Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Period End Date | Mar. 31, 2024 | |
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 | 86-2359749 | |
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 $0.01 per share | |
Trading Symbol | FYBR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 248,552,000 | |
Entity Central Index Key | 0000020520 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,296 | $ 1,125 |
Short-term investments | 225 | 1,075 |
Accounts receivable, less allowances of $64 and $53, respectively | 447 | 446 |
Prepaid expenses | 64 | 67 |
Income taxes and other current assets | 49 | 68 |
Total current assets | 2,081 | 2,781 |
Property, plant and equipment, net | 14,296 | 13,933 |
Other intangibles, net | 3,505 | 3,585 |
Other assets | 315 | 394 |
Total assets | 20,197 | 20,693 |
Current liabilities: | ||
Long-term debt due within one year | 15 | 15 |
Accounts payable and accrued liabilities | 884 | 1,103 |
Advanced billings | 196 | 182 |
Accrued other taxes | 122 | 118 |
Accrued interest | 183 | 126 |
Pension and other postretirement benefits | 38 | 38 |
Other current liabilities | 502 | 693 |
Total current liabilities | 1,940 | 2,275 |
Deferred income taxes | 641 | 643 |
Pension and other postretirement benefits | 563 | 697 |
Other liabilities | 554 | 553 |
Long-term debt | 11,240 | 11,246 |
Total liabilities | 14,938 | 15,414 |
Equity: | ||
Common stock, $0.01 par value (1,750,000 authorized shares, 248,547 and 245,813 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively) | 2 | 2 |
Additional paid-in capital | 4,281 | 4,297 |
Retained earnings | 885 | 884 |
Accumulated other comprehensive income, net of tax | 91 | 96 |
Total equity | 5,259 | 5,279 |
Total liabilities and equity | $ 20,197 | $ 20,693 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Balance Sheets [Abstract] | ||
Allowances for accounts receivable, current | $ 64 | $ 53 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,750,000 | 1,750,000 |
Common stock, shares issued (in shares) | 248,547 | 245,813 |
Common stock, shares outstanding (in shares) | 248,547 | 245,813 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements Of Income [Abstract] | ||
Revenue | $ 1,462 | $ 1,440 |
Operating expenses: | ||
Cost of service | 522 | 542 |
Selling, general, and administrative expenses | 428 | 417 |
Depreciation and amortization | 388 | 330 |
Restructuring costs and other charges | 34 | 8 |
Total operating expenses | 1,372 | 1,297 |
Operating income | 90 | 143 |
Investment and other income, net (See Note 10) | 112 | 2 |
Interest expense | (199) | (141) |
Income before income taxes | 3 | 4 |
Income tax expense | 2 | 1 |
Net income | $ 1 | $ 3 |
Basic net earnings per share attributable to Frontier common shareholders | $ 0 | $ 0.01 |
Diluted net earnings per share attributable to Frontier common shareholders | $ 0 | $ 0.01 |
Total weighted average shares outstanding - basic | 246,301 | 245,081 |
Total weighted average shares outstanding - diluted | 247,040 | 246,425 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income | $ 1 | $ 3 |
Other comprehensive (loss) income, net of tax | (5) | 4 |
Comprehensive (loss) income | $ (4) | $ 7 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
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 (loss) income, 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, 2023 | $ 2 | 4,297 | 884 | 96 | 5,279 |
Balance (in shares) at Dec. 31, 2023 | 245,813 | ||||
Stock plans, net | (16) | (16) | |||
Stock plans, net (in shares) | 2,734 | ||||
Net income | 1 | 1 | |||
Other comprehensive (loss) income, net of tax | (5) | (5) | |||
Balance at ending at Mar. 31, 2024 | $ 2 | $ 4,281 | $ 885 | $ 91 | $ 5,259 |
Balance (in shares) at Mar. 31, 2024 | 248,547 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows provided from (used by) operating activities: | ||
Net Income | $ 1 | $ 3 |
Adjustments to reconcile net income to net cash provided from (used by) operating activities: | ||
Depreciation and amortization | 388 | 330 |
Pension / OPEB special termination benefit enhancements | 7 | |
Stock-based compensation expense | 26 | 24 |
Amortization of premium | (5) | (7) |
Bad debt expense | 9 | 7 |
Other adjustments | 4 | 1 |
Change in accounts receivable | (9) | 2 |
Change in long-term pension and other postretirement liabilities | (146) | (7) |
Change in accounts payable and other liabilities | 27 | 30 |
Change in prepaid expenses, income taxes, and other assets | 33 | 6 |
Net cash provided from operating activities | 335 | 389 |
Cash flows provided from (used by) investing activities: | ||
Capital expenditures | (666) | (1,154) |
Purchase of short-term investments | (225) | |
Sale of short-term investments | 850 | 1,075 |
Other | 2 | |
Net cash provided from (used by) investing activities | 186 | (304) |
Cash flows provided from (used by) financing activities: | ||
Long-term debt principal payments | (4) | (4) |
Net proceeds from long-term debt borrowings | 750 | |
Payments of vendor financing | (363) | |
Financing costs paid | (13) | |
Finance lease obligation payments | (7) | (5) |
Taxes paid on behalf of employees for shares withheld | (43) | (3) |
Other | (6) | |
Net cash (used by) provided from financing activities | (423) | 725 |
Increase in cash, cash equivalents, and restricted cash | 98 | 810 |
Cash, cash equivalents, and restricted cash at January 1, | 1,239 | 322 |
