Document and Entity Information
Document and Entity Information - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-11001 | |
Entity Registrant Name | FRONTIER COMMUNICATIONS CORPORATION | |
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 | Q3 | |
Amendment Flag | false | |
Entity Tax Identification Number | 06-0619596 | |
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 | 104,793 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,767 | $ 760 |
Accounts receivable, less allowances of $133 and $120, respectively | 562 | 629 |
Contract acquisition costs | 100 | 105 |
Prepaid expenses | 105 | 89 |
Assets held for sale | 1,401 | |
Income taxes and other current assets | 104 | 53 |
Total current assets | 2,638 | 3,037 |
Property, plant and equipment, net | 12,858 | 12,963 |
Other intangibles, net | 757 | 1,020 |
Other assets | 534 | 468 |
Total assets | 16,787 | 17,488 |
Current liabilities: | ||
Long-term debt due within one year | 5,701 | 994 |
Accounts payable | 564 | 437 |
Advanced billings | 214 | 219 |
Accrued other taxes | 238 | 206 |
Accrued interest | 13 | 407 |
Pension and other postretirement benefits | 43 | 43 |
Liabilities held for sale | 123 | |
Other current liabilities | 339 | 375 |
Total current liabilities | 7,112 | 2,804 |
Deferred income taxes | 327 | 462 |
Pension and other postretirement benefits | 2,293 | 1,896 |
Other liabilities | 394 | 412 |
Long-term debt | 16,308 | |
Liabilities subject to compromise | 11,587 | |
Total liabilities | 21,713 | 21,882 |
Equity (Deficit): | ||
Common stock, $0.25 par value (175,000 authorized shares, 106,025 issued and 104,793 and 105,131 outstanding at September 30, 2020 and December 31, 2019, respectively) | 27 | 27 |
Additional paid-in capital | 4,818 | 4,815 |
Accumulated deficit | (8,925) | (8,573) |
Accumulated other comprehensive loss, net of tax | (832) | (650) |
Treasury common stock | (14) | (13) |
Total equity (deficit) | (4,926) | (4,394) |
Total liabilities and equity (deficit) | $ 16,787 | $ 17,488 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 133 | $ 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) | 104,793,000 | 105,131,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements Of Operations [Abstract] | ||||
Revenue | $ 1,726 | $ 1,997 | $ 5,460 | $ 6,165 |
Operating expenses: | ||||
Network access expenses | 226 | 307 | 767 | 963 |
Network related expenses | 431 | 464 | 1,305 | 1,365 |
Selling, general and administrative expenses | 404 | 445 | 1,255 | 1,346 |
Depreciation and amortization | 392 | 422 | 1,204 | 1,360 |
Goodwill impairment | 276 | 5,725 | ||
Loss on disposal of Northwest Operations | 30 | 160 | 414 | |
Restructuring costs and other charges | 3 | 27 | 87 | 86 |
Total operating expenses | 1,456 | 1,971 | 4,778 | 11,259 |
Operating income (loss) | 270 | 26 | 682 | (5,094) |
Investment and other loss, net | (14) | (10) | (29) | (28) |
Pension settlement costs | (159) | |||
Loss on extinguishment of debt | (20) | |||
Reorganization items, net | (131) | (273) | ||
Interest expense (contractual interest for the three and nine months ended September 30, 2020 were $372 million and $1,116 million, respectively) | (121) | (382) | (664) | (1,144) |
Income (Loss) before income taxes | 4 | (366) | (443) | (6,286) |
Income tax benefit | (11) | (21) | (91) | (537) |
Net income (loss) | $ 15 | $ (345) | $ (352) | $ (5,749) |
Basic and diluted net earnings (loss) per share attributable to Frontier common shareholders | $ 0.14 | $ (3.31) | $ (3.37) | $ (55.26) |
Total weighted average shares outstanding - basic | 104,526 | 104,135 | 104,460 | 104,031 |
Total weighted average shares outstanding - diluted | 104,866 | 104,135 | 104,460 | 104,031 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Consolidated Statements Of Operations [Abstract] | ||
Contractual interest | $ 372 | $ 1,116 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net income (loss) | $ 15 | $ (345) | $ (352) | $ (5,749) |
Other comprehensive income (loss), net of tax | 155 | 8 | (182) | 25 |
Comprehensive income (loss) | $ 170 | $ (337) | $ (534) | $ (5,724) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Common Stock [Member]Previously Reported [Member] | Common Stock [Member] | Additional Paid-in Capital [Member]Previously Reported [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member]Previously Reported [Member] | Accumulated Deficit [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member]Previously Reported [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Common Stock [Member]Previously Reported [Member] | Treasury Common Stock [Member] | Previously Reported [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Total |
Balance at Dec. 31, 2018 | $ 27 | $ 4,802 | $ (2,752) | $ 11 | $ 79 | $ (463) | $ (79) | $ (14) | $ 1,600 | $ 11 | ||||
Common Stock Balance (in shares) at Dec. 31, 2018 | 106,025 | (489) | ||||||||||||
Stock plans | $ 3 | $ 3 | ||||||||||||
Stock plans (in shares) | (229) | |||||||||||||
Net income (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, 2018 | $ 27 | $ 4,802 | $ (2,752) | $ 11 | 79 | (463) | (79) | $ (14) | $ 1,600 | $ 11 | ||||
Common Stock Balance (in shares) at Dec. 31, 2018 | 106,025 | (489) | ||||||||||||
Net income (loss) | (5,749) | |||||||||||||
Other comprehensive income, net of tax | 25 | 25 | ||||||||||||
Balance at Sep. 30, 2019 | $ 27 | 4,810 | (8,411) | (517) | $ (12) | (4,103) | ||||||||
Common Stock Balance (in shares) at Sep. 30, 2019 | 106,025 | (655) | ||||||||||||
Balance at Mar. 31, 2019 | $ 27 | 4,805 | (2,749) | (534) | $ (14) | 1,535 | ||||||||
Common Stock Balance (in shares) at Mar. 31, 2019 | 106,025 | (718) | ||||||||||||
Stock plans | $ 2 | 2 | ||||||||||||
Stock plans (in shares) | 68 | |||||||||||||
Net income (loss) | (5,317) | (5,317) | ||||||||||||
Other comprehensive income, net of tax | 9 | 9 | ||||||||||||
Balance at Jun. 30, 2019 | $ 27 | 4,805 | (8,066) | (525) | $ (12) | (3,771) | ||||||||
Common Stock Balance (in shares) at Jun. 30, 2019 | 106,025 | (650) | ||||||||||||
Stock plans | 5 | 5 | ||||||||||||
Stock plans (in shares) | (5) | |||||||||||||
Net income (loss) | (345) | (345) | ||||||||||||
Other comprehensive income, net of tax | 8 | 8 | ||||||||||||
Balance at Sep. 30, 2019 | $ 27 | 4,810 | (8,411) | (517) | $ (12) | (4,103) | ||||||||
Common Stock Balance (in shares) at Sep. 30, 2019 | 106,025 | (655) | ||||||||||||
Balance at Dec. 31, 2019 | $ 27 | 4,815 | (8,573) | (650) | (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 income (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) | ||||||||||||
Balance at Dec. 31, 2019 | $ 27 | 4,815 | (8,573) | $ (650) | (650) | $ (13) | $ (4,394) | |||||||
Common Stock Balance (in shares) at Dec. 31, 2019 | 106,025 | (894) | 105,131 | |||||||||||
Net income (loss) | $ (352) | |||||||||||||
Other comprehensive income, net of tax | (182) | (182) | ||||||||||||
Balance at Sep. 30, 2020 | $ 27 | 4,818 | (8,925) | (832) | $ (14) | $ (4,926) | ||||||||
Common Stock Balance (in shares) at Sep. 30, 2020 | 106,025 | (1,232) | 104,793 | |||||||||||
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) | ||||||||||||
Stock plans (in shares) | (77) | |||||||||||||
Net income (loss) | (181) | (181) | ||||||||||||
Other comprehensive income, net of tax | (423) | (423) | ||||||||||||
Balance at Jun. 30, 2020 | $ 27 | 4,816 | (8,940) | (987) | $ (13) | (5,097) | ||||||||
Common Stock Balance (in shares) at Jun. 30, 2020 | 106,025 | (1,114) | ||||||||||||
Stock plans | 2 | $ (1) | 1 | |||||||||||
Stock plans (in shares) | (118) | |||||||||||||
Net income (loss) | 15 | 15 | ||||||||||||
Other comprehensive income, net of tax | 155 | 155 | ||||||||||||
Balance at Sep. 30, 2020 | $ 27 | $ 4,818 | $ (8,925) | $ (832) | $ (14) | $ (4,926) | ||||||||
Common Stock Balance (in shares) at Sep. 30, 2020 | 106,025 | (1,232) | 104,793 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows provided from (used by) operating activities: | ||
Net loss | $ (352) | $ (5,749) |
Adjustments to reconcile net loss to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 1,204 | 1,360 |
Loss on extinguishment of debt | 20 | |
Pension settlement costs | 159 | |
Stock-based compensation expense | 3 | 10 |
Amortization of deferred financing costs | 13 | 23 |
Non-cash reorganization items, net | 85 | |
Other adjustments | 3 | 2 |
Deferred income taxes | (100) | (541) |
Goodwill impairment | 5,725 | |
Loss on disposal of Northwest Operations | 160 | 414 |
Change in accounts receivable | 63 | 17 |
Change in accounts payable and other liabilities | 334 | (153) |
Change in prepaid expenses, income taxes and other assets | (80) | (25) |
Net cash provided from operating activities | 1,492 | 1,103 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures | (825) | (898) |
Proceeds from sale of Northwest Operations | 1,131 | |
Proceeds on sale of assets | 7 | 76 |
Other | 2 | 2 |
Net cash provided from (used by) investing activities | 315 | (820) |
Cash flows provided from (used by) financing activities: | ||
Long-term debt principal payments | (5) | (2,003) |
Proceeds from long-term debt borrowings | 1,650 | |
Proceeds from revolving debt | 949 | |
Repayment of revolving debt | (749) | (475) |
Financing costs paid | (19) | (44) |
Finance lease obligation payments | (18) | (26) |
Other | (5) | |
Net cash provided from (used by) financing activities | (791) | 46 |
Increase (Decrease) in cash, cash equivalents, and restricted cash | 1,016 | 329 |
Cash, cash equivalents, and restricted cash at January 1, | 809 | 404 |
Cash, cash equivalents, and restricted cash at September 30, | 1,825 | 733 |
Cash paid during the period for: | ||
Interest | 548 | 1,208 |
Income tax payments, net | 6 | $ 5 |
Reorganization items, net | $ 134 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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. 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 income (loss) and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. For our interim financial statements as of and for the period ended September 30, 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 Frontier’s ability to continue as a going concern. As reflected in our consolidated financial statements, the Company had unrestricted cash and cash equivalents of $ 1,767 million and an accumulated deficit of $ 8,925 million as of September 30, 2020. The Company also had operating income of $ 682 million and a net loss of $ 352 million for the nine months ended September 30, 2020. On April 14, 2020, Frontier Communications Corporation and its subsidiaries (collectively , the Company Parties or the Debtors and, as they may be reorganized pursuant to the Plan, the Reorganized Company Parties or the Reorganized Debtors) e ntered 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 that leaves unimpaired all general unsecured creditors and holders of secured debt and subsidiary debt. Under the Restructuring Support Agreement, the Consenting Noteholders 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 title 11 of the United States 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 continues 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). On May 15, 2020, the Company Parties filed a proposed Joint Plan of Reorganization and related Disclosure Statement, each of which were amended on June 26, 2020, June 29, 2020 and June 30, 2020. On May 15, 2020, the Debtors also filed a proposed order approving the Disclosure Statement and various plan solicitation materials, including the solicitation and voting procedures, which was revised on June 29, 2020 (including modifications to some of the exhibits). On June 30, 2020, the Bankruptcy Court entered the modified order approving the adequacy of the Disclosure Statement and the solicitation and notice procedures and the forms of voting ballots and notices in connection therewith. The order established June 29, 2020 as the voting record date, July 2, 2020 as the solicitation launch date and July 31, 2020 as the voting deadline. On August 21, 2020, the Company Parties filed the Fifth Amended Joint Plan of Reorganization of Frontier Communications Corporation and Its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (the Plan) with the Bankruptcy Court. On August 27, 2020, the Bankruptcy Court entered the Order Confirming the Fifth Amended Joint Plan of Reorganization of Frontier Communications Corporation and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (the Confirmation Order), which approved and confirmed the Plan. The effective date of the Plan will occur once all conditions precedent to the Plan have been satisfied (the Effective Date). 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 successfully consummate the Plan and emerge from the Chapter 11 Cases, 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 Chapter 11 Cases and the Plan, refer to Note 3. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the JPM Credit Agreement (as defined herein), the Company’s 8.000 % first lien secured notes due 2027 (the Original First Lien Notes) , the Company’s 8.500 % second lien secured notes due April 1, 2026 (the Second Lien Notes) , our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. We have reclassified all debt obligations to “Long term debt due within one year” or “Liabilities Subject to Compromise”, based on the event of default or reinstatement provisions of each security in the Restructuring Support Agreement, on our consolidated balance sheet as of September 30, 2020. O n October 8, 2020, the Company issued $ 1,150 million aggregate principal amount of 5.875 % First Lien Secured Notes due 2027 (the New First Lien Notes), entered into a $ 625 million DIP revolving facility (the DIP Revolving Facility) and a $ 500 million DIP term loan facility (the DIP Term Loan Facility). The Company used the proceeds from the offering of the New First Lien Notes, together with the proceeds of the DIP Term Loan Facility and cash on hand, to (i) repay in full the Company’s Original First Lien Notes and (ii) pay related interest, fees and expenses. For additional discussion related to the impact of the Chapter 11 Cases on our debt obligations, refer to Note 10. 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 half of 2020, governments from around the world, including the United States federal government as well as state and local governments 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 Federal Communications Commission (FCC) issued the Keep Americans Connected Pledge on March 11, 2020, which provided 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, some of the states we operate in have issued executive orders as a result of COVID-19 that further impact our business, including prohibiting the disconnection of services for customers for the length of the state of emergency. While the initial 60-day period of the Keep Americans Connected Pledge has expired, state and federal governments continue to ask companies to aid in pandemic response. While certain customers have taken advantage of our COVID-19 related relief programs, as of September 30, 2020, very few had past due balances beyond the point of normal disconnection. In addition to committing to the Keep Americans Connected Pledge, Frontier’s response to COVID-19 has included several operational safety precautions such as limiting our product offerings in certain markets for certain periods, including not allowing our field service employees to enter a customer’s home for a period of time, a limitation which is no longer in effect. We are continuing to require personal protective equipment on any employees entering a customer location. The percentage of Frontier’s employees who have reported testing positive for COVID-19 is small and continues to track below the percentage of reported cases both nationally and in those states in which Frontier has a significant number of employees. Through September 30, 2020, we had not experienced any significant disruptions in our supply chain; however, some of our business partners, particularly those vendors operating outside of the United States, have been more greatly impacted which has affected our service levels and distribution of work. As the COVID-19 pandemic continues, certain states are currently considering legislation or other regulations to adopt additional protections for workers impacted by COVID-19. To date, we have not experienced significant disruptions in our workforce due to COVID-19 related absences or legislative or regulatory changes. 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 full impact of these changes and potential changes on the Company are unknown at this time. While overall the operational and financial impacts to Frontier of the COVID-19 pandemic for the three and nine months ended September 30, 2020 were not significant, we continue to closely monitor the ongoing impact to our employees, our customers, our business and our results of operations. We have experienced a slowdown in service activations and an increase in deactivations for our SMB customers; to date, these negative impacts have been partially offset by higher residential activations and lower churn. We also continue to closely track our customers’ payment activity as well as external factors, including the expiration of federal wage subsidies for individuals and small businesses which could materially impact payment trends. With more people working from home, we have experienced higher demands on our network and higher sales activity for our residential broadband service offering. This sustained increase in network demand 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. These potential changes, among others, could have a material financial impact to Frontier . d) Debtor-in-Possession: In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to certain motions and applications intended to limit the disruption of the bankruptcy proceedings on our operations (the First Day Motions) and other motions filed with the Bankruptcy Court, the Bankruptcy Court has authorized us to conduct our business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing us to obtain DIP financing, pay employee wages and benefits, settle certain de minimis disputes and pay vendors and suppliers in the ordinary course for all goods and services. e) 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 $ 51 million and $ 60 million, and $ 142 million and $ 162 million for the three and nine months ended September 30, 2020 and 2019, respectively, and video franchise fees, which amounted to $ 7 million and $ 10 million, and $ 23 million and $ 31 million for the three and nine months ended September 30, 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 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 CAF Phase II subsidies into revenue on a straight-line basis over the seven year funding term. f) Cash Equivalents : We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $ 58 million and $ 50 million is included in “Other assets” on our consolidated balance sheet as of September 30, 2020 and December 31, 2019, respectively. These amounts represent funds held as collateral by a bank against letters of credit issued predominately to insurance carriers and, beginning in the second quarter of 2020, funds held in an interest-bearing account as adequate assurances to utility providers established in accordance with First Day Motions filed by Frontier. g) Definite and Indefinite Lived Intangible Assets: Intangible assets arising from business combinations, such as customer lists, tradenames, and royalty agreements, are initially recorded at estimated fair value. 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 st to assess whether any potential impairment exists and whether factors exist that would necessitate a change in useful life and a different amortization period. h) 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. i) 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 the sale of its operations and associated assets in Washington, Oregon, Idaho, and Montana (Northwest Operations or Northwest Ops). As of December 31, 2019, the assets and liabilities of the Northwest Operations were classified as held for sale on our consolidated balance sheets, and t he amounts and information of the Company in the footnotes as they are presented do not include assets and liabilities that have been reclassified, refer to Note 8 . |
