Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-11001 | |
Entity Registrant Name | FRONTIER COMMUNICATIONS PARENT, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-2359794 | |
Entity Address, Address Line One | 1919 McKinney Avenue | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 972 | |
Local Phone Number | 445-0042 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | FYBR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 245,789,000 | |
Entity Central Index Key | 0000020520 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 948 | $ 322 |
Short-term investments | 1,275 | 1,750 |
Accounts receivable, less allowances of $33 and $47, respectively | 449 | 438 |
Prepaid expenses | 79 | 57 |
Income taxes and other current assets | 47 | 30 |
Total current assets | 2,798 | 2,597 |
Property, plant and equipment, net | 13,621 | 11,850 |
Other intangibles, net | 3,665 | 3,906 |
Other assets | 425 | 271 |
Total assets | 20,509 | 18,624 |
Current liabilities: | ||
Long-term debt due within one year | 15 | 15 |
Accounts payable | 885 | 1,410 |
Advanced billings | 202 | 194 |
Accrued other taxes | 131 | 137 |
Accrued interest | 183 | 104 |
Pension and other postretirement benefits | 39 | 39 |
Other current liabilities | 596 | 396 |
Total current liabilities | 2,051 | 2,295 |
Deferred income taxes | 565 | 558 |
Pension and other postretirement benefits | 866 | 1,044 |
Other liabilities | 529 | 483 |
Long-term debt | 11,258 | 9,110 |
Total liabilities | 15,269 | 13,490 |
Equity: | ||
Common stock, $0.01 par value (1,750,000 authorized shares, 245,782 and 245,021 issued and outstanding at September 30, 2023 and December 31, 2022, respectively) | 2 | 2 |
Additional paid-in capital | 4,271 | 4,198 |
Retained earnings | 867 | 855 |
Accumulated other comprehensive income, net of tax | 100 | 79 |
Total equity | 5,240 | 5,134 |
Total liabilities and equity | $ 20,509 | $ 18,624 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 33 | $ 47 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,750,000 | 1,750,000 |
Common stock, shares issued (in shares) | 245,782 | 245,021 |
Common stock, shares outstanding (in shares) | 245,782 | 245,021 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements Of Income [Abstract] | ||||
Revenue | $ 1,436 | $ 1,444 | $ 4,325 | $ 4,350 |
Operating expenses: | ||||
Cost of service | 545 | 544 | 1,615 | 1,643 |
Selling, general, and administrative expenses | 405 | 431 | 1,250 | 1,293 |
Depreciation and amortization | 356 | 296 | 1,040 | 870 |
Restructuring costs and other charges | 16 | 4 | 48 | 88 |
Total operating expenses | 1,322 | 1,275 | 3,953 | 3,894 |
Operating income | 114 | 169 | 372 | 456 |
Investment and other income, net (See Note 10) | 67 | 211 | 101 | 410 |
Pension settlement costs | (50) | (50) | ||
Interest expense | (170) | (135) | (460) | (356) |
Income before income taxes | 11 | 195 | 13 | 460 |
Income tax expense | 75 | 1 | 174 | |
Net income | $ 11 | $ 120 | $ 12 | $ 286 |
Basic net earnings per share attributable to Frontier common shareholders | $ 0.05 | $ 0.49 | $ 0.05 | $ 1.17 |
Diluted net earnings per share attributable to Frontier common shareholders | $ 0.05 | $ 0.49 | $ 0.05 | $ 1.17 |
Total weighted average shares outstanding - basic | 245,761 | 244,984 | 245,431 | 244,711 |
Total weighted average shares outstanding - diluted | 247,447 | 245,212 | 247,336 | 245,080 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income | $ 11 | $ 120 | $ 12 | $ 286 |
Other comprehensive income (loss), net of tax | 8 | (2) | 21 | |
Comprehensive income | $ 19 | $ 118 | $ 33 | $ 286 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at beginning at Dec. 31, 2021 | $ 2 | $ 4,124 | $ 414 | $ 60 | $ 4,600 |
Balance (in shares) at Dec. 31, 2021 | 244,416 | ||||
Stock plans, net | 15 | 15 | |||
Stock plans, net (in shares) | 60 | ||||
Net income | 65 | 65 | |||
Other comprehensive income (loss), net of tax | (2) | (2) | |||
Balance at ending at Mar. 31, 2022 | $ 2 | 4,139 | 479 | 58 | 4,678 |
Balance (in shares) at Mar. 31, 2022 | 244,476 | ||||
Balance at beginning at Dec. 31, 2021 | $ 2 | 4,124 | 414 | 60 | 4,600 |
Balance (in shares) at Dec. 31, 2021 | 244,416 | ||||
Net income | 286 | ||||
Balance at ending at Sep. 30, 2022 | $ 2 | 4,171 | 700 | 60 | 4,933 |
Balance (in shares) at Sep. 30, 2022 | 244,999 | ||||
Balance at beginning at Mar. 31, 2022 | $ 2 | 4,139 | 479 | 58 | 4,678 |
Balance (in shares) at Mar. 31, 2022 | 244,476 | ||||
Stock plans, net | 13 | 13 | |||
Stock plans, net (in shares) | 493 | ||||
Net income | 101 | 101 | |||
Other comprehensive income (loss), net of tax | 4 | 4 | |||
Balance at ending at Jun. 30, 2022 | $ 2 | 4,152 | 580 | 62 | 4,796 |
Balance (in shares) at Jun. 30, 2022 | 244,969 | ||||
Stock plans, net | 19 | 19 | |||
Stock plans, net (in shares) | 30 | ||||
Net income | 120 | 120 | |||
Other comprehensive income (loss), net of tax | (2) | (2) | |||
Balance at ending at Sep. 30, 2022 | $ 2 | 4,171 | 700 | 60 | 4,933 |
Balance (in shares) at Sep. 30, 2022 | 244,999 | ||||
Balance at beginning at Dec. 31, 2022 | $ 2 | 4,198 | 855 | 79 | 5,134 |
Balance (in shares) at Dec. 31, 2022 | 245,021 | ||||
Stock plans, net | 22 | 22 | |||
Stock plans, net (in shares) | 211 | ||||
Net income | 3 | 3 | |||
Other comprehensive income (loss), net of tax | 4 | 4 | |||
Balance at ending at Mar. 31, 2023 | $ 2 | 4,220 | 858 | 83 | 5,163 |
Balance (in shares) at Mar. 31, 2023 | 245,232 | ||||
Balance at beginning at Dec. 31, 2022 | $ 2 | 4,198 | 855 | 79 | 5,134 |
Balance (in shares) at Dec. 31, 2022 | 245,021 | ||||
Net income | 12 | ||||
Other comprehensive income (loss), net of tax | 21 | ||||
Balance at ending at Sep. 30, 2023 | $ 2 | 4,271 | 867 | 100 | 5,240 |
Balance (in shares) at Sep. 30, 2023 | 245,782 | ||||
Balance at beginning at Mar. 31, 2023 | $ 2 | 4,220 | 858 | 83 | 5,163 |
Balance (in shares) at Mar. 31, 2023 | 245,232 | ||||
Stock plans, net | 22 | 22 | |||
Stock plans, net (in shares) | 512 | ||||
Net income | (2) | (2) | |||
Other comprehensive income (loss), net of tax | 9 | 9 | |||
Balance at ending at Jun. 30, 2023 | $ 2 | 4,242 | 856 | 92 | 5,192 |
Balance (in shares) at Jun. 30, 2023 | 245,744 | ||||
Stock plans, net | 29 | 29 | |||
Stock plans, net (in shares) | 38 | ||||
Net income | 11 | 11 | |||
Other comprehensive income (loss), net of tax | 8 | 8 | |||
Balance at ending at Sep. 30, 2023 | $ 2 | $ 4,271 | $ 867 | $ 100 | $ 5,240 |
Balance (in shares) at Sep. 30, 2023 | 245,782 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows provided from (used by) operating activities: | ||
Net Income | $ 12 | $ 286 |
Adjustments to reconcile net income to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 1,040 | 870 |
Pension settlement costs | 50 | |
Stock-based compensation expense | 81 | 54 |
Lease Impairment | 44 | |
Amortization of premium | (21) | (21) |
Bad debt expense | 24 | 19 |
Other adjustments | 9 | 1 |
Deferred income taxes | (1) | 167 |
Change in accounts receivable | (35) | 16 |
Change in long-term pension and other postretirement liabilities | (149) | (527) |
Change in accounts payable and other liabilities | 101 | 94 |
Change in prepaid expenses, income taxes, and other assets | (13) | (12) |
Net cash provided from operating activities | 1,048 | 1,041 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures | (2,882) | (1,860) |
Purchase of short-term investments | (1,850) | (3,225) |
Sale of short-term investments | 2,325 | 900 |
Purchase of long-term investments | (63) | |
Proceeds on sale of assets | 18 | 4 |
Other | 1 | 3 |
Net cash (used by) investing activities | (2,451) | (4,178) |
Cash flows provided from (used by) financing activities: | ||
Long-term debt principal payments | (64) | (11) |
Net proceeds from long-term debt borrowings | 2,278 | 1,200 |
Premium paid to retire debt | (10) | |
Financing costs paid | (56) | (17) |
Finance lease obligation payments | (18) | (15) |
Proceeds from sale and lease-back transactions | 21 | 70 |
Taxes paid on behalf of employees for shares withheld | (9) | (7) |
Other | (7) | (1) |
Net cash provided from financing activities | 2,135 | 1,219 |
Increase (Decrease) in cash, cash equivalents, and restricted cash | 732 | (1,918) |
Cash, cash equivalents, and restricted cash at January 1, | 322 | 2,178 |
Cash, cash equivalents, and restricted cash at September 30, | 1,054 | 260 |
Supplemental cash flow information: Cash paid during the period for: | ||
Interest | 449 | 286 |
Income tax payments, net | $ 1 | $ 7 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | (1) Summary of Significant Accounti ng Policies : a) Basis of Presentation and Use of Estimates : Frontier Communications Parent, Inc. 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, 2022. 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, and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, business, and wholesale customers and is typically the incumbent voice services provider in its service areas. Certain reclassifications of prior period balances have been made to conform to the current period presentation. For our interim financial statements as of and for the period ended September 30, 2023, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (“SEC”). The preparation of our interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the application of allowance for credit losses, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, and pension and other postretirement benefits, among others. b) Revenue Recognition : Revenue for data and Internet services, voice services, video services, and switched and non-switched access services is recognized as services are provided to customers. 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. Revenue is recognized by measuring progress toward the complete satisfaction of our performance obligations. The unearned portion of these fees is 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 income 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 We satisfy our obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of our satisfaction of the performance obligation may differ from the timing of the customer’s payment. Bundled Service and Allocation of Discounts When customers purchase more than one service, revenue for each is determined by allocating the total transaction price based upon the relative stand-alone selling price of each service. We frequently offer service discounts as an incentive to customers, which reduce the total transaction price. Any incentives which are considered cash equivalents (e.g. gift cards) that are granted will similarly result in a reduction of the total transaction price. Cash equivalent incentives are accounted for on a portfolio basis and are recognized in the month they are awarded to customers. Customer Incentives In the process of acquiring and/or retaining customers, we may issue a variety of 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 separate performance obligations. While these incentives are free to the customer, a portion of the consideration received from the customer is ascribed to them based upon their relative stand-alone selling price. These types of incentives are accounted for on a portfolio basis with both revenue and expense recognized in the month they are awarded to the customer. The earned revenue associated with these incentives is reflected in “Other” revenue while the associated costs are reflected in “Cost of services”. Upfront Fees All non-refundable upfront fees assessed to our customers provide them with a material right to renew; therefore, they are deferred by creating a contract liability and amortized into “Data and Internet service revenue” for fees charged to our wholesale customers and “Other revenue” for fees charged to all other customers over the average customer life using a portfolio approach. Customer Acquisition Costs Sales commission expenses are recognized as incurred. According to ASC 606, incremental costs in obtaining a contract with a customer are deferred and recorded as a contract asset if the period of benefit is expected to be greater than one year. For our retail customers, this period of benefit has been determined to be less than one year. As such, we applied the practical expedient that allows such costs to be expensed as incurred. Taxes, Surcharges and Subsidies We collect various taxes, Universal Service Funds (“USF”) surcharges (primarily federal USF), and certain other surcharges from our customers and subsequently remits these taxes to governmental authorities. In June 2015, we accepted the FCC offer of support to price cap carriers under the Connect America Fund (“CAF”) Phase II program, which was intended to provide long-term support for broadband build commitments in high cost unserved or underserved areas. We recognized FCC’s CAF Phase II subsidies into revenue on a straight-line basis over the seven-year funding term which ended on December 31, 2021. The FCC is reviewing carriers’ CAF II program completion data, and if the FCC determines that we did not satisfy certain applicable CAF Phase II requirements, we could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any amounts of funds that may need to be returned will be material. In May 2022, we accepted the FCC offer under the Rural Digital Opportunity Fund (“RDOF”) Phase I program, which provides funding over a ten-year period to support the construction of broadband networks in rural communities across the country. We accepted $ 37 million in annual support through 2032 in return for our commitment to make broadband available to households within the RDOF eligible areas. We will recognize the FCC’s RDOF Phase I subsidies into revenue on a straight-line basis over the ten-year funding term which will end March 31, 2032. We are required to complete the RDOF deployment by December 31, 2028. Thereafter, the FCC will review carriers’ RDOF program completion data, and if the FCC determines that we did not satisfy applicable FCC RDOF requirements, we could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. c) Cash Equivalents and Restricted Cash : We consider all liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash amounts represent cash collateral required for certain Letter of Credit obligations and utility vendors and collateral for debt arrangements. At September 30, 2023, the Company had $ 106 million in restricted cash. Pursuant to the terms of the Company’s securitized financing facility and secured fiber network revenue term notes, as described in Note 8, restricted cash is held in securitization escrow accounts. As of September 30, 2023, approximately $ 36 million is current restricted cash held for the purpose of paying interest and certain fees. In addition, as of September 30, 2023, approximately $ 70 million is noncurrent restricted cash held for the purpose of satisfying the required liquidity reserve amount. d) I nvestments : Short-term Investments Given the long-term nature of our fiber build, we have invested cash into short-term investments to improve interest income while preserving liquidity to fund the investment as required. As of September 30, 2023, short-term investments of $ 1,275 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between November 14, 2023, and March 19, 2024, and placed with banks with A-1/P-1 or equivalent credit quality. These short-term investments are in scope of ASC 320, Investments - Debt