Cash, cash equivalents, and restricted cash at March 31, | 1,337 | 1,132 |
Supplemental cash flow information: Cash paid during the period for: | ||
Interest | 149 | 83 |
Income tax (refund) payments, net | $ (13) | $ 5 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | (1) Summary of Significant Accounti ng Policies : a) Description of Business: Frontier Communications Parent, Inc. is a provider of communications services in the United States, with approximately 3.0 million broadband subscribers and approximately 13,200 employees, operating in 25 states. We were incorporated in 1935, originally under the name of Citizens Utilities Company and known as Citizens Communications Company until July 31, 2008. Frontier and its subsidiaries are referred to herein as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. b) Basis of Presentation and Use of Estimates : 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, 2023. The consolidated financial statements include the accounts of Frontier Communications Parent, Inc., all consolidated subsidiaries and variable interest entities of which the Company is the primary beneficiary. 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 March 31, 2024, 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 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. c) 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. d) 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 March 31, 2024, the Company had $ 41 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 March 31, 2024, approximately $ 40 million is current restricted cash held for the purpose of paying interest and certain fees. In addition, as of March 31, 2024, we had approximately $ 1 million in noncurrent restricted cash to satisfy a portion of the required liquidity reserve amount, related to the securitization transaction. e) 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 March 31, 2024 , short-term investments of $ 225 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between April 25, 2024, and May 2, 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. As of March 31, 2024, this balance was approximately $ 62 million and is included in “Other assets” on our consolidated balance sheets and is restricted. See Note 8 for further details. f) 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. The seven-year funding term 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 penalties, 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 potential penalties, if ultimately incurred, 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 penalties, requirements and obligations. We accrue for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated. g) 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. h) Definite Lived Intangible Assets: Intangible assets are initially recorded at estimated fair value. Customer relationship intangibles were 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. (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) 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. k) 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. The residual tax effects typically are released when the item giving rise to the tax effect is disposed of, liquidated, or terminated. l) 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 | 3 Months Ended |
Mar. 31, 2024 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements: Financial Accounting Standards Not Yet Adopted ASU No. 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2024. ASU No. 2023-07 – Segment Reporting (Topic 280): Improvements to reportable segment disclosures. The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Currently, Topic 280 requires that a public entity disclose certain information about its reportable segments. For example, a public entity is required to report a measure of segment profit or loss that the CODM uses to assess segment performance and make decisions about allocating resources. Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. The amendments in this update do not change or remove those disclosure requirements. The amendments in this update also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
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 (“nonswitched access”) including services to wireless providers (“wireless backhaul”); Voice services include traditional local and long-distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our 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 collocation services, and revenue from other services and fees. Switched access revenue includes revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic (switched access). These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies; and Subsidy and other regulatory revenue includes revenues generated from cost subsidies from state and federal authorities, including the CAF II and RDOF. The following tables provide a summary of revenues, by category. For the three months ended March 31, ($ in millions) 2024 2023 Data and Internet services $ 947 $ 862 Voice services 321 356 Video services 94 117 Other 84 83 Revenue from contracts with customers (1) 1,446 1,418 Subsidy and other revenue 16 22 Total revenue $ 1,462 $ 1,440 For the three months ended March 31, ($ in millions) 2024 2023 Consumer $ 787 $ 761 Business and wholesale 659 657 Revenue from contracts with customers (1) 1,446 1,418 Subsidy and other revenue 16 22 Total revenue $ 1,462 $ 1,440 (1) Includes lease revenue of $ 13 million and $ 15 million for the three months ended March 31, 2024 and 2023, respectively. The following is a summary of the changes in the contract liabilities: Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2023 $ 33 $ 17 Revenue recognized included in opening contract balance ( 8 ) ( 5 ) Credits granted, excluding amounts recognized as revenue 8 3 Reclassified between current and noncurrent - - Balance at March 31, 2024 $ 33 $ 15 Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2022 $ 27 $ 17 Revenue recognized included in opening contract balance ( 9 ) ( 3 ) Credits granted, excluding amounts recognized as revenue 10 5 Reclassified between current and noncurrent 2 ( 2 ) Balance at March 31, 2023 $ 30 $ 17 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 2024 (remaining nine months) $ 437 2025 202 2026 104 2027 21 2028 11 Thereafter 5 Total $ 780 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ( 4) Accounts Receivable : The components of accounts receivable, net at March 31, 2024 and December 31, 2023 are as follows : ($ in millions) March 31, 2024 December 31, 2023 Retail and Wholesale $ 448 $ 438 Other 63 61 Less: Allowance for doubtful accounts ( 64 ) ( 53 ) Accounts receivable, net $ 447 $ 446 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 $ 9 million and $ 7 million for the three months ended March 31, 2024 and 2023, respectively. Approximately $ 154 million and $ 143 million of credits related to customers are included in other current liabilities on our consolidated balance sheets as of March 31, 2024, and December 31, 2023, 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 three months ended March 31, 2024 was as follows: ($ in millions) Balance at December 31, 2023 $ 53 Provision for bad debt 9 Amounts charged to revenue 12 Write offs charged against the allowance ( 10 ) Balance at March 31, 2024 $ 64 |
Property, Plant And Equipment
Property, Plant And Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | ( 5) Property, Plant and Equipment : Property, plant and equipment, net at March 31, 2024 and December 23, 2023 are as follows : ($ in millions) March 31, 2024 December 31, 2023 Property, plant and equipment $ 16,986 $ 16,324 Less: Accumulated depreciation ( 2,690 ) ( 2,391 ) Property, plant and equipment, net $ 14,296 $ 13,933 As of March 31, 2024, our materials and supplies were $ 549 million, as compared to $ 594 million as of December 31, 2023. Components of this include fiber, network electronics, and customer premises equipment. During the three months ended March 31, 2024, our capital expenditures were $ 666 million which included a net decrease of $ 156 million due to changes in accounts payable and accrued liabilities from December 31, 2023. In addition, during the three months ended March 31, 2024, our vendor financing payments were $ 363 million, a net decrease of $ 205 million from December 31, 2023. As of March 31, 2024, there was $ 500 million in “Accounts payable and accrued liabilities”, for payables associated with capital expenditures, and $ 50 million included in “Other current liabilities” for vendor financing payables associated with capital expenditures. For the three months ended March 31, 2024 , we had capitalized interest of $ 12 million. Depreciation expense is principally based on the composite group method. Depreciation expense was as follows : For the three months ended March 31, ($ in millions) 2024 2023 Depreciation expense $ 308 $ 250 |
Intangibles
Intangibles | 3 Months Ended |
Mar. 31, 2024 | |
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. No impairment was present for either intangibles or property plant and equipment as of March 31, 2024, and 2023. The balances of these assets as of March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Intangibles: Customer Relationships - Business $ 800 $ ( 212 ) $ 588 $ 800 $ ( 194 ) $ 606 Customer Relationships - Wholesale 3,491 ( 637 ) 2,854 3,491 ( 582 ) 2,909 Trademarks & Tradenames 150 ( 87 ) 63 150 ( 80 ) 70 Total other intangibles $ 4,441 $ ( 936 ) $ 3,505 $ 4,441 $ ( 856 ) $ 3,585 Amortization expense was as follows: For the three months ended March 31, ($ in millions) 2024 2023 Amortization expense $ 80 $ 80 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023. 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. March 31, 2024 December 31, 2023 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 11,227 $ 10,733 $ 11,231 $ 10,712 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (8) Long-Term Debt : The activity in long-term debt is summarized as follows: For the three months ended March 31, 2024 Principal January 1, Payments New March 31, ($ in millions) 2024 and Retirements Borrowings 2024 Secured debt issued by Frontier $ 8,848 $ ( 4 ) $ - $ 8,844 Secured debt issued by subsidiaries 1,633 - - 1,633 Unsecured debt issued by subsidiaries 750 - - 750 Principal outstanding $ 11,231 $ ( 4 ) $ - $ 11,227 Less: Debt issuance costs ( 71 ) ( 68 ) Less: Current portion ( 15 ) ( 15 ) Less: Debt premium / (discount) ( 64 ) ( 52 ) Plus: Unamortized fair value adjustments (1) 165 148 Total Long-term debt $ 11,246 $ 11,240 (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 unsecured debt, senior secured debt, and subsidiary debt at March 31, 2024 and December 31, 2023 is as follows : March 31, 2024 December 31, 2023 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 