Recent Accounting Literature
Recent Accounting Literature | 9 Months Ended |
Sep. 30, 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. New disclosures required by this standard are not applicable for our interim periods and will be included in Frontier’s annual consolidated financial statement 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 on 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 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. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard provides optional expedients, and allows for certain exceptions to existing GAAP, for contract modifications triggered by the expected market transition of certain benchmark interest rates to alternative reference rates. The standard applies to contracts and other arrangements that reference the London Interbank Offering Rate (LIBOR) or any other rates ending after December 31, 2022. Frontier is evaluating the impact of the adoption of this standard, including optional expedients, on our consolidated financial statements. |
Chapter 11 Filing And Other Rel
Chapter 11 Filing And Other Related Matters | 9 Months Ended |
Sep. 30, 2020 | |
Chapter 11 Filing And Other Related Matters [Abstract] | |
Chapter 11 Filing And Other Related Matters | ( 3) Chapter 11 Filing and Other Related Matters: Restructuring Support Agreement On April 14, 2020, the Company Parties entered into the Restructuring Support Agreement with the Consenting Noteholders, pursuant to which the Consenting Noteholders 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 a pre-arranged Plan to be filed in the Chapter 11 Cases. In accordance with the Restructuring Support Agreement, the Consenting Noteholders agreed, among other things, to: (i) support the transactions (the Restructuring Transactions) described in, within the timeframes outlined in, and in accordance with the Restructuring Support Agreement; (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 (as defined in the Restructuring Support Agreement) 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 documents governing a senior secured superpriority DIP financing facility, (b) the order of the Bankruptcy Court approving the disclosure statement related to the Plan 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 businesses 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 businesses; 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 consummation of the Plan. In addition, the Restructuring Support Agreement shall automatically terminate on the Effective Date of the Plan once all conditions precedent to the Plan have been satisfied. Chapter 11 Cases As an initial step towards implementation of the Plan, on the Petition Date, the Company Parties filed the Chapter 11 Cases in the Bankruptcy Court. Each Company Party continues 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). In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business, however, we may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. To that end, on the Petition Date, the Company Parties filed the First Day Motions, which were approved after a final hearing held on May 22, 2020. Pursuant to the First Day Motions, the Bankruptcy Court authorized us to conduct our business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders: continue to operate our cash management system and honor certain prepetition obligations related thereto; maintain existing business forms; continue to perform intercompany transactions; obtain super priority administrative expense status to post-petition intercompany balances; pay certain prepetition claims of critical vendors, lien claimants and section 503(b)(9) of the Bankruptcy Code claimants in the ordinary course of business on a post-petition basis; pay prepetition employee wages, salaries, other compensation and reimbursable employee expenses and continue employee benefits programs; pay obligations under prepetition insurance policies, continue to pay certain brokerage fees; renew, supplement, modify or purchase insurance coverage; maintain our surety bond program; pay certain prepetition taxes and fees; honor certain prepetition obligations to customers and continue certain customer programs in the ordinary course of business; and pay or honor prepetition claims of content providers. Plan and Disclosure Statement On May 15, 2020, the Company Parties filed a proposed Joint Plan of Reorganization and related Disclosure Statement, each of which were amended on June 26, 2020, June 29, 2020 and June 30, 2020. On May 15, 2020, the Debtors also filed a proposed order approving the Disclosure Statement and various plan solicitation materials, including the solicitation and voting procedures, which was revised on June 29, 2020 (including modifications to some of the exhibits) . On June 30, 2020, the Bankruptcy Court entered the modified order approving the adequacy of the Disclosure Statement and the solicitation and notice procedures and the forms of voting ballots and notices in connection therewith. The order established June 29, 2020 as the voting record date, July 2, 2020 as the solicitation launch date and July 31, 2020 as the voting deadline. On August 21, 2020, the Company Parties filed the Plan with the Bankruptcy Court. On August 27, 2020, the Bankruptcy Court entered the Confirmation Order, which approved and confirmed the Plan. The Effective Date of the Plan will occur once all conditions precedent to the Plan have been satisfied. The Plan as approved and confirmed by the Bankruptcy Court provides for: the applicable (x) Debtors, with the consent of the Consenting Noteholders then holding greater than 50.1 % of the aggregate outstanding principal amount of senior notes claims that are held by all Consenting Noteholders subject to the Restructuring Support Agreement as of such date (the Required Consenting Noteholders), or (y) Reorganized Debtors taking any action as may be necessary or advisable to effectuate the restructuring transactions described in the Plan and Restructuring Transactions Memorandum (as defined in the Plan), including; o the execution, delivery, and filing of any organizational and governance documents for the Reorganized Company Parties; o any and all actions necessary or appropriate to effectuate the Secured Creditor Settlement (as defined below); and o the execution, delivery, and filing of all agreements, indentures, notes, filings, documents, and instruments delivered or entered into in connection with one or more DIP financing facilities, which shall be used to repay certain of the Company Parties’ prepetition secured indebtedness and shall convert into an exit facility on the Effective Date (a DIP-to-Exit Facility), and a DIP revolving financing facility, which shall, subject to certain conditions, convert into an exit revolving facility (a DIP-to-Exit Revolving Facility and, together with a DIP-to-Exit Facility, DIP Facilities); the final satisfaction, compromise, settlement, release, and discharge of claims arising under, derived from, secured by, based on, or related to any DIP-to-Exit Facility documents or DIP-to-Exit Revolving Facility documents, on the Effective Date in exchange for payment in full in cash or, at the Company Parties’ election, and solely to the extent permitted under DIP-to-Exit Facility documents or DIP-to-Exit Revolving Facility documents, as applicable, or as otherwise agreed, such holder’s pro rata share of the applicable exit facilities; on the Effective Date, issuance of takeback debt by one or more of the Reorganized Company Parties (the Takeback Debt), in a principal amount of $ 750 million, which shall include the following terms: o an interest rate that is either (a) no more than 2.50 % higher than the interest rate of the next most junior secured debt facility to be entered into on the Effective Date if the Takeback Debt is secured on a third lien basis or (b) no more than 3.50 % higher than the interest rate of the most junior secured debt facility to be entered into on the Effective Date if the Takeback Debt is unsecured; o a maturity of no less than one year outside of the longest-dated debt facility to be entered into by the Reorganized Company Parties on the Effective Date, provided that in no event shall the maturity of the Takeback Debt be longer than eight years from the Effective Date; o to the extent the Second Lien Notes claims are reinstated under the Plan, the Takeback Debt will be third lien debt, provided that to the extent the Second Lien Notes claims are paid in full in cash during the pendency of the Chapter 11 Cases or under the Plan, the Company Parties and the Required Consenting Noteholders will agree on whether the Takeback Debt will be secured or unsecured, within three business days of the Company Parties’ delivery to the Consenting Noteholders of a term sheet for the financing to repay the Second Lien Notes in full in cash that contains terms and conditions reasonably acceptable to the Company Parties and the Required Consenting Noteholders; o the Takeback Debt amount is subject to downward adjustment by the Consenting Noteholders holding at least sixty-six and two-thirds percent of the aggregate outstanding principal amount of senior notes that are held by all Consenting Noteholders; 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. The Plan, among other things and subject to the terms of the Secured Creditor Settlement, contemplates the following treatment of claims against and interests in the Company Parties: at the option of the applicable Reorganized Company Party, holders of secured claims against a Company Party that, absent its secured status, would be entitled to priority in right of payment under section 507(a)(8) of the Bankruptcy Code (determined irrespective of time limitations) (the Secured Tax Claims) shall receive (i) payment in full in cash or (ii) payment in cash made in equal semi-annual cash payments commencing as of the Effective Date or as soon as reasonably practicable thereafter and continuing for five years, in an aggregate amount equal to such claim, together with interest at the applicable non-default contract rate under non-bankruptcy law; at the option of the applicable Company Party, holders of claims entitled to priority in right of payment under section 507(a) of the Bankruptcy Code other than Administrative Claims or Priority Tax Claims (each as defined in the Plan) shall receive payment in full in cash or such other treatment rendering such claims unimpaired; claims arising under, derived from, based on, or related to the Company’s $ 850 million secured revolving credit facility maturing on February 27, 2024 (the Revolver) shall be repaid on or before the Effective Date, including payment of interest payments calculated at the non-default contract rate through the earlier of the Effective Date or repayment of the Revolver in full in cash (which shall include accrued but unpaid postpetition interest); claims arising under, derived from, based on, or related to the JPM Credit Agreement shall be repaid on or before the Effective Date or reinstated on the Effective Date solely in the event that financing to repay such claims cannot be obtained, including payment of interest payments calculated at the non-default contract rate through the earlier of the Effective Date or repayment of Frontier’s $ 1,740 million senior secured Term Loan B facility (the Term Loan B) maturing on June 15, 2024 . in full in cash (which shall include accrued but unpaid postpetition interest); claims arising under, derived from, based on, or related to the Original First Lien Notes, issued pursuant to the indenture, dated as of March 15, 2019, by and among the Company, as issuer, the subsidiary guarantors party thereto, JPMorgan Chase Bank, N.A., as collateral agent, and Wilmington Trust, National Association, as successor trustee, shall be repaid on or before the Effective Date or reinstated on the Effective Date, including payment of interest payments calculated at the non-default contract rate through the earlier of the Effective Date or repayment of the Original First Lien Notes in full in cash (which shall provide for the payment of accrued but unpaid postpetition interest); claims arising under, derived from, based on, or related to Second Lien Notes, issued pursuant to that certain indenture, dated as of March 19, 2018, by and among the Company, as issuer, the subsidiary guarantors party thereto, and Wilmington Savings Fund Society FSB, as successor trustee and successor collateral agent (the Second Lien Notes Trustee), shall be repaid on or before the Effective Date or reinstated on the Effective Date, including payment of interest payments calculated at the non-default contract rate as required through the earlier of the Effective Date or repayment of the Second Lien Notes in full in cash (which shall provide for the payment of accrued but unpaid postpetition interest); claims arising under, derived from, based on or related to (a) the 8.500 % secured notes due November 15, 2031 , issued by Frontier Southwest Incorporated pursuant to the Restated Indenture, dated June 1, 1940, by and among Frontier Southwest Incorporated, as issuer, and BOKF, NA, as successor trustee, and (b) Rural Utilities Service loan contracts due January 3, 2028 (collectively, the Subsidiary Secured Notes) shall be reinstated on the Effective Date, with holders of such claims receiving ordinary course cash interest payments at the applicable non-default contract rate through the Effective Date; claims arising under, derived from, based on or related to the 6.750 % unsecured notes due May 15, 2027 issued by Frontier California Inc., the 6.860 % unsecured notes due February 1, 2028 issued by Frontier Florida LLC, the 6.730 % unsecured notes due February 15, 2028 issued by Frontier North Inc., the 8.400 % unsecured notes due October 15, 2029 issued by Frontier West Virginia Inc. and the applicable indentures, debentures and purchase agreements associated therewith shall be reinstated on the Effective Date, with holders of such claims receiving ordinary course cash interest payments at the applicable non-default contract rate through the Effective Date; holders of claims arising under, derived from, based on, or related to the unsecured notes issued by the Company shall receive their (i) pro rata share of and interest in the Incremental Senior Notes Payment Amount (as defined in the Plan) and (ii) pro rata share of and interest in (after first reducing, for distribution purposes only, the amount of each such holder’s senior notes claim on a dollar-for-dollar basis by the amount of Incremental Senior Notes Payments, and solely to the extent actually paid): (a) 100% of the Reorganized Company’s new common stock, subject to dilution by the Reorganized Company’s management incentive plan; (b) the Takeback Debt, if any; and (c) the Surplus Cash (as defined in the Plan), if any; to the extent not already satisfied during the Chapter 11 Cases, holders of certain other claims that are not secured shall receive: (i) payment in full in cash; (ii) reinstatement; or (iii) such other treatment rendering such claims unimpaired, in each case as reasonably acceptable to the Company Parties and the Required Consenting Noteholders; holders of secured claims (other than claims arising under, derived from, based on or related to the Revolver, the Term Loan B, the Original First Lien Notes, the Second Lien Notes, the Subsidiary Secured Notes, the Secured Tax Claims or DIP Facilities) shall receive, at the option of the applicable Company Party: (i) payment in full in cash, (ii) reinstatement; (iii) delivery of the collateral securing such claim; or (iv) such other treatment rendering such claim unimpaired; claims subject to subordination under section 510(b) of the Bankruptcy Code shall be cancelled, released, discharged, and extinguished; all intercompany claims and intercompany interests shall be either (a) reinstated or (b) cancelled on the Effective Date; and all equity securities in the Company shall be cancelled, released and extinguished on the Effective Date. For more information on the repayment of the Revolver and the First Lien Notes, see Note 10. Secured Creditor Settlement The Plan will effectuate the settlement, release, compromise, discharge, and other resolution of all outstanding claims, interests, and causes of action, including the Objection of the Ad Hoc First Lien Committee to the Debtors’ Third Amended Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 857], the Objection of the Second Lien Notes Trustee to the Debtors’ Third Amended Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 858], and the Second Lien Committee’s Joinder to the Second Lien Notes Trustee’s Objection [Docket No. 860], as between the Company Parties, the ad hoc committee of certain unaffiliated holders of Term Loan B claims and Original First Lien Notes claims (the First Lien Committee) represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP and PJT Partners LP, the Second Lien Notes Trustee, and the ad hoc committee of certain unaffiliated holders of Second Lien Notes claims represented by Quinn Emanuel Urquhart & Sullivan, LLP (the Second Lien Committee) (such settlement, the Secured Creditor Settlement). The Secured Creditor Settlement includes, among other terms and subject to certain conditions, the following key terms: holders of Term Loan B claims, Original First Lien Notes claims, and Second Lien Notes claims, and the First Lien Committee and Second Lien Committee, shall be deemed to have consented to reinstatement and shall not allege, and shall be deemed to have waived and foregone any objections to, any defaults arising from the transactions set forth in the Plan; holders of Term Loan B claims, Original First Lien Notes claims, and Second Lien Notes claims, and the First Lien Committee and Second Lien Committee shall be deemed to have consented to and