Document and Entity Information
Document and Entity Information - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-11001 | |
Entity Registrant Name | FRONTIER COMMUNICATIONS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,779 | |
Title of 12(g) Security | Common Stock, par value $0.25 per share | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000020520 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,107 | $ 1,829 |
Accounts receivable, less allowances of $148 and $130, respectively | 519 | 553 |
Contract acquisition costs | 93 | 97 |
Prepaid expenses | 85 | 90 |
Income taxes and other current assets | 43 | 85 |
Total current assets | 2,847 | 2,654 |
Property, plant and equipment, net | 12,987 | 12,931 |
Other intangibles, net | 598 | 677 |
Other assets | 528 | 533 |
Total assets | 16,960 | 16,795 |
Current liabilities: | ||
Long-term debt due within one year | 5,782 | 5,781 |
Accounts payable | 507 | 540 |
Advanced billings | 210 | 202 |
Accrued other taxes | 202 | 204 |
Accrued interest | 96 | 47 |
Pension and other postretirement benefits | 48 | 48 |
Other current liabilities | 306 | 318 |
Total current liabilities | 7,151 | 7,140 |
Deferred income taxes | 430 | 343 |
Pension and other postretirement benefits | 2,194 | 2,195 |
Other liabilities | 445 | 452 |
Total liabilities not subject to compromise | 10,220 | 10,130 |
Liabilities subject to compromise | 11,570 | 11,565 |
Total liabilities | 21,790 | 21,695 |
Equity (Deficit): | ||
Common stock, $0.25 par value (175,000 authorized shares, 106,025 issued, and 104,671 and 104,793 outstanding, at March 31, 2021 and December 31, 2020, respectively) | 27 | 27 |
Additional paid-in capital | 4,817 | 4,817 |
Accumulated deficit | (8,915) | (8,975) |
Accumulated other comprehensive loss, net of tax | (744) | (755) |
Treasury common stock | (15) | (14) |
Total equity (deficit) | (4,830) | (4,900) |
Total liabilities and equity (deficit) | $ 16,960 | $ 16,795 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 148 | $ 130 |
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 outstanding (in shares) | 104,671,000 | 104,793,000 |
Common stock, shares issued (in shares) | 106,025,000 | 106,025,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements Of Operations [Abstract] | ||
Revenue | $ 1,676 | $ 1,933 |
Operating expenses: | ||
Network access expenses | 198 | 286 |
Network related expenses | 422 | 444 |
Selling, general and administrative expenses | 408 | 444 |
Depreciation and amortization | 387 | 415 |
Loss on disposal of Northwest Operations | 24 | |
Restructuring costs and other charges | 2 | 48 |
Total operating expenses | 1,417 | 1,661 |
Operating income | 259 | 272 |
Investment and other income, net | 2 | 5 |
Pension settlement costs | (103) | |
Reorganization items, net | (25) | |
Interest expense (contractual interest for the three months ended March 31, 2021 was $338 million) | (89) | (383) |
Income (loss) before income taxes | 147 | (209) |
Income tax expense (benefit) | 87 | (23) |
Net income (loss) | $ 60 | $ (186) |
Basic and diluted net earnings (loss) per share attributable to Frontier common shareholders | $ 0.57 | $ (1.78) |
Total weighted average shares outstanding - basic | 104,556 | 104,363 |
Total weighted average shares outstanding - diluted | 104,896 | 104,363 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Consolidated Statements Of Operations [Abstract] | |
Interest expense, contractual interest | $ 338 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $ 60 | $ (186) |
Other comprehensive income, net of tax | 11 | 86 |
Comprehensive income (loss) | $ 71 | $ (100) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity (Deficit) - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Common Stock [Member] | Total |
Balance at Dec. 31, 2019 | $ 27 | $ 4,815 | $ (8,573) | $ (650) | $ (13) | $ (4,394) |
Balance (in shares) at Dec. 31, 2019 | 106,025 | (894) | ||||
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) |
Balance (in shares) at Mar. 31, 2020 | 106,025 | (1,037) | ||||
Balance at Dec. 31, 2020 | $ 27 | 4,817 | (8,975) | (755) | $ (14) | (4,900) |
Balance (in shares) at Dec. 31, 2020 | 106,025 | (1,232) | ||||
Stock plans | $ (1) | (1) | ||||
Stock plans (in shares) | (122) | |||||
Net income (loss) | 60 | 60 | ||||
Other comprehensive income, net of tax | 11 | 11 | ||||
Balance at Mar. 31, 2021 | $ 27 | $ 4,817 | $ (8,915) | $ (744) | $ (15) | $ (4,830) |
Balance (in shares) at Mar. 31, 2021 | 106,025 | (1,354) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows provided from (used by) operating activities: | ||
Net income (loss) | $ 60 | $ (186) |
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 387 | 415 |
Pension settlement costs | 103 | |
Stock-based compensation | (1) | 1 |
Amortization of deferred financing costs | 8 | |
Other adjustments | 1 | 1 |
Deferred income taxes | 84 | (30) |
Loss on disposal of Northwest Operations | 24 | |
Change in accounts receivable | 34 | 29 |
Change in accounts payable and other liabilities | 48 | 110 |
Change in prepaid expenses, income taxes and other assets | 52 | 2 |
Net cash provided from operating activities | 665 | 477 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures | (384) | (286) |
Proceeds on sale of assets | 2 | 2 |
Other | 2 | 2 |
Net cash used by investing activities | (380) | (282) |
Cash flows used by financing activities: | ||
Long-term debt principal payments | (5) | |
Finance lease obligation payments | (5) | (8) |
Other | (2) | |
Net cash used by financing activities | (7) | (13) |
Increase in cash, cash equivalents and restricted cash | 278 | 182 |
Cash, cash equivalents and restricted cash at January 1, | 1,887 | 809 |
Cash, cash equivalents and restricted cash at March 31, | 2,165 | 991 |
Cash paid during the period for: | ||
Interest | 40 | 163 |
Income tax payments, net | $ 1 | |
Reorganization items, net | $ 56 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020. 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 March 31, 2021, 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 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. Chapter 11 Cases - On April 14, 2020 (the Petition Date), Frontier Communications Corporation (as it may be reorganized pursuant to the Plan, Reorganized Frontier) and its subsidiaries (collectively, the Company Parties or the Debtors and, as they may be reorganized pursuant to the Plan (as defined herein), the Reorganized Company Parties or the Reorganized Debtors) commenced cases under chapter 11 (the Chapter 11 Cases) of title 11 of the United States Code (the Bankruptcy Code) in the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). 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 after all conditions precedent to the Plan have been satisfied (the Effective Date), which is expected to occur on April 30, 2021, at which time we expect to emerge from the Chapter 11 Cases. See Note 3 for more information. b) Going Concern : The Company previously disclosed, based on its financial condition and its projected operating results, the defaults under its debt agreements, and the risks and uncertainties surrounding its Chapter 11 proceedings (see Note 3), that there was substantial doubt as to the Company’s ability to continue as a going concern as of the issuance of the Company’s 2020 Annual Report on Form 10-K. Based on the current status of the Chapter 11 Cases, including that the necessary regulatory approvals have been received, the Company is emerging from the Chapter 11 Cases on or about April 30, 2021 and, in so doing, eliminating approximately $ 11 billion in debt through the restructuring process, improving the Company’s capital structure and stabilizing its liquidity position. As such, as of the filing of this Quarterly Report on Form 10-Q, the substantial doubt as to the Company’s ability to continue as a going concern has been alleviated by the emergence from the Chapter 11 Cases. See Note 3 for more information. 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. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our then-outstanding obligations under the Company’s amended and restated credit agreement, dated as of February 27, 2017 (as amended, the JPM Credit Agreement), the Company’s 8.000 % first lien secured notes due April 1, 2027 (the Original First Lien Notes), the Company’s 8.500 % second lien secured notes due April 1, 2026 (the Original Second Lien Notes), our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. As of March 31, 2021, amounts that were outstanding under the JPM Credit Agreement, our Original First Lien Notes, and our Original Second Lien Notes have been repaid in full. We have reclassified our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries 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 (as defined herein), on our consolidated balance sheet as of March 31, 2021. For additional discussion related to our debt obligations, and details of our refinancing of our secured debt, refer to Note 10. 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 an effort to reduce the economic impacts of COVID-19, the United States federal government has responded with multiple stimulus bills. Given the evolving nature of the pandemic and the response of multiple levels of government as well as the uncertainty of funding available for services provided, the full impact of the pandemic and response(s) to it on the Company are unknown at this time. In addition, some of the states we operate in (including California and New York) 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. State and federal governments may continue to ask companies to aid in pandemic response. While certain customers have taken advantage of our COVID-19 related relief programs, as of March 31, 2021, very few had past due balances beyond the point of normal disconnection. Frontier’s response to COVID-19 has included several operational safety precautions such as 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 March 31, 2021, 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. While overall the operational and financial impacts to Frontier of the COVID-19 pandemic for the three months ended March 31, 2021 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, this negative impact is offset by lower churn within our consumer and Small and Medium Business customers. 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. Taxes, Surcharges and Subsidies Frontier collects various taxes from its customers and remits the funds 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 $ 55 million and $ 49 million for the three months ended March 31, 2021 and 2020, respectively, and video franchise fees, which amounted to $ 6 million and $ 9 million for the three months ended March 31, 2021 and 2020, 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 is included in “Other assets” on our consolidated balance sheet as of both March 31, 2021 and December 31, 2020. These amounts represent Letters of Credit Obligations and a utility adequate assurance account that is required under bankruptcy rules. 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. |
Recent Accounting Literature
Recent Accounting Literature | 3 Months Ended |
Mar. 31, 2021 | |
Recent Accounting Literature [Abstract] | |
Recent Accounting Literature | (2) Recent Accounting Literature : 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. 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. |
Liquidity And Financial Conditi
Liquidity And Financial Condition | 3 Months Ended |
Mar. 31, 2021 | |
Liquidity And Financial Condition [Abstract] | |