10/8/2027 $ 1,431 9.195% (Variable ) $ 1,435 9.220% (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 % 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 8,844 8,848 Secured debt issued by subsidiaries Debentures due 11/15/2031 (2) 47 8.500 % 47 8.500 % Series 2023-1 Revenue Term Notes Class A-2 due 7/20/2028 1,119 6.600 % 1,119 6.600 % Series 2023-1 Revenue Term Notes Class B due 7/20/2028 155 8.300 % 155 8.300 % Series 2023-1 Revenue Term Notes Class C due 7/20/2028 312 11.500 % 312 11.500 % Total secured debt issued by subsidiaries 1,633 1,633 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 $ 11,227 7.099% (1) $ 11,231 7.103% (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. (2) Interest and principal on $ 47 million in remaining debt of our subsidiary Frontier Southwest Incorporated which was defeased in 2023 in connection with the closing of the securitization transaction. 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, and the indentures for the secured fiber network revenue term notes and secured fiber network revenue variable funding notes are contained in our Annual Report on Form 10-K including agreements filed as exhibits thereto. Credit Facilities and Term Loans Revolving Facility 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 $ 336 million of letters of credit outstanding, we had $ 564 million of available borrowing capacity under the Revolving Facility as of March 31, 2024. The Revolving Facility includes customary negative covenants for loan agreements of this type, including covenants limiting Frontier and our restricted subsidiaries’ (other than certain covenants therein which are limited to subsidiary guarantors) ability to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and acquisitions, pay dividends and distributions and make payments in respect of certain material payment subordinated indebtedness, in each case subject to customary exceptions for loan agreements of this type. The Revolving Facility also includes certain customary representations and warranties, affirmative covenants, and events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under ERISA, change of control or damage to a material portion of the collateral. Term Loan Facility Subject to certain exceptions and thresholds, the security package under the Term Loan Facility includes pledges of the equity interests in certain of our subsidiaries, which as of the issue date is limited to certain specified pledged entities and substantially all personal property of Frontier Video Services Inc., a Delaware corporation (“Frontier Video”), which same assets also secure the First Lien Notes (as defined below). The Term Loan Facility is guaranteed by the same subsidiaries that guarantee the First Lien Notes. The Term Loan Facility includes customary negative covenants for loan agreements of this type, including covenants limiting Frontier and our restricted subsidiaries’ (other than certain covenants therein which are limited to subsidiary guarantors) ability to, among other things, incur additional indebtedness, create liens on assets, make investments, loans or advances, engage in mergers, consolidations, sales of assets and acquisitions, pay dividends and distributions and make payments in respect of certain material payment subordinated indebtedness, in each case subject to customary exceptions for loan agreements of this type. The Term Loan Facility also includes certain customary representations and warranties, affirmative covenants and events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, certain events under ERISA, upon the conversion date, unstayed judgments in favor of a third-party involving an aggregate liability in excess of a certain threshold, change of control, upon the conversion date, specified governmental actions having a material adverse effect or condemnation or damage to a material portion of the collateral. |
Restructuring And Other Charges
Restructuring And Other Charges | 3 Months Ended |
Mar. 31, 2024 | |
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 three month period ended March 31, 2024, we incurred $ 34 million in restructuring charges and other costs consisting of $ 7 million in pension/OPEB special termination benefit enhancements related to a voluntary separation program, $ 12 million of severance and employee costs resulting from workforce reductions, and $ 15 million of costs related to other restructuring activities. During the three month period ended March 31 , 2023, we incurred $ 8 million in restructuring charges and other costs consisting of $ 10 million of severance and employee costs resulting from workforce reductions, and $ 2 million of income related to other restructuring activities. The following is a summary of the changes in the liabilities established for restructuring and related programs: ($ in millions) Balance at January 1, 2024 $ 10 Severance expense 12 Other costs 22 Cash payments during the period ( 30 ) Balance at March 31, 2024 $ 14 |
Investment And Other Income, Ne
Investment And Other Income, Net | 3 Months Ended |
Mar. 31, 2024 | |
Investment And Other Income, Net [Abstract] | |