shall not impede or otherwise delay the Debtors’ pursuit of certain debtor in possession/exit financing facilities; holders of Term Loan B claims, Original First Lien Notes claims, and Second Lien Notes claims, and the First Lien Committee and Second Lien Committee, shall waive and forgo any and all “make-whole” claims and claims to default interest under the JPM Credit Agreement, the Original First Lien Notes indenture, and/or the Second Lien Notes indenture, as applicable; holders of Revolver claims, Term Loan B claims, Original First Lien Notes claims (including the First Lien Committee), the applicable agents, and the Original First Lien Notes trustee shall be deemed to have waived any enforcement of any turnover or payment over rights under the Junior Lien Intercreditor and Subordination Agreement, dated as of March 19, 2018, against the Debtors, Second Lien Notes Trustee, or holders of Second Lien Notes claims with respect to certain obligations and amounts; the Company Parties shall make a $ 48,200,000 payment to holders of Term Loan B claims, a $ 9,300,000 payment for the benefit of holders of Original First Lien Notes claims, and, in the event that the Effective Date occurs on or after March 31, 2021, an incremental payment of $ 7,500,000 to holders of Term Loan B claims; the Company Parties or the Reorganized Company Parties, as applicable, shall pay in full in cash all reasonable First Lien Committee fees and Second Lien Committee fees that are due and owing under the applicable engagement letters; and all adequate protection currently in effect shall remain in effect until entry of a final adequate protection order and, upon the Company Parties’ entry into any DIP Facilities, the Bankruptcy Court shall enter a final adequate protection order granting, among other things, adequate protection to secured creditors in the form of (i) liens and claims on all collateral securing any future DIP Facilities, and (ii) cash payments in the amount of accrued interest . DIP Financing As previously disclosed, prior to the commencement of the Chapter 11 Cases, the Company and certain of its domestic subsidiaries entered into that certain Commitment Letter, dated April 14, 2020 (as amended by that certain Letter Agreement, dated April 28, 2020, by that certain Letter Agreement, dated May 12, 2020, by that certain Letter Agreement, dated June 10, 2020, by that certain Letter Agreement, dated June 29, 2020 and as further amended, modified or supplemented from time to time, the Original 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 Original Commitment Parties), pursuant to which, and subject to the satisfaction of certain customary conditions, including the approval of the Bankruptcy Court, GS Bank, DBNY, Barclays, MSSF and CS committed to provide a portion of the senior secured superpriority revolving credit facility in an aggregate principal amount of $ 460 million, which, upon satisfaction of certain conditions, including the effectiveness of the Plan, would convert into a longer term revolving exit facility. The Original Commitment Letter lapsed in accordance with its terms. The Company and certain of its domestic subsidiaries entered into a Commitment Letter, dated August 13, 2020, with the Original Commitment Parties, which was amended and restated by that certain Amended and Restated Commitment Letter, dated August 28, 2020, with the Original Commitment Parties and JPMorgan Chase Bank, N.A. (JPM) (collectively, the New Commitment Parties), pursuant to which, and subject to the satisfaction of certain customary conditions, including the approval of the Bankruptcy Court, GS Bank, JPM, DBNY, MSSF and CS committed to provide a portion of the $ 625 million DIP Revolving Facility, which, upon satisfaction of certain conditions, including the effectiveness of the Plan, would convert into a longer term revolving exit facility (the Exit Revolving Facility). On August 14, 2020, the Company and certain of its subsidiaries entered into an engagement letter, which was amended and restated on August 28, 2020 by that certain Amended and Restated Engagement Letter by and among the Company and certain of its subsidiaries and Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, DBSI, Barclays Capital Inc., Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC, in connection with a proposed issuance, offering and sale senior secured superpriority first lien and/or second lien notes to be issued by the Company or an affiliate thereof. The Company and certain of its domestic subsidiaries also entered into that certain Engagement Letter, dated August 14, 2020, with GS Bank, which was amended and restated by that certain Amended and Restated Engagement Letter, dated August 28, 2020 with the New Commitment Parties, in connection with the DIP Term Loan Facility, which, upon satisfaction of certain conditions, including the effectiveness of the Plan, would convert into a term loan Exit Facility (the Exit Term Loan Facility). On August 28, 2020, the Company Parties filed a motion (the DIP Financing Motion) with the Bankruptcy Court to approve the indentures, credit, guarantee and security documents governing the obligations under the Notes, the DIP Revolving Facility, the DIP Term Loan Facility, the Exit Revolving Facility, the Exit Term Loan Facility and, if applicable, the reinstated Term Loan B (collectively, the DIP Financing). On September 17, 2020, the Bankruptcy Court entered the final order approving the DIP Financing Motion. On October 8, 2020, the Company issued $ 1,150 million aggregate principal amount the New First Lien Notes, entered into a $ 625 million DIP Revolving Facility and a $ 500 million DIP Term Loan Facility . The Company used the proceeds from the offering of the New First Lien Notes, together with the proceeds of the DIP Term Loan Facility and cash on hand, to (i) repay in full the Company’s Original First Lien Notes and (ii) pay related interest, fees and expenses. For more information about the DIP Financing, refer to Note 10. Regulatory Approvals As set forth in the Plan and the Disclosure Statement, in order to implement the restructuring contemplated by the Plan, the Company Parties must satisfy several conditions after confirmation of the Plan but prior to emergence from Chapter 11. Among other things, the Company Parties must obtain requisite regulatory approvals, including FCC and required Public Utility Commission (PUC) approvals in certain states, The level of review undertaken by the FCC and state PUCs, and the length of time to complete such review varies. The Company is the subject of ongoing investigations and reviews, which may have an impact on the timing of receipt of FCC or PUC approvals and/or lead to the imposition of financial sanctions and/or operational restrictions. In addition, the FCC and certain state PUCs may impose conditions on the approval of the Restructuring Transactions, including commitments to make significant capital expenditures to improve services. The regulatory approval process is moving forward, and the Company has received PUC approvals or favorable determinations in the majority of required states at this time. No assurance can be given as to the terms, conditions, and timing of the remaining required approvals or clearances. Executory Contracts Subject to certain exceptions, under the Bankruptcy Code, the Company Parties may assume, amend, or reject certain executory contracts and unexpired leases with respect to their operations with the approval of the Bankruptcy Court. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Company Parties from performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Company Parties to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Company Parties in this document, including where applicable a quantification of the Company’s obligations under any such executory contract or unexpired lease of the Company Parties, is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. Reorganization Items and Liabilities Subject to Compromise Effective on April 14, 2020, we began to apply the provisions of ASC 852, Reorganizations (ASC 852), which is applicable to companies under bankruptcy protection, and requires amendments to the presentation of certain financial statement line items. ASC 852 requires that the financial statements for periods including and after the filing of the Chapter 11 Cases distinguish transactions and events that are directly associated with the Restructuring from the ongoing operations of the business. Expenses (including professional fees), realized gains and losses, and provisions for losses that can be directly associated with the Restructuring must be reported separately as reorganization items, net in the consolidated statements of operations beginning April 14, 2020, the date of filing of the Chapter 11 Cases. Liabilities that may be affected by the Plan must be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the Plan or negotiations with creditors. The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of secured status of certain claims, the values of any collateral securing such claims, or other events. Any resulting changes in classification will be reflected in subsequent financial statements. If there is uncertainty about whether a secured claim is undersecured, or will be impaired under the Plan, the entire amount of the claim is included with prepetition claims in Liabilities subject to compromise. As a result of the filing of the Chapter 11 Cases on April 14, 2020, the classification of pre-petition indebtedness is generally subject to compromise pursuant to the Plan. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims generally is not permitted, the Bankruptcy Court granted the Company Parties authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Company Parties’ businesses and assets. Among other things, the Bankruptcy Court authorized the Company Parties’ to pay certain pre-petition claims relating to employee wages and benefits, taxes and critical vendors. The Company Parties are paying and intend to pay undisputed post-petition liabilities in the ordinary course of business. In addition, the Company Parties may reject certain pre-petition executory contracts and unexpired leases with respect to their operations with the approval of the Bankruptcy Court. Any damages resulting from the rejection of executory contracts and unexpired leases are treated as general unsecured claims. The accompanying unaudited condensed consolidated balance sheet as of September 30, 2020 includes amounts classified as Liabilities subject to compromise, which represent liabilities the Company anticipates will be allowed as claims in the Chapter 11 Cases. These amounts represent the Company's current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases and may differ from actual future settlement amounts paid. Differences between liabilities estimated and claims filed, or to be filed, will be investigated and resolved in connection with the claims resolution process. Liabilities subject to compromise consisted of the following: ($ in millions) September 30, 2020 Accounts payable $ 53 Other current liabilities 88 Accounts payable, and other current liabilities 141 Debt subject to compromise 10,949 Accrued interest on debt subject to compromise 497 Long-term debt and accrued interest 11,446 Liabilities subject to compromise $ 11,587 Determination of the value at which liabilities will ultimately be settled cannot be made until the Plan becomes effective and the Company emerges from bankruptcy. The Company will continue to evaluate and adjust the amount and classification of its pre-petition liabilities. Such adjustments may be material. Any additional li |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (4) 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. Revenues in the following tables include revenues for the Northwest Operations for the four months ended April 30, 2020 (prior to its disposal): For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Data and Internet services $ 838 $ 928 $ 2,644 $ 2,858 Voice services 500 621 1,595 1,900 Video services 186 244 608 772 Other 103 113 328 357 Revenue from contracts with customers (1) 1,627 1,906 5,175 5,887 Subsidy and other revenue (2) 99 91 285 278 Total revenue $ 1,726 $ 1,997 $ 5,460 $ 6,165 For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Consumer $ 859 $ 1,024 $ 2,729 $ 3,151 Commercial 768 882 2,446 2,736 Revenue from contracts with customers (1) 1,627 1,906 5,175 5,887 Subsidy and other revenue (2) 99 91 285 278 Total revenue $ 1,726 $ 1,997 $ 5,460 $ 6,165 (1) Includes approximately $ 16 million and $ 17 million, and $ 50 million and $ 52 million, of lease revenue for the three and nine months ended September 30, 2020 and 2019, respectively. (2) Includes $ 15 million and $ 25 million in transition services provided to the purchaser in connection with the divestiture of the Northwest Operations for the three and nine months ended September 30, 2020. The following is a summary of the changes in the 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 ( 27 ) - ( 47 ) ( 10 ) Cash received, excluding amounts recognized as revenue - - 64 9 Credits granted, excluding amounts recognized as revenue 3 - - - Reclassified between current and concurrent - - 1 ( 1 ) Balance at September 30, 2020 $ 13 $ 8 $ 59 $ 19 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 ( 29 ) ( 5 ) ( 56 ) ( 14 ) Cash received, excluding amounts recognized as revenue - - 58 9 Credits granted, excluding amounts recognized as revenue 23 1 - - Reclassified between current and concurrent 5 ( 5 ) ( 2 ) 2 Reclassified to held for sale ( 3 ) ( 1 ) ( 5 ) ( 1 ) Balance at September 30, 2019 $ 40 $ 15 $ 44 $ 18 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 three months) $ 547 2021 1,283 2022 594 2023 242 2024 110 Thereafter 206 Total $ 2,982 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | (5 ) Accounts Receivable : The components of accounts receivable, net are as follows : ($ in millions) September 30, 2020 December 31, 2019 Retail and wholesale $ 619 $ 678 Other 76 71 Less: Allowance for doubtful accounts ( 133 ) ( 120 ) Accounts receivable, net $ 562 $ 629 We maintain an allowance for doubtful accounts based on the estimated ability to collect accounts receivable. The allowance for doubtful accounts is increased for retail customers by recording bad debt expense and for wholesale customers through decreases to revenue at the time of billing. The allowance is decreased when customer accounts are written off, or when customers are given credits. The ending balance in the allowance account as of September 30, 2020 was elevated as a result of ongoing billing disputes with some of our wholesale customers. As estimates of collectability evolve and/or resolutions are reached with carriers, these reserves may be significantly reduced. Bad debt expense (credits), which is recorded as a reduction to revenue, is as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Bad debt expense $ 16 $ 16 $ 40 $ 48 |
Property, Plant And Equipment
Property, Plant And Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 6) Property, Plant and Equipment : Property, plant and equipment, net is as follows : ($ in millions) September 30, 2020 December 31, 2019 Property, plant and equipment $ 27,355 $ 26,552 Less: Accumulated depreciation ( 14,497 ) ( 13,589 ) Property, plant and equipment, net $ 12,858 $ 12,963 (1) (1) Excludes $ 1,049 million classified as Held for Sale as of December 31, 2019. 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 2019. Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Depreciation expense $ 311 $ 321 $ 941 $ 1,016 Effective with the designation of the Northwest Operations 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. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Other Intangibles [Abstract] | |
Goodwill And Other Intangibles | (7) Goodwill and Other Intangibles : All goodwill was fully impaired as of December 31, 2019, other than goodwill of $ 658 million associated with the planned disposal of Frontier Northwest which was classified in Assets held for sale as of December 31, 2019. Goodwill impairment charges were $ 276 million and $ 5,725 million for the three and nine months ended September 30, 2019. Accumulated goodwill impairment charges were $ 9,154 million as of September 30, 2020 and December 31, 2019. The components of other intangibles are as follows : September 30, 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 $ ( 3,704 ) $ 628 $ 4,332 $ ( 3,452 ) $ 880 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 65 ) 7 72 ( 54 ) 18 Total other intangibles $ 4,526 $ ( 3,769 ) $ 757 $ 4,526 $ ( 3,506 ) $ 1,020 Amortization expense was as follows : For the three months ended For the nine months ended September 30, September 30, ($ in millions) 2020 2019 2020 2019 Amortization expense $ 81 $ 101 $ 263 $ 344 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. |
Divestiture Of Northwest Operat
Divestiture Of Northwest Operations | 9 Months Ended |
Sep. 30, 2020 | |
Divestiture Of Northwest Operations [Abstract] | |
