $ / shares | 15.04 |
Restricted stock forfeited (in dollars per shares) | $ / shares | 11.57 |
Balance at end of period (in dollars per shares) | $ / shares | $ 7.07 |
Balance at beginning of period, Aggregate fair value | $ | $ 1 |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss), Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ (4,394) | $ 1,600 | ||
Net current-period other comprehensive income (loss) | 86 | 8 | ||
Balance | (4,493) | 1,535 | ||
Pension Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (684) | (489) | ||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive loss to net loss | 90 | 10 | ||
Net current-period other comprehensive income (loss) | 91 | 10 | ||
Impact of adoption of new accounting principle | (83) | |||
Balance | (593) | (562) | ||
Postretirement Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 34 | 26 | ||
Other comprehensive income (loss) before reclassifications | ||||
Amounts reclassified from accumulated other comprehensive loss to net loss | (5) | (2) | ||
Net current-period other comprehensive income (loss) | (5) | (2) | ||
Impact of adoption of new accounting principle | 4 | |||
Balance | 29 | 28 | ||
Deferred Taxes On Pension And OPEB Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Deferred tax items | 176 | 169 | $ 204 | $ 250 |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (650) | (463) | ||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive loss to net loss | 85 | 8 | ||
Net current-period other comprehensive income (loss) | 86 | 8 | ||
Impact of adoption of new accounting principle | (79) | |||
Balance | $ (564) | $ (534) |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, net of tax | $ (90) | $ (10) |
Postretirement Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, net of tax | 5 | 2 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Pension Benefits [Member] | Amortization Of Defined Benefit Cost Items [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | (120) | (14) |
Tax impact | 30 | 4 |
Reclassifications, net of tax | (90) | (10) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Pension Benefits [Member] | Actuarial Gains (Losses) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | (17) | (14) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Pension Benefits [Member] | Pension Settlement Cost [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | (103) | |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Postretirement Costs [Member] | Amortization Of Defined Benefit Cost Items [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | 6 | 3 |
Tax impact | (1) | (1) |
Reclassifications, net of tax | 5 | 2 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Postretirement Costs [Member] | Prior-Service Credits (Costs) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | 8 | 1 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Postretirement Costs [Member] | Actuarial Gains (Losses) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | $ (2) | $ 2 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2021 | Dec. 31, 2019 | |
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 | $ 7 | $ 6 | ||
Defined benefit plan, cash contributions by employer | 327 | |||
Plan assets | 2,166 | $ 2,730 | ||
Increase in pension assets | $ 564 | |||
Percentage of increase in pension plan | 21.00% | |||
Positive investment returns | $ 274 | |||
Benefit payments | 37 | |||
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Settlements, Benefit Obligation | 310 | |||
Defined Benefit Plan, Settlements Benefit obligation threshold | 211 | |||
Estimated plan contributions | 190 | |||
Plan contributions | 37 | |||
Pension settlement costs | $ 103 | |||
Forecast [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Plan contributions | $ 153 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension settlement costs | $ 103 | |
Net periodic benefit cost | 125 | $ 25 |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 25 | 21 |
Interest cost on projected benefit obligation | 30 | 33 |
Expected return on plan assets | (50) | (43) |
Amortization of unrecognized (gain) loss | 17 | 14 |
Net periodic pension benefit cost | 22 | 25 |
Pension settlement costs | 103 | |
Postretirement Costs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 5 | 5 |
Interest cost on projected benefit obligation | 8 | 10 |
Amortization of prior service cost (credit) | (8) | (1) |
Amortization of unrecognized (gain) loss | 2 | (2) |
Net periodic benefit cost | $ 7 | $ 12 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)state | |
Operating Leases [Abstract] | |
Term of lease arrangements lower range | 1 year |
rm of lease arrangements lower range | 99 years |
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 |
Amount of annual USF frozen high-cost support | $ 198 |
Number of states of operation | state | 29 |
CAF II Four States [Member] | |
Regulatory Commitments [Abstract] | |
Annual support offered by the Federal Communications Commission | $ 19 |
Number of states of operation | state | 4 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] - USD ($) $ in Millions | May 01, 2020 | Apr. 14, 2020 |
Subsequent Event [Line Items] | ||
Term period | 120 days | |
Takeback Debt, Principal amount | $ 750 | |
Insurance coverage | $ 25 | |
Gross proceeds | $ 1,352 | |
Proceeds from sale | $ 1,131 | |
Gross first lien leverage ratio | 1.55% | |
Senior Notes [Member] | ||
Subsequent Event [Line Items] | ||
Unrestricted balance sheet excess cash | $ 150 | |
DIP Revolving Facility [Member] | ||
Subsequent Event [Line Items] | ||
DIP, Maximum line of credit | 460 | |
Exit Revolving Facility [Member] | ||
Subsequent Event [Line Items] | ||
DIP, Option to increase credit amount | $ 600 | |
Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Maturity period | 8 years | |
Maximum [Member] | Secured Debt [Member] | ||
Subsequent Event [Line Items] | ||
Interest rate | 2.50% | |
Maximum [Member] | Unsecured Debt [Member] | ||
Subsequent Event [Line Items] | ||
Interest rate | 3.50% | |
Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Maturity period | 1 year | |
Percentage of debt held by the Consenting Noteholders | 50.10% |