Liquidity And Financial Condition | ( 3) Liquidity and Financial Condition: Restructuring Support Agreement On April 14, 2020, the Company Parties entered into a Restructuring Support Agreement (the Restructuring Support Agreement) with certain of its noteholders (the Consenting Noteholders) , pursuant to which 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 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 for 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 (the Plan), 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. As previously announced, as of April 15, 2021, the Company had received PUC approvals or favorable determinations from all required states. 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 which may be modified subject to requisite consent under the Plan): 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 Original Second Lien Notes claims are reinstated under the Plan, the Takeback Debt will be third lien debt, provided that to the extent the Original 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 Original 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 Original 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. (JPM), 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 the Original 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 Original 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 Original 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 Original 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, the Original First Lien Notes, the Original Second Lien Notes and the Term Loan B, 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 Original 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 Original 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 Original Second Lien Notes Trustee, and the ad hoc committee of certain unaffiliated holders of Original 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 Original 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 Original 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 Original 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 Original 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 Original Second Lien Notes claims with respect to certain obligations and amounts; the Company Parties shall make a $ 48 million payment to holders of Term Loan B claims, a $ 9 million 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 $ 8 million to holders of Term Loan B claims, subject to the provisions and conditions of the Plan with respect to such payments; 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 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 debtor-in-possession (DIP) revolving facility (the DIP Revolving Facility), which, upon satisfaction of certain conditions, including the effectiveness of the Plan, would convert into a revolving exit facility maturing four years from the emergence date. 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. On August 28, 2020, the Company Parties filed a motion (the DIP Financing Motion) with the Bankruptcy Court to approve (i) the indentures, credit, guarantee and security documents governing the obligations under senior secured superpriority first lien and/or second lien notes to be issued by the Company or an affiliate thereof, (ii) a DIP revolving facility and the exit revolving facility (the Exit Revolving Facility) it would convert into upon satisfaction of certain conditions, including the effectiveness of the Plan, (iii) a DIP term loan facility and the exit term loan facility it would convert into upon satisfaction of certain conditions, including the effectiveness of the Plan (the Exit Term Loan Facility) and, (iv) 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 . In connection with the DIP Financing, on October 8, 2020, the Company issued $ 1,150 million aggregate principal amount of 5.875 % First Lien Secured Notes due October 15, 2027 (the First Lien Notes due October 2027), and entered into a $ 625 million DIP Revolving Facility and a $ 500 million DIP term loan facility (the Initial DIP Term Loan Facility). The Company used the proceeds from the offering of the New First Lien Notes due October 2027, together with the proceeds of the Initial DIP Term Loan Facility and cash on hand, to (i) repay in full our prepetition of $ 1,650 million aggregate principal amount of the Original First Lien Notes and (ii) pay related interest, fees and expenses. Also in connection with the DIP Financing, on November 25, 2020, the Company issued $ 1,550 million aggregate principal amount of 5.000 % First Lien Secured Notes due May 1, 2028 (the First Lien Notes due May 2028 and, together with the First Lien Notes due October 2027, the New First Lien Notes) and $ 1,000 million aggregate principal amount of 6.750 % Second Lien Secured Notes due May 1, 2029 (the New Second Lien Notes), and borrowed an incremental $ 750 million under the DIP term loan facility (the Incremental DIP Term Loan Facility and, together with the Initial DIP Term Loan Facility, the DIP Term Loan Facility). The Company used the proceeds from these issuances and the incremental term loan borrowing, together with cash on hand to (i) repay all outstanding borrowings under our prepetition Term Loan B, (ii) repay in full the $ 1,600 million aggregate principal amount of our prepetition 8.500 % Second Lien Secured Notes due April 1, 2026 (the Original Second Lien Notes), and (iii) pay related interest, fees and expenses incurred in connection therewith. For more information about the DIP Financing and subsequent events related thereto, refer to Note 10 and Note 19. 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 PUC approvals in certain states. The Company is also the subject of ongoing investigations and reviews, which may lead to the imposition of financial sanctions and/or operational restrictions. As previously announced, as of April 15, 2021, the Company had received PUC approvals or favorable determinations from all required states. In connection with the approvals, the FCC and certain state PUCs imposed conditions on the approval of the Restructuring Transactions, including commitments to make significant capital and operational expenditures, deploy broadband facilities and improve services. 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 th |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
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 revenues generated from services provided directly to consumer customers as linear terrestrial television services, and through Dish ® satellite TV service; 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. Prior year revenues in the following tables include revenues for the Northwest Operations for the three months ended March 31, 2020 (prior to its disposal): For the three months ended March 31, ($ in millions) 2021 2020 Data and Internet services $ 842 $ 932 Voice services 487 572 Video services 169 222 Other 95 117 Revenue from contracts with customers (1) 1,593 1,843 Subsidy and other revenue 83 90 Total revenue $ 1,676 $ 1,933 For the three months ended March 31, ($ in millions) 2021 2020 Consumer $ 844 $ 971 Commercial 749 872 Revenue from contracts with customers (1) 1,593 1,843 Subsidy and other revenue 83 90 Total revenue $ 1,676 $ 1,933 (1) Includes approximately $ 16 million and $ 17 million of lease revenue for the three months ended March 31, 2021 and 2020, respectively. 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, 2020 $ 6 $ 9 $ 58 $ 20 Revenue recognized included in opening contract balance ( 4 ) - ( 17 ) ( 2 ) Cash received, excluding amounts recognized as revenue - - 17 1 Balance at March 31, 2021 $ 2 $ 9 $ 58 $ 19 Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2019 $ 37 $ 8 $ 41 $ 21 Revenue recognized included in opening contract balance ( 9 ) - ( 21 ) ( 4 ) Cash received, excluding amounts recognized as revenue - - 25 5 Credits granted, excluding amounts recognized as revenue 1 - - - Reclassified between current and noncurrent - - 1 ( 1 ) Balance at March 31, 2020 $ 29 $ 8 $ 46 $ 21 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 2021 (remaining nine months) $ 1,091 2022 712 2023 316 2024 110 2025 62 Thereafter 128 Total $ 2,419 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | (5 ) Accounts Receivable : The components of accounts receivable, net are as follows : ($ in millions) March 31, 2021 December 31, 2020 Retail and wholesale $ 592 $ 608 Other 75 75 Less: Allowance for doubtful accounts ( 148 ) ( 130 ) Accounts receivable, net $ 519 $ 553 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 balances in the allowance account as of March 31, 2021 and December 31, 2020 were elevated as a result of ongoing billing disputes with some of our wholesale customers . As of March 31, 2021, our accounts receivable balance included $ 128 million of disputed amounts that are expected to be settled in the short term. We have established $ 96 million in reserves related to these balances as well as other amounts that were previously paid, which reflects the current expected outcome from settlement negotiations. Bad debt expense (credits), which is recorded as a reduction to revenue, is as follows : For the three months ended March 31, ($ in millions) 2021 2020 Bad debt expense $ 10 $ 14 |
Property, Plant And Equipment
Property, Plant And Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 6) Property, Plant and Equipment : Property, plant and equipment, net is as follows : ($ in millions) March 31, 2021 December 31, 2020 Property, plant and equipment $ 28,040 $ 27,695 Less: Accumulated depreciation ( 15,053 ) ( 14,764 ) Property, plant and equipment, net $ 12,987 $ 12,931 Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended March 31, ($ in millions) 2021 2020 Depreciation expense $ 308 $ 316 We revised the estimated remaining useful lives for certain plant assets as of October 1, 2020, 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. |
Other Intangibles
Other Intangibles | 3 Months Ended |
Mar. 31, 2021 | |
Other Intangibles [Abstract] | |
Other Intangibles | (7) Other Intangibles : The components of other intangibles are as follows : March 31, 2021 December 31, 2020 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 4,332 $ ( 3,856 ) $ 476 $ 4,332 $ ( 3,781 ) $ 551 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 72 ) - 72 ( 68 ) 4 Total other intangibles $ 4,526 $ ( 3,928 ) $ 598 $ 4,526 $ ( 3,849 ) $ 677 Amortization expense was as follows : For the three months ended March 31, ($ in millions) 2021 2020 Amortization expense $ 79 $ 99 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 for a period of one year after the sale completion date. As of March 31, 2021, there were $ 27 million of proceeds held in escrow accounts included in Other current assets. The amounts in escrow will be reviewed and unclaimed amounts released after one year from the completion of the sale. Proceeds previously held in escrow related to employee liabilities of $ 25 million and adjustments to working capital of $ 5 million were received by the Company in the first quarter of 2021. 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 were 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 was amortized to other revenue as the related services were delivered. Effective October 31, 2020, the purchaser terminated all future services that Frontier would have provided and received compensation 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 $ 150 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 three months ended March 31, 2020, Frontier recorded a loss on disposal of $ 24 million, associated with the sale of the Northwest Operations. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020. 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 March 31, 2021) is estimated based upon quoted market prices at the reporting date for those financial instruments. March 31, 2021 December 31, 2020 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 16,769 $ 13,354 $ 16,769 $ 11,635 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
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 then-outstanding obligations under the JPM Credit Agreement, the Original First Lien Notes, the Original 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 March 31, 2021. 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 court approved and confirmed plan of reorganization, 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 three months ended March 31, 2021 Principal Interest Rate at January 1, Payments New March 31, March 31, ($ in millions) 2021 and Retirements Borrowings 2021 2021* Secured debt issued by Frontier $ 4,964 $ - $ - $ 4,964 5.75 % Unsecured debt issued by Frontier 10,949 - - 10,949 9.19 % 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 $ 16,769 $ - $ - $ 16,769 8.07 % Less: Debt Issuance Costs - - Less: Debt Discount ( 39 ) ( 38 ) Debt, less unamortized debt issuance costs and discounts 16,730 16,731 Less: Current Portion ( 5,781 ) ( 5,782 ) Less: Debt subject to compromise ( 10,949 ) ( 10,949 ) Total Long-term debt $ - $ - * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at March 31, 2021 represent a weighted average of multiple issuances. Additional information regarding our secured and unsecured long-term debt as of March 31, 2021 and December 31, 2020 is as follows: March 31, 2021 December 31, 2020 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier DIP-to-Exit term loan due 10/8/2027 $ 1,250 5.750 % (Variable) $ 1,250 5.750 % (Variable) DIP-to-Exit First lien notes due 10/15/2027 1,150 5.875 % 1,150 5.875 % DIP-to-Exit First lien notes due 5/1/2028 1,550 5.000 % 1,550 5.000 % DIP-to-Exit Second lien notes due 5/1/2029 1,000 6.750 % 1,000 6.750 % IDRB due 5/1/2030 14 6.200 % 14 6.200 % Secured debt issued by Frontier 4,964 4,964 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 16,769 8.188 % (1) 16,769 8.188 % (1) Less: debt subject to compromise ( 10,949 ) ( 10,949 ) Total debt $ 5,820 5.944 % (1) $ 5,820 5.944 % (1) (1) Interest rate represents a weighted average of the stated interest rates of multiple issuances . DIP Financing On August 28, 2020, the Company Parties filed the DIP Financing Motion with the Bankruptcy Court to approve the DIP Financing. On September 17, 2020, the Bankruptcy Court entered the final order approving the DIP Financing Motion. 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, GS Bank, 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 3.250 % (or 2.250 % 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 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 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 4 years after the conversion date. 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 3.500 % (or 2.500 % for alternate base rate loans). 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, JPM, as administrative agent and collateral agent and each lender from time to time party thereto. On November 25, 2020, Frontier entered into an incremental facility amendment No. 1 to the DIP to Exit Term Credit Agreement, which provides for an additional senior secured superpriority DIP term loan facility in the aggregate principal amount of $ 750 million (the Incremental DIP Term Loan Facility and, together with the Initial DIP Term Loan Facility, the DIP Term Loan Facility). On April 14, 2021, the Company entered into a Refinancing and Incremental Facility Amendment No. 2 (the “Refinancing and Incremental Amendment”). Pursuant to the Refinancing and Incremental Amendment, JPM agreed to provide, subject to certain conditions, including emergence from the Chapter 11 Cases, an incremental exit term loan facility in an aggregate principal amount of $ 225 million (the “New Incremental Commitment” and the loans borrowed thereunder, the “New Incremental Term Loans”). See Note 19. 