Securities. The short-term investments’ original maturity is greater than 90 days but less than one year, and they are classified as held to maturity, recorded as current assets, and are accounted for at amortized cost. Other Investments In connection with the closing of the securitization transaction, approximately $ 63 million in the form of U.S. Treasuries was deposited in an escrow account established with a trustee, for the purpose of paying interest and principal on $ 47 million in remaining debt of our subsidiary Frontier Southwest Incorporated. This balance is included in “Other assets” on our consolidated balance sheets and is restricted. See Note 8 for further details. e) Definite and Indefinite Lived Intangible Assets: Intangible assets are initially recorded at estimated fair value. Customer relationship intangibles have been established for business and wholesale customers. These intangibles are amortized on a straight-line basis over their assigned useful lives of between 11 and 16 years. Additionally, trademark and tradename assets established upon emergence are amortized on a straight-line basis over 5 years. We review such intangible assets annually, or more often if indicators of impairment arise, to determine whether there is evidence that indicates an impairment condition may exist that would necessitate a change in useful life and a different amortization period. f) Lease Accounting: We determine if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating and finance lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms used in accounting for leases may reflect options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. ROU assets for operating leases are recorded to “Other Assets”, and the related liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. Assets subject to finance leases are included in “Property, Plant & Equipment”, with corresponding liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. We assess potential impairments to our leases annually, or as indicators exist, if indicators of impairment arise to determine whether there is evidence that indicate an impairment condition may exist. We continue to review our real estate portfolio and, during the first quarter of 2022, determined to either terminate or market for sublease certain facilities leases, which triggered an impairment of $ 44 million for our finance and operating lease assets recorded as restructuring charges and other costs. See Note 9 for further details. g) Going Concern: In accordance with the requirements of Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements Going Concern (ASU 2014-15)”, and ASC 205, “Presentation of Financial Statements”, we have the responsibility to evaluate at each reporting period, including interim periods, whether conditions and/or events raise substantial doubt about our ability to meet our future financial obligations. In its evaluation for this report, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due within one year following the date of issuance of this Quarterly Report on Form 10-Q. We believe we have the ability to meet our obligations for at least one year from the date of issuance of this Form 10-Q. Accordingly, the accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course business. h) Property, Plant and Equipment: Property, plant, and equipment are stated at original cost, including capitalized interest, or fair market value as of the date of acquisition for acquired properties. Maintenance and repairs are charged to operating expenses as incurred. The gross book value of routine property, plant and equipment retirements is charged against accumulated depreciation. i) Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of: We review long-lived assets to be held and used, including customer lists and property, plant and equipment, and long-lived assets to be disposed of for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to the future undiscounted net cash flows expected to be generated by the asset. Recoverability of assets held for sale is measured by comparing the carrying amount of the assets to their estimated fair market value. If any assets are considered to be impaired, the impairment is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value. Also, we periodically reassess the useful lives of our long-lived assets to determine whether any changes are required. j) Income Taxes and Deferred Income Taxes: We file a consolidated federal income tax return. We utilize the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recorded for the tax effect of temporary differences between the financial statement basis and the tax basis of assets and liabilities using tax rates expected to be in effect when the temporary differences are expected to reverse. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, tax-planning strategies, and results of recent operations. If we determine that we are not able to realize a portion of our net deferred tax assets in the future, we would make an adjustment to the deferred tax asset valuation allowance, which would increase the provision for income taxes. The tax effect of a change in tax law or rates included in income tax expense from continuing operations includes effect of changes in deferred tax assets and liabilities initially recognized through a charge or credit to other comprehensive income (loss). The residual tax effects typically are released when the item giving rise to the tax effect is disposed of, liquidated, or terminated. k) Stock Plans: We have one stock-based compensation plan under which grants are made and awards remain outstanding. Awards under this plan may be made to employees, directors or consultants of the Company or its affiliates, as determined by the Compensation and Human Capital Committee of the Board. Awards may be made in the form of restricted stock, restricted stock units, incentive stock options, non-qualified stock options, stock appreciation rights or other stock-based awards, including awards with performance, market, and time-vesting conditions. The compensation cost recognized is based on awards ultimately expected to vest. GAAP requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements: Financial Accounting Standards Adopted During 2023 During the quarter ended September 30, 2023, we adopted, the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” (ASU 2022-04), which establishes interim and annual reporting disclosure requirements about a company’s supplier finance programs for its purchase of goods and services. In the year of adoption, the disclosure of payment and other key terms under the programs and outstanding balances under the obligations also applies to interim reporting dates. The adoption of this ASU does not have a material effect on our financial statements upon adoption. We have negotiated favorable payment terms with some of our vendors that allow for a longer payment period than our normal customary terms (referred to as vendor financing), which are excluded from capital expenditures and reported as financing activities. As of September 30, 2023 we have $ 169 million of vendor financing liabilities included in “Other current liabilities” on our consolidated balance sheets. No vendor financing payments were made as of September 30, 2023. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | (3) Revenue Recognition : We categorize our products, services and other revenues into the following categories: Data and Internet services include broadband services for consumer and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“non-switched 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 consumer 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, through various satellite providers, and through partnerships with over-the-top (OTT) video providers. Video services also includes pay-per-view revenues, video on demand, equipment rentals, and video advertising. We have made the strategic decision to limit sales of new traditional TV services, focusing on our broadband products and OTT video options; Other customer revenue includes switched access revenue, rents collected for colocation 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 CAF II and RDOF. The following tables provide a summary of revenues, by category: For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Data and Internet services $ 895 $ 848 $ 2,637 $ 2,531 Voice services 341 369 1,044 1,136 Video services 104 127 333 398 Other 81 82 253 245 Revenue from contracts with customers (1) 1,421 1,426 4,267 4,310 Subsidy and other revenue 15 18 58 40 Total revenue $ 1,436 $ 1,444 $ 4,325 $ 4,350 For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Consumer $ 787 $ 785 $ 2,323 $ 2,352 Business and wholesale 634 641 1,944 1,958 Revenue from contracts with customers (1) 1,421 1,426 4,267 4,310 Subsidy and other revenue 15 18 58 40 Total revenue $ 1,436 $ 1,444 $ 4,325 $ 4,350 (1) Includes lease revenue of $ 14 million and $ 44 million for the three and nine months ended September 30, 2023, and $ 15 million and $ 48 million for the three and nine months ended September 30, 2022, respectively. The following is a summary of the changes in the contract liabilities: Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2022 $ 27 $ 17 Revenue recognized included in opening contract balance ( 29 ) ( 9 ) Credits granted, excluding amounts recognized as revenue 31 15 Reclassified between current and noncurrent 5 ( 5 ) Balance at September 30, 2023 $ 34 $ 18 Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2021 $ 27 $ 11 Revenue recognized included in opening contract balance ( 21 ) ( 8 ) Credits granted, excluding amounts recognized as revenue 17 17 Reclassified between current and concurrent 4 ( 4 ) Balance at September 30, 2022 $ 27 $ 16 The unsatisfied obligations for retail customers consist of amounts in advance billings, which are expected to be earned within the following monthly billing cycle. Unsatisfied obligations for wholesale customers are based on a point-in-time calculation and determined by the number of circuits provided and the contractual price. These wholesale customer obligations change from period to period based on new circuits added as well as circuits that are terminated. 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 2023 (remaining three months) $ 294 2024 297 2025 169 2026 71 2027 14 Thereafter 9 Total $ 854 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ( 4) Accounts Receivable : The components of accounts receivable, net are as follows : ($ in millions) September 30, 2023 December 31, 2022 Retail and wholesale $ 406 $ 416 Other 76 69 Less: Allowance for doubtful accounts ( 33 ) ( 47 ) Accounts receivable, net $ 449 $ 438 We maintain an allowance for credit losses based on the estimated ability to collect accounts receivable. The allowance for credit losses is increased by recording an expense for the provision for bad debts for retail customers, and through decreases to revenue at the time of billing for wholesale customers. The allowance is decreased when customer accounts are written off, or when customers are given credits. The provision for bad debts was $ 24 million and $ 19 million for the nine months ended September 30, 2023 and 2022, respectively. In accordance with ASC 326, we performed calculations to estimate expected credit losses, utilizing rates that are consistent with our write offs (net of recoveries) because such events affect the entity’s loss given default experience. Activity in the allowance for credit losses for the nine months ended September 30, 2023 was as follows: ($ in millions) Balance at December 31, 2022 $ 47 Provision for bad debt 24 Amounts charged to revenue 11 Write offs charged against the allowance ( 49 ) Balance at September 30, 2023 $ 33 |
Property, Plant And Equipment
Property, Plant And Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 5) Property, Plant and Equipment : Property, plant and equipment, net is as follows : ($ in millions) September 30, 2023 December 31, 2022 Property, plant and equipment $ 15,714 $ 13,186 Less: Accumulated depreciation ( 2,093 ) ( 1,336 ) Property, plant and equipment, net $ 13,621 $ 11,850 Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Depreciation expense $ 276 $ 215 $ 799 $ 629 As of September 30, 2023, our materials and supplies were $ 589 million, as compared to $ 546 million as of December 31, 2022. Components of this include fiber, network electronics, and customer premises equipment. During the nine months ended September 30, 2023, our capital expenditures were $ 2,882 million which included a decrease of $ 514 million due to changes in accounts payable and vendor financing payables from December 31, 2022. As of September 30, 2023 there was $ 635 million in accounts payable and vendor financing payables associated with capital expenditures. For the nine months ended September 30, 2023, we had capitalized interest of $ 65 million. Through September 2023, we had asset sales and transactions of $ 39 million, including approximately $ 34 million in net proceeds related to certain wireless towers. Approximately $ 13 million of the proceeds related to wireless towers that qualified as sales, included in investing cash flows, and the remaining $ 21 million in proceeds related to wireless towers that were subject to sale-leaseback agreements and included in financing cash flows. After taking these sales and transactions into account, along with our capital expenditures, our net capital activity was $ 2,843 million as of September 30, 2023. |
Intangibles
Intangibles | 9 Months Ended |
Sep. 30, 2023 | |
Intangibles [Abstract] | |