Divestiture Of Northwest Operations | (8) Divestiture of Northwest Operations: 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 of indebtedness, funding certain escrows and other closing adjustments, we received $ 1,131 million in proceeds. A portion of the proceeds from the sale are held in escrow as recourse for indemnity claims that may arise under the purchase agreement and for adjustments to employee liabilities and working capital that may be identified after closing. As of September 30, 2020, there was $ 57 million of proceeds held in escrow accounts included in Other current assets. In connection with the sale, Frontier entered into an agreement to perform certain transition services for the purchaser. The first six months of these services are generally being provided at no additional cost to the purchaser as a condition of the transaction. The fair value of these transition services was estimated to be $ 30 million and were recorded as a deferred liability (recorded within the Advanced Billing financial statement caption in the balance sheet) in connection with the transaction, which amount is being amortized to other revenue as the related services are being delivered. For the three and nine months ended September 30, 2020, we recognized $ 15 million and $ 25 million, respectively, in other revenue related to these transition services. On September 30, 2020, the purchaser provided notice that they are terminating, effective October 31, 2020, all future services that Frontier would have provided under this agreement. In connection with the termination, Frontier agreed to provide limited training and subject matter support services for a fee, primarily during the fourth quarter of 2020. The Northwest Operations were included in Frontier’s continuing operations and classified as assets held for sale and liabilities related to assets held for sale on our consolidated balance sheets through the completion of the transaction on May 1, 2020. As a result of the closing of the transaction, we derecognized net assets of $ 1,132 million, including property, plant, and equipment of $ 1,084 million, goodwill of $ 658 million, a $ 603 million valuation allowance on our assets held for sale, and $ 142 million of defined benefit pension and other postretirement benefit plan obligations, net of transferred pension plan assets. This transaction did not represent a strategic shift for Frontier; therefore, it did 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. During the nine months ended September 30, 2020, Frontier recorded a loss on disposal of $ 160 million, associated with the sale of the Northwest Operations. There was no additional loss on disposal recorded during the third quarter of 2020. For the nine months ended September 30, 2020, these amounts include $ 27 million of loss (an immaterial out of period adjustment) related to the initial measurement and recognition of the estimated loss on disposal measured during the quarter ended June 30, 2019, upon designation as assets held for sale. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (9) Fair Value of Financial Instruments : The following table summarizes the carrying amounts and estimated fair values for long-term debt at September 30, 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 (including $ 10,949 million of debt classified in Liabilities subject to compromise at September 30, 2020) is estimated based upon quoted market prices at the reporting date for those financial instruments. September 30, 2020 December 31, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 16,762 $ 10,539 $ 17,516 $ 12,026 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (10) Long-Term Debt: The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the JPM Credit Agreement, the Original 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 certain subsidiary unsecured and certain secured debt obligations to Long term debt due within one year and certain parent unsecured debt obligations to Liabilities subject to compromise on our consolidated balance sheet as of September 30, 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 related to the Restructuring Support Agreement, the Chapter 11 Cases, the Plan and the DIP Financing, refer to Note 3. The activity in our long-term debt is summarized as follows: For the nine months ended September 30, 2020 Principal Interest Rate at January 1, Payments September 30, September 30, ($ in millions) 2020 and Retirements New Borrowings 2020 2020* Secured debt issued by Frontier $ 5,711 $ ( 754 ) $ - $ 4,957 7.77 % Unsecured debt issued by Frontier 10,949 - - 10,949 9.20 % Secured debt issued by subsidiaries 106 - - 106 8.37 % Unsecured debt issued by subsidiaries 750 - - 750 6.90 % Debt prior to reclassification to liabilities subject to compromise $ 17,516 $ ( 754 ) $ - $ 16,762 8.67 % Less: Debt Issuance Costs ( 168 ) ( 65 ) Less: Debt Discount ( 46 ) ( 47 ) Debt, less unamortized debt issuance costs and discounts 17,302 16,650 Less: Current Portion ( 994 ) ( 5,701 ) Less: Debt subject to compromise - ( 10,949 ) Total Long-term debt $ 16,308 $ - * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at September 30, 2020 represent a weighted average of multiple issuances. Additional information regarding our secured and unsecured long-term debt as of September 30, 2020 (prior to the filing of the Chapter 11 Cases) and December 31, 2019 is as follows: September 30, 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 4.760 % (Variable) Term loan due 6/15/2024 (2) 1,694 6.000 % (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 % Secured debt issued by Frontier 4,957 5,711 Unsecured debt issued by Frontier 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 % 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 % 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 % Unsecured debt issued by subsidiaries 750 750 Debt prior to reclassification to liabilities subject to compromise 16,762 8.699 % (3) 17,516 8.486 % (3) Less: debt subject to compromise ( 10,949 ) - Total debt $ 5,813 $ 17,516 (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 . New Debt Issuances On August 28, 2020, the Company Parties filed the DIP Financing Motion with the Bankruptcy Court to approve the indentures, credit, guarantee and security documents governing the New First Lien Notes, the DIP Revolving Facility, the DIP Term Loan Facility, the Exit Revolving Facility, the Exit Term Loan Facility and, if applicable, the reinstated Term Loan B. On September 17, 2020, the Bankruptcy Court entered the final order approving the DIP Financing Motion. On October 8, 2020, Frontier issued $ 1,150 million aggregate principal amount of New First Lien Notes and entered into a $ 625 million DIP Revolving Facility and a $ 500 million DIP Term Loan Facility . Frontier used the proceeds from the offering of the New First Lien Notes, together with the proceeds of the DIP Term Loan Facility, and cash on hand, to (i) repay in full the Company’s Original First Lien Notes and (ii) pay related interest, fees and expenses. New First Lien Notes On October 8, 2020, Frontier issued $ 1,150 million aggregate principal amount of New First Lien Notes. The New First Lien Notes were issued pursuant to an indenture, dated as of October 8, 2020 (the DIP Indenture), by and among Frontier, the guarantors party thereto, the grantor party thereto, JPMorgan Chase Bank N.A., as collateral agent and Wilmington Trust, National Association, as trustee. The New First Lien Notes were issued in a private offering exempt from the registration requirements of the Securities Act, to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act, at a purchase price equal to 100% of the principal amount thereof. Prior to the conversion date, the New First Lien Notes are secured on a super-priority basis, subject to permitted liens and certain exceptions, by all the assets that secure Frontier’s obligations under the DIP Revolving Facility and the DIP Term Loan Facility, on a super-priority basis. From the conversion date, the New First Lien Notes are secured on a first-priority basis, subject to permitted liens and certain exceptions, by all the assets that secure Frontier’s obligations under its senior secured credit facilities on a first-priority basis. The New First Lien Notes bear interest at a rate of 5.875 % per annum and will mature on October 15, 2027 . Interest on the New First Lien Notes is payable to holders of record semi-annually in arrears on April 15 and October 15 of each year, commencing April 15, 2021. Frontier may redeem the New First Lien Notes at any time, in whole or in part, prior to their maturity. The redemption price for New First Lien Notes redeemed before October 15, 2023 will be equal to 100% of the aggregate principal amount thereof, together with any accrued and unpaid interest, if any, to, but not including, the redemption date, plus a make-whole premium. The redemption price for New First Lien Notes redeemed on or after October 15, 2023 will be equal to the redemption prices set forth in the DIP Indenture, together with any accrued and unpaid interest to the redemption date. In addition, at any time before October 15, 2023, Frontier may redeem up to 40 % of the New First Lien Notes using the proceeds of certain equity offerings at a redemption price equal to 105.875 % of the aggregate principal amount thereof, together with any accrued and unpaid interest, if any, to, but not including, the redemption date. In the event of a change of control triggering event, each holder of New First Lien Notes will have the right to require Frontier to purchase for cash such holder’s New First Lien Notes at a purchase price equal to 101 % of the principal amount of the New First Lien Notes, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The DIP Indenture contains customary negative covenants, subject to a number of important exceptions and qualifications, including, without limitation, covenants related to incurring additional debt and issuing preferred stock; incurring or creating liens; redeeming and/or prepaying certain debt; paying dividends on our stock or repurchasing stock; making certain investments; engaging in specified sales of assets; entering into transactions with affiliates; and engaging in consolidation, mergers and acquisitions. Certain of these covenants will be suspended during such time, if any, that the New First Lien Notes have investment grade ratings by at least two of Moody’s, S&P or Fitch. The DIP Indenture also provides for customary events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the New First Lien Notes to become or to be declared due and payable. DIP Term Loan Facility On October 8, 2020, Frontier entered into a $ 500 million DIP Term Loan Facility , pursuant to the credit agreement, dated as of October 8, 2020 (the DIP to Exit Term Credit Agreement), by and among Frontier, as the borrower, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent and each lender from time to time party thereto. The DIP Term Loan Facility has a maturity of the earlier of (x) the date that is twelve months after the closing date of the DIP Term Loan Facility and (y) the date of the substantial consummation of the Plan; provided that to the extent such substantial consummation has not occurred on or prior to the date referred to in the foregoing clause (x), primarily because any condition precedent set forth therein with respect to the procurement of regulatory approvals has not been satisfied (and other than any other conditions that by their nature can only be satisfied on the consummation date), the maturity date shall be extended by an additional six months; provided that if certain conditions occur, the maturity date shall be the earlier of (a) the date that is the seventh anniversary of the closing date and (b) 90 days prior to the maturity date of the Second Lien Notes so long as the aggregate principal amount of such notes is in excess of a threshold amount. At our election, the determination of interest rates for the DIP Term Loan Facility are based on margins over the alternate base rate or over LIBOR. The interest rate with respect to any LIBOR loan is 4.75 % or 3.75 % for alternate base rate loans, with a 1.00 % LIBOR floor. Subject to certain exceptions and thresholds, the security package under the DIP Term Loan Facility includes pledges of the equity interests in certain of our subsidiaries, which as of the issue date is limited to certain specified pledged entities, substantially all personal property of Frontier Video Services Inc., a Delaware corporation (Frontier Video), and, solely prior to the conversion date, substantially all of the unencumbered assets and properties (the DIP Collateral) of Frontier and Frontier Communications of Iowa, LLC, an Iowa limited liability company (Frontier Iowa), which such security interest in the DIP Collateral was granted solely pursuant to the DIP financing order issued by the Bankruptcy Court, which same assets also secure the New First Lien Notes. The DIP Term Loan Facility is guaranteed by the same subsidiaries that guarantee the New First Lien Notes. Upon the conversion date, the security package will no longer include the DIP Collateral. The DIP Term Loan Facility includes usual and customary negative covenants for DIP to exit loan agreements of this type, including covenants limiting Frontier and its restricted subsidiaries’ (other than certain covenants therein which are limited to subsidiary guarantors) ability to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and acquisitions, pay dividends and distributions and make payments in respect of certain material payment subordinated indebtedness, in each case subject to customary exceptions for exit loan agreements of this type. The DIP Term Loan Facility also includes certain customary representations and warranties, affirmative covenants and events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under ERISA, upon the conversion date, unstayed judgments in favor of a third party involving an aggregate liability in excess of a certain threshold, change of control, upon the conversion date, specified governmental actions having a material adverse effect or condemnation or damage to a material portion of the collateral. Upon the conversion date, subject to certain conditions, the DIP Term Loan Facility shall convert into the Exit Term Loan Facility with an aggregate principal amount of $ 500 million. DIP Revolving Facility On October 8, 2020, Frontier entered into the DIP Revolving Facility, pursuant to the senior secured superpriority debtor-in-possession credit agreement, dated as of October 8, 2020, by and among Frontier, as the borrower, Goldman Sachs Bank USA, as administrative agent and collateral agent and each lender and issuing bank from time to time party thereto. The DIP Revolving Facility has a maturity of the earlier of (x) the date that is twelve months after the closing date of the DIP Revolving Facility and (y) the date of the substantial consummation of the Plan; provided that to the extent such substantial consummation has not occurred on or prior to the date referred to in the foregoing clause (x), primarily because any condition precedent set forth therein with respect to the procurement of regulatory approvals has not been satisfied (and other than any other conditions that by their nature can only be satisfied on the consummation date), the maturity date shall be extended by an additional six months. At our election, the determination of interest rates for the DIP Revolving Facility is based on margins over the alternate base rate or over LIBOR. The interest rate with respect to any LIBOR loan is 3.25 % (or 2.25 % for alternate base rate loans). Subject to customary exceptions and thresholds, the security package under the DIP Revolving Facility includes pledges of the equity interests in certain of our subsidiaries, which as of the issue date is limited to certain specified pledged entities, substantially all personal property of Frontier Video and substantially all of the unencumbered assets and properties of Frontier and Frontier Iowa, which such security interest in the unencumbered assets and properties was granted solely pursuant to the DIP financing order issued by the Bankruptcy Court, which same assets also secure the New First Lien Notes. The DIP Revolving Facility is guaranteed by the same subsidiaries that guarantee the New First Lien Notes. After giving effect to $ 90 million of letters of credit formerly outstanding under the Revolver that were rolled into, replaced or otherwise accommodated for under the DIP Revolving Facility, the Company has $ 535 million of available borrowing capacity under the DIP Revolving Facility. The DIP Revolving Facility includes usual and customary negative covenants for loan agreements of this type, including covenants limiting Frontier and its restricted subsidiaries’ (other than certain covenants therein which are limited to subsidiary guarantors) ability to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and acquisitions, pay dividends and distributions and make payments in respect of certain material payment subordinated indebtedness, in each case subject to customary exceptions for loan agreements of this type. The DIP Revolving Facility also includes certain customary representations and warranties, affirmative covenants and events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under ERISA, change of control or damage to a material portion of the collateral. Upon the conversion date, subject to certain conditions, the DIP Revolving Facility shall convert into the Exit Revolving Facility with an aggregate principal amount of $ 625 million. The Exit Revolving Facility will be available on a revolving basis during the period commencing on the conversion date and ending on the date that is the earlier of (x) 3 years after the conversion date and (y) 91 days prior to the earliest maturity date of permitted pari passu refinancing debt, permitted junior refinancing debt, the term loans outstanding under the prepetition credit agreement after giving effect to the consummation of the Plan (or any indebtedness that replaces or refinances such term loans) and any long term exit facilities so long as, in each case, the outstanding principal amount of any such indebtedness is in excess of an amount set forth in the definitive documentation with respect to the Exit Revolving Facility. The determination of interest rates for the Exit Revolving Facility is based on margins over the alternate base rate or over LIBOR, at our election. The interest rate with respect to any LIBOR loan is 4.00 % (or 3.00 % for alternate base rate loans). New Debt Reductions On October 8, 2020, Frontier used the proceeds from the offering of New First Lien Notes, together with the proceeds of the DIP Term Loan Facility and cash on hand, to (i) repay in full the $ 1,650 million principal balance of the Original First Lien Notes, and (ii) pay related interest, fees and expenses incurred in connection therewith. On September 17, 2020, Frontier repaid the $ 749 million of outstanding principal under the Revolver, plus accrued interest, using cash on hand. The repayment in full of all revolving loans outstanding under the JPM Credit Agreement was a condition precedent to the entry into the DIP Facility, and the Revolver was terminated on October 8, 2020 upon entry into the DIP Revolving Facility. Existing Term Loan and Revolving Credit Facility 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 the $ 1,740 million Term Loan B maturing on June 15, 2024 . In addition, Frontier had the $ 850 million Revolver which was repaid in full on September 17, 2020, as described herein. The maturity of the Term Loan B, if still outstanding, will be accelerated in the following circumstances: (i) if, 91 days before the maturity date of any series of Senior Notes maturing in 2020, 2023 and 2024, more than $ 500 million in principal amount remains outstanding on such series; or (ii) if, 91 days before the maturity date of the first series of Senior Notes maturing in 2021 or 2022, more than $ 500 million in principal amount remains outstanding, in the aggregate, on the two series of Senior Notes maturing in such year. As of September 30, 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 under the JPM Credit Agreement is based on margins over the Base Rate (as defined in the JPM Credit Agreement) or over LIBOR, at the election of Frontier. Interest rate margins on the Term Loan B are 2.75 % for Base Rate borrowings and 3.75 % for LIBOR borrowings. The security package under the JPM Credit Agreement includes pledges of the equity interests in certain Frontier subsidiaries and guarantees by certain Frontier subsidiaries. On September 17, 2020, Frontier repaid the $ 749 million of outstanding principal under the Revolver, plus accrued interest, as described above under “New Debt Reductions.” and the Revolver was terminated on October 8, 2020 upon entry into the DIP Revolving Facility. 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 “Existing Debt Issuances and 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 “Existing Debt Issuances and Reductions.” Existing Debt Issuances and Reductions For the nine months ended September 30, 2020, Frontier retired $ 754 million principal amount of senior secured debt. For the nine months ended September 30, 2019 , Frontier retired $ 348 million principal amount of 7.125 % senior unsecured notes due 2019 and $ 2,130 million of secured debt. On March 15, 2019, Frontier completed a private offering of $ 1,650 million aggregate principal amount of the Original First Lien Notes. The Original First Lien Notes were repaid in full on October 8, 2020 with proceeds from the offering of the New First Lien Notes and the DIP Term Loan Facility and cash on hand. Additionally, on March 15, 2019, Frontier used the proceeds from the offering of the Original First Lien Notes, together with cash on hand, to (i) repay in full the outstanding borrowings under the senior secured Term Loan A facility under the JPM Credit Agreement, which otherwise would have matured in March 2021 , (ii) repay in full the outstanding borrowings under the 2016 CoBank Credit Agreement, which otherwise would have matured in October 2021 , and (iii) pay related interest, fees and expenses. During 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 | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring Costs And Other Charges [Abstract] | |