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 the conversion date has occurred, the maturity date shall be the seventh anniversary of the closing date. 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. Pursuant to the Refinancing and Incremental Amendment, the interest rate with respect to any LIBOR loan is 3.75 % or 2.75 % for alternate base rate loans, with a 0.75 % LIBOR floor . See Note 19. 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 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 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 $ 1,250 million. On April 14, 2021, the Company entered into a Refinancing and Incremental Facility Amendment No. 2 (the “Refinancing and Incremental Amendment”), providing for an incremental exit term loan facility in an aggregate principal amount of $ 225 million. Refer to Note 19 for more details related to this amendment. First Lien Notes due October 2027 On October 8, 2020, Frontier issued $ 1,150 million aggregate principal amount of the First Lien Notes due October 2027. Interest on the First Lien Notes due October 2027 is payable to holders of record semi-annually in arrears on April 15 and October 15 of each year, commencing April 15, 2021. The notes were issued pursuant to an indenture, dated as of October 8, 2020 (the 2027 First Lien 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, and 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 First Lien Notes due October 2027 are secured on a super-priority basis and pari passu with the DIP Revolving Facility and the DIP Term Loan Facility, 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 and pari passu with the DIP Revolving Facility and the DIP Term Loan Facility. From the conversion date, the First Lien Notes due October 2027 are secured on a first-priority basis and pari passu with its senior secured credit facilities, 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 and pari passu with its senior secured credit facilities. Frontier may redeem the First Lien Notes due October 2027 at any time, in whole or in part, prior to their maturity. If the notes are redeemed before October 15, 2023 the redemption price 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. If the notes are redeemed on or after October 15, 2023 the redemption price will be equal to the amounts set forth in the 2027 First Lien 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 First Lien Notes due October 2027 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 First Lien Notes due October 2027 will have the right to require Frontier to purchase the notes at a purchase price equal to 101 % of the principal amount of the First Lien Notes due October 2027, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The 2027 First Lien 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 First Lien Notes due October 2027 have investment grade ratings by at least two of Moody’s, S&P or Fitch. The 2027 First Lien 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 First Lien Notes due October 2027 to become or to be declared due and payable. First Lien Notes due May 2028 On November 25, 2020, Frontier issued $ 1,550 million aggregate principal amount of the First Lien Notes due May 2028 , which bear interest at a rate of 5.000 % per annum. Interest is payable to holders of record semi-annually in arrears on May 1 and November 1 of each year, commencing May 1, 2021. The First Lien Notes due May 2028 were issued pursuant to an indenture, dated as of November 25, 2020 (the 2028 First Lien 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, and 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 First Lien Notes due May 2028 are secured on a super-priority basis and pari passu with the DIP Revolving Facility and the DIP Term Loan Facility, 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 and pari passu with the DIP Revolving Facility and the DIP Term Loan Facility. From the conversion date, the First Lien Notes due May 2028 are secured on a first-priority basis and pari passu with its senior secured credit facilities, 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 and pari passu with its senior secured credit facilities. Frontier may redeem the First Lien Notes due May 2028 at any time, in whole or in part, prior to their maturity. If redeemed before May 1, 2024 the redemption price 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. If the notes are redeemed on or after May 1, 2024, the redemption price will be equal to the amounts set forth in the 2028 First Lien Indenture, together with any accrued and unpaid interest to the redemption date. In addition, at any time before May 1, 2024, Frontier may redeem up to 40 % of the First Lien Notes due May 2028 using the proceeds of certain equity offerings at a redemption price equal to 105.000 % 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 the First Lien Notes due May 2028 will have the right to require Frontier to purchase the notes at a purchase price equal to 101 % of the principal amount of the First Lien Notes due May 2028 , plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The 2028 First Lien 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 First Lien Notes due May 2028 have investment grade ratings by at least two of Moody’s, S&P or Fitch. The 2028 First Lien 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 First Lien Notes due May 2028 to become or to be declared due and payable. New Second Lien Notes On November 25, 2020, Frontier issued $ 1,000 million aggregate principal amount of the New Second Lien Notes, which mature on May 1, 2029 and bear interest at a rate of 6.750 % per annum. Interest is payable to holders of record semi-annually in arrears on May 1 and November 1 of each year, commencing May 1, 2021. The New Second Lien Notes were issued pursuant to an indenture, dated as of November 25, 2020 (the New Second Lien Indenture, and together with the 2027 First Lien Indenture and the 2028 First Lien Indenture, the Secured Note Indentures), by and among Frontier, the guarantors party thereto, the grantor party thereto, Wilmington Trust, National Association, as trustee and collateral agent, and 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 Second Lien Notes are superpriority obligations secured by a second-priority lien junior to the DIP Revolving Facility, the DIP Term Loan Facility, the First Lien Notes due October 2027 and the First Lien Notes due May 2028 , subject to permitted liens and certain exceptions, by all the assets that secure Frontier’s obligations under the DIP Revolving Facility, the DIP Term Loan Facility, on a super-priority basis and pari passu with the DIP Revolving Facility and the DIP Term Loan Facility, the First Lien Notes due October 2027 and the First Lien Notes due May 2028 . From the conversion date, the New Second Lien Notes are secured on a second-priority basis junior to the DIP Revolving Facility, the First Lien Notes due October 2027 and the First Lien Notes due May 2028 , subject to permitted liens and certain exceptions, by all the assets that secure Frontier’s obligations under its senior secured credit facilities and existing first lien notes on a second-priority basis junior to its secured credit facilities and existing first lien notes. Frontier may redeem the New Second Lien Notes at any time, in whole or in part, prior to their maturity. If redeemed before May 1, 2024, the redemption price 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. If redeemed on or after May 1, 2024, the redemption price will be equal to the amounts set forth in the New Second Lien Indenture, together with any accrued and unpaid interest to the redemption date. In addition, at any time before November 1, 2023, Frontier may redeem up to 40 % of the New Second Lien Notes using the proceeds of certain equity offerings at a redemption price equal to 106.750 % 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 the New Second Lien Notes will have the right to require Frontier to purchase the notes at a purchase price equal to 101 % of the principal amount of the New Second Lien Notes, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The New Second Lien 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 Second Lien Notes have investment grade ratings by at least two of Moody’s, S&P or Fitch. The New Second Lien 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 Second Lien Notes to become or to be declared due and payable. Existing Debt Issuances and Reductions Repaid Original First Lien Notes On March 15, 2019, Frontier completed a private offering of $ 1,650 million aggregate principal amount of the Original First Lien Notes, which had a maturity date of April 1, 2027 , and accrued interest at a rate of 8.000 % per annum. 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. 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. Repaid Original Second Lien Notes On March 19, 2018, Frontier completed a private offering of $ 1,600 million aggregate principal amount of the Original Second Lien Notes, which had a maturity date of April 1, 2026 , and accrued interest at a rate of 8.500 % per annum. As noted above, these notes were repaid in full using the proceeds from the November 25, 2020 debt refinancing. Repaid JP Morgan Credit Facilities Frontier had an amended and restated credit agreement with JPM, as administrative agent, and the lenders party thereto, which provided for a $ 1,625 million senior secured Term Loan A facility (the Term Loan A), a $ 1,740 million Term Loan B, and the Revolver. As noted above all outstanding amounts remaining drawn under the Revolver and Term Loan B were fully repaid using cash on hand and the proceeds from the November 25, 2020 debt refinancing, and all outstanding amounts remaining drawn under Term Loan A were fully repaid using the proceeds from the offering of the Original First Lien Notes. On July 3, 2018, the Company entered into Increase Joinder No. 2 to the JPM Credit Agreement, pursuant to which the Company borrowed an incremental $ 240 million under the Term Loan B. The Company used the incremental borrowings to repay in full the 2014 CoBank Credit Agreement (as defined below), repay a portion of the 2016 CoBank Credit Agreement (as defined below) and pay certain fees and expenses related to this incremental borrowing. 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. |
Restructuring And Other Charges
Restructuring And Other Charges | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Other Charges [Abstract] | |
Restructuring And Other Charges | (11) Restructuring Costs and Other Charges: As of March 31, 2021, 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 March 31, 2021, we incurred $ 2 million in expenses consisting of severance and employee costs resulting from workforce reductions. During the three-month period ended March 31, 2020, we incurred $ 48 million in expenses consisting of $ 8 million directly associated with transformation initiatives, $ 2 million of severance and employee costs resulting from workforce reductions, and $ 38 million of consulting and advisory costs related to our balance sheet restructuring activities 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. The following is a summary of the changes in the liabilities established for restructuring and other related programs: ($ in millions) Balance at January 1, 2021 $ 2 Severance expense 2 Cash payments during the period ( 1 ) Balance at March 31, 2021 $ 3 |
Investment And Other Income
Investment And Other Income | 3 Months Ended |
Mar. 31, 2021 | |
Investment And Other Income [Abstract] | |
Investment And Other Income | (12) Investment and Other Income: The following is a summary of the components of Investment and Other Income: For the three months ended March 31, ( $ in millions ) 2021 2020 Interest and dividend income $ - $ 2 Pension and OPEB benefit 1 1 All other, net 1 2 Total investment and other income, net $ 2 $ 5 Pension and OPEB credit (cost) consists of interest costs, expected return on plan assets, amortization of prior service costs (credit) and amortization of unrecognized (gain) loss. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 2020 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % State income tax provisions, net of federal income tax expense (benefit) 8.7 ( 1.2 ) Changes in certain deferred tax balances 60.9 0.6 Interest expense deduction ( 36.7 ) - Restructuring cost 5.1 ( 3.4 ) Loss on disposal of Northwest Operations - ( 2.4 ) Tax reserve adjustment - ( 2.5 ) Shared-based payments - ( 0.7 ) Federal research and development tax credit - 0.6 All other, net 0.2 ( 0.9 ) Effective tax rate 59.2 % 11.1 % 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 was used by the Company in the first quarter of 2021. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. As part of the CARES Act, employers were allowed to defer payment of the employer’s share of the Social Security tax that they otherwise were responsible for paying on wages. The deferral applied to affected taxes that were normally required to be paid from March 27, 2020, through December 31, 2020. These deferred taxes must be paid in equal amounts in 2021 and 2022. As of March 31, 2021, Frontier has deferred the payments of approximately $ 60 million in such taxes. As of March 31, 2021, and December 31, 2020, amounts pertaining to expected income tax refunds of $ 13 million are included in “Income taxes and other current assets” in the consolidated balance sheets, respectively. Frontier considered positive and negative evidence in regard to evaluating certain deferred tax assets during the first quarter of 2021, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $ 138 million ($ 125 million net of federal benefit) has been recorded for the three months ended March 31, 2021, related to these deferred tax assets and reflected in “Changes in certain deferred tax balances.” As described more fully in Note 1 and Note 3, the Company expects to emerge from bankruptcy on April 30, 2021, at which time it will consummate a taxable disposition of substantially all of the assets and/or subsidiary stock of the Company and utilize substantially all of the Company’s NOLs. |