Intangibles | (6) Intangibles : We consider whether the carrying values of finite-lived intangible assets and property plant and equipment may not be recoverable or whether the carrying value of certain indefinite-lived intangible assets were impaired. There was no impairment of either intangibles or property plant and equipment as of September 30, 2023 and 2022. The balances of these assets as of September 30, 2023 and December 31, 2022 was as follows: September 30, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Intangibles: Customer Relationships - Business $ 800 $ ( 176 ) $ 624 $ 800 $ ( 121 ) $ 679 Customer Relationships - Wholesale 3,491 ( 527 ) 2,964 3,491 ( 364 ) 3,127 Trademarks & Tradenames 150 ( 73 ) 77 150 ( 50 ) 100 Total other intangibles $ 4,441 $ ( 776 ) $ 3,665 $ 4,441 $ ( 535 ) $ 3,906 Amortization expense was as follows: For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Amortization expense $ 80 $ 81 $ 241 $ 241 We amortize our intangible assets on a straight-line basis, over the assigned useful lives of 16 years for our wholesale customer relationships, 11 years for our business customer relationships, and five years for our trademarks and tradenames. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (7) Fair Value of Financial Instruments : The following table summarizes the carrying amounts and estimated fair values for total long-term debt at September 30, 2023 and December 31, 2022. For the other financial instruments including cash, short-term investments, accounts receivable, 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 total long-term debt is estimated based upon quoted market prices at the reporting date for those financial instruments. September 30, 2023 December 31, 2022 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 11,235 $ 9,977 $ 8,963 $ 8,079 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (8) Long-Term Debt : The activity in long-term debt is summarized as follows: For the nine months ended September 30, 2023 Principal January 1, Payments New September 30, ($ in millions) 2023 and Retirements Borrowings 2023 Secured debt issued by Frontier $ 8,113 $ ( 11 ) $ 750 $ 8,852 Secured debt issued by subsidiaries 100 ( 53 ) 1,586 1,633 Unsecured debt issued by subsidiaries 750 - - 750 Principal outstanding $ 8,963 $ ( 64 ) $ 2,336 $ 11,235 Less: Debt issuance costs ( 28 ) ( 68 ) Less: Current portion ( 15 ) ( 15 ) Less: Debt premium / (discount) - ( 64 ) Plus: Unamortized fair value adjustments (1) 190 170 Total Long-term debt $ 9,110 $ 11,258 (1) Upon emergence, we adjusted the carrying value of our debt to fair value. The adjustment consisted of the elimination of the existing unamortized debt issuance costs and unamortized discounts and recording a balance of $ 236 million as a fair value adjustment. The fair value accounting adjustment is being amortized into interest expense using the effective interest method. Additional information regarding our senior secured debt, and subsidiary debt at September 30, 2023 and December 31, 2022 is as follows : September 30, 2023 December 31, 2022 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 10/8/2027 $ 1,438 9.180% (Variable ) $ 1,450 8.500% (Variable ) First lien notes due 10/15/2027 1,150 5.875 % 1,150 5.875 % First lien notes due 5/1/2028 1,550 5.000 % 1,550 5.000 % First lien notes due 5/15/2030 1,200 8.750 % 1,200 8.750 % First lien notes due 3/15/2031 750 8.625 % - - Second lien notes due 5/1/2029 1,000 6.750 % 1,000 6.750 % Second lien notes due 11/1/2029 750 5.875 % 750 5.875 % Second lien notes due 1/15/2030 1,000 6.000 % 1,000 6.000 % IDRB due 5/1/2030 13 6.200 % 13 6.200 % Total secured debt issued by Frontier 8,851 8,113 Secured debt issued by subsidiaries Debentures due 11/15/2031 47 8.500 % 100 8.500 % Series 2023-1 Revenue Term Notes Class A-2 due 7/20/2028 1,120 6.600 % - Series 2023-1 Revenue Term Notes Class B due 7/20/2028 155 8.300 % - Series 2023-1 Revenue Term Notes Class C due 7/20/2028 312 11.500 % - Total secured debt issued by subsidiaries 1,634 100 Unsecured debt issued by subsidiaries Debentures due 5/15/2027 200 6.750 % 200 6.750 % Debentures due 2/1/2028 300 6.860 % 300 6.860 % Debentures due 2/15/2028 200 6.730 % 200 6.730 % Debentures due 10/15/2029 50 8.400 % 50 8.400 % Total unsecured debt issued by subsidiaries 750 750 Principal outstanding $ 11,235 7.098 % (1) $ 8,963 6.760 % (1) (1) Interest rate represents a weighted average of the stated interest rates of multiple issuances. The anticipated repayment date of July 2028 is used for the Series 2023-1 Revenue Term Notes, classes A-2 B, and C when calculating the weighted average. Summaries of our various credit and debt agreements, including our credit agreements and the indentures for our senior secured first lien and senior secured second lien notes, are contained in our Annual Report on Form 10-K including agreements filed as exhibits thereto. Credit Facilities and Term Loans Revolving Facility On March 8, 2023, Frontier Holdings entered into an amendment to its Revolving Facility, which, among other things, (i) extends the maturity with respect to the commitments of certain revolving lenders (in addition to certain amendments to springing maturity provisions); (2) amends the financial maintenance covenant for the benefit of the Revolving Facility by increasing the maximum first lien leverage ratio thereunder to 3.50 :1.00, with step-downs to: (a) 3.25 :1.00 in 2026; and (b) 3.00 :1.00 in 2027 and continuing thereafter; and (3) provides for certain amendments to debt incurrence and other restrictive covenants. The $ 900 million Revolving Facility will be available on a revolving basis until April 30, 2025 and with respect to certain lenders currently representing $ 850 million thereunder, the maturity date of the Revolving Facility will be the earliest of (a) April 30, 2028, (b) 91 days prior to the maturity date of the term loan facility, (c) unless such notes have been repaid and/or redeemed in full, the date that is 91 days prior to the stated maturity date of our 5.875 % First Lien Notes due 2027, and (d) unless such notes have been repaid and/or redeemed in full, the date that is 91 days prior to the stated maturity date of our 5.000 % First Lien Notes due 2028. At Frontier’s election, the determination of interest rates for the Revolving Facility is based on margins over the alternate base rate or over Secured Overnight Financing Rate (“SOFR”). The interest rate margin with respect to any SOFR loan under the Revolving Facility is 3.50 % or 2.50 % with respect to any alternate base rate loans, with a 0 % SOFR floor. Subject to customary exceptions and thresholds, the security package under the Revolving Facility includes pledges of the equity interests in certain of our subsidiaries, which is currently limited to certain specified pledged entities and substantially all personal property of Frontier Video, which same assets also secure our First Lien Notes. The Revolving Facility is guaranteed by the same subsidiaries that guarantee the First Lien Notes. After giving effect to approximately $ 249 million of letters of credit previously outstanding, we have $ 651 million of available borrowing capacity under the Revolving Facility. Senior Secured Notes First Lien Notes due 2031 On March 8, 2023, our consolidated subsidiary Frontier Communications Holdings, LLC (“Frontier Holdings”) issued $ 750 million aggregate principal amount of 8.625 % first lien secured notes due 2031 (the “First Lien Notes due 2031”) in an offering pursuant to exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). We intend to use the net proceeds of the offering to fund capital investments and operating costs arising from our fiber build and expansion of our fiber customer base, and for general corporate purposes. The First Lien Notes due 2031 are secured by a first-priority lien, subject to permitted liens, by all the assets that secure the issuer’s obligations under its senior secured credit facilities and existing senior secured notes. The First Lien Notes due 2031 were issued pursuant to an indenture, dated as of March 8, 2023, by and among Frontier Holdings, the guarantors party thereto, the grantor party thereto, Wilmington Trust, National Association, as trustee and JPMorgan Chase Bank, N.A., as collateral agent. Fiber Securitization Transaction Secured Fiber Network Revenue Term Notes On August 8, 2023, our limited-purpose, bankruptcy remote, subsidiary, Frontier Issuer, issued $ 1.586 billion aggregate principal amount of secured Fiber Term Notes, less $ 58 million in original issue discounts, consisting of $ 1.120 billion 6.60 % Series 2023-1, Class A-2 term notes, $ 155 million 8.30 % Series 2023-1, Class B term notes and $ 312 million 11.50 % Series 2023-1, Class C term notes, each with an anticipated term ending in July 2028 (such anticipated repayment date, the “ARD”), in an offering exempt from registration under the Securities Act. We intend to use the proceeds from the offering of the Fiber Term Notes for, among other things, general corporate purposes, including potential investments or expenditures, such as capital expenditures and research and development, in line with our fiber expansion and copper migration strategies. In addition, we used a portion of the proceeds to retire and defease certain outstanding indebtedness of our subsidiary Frontier Southwest Incorporated. The Fiber Term Notes were issued as part of a securitization transaction, pursuant to which the Company’s fiber network assets and associated customer contracts in certain neighborhoods in the Dallas, Texas metropolitan area were contributed to AssetCo, a direct, wholly-owned subsidiary of Frontier Issuer. The Fiber Term Notes are secured by these fiber assets and associated customer contracts. The Fiber Term Notes were issued pursuant to an indenture, dated as of August 8, 2023 (the “Base Indenture”), as supplemented by the Series 2023-1 Supplement thereto, dated as of August 8, 2023 (the “Series 2023-1 Supplement”), in each case entered into by and among the Issuer, Frontier Dallas TX Fiber 1 LLC (“AssetCo”) and Citibank, N.A. as the indenture trustee (the “Trustee”). The Base Indenture, together with the Series 2023-1 Supplement and Series 2023-2 Supplement, and any other series supplements to the Base Indenture, are referred to herein as the “Fiber Term Notes Indenture.” The table below sets forth the material terms of Fiber Term Notes as of September 30, 2023: Security Issue Date Amount Outstanding Interest Rate (1) Anticipated Repayment Date Final Maturity Date Series 2023-1, Class A-2 term notes August 8, 2023 $ 1,120,000,000 6.60 % July 20, 2028 August 20, 2053 Series 2023-1, Class B term notes August 8, 2023 $ 155,000,000 8.30 % July 20, 2028 August 20, 2053 Series 2023-1, Class C term notes August 8, 2023 $ 312,000,000 11.50 % July 20, 2028 August 20, 2053 (1) If Frontier Issuer has not repaid or refinanced any Fiber Term Note prior to the monthly payment date in July of 2028, additional interest will accrue thereon in an amount equal to the greater of (i) 5.00 % per annum and (ii) the excess amount, if any, by which the sum of the following exceeds the interest rate for such note: (A) the yield to maturity (adjusted to a “mortgage-equivalent basis” pursuant to the standards and practices of the Securities Industry and Financial Markets Association) on the ARD for such note of the United States Treasury Security having a remaining term closest to 10 years plus (B) 5.00 % plus (C) the post-ARD note spread applicable to such Note. While the Fiber Term Notes are outstanding, scheduled payments of interest are required to be made on the Notes on a monthly basis. From and after the ARD, principal payments will also be required to be made on the Notes on a monthly basis. No principal payments will be due on the Fiber Term Notes prior to the ARD, unless certain rapid amortization or acceleration triggers are activated. The Fiber Term Notes are subject to a series of covenants and restrictions customary for transactions of this type. These covenants and restrictions include (i) that Frontier Issuer maintains a liquidity reserve account to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments, including specified make-whole payments in the case of certain optional prepayments of the Fiber Term Notes prior to the monthly payment date in July 2026, (iii) certain indemnification payments in the event, among other things, that the transfers of the assets pledged as collateral for the Fiber Term Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. As provided in the Base Indenture, the Fiber Term Notes are also subject to rapid amortization in the event of a failure to maintain a stated debt service coverage ratio. A rapid amortization may be cured if the debt service coverage ratio exceeds a certain threshold for a certain period of time, upon which cure, regular amortization, if any, will resume. The Fiber Term Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Fiber Term Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective and certain judgments. Securitized Financin g Facility In connection with the Fiber Term Notes, Frontier Issuer entered into a financing facility for the issuance of up to $ 500 million in Series 2023-2 Secured Fiber Network Revenue Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”). Frontier Issuer had not drawn on the Variable Funding Notes as of September 30, 2023. The Variable Funding Notes were issued pursuant to the Base Indenture, as supplemented by the Series 2023-1 Supplement and the Series 2023-2 Supplement, dated as of August 24, 2023 (the “Series 2023-2 Supplement”), in each case entered into by and among Frontier Issuer, AssetCo and the Trustee. Drawings and certain additional terms related to the Variable Funding Notes are governed by the Class A-1 Note Purchase Agreement, dated as of August 24, 2023 (the “Variable Funding Note Purchase Agreement”), among Frontier Issuer, AssetCo, Frontier Communications Holdings, LLC (as the “Manager”), certain conduit investors, financial institutions and funding agents, and Barclays Bank plc, as administrative agent. The Variable Funding Notes will be governed, in part, by the Variable Funding Note Purchase Agreement and by certain generally applicable terms contained in the Indenture. The initial anticipated repayment date for the Variable Funding Notes is July 2026, and Frontier Issuer and Manager have the option to elect two one-year extensions of the anticipated repayment date. Following the initial anticipated repayment date (and any extensions ther eof), additional interest will accrue on the Variable Funding Notes equal to 5.0 % per annum. Defeasance of Notes As of September 30, 2023, the C ompany extinguished $ 53 million of notes issued by its subsidiary Frontier Southwest Incorporated and transferred assets to an escrow account to pay the future interest and principal on the remaining $ 47 million of notes, which remain on the Company’s balance sheet as outstanding debt and restricted assets . |
Restructuring And Other Charges
Restructuring And Other Charges | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring And Other Charges [Abstract] | |
Restructuring And Other Charges | (9) Restructuring and Other Charges: Restructuring and other charges consists of severance and employee costs related to workforce reductions. During the nine month period ended September 30, 2023, we incurred $ 48 million in restructuring charges and other costs consisting of $ 48 million of severance and employee costs resulting from workforce reductions, of which, approximately $ 23 million and $ 15 million related to larger workforce reductions during the second and third quarters of 2023, respectively. During the nine month period ended September 30, 2022, we incurred $ 88 million in restructuring charges and other costs consisting of $ 44 million of lease impairment costs from the strategic exit of certain facilities, $ 35 million of severance and employee costs resulting from workforce reductions, and $ 9 million of costs related to other restructuring activities. Of the $ 35 million in severance and employee costs, approximately $ 26 million related to the second quarter of 2022, as a result of larger workforce reductions. As part of Frontier’s cost reduction strategy, certain real estate leases will not be retained, or will be marketed for sublease. We evaluated the related right-of-use assets and other lease related assets for impairment under ASC 360. In connection with this analysis, we reassessed our leased real estate asset groups and estimated the fair value of the office space to be subleased under current market conditions. Where the carrying values of individual asset groups exceeded their fair values, an impairment charge was recognized for the difference. The following is a summary of the changes in the liabilities established for restructuring and other related programs: ($ in millions) Balance at January 1, 2023 $ 9 Severance expense 48 Cash payments during the period ( 39 ) Balance at September 30, 2023 $ 18 |
Investment And Other Income