Investment and Other Income, Net | (10) Investment and Other Income, Net: The components of investment and other income, net are as follows: For the three months ended March 31, ($ in millions) 2024 2023 Interest and dividend income $ 18 $ 21 Pension benefit 12 4 OPEB costs ( 1 ) ( 3 ) OPEB remeasurement gain (loss) 9 ( 20 ) Pension remeasurement gain 74 - Total investment and other income, net $ 112 $ 2 As a result of special termination benefit enhancements related to a voluntary separation plan, Frontier remeasured its pension plan and postretirement benefit plan obligations, resulting in remeasurement gains of $ 74 million and $ 9 million, respectively, for the three months ended March 31, 2024. In the first quarter of 2023, Frontier amended the medical coverage for certain postretirement benefit plans, which resulted in remeasurement losses of $ 20 million, primarily due to discount rate changes. Pension and OPEB benefit (cost) consists of interest 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 were 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 March 31, 2024, approximately 1,134,000 shares were available to grant under the Emergence LTI Program. Restricted Stock Units The following summary presents information regarding unvested restricted stock 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, 2024 2,468 $ 24.37 $ 63 Restricted stock units granted 1,266 $ 23.29 $ 31 Restricted stock units vested ( 626 ) $ 26.51 $ ( 15 ) Restricted stock units forfeited ( 16 ) $ 24.06 Balance at March 31, 2024 3,092 $ 24.65 $ 76 For purposes of determining compensation expense, the fair value of each restricted stock grant is estimated based on the closing price of our common stock on the date of grant. The non-vested restricted stock units granted in 2022, 2023, and 2024 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 restricted stock awards that is deferred at March 31, 2024 was $ 57 million and the weighted average vesting period over which this cost is expected to be recognized is approximately 1 year. None of the restricted stock awards may be sold, assigned, pledged, or otherwise transferred, voluntarily or involuntarily, by the employees until the restrictions lapse, subject to limited exceptions. The restrictions are time-based. Compensation expense, recognized in “Selling, general, and administrative expenses”, of $ 10 million and $ 8 million for the three month-periods ended March 31, 2024, and 2023, respectively, has been recorded in connection with restricted stock . Performance Stock Units We currently have performance stock units (“PSU”) outstanding for the 2022, 2023 and 2024 plans. Under these plans, a target number of PSUs are awarded to each participant with respect to a three-year performance period (“The Measurement Period”). For the 2024 PSU plan, for example, the Measurement Period is from January 1, 2024, through December 31, 2026. The performance metrics under the 2024 PSU plan consist of (1) Adjusted Fiber EBITDA, (2) Fiber Revenue and (3) Relative Total Shareholder Return (“TSR”). Relative TSR is based on our total return to stockholders over the Measurement Period relative to the S&P 400 Mid Cap Index. The metrics under the 2022 and 2023 plans are (1) Adjusted Fiber EBITDA, (2) Fiber Locations Constructed and (3) Expansion Fiber Penetration with an overall relative TSR modifier. For all outstanding plans, 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, and the number of awards earned will be determined based on actual performance relative to the targets of each performance metric. Achievement is measured on a cumulative basis for each performance metric individually at the end of the three-year Measurement Period with a TSR modifier for the 2022 and 2023 plans. The payout of the 2022, 2023 and 2024 PSUs can range from 0 % to a maximum award payout of 200 % of the target units. 2021 PSU awards paid out at 126 % of target on March 1, 2024. The number of PSU awards earned at the end of the 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 shares earned for the Measurement Period in the first quarter of the year following the end of the Measurement Period. PSUs 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 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. For the 2024 PSU awards, the targets related to two of the three performance metrics have not been established. As a result, as of March 31, 2024, we have recognized associated expense with respect to 1/3 of the aggregate outstanding 2024 PSU awards. The following summary presents information regarding performance shares and changes during the period with regard to performance shares awarded under the 2021 Incentive Plan : Weighted Average Number of Award Date Shares Fair Value (in thousands) (per share) (1) Balance at January 1, 2024 4,487 $ 25.33 Target performance shares awarded, net 1,769 $ 24.35 Target performance shares vested ( 3,898 ) $ 25.62 Target performance shares forfeited ( 2 ) $ 26.61 Balance at March 31, 2024 2,356 $ 25.21 (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 performance share grant 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 metric for the 2024 grant and TSR modifier for previous years. For both the three months ended March 31, 2024, and 2023, we recognized net compensation expense, reflected in “Selling, general, and administrative expenses,” of $ 16 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 less than $ 1 million for the three months ended March 31, 2024. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit 12.0 12.5 Federal tax refund true-up 33.2 - Tax reserve adjustment ( 0.4 ) ( 1.9 ) Tax Credit 0.7 3.9 Sec.162(m) - nondeductible Executive Compensation ( 2.7 ) ( 11.4 ) All other, net ( 0.1 ) ( 3.4 ) Effective tax rate 63.7 % 20.7 % Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the first quarter of 2024, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $ 303 million ($ 240 million net of federal benefit) was recorded as of March 31, 2024. |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, ( $ in millions and shares in thousands, except per share amounts ) 2024 2023 Net income used for basic and diluted earnings per share: Total basic net income attributable to Frontier common shareholders $ 1 $ 3 Effect of loss related to dilutive stock units - - Total diluted net income attributable to Frontier common shareholders $ 1 $ 3 Basic earnings per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 246,301 245,081 Less: Weighted average unvested restricted stock awards - - Total weighted average shares outstanding - basic 246,301 245,081 Basic net earnings per share attributable to Frontier common shareholders $ 0.00 $ 0.01 Diluted earnings per share: Total weighted average shares outstanding - basic 246,301 245,081 Effect of dilutive performance stock awards 72 769 Effect of dilutive restricted stock awards 667 575 Total weighted average shares outstanding - diluted 247,040 246,425 Diluted net earnings per share attributable to Frontier common shareholders $ 0.00 $ 0.01 In calculating diluted net income per common share for the three months ended March 31, 2024 and 2023, the effect of certain outstanding PSUs is included in the computation as their respective performance metrics have been satisfied as of March 31, 2024 and 2023, respectively. |
Comprehensive (Loss) Income
Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive (Loss) Income [Abstract] | |
Comprehensive (Loss) Income | (14) Comprehensive (loss) Income : Comprehensive (loss) income consists of net income and other gains and losses affecting shareholders’ equity (deficit) 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, 2024 (1) $ 96 Other comprehensive income before reclassifications - Amounts reclassified from accumulated other comprehensive loss to net loss ( 5 ) Net current-period other comprehensive loss ( 5 ) Balance at March 31, 2024 (1) $ 91 OPEB ($ in millions) Costs Balance at January 1, 2023 (1) $ 79 Other comprehensive income before reclassifications 8 Amounts reclassified from accumulated other comprehensive loss to net income ( 4 ) Net current-period other comprehensive income 4 Balance at March 31, 2023 (1) $ 83 (1) OPEB amounts are net of deferred tax balances of $ 29 million and $ 23 million as of January 1, 2024 and 2023, respectively, and $ 27 million and $ 25 million as of March 31, 2024 and 2023, respectively. The significant items reclassified from each component 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 the Statement Where Details about Accumulated Other March 31, Net Income (Loss) Comprehensive Loss Components 2024 2023 is Presented Amortization of OPEB Cost Items Prior-service credits (costs) $ 6 $ 5 Income (loss) before income taxes Tax impact ( 1 ) ( 1 ) Income tax benefit $ 5 $ 4 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, ($ in millions) 2024 2023 Components of total pension benefit cost Service cost $ 12 $ 13 Interest cost on projected benefit obligation 30 33 Expected return on plan assets ( 42 ) ( 37 ) Pension remeasurement (gain) ( 74 ) - Net periodic pension (benefit) costs ( 74 ) 9 Pension special termination benefit enhancements 6 - Total pension (benefit) cost $ ( 68 ) $ 9 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 $ 93 million from $ 2,268 million at December 31, 2023 to $ 2,361 million at March 31, 2024. This increase primarily resulted from changes in the market value of investments of $ 79 million, net of plan expenses, and contributions of $ 57 million, offset by benefit payments to participants of $ 43 million. As a result of special termination benefit enhancements related to a voluntary separation plan, Frontier remeasured its pension plan obligations, resulting in a remeasurement gain of $ 74 million for the three months ended March 31, 2024. 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. In the first quarter of 2024, the Company recognized a charge of $ 6 million to reflect the cost of pension special termination benefit enhancements related to a voluntary separation plan. The following table provides the components of total postretirement benefit cost : Postretirement For the three months ended March 31, ($ in millions) 2024 2023 Components of net periodic postretirement benefit cost Service cost $ 1 $ 2 Interest cost on projected benefit obligation 7 8 Amortization of prior service credit gain recognized ( 6 ) ( 5 ) OPEB remeasurement (gain) loss ( 9 ) 20 Net periodic postretirement (benefit) cost ( 7 ) 25 OPEB special termination benefit enhancements 1 - Total periodic postretirement (benefit) cost $ ( 6 ) $ 25 As a result of special termination benefit enhancements related to a voluntary separation plan, Frontier remeasured its postretirement benefit plan, resulting in a remeasurement gain of $ 9 million for the three months ended March 31, 2024. In the first quarter of 2024, the Company recognized a charge of $ 1 million to reflect the cost of OPEB special termination benefit enhancements related to a voluntary separation plan. In the first quarter of 2023, Frontier amended the medical