Net Earnings (Loss) Per Share
Net Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, ( $ in millions and shares in thousands, except per share amounts ) 2021 2020 Net income (loss) used for basic and diluted earnings (loss) per share: Total basic net income (loss) attributable to Frontier common shareholders $ 60 $ ( 186 ) Effect of loss related to dilutive stock units - - Total diluted net income (loss) attributable to Frontier common shareholders $ 60 $ ( 186 ) Basic earnings (loss) per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 104,786 105,060 Less: Weighted average unvested restricted stock awards ( 230 ) ( 697 ) Total weighted average shares outstanding - basic 104,556 104,363 Basic net earnings (loss) per share attributable to Frontier common shareholders $ 0.57 $ ( 1.78 ) Diluted earnings (loss) per share: Total weighted average shares outstanding - basic 104,556 104,363 Effect of dilutive stock units 340 - Total weighted average shares outstanding - diluted 104,896 104,363 Diluted net earnings (loss) per share attributable to Frontier common shareholders $ 0.57 $ ( 1.78 ) In calculating diluted net loss per common share for the three months ended March 31, 2020, the effect of all common stock equivalents was excluded from the computation as the effect would have been antidilutive. Stock Options For the three months ended March 31, 2021 there were no outstanding stock options. As of March 31, 2020, previously granted options to purchase 1,344 shares issuable under employee compensation plans were excluded from the computation of diluted earnings (loss) per share (EPS) for those periods because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be antidilutive. These options expired on July 6, 2020. Stock Units At each of March 31, 2021 and March 31, 2020, 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 no t been included in the diluted EPS calculation for the three months ended March 31, 2020 because their inclusion would have an antidilutive effect. |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2021 | |
Stock Plans [Abstract] | |
Stock Plans | (15) Stock Plans : At March 31, 2021, 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 March 31, 2021, there were approximately 5,667,000 shares authorized for grant and approximately 3,754,000 shares available for grant under the 2017 Equity Incentive Plan (the 2017 EIP, together with the 2013 EIP, the EIPs). 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, 2021 304 $ 6.78 $ - Restricted stock granted - $ - $ - Restricted stock vested ( 41 ) $ 8.23 $ - Restricted stock forfeited ( 109 ) $ 8.23 Balance at March 31, 2021 154 $ 5.38 $ - For purposes of determining compensation expense, the fair value of each restricted stock grant is estimated based on the closing price of a share of our common stock on the date of the grant. Total remaining unrecognized compensation cost associated with unvested restricted stock awards that is deferred at March 31, 2021 was less than $ 1 million, and the weighted average vesting period over which this cost is expected to be recognized is less than 1 year. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
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 : Pension OPEB ($ in millions) Costs Costs Total Balance at January 1, 2021 (1) $ ( 699 ) $ ( 56 ) $ ( 755 ) Other comprehensive income (loss) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss to net income 14 ( 3 ) 11 Net current-period other comprehensive income (loss) 14 ( 3 ) 11 Balance at March 31, 2021 (1) $ ( 685 ) $ ( 59 ) $ ( 744 ) Pension OPEB ($ in millions) Costs Costs Total Balance at January 1, 2020 (1) $ ( 684 ) $ 34 $ ( 650 ) Other comprehensive income (loss) before reclassifications 1 - 1 Amounts reclassified from accumulated other comprehensive loss to net loss 90 ( 5 ) 85 Net current-period other comprehensive income (loss) 91 ( 5 ) 86 Balance at March 31, 2020 (1) $ ( 593 ) $ 29 $ ( 564 ) (1) Pension and OPEB amounts are net of tax of $ 234 million and $ 204 million as of January 1, 2021 and 2020, respectively and $ 230 million and $ 176 million as of March 31, 2021 and 2020, respectively. 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 the Statement Where Details about Accumulated Other March 31, Net Income (Loss) Comprehensive Loss Components 2021 2020 is Presented Amortization of Pension Cost Items (2) Actuarial gains (losses) $ ( 18 ) $ ( 17 ) Pension settlement costs - ( 103 ) ( 18 ) ( 120 ) Income (Loss) before income taxes Tax impact 4 30 Income tax benefit $ ( 14 ) $ ( 90 ) Net income (loss) Amortization of OPEB Cost Items (2) Prior-service costs $ 7 $ 8 Actuarial gains (losses) ( 3 ) ( 2 ) 4 6 Income (Loss) before income taxes Tax impact ( 1 ) ( 1 ) Income tax benefit $ 3 $ 5 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, ( $ in millions ) 2021 2020 Components of total pension benefit cost Service cost $ 24 $ 25 Interest cost on projected benefit obligation 23 30 Expected return on plan assets ( 45 ) ( 50 ) Amortization of unrecognized loss 18 17 Net periodic pension benefit cost 20 22 Pension settlement costs - 103 Total pension benefit cost $ 20 $ 125 Postretirement Benefits For the three months ended March 31, ( $ in millions ) 2021 2020 Components of net periodic postretirement benefit cost Service cost $ 5 $ 5 Interest cost on projected benefit obligation 7 8 Amortization of prior service cost (credit) ( 7 ) ( 8 ) Amortization of unrecognized (gain) loss 3 2 Net periodic postretirement benefit cost $ 8 $ 7 The components of net periodic benefit cost other than the service cost component are included in “Investment and other income” in the consolidated statement of operations. The value of our pension plan assets decreased $ 23 million from $ 2,507 million at December 31, 2020 to $ 2,484 million at March 31, 2021. This decrease primarily resulted from benefit payments to participants of $ 19 million and plan expenses of $ 5 million, partially offset by investment returns of $ 1 million. The pension plan contains provisions that provide certain employees with the option of receiving a lump sum payment upon retirement. Frontier’s accounting policy is to record these payments as a settlement only if, in the aggregate, they exceed the sum of the annual service and interest costs for the Pension Plan’s net periodic pension benefit cost. During the three months ended March 31, 2020, lump sum pension settlement payments to terminated or retired individuals amounted to $ 310 million, which exceeded the settlement threshold of $ 211 million, and as a result, Frontier recognized non-cash settlement charges totaling $ 103 million during the three months ended March 31, 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. During the first three months of 2021 and 2020, we capitalized $ 6 million and $ 7 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. Prior to the CARES Act, required pension plan contributions for fiscal year 2020 were approximately $ 180 million. The CARES Act (passed in March 2020) allowed employers to postpone making pension contributions due in 2020 until January 4, 2021. As a result, Frontier decided to defer all of its remaining 2020 fiscal year required contributions (approximately $ 147 million including additional interest). On December 31, 2020, a $ 27 million contribution was made for the 2019 plan year. The remaining required 2020 plan year contributions were further delayed past the January 4, 2021 deadline (approximately $ 120 million including additional interest to January 4, 2021). As Frontier has applied for a waiver of delayed contributions per minimum funding standard regulations under Section 412(c) of the Internal Revenue Code and Section 302(c) of the Employee Retirement Income Security Act of 1974. This waiver would delay payments of the 2020 plan year by spreading the 2020 plan year contributions, determined as of January 1, 2020, over the five subsequent plan years. In March 2021, Congress passed the American Rescue Plan Act, or ARPA, which includes pension funding relief for plan sponsors. ARPA provides for 1) a shortfall amortization period change from 7 to 15 years with a fresh start for the existing shortfall, with an option to commence in this in the 2019 plan year and 2) interest rate stabilization, with an option to commence in this in the 2020 plan year. Assuming the pension waiver described above is finalized and incorporating the ARPA pension relief provisions, our pension plan contributions in the fiscal year 2021 are estimated to be $ 95 million. There were no contributions made during the first three months of 2021. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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. The CAF II program ends and the Company must complete the CAF II deployment by December 31, 2021. On January 30, 2020, the FCC adopted an order establishing the Rural Digital Opportunity Fund (RDOF) program. The FCC held the RDOF Phase I auction from October 29, 2020 through November 25, 2020 and announced the results on December 7, 2020. Frontier was awarded approximately $ 371 million over ten years to build gigabit capable broadband over a fiber-to-the-premises network to approximately 127,000 locations across eight states (California, Connecticut, Florida, Illinois, New York, Pennsylvania, Texas, and West Virginia). Frontier submitted its Long Form application to the FCC on January 29, 2021 and, assuming the long-form application is granted by the FCC, anticipates that it will begin receiving funding on January 1, 2022, in which case, Frontier will be required to complete the buildout to these locations by December 31, 2027, with interim target milestones over this period. 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, up to approximately $ 11.2 billion. Beginning in 2022, Frontier will be required to issue letters of credit to the FCC as a condition for amounts awarded. 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 initial 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, intellectual property, including, trademark, copyright, 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 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. The a mounts in escrow will be reviewed and unclaimed amounts released after one year from the completion of the sale. See Note 8 for additional details on the divestiture of our Northwest Operations. We conduct certain of our operations in leased premises and also lease certain equipment and other assets pursuant to operating leases. The lease arrangements have terms ranging from 1 to 99 years and several contain rent escalation clauses providing for increases in monthly rent at specific intervals. When rent escalation clauses exist, we record annual rental expense based on the total expected rent payments on a straight-line basis over the lease term. Certain leases also have renewal options. Renewal options that are reasonably assured are included in determining the lease term. We are party to contracts with several unrelated long-distance carriers. The contracts provide fees based on traffic they carry for us subject to minimum monthly fees. Effect of Automatic Stay Subject to certain exceptions under the Bankruptcy Code, the filing of the Company Parties’ Chapter 11 Cases automatically stayed the continuation of most legal proceedings or the filing of other actions against or on behalf of the Company Parties or their property to recover on, collect or secure a claim arising prior to the Petition Date or to exercise control over property of the Company Parties’ bankruptcy estates, unless and until the Bankruptcy Court modifies or lifts the automatic stay as to any such claim. Notwithstanding the general application of the automatic stay described above, governmental authorities may determine to continue actions brought under their police and regulatory powers. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (19) Subsequent Events : Refinancing and Incremental Amendment On April 14, 2021, the Company entered into a Refinancing and Incremental Facility Amendment No. 2 (the “Refinancing and Incremental Amendment”), providing for an amendment to the DIP to Exit Term Credit Agreement, pursuant to which the DIP Term Loan Facility (and the exit term loan facility into which it will convert upon the Company Parties’ emergence from the Chapter 11 Cases) was repriced, effective on April 14, 2021. The determination of interest rates is based on margins over the alternate base rate or over LIBOR, at the Company's election. Prior to the Refinancing and Incremental Amendment, the interest rate margin was 4.75 % for LIBOR loans or 3.75 % for alternate base rate loans, with a 1.00 % LIBOR floor. Pursuant to the Refinancing and Incremental Amendment, the interest rate margin is 3.75 % for LIBOR loans or 2.75 % for alternate base rate loans, with a 0.75 % LIBOR floor. Pursuant to the Refinancing and Incremental Amendment, JPM also agreed to provide, subject to certain conditions, including emergence from the Chapter 11 Cases, an incremental exit term loan facility in an aggregate principal amount of $ 225 million (the New Incremental Commitment and the loans borrowed thereunder, the New Incremental Term Loans). As previously disclosed, the Company and certain of its subsidiaries had previously entered into a commitment letter with certain existing noteholders and/or their affiliates (the Original Commitment Parties) pursuant to which, and subject to the satisfaction of certain conditions, including the Company Parties’ emergence from the Chapter 11 Cases, the Original Commitment Parties agreed to provide the Company with an incremental term loan facility in an aggregate principal amount of $ 225 million (the Original Incremental Commitment). The New Incremental Commitment will be used in place of the Original Incremental Commitment, which was terminated on April 14, 2021. The New Incremental Term Loans are expected to be fungible with, and on the same terms as, the Company’s existing term loans under the DIP to Exit Credit Agreement and have the same CUSIP numbers and other identifiers. Refer to Note 10, for details related to the DIP Term Loan Facility. At emergence our Exit term loan facility will have an aggregate principal amount of $ 1,475 million consisting of our converted DIP Term Loan Facility and the New Incremental Term Loan. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020. 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 March 31, 2021, 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 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. Chapter 11 Cases - On April 14, 2020 (the Petition Date), Frontier Communications Corporation (as it may be reorganized pursuant to the Plan, Reorganized Frontier) and its subsidiaries (collectively, the Company Parties or the Debtors and, as they may be reorganized pursuant to the Plan (as defined herein), the Reorganized Company Parties or the Reorganized Debtors) commenced cases under chapter 11 (the Chapter 11 Cases) of title 11 of the United States Code (the Bankruptcy Code) in the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). 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 after all conditions precedent to the Plan have been satisfied (the Effective Date), which is expected to occur on April 30, 2021, at which time we expect to emerge from the Chapter 11 Cases. See Note 3 for more information. |
Going Concern | b) Going Concern : The Company previously disclosed, based on its financial condition and its projected operating results, the defaults under its debt agreements, and the risks and uncertainties surrounding its Chapter 11 proceedings (see Note 3), that there was substantial doubt as to the Company’s ability to continue as a going concern as of the issuance of the Company’s 2020 Annual Report on Form 10-K. Based on the current status of the Chapter 11 Cases, including that the necessary regulatory approvals have been received, the Company is emerging from the Chapter 11 Cases on or about April 30, 2021 and, in so doing, eliminating approximately $ 11 billion in debt through the restructuring process, improving the Company’s capital structure and stabilizing its liquidity position. As such, as of the filing of this Quarterly Report on Form 10-Q, the substantial doubt as to the Company’s ability to continue as a going concern has been alleviated by the emergence from the Chapter 11 Cases. See Note 3 for more information. 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. The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all of our then-outstanding obligations under the Company’s amended and restated credit agreement, dated as of February 27, 2017 (as amended, the JPM Credit Agreement), the Company’s 8.000 % first lien secured notes due April 1, 2027 (the Original First Lien Notes), the Company’s 8.500 % second lien secured notes due April 1, 2026 (the Original Second Lien Notes), our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries. As of March 31, 2021, amounts that were outstanding under the JPM Credit Agreement, our Original First Lien Notes, and our Original Second Lien Notes have been repaid in full. We have reclassified our unsecured notes and debentures and the secured and unsecured debentures of our subsidiaries 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 (as defined herein), on our consolidated balance sheet as of March 31, 2021. For additional discussion related to our debt obligations, and details of our refinancing of our secured debt, refer to Note 10. |
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 an effort to reduce the economic impacts of COVID-19, the United States federal government has responded with multiple stimulus bills. Given the evolving nature of the pandemic and the response of multiple levels of government as well as the uncertainty of funding available for services provided, the full impact of the pandemic and response(s) to it on the Company are unknown at this time. In addition, some of the states we operate in (including California and New York) 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. State and federal governments may continue to ask companies to aid in pandemic response. While certain customers have taken advantage of our COVID-19 related relief programs, as of March 31, 2021, very few had past due balances beyond the point of normal disconnection. Frontier’s response to COVID-19 has included several operational safety precautions such as 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 March 31, 2021, 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. While overall the operational and financial impacts to Frontier of the COVID-19 pandemic for the three months ended March 31, 2021 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, this negative impact is offset by lower churn within our consumer and Small and Medium Business customers. 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. Taxes, Surcharges and Subsidies Frontier collects various taxes from its customers and remits the funds 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 $ 55 million and $ 49 million for the three months ended March 31, 2021 and 2020, respectively, and video franchise fees, which amounted to $ 6 million and $ 9 million for the three months ended March 31, 2021 and 2020, 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 is included in “Other assets” on our consolidated balance sheet as of both March 31, 2021 and December 31, 2020. These amounts represent Letters of Credit Obligations and a utility adequate assurance account that is required under bankruptcy rules. |
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. |
Liquidity And Financial Condi_2
Liquidity And Financial Condition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Liquidity And Financial Condition [Abstract] | |
Schedule Of Liabilities Subject To Compromise | ($ in millions) March 31, 2021 Accounts payable $ 65 Other current liabilities 59 Accounts payable, and other current liabilities 124 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 $ 11,570 |
Schedule Of Reorganization Items | For the three months ended ($ in millions) March 31, 2021 Professional fees and other bankruptcy related costs $ 25 Reorganization items, net $ 25 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | For the three months ended March 31, ($ in millions) 2021 2020 Data and Internet services $ 842 $ 932 Voice services 487 572 Video services 169 222 Other 95 117 Revenue from contracts with customers (1) 1,593 1,843 Subsidy and other revenue 83 90 Total revenue $ 1,676 $ 1,933 For the three months ended March 31, ($ in millions) 2021 2020 Consumer $ 844 $ 971 Commercial 749 872 Revenue from contracts with customers (1) 1,593 1,843 Subsidy and other revenue 83 90 Total revenue $ 1,676 $ 1,933 (1) Includes approximately $ 16 million and $ 17 million of lease revenue for the three months ended March 31, 2021 and 2020, respectively. |
Changes In Contract Assets And Contract Liabilities | Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2020 $ 6 $ 9 $ 58 $ 20 Revenue recognized included in opening contract balance ( 4 ) - ( 17 ) ( 2 ) Cash received, excluding amounts recognized as revenue - - 17 1 Balance at March 31, 2021 $ 2 $ 9 $ 58 $ 19 Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2019 $ 37 $ 8 $ 41 $ 21 Revenue recognized included in opening contract balance ( 9 ) - ( 21 ) ( 4 ) Cash received, excluding amounts recognized as revenue - - 25 5 Credits granted, excluding amounts recognized as revenue 1 - - - Reclassified between current and noncurrent - - 1 ( 1 ) Balance at March 31, 2020 $ 29 $ 8 $ 46 $ 21 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2021 (remaining nine months) $ 1,091 2022 712 2023 316 2024 110 2025 62 Thereafter 128 Total $ 2,419 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) March 31, 2021 December 31, 2020 Retail and wholesale $ 592 $ 608 Other 75 75 Less: Allowance for doubtful accounts ( 148 ) ( 130 ) Accounts receivable, net $ 519 $ 553 |
Schedule Of Allowance For Doubtful Accounts | For the three months ended March 31, ($ in millions) 2021 2020 Bad debt expense $ 10 $ 14 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) March 31, 2021 December 31, 2020 Property, plant and equipment $ 28,040 $ 27,695 Less: Accumulated depreciation ( 15,053 ) ( 14,764 ) Property, plant and equipment, net $ 12,987 $ 12,931 |
Schedule Of Depreciation Expense | For the three months ended March 31, ($ in millions) 2021 2020 Depreciation expense $ 308 $ 316 |
Other Intangibles (Tables)
Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Intangibles [Abstract] | |
Components Of Other Intangibles | March 31, 2021 December 31, 2020 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Other Intangibles: Customer base $ 4,332 $ ( 3,856 ) $ 476 $ 4,332 $ ( 3,781 ) $ 551 Trade name 122 - 122 122 - 122 Royalty agreement 72 ( 72 ) - 72 ( 68 ) 4 Total other intangibles $ 4,526 $ ( 3,928 ) $ 598 $ 4,526 $ ( 3,849 ) $ 677 |
Schedule Of Amortization Expense | For the three months ended March 31, ($ in millions) 2021 2020 Amortization expense $ 79 $ 99 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | March 31, 2021 December 31, 2020 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 16,769 $ 13,354 $ 16,769 $ 11,635 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | For the three months ended March 31, 2021 Principal Interest Rate at January 1, Payments New March 31, March 31, ($ in millions) 2021 and Retirements Borrowings 2021 2021* Secured debt issued by Frontier $ 4,964 $ - $ - $ 4,964 5.75 % Unsecured debt issued by Frontier 10,949 - - 10,949 9.19 % 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 $ 16,769 $ - $ - $ 16,769 8.07 % Less: Debt Issuance Costs - - Less: Debt Discount ( 39 ) ( 38 ) Debt, less unamortized debt issuance costs and discounts 16,730 16,731 Less: Current Portion ( 5,781 ) ( 5,782 ) Less: Debt subject to compromise ( 10,949 ) ( 10,949 ) Total Long-term debt $ - $ - * Interest rate includes amortization of debt issuance costs and debt discounts. The interest rates at March 31, 2021 represent a weighted average of multiple issuances. |
Schedule Of Unsecured Debt | March 31, 2021 December 31, 2020 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier DIP-to-Exit term loan due 10/8/2027 $ 1,250 5.750 % (Variable) $ 1,250 5.750 % (Variable) DIP-to-Exit First lien notes due 10/15/2027 1,150 5.875 % 1,150 5.875 % DIP-to-Exit First lien notes due 5/1/2028 1,550 5.000 % 1,550 5.000 % DIP-to-Exit Second lien notes due 5/1/2029 1,000 6.750 % 1,000 6.750 % IDRB due 5/1/2030 14 6.200 % 14 6.200 % Secured debt issued by Frontier 4,964 4,964 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 16,769 8.188 % (1) 16,769 8.188 % (1) Less: debt subject to compromise ( 10,949 ) ( 10,949 ) Total debt $ 5,820 5.944 % (1) $ 5,820 5.944 % (1) (1) Interest rate represents a weighted average of the stated interest rates of multiple issuances . |
Restructuring And Other Charg_2
Restructuring And Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Other Charges [Abstract] | |
Changes In Restructuring Reserve | ($ in millions) Balance at January 1, 2021 $ 2 Severance expense 2 Cash payments during the period ( 1 ) Balance at March 31, 2021 $ 3 |
Investment And Other Income (Ta
Investment And Other Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investment And Other Income [Abstract] | |
Components Of Investment And Other Income | For the three months ended March 31, ( $ in millions ) 2021 2020 Interest and dividend income $ - $ 2 Pension and OPEB benefit 1 1 All other, net 1 2 Total investment and other income, net $ 2 $ 5 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended March 31, 2021 2020 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % State income tax provisions, net of federal income tax expense (benefit) 8.7 ( 1.2 ) Changes in certain deferred tax balances 60.9 0.6 Interest expense deduction ( 36.7 ) - Restructuring cost 5.1 ( 3.4 ) Loss on disposal of Northwest Operations - ( 2.4 ) Tax reserve adjustment - ( 2.5 ) Shared-based payments - ( 0.7 ) Federal research and development tax credit - 0.6 All other, net 0.2 ( 0.9 ) Effective tax rate 59.2 % 11.1 % |
Net Earnings (Loss) Per Share (
Net Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net Earnings (Loss) Per Share [Abstract] | |