Investment And Other Income | 9 Months Ended |
Sep. 30, 2023 | |
Investment And Other Income [Abstract] | |
Investment And Other Income | (10) Investment and Other Income: The following is a summary of the components of Investment and Other Income: For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Interest and dividend income $ 22 $ 16 $ 60 $ 24 Pension benefit 5 24 14 74 OPEB costs ( 2 ) ( 5 ) ( 7 ) ( 13 ) OPEB remeasurement gain 46 84 38 234 Pension remeasurement gain - 91 - 91 All other, net ( 4 ) 1 ( 4 ) - Total investment and other income, net $ 67 $ 211 $ 101 $ 410 In the first nine months of 2023, Frontier amended the medical coverage for certain postretirement benefit plans, which resulted in an $ 38 million net remeasurement gain. The net gain was comprised of a loss of $ 20 million in the first quarter, offset by a remeasurement gain of $ 12 million in the second quarter, and a gain of $ 46 million in the third quarter, primarily due to discount rate changes. Pension and OPEB benefit (cost) consist of interest income (costs), expected return on plan assets, amortization of prior service (costs) and recognition of actuarial (gain) loss. Service cost components of pension and OPEB benefit costs are included in “Selling, general, and administrative expenses” on our consolidated statements of income. |
Stock Plans
Stock Plans | 9 Months Ended |
Sep. 30, 2023 | |
Stock Plans [Abstract] | |
Stock Plans | (11) Stock Plans : Frontier Communications Parent, Inc. has one stock-based compensation plan under which grants are made and awards remain outstanding: the 2021 Management Incentive Plan (the “2021 Incentive Plan”). The 2021 Incentive Plan permits stock-based awards to be made to employees, directors, or consultants of the Company or its affiliates, as determined by the Compensation and Human Capital Committee of the Board. Under the 2021 Incentive Plan, 15,600,000 shares of common stock have been reserved for issuance. Equity awards have been issued in the form of time-based restricted stock units (RSUs) and performance-based stock units (PSUs). As of September 30, 2023, approximately 4,155,000 shares were available to grant under the 2021 Incentive Plan. Restricted Stock Units The following summary presents information regarding unvested RSUs outstanding under the 2021 Incentive Plan : Weighted Average Number of Grant Date Aggregate Shares Fair Value Fair Value (in thousands) (per share) (in millions) Balance at January 1, 2023 2,514 $ 25.78 $ 64 Restricted stock units granted 1,364 $ 23.19 $ 21 Restricted stock units vested ( 1,179 ) $ 25.73 $ ( 18 ) Restricted stock units forfeited ( 166 ) $ 25.06 Balance at September 30, 2023 2,533 $ 24.46 $ 40 For purposes of determining compensation expense, the fair value of each RSU grant is based on the closing price of our common stock on the date of grant. The non-vested RSUs granted in 2021, 2022, and 2023 generally vest, and are expensed, on a ratable basis over three years from the grant date of the award. Total remaining unrecognized compensation cost associated with unvested RSU awards that is deferred at September 30, 2023 was $ 46 million and the weighted average vesting period over which this cost is expected to be recognized is approximately 1 year. None of the RSU awards may be sold, assigned, pledged, or otherwise transferred, voluntarily or involuntarily, by the employees until the applicable time-based restrictions lapse, subject to limited exceptions. Compensation expense, including compensation related to non-employee directors, recognized in “Selling, general, and administrative expenses”, of $ 29 million and $ 27 million for the nine month-periods ended September 30, 2023, and 2022, respectively, have been recorded in connection with RSUs. Performance Stock Units Under the 2021 Incentive Plan, a target number of performance units (“PSU”) have been awarded to applicable participants with respect to three-year performance periods (each a “Measurement Period”). The performance metrics under the 2021, 2022, and 2023 PSU awards consist of targets for (1) Adjusted Fiber EBITDA, (2) Fiber Locations Constructed and (3) Expansion Fiber Penetration. In addition, there is an overall relative total shareholder return (“TSR”) modifier, which is based on our total return to stockholders over the Measurement Period relative to the S&P 400 Mid Cap Index. Each performance metric is weighted 33.3 %, and targets for each metric are set for each of the three years during the Measurement Period. Achievement of the metrics will be measured separately on a cumulative basis for each performance metric, and the number of awards earned will be determined at the end of the three-year Measurement Period based on actual performance relative to the targets of each performance metric, plus the effect of the TSR modifier. The payout of the 2021 PSUs can range from 0 % to a maximum award payout of 300 % of the target PSUs. The payout of the 2022 and 2023 PSUs can range from 0 % to a maximum award payout of 200 % of the target PSUs. The number of PSU awards earned at the end of a Measurement Period may be more or less than the number of target PSUs granted as a result of performance. An executive must maintain a satisfactory performance rating during the Measurement Period and, except for limited circumstances, must be employed by Frontier upon determination in order for the award to vest. The Compensation and Human Capital Committee will determine the number of PSUs earned for the Measurement Period in the first quarter of the year following the end of the Measurement Period. PSU awards, to the extent earned, will be paid out in the form of common stock on a one -for-one basis. Under ASC 718, Stock Based Compensation Expense, a grant date, and the fair value of a performance award are determined once the targets are finalized. For the 2021, 2022 and 2023 PSU awards, targets for all of the metrics have been fully set for each performance period and the related expense will be amortized over the appropriate performance period. The following summary presents information regarding PSU awards as of September 30, 2023, and changes during the nine months then ended with regard to PSUs awarded under the 2021 Incentive Plan : Weighted Average Number of Award Date Shares Fair Value (in thousands) (per share) (1) Balance at January 1, 2023 3,485 $ 25.62 Target performance shares awarded, net 1,040 $ 24.36 Target performance shares forfeited ( 33 ) $ 25.59 Balance at September 30, 2023 4,492 $ 25.33 (1) Represents the weighted average of the closing price of our stock on the date of the awards. For purposes of determining compensation expense, the fair value of each PSU award is estimated based on the closing price of a share of our common stock on the date of the grant, adjusted to reflect the fair value of the relative TSR modifier. For the nine months ended September 30, 2023, and 2022, we recognized net compensation expense, reflected in “Selling, general, and administrative expenses,” of $ 52 million and $ 27 million, respectively, related to PSU awards. Non-Employee Directors Compensation expense related to the board of directors, recognized in “Selling, general, and administrative expenses”, was $ 1 million for the nine months ended September 30, 2023. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | (12) Income Taxes : The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rates: For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit ( 4.3 ) 14.7 5.1 13.1 Changes in certain deferred tax balances - 2.1 - 1.5 Tax reserve adjustment ( 3.0 ) - ( 3.1 ) - Tax Credit 6.0 - 6.3 - Sec.162(m) - nondeductible Executive Compensation ( 18.5 ) 1.5 ( 19.1 ) 2.5 All other, net ( 0.5 ) ( 0.8 ) ( 0.5 ) ( 0.3 ) Effective tax rate 0.7 % 38.5 % 9.7 % 37.8 % Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the third quarter of 2023, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $ 28 million ($ 22 million net of federal benefit) was recorded as of September 30, 2023. The Inflation Reduction Act was signed into law on August 16, 2022. The law contains numerous changes to tax laws effective January 1, 2023. The Company evaluated the effects and does not believe the Company will be materially impacted by the Inflation Reduction Act. |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Net Earnings Per Share [Abstract] | |
Net Earnings Per Share | (13) Net Earnings Per Share : The reconciliation of the net income per common share calculation is as follows : For the three months ended September 30, For the nine months ended September 30, ($ in millions and shares in thousands, except per share amounts) 2023 2022 2023 2022 Net income used for basic and diluted earnings per share: Total basic net income attributable to Frontier common shareholders $ 11 $ 120 $ 12 $ 286 Effect of loss related to dilutive stock units - - - - Total diluted net income attributable to Frontier common shareholders $ 11 $ 120 $ 12 $ 286 Basic earnings per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 245,761 244,984 245,431 244,711 Less: Weighted average unvested restricted stock awards - - - - Total weighted average shares outstanding - basic 245,761 244,984 245,431 244,711 Basic net earnings per share attributable to Frontier common shareholders $ 0.05 $ 0.49 $ 0.05 $ 1.17 Diluted earnings per share: Total weighted average shares outstanding - basic 245,761 244,984 245,431 244,711 Effect of dilutive performance stock awards 1,686 - 1,493 - Effect of dilutive restricted stock awards - 228 412 369 Total weighted average shares outstanding - diluted 247,447 245,212 247,336 245,080 Diluted net earnings per share attributable to Frontier common shareholders $ 0.05 $ 0.49 $ 0.05 $ 1.17 In calculating diluted net income per common share for the nine months ended September 30, 2023, the effect of certain outstanding PSUs is included in the computation as their respective performance metrics have been satisfied as of September 30, 2023. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | (14) Comprehensive Income : Comprehensive income consists of net income and other gains and losses affecting shareholders’ equity and pension/postretirement benefit (OPEB) liabilities that, under GAAP, are excluded from net income. The components of accumulated other comprehensive income, net of tax, are as follows : OPEB ($ in millions) Costs Balance at January 1, 2023 (1) $ 79 Other comprehensive income before reclassifications 33 Amounts reclassified from accumulated other comprehensive income to net loss ( 12 ) Net current-period other comprehensive income 21 Balance at September 30, 2023 (1) $ 100 OPEB ($ in millions) Costs Balance at January 1, 2022 (1) $ 60 Other comprehensive income before reclassifications 8 Amounts reclassified from accumulated other comprehensive loss to net loss ( 8 ) Net current-period other comprehensive loss - Balance at September 30, 2022 (1) $ 60 (1) OPEB amounts are net of deferred tax balances of $ 23 million and $ 15 million as of January 1, 2023 and 2022, respectively and $ 31 million and $ 16 million as of September 30, 2023 and 2022, respectively. The significant items reclassified from components of accumulated other comprehensive loss are as follows: Amount Reclassified from Accumulated Other Comprehensive Income (1) ($ in millions) Affected Line Item in For the three months ended For the nine months ended the Statement Where Details about Accumulated Other September 30, September 30, Net Income (Loss) Comprehensive Loss Components 2023 2022 2023 2022 is Presented Amortization of OPEB Cost Items Prior-service credits (costs) $ 6 $ 4 $ 16 $ 10 Income (loss) before income taxes Tax impact ( 2 ) - ( 4 ) ( 2 ) Income tax benefit $ 4 $ 4 $ 12 $ 8 Net income (loss) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension and OPEB costs (see Note 15 - Retirement Plans for additional details) . |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Plans [Abstract] | |
Retirement Plans | ( 15) Retirement Plans : Frontier recognizes actuarial gains (losses) for our pension and postretirement plans in the period they occur. The components of net periodic benefit cost other than the service cost component for our plans as well as any actuarial gains or losses are included in “Investment and other income (loss)” on the consolidated statements of income . The following tables provide the components of total pension benefit cost : Pension Benefits For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Components of total pension benefit cost Service cost $ 12 $ 14 $ 39 $ 55 Interest cost on projected benefit obligation 31 22 97 71 Expected return on plan assets ( 36 ) ( 46 ) ( 111 ) ( 145 ) Net periodic pension (benefit) 7 ( 10 ) 25 ( 19 ) Pension settlement costs - 50 - 50 Pension remeasurement gain - ( 91 ) - ( 91 ) Total pension benefit cost (income) $ 7 $ ( 51 ) $ 25 $ ( 60 ) The components of net periodic benefit cost other than the service cost component are included in “Investment and other income” on the consolidated statements of income. The value of our pension plan assets increased $ 50 million from $ 2,033 million at December 31, 2022 to $ 2,083 million at September 30, 2023. This increase primarily resulted from changes in the market value of investments of $ 85 million net of plan expenses, and contributions of $ 116 million, offset by benefit payments to participants of $ 151 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 nine months ended September 30, 2022, lump sum pension settlement payments to terminated or retired individuals amounted to $ 177 million, which exceeded the settlement threshold of $ 169 million, and as a result, Frontier recognized non-cash settlement charges totaling $ 50 million during the nine months ended September 30, 2022. As a result of pension settlement charges incurred during the period, Frontier remeasured its pension plan obligations resulting in a remeasurement gain of $ 91 million for the nine months ended September 30, 2022. Upon emergence from bankruptcy, Frontier revised its accounting policy to recognize actuarial gains and losses in the period in which they occur. As such, this gain was recorded in “Investment and other income, net” on our consolidated statements of income. The following tables provide the components of total postretirement benefit cost : Postretirement For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Components of net periodic postretirement benefit cost Service cost $ 2 $ 3 $ 6 $ 10 Interest cost on projected benefit obligation 8 9 23 23 Amortization of prior service credit (gain) loss recognized ( 6 ) ( 4 ) ( 16 ) ( 10 ) OPEB remeasurement (gain) loss ( 46 ) ( 84 ) ( 38 ) ( 234 ) Total periodic postretirement (benefit) cost $ ( 42 ) $ ( 76 ) $ ( 25 ) $ ( 211 ) In the first nine months of 2023, Frontier amended the medical coverage for certain postretirement benefit plans, which resulted in a $ 38 million net remeasurement gain. The net gain was comprised of a loss of $ 20 million in the first quarter, offset by remeasurement gains of $ 12 million in the second quarter and $ 46 million in the third quarter, primarily due to discount rate changes. For the nine months ended September 30 2022, Frontier amended the medical coverage for certain postretirement benefit plans, which necessitated a remeasurement of its OPEB obligations. This remeasurement resulted in the recognition of a net actuarial gain of $ 234 million, which was driven primarily from a higher assumed discount rate relative to the previous measurement date. Frontier recognizes actuarial gains and losses in the period in which they occur. As such, this gain was recorded in “Investment and other income, net” on our consolidated statements of income. During the nine months ended September 30, 2023, and 2022 we capitalized $ 14 million and $ 15 million of pension and OPEB expense, respectively, into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (16) Commitments and Contingencies : Although from time to time we make short-term purchasing commitments to vendors with respect to capital expenditures, we generally do not enter into firm, written contracts for such activities. In connection with the fiber expansion build, we have prioritized diversifying our vendor base and solidifying partnership agreements with vendors for relevant labor and materials, to enable our build growth and customer expansion. Some of these key supplier agreements have multi-year terms and purchase commitments as we deem advisable in order to strengthen future supply. In 2014, Citynet, a competitive local exchange carrier doing business in West Virginia, filed a qui tam action in federal court in the District Court for the Southern District of West Virginia against Frontier West Virginia, Inc. and others on behalf of the U.S. Government concerning billing practices relating to a government grant. The complaint became public in 2016 after the U.S. Government declined to participate in the case and instead allowed Citynet to pursue the claims on behalf of the U.S. On December 6, 2022, the parties reached a settlement in principle. On May 23, 2023, the parties finalized the terms of the settlement agreement to resolve the case in its entirety, the terms of which were made part of the public record and which requires a payment of approximately $ 18 million. 