Restructuring Costs And Other Charges | (11) Restructuring Costs and Other Charges: As of September 30, 2020, restructuring related liabilities of $ 3 million pertaining to employee separation charges are included in “Other current liabilities” in our consolidated balance sheet. During the three-month period ended September 30, 2020, we incurred $ 3 million in expenses consisting of severance and employee costs resulting from workforce reductions. During the nine-month period ended September 30, 2020, we incurred $ 87 million in expenses consisting of $ 8 million directly associated with transformation initiatives, $ 7 million of severance and employee costs resulting from workforce reductions, and $ 72 million of consulting and advisory costs related to our balance sheet restructuring activities through the Petition Date. Effective with the Petition date, these other charges consisting of consulting and advisory costs incurred are recorded in Reorganization items, net in the consolidated statement of operations. During the three and nine months ended September 30, 2019, we incurred $ 27 million and $ 86 million, respectively, in expenses consisting of $ 9 million and $ 38 million, respectively, directly associated with transformation initiatives and $ 18 million and $ 48 million, respectively, of severance and employee costs resulting from workforce reductions. The following is a summary of the changes in the liabilities established for restructuring and other related programs: ($ in millions) Balance at January 1, 2020 $ 15 Severance expense 7 Transformation costs 8 Other costs 72 Cash payments during the period ( 99 ) Balance at September 30, 2020 $ 3 |
Investment And Other Income (Lo
Investment And Other Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Investment And Other Income (Loss) [Abstract] | |
Investment And Other Income (Loss) | (12) Investment and Other Income (Loss): The following is a summary of the components of Investment and Other Income (loss): For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2020 2019 2020 2019 Interest and dividend income $ - $ 2 $ 4 $ 6 Pension and OPEB costs ( 16 ) ( 12 ) ( 35 ) ( 34 ) All other, net 2 - 2 - Total investment and other loss, net $ ( 14 ) $ ( 10 ) $ ( 29 ) $ ( 28 ) Pension and OPEB costs consist of interest costs, expected return on plan assets, amortization of prior service costs (credit) and amortization of unrecognized (gain) loss. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | (13) Income Taxes : The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rate: For the three months ended For the nine months ended September 30, September 30, 2020 2019 2020 2019 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income tax provisions, net of federal income tax expense (benefit) ( 792.5 ) ( 0.7 ) 11.5 1.3 Changes in certain deferred tax balances 1,317.2 ( 0.6 ) ( 13.9 ) ( 1.8 ) Interest expense deduction ( 1,592.1 ) - 22.6 - Restructuring cost 694.1 - ( 10.3 ) - Goodwill impairment - ( 15.9 ) - ( 10.7 ) Loss on disposal of Northwest Operations - 1.8 ( 8.1 ) ( 1.2 ) Tax reserve adjustment - ( 0.1 ) ( 0.7 ) - Shared-based payments - - ( 0.3 ) ( 0.1 ) Federal research and development tax credit - 0.3 ( 0.5 ) - All other, net 16.2 ( 0.2 ) ( 0.7 ) - Effective tax rate ( 336.1 ) % 5.6 % 20.6 % 8.5 % Under ASC 740 – 270, income tax expense for interim periods is based on an annual effective tax rate for the full year with the exclusion of the discrete items. However, in a period when the Company is expecting marginal ordinary income (or loss) and relatively significant permanent differences, the actual effective tax rate for the year-to-date period may be used as an exception. The actual year-to date effective tax rate method is used by the Company in Q3 2020. 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 September 30, 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 second quarter of 2020, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $ 99 million ($ 93 million net of federal benefit) has been recorded for the nine months ended September 30, 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 September 30, 2020, Frontier had approximately $ 1.8 billion of federal NOLs, which for U.S. federal income tax purposes can be used to offset future taxable income. In connection with the sale of the Northwest Operations, Frontier utilized NOLs of approximately $ 848 million during the nine months ended September 30, 2020. 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 Earnings (Loss) Per Share
Net Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Earnings (Loss) Per Share [Abstract] | |
Net Earnings (Loss) Per Share | (14) Net Earnings (Loss) Per Share : The reconciliation of the net earnings (loss) per share calculation is as follows : For the three months ended For the nine months ended September 30, September 30, ( $ in millions and shares in thousands, except per share amounts ) 2020 2019 2020 2019 Net income (loss) used for basic and diluted earnings (loss) per share: Total basic net income (loss) attributable to Frontier common shareholders $ 15 $ ( 345 ) $ ( 352 ) $ ( 5,749 ) Effect of loss related to dilutive stock units - - - - Total diluted net income (loss) attributable to Frontier common shareholders $ 15 $ ( 345 ) $ ( 352 ) $ ( 5,749 ) Basic earnings (loss) per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 104,919 105,372 104,989 105,375 Less: Weighted average unvested restricted stock awards ( 393 ) ( 1,237 ) ( 529 ) ( 1,344 ) Total weighted average shares outstanding - basic 104,526 104,135 104,460 104,031 Basic net earnings (loss) per share attributable to Frontier common shareholders $ 0.14 $ ( 3.31 ) $ ( 3.37 ) $ ( 55.26 ) Diluted earnings (loss) per share: Total weighted average shares outstanding - basic 104,526 104,135 104,460 104,031 Effect of dilutive stock units 340 - - - Total weighted average shares outstanding - diluted 104,866 104,135 104,460 104,031 Diluted net earnings (loss) per share attributable to Frontier common shareholders $ 0.14 $ ( 3.31 ) $ ( 3.37 ) $ ( 55.26 ) In calculating diluted net earnings (loss) per common share for the nine months ended September 30, 2020 and the three and nine months ended September 30, 2019, the effect of all common stock equivalents is excluded from the computation as the effect would be antidilutive. Stock Options For the three and nine months ended September 30, 2020 there were no outstanding stock options. As of September 30, 2019, previously granted options to purchase 1,334 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. These options expired on July 6, 2020. Stock Units At each of September 30, 2020 and September 30, 2019, we had 339,544 stock units 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 nine months ended September 30, 2020 and the three and nine months ended September 30, 2019 because their inclusion would have an antidilutive effect. Compensation costs associated with the issuance of stock units were less than $ 1 million for each of the nine months ended September 30, 2020 and 2019, respectively. As of June 2019, no further stock units have been issued to Non-Employee Directors. |
Stock Plans
Stock Plans | 9 Months Ended |
Sep. 30, 2020 | |
Stock Plans [Abstract] | |
Stock Plans | (15) Stock Plans : At September 30, 2020, we have four stock-based compensation plans under which grants were made and awards remained outstanding. No further awards may be granted under three of the plans: the 2013 Equity Incentive Plan (the 2013 EIP), the Deferred Fee Plan and the Directors’ Equity Plan. At September 30, 2020, there were approximately 5,667,000 shares authorized for grant and approximately 3,632,000 shares available for grant under the 2017 Equity Incentive Plan (the 2017 EIP, together with the 2013 EIP, 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 nine months ended September 30, 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. We recognized net compensation expense, reflected in “Selling, general and administrative expenses,” of less than $ 1 million for the nine months ended September 30, 2020 and $ 3 million for the nine months ended September 30, 2019. Restricted Stock The following summary presents information regarding unvested restricted stock with regard to restricted stock granted under 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 ( 209 ) $ 7.79 Balance at September 30, 2020 304 $ 6.78 $ - For purposes of determining compensation expense, the fair value of each restricted stock grant is estimated based on the closing price of a share of our common stock on the date of the grant. Total remaining unrecognized compensation cost associated with unvested restricted stock awards that is deferred at September 30, 2020 was $ 1 million, and the weighted average vesting period over which this cost is expected to be recognized is less than 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 $ 3 million and $ 7 million for the nine month period ended September 30, 2020 and 2019, respectively, has been recorded in connection with these grants . |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (16) Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting 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, and changes 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 ( 389 ) ( 16 ) ( 405 ) Amounts reclassified from accumulated other comprehensive loss to net loss 233 ( 10 ) 223 Net current-period other comprehensive income (loss) ( 156 ) ( 26 ) ( 182 ) Balance at September 30, 2020 (1) $ ( 840 ) $ 8 $ ( 832 ) ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2019 (1) $ ( 489 ) $ 26 $ ( 463 ) Other comprehensive income (loss) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss to net loss 31 ( 6 ) 25 Net current-period other comprehensive income (loss) 31 ( 6 ) 25 Impact of adoption of ASU 2018-02 ( 83 ) 4 ( 79 ) Balance at September 30, 2019 (1) $ ( 541 ) $ 24 $ ( 517 ) (1) Pension and OPEB amounts are net of tax of $ 204 million and $ 250 million as of January 1, 2020 and 2019, respectively and $ 255 million and $ 163 million as of September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020, Frontier recorded aggregate pension settlement charges of $ 159 million related to lump sum pension settlement payments to terminated or retired individuals and completed its sale of the Northwest Operations. In accordance with ASC 715, Compensation - Retirement Benefits (ASC 715) , Frontier remeasured its pension plan during the nine months ended September 30, 2020. These remeasurements resulted in an increase in our pension liabilities and a remeasurement charge to Other comprehensive income (loss) of $ 516 million for the nine months ended September 30, 2020. Refer to Note 17 for additional disclosures related to the pension settlement and other items related to Defined Benefit Plans. The significant items reclassified from each component of accumulated other comprehensive loss are as follows: Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended For the nine months ended the Statement Where Details about Accumulated Other September 30, September 30, Net Income (Loss) Comprehensive Loss Components 2020 2019 2020 2019 is Presented Amortization of Pension Cost Items (2) Actuarial gains (losses) $ ( 29 ) $ ( 14 ) $ ( 76 ) $ ( 42 ) One-time loss on disposal - - ( 61 ) - Pension settlement costs - - ( 159 ) - ( 29 ) ( 14 ) ( 296 ) ( 42 ) Income (Loss) before income taxes Tax impact 4 4 63 11 Income tax benefit $ ( 25 ) $ ( 10 ) $ ( 233 ) $ ( 31 ) Net income (loss) Amortization of OPEB Cost Items (2) Prior-service costs $ 8 $ 3 $ 24 $ 7 Actuarial gains (losses) ( 1 ) ( 1 ) ( 4 ) 1 One-time loss on disposal - - ( 7 ) - 7 2 13 8 Income (Loss) before income taxes Tax impact ( 2 ) - ( 3 ) ( 2 ) Income tax benefit $ 5 $ 2 $ 10 $ 6 Net income (loss) (1) Amounts in parentheses indicate losses. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 17 - Retirement Plans for additional details) . |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Plans [Abstract] | |
Retirement Plans | (17) Retirement Plans : The following tables provide the components of total pension and postretirement benefit cost : Pension Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2020 2019 2020 2019 Components of total pension benefit cost Service cost $ 24 $ 21 $ 73 $ 63 Interest cost on projected benefit obligation 26 33 84 98 Expected return on plan assets ( 40 ) ( 43 ) ( 129 ) ( 129 ) Amortization of unrecognized loss 29 14 76 42 Net periodic pension benefit cost 39 25 104 74 Pension settlement costs - - 159 - Gain on disposal, net - - ( 50 ) - Total pension benefit cost $ 39 $ 25 $ 213 $ 74 Postretirement Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2020 2019 2020 2019 Components of net periodic postretirement benefit cost Service cost $ 5 $ 4 $ 15 $ 14 Interest cost on projected benefit obligation 8 10 24 31 Amortization of prior service cost (credit) ( 8 ) ( 3 ) ( 24 ) ( 7 ) Amortization of unrecognized (gain) loss 1 1 4 ( 1 ) Net periodic postretirement benefit cost 6 12 19 37 Gain on disposal, net - - ( 24 ) - Total periodic postretirement benefit cost $ 6 $ 12 $ ( 5 ) $ 37 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. Our net pension plan liability is comprised of the Projected Benefit Obligation (PBO) offset by pension plan assets. The value of our pension plan assets decreased $ 431 million from $ 2,730 million at December 31, 2019 to $ 2,299 million at September 30, 2020. This decrease primarily resulted from benefit payments to participants of $ 520 million and distributions associated with the sale of the Northwest Operations of $ 58 million, partially offset by increases for contributions of $ 37 million and investment returns of $ 110 million, net of expenses. Despite $ 578 million in distributions, the PBO component only decreased $ 55 million from $ 3,726 million at December 31, 2019 to $ 3,671 million at September 30, 2020. This resulted primarily because of a decrease in the discount rate assumption from 3.4 % at December 31, 2019 to 2.7 % at September 30, 2020, as well as decreases to the interest rates used for lump sum payments. 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 nine months ended September 30, 2020, lump sum pension settlement payments to terminated or retired individuals amounted to $ 465 million, which exceeded the settlement threshold of $ 211 million, and as a result, Frontier recognized non-cash settlement charges totaling $ 159 million during the nine months ended September 30, 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 offset to accumulated other comprehensive loss in stockholders’ equity. As a result of the recognition of the settlement charges in the first nine months of 2020, as required under US GAAP, the net pension plan liability was remeasured and recorded as of September 30, 2020 to be $ 1,372 million, as compared to the $ 996 million measured and recorded at December 31, 2019, or an increase of $ 376 million. This increase in the net pension liability during the nine months ended September 30, 2020 is comprised of a $ 522 million increase related to the six months ended June 30, 2020 and a $ 146 million decrease related to the three months ended September 30, 2020, with a corresponding decrease to accumulated other comprehensive income, net of tax. During the first nine months of both 2020 and 2019, we capitalized $ 18 million of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. Required pension plan contributions for the fiscal year 2020 are estimated to be $ 184 million, of which $ 37 million was contributed to the Plan during the first nine 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 $ 147 million, until January 1, 2021 as permitted by the CARES Act. Further, Frontier has applied for a waiver of the minimum funding standard under Section 412(c) of the Internal Revenue Code and Section 302(c) of the Employee Retirement Income Security Act of 1974. This would spread the 2020 plan year contribution, determined as of January 1, 2020 (approximately $ 173 million in total), over the five subsequent plan years. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (18) Commitments and Contingencies : Although from time to time we make short-term purchasing commitments to vendors with respect to capital expenditures, we generally do not enter into firm, written contracts for such activities. Frontier accepted the FCC’s CAF Phase II offer in 25 states, which provides $ 313 million in annual support through 2020 (since extended to 2021) in return for the Company’s commitment to make broadband available to households within Frontier’s footprint. On January 30, 2020, the FCC adopted an order establishing the Rural Digital Opportunity Fund (RDOF) program. With this order, the FCC plans to hold two auctions totaling $ 20.4 billion of support over ten years . In the first auction (RDOF Phase I), the FCC plans to offer up to $ 16 billion in support over ten years ($ 1.6 billion annually) for an estimated 6 million locations that lack access to speeds of at least 25/3 Mbps based on the FCC’s current maps. After the FCC updates its maps with more granular broadband availability information, the FCC plans to hold a second auction (RDOF Phase II) for any remaining locations with the remaining funding, at least $ 4.4 billion. Frontier timely filed an application to participate in the RDOF Phase I auction, which is scheduled to commence on October 29, 2020. Until after the post-auction deadline for winning bidders in the RDOF Phase 1 auction has passed, the FCC quiet period rules will apply. Recognizing that RDOF support will not be made available before the end of the sixth year of CAF Phase II support (i.e., December 31, 2020), the FCC’s RDOF order explains that CAF II recipients may elect to receive a seventh year of CAF Phase II support through December 31, 2021, whether or not they participate, or are successful in, an RDOF auction. Frontier timely elected to receive a seventh year of model-based support in 25 states. As such, absent a change in FCC rules, Frontier will continue to receive annual CAF Phase II support in these 25 states until December 31, 2021. Implementation of the RDOF could result in a material change in the level of 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. On July 12, 2019, the FCC released an order addressing the matters remanded by the Court of Appeals. 