Calculation Of Net Earnings (Loss) Per Share | For the three months ended March 31, ( $ in millions and shares in thousands, except per share amounts ) 2021 2020 Net income (loss) used for basic and diluted earnings (loss) per share: Total basic net income (loss) attributable to Frontier common shareholders $ 60 $ ( 186 ) Effect of loss related to dilutive stock units - - Total diluted net income (loss) attributable to Frontier common shareholders $ 60 $ ( 186 ) Basic earnings (loss) per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 104,786 105,060 Less: Weighted average unvested restricted stock awards ( 230 ) ( 697 ) Total weighted average shares outstanding - basic 104,556 104,363 Basic net earnings (loss) per share attributable to Frontier common shareholders $ 0.57 $ ( 1.78 ) Diluted earnings (loss) per share: Total weighted average shares outstanding - basic 104,556 104,363 Effect of dilutive stock units 340 - Total weighted average shares outstanding - diluted 104,896 104,363 Diluted net earnings (loss) per share attributable to Frontier common shareholders $ 0.57 $ ( 1.78 ) |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 304 $ 6.78 $ - Restricted stock granted - $ - $ - Restricted stock vested ( 41 ) $ 8.23 $ - Restricted stock forfeited ( 109 ) $ 8.23 Balance at March 31, 2021 154 $ 5.38 $ - |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net Of Tax | Pension OPEB ($ in millions) Costs Costs Total Balance at January 1, 2021 (1) $ ( 699 ) $ ( 56 ) $ ( 755 ) Other comprehensive income (loss) before reclassifications - - - Amounts reclassified from accumulated other comprehensive loss to net income 14 ( 3 ) 11 Net current-period other comprehensive income (loss) 14 ( 3 ) 11 Balance at March 31, 2021 (1) $ ( 685 ) $ ( 59 ) $ ( 744 ) Pension OPEB ($ in millions) Costs Costs Total Balance at January 1, 2020 (1) $ ( 684 ) $ 34 $ ( 650 ) Other comprehensive income (loss) before reclassifications 1 - 1 Amounts reclassified from accumulated other comprehensive loss to net loss 90 ( 5 ) 85 Net current-period other comprehensive income (loss) 91 ( 5 ) 86 Balance at March 31, 2020 (1) $ ( 593 ) $ 29 $ ( 564 ) (1) Pension and OPEB amounts are net of tax of $ 234 million and $ 204 million as of January 1, 2021 and 2020, respectively and $ 230 million and $ 176 million as of March 31, 2021 and 2020, respectively. |
Reclassification Out Of AOCI | Amount Reclassified from Accumulated Other Comprehensive Loss (1) ($ in millions) Affected Line Item in For the three months ended the Statement Where Details about Accumulated Other March 31, Net Income (Loss) Comprehensive Loss Components 2021 2020 is Presented Amortization of Pension Cost Items (2) Actuarial gains (losses) $ ( 18 ) $ ( 17 ) Pension settlement costs - ( 103 ) ( 18 ) ( 120 ) Income (Loss) before income taxes Tax impact 4 30 Income tax benefit $ ( 14 ) $ ( 90 ) Net income (loss) Amortization of OPEB Cost Items (2) Prior-service costs $ 7 $ 8 Actuarial gains (losses) ( 3 ) ( 2 ) 4 6 Income (Loss) before income taxes Tax impact ( 1 ) ( 1 ) Income tax benefit $ 3 $ 5 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) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Plans [Abstract] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended March 31, ( $ in millions ) 2021 2020 Components of total pension benefit cost Service cost $ 24 $ 25 Interest cost on projected benefit obligation 23 30 Expected return on plan assets ( 45 ) ( 50 ) Amortization of unrecognized loss 18 17 Net periodic pension benefit cost 20 22 Pension settlement costs - 103 Total pension benefit cost $ 20 $ 125 Postretirement Benefits For the three months ended March 31, ( $ in millions ) 2021 2020 Components of net periodic postretirement benefit cost Service cost $ 5 $ 5 Interest cost on projected benefit obligation 7 8 Amortization of prior service cost (credit) ( 7 ) ( 8 ) Amortization of unrecognized (gain) loss 3 2 Net periodic postretirement benefit cost $ 8 $ 7 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021USD ($)statesegment | Mar. 31, 2020USD ($) | Apr. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 19, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 58 | $ 58 | |||
Expected customer life | 4 years | ||||
Customer surcharges | $ 55 | $ 49 | |||
Video franchise fees | $ 6 | 9 | |||
Funding term | 7 years | ||||
Accumulated deficit | $ 8,915 | $ 8,975 | |||
Operating income | 259 | 272 | |||
Net income | $ 60 | $ (186) | |||
Number of reportable segments | segment | 1 | ||||
First Lien Notes due April 2027 [Member] | Secured Debt [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Interest rate | 8.00% | ||||
Maturity date | Apr. 1, 2027 | ||||
Second Lien Notes due 2026 [Member] | Secured Debt [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Interest rate | 8.50% | ||||
Second Lien Notes Due 4/1/2026 [Member] | Secured Debt [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Interest rate | 8.50% | ||||
Maturity date | Apr. 1, 2026 | ||||
Subsequent Event [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Eliminated debt | $ (11,000) | ||||
CAF Phase II [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of states of operation | state | 25 |
Liquidity And Financial Condi_3
Liquidity And Financial Condition (Narrative) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Mar. 01, 2021 | Nov. 25, 2020 | Oct. 08, 2020 | Aug. 27, 2020 | May 15, 2020 | May 01, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Reorganization [Line Items] | |||||||||
Unrestricted balance sheet excess cash | $ 150 | ||||||||
Excess cash | $ 1,313 | ||||||||
Principal Outstanding | $ 16,769 | $ 16,769 | |||||||
JP Morgan Revolving Credit Facility [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Maturity date | Feb. 27, 2024 | ||||||||
Debt instrument, face amount | $ 850 | ||||||||
JP Morgan Term Loan B [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Maturity date | Jun. 15, 2024 | ||||||||
Debt instrument, face amount | $ 1,740 | ||||||||
Secured Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Principal Outstanding | 4,964 | 4,964 | |||||||
Unsecured Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Principal Outstanding | 10,949 | 10,949 | |||||||
Secured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Principal Outstanding | 106 | 106 | |||||||
Unsecured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Takeback Debt, Principal amount | $ 750 | ||||||||
Principal Outstanding | 750 | $ 750 | |||||||
Original First Lien Notes [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Debt instrument, face amount | $ 1,650 | ||||||||
Original Second Lien Notes [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 8.50% | ||||||||
Maturity date | Apr. 1, 2026 | ||||||||
Debt instrument, face amount | $ 1,600 | ||||||||
DIP Revolving Facility [Member] | |||||||||
Reorganization [Line Items] | |||||||||
DIP, Maximum line of credit | 625 | $ 460 | $ 625 | ||||||
DIP Term Loan Facility [Member] | |||||||||
Reorganization [Line Items] | |||||||||
DIP, Maximum line of credit | $ 750 | $ 500 | |||||||
Debenture Due 5/15/2027 [Member] | Unsecured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 6.75% | ||||||||
Maturity date | May 15, 2027 | ||||||||
Debenture Due 2/1/2028 [Member] | Unsecured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 6.86% | ||||||||
Maturity date | Feb. 1, 2028 | ||||||||
Debenture Due 2/15/2028 [Member] | Unsecured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 6.73% | ||||||||
Maturity date | Feb. 15, 2028 | ||||||||
Debenture Due 10/15/2029 [Member] | Unsecured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 8.40% | ||||||||
Maturity date | Oct. 15, 2029 | ||||||||
Debenture Due 11/15/2031 [Member] | Secured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 8.50% | ||||||||
Maturity date | Nov. 15, 2031 | ||||||||
First Lien Secured Notes Due 10/15/27 [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 5.875% | ||||||||
Maturity date | Oct. 15, 2027 | ||||||||
Principal Outstanding | $ 1,150 | ||||||||
First Lien Notes Due May 2028 [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 5.00% | ||||||||
Maturity date | May 1, 2028 | ||||||||
Principal Outstanding | $ 1,550 | ||||||||
Second Lien Notes Due May 2029 [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Interest rate | 6.75% | ||||||||
Maturity date | May 1, 2029 | ||||||||
Principal Outstanding | $ 1,000 | ||||||||
Subsequent Event [Member] | Term Loan B [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Payments to holders | $ 48 | ||||||||
Subsequent Event [Member] | Original First Lien Notes [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Payments to holders | 9 | ||||||||
Subsequent Event [Member] | Term Loan B, Second Payment [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Payments to holders | $ 8 | ||||||||
Maximum [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Maturity period | 8 years | ||||||||
Maximum [Member] | Secured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Reorganization plan, Interest rate | 2.50% | ||||||||
Maximum [Member] | Unsecured Subsidiary Debt [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Reorganization plan, Interest rate | 3.50% | ||||||||
Minimum [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Maturity period | 1 year | ||||||||
Minimum [Member] | Subsequent Event [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Percentage of debt held by the Consenting Noteholders | 50.10% | ||||||||
Northwest Operations [Member] | |||||||||
Reorganization [Line Items] | |||||||||
Net proceeds | $ 1,131 | ||||||||
Net after-tax cash proceeds | $ 1,129 |
Liquidity And Financial Condi_4
Liquidity And Financial Condition (Schedule Of Liabilities Subject To Compromise) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Liquidity And Financial Condition [Abstract] | ||
Accounts payable | $ 65 | |
Other current liabilities | 59 | |
Accounts payable and other current liabilities | 124 | |
Debt subject to compromise | 10,949 | $ 10,949 |
Accrued interest on debt subject to compromise | 497 | |
Long-term debt and accrued interest | 11,446 | |
Liabilities subject to compromise | $ 11,570 | $ 11,565 |
Liquidity And Financial Condi_5
Liquidity And Financial Condition (Schedule Of Reorganization Items) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Liquidity And Financial Condition [Abstract] | |
Professional fees and other bankruptcy related costs | $ 25 |
Reorganization items, net | $ 25 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1,593 | $ 1,843 |
Subsidy and other revenue | 83 | 90 |
Total revenue | 1,676 | 1,933 |
Lease revenue | 16 | 17 |
Revenue, Remaining Performance Obligation, Amount | 2,419 | |
Data And Internet Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 842 | 932 |
Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 487 | 572 |
Video Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 169 | 222 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 95 | 117 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 844 | 971 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 749 | $ 872 |
Revenue Recognition (Changes In
Revenue Recognition (Changes In Contract Assets And Contract Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Recognition [Abstract] | ||
Contract current assets, Beginning balance | $ 6 | $ 37 |
Contract current assets, Revenue recognized included in opening contract balance | (4) | (9) |
Contract current assets, Credits granted, excluding amounts recognized as revenue | 1 | |
Contract current assets, Ending balance | 2 | 29 |
Contract noncurrent assets, Beginning balance | 9 | 8 |
Contract noncurrent assets, Ending balance | 9 | 8 |
Contract current liabilities, Beginning balance | 58 | 41 |
Contract current liabilities, Revenue recognized included in opening contract balance | (17) | (21) |
Contract current liabilities, Cash received, excluding amounts recognized as revenue | 17 | 25 |
Contract current liabilities, Reclassified between Current and NonCurrent | 1 | |
Contract current liabilities, Ending balance | 58 | 46 |
Contract noncurrent liabilities, Beginning balance | 20 | 21 |
Contract noncurrent liabilities, Revenue recognized included in opening contract balance | (2) | (4) |
Contract noncurrent liabilities, Cash received, excluding amounts recognized as revenue | 1 | 5 |
Contract noncurrent liabilities, Reclassified between Current and NonCurrent | (1) | |
Contract noncurrent liabilities, Ending balance | $ 19 | $ 21 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 2,419 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 1,091 |
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 remaining performance obligations | $ 712 |
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 remaining performance obligations | $ 316 |
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 remaining performance obligations | $ 110 |
Performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 128 |
Performance obligation satisfaction period | 1 year |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounts Receivable [Abstract] | |
Provision for uncollectible amounts | $ 96 |
Accounts receivable under dispute | $ 128 |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (148) | $ (130) |
Accounts receivable, net | 519 | 553 |
Retail And Wholesale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 592 | 608 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 75 | $ 75 |
Accounts Receivable (Schedule O
Accounts Receivable (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable [Abstract] | ||
Bad debt expense | $ 10 | $ 14 |
Property, Plant, And Equipment
Property, Plant, And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant And Equipment [Abstract] | ||
Property, plant and equipment | $ 28,040 | $ 27,695 |