coverage for certain postretirement benefit plans, which resulted in remeasurement losses of $ 20 million, primarily due to discount rate changes. We capitalized $ 4 million of pension and OPEB expense for both the three months ended March 31, 2024 and 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (16) Commitments and Contingencies : 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. Frontier has been named as a defendant in various intellectual property disputes. In each case, we have denied the allegations and are mounting a vigorous defense. We have accrued an amount for potential damages that we deem probable and reasonably estimable. We do not expect that any potential damages, if ultimately incurred, will be material. On April 14, 2024, we detected that a third party had gained unauthorized access to portions of our information technology environment. Upon detection, we initiated our established cyber incident response protocols and took measures to contain the incident. The containment measures, which included shutting down certain of the Company’s systems, resulted in an operational disruption that could be considered material. Based on our investigation, we have determined that the third party was likely a cybercrime group, which gained access to, among other information, personally identifiable information. We believe we have contained the incident and have restored our core information technology environment and normal business operations. While we do not believe the incident is reasonably likely to materially impact our financial condition or results of operations, we continue to investigate the incident, have engaged cybersecurity experts, and have notified law enforcement authorities. 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, 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 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, requirements and obligations. The FCC currently classifies fixed consumer broadband services as information services, subject to light-touch regulation. On April 25, 2024, the FCC approved an order that would reclassify certain retail broadband internet access services as lightly regulated telecommunications services imposing certain network neutrality requirements on the reclassified internet services. Frontier anticipates that the rules will be appealed in court. The reclassification rules would largely take effect 60 days after publication in the Federal Register unless enjoined by the courts. Final adoption of these rules could increase our regulatory and compliance obligations and associated costs. 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 provided qualified customers up to $ 30 dollars per month (or $ 75 dollars per month for those on Tribal lands) to assist with their internet bill. Funding for the ACP program will be exhausted in mid-May, 2024 and Frontier ceased participation at the end of the last full month of support - April, 2024. Absent additional funding support, Frontier will no longer provide an ACP benefit to customers. 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. As of March 31, 2024, we had total “Accounts payable and accrued liabilities” of $ 884 million, of which $ 672 million is related to accounts payable. As of December 31, 2023, we had total “Accounts payable and accrued liabilities” of $ 1.1 billion, of which $ 857 million is related to accounts payable. 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 addition, 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 on the statement of cash flows. As of March 31, 2024, we had $ 52 million of vendor financing liabilities included in “Other current liabilities” on our consolidated balance sheets, of which $ 50 million is associated with capital expenditures . For the three months ended March 31, 2024 we made $ 363 million in vendor financing payments related to capital expenditures . 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) | 3 Months Ended |
Mar. 31, 2024 | |
Summary Of Significant Accounting Policies [Abstract] | |
Description Of Business | Description of Business: Frontier Communications Parent, Inc. is a provider of communications services in the United States, with approximately 3.0 million broadband subscribers and approximately 13,200 employees, operating in 25 states. We were incorporated in 1935, originally under the name of Citizens Utilities Company and known as Citizens Communications Company until July 31, 2008. Frontier and its subsidiaries are referred to herein as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. |
Basis Of Presentation And Use Of Estimates | Basis of Presentation and Use of Estimates : 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, 2023. The consolidated financial statements include the accounts of Frontier Communications Parent, Inc., all consolidated subsidiaries and variable interest entities of which the Company is the primary beneficiary. 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 March 31, 2024, 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 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. |
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. |
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 March 31, 2024, the Company had $ 41 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 March 31, 2024, approximately $ 40 million is current restricted cash held for the purpose of paying interest and certain fees. In addition, as of March 31, 2024, we had approximately $ 1 million in noncurrent restricted cash to satisfy a portion of the required liquidity reserve amount, related to the securitization transaction. |