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, environmental, 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 transaction, 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 estimable, and we do not expect that any potential penalties, if ultimately incurred, will be material. We accrue an expense for pending litigation when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of our existing accruals for pending matters, after considering insurance coverage, is material. We monitor our pending litigation for the purpose of adjusting our accruals and revising our disclosures accordingly, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. We will vigorously defend our interests in pending litigation, and as of this date, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our consolidated financial position, results of operations, or our cash flows. In 2015, Frontier accepted the FCC’s CAF Phase II offer, which provided $ 313 million in annual support through 2021 in our current 25 states in return for the Company’s commitment to make broadband available to households within the CAF II eligible areas. The Company was required to complete the CAF II deployment by December 31, 2021. Thereafter, the FCC has been reviewing carriers’ CAF II program completion data, and if the FCC determines that the Company did not satisfy applicable FCC CAF Phase II requirements, Frontier could be required to return a portion of the funds previously received and may be subject to certain fines, or additional requirements and obligations. On January 30, 2020, the FCC adopted an order establishing the RDOF competitive reverse auction to provide support to serve high-cost areas. Under the FCCs RDOF Phase I auction, we were awarded approximately $ 371 million over ten years to build gigabit-capable broadband over a fiber-to-the-premises network to approximately 127,000 locations in eight states (California, Connecticut, Florida, Illinois, New York, Pennsylvania, Texas, and West Virginia). We began receiving RDOF funding in the second quarter of 2022 and we will be required to complete the buildout to the awarded locations by December 31, 2028, with interim target milestones over this period. To the extent that Frontier is unable to meet the milestones or construct to all locations by the required deadlines, Frontier could be required to return a portion of funds previously received and may be subject to certain fines or additional requirements and obligations. The FCC currently classifies fixed consumer broadband services as information services, subject to light-touch regulation. In October 2023 the FCC released a notice of proposed rulemaking seeking to reclassify certain broadband services as lightly regulated telecommunications services imposing certain network neutrality requirements on the reclassified internet services. At this time, it remains uncertain whether the FCC will adopt these new network neutrality regulations and what impact that may have on Frontier’s business. On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law. The legislation appropriated funding for the establishment of the Affordable Connectivity Program (ACP), and FCC-administered monthly, low-income broadband benefit program. The ACP provides qualified customers up to $ 30 dollars per month (or $ 75 dollars per month for those on Tribal lands) to assist with their internet bill. Frontier is a participating provider in the ACP program. Absent additional funding, at present pace, the ACP funds will likely exhaust in 2024. We conduct certain of our operations in leased premises and 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. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2023 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation And Use Of Estimates | Basis of Presentation and Use of Estimates : Frontier Communications Parent, Inc. 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, 2022. 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, and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, business, and wholesale customers and is typically the incumbent voice services provider in its service areas. Certain reclassifications of prior period balances have been made to conform to the current period presentation. For our interim financial statements as of and for the period ended September 30, 2023, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (“SEC”). The preparation of our interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the application of allowance for credit losses, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, and pension and other postretirement benefits, among others. |
Revenue Recognition | Revenue Recognition : Revenue for data and Internet services, voice services, video services, and switched and non-switched access services is recognized as services are provided to customers. 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. Revenue is recognized by measuring progress toward the complete satisfaction of our performance obligations. The unearned portion of these fees is 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 income 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 We satisfy our obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of our satisfaction of the performance obligation may differ from the timing of the customer’s payment. Bundled Service and Allocation of Discounts When customers purchase more than one service, revenue for each is determined by allocating the total transaction price based upon the relative stand-alone selling price of each service. We frequently offer service discounts as an incentive to customers, which reduce the total transaction price. Any incentives which are considered cash equivalents (e.g. gift cards) that are granted will similarly result in a reduction of the total transaction price. Cash equivalent incentives are accounted for on a portfolio basis and are recognized in the month they are awarded to customers. Customer Incentives In the process of acquiring and/or retaining customers, we may issue a variety of 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 separate performance obligations. While these incentives are free to the customer, a portion of the consideration received from the customer is ascribed to them based upon their relative stand-alone selling price. These types of incentives are accounted for on a portfolio basis with both revenue and expense recognized in the month they are awarded to the customer. The earned revenue associated with these incentives is reflected in “Other” revenue while the associated costs are reflected in “Cost of services”. Upfront Fees All non-refundable upfront fees assessed to our customers provide them with a material right to renew; therefore, they are deferred by creating a contract liability and amortized into “Data and Internet service revenue” for fees charged to our wholesale customers and “Other revenue” for fees charged to all other customers over the average customer life using a portfolio approach. Customer Acquisition Costs Sales commission expenses are recognized as incurred. According to ASC 606, incremental costs in obtaining a contract with a customer are deferred and recorded as a contract asset if the period of benefit is expected to be greater than one year. For our retail customers, this period of benefit has been determined to be less than one year. As such, we applied the practical expedient that allows such costs to be expensed as incurred. Taxes, Surcharges and Subsidies We collect various taxes, Universal Service Funds (“USF”) surcharges (primarily federal USF), and certain other surcharges from our customers and subsequently remits these taxes to governmental authorities. In June 2015, we accepted the FCC offer of support to price cap carriers under the Connect America Fund (“CAF”) Phase II program, which was intended to provide long-term support for broadband build commitments in high cost unserved or underserved areas. We recognized FCC’s CAF Phase II subsidies into revenue on a straight-line basis over the seven-year funding term which ended on December 31, 2021. The FCC is reviewing carriers’ CAF II program completion data, and if the FCC determines that we did not satisfy certain applicable CAF Phase II requirements, we could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any amounts of funds that may need to be returned will be material. In May 2022, we accepted the FCC offer under the Rural Digital Opportunity Fund (“RDOF”) Phase I program, which provides funding over a ten-year period to support the construction of broadband networks in rural communities across the country. We accepted $ 37 million in annual support through 2032 in return for our commitment to make broadband available to households within the RDOF eligible areas. We will recognize the FCC’s RDOF Phase I subsidies into revenue on a straight-line basis over the ten-year funding term which will end March 31, 2032. We are required to complete the RDOF deployment by December 31, 2028. Thereafter, the FCC will review carriers’ RDOF program completion data, and if the FCC determines that we did not satisfy applicable FCC RDOF requirements, we could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. |
Cash Equivalents And Restricted Cash | Cash Equivalents and Restricted Cash : We consider all liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash amounts represent cash collateral required for certain Letter of Credit obligations and utility vendors and collateral for debt arrangements. At September 30, 2023, the Company had $ 106 million in restricted cash. Pursuant to the terms of the Company’s securitized financing facility and secured fiber network revenue term notes, as described in Note 8, restricted cash is held in securitization escrow accounts. As of September 30, 2023, approximately $ 36 million is current restricted cash held for the purpose of paying interest and certain fees. In addition, as of September 30, 2023, approximately $ 70 million is noncurrent restricted cash held for the purpose of satisfying the required liquidity reserve amount. |
Short-Term Investments | I nvestments : Short-term Investments Given the long-term nature of our fiber build, we have invested cash into short-term investments to improve interest income while preserving liquidity to fund the investment as required. As of September 30, 2023, short-term investments of $ 1,275 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between November 14, 2023, and March 19, 2024, and placed with banks with A-1/P-1 or equivalent credit quality. These short-term investments are in scope of ASC 320, Investments - Debt Securities. The short-term investments’ original maturity is greater than 90 days but less than one year, and they are classified as held to maturity, recorded as current assets, and are accounted for at amortized cost. Other Investments In connection with the closing of the securitization transaction, approximately $ 63 million in the form of U.S. Treasuries was deposited in an escrow account established with a trustee, for the purpose of paying interest and principal on $ 47 million in remaining debt of our subsidiary Frontier Southwest Incorporated. This balance is included in “Other assets” on our consolidated balance sheets and is restricted. See Note 8 for further details. |
Definite And Indefinite Lived Intangible Assets | Definite and Indefinite Lived Intangible Assets: Intangible assets are initially recorded at estimated fair value. Customer relationship intangibles have been established for business and wholesale customers. These intangibles are amortized on a straight-line basis over their assigned useful lives of between 11 and 16 years. Additionally, trademark and tradename assets established upon emergence are amortized on a straight-line basis over 5 years. We review such intangible assets annually, or more often if indicators of impairment arise, to determine whether there is evidence that indicates an impairment condition may exist that would necessitate a change in useful life and a different amortization period. |
Lease Accounting | 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. We assess potential impairments to our leases annually, or as indicators exist, if indicators of impairment arise to determine whether there is evidence that indicate an impairment condition may exist. We continue to review our real estate portfolio and, during the first quarter of 2022, determined to either terminate or market for sublease certain facilities leases, which triggered an impairment of $ 44 million for our finance and operating lease assets recorded as restructuring charges and other costs. See Note 9 for further details. |
Going Concern | Going Concern: In accordance with the requirements of Accounting Standards Update (“ASU”) 2014-15, “Presentation of Financial Statements Going Concern (ASU 2014-15)”, and ASC 205, “Presentation of Financial Statements”, we have the responsibility to evaluate at each reporting period, including interim periods, whether conditions and/or events raise substantial doubt about our ability to meet our future financial obligations. In its evaluation for this report, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due within one year following the date of issuance of this Quarterly Report on Form 10-Q. We believe we have the ability to meet our obligations for at least one year from the date of issuance of this Form 10-Q. Accordingly, the accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course business. |