Less: Accumulated depreciation | (15,053) | (14,764) |
Property, plant and equipment, net | $ 12,987 | $ 12,931 |
Property, Plant, And Equipmen_2
Property, Plant, And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Depreciation [Abstract] | ||
Depreciation expense | $ 308 | $ 316 |
Other Intangibles (Narrative) (
Other Intangibles (Narrative) (Details) - Customer Base [Member] | 3 Months Ended |
Mar. 31, 2021 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 8 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 12 years |
Other Intangibles (Components O
Other Intangibles (Components Of Other Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite | $ 4,526 | $ 4,526 |
Accumulated Amortization | (3,928) | (3,849) |
Net Carrying Amount | 598 | 677 |
Trade Name [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite | 122 | 122 |
Net Carrying Amount | 122 | 122 |
Customer Base [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite | 4,332 | 4,332 |
Accumulated Amortization | (3,856) | (3,781) |
Net Carrying Amount | 476 | 551 |
Royalty Agreement [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount, Finite | 72 | 72 |
Accumulated Amortization | $ (72) | (68) |
Net Carrying Amount | $ 4 |
Other Intangibles (Schedule Of
Other Intangibles (Schedule Of Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Intangibles [Abstract] | ||
Amortization expense | $ 79 | $ 99 |
Divestiture Of Northwest Oper_2
Divestiture Of Northwest Operations (Narrative) (Details) - USD ($) $ in Millions | May 01, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Escrow held | $ 27 | |||
Escrow received | 25 | |||
Working capital | $ 5 | |||
Fair value of transition services | $ 30 | |||
Net assets | $ 1,132 | |||
Property, plant, and equipment, Derecognized | 1,084 | |||
Goodwill, Derecognized | 658 | |||
Valuation allowance, Derecognized | 603 | |||
Defined benefit pension and other postretirement benefit plan obligations, Derecognized | 150 | |||
Loss on disposal of Northwest Operations | $ 24 | |||
Northwest Operations [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Gross proceeds from divestiture | 1,352 | |||
Net proceeds | $ 1,131 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Of Financial Instruments [Abstract] | ||
Liabilities Subject To Compromise Debt | $ 10,949 | $ 10,949 |
Long-term Debt, Fair Value | $ 10,949 | $ 10,949 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Long-term debt [Abstract] | ||
Total debt | $ 10,949 | $ 10,949 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Total debt | 16,769 | 16,769 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 13,354 | $ 11,635 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 14, 2021 | Nov. 25, 2020 | Oct. 08, 2020 | May 15, 2020 | Jul. 03, 2018 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 15, 2019 | Mar. 19, 2018 |
Debt Instrument [Line Items] | ||||||||||
Payment to retire debt instruments | ||||||||||
Remaining outstanding principal | 16,769 | $ 16,769 | ||||||||
DIP Revolving Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
DIP, Letters of credit outstanding | $ 90 | |||||||||
DIP, Remaining borrowing capacity | 535 | |||||||||
DIP, Maximum line of credit | 625 | $ 460 | $ 625 | |||||||
DIP Revolving Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 3.25% | |||||||||
DIP Revolving Facility [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 2.25% | |||||||||
DIP Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
DIP, Maximum line of credit | $ 750 | 500 | ||||||||
DIP Term Loan Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 4.75% | |||||||||
DIP Term Loan Facility [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 3.75% | |||||||||
DIP Term Loan Facility [Member] | LIBOR Floor Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 1.00% | |||||||||
Exit Agreement (The Incremental DIP Term Loan Amendment) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
DIP, Maximum line of credit | 750 | |||||||||
Term Loan Due 06/15/2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from long-term debt borrowings | $ 240 | |||||||||
Secured Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining outstanding principal | $ 4,964 | $ 4,964 | ||||||||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,600 | |||||||||
Interest rate | 8.50% | |||||||||
Debt Instrument, Maturity Date | Apr. 1, 2026 | |||||||||
Secured Debt [Member] | First Lien Notes Due 4/1/2027 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,650 | |||||||||
Interest rate | 8.00% | |||||||||
Debt Instrument, Maturity Date | Apr. 1, 2027 | |||||||||
Secured Debt [Member] | DIP-to-Exit First Lien Notes Due 10/15/2027 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.875% | 5.875% | ||||||||
Debt Instrument, Maturity Date | Oct. 15, 2027 | |||||||||
Remaining outstanding principal | $ 1,150 | $ 1,150 | $ 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% | |||||||||
Secured Debt [Member] | DIP-to-Exit First lien notes due 05/01/2028 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 1,550 | |||||||||
Interest rate | 5.00% | 5.00% | ||||||||
Debt Instrument, Maturity Date | May 1, 2028 | |||||||||
Remaining outstanding principal | $ 1,550 | $ 1,550 | ||||||||
Maximum percent of redeemable notes | 40.00% | |||||||||
Percent of redemption price equal to principal amount | 105.00% | |||||||||
Percent of purchase price of the principal amount | 101.00% | |||||||||
Secured Debt [Member] | DIP-to-Exit Second Lien Notes Due 05/01/2029 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,000 | |||||||||
Interest rate | 6.75% | 6.75% | ||||||||
Debt Instrument, Maturity Date | May 1, 2029 | |||||||||
Remaining outstanding principal | $ 1,000 | $ 1,000 | ||||||||
Maximum percent of redeemable notes | 40.00% | |||||||||
Percent of redemption price equal to principal amount | 106.75% | |||||||||
Percent of purchase price of the principal amount | 101.00% | |||||||||
Unsecured Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining outstanding principal | $ 10,949 | $ 10,949 | ||||||||
JP Morgan Term Loan A [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 1,625 | |||||||||
JP Morgan Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 850 | |||||||||
Debt Instrument, Maturity Date | Feb. 27, 2024 | |||||||||
CoBank Term Loan 2016 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 315 | |||||||||
CoBank Term Loan 2014 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 350 | |||||||||
JP Morgan Term Loan B [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,740 | |||||||||
Debt Instrument, Maturity Date | Jun. 15, 2024 | |||||||||
Subsequent Event [Member] | Exit Revolving Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Period of conversion | 4 years | |||||||||
Line of credit facility maximum borrowing capacity | $ 625 | |||||||||
Subsequent Event [Member] | Exit Revolving Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 3.50% | |||||||||
Subsequent Event [Member] | Exit Revolving Facility [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 2.50% | |||||||||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | $ 1,250 | |||||||||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 3.75% | |||||||||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 2.75% | |||||||||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | LIBOR Floor Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin | 0.75% | |||||||||
Subsequent Event [Member] | Exit Agreement (The Incremental DIP Term Loan Amendment) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining outstanding principal | $ 225 | |||||||||
Subsequent Event [Member] | New Incremental Commitment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining outstanding principal | $ 225 |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Long-term debt, beginning balance | $ 16,769 | |
Payments and Retirements | ||
New Borrowings | ||
Long-term debt, ending balance | 16,769 | |
Less: Debt Issuance Costs | ||
Less: Debt Discount | (38) | (39) |
Debt, less unamortized debt issuance costs and discounts | 16,731 | 16,730 |
Less: Current Portion | (5,782) | (5,781) |
Less: Debt subject to compromise | (10,949) | (10,949) |
Total Long-Term Debt | ||
Interest Rate | 8.07% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, beginning balance | $ 4,964 | |
Long-term debt, ending balance | 4,964 | |
Secured Debt [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, beginning balance | 4,964 | |
Payments and Retirements | ||
New Borrowings | ||
Long-term debt, ending balance | $ 4,964 | |
Interest Rate | 5.75% | |
Secured Debt [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, beginning balance | $ 106 | |
Payments and Retirements | ||
New Borrowings | ||
Long-term debt, ending balance | $ 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 | |
Unsecured Debt [Member] | Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, beginning balance | 10,949 | |
Payments and Retirements | ||
New Borrowings | ||
Long-term debt, ending balance | $ 10,949 | |
Interest Rate | 9.19% | |
Unsecured Debt [Member] | Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, beginning balance | $ 750 | |
Payments and Retirements | ||
New Borrowings | ||
Long-term debt, ending balance | $ 750 | |
Interest Rate | 6.90% |
Long-Term Debt (Schedule Of Uns
Long-Term Debt (Schedule Of Unsecured Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Oct. 08, 2020 | Mar. 15, 2019 | Mar. 19, 2018 | |
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 16,769 | $ 16,769 | |||
Less: Debt subject to compromise | (10,949) | (10,949) | |||
Total Debt | $ 5,820 | $ 5,820 | |||
Weighted average interest rate | 5.944% | 5.944% | |||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 4,964 | $ 4,964 | |||
Secured Debt [Member] | First Lien Notes Due 4/1/2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Apr. 1, 2027 | ||||
Interest rate | 8.00% | ||||
Secured Debt [Member] | Second Lien Notes Due 4/1/2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Apr. 1, 2026 | ||||
Interest rate | 8.50% | ||||
Secured Debt [Member] | DIP-to-Exit term loan due 10/8/2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Oct. 8, 2027 | ||||
Principal Outstanding | $ 1,250 | $ 1,250 | |||
Interest rate | 5.75% | 5.75% | |||
Secured Debt [Member] | DIP-to-Exit First Lien Notes Due 10/15/2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Oct. 15, 2027 | ||||
Principal Outstanding | $ 1,150 | $ 1,150 | $ 1,150 | ||
Interest rate | 5.875% | 5.875% | |||
Secured Debt [Member] | DIP-to-Exit First lien notes due 05/01/2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | May 1, 2028 | ||||
Principal Outstanding | $ 1,550 | $ 1,550 | |||
Interest rate | 5.00% | 5.00% | |||
Secured Debt [Member] | DIP-to-Exit Second Lien Notes Due 05/01/2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | May 1, 2029 | ||||
Principal Outstanding | $ 1,000 | $ 1,000 | |||
Interest rate | 6.75% | 6.75% | |||
Secured Debt [Member] | IDRB due 5/1/2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | May 1, 2030 | ||||
Principal Outstanding | $ 14 | $ 14 | |||
Interest rate | 6.20% | 6.20% | |||
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] | |||||
Maturity date | Apr. 15, 2020 | ||||
Principal Outstanding | $ 172 | $ 172 | |||
Interest rate | 8.50% | 8.50% | |||
Unsecured Debt [Member] | Senior Note Due 9/15/2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Sep. 15, 2020 | ||||
Principal Outstanding | $ 55 | $ 55 | |||
Interest rate | 8.875% | 8.875% | |||
Unsecured Debt [Member] | Senior Note Due 7/1/2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jul. 1, 2021 | ||||
Principal Outstanding | $ 89 | $ 89 | |||
Interest rate | 9.25% | 9.25% | |||
Unsecured Debt [Member] | Senior Note Due 9/15/2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Sep. 15, 2021 | ||||
Principal Outstanding | $ 220 | $ 220 | |||
Interest rate | 6.25% | 6.25% | |||
Unsecured Debt [Member] | Senior Note Due 4/15/2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Apr. 15, 2022 | ||||
Principal Outstanding | $ 500 | $ 500 | |||
Interest rate | 8.75% | 8.75% | |||
Unsecured Debt [Member] | Senior Note Due 9/15/2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Sep. 15, 2022 | ||||
Principal Outstanding | $ 2,188 | $ 2,188 | |||
Interest rate | 10.50% | 10.50% | |||
Unsecured Debt [Member] | Senior Note Due 1/15/2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jan. 15, 2023 | ||||
Principal Outstanding | $ 850 | $ 850 | |||
Interest rate | 7.125% | 7.125% | |||
Unsecured Debt [Member] | Senior Note Due 4/15/2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Apr. 15, 2024 | ||||
Principal Outstanding | $ 750 | $ 750 | |||
Interest rate | 7.625% | 7.625% | |||
Unsecured Debt [Member] | Senior Note Due 1/15/2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jan. 15, 2025 | ||||
Principal Outstanding | $ 775 | $ 775 | |||
Interest rate | 6.875% | 6.875% | |||
Unsecured Debt [Member] | Senior Note Due 9/15/2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Sep. 15, 2025 | ||||
Principal Outstanding | $ 3,600 | $ 3,600 | |||
Interest rate | 11.00% | 11.00% | |||
Unsecured Debt [Member] | Debentures Due 11/1/2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Nov. 1, 2025 | ||||
Principal Outstanding | $ 138 | $ 138 | |||
Interest rate | 7.00% | 7.00% | |||
Unsecured Debt [Member] | Debentures Due 8/15/2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Aug. 15, 2026 | ||||
Principal Outstanding | $ 2 | $ 2 | |||
Interest rate | 6.80% | 6.80% | |||
Unsecured Debt [Member] | Senior Note Due 1/15/2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jan. 15, 2027 | ||||
Principal Outstanding | $ 346 | $ 346 | |||