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 (the Securities Act), 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 appealed and the case was stayed by the Second Circuit Court of Appeals. 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. As part of the sale of the Northwest Operations, Frontier indemnified the purchaser for customary post-closing matters, including, among other things, breaches of certain covenants, agreements and warranties, changes to final closing statements and working capital, employee liabilities and other obligations included in the purchase agreement. While Frontier intends to comply with its obligations under the purchase agreement, we could be obligated to make payments pursuant to these provisions in the future. 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. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 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. 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 income (loss) and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. For our interim financial statements as of and for the period ended September 30, 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 Frontier’s ability to continue as a going concern. As reflected in our consolidated financial statements, the Company had unrestricted cash and cash equivalents of $ 1,767 million and an accumulated deficit of $ 8,925 million as of September 30, 2020. The Company also had operating income of $ 682 million and a net loss of $ 352 million for the nine months ended September 30, 2020. On April 14, 2020, Frontier Communications Corporation and its subsidiaries (collectively , the Company Parties or the Debtors and, as they may be reorganized pursuant to the Plan, the Reorganized Company Parties or the Reorganized Debtors) e ntered 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 that leaves unimpaired all general unsecured creditors and holders of secured debt and subsidiary debt. Under the Restructuring Support Agreement, the Consenting Noteholders 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 title 11 of the United States 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 continues 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). On May 15, 2020, the Company Parties filed a proposed Joint Plan of Reorganization and related Disclosure Statement, each of which were amended on June 26, 2020, June 29, 2020 and June 30, 2020. On May 15, 2020, the Debtors also filed a proposed order approving the Disclosure Statement and various plan solicitation materials, including the solicitation and voting procedures, which was revised on June 29, 2020 (including modifications to some of the exhibits). On June 30, 2020, the Bankruptcy Court entered the modified order approving the adequacy of the Disclosure Statement and the solicitation and notice procedures and the forms of voting ballots and notices in connection therewith. The order established June 29, 2020 as the voting record date, July 2, 2020 as the solicitation launch date and July 31, 2020 as the voting deadline. On August 21, 2020, the Company Parties filed the Fifth Amended Joint Plan of Reorganization of Frontier Communications Corporation and Its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (the Plan) with the Bankruptcy Court. On August 27, 2020, the Bankruptcy Court entered the Order Confirming the Fifth Amended Joint Plan of Reorganization of Frontier Communications Corporation and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (the Confirmation Order), which approved and confirmed the Plan. The effective date of the Plan will occur once all conditions precedent to the Plan have been satisfied (the Effective Date). 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 successfully consummate the Plan and emerge from the Chapter 11 Cases, 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 Chapter 11 Cases and the Plan, refer to Note 3. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our obligations under the JPM Credit Agreement (as defined herein), the Company’s 8.000 % first lien secured notes due 2027 (the Original First Lien Notes) , the Company’s 8.500 % second lien secured notes due April 1, 2026 (the Second Lien Notes) , our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. We have reclassified all debt obligations to “Long term debt due within one year” or “Liabilities Subject to Compromise”, based on the event of default or reinstatement provisions of each security in the Restructuring Support Agreement, on our consolidated balance sheet as of September 30, 2020. O n October 8, 2020, the Company issued $ 1,150 million aggregate principal amount of 5.875 % First Lien Secured Notes due 2027 (the New First Lien Notes), entered into a $ 625 million DIP revolving facility (the DIP Revolving Facility) and a $ 500 million DIP term loan facility (the DIP Term Loan Facility). The Company used the proceeds from the offering of the New First Lien Notes, together with the proceeds of the DIP Term Loan Facility and cash on hand, to (i) repay in full the Company’s Original First Lien Notes and (ii) pay related interest, fees and expenses. For additional discussion related to the impact of the Chapter 11 Cases on our debt obligations, refer to Note 10. 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 half of 2020, governments from around the world, including the United States federal government as well as state and local governments 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 Federal Communications Commission (FCC) issued the Keep Americans Connected Pledge on March 11, 2020, which provided 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, some of the states we operate in have issued executive orders as a result of COVID-19 that further impact our business, including prohibiting the disconnection of services for customers for the length of the state of emergency. While the initial 60-day period of the Keep Americans Connected Pledge has expired, state and federal governments continue to ask companies to aid in pandemic response. While certain customers have taken advantage of our COVID-19 related relief programs, as of September 30, 2020, very few had past due balances beyond the point of normal disconnection. In addition to committing to the Keep Americans Connected Pledge, Frontier’s response to COVID-19 has included several operational safety precautions such as limiting our product offerings in certain markets for certain periods, including not allowing our field service employees to enter a customer’s home for a period of time, a limitation which is no longer in effect. We are continuing to require personal protective equipment on any employees entering a customer location. The percentage of Frontier’s employees who have reported testing positive for COVID-19 is small and continues to track below the percentage of reported cases both nationally and in those states in which Frontier has a significant number of employees. Through September 30, 2020, we had not experienced any significant disruptions in our supply chain; however, some of our business partners, particularly those vendors operating outside of the United States, have been more greatly impacted which has affected our service levels and distribution of work. As the COVID-19 pandemic continues, certain states are currently considering legislation or other regulations to adopt additional protections for workers impacted by COVID-19. To date, we have not experienced significant disruptions in our workforce due to COVID-19 related absences or legislative or regulatory changes. 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 full impact of these changes and potential changes on the Company are unknown at this time. While overall the operational and financial impacts to Frontier of the COVID-19 pandemic for the three and nine months ended September 30, 2020 were not significant, we continue to closely monitor the ongoing impact to our employees, our customers, our business and our results of operations. We have experienced a slowdown in service activations and an increase in deactivations for our SMB customers; to date, these negative impacts have been partially offset by higher residential activations and lower churn. We also continue to closely track our customers’ payment activity as well as external factors, including the expiration of federal wage subsidies for individuals and small businesses which could materially impact payment trends. With more people working from home, we have experienced higher demands on our network and higher sales activity for our residential broadband service offering. This sustained increase in network demand 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. These potential changes, among others, could have a material financial impact to Frontier . |
Debtor-In-Possession | d) Debtor-in-Possession: In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to certain motions and applications intended to limit the disruption of the bankruptcy proceedings on our operations (the First Day Motions) and other motions filed with the Bankruptcy Court, the Bankruptcy Court has authorized us to conduct our business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing us to obtain DIP financing, pay employee wages and benefits, settle certain de minimis disputes and pay vendors and suppliers in the ordinary course for all goods and services. |
Revenue Recognition | e) 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 $ 51 million and $ 60 million, and $ 142 million and $ 162 million for the three and nine months ended September 30, 2020 and 2019, respectively, and video franchise fees, which amounted to $ 7 million and $ 10 million, and $ 23 million and $ 31 million for the three and nine months ended September 30, 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 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 CAF Phase II subsidies into revenue on a straight-line basis over the seven year funding term. |
Cash Equivalents | f) Cash Equivalents : We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $ 58 million and $ 50 million is included in “Other assets” on our consolidated balance sheet as of September 30, 2020 and December 31, 2019, respectively. These amounts represent funds held as collateral by a bank against letters of credit issued predominately to insurance carriers and, beginning in the second quarter of 2020, funds held in an interest-bearing account as adequate assurances to utility providers established in accordance with First Day Motions filed by Frontier. |
Definite and Indefinite Lived Intangible Assets | g) Definite and Indefinite Lived Intangible Assets: Intangible assets arising from business combinations, such as customer lists, tradenames, and royalty agreements, are initially recorded at estimated fair value. 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 st to assess whether any potential impairment exists and whether factors exist that would necessitate a change in useful life and a different amortization period. |
Lease Accounting | h) 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 | i) 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 the sale of its operations and associated assets in Washington, Oregon, Idaho, and Montana (Northwest Operations or Northwest Ops). As of December 31, 2019, the assets and liabilities of the Northwest Operations were classified as held for sale on our consolidated balance sheets, and t he amounts and information of the Company in the footnotes as they are presented do not include assets and liabilities that have been reclassified, refer to Note 8 . |
Chapter 11 Filing And Other R_2
Chapter 11 Filing And Other Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Chapter 11 Filing And Other Related Matters [Abstract] | |
Schedule Of Liabilities Subject To Compromise | ($ in millions) September 30, 2020 Accounts payable $ 53 Other current liabilities 88 Accounts payable, and other current liabilities 141 Debt subject to compromise 10,949 Accrued interest on debt subject to compromise 497 Long-term debt and accrued interest 11,446 Liabilities subject to compromise $ 11,587 |
Schedule Of Reorganization Items | For the three months ended For the nine months ended ($ in millions) September 30, 2020 September 30, 2020 Write-off of debt issuance costs and original issue net discount on debt subject to compromise $ - $ 85 Debtor-in-possession financing costs - 19 Secured Creditor Settlement 58 58 Professional fees and other bankruptcy related costs 73 111 Reorganization items, net $ 131 $ 273 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Data and Internet services $ 838 $ 928 $ 2,644 $ 2,858 Voice services 500 621 1,595 1,900 Video services 186 244 608 772 Other 103 113 328 357 Revenue from contracts with customers (1) 1,627 1,906 5,175 5,887 Subsidy and other revenue (2) 99 91 285 278 Total revenue $ 1,726 $ 1,997 $ 5,460 $ 6,165 For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Consumer $ 859 $ 1,024 $ 2,729 $ 3,151 Commercial 768 882 2,446 2,736 Revenue from contracts with customers (1) 1,627 1,906 5,175 5,887 Subsidy and other revenue (2) 99 91 285 278 Total revenue $ 1,726 $ 1,997 $ 5,460 $ 6,165 (1) Includes approximately $ 16 million and $ 17 million, and $ 50 million and $ 52 million, of lease revenue for the three and nine months ended September 30, 2020 and 2019, respectively. (2) Includes $ 15 million and $ 25 million in transition services provided to the purchaser in connection with the divestiture of the Northwest Operations for the three and nine months ended September 30, 2020. |
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 ( 27 ) - ( 47 ) ( 10 ) Cash received, excluding amounts recognized as revenue - - 64 9 Credits granted, excluding amounts recognized as revenue 3 - - - Reclassified between current and concurrent - - 1 ( 1 ) Balance at September 30, 2020 $ 13 $ 8 $ 59 $ 19 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 ( 29 ) ( 5 ) ( 56 ) ( 14 ) Cash received, excluding amounts recognized as revenue - - 58 9 Credits granted, excluding amounts recognized as revenue 23 1 - - Reclassified between current and concurrent 5 ( 5 ) ( 2 ) 2 Reclassified to held for sale ( 3 ) ( 1 ) ( 5 ) ( 1 ) Balance at September 30, 2019 $ 40 $ 15 $ 44 $ 18 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2020 (remaining three months) $ 547 2021 1,283 2022 594 2023 242 2024 110 Thereafter 206 Total $ 2,982 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) September 30, 2020 December 31, 2019 Retail and wholesale $ 619 $ 678 Other 76 71 Less: Allowance for doubtful accounts ( 133 ) ( 120 ) Accounts receivable, net $ 562 $ 629 |
Allowance For Doubtful Accounts | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Bad debt expense $ 16 $ 16 $ 40 $ 48 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) September 30, 2020 December 31, 2019 Property, plant and equipment $ 27,355 $ 26,552 Less: Accumulated depreciation ( 14,497 ) ( 13,589 ) Property, plant and equipment, net $ 12,858 $ 12,963 (1) (1) Excludes $ 1,049 million classified as Held for Sale as of December 31, 2019. |
Schedule Of Depreciation Expense | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Depreciation expense $ 311 $ 321 $ 941 $ 1,016 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Other Intangibles [Abstract] | |
Components Of Other Intangibles | September 30, 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 $ ( 3,704 ) $ 628 $ 4,332 $ ( 3,452 ) $ 880 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 65 ) 7 72 ( 54 ) 18 Total other intangibles $ 4,526 $ ( 3,769 ) $ 757 $ 4,526 $ ( 3,506 ) $ 1,020 |
Amortization Expense | For the three months ended For the nine months ended September 30, September 30, ($ in millions) 2020 2019 2020 2019 Amortization expense $ 81 $ 101 $ 263 $ 344 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | September 30, 2020 December 31, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 16,762 $ 10,539 $ 17,516 $ 12,026 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | For the nine months ended September 30, 2020 Principal Interest Rate at January 1, Payments September 30, September 30, ($ in millions) 2020 and Retirements New Borrowings 2020 2020* Secured debt issued by Frontier $ 5,711 $ ( 754 ) $ - $ 4,957 7.77 % Unsecured debt issued by Frontier 10,949 - - 10,949 9.20 % Secured debt issued by subsidiaries 106 - - 106 8.37 % Unsecured debt issued by subsidiaries 750 - - 750 6.90 % Debt prior to reclassification to liabilities subject to compromise $ 17,516 $ ( 754 ) $ - $ 16,762 8.67 % Less: Debt Issuance Costs ( 168 ) ( 65 ) Less: Debt Discount ( 46 ) ( 47 ) Debt, less unamortized debt issuance costs and discounts 17,302 16,650 Less: Current Portion ( 994 ) ( 5,701 ) Less: Debt subject to compromise - ( 10,949 ) Total Long-term debt $ 16,308 $ - * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at September 30, 2020 represent a weighted average of multiple issuances. |
Senior Unsecured Debt | September 30, 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 4.760 % (Variable) Term loan due 6/15/2024 (2) 1,694 6.000 % (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 % Secured debt issued by Frontier 4,957 5,711 Unsecured debt issued by Frontier 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 % 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 % 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 % Unsecured debt issued by subsidiaries 750 750 Debt prior to reclassification to liabilities subject to compromise 16,762 8.699 % (3) 17,516 8.486 % (3) Less: debt subject to compromise ( 10,949 ) - Total debt $ 5,813 $ 17,516 (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 . |
Restructuring Costs And Other_2
Restructuring Costs And Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring Costs And Other Charges [Abstract] | |
Restructuring Reserve Rollforward | ($ in millions) Balance at January 1, 2020 $ 15 Severance expense 7 Transformation costs 8 Other costs 72 Cash payments during the period ( 99 ) Balance at September 30, 2020 $ 3 |
Investment And Other Income (_2
Investment And Other Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment And Other Income (Loss) [Abstract] | |