Property, Plant And Equipment | Property, Plant and Equipment: Property, plant, and equipment are stated at original cost, including capitalized interest, or fair market value as of the date of acquisition for acquired properties. Maintenance and repairs are charged to operating expenses as incurred. The gross book value of routine property, plant and equipment retirements is charged against accumulated depreciation. |
Impairment Of Long-Lived Assets And Long-Lived Assets To Be Disposed Of | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of: We review long-lived assets to be held and used, including customer lists and property, plant and equipment, and long-lived assets to be disposed of for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset to the future undiscounted net cash flows expected to be generated by the asset. Recoverability of assets held for sale is measured by comparing the carrying amount of the assets to their estimated fair market value. If any assets are considered to be impaired, the impairment is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value. Also, we periodically reassess the useful lives of our long-lived assets to determine whether any changes are required. |
Income Taxes And Deferred Income Taxes | Income Taxes and Deferred Income Taxes: We file a consolidated federal income tax return. We utilize the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recorded for the tax effect of temporary differences between the financial statement basis and the tax basis of assets and liabilities using tax rates expected to be in effect when the temporary differences are expected to reverse. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, tax-planning strategies, and results of recent operations. If we determine that we are not able to realize a portion of our net deferred tax assets in the future, we would make an adjustment to the deferred tax asset valuation allowance, which would increase the provision for income taxes. The tax effect of a change in tax law or rates included in income tax expense from continuing operations includes effect of changes in deferred tax assets and liabilities initially recognized through a charge or credit to other comprehensive income (loss). The residual tax effects typically are released when the item giving rise to the tax effect is disposed of, liquidated, or terminated. |
Stock Plans | Stock Plans: We have one stock-based compensation plan under which grants are made and awards remain outstanding. Awards under this plan may be made to employees, directors or consultants of the Company or its affiliates, as determined by the Compensation and Human Capital Committee of the Board. Awards may be made in the form of restricted stock, restricted stock units, incentive stock options, non-qualified stock options, stock appreciation rights or other stock-based awards, including awards with performance, market, and time-vesting conditions. The compensation cost recognized is based on awards ultimately expected to vest. GAAP requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policy) | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements Adopted | Financial Accounting Standards Adopted During 2023 During the quarter ended September 30, 2023, we adopted, the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” (ASU 2022-04), which establishes interim and annual reporting disclosure requirements about a company’s supplier finance programs for its purchase of goods and services. In the year of adoption, the disclosure of payment and other key terms under the programs and outstanding balances under the obligations also applies to interim reporting dates. The adoption of this ASU does not have a material effect on our financial statements upon adoption. We have negotiated favorable payment terms with some of our vendors that allow for a longer payment period than our normal customary terms (referred to as vendor financing), which are excluded from capital expenditures and reported as financing activities. As of September 30, 2023 we have $ 169 million of vendor financing liabilities included in “Other current liabilities” on our consolidated balance sheets. No vendor financing payments were made as of September 30, 2023. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Data and Internet services $ 895 $ 848 $ 2,637 $ 2,531 Voice services 341 369 1,044 1,136 Video services 104 127 333 398 Other 81 82 253 245 Revenue from contracts with customers (1) 1,421 1,426 4,267 4,310 Subsidy and other revenue 15 18 58 40 Total revenue $ 1,436 $ 1,444 $ 4,325 $ 4,350 For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Consumer $ 787 $ 785 $ 2,323 $ 2,352 Business and wholesale 634 641 1,944 1,958 Revenue from contracts with customers (1) 1,421 1,426 4,267 4,310 Subsidy and other revenue 15 18 58 40 Total revenue $ 1,436 $ 1,444 $ 4,325 $ 4,350 (1) Includes lease revenue of $ 14 million and $ 44 million for the three and nine months ended September 30, 2023, and $ 15 million and $ 48 million for the three and nine months ended September 30, 2022, respectively. |
Changes In Contract Assets And Contract Liabilities | Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2022 $ 27 $ 17 Revenue recognized included in opening contract balance ( 29 ) ( 9 ) Credits granted, excluding amounts recognized as revenue 31 15 Reclassified between current and noncurrent 5 ( 5 ) Balance at September 30, 2023 $ 34 $ 18 Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2021 $ 27 $ 11 Revenue recognized included in opening contract balance ( 21 ) ( 8 ) Credits granted, excluding amounts recognized as revenue 17 17 Reclassified between current and concurrent 4 ( 4 ) Balance at September 30, 2022 $ 27 $ 16 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2023 (remaining three months) $ 294 2024 297 2025 169 2026 71 2027 14 Thereafter 9 Total $ 854 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) September 30, 2023 December 31, 2022 Retail and wholesale $ 406 $ 416 Other 76 69 Less: Allowance for doubtful accounts ( 33 ) ( 47 ) Accounts receivable, net $ 449 $ 438 |
Activity In The Allowance For Credit Losses | ($ in millions) Balance at December 31, 2022 $ 47 Provision for bad debt 24 Amounts charged to revenue 11 Write offs charged against the allowance ( 49 ) Balance at September 30, 2023 $ 33 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) September 30, 2023 December 31, 2022 Property, plant and equipment $ 15,714 $ 13,186 Less: Accumulated depreciation ( 2,093 ) ( 1,336 ) Property, plant and equipment, net $ 13,621 $ 11,850 |
Schedule Of Depreciation Expense | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Depreciation expense $ 276 $ 215 $ 799 $ 629 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangibles [Abstract] | |
Schedule Of Intangible Assets | September 30, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Intangibles: Customer Relationships - Business $ 800 $ ( 176 ) $ 624 $ 800 $ ( 121 ) $ 679 Customer Relationships - Wholesale 3,491 ( 527 ) 2,964 3,491 ( 364 ) 3,127 Trademarks & Tradenames 150 ( 73 ) 77 150 ( 50 ) 100 Total other intangibles $ 4,441 $ ( 776 ) $ 3,665 $ 4,441 $ ( 535 ) $ 3,906 |
Schedule Of Amortization Expense | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Amortization expense $ 80 $ 81 $ 241 $ 241 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | September 30, 2023 December 31, 2022 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 11,235 $ 9,977 $ 8,963 $ 8,079 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | For the nine months ended September 30, 2023 Principal January 1, Payments New September 30, ($ in millions) 2023 and Retirements Borrowings 2023 Secured debt issued by Frontier $ 8,113 $ ( 11 ) $ 750 $ 8,852 Secured debt issued by subsidiaries 100 ( 53 ) 1,586 1,633 Unsecured debt issued by subsidiaries 750 - - 750 Principal outstanding $ 8,963 $ ( 64 ) $ 2,336 $ 11,235 Less: Debt issuance costs ( 28 ) ( 68 ) Less: Current portion ( 15 ) ( 15 ) Less: Debt premium / (discount) - ( 64 ) Plus: Unamortized fair value adjustments (1) 190 170 Total Long-term debt $ 9,110 $ 11,258 (1) Upon emergence, we adjusted the carrying value of our debt to fair value. The adjustment consisted of the elimination of the existing unamortized debt issuance costs and unamortized discounts and recording a balance of $ 236 million as a fair value adjustment. The fair value accounting adjustment is being amortized into interest expense using the effective interest method. |
Schedule Of Secured And Unsecured Debt | September 30, 2023 December 31, 2022 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 10/8/2027 $ 1,438 9.180% (Variable ) $ 1,450 8.500% (Variable ) First lien notes due 10/15/2027 1,150 5.875 % 1,150 5.875 % First lien notes due 5/1/2028 1,550 5.000 % 1,550 5.000 % First lien notes due 5/15/2030 1,200 8.750 % 1,200 8.750 % First lien notes due 3/15/2031 750 8.625 % - - Second lien notes due 5/1/2029 1,000 6.750 % 1,000 6.750 % Second lien notes due 11/1/2029 750 5.875 % 750 5.875 % Second lien notes due 1/15/2030 1,000 6.000 % 1,000 6.000 % IDRB due 5/1/2030 13 6.200 % 13 6.200 % Total secured debt issued by Frontier 8,851 8,113 Secured debt issued by subsidiaries Debentures due 11/15/2031 47 8.500 % 100 8.500 % Series 2023-1 Revenue Term Notes Class A-2 due 7/20/2028 1,120 6.600 % - Series 2023-1 Revenue Term Notes Class B due 7/20/2028 155 8.300 % - Series 2023-1 Revenue Term Notes Class C due 7/20/2028 312 11.500 % - Total secured debt issued by subsidiaries 1,634 100 Unsecured debt issued by subsidiaries Debentures due 5/15/2027 200 6.750 % 200 6.750 % Debentures due 2/1/2028 300 6.860 % 300 6.860 % Debentures due 2/15/2028 200 6.730 % 200 6.730 % Debentures due 10/15/2029 50 8.400 % 50 8.400 % Total unsecured debt issued by subsidiaries 750 750 Principal outstanding $ 11,235 7.098 % (1) $ 8,963 6.760 % (1) (1) Interest rate represents a weighted average of the stated interest rates of multiple issuances. The anticipated repayment date of July 2028 is used for the Series 2023-1 Revenue Term Notes, classes A-2 B, and C when calculating the weighted average. |
Material Terms Of Fiber Term Notes | Security Issue Date Amount Outstanding Interest Rate (1) Anticipated Repayment Date Final Maturity Date Series 2023-1, Class A-2 term notes August 8, 2023 $ 1,120,000,000 6.60 % July 20, 2028 August 20, 2053 Series 2023-1, Class B term notes August 8, 2023 $ 155,000,000 8.30 % July 20, 2028 August 20, 2053 Series 2023-1, Class C term notes August 8, 2023 $ 312,000,000 11.50 % July 20, 2028 August 20, 2053 (1) If Frontier Issuer has not repaid or refinanced any Fiber Term Note prior to the monthly payment date in July of 2028, additional interest will accrue thereon in an amount equal to the greater of (i) 5.00 % per annum and (ii) the excess amount, if any, by which the sum of the following exceeds the interest rate for such note: (A) the yield to maturity (adjusted to a “mortgage-equivalent basis” pursuant to the standards and practices of the Securities Industry and Financial Markets Association) on the ARD for such note of the United States Treasury Security having a remaining term closest to 10 years plus (B) 5.00 % plus (C) the post-ARD note spread applicable to such Note. |
Restructuring And Other Charg_2
Restructuring And Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring And Other Charges [Abstract] | |
Changes In Restructuring Reserve | ($ in millions) Balance at January 1, 2023 $ 9 Severance expense 48 Cash payments during the period ( 39 ) Balance at September 30, 2023 $ 18 |
Investment And Other Income (Ta
Investment And Other Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investment And Other Income [Abstract] | |
Components Of Investment And Other Income (Loss) | For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Interest and dividend income $ 22 $ 16 $ 60 $ 24 Pension benefit 5 24 14 74 OPEB costs ( 2 ) ( 5 ) ( 7 ) ( 13 ) OPEB remeasurement gain 46 84 38 234 Pension remeasurement gain - 91 - 91 All other, net ( 4 ) 1 ( 4 ) - Total investment and other income, net $ 67 $ 211 $ 101 $ 410 |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2,514 $ 25.78 $ 64 Restricted stock units granted 1,364 $ 23.19 $ 21 Restricted stock units vested ( 1,179 ) $ 25.73 $ ( 18 ) Restricted stock units forfeited ( 166 ) $ 25.06 Balance at September 30, 2023 2,533 $ 24.46 $ 40 |
Target Performance Shares | Weighted Average Number of Award Date Shares Fair Value (in thousands) (per share) (1) Balance at January 1, 2023 3,485 $ 25.62 Target performance shares awarded, net 1,040 $ 24.36 Target performance shares forfeited ( 33 ) $ 25.59 Balance at September 30, 2023 4,492 $ 25.33 (1) Represents the weighted average of the closing price of our stock on the date of the awards. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended September 30, For the nine months ended September 30, 2023 2022 2023 2022 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit ( 4.3 ) 14.7 5.1 13.1 Changes in certain deferred tax balances - 2.1 - 1.5 Tax reserve adjustment ( 3.0 ) - ( 3.1 ) - Tax Credit 6.0 - 6.3 - Sec.162(m) - nondeductible Executive Compensation ( 18.5 ) 1.5 ( 19.1 ) 2.5 All other, net ( 0.5 ) ( 0.8 ) ( 0.5 ) ( 0.3 ) Effective tax rate 0.7 % 38.5 % 9.7 % 37.8 % |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Net Earnings Per Share [Abstract] | |
Reconciliation Of Net (Loss) Income Per Share | For the three months ended September 30, For the nine months ended September 30, ($ in millions and shares in thousands, except per share amounts) 2023 2022 2023 2022 Net income used for basic and diluted earnings per share: Total basic net income attributable to Frontier common shareholders $ 11 $ 120 $ 12 $ 286 Effect of loss related to dilutive stock units - - - - Total diluted net income attributable to Frontier common shareholders $ 11 $ 120 $ 12 $ 286 Basic earnings per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 245,761 244,984 245,431 244,711 Less: Weighted average unvested restricted stock awards - - - - Total weighted average shares outstanding - basic 245,761 244,984 245,431 244,711 Basic net earnings per share attributable to Frontier common shareholders $ 0.05 $ 0.49 $ 0.05 $ 1.17 Diluted earnings per share: Total weighted average shares outstanding - basic 245,761 244,984 245,431 244,711 Effect of dilutive performance stock awards 1,686 - 1,493 - Effect of dilutive restricted stock awards - 228 412 369 Total weighted average shares outstanding - diluted 247,447 245,212 247,336 245,080 Diluted net earnings per share attributable to Frontier common shareholders $ 0.05 $ 0.49 $ 0.05 $ 1.17 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net Of Tax | OPEB ($ in millions) Costs Balance at January 1, 2023 (1) $ 79 Other comprehensive income before reclassifications 33 Amounts reclassified from accumulated other comprehensive income to net loss ( 12 ) Net current-period other comprehensive income 21 Balance at September 30, 2023 (1) $ 100 OPEB ($ in millions) Costs Balance at January 1, 2022 (1) $ 60 Other comprehensive income before reclassifications 8 Amounts reclassified from accumulated other comprehensive loss to net loss ( 8 ) Net current-period other comprehensive loss - Balance at September 30, 2022 (1) $ 60 (1) OPEB amounts are net of deferred tax balances of $ 23 million and $ 15 million as of January 1, 2023 and 2022, respectively and $ 31 million and $ 16 million as of September 30, 2023 and 2022, respectively. |