Interest rate | 7.875% | 7.875% | |||
Unsecured Debt [Member] | Senior Note Due 8/15/2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Aug. 15, 2031 | ||||
Principal Outstanding | $ 945 | $ 945 | |||
Interest rate | 9.00% | 9.00% | |||
Unsecured Debt [Member] | Debentures Due 10/1/2034 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Oct. 1, 2034 | ||||
Principal Outstanding | $ 1 | $ 1 | |||
Interest rate | 7.68% | 7.68% | |||
Unsecured Debt [Member] | Debentures Due 7/1/2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jul. 1, 2035 | ||||
Principal Outstanding | $ 125 | $ 125 | |||
Interest rate | 7.45% | 7.45% | |||
Unsecured Debt [Member] | Debentures Due 10/1/2046 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Oct. 1, 2046 | ||||
Principal Outstanding | $ 193 | $ 193 | |||
Interest rate | 7.05% | 7.05% | |||
Secured Subsidiary Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 106 | $ 106 | |||
Secured Subsidiary Debt [Member] | Debentures Due 11/15/2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Nov. 15, 2031 | ||||
Principal Outstanding | $ 100 | $ 100 | |||
Interest rate | 8.50% | 8.50% | |||
Secured Subsidiary Debt [Member] | RUS Loan Contracts Due 1/3/2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jan. 3, 2028 | ||||
Principal Outstanding | $ 6 | $ 6 | |||
Interest rate | 6.154% | 6.154% | |||
Unsecured Subsidiary Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 750 | $ 750 | |||
Unsecured Subsidiary Debt [Member] | Senior Secured Debt Due 5/15/2027 | |||||
Debt Instrument [Line Items] | |||||
Maturity date | May 15, 2027 | ||||
Principal Outstanding | $ 200 | $ 200 | |||
Interest rate | 6.75% | 6.75% | |||
Unsecured Subsidiary Debt [Member] | Debentures Due 2/1/2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Feb. 1, 2028 | ||||
Principal Outstanding | $ 300 | $ 300 | |||
Interest rate | 6.86% | 6.86% | |||
Unsecured Subsidiary Debt [Member] | Debentures Due 2/15/2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Feb. 15, 2028 | ||||
Principal Outstanding | $ 200 | $ 200 | |||
Interest rate | 6.73% | 6.73% | |||
Unsecured Subsidiary Debt [Member] | Debentures Due 10/15/2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Oct. 15, 2029 | ||||
Principal Outstanding | $ 50 | $ 50 | |||
Interest rate | 8.40% | 8.40% | |||
Senior Secured Debt, Senior Unsecured Debt And Subsidiary Debentures [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Outstanding | $ 16,769 | $ 16,769 | |||
Weighted average interest rate | 8.188% | 8.188% |
Restructuring And Other Charg_3
Restructuring And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Restructuring And Other Charges [Abstract] | |||
Restructuring reserve | $ 3 | $ 2 | |
Restructuring costs | 2 | $ 48 | |
Transformation costs | 8 | ||
Severance costs | $ 2 | 2 | |
Consulting and advisory costs | $ 38 |
Restructuring And Other Charg_4
Restructuring And Other Charges (Changes In Restructuring Reserve) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring And Other Charges [Abstract] | ||
Restructuring Reserve, Beginning Balance | $ 2 | |
Severance expense | 2 | $ 2 |
Transformation initiative costs | $ 8 | |
Cash payments during the period | (1) | |
Restructuring Reserve, Ending Balance | $ 3 |
Investment And Other Income (Co
Investment And Other Income (Components Of Investment And Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investment And Other Income [Abstract] | ||
Interest and dividend income | $ 2 | |
Pension and OPEB benefit | $ 1 | 1 |
All other, net | 1 | 2 |
Total investment and other income, net | $ 2 | $ 5 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Federal rate | 21.00% | 21.00% | |
Expected income refunds | $ 13 | $ 13 | |
Valuation allowance | 138 | ||
Deferred payments related to social security taxes | 60 | ||
Valuation allowance, Net of federal benefit | $ 125 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes [Abstract] | ||
Consolidated tax provision at federal statutory rate | 21.00% | 21.00% |
State income tax provisions, net of federal income tax expense (benefit) | 8.70% | (1.20%) |
Changes in certain deferred tax balances | 60.90% | 0.60% |
Interest expense deduction | (36.70%) | |
Restructuring cost | 5.10% | (3.40%) |
Loss on disposal of Northwest Operations | (2.40%) | |
Tax reserve adjustment | (2.50%) | |
Share-based payments | (0.70%) | |
Federal research and development credit | 0.60% | |
All other, net | 0.20% | (0.90%) |
Effective tax rate | 59.20% | 11.10% |
Net Earnings (Loss) Per Share_2
Net Earnings (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | 1,344 |
Non-Employee Directors' Deferred Fee Plan and Equity Plan [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation of diluted earnings per share (in shares) | 0 | 339,544 |
Net Earnings (Loss) Per Share_3
Net Earnings (Loss) Per Share (Calculation Of Net Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Earnings (Loss) Per Share [Abstract] | ||
Total basic net income (loss) attributable to Frontier common shareholders | $ 60 | $ (186) |
Total diluted net loss attributable to Frontier common shareholders | $ 60 | $ (186) |
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 104,786 | 105,060 |
Less: Weighted average unvested restricted stock awards | (230) | (697) |
Total weighted average shares outstanding - basic | 104,556 | 104,363 |
Basic net loss per share attributable to Frontier common shareholders | $ 0.57 | $ (1.78) |
Total weighted average shares outstanding - basic | 104,556 | 104,363 |
Effect of dilutive stock units | 340 | |
Total weighted average shares outstanding - diluted | 104,896 | 104,363 |
Diluted net loss per share attributable to Frontier common shareholders | $ 0.57 | $ (1.78) |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)ShareBasedCompensationPlanshares | |
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 available for grant under the plan (in shares) | 3,754,000 |
Shares authorized for grant under the plans (in shares) | 5,667,000 |
Minimum [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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] | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 304,000 |
Restricted stock vested (in shares) | shares | (41,000) |
Restricted stock forfeited (in shares) | shares | (109,000) |
Balance at end of period (in shares) | shares | 154,000 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 6.78 |
Restricted stock vested (in dollars per shares) | $ / shares | 8.23 |
Restricted stock forfeited (in dollars per shares) | $ / shares | 8.23 |
Balance at end of period (in dollars per shares) | $ / shares | $ 5.38 |
Comprehensive Income (Loss) (Ac
Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss), Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ (4,900) | $ (4,394) | ||
Net current-period other comprehensive income (loss) | 11 | 86 | ||
Balance | (4,830) | (4,493) | ||
Pension Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (699) | (684) | ||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 14 | 90 | ||
Net current-period other comprehensive income (loss) | 14 | 91 | ||
Balance | (685) | (593) | ||
Postretirement Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (56) | 34 | ||
Other comprehensive income (loss) before reclassifications | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (3) | (5) | ||
Net current-period other comprehensive income (loss) | (3) | (5) | ||
Balance | (59) | 29 | ||
Deferred Taxes On Pension And OPEB Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Deferred tax items | 230 | 176 | $ 234 | $ 204 |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (755) | (650) | ||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 11 | 85 | ||
Net current-period other comprehensive income (loss) | 11 | 86 | ||
Balance | $ (744) | $ (564) |
Comprehensive Income (Loss) (Re
Comprehensive Income (Loss) (Reclassification Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, net of tax | $ (14) | $ (90) |
Postretirement Costs [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, net of tax | 3 | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Costs [Member] | Amortization Of Defined Benefit Cost Items [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | (18) | (120) |
Tax impact | 4 | 30 |
Reclassifications, net of tax | (14) | (90) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Costs [Member] | Actuarial Gains (Losses) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | (18) | (17) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Costs [Member] | Pension Settlement Cost [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | (103) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Amortization Of Defined Benefit Cost Items [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | 4 | 6 |
Tax impact | (1) | (1) |
Reclassifications, net of tax | 3 | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Prior-Service Credits (Costs) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | 7 | 8 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Postretirement Costs [Member] | Actuarial Gains (Losses) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications, pretax | $ (3) | $ (2) |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
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 | $ 6,000,000 | $ 7,000,000 | |
Contributions to plans | $ 27,000,000 | ||
Remaining required plan contributions for fiscal year | 120,000,000 | ||
Plan contributions required for fiscal year | 147,000,000 | ||
Pension Costs [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Settlements Benefit obligation threshold | 211,000,000 | ||
Pension settlement costs | 103,000,000 | ||
Contributions to plans | 0 | ||
Decrease in plan assets | (23,000,000) | ||
Plan contributions required for fiscal year | 95,000,000 | 180,000,000 | |
Plan assets | $ 2,507,000,000 | 2,484,000,000 | |
Investment returns | (1,000,000) | ||
Settlements | $ 310,000,000 | ||
Northwest Operations [Member] | Pension Costs [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit payments | 19,000,000 | ||
Plan expenses | $ 5,000,000 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total benefit cost | $ 20 | $ 125 |
Pension Costs [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 24 | 25 |
Interest cost on projected benefit obligation | 23 | 30 |
Expected return on plan assets | (45) | (50) |
Amortization of unrecognized (gain) loss | 18 | 17 |
Net periodic benefit cost | 20 | 22 |
Pension settlement costs | 103 | |
Postretirement Benefits Other Than Pensions (OPEB) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 5 | 5 |
Interest cost on projected benefit obligation | 7 | 8 |
Amortization of prior service credit | (7) | (8) |
Amortization of unrecognized (gain) loss | 3 | 2 |
Net periodic benefit cost | $ 8 | $ 7 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | Dec. 07, 2020USD ($)itemshares | Jan. 30, 2020USD ($) | Mar. 31, 2021USD ($)state |
CAF Phase II [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of states of operation | state | 25 | ||
Annual support offered by the Federal Communications Commission | $ 313 | ||
RDOF Program, Phase I [Member] | |||
Commitments And Contingencies [Line Items] | |||
Award amount | $ 371 | ||
Period to build gigabit capable broadband | 10 years | ||
Number of location to build gigabit capable broadband | item | 127,000 | ||
Number of states to build gigabit capable broadband | shares | 8 | ||
Minimum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Terms of lease arrangements | 1 year | ||
Minimum [Member] | RDOF Program, Phase II [Member] | |||
Commitments And Contingencies [Line Items] | |||
Annual support offered by the Federal Communications Commission | $ 11,200 | ||
Maximum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Terms of lease arrangements | 99 years |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Millions | Apr. 14, 2021 | Mar. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||
Remaining outstanding principal | $ 16,769 | $ 16,769 | ||
LIBOR [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 4.75% | |||
Base Rate [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 3.75% | |||
LIBOR Floor Rate [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 1.00% | |||
Subsequent Event [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility maximum borrowing capacity | $ 1,250 | |||
Subsequent Event [Member] | New Incremental Commitment [Member] | ||||
Subsequent Event [Line Items] | ||||
Remaining outstanding principal | $ 225 | |||
Subsequent Event [Member] | Exit Agreement (The Incremental DIP Term Loan Amendment) [Member] | ||||
Subsequent Event [Line Items] | ||||
Remaining outstanding principal | $ 225 | |||
Subsequent Event [Member] | Exit Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility maximum borrowing capacity | $ 1,475 | |||
Subsequent Event [Member] | LIBOR [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 3.75% | |||
Subsequent Event [Member] | LIBOR [Member] | Refinancing And Incremental Amendment [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 3.75% | |||
Subsequent Event [Member] | Base Rate [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 2.75% | |||
Subsequent Event [Member] | Base Rate [Member] | Refinancing And Incremental Amendment [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 2.75% | |||
Subsequent Event [Member] | LIBOR Floor Rate [Member] | DIP Term Loan Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 0.75% | |||
Subsequent Event [Member] | LIBOR Floor Rate [Member] | Refinancing And Incremental Amendment [Member] | ||||
Subsequent Event [Line Items] | ||||
Interest rate margin | 0.75% |