Components Of Investment And Other Income | For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2020 2019 2020 2019 Interest and dividend income $ - $ 2 $ 4 $ 6 Pension and OPEB costs ( 16 ) ( 12 ) ( 35 ) ( 34 ) All other, net 2 - 2 - Total investment and other loss, net $ ( 14 ) $ ( 10 ) $ ( 29 ) $ ( 28 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended For the nine months ended September 30, September 30, 2020 2019 2020 2019 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income tax provisions, net of federal income tax expense (benefit) ( 792.5 ) ( 0.7 ) 11.5 1.3 Changes in certain deferred tax balances 1,317.2 ( 0.6 ) ( 13.9 ) ( 1.8 ) Interest expense deduction ( 1,592.1 ) - 22.6 - Restructuring cost 694.1 - ( 10.3 ) - Goodwill impairment - ( 15.9 ) - ( 10.7 ) Loss on disposal of Northwest Operations - 1.8 ( 8.1 ) ( 1.2 ) Tax reserve adjustment - ( 0.1 ) ( 0.7 ) - Shared-based payments - - ( 0.3 ) ( 0.1 ) Federal research and development tax credit - 0.3 ( 0.5 ) - All other, net 16.2 ( 0.2 ) ( 0.7 ) - Effective tax rate ( 336.1 ) % 5.6 % 20.6 % 8.5 % |
Net Earnings (Loss) Per Share (
Net Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Earnings (Loss) Per Share [Abstract] | |
Calculation Of Net Earnings (Loss) Per Common Share | For the three months ended For the nine months ended September 30, September 30, ( $ in millions and shares in thousands, except per share amounts ) 2020 2019 2020 2019 Net income (loss) used for basic and diluted earnings (loss) per share: Total basic net income (loss) attributable to Frontier common shareholders $ 15 $ ( 345 ) $ ( 352 ) $ ( 5,749 ) Effect of loss related to dilutive stock units - - - - Total diluted net income (loss) attributable to Frontier common shareholders $ 15 $ ( 345 ) $ ( 352 ) $ ( 5,749 ) Basic earnings (loss) per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 104,919 105,372 104,989 105,375 Less: Weighted average unvested restricted stock awards ( 393 ) ( 1,237 ) ( 529 ) ( 1,344 ) Total weighted average shares outstanding - basic 104,526 104,135 104,460 104,031 Basic net earnings (loss) per share attributable to Frontier common shareholders $ 0.14 $ ( 3.31 ) $ ( 3.37 ) $ ( 55.26 ) Diluted earnings (loss) per share: Total weighted average shares outstanding - basic 104,526 104,135 104,460 104,031 Effect of dilutive stock units 340 - - - Total weighted average shares outstanding - diluted 104,866 104,135 104,460 104,031 Diluted net earnings (loss) per share attributable to Frontier common shareholders $ 0.14 $ ( 3.31 ) $ ( 3.37 ) $ ( 55.26 ) |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Sep. 30, 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 ( 209 ) $ 7.79 Balance at September 30, 2020 304 $ 6.78 $ - |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 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 ( 389 ) ( 16 ) ( 405 ) Amounts reclassified from accumulated other comprehensive loss to net loss 233 ( 10 ) 223 Net current-period other comprehensive income (loss) ( 156 ) ( 26 ) ( 182 ) Balance at September 30, 2020 (1) $ ( 840 ) $ 8 $ ( 832 ) ($ in millions) Pension Costs OPEB Costs Total Balance at January 1, 2019 (1) $ ( 489 ) $ 26 $ ( 463 ) Other comprehensive income (loss) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss to net loss 31 ( 6 ) 25 Net current-period other comprehensive income (loss) 31 ( 6 ) 25 Impact of adoption of ASU 2018-02 ( 83 ) 4 ( 79 ) Balance at September 30, 2019 (1) $ ( 541 ) $ 24 $ ( 517 ) (1) Pension and OPEB amounts are net of tax of $ 204 million and $ 250 million as of January 1, 2020 and 2019, respectively and $ 255 million and $ 163 million as of September 30, 2020 and 2019, respectively. |
Reclassification Out of Accumulated Other Comprehensive | Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended For the nine months ended the Statement Where Details about Accumulated Other September 30, September 30, Net Income (Loss) Comprehensive Loss Components 2020 2019 2020 2019 is Presented Amortization of Pension Cost Items (2) Actuarial gains (losses) $ ( 29 ) $ ( 14 ) $ ( 76 ) $ ( 42 ) One-time loss on disposal - - ( 61 ) - Pension settlement costs - - ( 159 ) - ( 29 ) ( 14 ) ( 296 ) ( 42 ) Income (Loss) before income taxes Tax impact 4 4 63 11 Income tax benefit $ ( 25 ) $ ( 10 ) $ ( 233 ) $ ( 31 ) Net income (loss) Amortization of OPEB Cost Items (2) Prior-service costs $ 8 $ 3 $ 24 $ 7 Actuarial gains (losses) ( 1 ) ( 1 ) ( 4 ) 1 One-time loss on disposal - - ( 7 ) - 7 2 13 8 Income (Loss) before income taxes Tax impact ( 2 ) - ( 3 ) ( 2 ) Income tax benefit $ 5 $ 2 $ 10 $ 6 Net income (loss) (1) Amounts in parentheses indicate losses. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 17 - Retirement Plans for additional details) . |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Plans [Abstract] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2020 2019 2020 2019 Components of total pension benefit cost Service cost $ 24 $ 21 $ 73 $ 63 Interest cost on projected benefit obligation 26 33 84 98 Expected return on plan assets ( 40 ) ( 43 ) ( 129 ) ( 129 ) Amortization of unrecognized loss 29 14 76 42 Net periodic pension benefit cost 39 25 104 74 Pension settlement costs - - 159 - Gain on disposal, net - - ( 50 ) - Total pension benefit cost $ 39 $ 25 $ 213 $ 74 Postretirement Benefits For the three months ended For the nine months ended September 30, September 30, ( $ in millions ) 2020 2019 2020 2019 Components of net periodic postretirement benefit cost Service cost $ 5 $ 4 $ 15 $ 14 Interest cost on projected benefit obligation 8 10 24 31 Amortization of prior service cost (credit) ( 8 ) ( 3 ) ( 24 ) ( 7 ) Amortization of unrecognized (gain) loss 1 1 4 ( 1 ) Net periodic postretirement benefit cost 6 12 19 37 Gain on disposal, net - - ( 24 ) - Total periodic postretirement benefit cost $ 6 $ 12 $ ( 5 ) $ 37 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | Oct. 08, 2020USD ($) | Aug. 13, 2020USD ($) | May 15, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Customer surcharges | $ 51 | $ 60 | $ 142 | $ 162 | ||||||||
Video franchise fees | 7 | 10 | 23 | 31 | ||||||||
Restricted cash | $ 58 | $ 58 | $ 50 | |||||||||
Expected customer life | 4 years | 4 years | ||||||||||
Funding term | 7 years | |||||||||||
Cash and cash equivalents | $ 1,767 | $ 1,767 | 760 | |||||||||
Accumulated deficit | (8,925) | (8,925) | (8,573) | |||||||||
Operating income | 270 | 26 | 682 | (5,094) | ||||||||
Net loss | 15 | $ (181) | $ (186) | $ (345) | $ (5,317) | $ (87) | $ (352) | $ (5,749) | ||||
Number of reportable segments | segment | 1 | |||||||||||
Principal Outstanding | 16,762 | $ 16,762 | 17,516 | |||||||||
Secured Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Outstanding | 4,957 | $ 4,957 | 5,711 | |||||||||
DIP Revolving Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
DIP, Maximum line of credit | $ 625 | $ 460 | ||||||||||
New First Lien Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, maturity date | Oct. 15, 2027 | |||||||||||
First Lien Notes Due 4/1/2027 [Member] | Secured Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Outstanding | $ 1,650 | $ 1,650 | $ 1,650 | |||||||||
Interest rate | 8.00% | 8.00% | 8.00% | |||||||||
Debt instrument, maturity date | Apr. 1, 2027 | |||||||||||
Second Lien Notes Due 4/1/2026 [Member] | Secured Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Outstanding | $ 1,600 | $ 1,600 | $ 1,600 | |||||||||
Interest rate | 8.50% | 8.50% | 8.50% | |||||||||
Debt instrument, maturity date | Apr. 1, 2026 | |||||||||||
Subsequent Event [Member] | DIP Revolving Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
DIP, Maximum line of credit | $ 625 | |||||||||||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
DIP, Maximum line of credit | 500 | |||||||||||
Subsequent Event [Member] | New First Lien Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Outstanding | $ 1,150 | |||||||||||
Interest rate | 5.875% | |||||||||||
Debt instrument, maturity date | Oct. 15, 2027 |
Chapter 11 Filing And Other R_3
Chapter 11 Filing And Other Related Matters (Narrative) (Details) - USD ($) | Oct. 08, 2020 | Aug. 27, 2020 | Aug. 13, 2020 | May 15, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Reorganization [Line Items] | ||||||
Takeback Debt, Principal amount | $ 750,000,000 | |||||
Principal Outstanding | $ 16,762,000,000 | $ 17,516,000,000 | ||||
JP Morgan Revolving Credit Facility 2015 [Member] | ||||||
Reorganization [Line Items] | ||||||
Maturity date | Feb. 27, 2024 | |||||
Debt instrument, face amount | $ 850,000,000 | |||||
JP Morgan Term Loan B [Member] | ||||||
Reorganization [Line Items] | ||||||
Maturity date | Jun. 15, 2024 | |||||
Debt instrument, face amount | $ 1,740,000,000 | |||||
Secured Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Principal Outstanding | 4,957,000,000 | 5,711,000,000 | ||||
Unsecured Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Principal Outstanding | 10,949,000,000 | 10,949,000,000 | ||||
Secured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Principal Outstanding | 106,000,000 | 106,000,000 | ||||
Unsecured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Principal Outstanding | 750,000,000 | $ 750,000,000 | ||||
Term Loan B [Member] | ||||||
Reorganization [Line Items] | ||||||
Payments to holders | 48,200,000 | |||||
Original First Lien Notes [Member] | ||||||
Reorganization [Line Items] | ||||||
Payments to holders | 9,300,000 | |||||
Term Loan B, Second Payment [Member] | ||||||
Reorganization [Line Items] | ||||||
Payments to holders | $ 7,500,000 | |||||
Term Loan Due 6/15/2024 [Member] | Secured Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 6.00% | 5.55% | ||||
Maturity date | Jun. 15, 2024 | |||||
Principal Outstanding | $ 1,694,000,000 | $ 1,699,000,000 | ||||
Second Lien Notes Due 4/1/2026 [Member] | Secured Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 8.50% | 8.50% | ||||
Maturity date | Apr. 1, 2026 | |||||
Principal Outstanding | $ 1,600,000,000 | $ 1,600,000,000 | ||||
DIP Revolving Facility [Member] | ||||||
Reorganization [Line Items] | ||||||
DIP, Maximum line of credit | $ 625,000,000 | $ 460,000,000 | ||||
Debenture Due 11/15/2031 [Member] | Secured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 8.50% | 8.50% | ||||
Maturity date | Nov. 15, 2031 | |||||
Principal Outstanding | $ 100,000,000 | $ 100,000,000 | ||||
Debenture Due 5/15/2027 [Member] | Unsecured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 6.75% | 6.75% | ||||
Maturity date | May 15, 2027 | |||||
Principal Outstanding | $ 200,000,000 | $ 200,000,000 | ||||
Debenture Due 2/1/2028 [Member] | Unsecured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 6.86% | 6.86% | ||||
Maturity date | Feb. 1, 2028 | |||||
Principal Outstanding | $ 300,000,000 | $ 300,000,000 | ||||
Debenture Due 2/15/2028 [Member] | Unsecured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 6.73% | 6.73% | ||||
Maturity date | Feb. 15, 2028 | |||||
Principal Outstanding | $ 200,000,000 | $ 200,000,000 | ||||
Debenture Due 10/15/2029 [Member] | Unsecured Subsidiary Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 8.40% | 8.40% | ||||
Maturity date | Oct. 15, 2029 | |||||
Principal Outstanding | $ 50,000,000 | $ 50,000,000 | ||||
New First Lien Notes [Member] | ||||||
Reorganization [Line Items] | ||||||
Maturity date | Oct. 15, 2027 | |||||
Subsequent Event [Member] | DIP Revolving Facility [Member] | ||||||
Reorganization [Line Items] | ||||||
DIP, Maximum line of credit | $ 625,000,000 | |||||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | ||||||
Reorganization [Line Items] | ||||||
DIP, Maximum line of credit | $ 500,000,000 | |||||
Subsequent Event [Member] | New First Lien Notes [Member] | ||||||
Reorganization [Line Items] | ||||||
Interest rate | 5.875% | |||||
Maturity date | Oct. 15, 2027 | |||||
Principal Outstanding | $ 1,150,000,000 | |||||
Maximum [Member] | ||||||
Reorganization [Line Items] | ||||||
Maturity period | 8 years | |||||
Maximum [Member] | Secured Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Reorganization plan, Interest rate | 2.50% | |||||
Maximum [Member] | Unsecured Debt [Member] | ||||||
Reorganization [Line Items] | ||||||
Reorganization plan, Interest rate | 3.50% | |||||
Minimum [Member] | ||||||
Reorganization [Line Items] | ||||||
Maturity period | 1 year | |||||
Percentage of debt held by the Consenting Noteholders | 50.10% |
Chapter 11 Filing And Other R_4
Chapter 11 Filing And Other Related Matters (Schedule Of Liabilities Subject To Compromise) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Chapter 11 Filing And Other Related Matters [Abstract] | |
Accounts payable | $ 53 |
Other current liabilities | 88 |
Accounts payable and other current liabilities | 141 |
Debt subject to compromise | 10,949 |
Accrued interest on debt subject to compromise | 497 |
Long-term debt and accrued interest | 11,446 |
Liabilities subject to compromise | $ 11,587 |
Chapter 11 Filing And Other R_5
Chapter 11 Filing And Other Related Matters (Schedule Of Reorganization Items) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Chapter 11 Filing And Other Related Matters [Abstract] | ||
Write-off debt issuance costs and original issue net discount on debt subject to compromise | $ 85 | |
Debtor-in-possession financing costs | 19 | |
Secured Creditor Settlement | $ 58 | 58 |
Professional fees and other bankruptcy related costs | 73 | 111 |
Reorganization items, net | $ 131 | $ 273 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 1,627 | $ 1,906 | $ 5,175 | $ 5,887 |
Subsidy and other revenue | 99 | 91 | 285 | 278 |
Total revenue | 1,726 | 1,997 | 5,460 | 6,165 |
Lease revenue | 16 | 17 | 50 | 52 |
Transition services revenue | 15 | 25 | ||
Revenue from contracts with customers, performance obligation | 2,982 | 2,982 | ||
Data And Internet Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 838 | 928 | 2,644 | 2,858 |
Voice Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 500 | 621 | 1,595 | 1,900 |
Video services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 186 | 244 | 608 | 772 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 103 | 113 | 328 | 357 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 859 | 1,024 | 2,729 | 3,151 |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 768 | $ 882 | $ 2,446 | $ 2,736 |
Revenue Recognition (Changes In
Revenue Recognition (Changes In Contract Assets And Contract Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue Recognition [Abstract] | ||
Contract current assets, Beginning balance | $ 37 | $ 44 |
Contract current assets, Revenue recognized included in opening contract balance | (27) | (29) |
Contract current assets, Credits granted, excluding amounts recognized as revenue | 3 | 23 |
Contract current assets, Reclassified between current and noncurrent | 5 | |
Contract current assets, Reclassified to held for sale | (3) | |
Contract current assets, Ending balance | 13 | 40 |
Contract noncurrent assets, Beginning balance | 8 | 25 |
Contract noncurrent assets, Revenue recognized included in opening contract balance | (5) | |
Contract noncurrent assets, Credits granted, excluding amounts recognized as revenue | 1 | |
Contract current assets, Reclassified between current and noncurrent | (5) | |
Contract noncurrent assets, Reclassified to held for sale | (1) | |
Contract current assets, Ending balance | 8 | 15 |
Contract current liabilities, Beginning balance | 41 | 49 |
Contract current liabilities, Revenue recognized included in opening contract balance | (47) | (56) |
Contract current liabilities, Cash received, excluding amounts recognized as revenue | 64 | 58 |
Contract current liabilities, Reclassified between current and noncurrent | 1 | (2) |
Contract current liabilities, Reclassified to held for sale | (5) | |
Contract current liabilities, Ending balance | 59 | 44 |
Contract noncurrent liabilities, Beginning balance | 21 | 22 |
Contract noncurrent liabilities, Revenue recognized included in opening contract balance | (10) | (14) |
Contract noncurrent liabilities, Cash received, excluding amounts recognized as revenue | 9 | 9 |
Contract noncurrent liabilities, Reclassified between current and noncurrent | (1) | 2 |
Contract noncurrent liabilities, Reclassified to held for sale | (1) | |
Contract noncurrent liabilities, Ending balance | $ 19 | $ 18 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 2,982 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from contracts with customers, performance obligation | $ 547 |
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 | $ 1,283 |
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 | $ 594 |
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 | $ 242 |
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 | $ 206 |
Performance obligation satisfaction period | 1 year |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Receivable [Abstract] | ||
Retail and wholesale | $ 619 | $ 678 |
Other | 76 | 71 |
Less: Allowance for doubtful accounts | (133) | (120) |
Accounts receivable, net | $ 562 | $ 629 |
Accounts Receivable (Allowance
Accounts Receivable (Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Receivable [Abstract] | ||||
Bad debt expense | $ 16 | $ 16 | $ 40 | $ 48 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jan. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impact of adoption of ASU 2018-02 | $ (8,925) | $ (8,573) | |
Deferred gain, Net | 11 | ||
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] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impact of adoption of ASU 2018-02 | $ 15 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant And Equipment [Abstract] | ||
Property, plant and equipment | $ 27,355 | $ 26,552 |
Less: Accumulated depreciation | (14,497) | (13,589) |
Property, plant and equipment, net | $ 12,858 | 12,963 |
Assets reclassified as held for sale | $ 1,049 |
Property, Plant And Equipment_3
Property, Plant And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 311 | $ 321 | $ 941 | $ 1,016 |
Goodwill And Other Intangible_2
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||
Impairment | $ 9,154 | $ 9,154 | ||
Goodwill | $ 658 | |||
Goodwill impairment | $ 276 | $ 5,725 | ||
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,526 | $ 4,526 |
Accumulated Amortization | (3,769) | (3,506) |
Net Carrying Amount | 757 | 1,020 |
Customer Base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,332 | 4,332 |
Accumulated Amortization | (3,704) | (3,452) |
Net Carrying Amount | 628 | 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 | (65) | (54) |
Net Carrying Amount | $ 7 | $ 18 |
Goodwill And Other Intangible_4
Goodwill And Other Intangibles (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill And Other Intangibles [Abstract] | ||||
Amortization expense | $ 81 | $ 101 | $ 263 | $ 344 |
Divestiture Of Northwest Oper_2
Divestiture Of Northwest Operations (Narrative) (Details) - USD ($) $ in Millions | May 01, 2020 | May 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Divestiture Of Northwest Operations [Abstract] | ||||||
Loss on disposal of Northwest Operations | $ 30 | $ 160 | $ 414 | |||
Net proceeds | $ 1,131 | 1,131 | ||||
Gross proceeds from divestiture | $ 1,352 | |||||
Escrow to be disbursed | 57 | |||||
Transition services revenue | $ 15 | 25 | ||||
Fair value of transition services | $ 30 | 30 | ||||
Property, plant, and equipment, Derecognized | 1,084 | |||||
Goodwill, Derecognized | 658 | |||||
Valuation allowance, Derecognized | 603 | |||||