Reclassification Out Of AOCI | Amount Reclassified from Accumulated Other Comprehensive Income (1) ($ in millions) Affected Line Item in For the three months ended For the nine months ended the Statement Where Details about Accumulated Other September 30, September 30, Net Income (Loss) Comprehensive Loss Components 2023 2022 2023 2022 is Presented Amortization of OPEB Cost Items Prior-service credits (costs) $ 6 $ 4 $ 16 $ 10 Income (loss) before income taxes Tax impact ( 2 ) - ( 4 ) ( 2 ) Income tax benefit $ 4 $ 4 $ 12 $ 8 Net income (loss) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension and OPEB costs (see Note 15 - Retirement Plans for additional details) . |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Pension [Member] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Components of total pension benefit cost Service cost $ 12 $ 14 $ 39 $ 55 Interest cost on projected benefit obligation 31 22 97 71 Expected return on plan assets ( 36 ) ( 46 ) ( 111 ) ( 145 ) Net periodic pension (benefit) 7 ( 10 ) 25 ( 19 ) Pension settlement costs - 50 - 50 Pension remeasurement gain - ( 91 ) - ( 91 ) Total pension benefit cost (income) $ 7 $ ( 51 ) $ 25 $ ( 60 ) |
OPEB [Member] | |
Net Periodic Benefit Cost | Postretirement For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2023 2022 2023 2022 Components of net periodic postretirement benefit cost Service cost $ 2 $ 3 $ 6 $ 10 Interest cost on projected benefit obligation 8 9 23 23 Amortization of prior service credit (gain) loss recognized ( 6 ) ( 4 ) ( 16 ) ( 10 ) OPEB remeasurement (gain) loss ( 46 ) ( 84 ) ( 38 ) ( 234 ) Total periodic postretirement (benefit) cost $ ( 42 ) $ ( 76 ) $ ( 25 ) $ ( 211 ) |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) segment item | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Annual support accepted for commitment for RDOF | $ 37 | |||
Number of reportable segments | segment | 1 | |||
Restricted cash | $ 106 | |||
Short-term Investments | $ 1,275 | $ 1,750 | ||
Lease Impairment | $ 44 | $ 44 | ||
Revenue recognition period, FCC's CAF Phase II subsidies | 7 years | |||
Provided funding period, for construction of broadband networks | 10 years | |||
Remaining outstanding principal | $ 11,235 | 8,963 | ||
Number of stock plans | item | 1 | |||
Securitization Trust Accounts [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash, current | $ 36 | |||
Restricted cash, noncurrent | 70 | |||
US Treasuries In Trust Account [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | 63 | |||
Secured Debt [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Remaining outstanding principal | 8,851 | $ 8,113 | ||
Debt On Frontier Southwest Properties [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Remaining outstanding principal | $ 47 | |||
Business And Wholesale [Member] | Minimum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Useful life | 11 years | |||
Business And Wholesale [Member] | Maximum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Useful life | 16 years | |||
Trademarks and Tradenames [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Useful life | 5 years |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Narrative) (Details) | Sep. 30, 2023 USD ($) |
Recent Accounting Pronouncements [Abstract] | |
Vendor financing liabilities | $ 169,000,000 |
Vendor financing payments made | $ 0 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 854 | $ 854 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,421 | $ 1,426 | 4,267 | $ 4,310 |
Other [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 81 | $ 82 | $ 253 | $ 245 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 1,421 | $ 1,426 | $ 4,267 | $ 4,310 |
Subsidy and other revenue | 15 | 18 | 58 | 40 |
Total revenue | 1,436 | 1,444 | 4,325 | 4,350 |
Data And Internet Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 895 | 848 | 2,637 | 2,531 |
Voice Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 341 | 369 | 1,044 | 1,136 |
Video Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 104 | 127 | 333 | 398 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 81 | 82 | 253 | 245 |
Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 787 | 785 | 2,323 | 2,352 |
Business And Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 634 | $ 641 | $ 1,944 | $ 1,958 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation Of Revenue Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue Recognition [Abstract] | ||||
Lease revenue | $ 14 | $ 15 | $ 44 | $ 48 |
Revenue, Remaining Performance Obligation, Amount | $ 854 | $ 854 |
Revenue Recognition (Changes In
Revenue Recognition (Changes In Contract Assets And Contract Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue Recognition [Abstract] | ||
Contract current liabilities, Beginning balance | $ 27 | $ 27 |
Contract current liabilities, Revenue recognized included in opening contract balance | (29) | (21) |
Contract current liabilities, Credits granted, excluding amounts recognized as revenue | 31 | 17 |
Contract current liabilities, Reclassified between current and concurrent | 5 | 4 |
Contract current liabilities, Ending balance | 34 | 27 |
Contract noncurrent liabilities, Beginning balance | 17 | 11 |
Contract noncurrent liabilities, Revenue recognized included in opening contract balance | (9) | (8) |
Contract noncurrent liabilities, Credits granted, excluding amounts recognized as revenue | 15 | 17 |
Contract noncurrent liabilities, Reclassified between current and noncurrent | (5) | (4) |
Contract noncurrent liabilities, Ending balance | $ 18 | $ 16 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 854 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 294 |
Performance obligation satisfaction period | 3 months |
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 | $ 297 |
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 | $ 169 |
Performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 71 |
Performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 14 |
Performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 9 |
Performance obligation satisfaction period | 1 year |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable [Abstract] | ||
Bad debt expense | $ 24 | $ 19 |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (33) | $ (47) |
Accounts receivable, net | 449 | 438 |
Retail And Wholesale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 406 | 416 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 76 | $ 69 |
Accounts Receivable (Activity I
Accounts Receivable (Activity In The Allowance For Credit Losses) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable [Abstract] | ||
Allowance for credit losses, Beginning Balance | $ 47 | |
Provision for bad debt | 24 | $ 19 |
Amounts charged to revenue | 11 | |
Write offs charged against the allowance | (49) | |
Allowance for credit losses, Ending Balance | $ 33 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of property | $ 39 | $ 2,843 | ||
Proceeds from sale and lease-back transactions | 21 | $ 70 | ||
Property, plant and equipment | 15,714 | 15,714 | $ 13,186 | |
Capital expenditures | 2,882 | $ 1,860 | ||
Capital expenditures incurred but not yet paid | 514 | |||
Accounts payable associated with capital | 635 | 635 | ||
Capitalized interest | 65 | |||
Towers [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from sale of property | 34 | |||
Gain (Loss) on sale of property | 21 | |||
Property, plant and equipment | 13 | 13 | ||
Materials And Supplies [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 589 | $ 589 | $ 546 |
Property, Plant, And Equipment
Property, Plant, And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant And Equipment [Abstract] | ||
Property, plant and equipment | $ 15,714 | $ 13,186 |
Less: Accumulated depreciation | (2,093) | (1,336) |
Property, plant and equipment, net | $ 13,621 | $ 11,850 |
Property, Plant, And Equipmen_2
Property, Plant, And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Depreciation [Abstract] | ||||
Depreciation expense | $ 276 | $ 215 | $ 799 | $ 629 |
Intangibles (Narrative) (Detail
Intangibles (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles impairment | $ 0 | $ 0 |
Customer Relationships - Wholesale [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 16 years | |
Customer Relationships - Business [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 11 years | |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years |
Intangibles (Schedule Of Intang
Intangibles (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,441 | $ 4,441 |
Accumulated Amortization | (776) | (535) |
Net Carrying Amount | 3,665 | 3,906 |
Customer Relationships - Business [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 800 | 800 |
Accumulated Amortization | (176) | (121) |
Net Carrying Amount | 624 | 679 |
Customer Relationships - Wholesale [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,491 | 3,491 |
Accumulated Amortization | (527) | (364) |
Net Carrying Amount | 2,964 | 3,127 |
Trademarks and Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150 | 150 |
Accumulated Amortization | (73) | (50) |
Net Carrying Amount | $ 77 | $ 100 |
Intangibles (Schedule Of Amorti
Intangibles (Schedule Of Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Intangibles [Abstract] | ||||
Amortization expense | $ 80 | $ 81 | $ 241 | $ 241 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 11,235 | $ 8,963 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 9,977 | $ 8,079 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) $ in Millions | 9 Months Ended | ||
Aug. 08, 2023 USD ($) | Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Principal outstanding | $ 11,235 | $ 8,963 | |
Weighted average interest rate | 7.098% | 6.76% | |
Remaining outstanding principal | $ 11,235 | $ 8,963 | |
Securitized Financing Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5% | ||
Line of credit facility maximum borrowing capacity | $ 500 | ||
Number of available extensions of repayment date | item | 2 | ||
Debt instrument, extension terms | 1 year | ||
Revolving Facility [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 249 | ||
Available borrowing capacity | $ 651 | ||
Line of Credit Facility, Maximum Permitted Leverage Ratio - Initial Covenant Term | 0.035% | ||
Line of Credit Facility, Maximum Permitted Leverage Ratio - 2nd Covenant Term | 0.0325% | ||
Line of Credit Facility, Maximum Permitted Leverage Ratio - 3rd Covenant Term | 0.03% | ||
Line of credit facility maximum borrowing capacity | $ 900 | ||
Revolving Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 3.50% | ||
Revolving Facility [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 2.50% | ||
Revolving Facility [Member] | SOFR Floor [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0% | ||
Revolving Facility - After April 30, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Days prior to maturity to meet threshold to not accelerate debt | 91 days | ||
Line of credit facility maximum borrowing capacity | $ 850 | ||
Series 2023-1 Revenue Term Notes Class A-2 Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,120 | ||
Interest rate | 6.60% | 6.60% | |
Final Maturity Date | Aug. 20, 2053 | ||
Proceeds from issuance of secured debt | $ 1,120 | ||
Remaining outstanding principal | $ 1,120 | ||
Series 2023-1 Revenue Term Notes Class B Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 155 | ||
Interest rate | 8.30% | 8.30% | |
Final Maturity Date | Aug. 20, 2053 | ||
Proceeds from issuance of secured debt | $ 155 | ||
Remaining outstanding principal | $ 155 | ||
Series 2023-1 Revenue Term Notes Class C Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 312 | ||
Interest rate | 11.50% | 11.50% | |
Final Maturity Date | Aug. 20, 2053 | ||
Proceeds from issuance of secured debt | $ 312 | ||
Remaining outstanding principal | $ 312 | ||
Fiber Term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of secured debt | 1,586 | ||
Debt, original issue discounts | $ 58 | ||
Debt On Frontier Southwest Properties [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 47 | ||
Remaining outstanding principal | 47 | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | 53 | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 8,851 | 8,113 | |
Remaining outstanding principal | 8,851 | 8,113 | |
Secured Debt [Member] | First Lien Notes Due 10/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,150 | $ 1,150 | |
Interest rate | 5.875% | 5.875% | |
Remaining outstanding principal | $ 1,150 | $ 1,150 | |
Secured Debt [Member] | First Lien Notes Due 5/1/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,550 | $ 1,550 | |
Interest rate | 5% | 5% | |
Remaining outstanding principal | $ 1,550 | $ 1,550 | |
Secured Debt [Member] | First Lien Notes Due 3/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 750 | ||
Interest rate | 8.625% | ||
Remaining outstanding principal | $ 750 | ||
Secured Debt [Member] | First Lien Notes Due 5/15/2030 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,200 | $ 1,200 | |
Interest rate | 8.75% | 8.75% | |
Remaining outstanding principal | $ 1,200 | $ 1,200 |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | $ 8,963 | |
Principal Payments and Retirements | (64) | |
New Borrowings | 2,336 | |
Principal debt outstanding, ending | 11,235 | |
Less: Debt issuance costs | (68) | $ (28) |
Less: Debt premium (discount) | (64) | |
Less: Current portion | (15) | (15) |
Plus: Unamortized fair value adjustments | 170 | 190 |
Long-term debt | 11,258 | $ 9,110 |
Long-term debt, fair value adjustment | 236 | |
Secured Debt Issued By Frontier [Member] | ||
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | 8,113 | |
Principal Payments and Retirements | (11) | |
New Borrowings | 750 | |
Principal debt outstanding, ending | 8,852 | |
Secured Debt Issued By Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | 100 | |
Principal Payments and Retirements | (53) | |
New Borrowings | 1,586 | |
Principal debt outstanding, ending | 1,633 | |
Unsecured Debt Issued By Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | 750 | |
Principal debt outstanding, ending | $ 750 |
Long-Term Debt (Schedule Of Sec
Long-Term Debt (Schedule Of Secured And Unsecured Debt) (Details) - USD ($) $ in Millions | Aug. 08, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Principal outstanding | $ 11,235 | $ 8,963 | |
Weighted average interest rate | 7.098% | 6.76% | |
Series 2023-1 Revenue Term Notes Class A-2 Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,120 | ||
Interest rate | 6.60% | 6.60% | |
Proceeds from issuance of secured debt | $ 1,120 | ||
Series 2023-1 Revenue Term Notes Class B Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 155 | ||
Interest rate | 8.30% | 8.30% | |
Proceeds from issuance of secured debt | $ 155 | ||
Series 2023-1 Revenue Term Notes Class C Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 312 | ||
Interest rate | 11.50% | 11.50% | |
Proceeds from issuance of secured debt | $ 312 | ||
Fiber Term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of secured debt | $ 1,586 | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 8,851 | $ 8,113 | |
Secured Debt [Member] | Term Loan Due 10/8/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,438 | $ 1,450 | |
Interest rate | 9.18% | 8.50% | |
Secured Debt [Member] | First Lien Notes Due 10/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,150 | $ 1,150 | |
Interest rate | 5.875% | 5.875% | |
Secured Debt [Member] | First Lien Notes Due 5/1/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,550 | $ 1,550 | |
Interest rate | 5% | 5% | |
Secured Debt [Member] | First Lien Notes Due 5/15/2030 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,200 | $ 1,200 | |
Interest rate | 8.75% | 8.75% | |
Secured Debt [Member] | First Lien Notes Due 3/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 750 | ||
Interest rate | 8.625% | ||
Secured Debt [Member] | Second Lien Notes Due 5/1/2029 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,000 | $ 1,000 | |
Interest rate | 6.75% | 6.75% | |
Secured Debt [Member] | Second Lien Notes Due 11/1/2029 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 750 | $ 750 | |
Interest rate | 5.875% | 5.875% | |
Secured Debt [Member] | Second Lien Notes Due 1/15/2030 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,000 | $ 1,000 | |
Interest rate | 6% | 6% | |
Secured Debt [Member] | IDRB Due 5/1/2030 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 13 | $ 13 | |
Interest rate | 6.20% | 6.20% | |
Secured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,634 | $ 100 | |
Secured Subsidiary Debt [Member] | Debentures Due 11/15/2031 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 47 | $ 100 | |
Interest rate | 8.50% | 8.50% | |
Secured Subsidiary Debt [Member] | Series 2023-1 Revenue Term Notes Class A-2 Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 1,120 | ||
Interest rate | 6.60% | ||
Secured Subsidiary Debt [Member] | Series 2023-1 Revenue Term Notes Class B Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 155 | ||
Interest rate | 8.30% | ||
Secured Subsidiary Debt [Member] | Series 2023-1 Revenue Term Notes Class C Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 312 | ||
Interest rate | 11.50% | ||
Unsecured Subsidiary Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 750 | $ 750 | |
Unsecured Subsidiary Debt [Member] | Debentures Due 5/15/2027 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 200 | $ 200 | |
Interest rate | 6.75% | 6.75% | |
Unsecured Subsidiary Debt [Member] | Debentures Due 2/1/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 300 | $ 300 | |
Interest rate | 6.86% | 6.86% | |
Unsecured Subsidiary Debt [Member] | Debentures Due 2/15/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 200 | $ 200 | |
Interest rate | 6.73% | 6.73% | |
Unsecured Subsidiary Debt [Member] | Debentures Due 10/15/2029 [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 50 | $ 50 | |
Interest rate | 8.40% | 8.40% |
Long-Term Debt (Material Terms
Long-Term Debt (Material Terms Of Fiber Term Notes) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Aug. 08, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Principal outstanding | $ 11,235 | $ 8,963 | |
Series 2023-1 Revenue Term Notes Class A-2 Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Issue Date | Aug. 08, 2023 | ||
Principal outstanding | $ 1,120 | ||
Interest Rate | 6.60% | 6.60% | |
Final Maturity Date | Aug. 20, 2053 | ||
Series 2023-1 Revenue Term Notes Class B Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Issue Date | Aug. 08, 2023 | ||
Principal outstanding | $ 155 | ||
Interest Rate | 8.30% | 8.30% | |
Final Maturity Date | Aug. 20, 2053 | ||
Series 2023-1 Revenue Term Notes Class C Due 7/20/2028 [Member] | |||
Debt Instrument [Line Items] | |||
Issue Date | Aug. 08, 2023 | ||
Principal outstanding | $ 312 | ||
Interest Rate | 11.50% | 11.50% | |
Final Maturity Date | Aug. 20, 2053 | ||
Fiber Term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate per annum | 5% | ||
Fiber Term Notes [Member] | US Treasury (UST) Interest Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate, remaining term | 10 years | ||
Interest rate margin | 5% |
Restructuring And Other Charg_3
Restructuring And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring costs and other charges | $ 16 | $ 4 | $ 48 | $ 88 | |
Lease Impairment Costs [Member] | |||||
Restructuring costs and other charges | 44 | ||||
Severance And Employee Costs [Member] | |||||
Restructuring costs and other charges | $ 15 | $ 23 | $ 26 | $ 48 | 35 |
Other Restructuring [Member] | |||||
Restructuring costs and other charges | $ 9 |
Restructuring And Other Charg_4
Restructuring And Other Charges (Changes In Restructuring Reserve) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring And Other Charges [Abstract] | |
Restructuring Reserve, Beginning Balance | $ 9 |
Severance expense | 48 |
Cash payments during the period | (39) |
Restructuring Reserve, Ending Balance | $ 18 |
Investment And Other Income (Na
Investment And Other Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investment And Other Income [Abstract] | ||||||
OPEB Remeasurement | $ 46 | $ 12 | $ (20) | $ 84 | $ 38 | $ 234 |
Investment And Other Income (Co
Investment And Other Income (Components Of Investment And Other Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investment And Other Income [Abstract] | ||||||
Interest and dividend income | $ 22 | $ 16 | $ 60 | $ 24 | ||
Pension benefit | 5 | 24 | 14 | 74 | ||
OPEB costs | (2) | (5) | (7) | (13) | ||
OPEB remeasurement gain | 46 | $ 12 | $ (20) | 84 | 38 | 234 |
Pension remeasurement gain | 91 | 91 | ||||
All other, net | (4) | 1 | (4) | |||
Total investment and other income, net | $ 67 | $ 211 | $ 101 | $ 410 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
2021 Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant under the plan (in shares) | 4,155,000 | ||
Shares authorized for grant under the plans (in shares) | 15,600,000 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | 3 years | 3 years |
Remaining unrecognized compensation cost associated with unvested restricted stock awards | $ 46 | ||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 1 year | ||
Cash compensation | $ 29 | $ 27 | |
Restricted Stock [Member] | Board of Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1 | ||
Performance Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Measurement period | 3 years | ||
Performance metric percent | 33.30% | ||
Conversion of stock, ratio | 1 | ||
Compensation expense | $ 52 | $ 27 | |
Minimum [Member] | Performance Stock [Member] | PSUs 2021 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout range, percent of target units | 0% | ||
Minimum [Member] | Performance Stock [Member] | PSUs 2022 And 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout range, percent of target units | 0% | ||
Maximum [Member] | Performance Stock [Member] | PSUs 2021 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout range, percent of target units | 300% | ||
Maximum [Member] | Performance Stock [Member] | PSUs 2022 And 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout range, percent of target units | 200% |
Stock Plans (Restricted Shares
Stock Plans (Restricted Shares Outstanding) (Details) - 2021 Incentive Plan [Member] $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 2,514 |
Restricted stock granted (in shares) | shares | 1,364 |
Restricted stock vested (in shares) | shares | (1,179) |
Restricted stock forfeited (in shares) | shares | (166) |
Balance at end of period (in shares) | shares | 2,533 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 25.78 |
Restricted stock granted (in dollars per shares) | $ / shares | 23.19 |
Restricted stock vested (in dollars per shares) | $ / shares | 25.73 |
Restricted stock forfeited (in dollars per shares) | $ / shares | 25.06 |
Balance at end of period (in dollars per shares) | $ / shares | $ 24.46 |
Balance at beginning of period | $ | $ 64 |
Restricted stock granted | $ | 21 |
Restricted stock vested | $ | (18) |
Restricted stock forfeited | $ | |
Balance at end of period | $ | $ 40 |
Performance Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 3,485 |
Restricted stock granted (in shares) | shares | 1,040 |
Restricted stock forfeited (in shares) | shares | (33) |
Balance at end of period (in shares) | shares | 4,492 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 25.62 |
Restricted stock granted (in dollars per shares) | $ / shares | 24.36 |
Restricted stock forfeited (in dollars per shares) | $ / shares | 25.59 |
Balance at end of period (in dollars per shares) | $ / shares | $ 25.33 |
Stock Plans (Target Performance
Stock Plans (Target Performance Shares) (Details) - 2021 Incentive Plan [Member] - Performance Stock [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 3,485 |
Target performance shares awarded, net (in shares) | shares | 1,040 |
Target performance shares forfeited (in shares) | shares | (33) |
Balance at end of period (in shares) | shares | 4,492 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 25.62 |
Target performance shares awarded, net (in dollars per shares) | $ / shares | 24.36 |
Target performance shares forfeited (in dollars per shares) | $ / shares | 25.59 |
Balance at end of period (in dollars per shares) | $ / shares | $ 25.33 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Income Taxes [Abstract] | |
Valuation allowance | $ 28 |
Valuation allowance, net of federal benefit | $ 22 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Taxes [Abstract] | ||||
Consolidated tax provision at federal statutory rate | 21% | 21% | 21% | 21% |
State income tax provisions, net of federal income tax benefit | (4.30%) | 14.70% | 5.10% | 13.10% |
Changes in certain deferred tax balances | 2.10% | 1.50% | ||
Tax reserve adjustment | (3.00%) | (3.10%) | ||
Tax Credit | 6% | 6.30% | ||
Sec. 162(m) - nondeductible Executive Compensation | (18.50%) | 1.50% | (19.10%) | 2.50% |
All other, net | (0.50%) | (0.80%) | (0.50%) | (0.30%) |
Effective tax rate | 0.70% | 38.50% | 9.70% | 37.80% |
Net Earnings Per Share (Reconci
Net Earnings Per Share (Reconciliation Of Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total basic net income attributable to Frontier common shareholders | $ 11 | $ 120 | $ 12 | $ 286 |
Total diluted net income attributable to Frontier common shareholders | $ 11 | $ 120 | $ 12 | $ 286 |
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 245,761 | 244,984 | 245,431 | 244,711 |
Total weighted average shares outstanding - basic | 245,761 | 244,984 | 245,431 | 244,711 |
Basic net earnings per share attributable to Frontier common shareholders | $ 0.05 | $ 0.49 | $ 0.05 | $ 1.17 |
Total weighted average shares outstanding - basic | 245,761 | 244,984 | 245,431 | 244,711 |
Total weighted average shares outstanding - diluted | 247,447 | 245,212 | 247,336 | 245,080 |
Diluted net earnings per share attributable to Frontier common shareholders | $ 0.05 | $ 0.49 | $ 0.05 | $ 1.17 |
Performance Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive awards (in shares) | 1,686 | 1,493 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive awards (in shares) | 228 | 412 | 369 |
Comprehensive Income (Accumulat
Comprehensive Income (Accumulated Other Comprehensive Income (Loss), Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance at beginning | $ 5,192 | $ 5,163 | $ 5,134 | $ 4,796 | $ 4,678 | $ 4,600 | $ 5,134 | $ 4,600 | ||
Net current-period other comprehensive income (loss) | 8 | 9 | 4 | (2) | 4 | (2) | 21 | |||
Balance at ending | 5,240 | 5,192 | 5,163 | 4,933 | 4,796 | 4,678 | 5,240 | 4,933 | ||
Pension And OPEB [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive income (loss), net of tax | 31 | 16 | 31 | 16 | $ 23 | $ 15 | ||||
Accumulated Other Comprehensive Income [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance at beginning | 92 | 83 | 79 | 62 | 58 | 60 | 79 | 60 | ||
Net current-period other comprehensive income (loss) | 8 | 9 | 4 | (2) | 4 | (2) | ||||
Balance at ending | 100 | $ 92 | 83 | 60 | $ 62 | 58 | 100 | 60 | ||
Accumulated Other Comprehensive Income [Member] | OPEB [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Balance at beginning | $ 79 | $ 60 | 79 | 60 | ||||||
Other comprehensive income before reclassifications | 33 | 8 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to net loss | (12) | (8) | ||||||||
Net current-period other comprehensive income (loss) | 21 | |||||||||
Balance at ending | $ 100 | $ 60 | $ 100 | $ 60 |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification Out Of AOCI) (Details) - Reclassification Out Of Accumulated Other Comprehensive Income [Member] - OPEB [Member] - Amortization Of Defined Benefit Cost Items [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, pretax | $ 6 | $ 4 | $ 16 | $ 10 |
Tax impact | (2) | (4) | (2) | |
Reclassifications, net of tax | $ 4 | $ 4 | $ 12 | $ 8 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Capitalization of pension and OPEB expense | $ 14 | $ 15 | |||||
Pension remeasurement gain | $ 91 | 91 | |||||
OPEB Remeasurement | $ 46 | $ 12 | $ (20) | 84 | 38 | 234 | |
Pension [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Settlement threshold | 169 | ||||||
Pension settlement costs | 50 | 50 | |||||
Contributions to plans | 116 | ||||||
Pension remeasurement gain | 91 | 91 | |||||
Increase in plan assets | 50 | ||||||
Plan assets | 2,083 | 2,083 | $ 2,033 | ||||
Investment returns | 85 | ||||||
Benefit payments | 151 | ||||||
Settlements | 177 | ||||||
OPEB [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Remeasurement (gains) loss | $ 46 | $ 12 | $ (20) | $ 84 | $ 38 | $ 234 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension remeasurement gain | $ (91) | $ (91) | ||||
Pension [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 12 | 14 | $ 39 | 55 | ||
Interest cost on projected benefit obligation | 31 | 22 | 97 | 71 | ||
Expected return on plan assets | (36) | (46) | (111) | (145) | ||
Net periodic (benefit) cost | 7 | (10) | 25 | (19) | ||
Pension settlement costs | 50 | 50 | ||||
Pension remeasurement gain | (91) | (91) | ||||
Total pension benefit cost (income) | 7 | (51) | 25 | (60) | ||
OPEB [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 2 | 3 | 6 | 10 | ||
Interest cost on projected benefit obligation | 8 | 9 | 23 | 23 | ||
Amortization of prior service credit (gain) loss recognized | (6) | (4) | (16) | (10) | ||
Remeasurement (gains) loss | (46) | $ (12) | $ 20 | (84) | (38) | (234) |
Net periodic (benefit) cost | $ (42) | $ (76) | $ (25) | $ (211) |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 9 Months Ended | 12 Months Ended | ||
May 23, 2023 USD ($) | Jan. 30, 2020 USD ($) item state | Sep. 30, 2023 item | Dec. 31, 2015 USD ($) | |
Commitments And Contingencies [Line Items] | ||||
ACP, amount per month provided to qualified customers | item | 30 | |||
ACP, amount per month provided to qualified customers on Tribal lands | item | 75 | |||
Settlement agreement amount | $ | $ 18 | |||
RDOF Program, Phase I [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Awarded 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 | state | 8 | |||
RDOF Program, Phase II [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Annual support offered by the Federal Communications Commission | $ | $ 313 | |||
Minimum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Terms of lease arrangements | 1 year | |||
Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Terms of lease arrangements | 99 years |