Defined benefit pension and other postretirement benefit plan obligations, Derecognized | 142 | |||||
Out of period adjustment | $ (27) | |||||
Net assets | $ 1,132 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term debt [Abstract] | ||
Total debt | $ 10,949 | |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Total debt | 16,762 | $ 17,516 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 10,539 | $ 12,026 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Oct. 08, 2020 | Aug. 13, 2020 | May 15, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | Jul. 03, 2018 |
Debt Instrument [Line Items] | ||||||||
Payments to retire debt instruments | $ 754 | |||||||
Loss on extinguishment of debt | $ 20 | |||||||
Remaining outstanding principal | 16,762 | 17,516 | ||||||
First Lien Notes Due 4/1/2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 1,650 | |||||||
Revolver Due 2/27/2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments to retire debt instruments | $ 749 | |||||||
DIP Revolving Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP, Maximum line of credit | $ 625 | $ 460 | ||||||
DIP Revolving Facility [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP, Maximum line of credit | $ 625 | |||||||
DIP, Remaining borrowing capacity | 535 | |||||||
DIP, Letters of credit outstanding | $ 90 | |||||||
DIP Revolving Facility [Member] | Base Rate [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 2.25% | |||||||
DIP Revolving Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.25% | |||||||
DIP Term Loan Facility [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 4.75% | |||||||
DIP, Maximum line of credit | $ 500 | |||||||
DIP Term Loan Facility [Member] | Base Rate [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.75% | |||||||
DIP Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 1.00% | |||||||
New First Lien Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 15, 2027 | |||||||
New First Lien Notes [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 15, 2027 | |||||||
Interest rate | 5.875% | |||||||
Remaining outstanding principal | $ 1,150 | |||||||
Maximum percent of redeemable notes | 40.00% | |||||||
Percent of redemption price equal to principal amount | 105.875% | |||||||
Percent of purchase price of the principal amount | 101.00% | |||||||
Exit Revolving Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Days prior to maturity to meet threshold to not accelerate debt | 91 days | |||||||
Period of conversion | 3 years | |||||||
Exit Revolving Facility [Member] | Base Rate [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.00% | |||||||
Exit Revolving Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 4.00% | |||||||
Senior Unsecured Debt [Member] | Senior Note Due 3/15/2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments to retire debt instruments | $ 754 | $ 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] | ||||||||
Payments to retire debt instruments | $ 2,130 | |||||||
Remaining outstanding principal | $ 4,957 | $ 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% | ||||||
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 | 6.00% | 5.55% | ||||||
Remaining outstanding principal | $ 1,694 | $ 1,699 | ||||||
Secured Debt [Member] | Revolver Due 2/27/2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Feb. 27, 2024 | |||||||
Interest rate | 4.76% | |||||||
Remaining outstanding principal | $ 749 | $ 749 | ||||||
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 maturity of the Term Loan B, 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] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 2.75% | |||||||
JP Morgan Term Loan B and Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 3.75% | |||||||
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] | ||||||||
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 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 | |||||||
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 |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | $ 17,516 | |||
Principal Payments and Retirements | (754) | |||
Long-term debt, ending balance | 16,762 | |||
Debt prior to reclassification to liabilities subject to compromise | 16,762 | $ 16,762 | $ 17,516 | |
Less: Debt Issuance Cost | (65) | (168) | ||
Less: Debt Discount | (47) | (46) | ||
Debt, less amortized debt issuance costs and discounts | 16,650 | 17,302 | ||
Less: Current Portion | (5,701) | (994) | ||
Less: Debt subject to compromise | $ (10,949) | |||
Total Long term debt | 16,308 | |||
Interest rate | 8.67% | |||
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 5,711 | |||
Principal Payments and Retirements | $ (2,130) | |||
Long-term debt, ending balance | 4,957 | |||
Debt prior to reclassification to liabilities subject to compromise | 5,711 | $ 4,957 | 5,711 | |
Secured Debt [Member] | Parent Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 5,711 | |||
Principal Payments and Retirements | (754) | |||
Long-term debt, ending balance | 4,957 | |||
Debt prior to reclassification to liabilities subject to compromise | 4,957 | $ 4,957 | 5,711 | |
Interest rate | 7.77% | |||
Secured Debt [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 106 | |||
Long-term debt, ending balance | 106 | |||
Debt prior to reclassification to liabilities subject to compromise | 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 | |||
Debt prior to reclassification to liabilities subject to compromise | 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 | |||
Debt prior to reclassification to liabilities subject to compromise | 10,949 | $ 10,949 | 10,949 | |
Interest rate | 9.20% | |||
Unsecured Debt [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, beginning balance | 750 | |||
Long-term debt, ending balance | 750 | |||
Debt prior to reclassification to liabilities subject to compromise | $ 750 | $ 750 | $ 750 | |
Interest rate | 6.90% |
Long-Term Debt (Senior Unsecure
Long-Term Debt (Senior Unsecured Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 16,762 | $ 17,516 |
Less: Debt subject to compromise | (10,949) | |
Total debt | 5,813 | 17,516 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 4,957 | 5,711 |
Secured Debt [Member] | Revolver Due 2/27/2024 [Member] | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 749 | $ 749 |
Interest Rate | 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 | 6.00% | 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% |
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% | |
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 | $ 16,762 | $ 17,516 |
Weighted average interest rate | 8.699% | 8.486% |
Restructuring Costs And Other_3
Restructuring Costs And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Restructuring Costs And Other Charges [Abstract] | |||||
Restructuring reserve | $ 3 | $ 3 | $ 15 | ||
Restructuring costs | $ 3 | $ 27 | 87 | $ 86 | |
Transformation costs | 9 | 8 | 38 | ||
Severance expense | $ 18 | 7 | $ 48 | ||
Consulting and advisory costs | $ 72 |
Restructuring Costs And Other_4
Restructuring Costs And Other Charges (Restructuring Reserve Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | $ 15 | ||
Severance expense | $ 18 | 7 | $ 48 |
Transformation costs | $ 9 | 8 | $ 38 |
Other costs | 72 | ||
Cash payments during the period | (99) | ||
Restructuring Reserve, Ending Balance | $ 3 |
Investment And Other Income (_3
Investment And Other Income (Loss) (Components Of Investment And Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investment And Other Income (Loss) [Abstract] | ||||
Interest and dividend income | $ 2 | $ 4 | $ 6 | |
Pension and OPEB costs | $ (16) | (12) | (35) | (34) |
All other, net | 2 | 2 | ||
Total investment and other loss, net | $ (14) | $ (10) | $ (29) | $ (28) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Valuation allowance | $ 99 | |
Net of federal benefit | $ 93 | |
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 | $ 1,800 | |
Washington, Oregon, Idaho, And Montana [Member] | Internal Revenue Service (IRS) [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforward | $ 848 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes [Abstract] | ||||
Consolidated tax provision at federal statutory rate (in hundredths) | 21.00% | 21.00% | 21.00% | 21.00% |
State income tax provisions, net of federal income tax expense (benefit) | (792.50%) | (0.70%) | 11.50% | 1.30% |
Changes in certain deferred tax balances (in hundredths) | 1317.20% | (0.60%) | (13.90%) | (1.80%) |
Interest expense deduction (in hundredths) | (1592.10%) | 22.60% | ||
Restructuring cost | 694.10% | (10.30%) | ||
Goodwill impairment (in hundredths) | (15.90%) | (10.70%) | ||
Loss on disposal of Northwest Operations (in hundredths) | 1.80% | (8.10%) | (1.20%) | |
Tax reserve adjustment (in hundredths) | (0.10%) | (0.70%) | ||
Shared-based payments (in hundredths) | (0.30%) | (0.10%) | ||
Federal research and development tax credit (in hundredths) | 0.30% | (0.50%) | ||
All other, net (in hundredths) | 16.20% | (0.20%) | (0.70%) | |
Effective tax rate (in hundredths) | (336.10%) | 5.60% | 20.60% | 8.50% |
Net Earnings (Loss) Per Share_2
Net Earnings (Loss) Per Share (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 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) | 0 | 0 | 1,334 | |
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 | 339,544 | ||
Expense recognized during the period | $ 0 | $ 0 | $ 0 |
Net Earnings (Loss) Per Share_3
Net Earnings (Loss) Per Share (Calculation Of Net Earnings (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Earnings (Loss) Per Share [Abstract] | ||||
Total basic net income (loss) attributable to Frontier common shareholders | $ 15 | $ (345) | $ (352) | $ (5,749) |
Total diluted income (loss) attributable to Frontier common shareholders | $ 15 | $ (345) | $ (352) | $ (5,749) |
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 104,919 | 105,372 | 104,989 | 105,375 |
Less: Weighted average unvested restricted stock awards (in shares) | (393) | (1,237) | (529) | (1,344) |
Total weighted average shares outstanding - basic (in shares) | 104,526 | 104,135 | 104,460 | 104,031 |
Basic net earnings (loss) per share attributable to Frontier common shareholders | $ 0.14 | $ (3.31) | $ (3.37) | $ (55.26) |
Effect of dilutive stock units (in shares) | 340 | |||
Total weighted average shares outstanding - diluted (in shares) | 104,866 | 104,135 | 104,460 | 104,031 |
Diluted net earnings (loss) per share attributable to Frontier common shareholders | $ 0.14 | $ (3.31) | $ (3.37) | $ (55.26) |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020USD ($)ShareBasedCompensationPlanshares | Sep. 30, 2019USD ($) | Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plan under which grants were made | ShareBasedCompensationPlan | 4 | ||
EIP Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for grant under the plans (in shares) | shares | 5,667,000 | ||
Shares available for grant under the plan (in shares) | shares | 3,632,000 | ||
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 | $ 3 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense recognized during the period | $ | 3 | $ 7 | |
Restricted Stock | |||
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ | $ 1 | ||
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 | 9 Months Ended |
Sep. 30, 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 | (209,000) |
Balance at end of period (in shares) | shares | 304,000 |
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 | 7.79 |
Balance at end of period (in dollars per shares) | $ / shares | $ 6.78 |
Balance at beginning of period, Aggregate fair value | $ | $ 1 |
Comprehensive Income (Loss) (Na
Comprehensive Income (Loss) (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Comprehensive Income (Loss) [Abstract] | |
Remeasurement charge | $ 516 |
Pension settlement costs, net of tax | $ 159 |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss), Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | $ (5,097) | $ (4,493) | $ (4,394) | $ (3,771) | $ 1,535 | $ (4,394) | ||||
Other comprehensive income (loss) before reclassifications | 376 | |||||||||
Net current-period other comprehensive income (loss) | 155 | (423) | 86 | 8 | 9 | $ 8 | (182) | $ 25 | ||
Impact of adoption of ASU 2018-02 | (8,925) | (8,925) | $ (8,573) | |||||||
Balance | (4,926) | (5,097) | (4,493) | (4,103) | (3,771) | 1,535 | (4,926) | (4,103) | ||
Previously Reported [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | 1,600 | 1,600 | ||||||||
Pension Benefits [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | (684) | (489) | (684) | (489) | ||||||
Other comprehensive income (loss) before reclassifications | (389) | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | 233 | 31 | ||||||||
Net current-period other comprehensive income (loss) | (156) | 31 | ||||||||
Impact of adoption of ASU 2018-02 | (83) | (83) | ||||||||
Balance | (840) | (541) | (840) | (541) | ||||||
Postretirement Costs [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | 34 | 26 | 34 | 26 | ||||||
Other comprehensive income (loss) before reclassifications | (16) | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | (10) | (6) | ||||||||
Net current-period other comprehensive income (loss) | (26) | (6) | ||||||||
Impact of adoption of ASU 2018-02 | 4 | 4 | ||||||||
Balance | 8 | 24 | 8 | 24 | ||||||
Deferred Taxes On Pension And OPEB Costs [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Deferred tax items | 255 | 163 | 255 | 163 | $ 204 | $ 250 | ||||
Accumulated Other Comprehensive Loss [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | (987) | (564) | (650) | (525) | (534) | (79) | (650) | (79) | ||
Other comprehensive income (loss) before reclassifications | (405) | |||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | 223 | 25 | ||||||||
Net current-period other comprehensive income (loss) | 155 | (423) | 86 | 8 | 9 | 8 | (182) | 25 | ||
Impact of adoption of ASU 2018-02 | (79) | (79) | ||||||||
Balance | $ (832) | $ (987) | (564) | $ (517) | $ (525) | (534) | (832) | (517) | ||
Accumulated Other Comprehensive Loss [Member] | Previously Reported [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance | $ (650) | $ (463) | $ (650) | $ (463) |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out Of Accumulated Other Comprehensive) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | $ (233) | $ (31) | ||
Postretirement Costs [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | 10 | 6 | ||
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 | $ (29) | $ (14) | (296) | (42) |
Tax impact | 4 | 4 | 63 | 11 |
Reclassifications, net of tax | (25) | (10) | (233) | (31) |
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 | (29) | (14) | (76) | (42) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Pension Benefits [Member] | One-Time Gain (Loss) On disposal [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | (61) | |||
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 | (159) | |||
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 | 7 | 2 | 13 | 8 |
Tax impact | (2) | (3) | (2) | |
Reclassifications, net of tax | 5 | 2 | 10 | 6 |
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 | 3 | 24 | 7 |
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 | $ (1) | $ (1) | (4) | $ 1 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Postretirement Costs [Member] | One-Time Gain (Loss) On disposal [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | $ (7) |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | 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 | $ 18 | $ 18 | ||
Plan contributions | 147 | |||
Plan distributions | 578 | |||
Waiver amount | 173 | |||
Pension and other postretirement benefits | 2,293 | $ 1,896 | ||
Other comprehensive income (loss) before reclassifications | 376 | |||
Pension plan liability | $ 146 | |||
Increase due to remeasurement | $ 522 | |||
Period of plan | 5 years | |||
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 465 | |||
Defined Benefit Plan, Settlements Benefit obligation threshold | 211 | |||
Estimated plan contributions | 184 | |||
Plan contributions | 37 | |||
Plan assets | 2,299 | $ 2,730 | ||
Increase (decrease) in pension assets | (431) | |||
Positive investment returns | 110 | |||
Pension settlement costs | $ 159 | |||
Discount rate - used at year end to value obligation | 2.70% | 3.40% | ||
Pension and other postretirement benefits | $ 1,372 | $ 996 | ||
Other comprehensive income (loss) before reclassifications | (389) | |||
Pension Benefits [Member] | Northwest Operations [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Positive investment returns | 58 | |||
Benefit payments | 520 | |||
Postretirement Costs [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | (16) | |||
PBO | 3,671 | $ 3,726 | ||
Increased in PBO | $ 55 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension settlement costs | $ 159 | |||
Total pension benefit cost | $ 39 | $ 25 | 213 | $ 74 |
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 24 | 21 | 73 | 63 |
Interest cost on projected benefit obligation | 26 | 33 | 84 | 98 |
Expected return on plan assets | (40) | (43) | (129) | (129) |
Amortization of unrecognized (gain) loss | 29 | 14 | 76 | 42 |
Net periodic benefit cost | 39 | 25 | 104 | 74 |
Pension settlement costs | 159 | |||
Gain on disposal, net | (50) | |||
Postretirement Costs [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 5 | 4 | 15 | 14 |
Interest cost on projected benefit obligation | 8 | 10 | 24 | 31 |
Amortization of prior service cost (credit) | (8) | (3) | (24) | (7) |
Amortization of unrecognized (gain) loss | 1 | 1 | 4 | (1) |
Gain on disposal, net | (24) | |||
Total pension benefit cost | 6 | 12 | 19 | 37 |
Total periodic postretirement benefit cost | $ 6 | $ 12 | $ (5) | $ 37 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | Jan. 30, 2020USD ($)item | Sep. 30, 2020USD ($)state |
CAF II, Remaining Properties [Member] | ||
Regulatory Commitments [Abstract] | ||
Annual support offered by the Federal Communications Commission | $ 313 | |
Number of states that accepted CAF II | state | 25 | |
RDOF Program [Member] | ||
Regulatory Commitments [Abstract] | ||
Annual support offered by the Federal Communications Commission | $ 20,400 | |
Number of auctions | item | 2 | |
Period of support | 10 years | |
RDOF Program, Phase I [Member] | ||
Regulatory Commitments [Abstract] | ||
Annual support offered by the Federal Communications Commission | $ 1,600 | |
Period of support | 10 years | |
Number of locations with at lest 25/3 Mbps | item | 6,000,000 | |
Minimum [Member] | ||
Operating Leases [Abstract] | ||
Term of lease arrangements | 1 year | |
Minimum [Member] | RDOF Program, Phase II [Member] | ||
Regulatory Commitments [Abstract] | ||
Amount of support offered by the Federal Communications Commission | $ 4,400 | |
Maximum [Member] | ||
Operating Leases [Abstract] | ||
Term of lease arrangements | 99 years | |
Maximum [Member] | RDOF Program, Phase I [Member] | ||
Regulatory Commitments [Abstract] | ||
Amount of support offered by the Federal Communications Commission | $ 16,000 |