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 March 31, 2024 , short-term investments of $ 225 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between April 25, 2024, and May 2, 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. As of March 31, 2024, this balance was approximately $ 62 million and is included in “Other assets” on our consolidated balance sheets and is restricted. See Note 8 for further details. |
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. The seven-year funding term 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 penalties, 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 potential penalties, if ultimately incurred, 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 penalties, requirements and obligations. We accrue for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated. |
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. |
Definite Lived Intangible Assets | Definite Lived Intangible Assets: Intangible assets are initially recorded at estimated fair value. Customer relationship intangibles were 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. |
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. |
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. |
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. 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) | 3 Months Ended |
Mar. 31, 2024 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements Adopted And Not Yet Adopted | Financial Accounting Standards Not Yet Adopted ASU No. 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2024. ASU No. 2023-07 – Segment Reporting (Topic 280): Improvements to reportable segment disclosures. The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Currently, Topic 280 requires that a public entity disclose certain information about its reportable segments. For example, a public entity is required to report a measure of segment profit or loss that the CODM uses to assess segment performance and make decisions about allocating resources. Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. The amendments in this update do not change or remove those disclosure requirements. The amendments in this update also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | For the three months ended March 31, ($ in millions) 2024 2023 Data and Internet services $ 947 $ 862 Voice services 321 356 Video services 94 117 Other 84 83 Revenue from contracts with customers (1) 1,446 1,418 Subsidy and other revenue 16 22 Total revenue $ 1,462 $ 1,440 For the three months ended March 31, ($ in millions) 2024 2023 Consumer $ 787 $ 761 Business and wholesale 659 657 Revenue from contracts with customers (1) 1,446 1,418 Subsidy and other revenue 16 22 Total revenue $ 1,462 $ 1,440 (1) Includes lease revenue of $ 13 million and $ 15 million for the three months ended March 31, 2024 and 2023, respectively. |
Summary Of Changes In Contract Liabilities | Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2023 $ 33 $ 17 Revenue recognized included in opening contract balance ( 8 ) ( 5 ) Credits granted, excluding amounts recognized as revenue 8 3 Reclassified between current and noncurrent - - Balance at March 31, 2024 $ 33 $ 15 Contract Liabilities ($ in millions) Current Noncurrent Balance at December 31, 2022 $ 27 $ 17 Revenue recognized included in opening contract balance ( 9 ) ( 3 ) Credits granted, excluding amounts recognized as revenue 10 5 Reclassified between current and noncurrent 2 ( 2 ) Balance at March 31, 2023 $ 30 $ 17 |
Performance Obligations, Revenue | ($ in millions) Revenue from contracts with customers 2024 (remaining nine months) $ 437 2025 202 2026 104 2027 21 2028 11 Thereafter 5 Total $ 780 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | ($ in millions) March 31, 2024 December 31, 2023 Retail and Wholesale $ 448 $ 438 Other 63 61 Less: Allowance for doubtful accounts ( 64 ) ( 53 ) Accounts receivable, net $ 447 $ 446 |
Activity In The Allowance For Credit Losses | ($ in millions) Balance at December 31, 2023 $ 53 Provision for bad debt 9 Amounts charged to revenue 12 Write offs charged against the allowance ( 10 ) Balance at March 31, 2024 $ 64 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | ($ in millions) March 31, 2024 December 31, 2023 Property, plant and equipment $ 16,986 $ 16,324 Less: Accumulated depreciation ( 2,690 ) ( 2,391 ) Property, plant and equipment, net $ 14,296 $ 13,933 |
Schedule Of Depreciation Expense | For the three months ended March 31, ($ in millions) 2024 2023 Depreciation expense $ 308 $ 250 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Intangibles [Abstract] | |
Schedule Of Intangible Assets | March 31, 2024 December 31, 2023 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount Amount Amortization Amount Intangibles: Customer Relationships - Business $ 800 $ ( 212 ) $ 588 $ 800 $ ( 194 ) $ 606 Customer Relationships - Wholesale 3,491 ( 637 ) 2,854 3,491 ( 582 ) 2,909 Trademarks & Tradenames 150 ( 87 ) 63 150 ( 80 ) 70 Total other intangibles $ 4,441 $ ( 936 ) $ 3,505 $ 4,441 $ ( 856 ) $ 3,585 |
Schedule Of Amortization Expense | For the three months ended March 31, ($ in millions) 2024 2023 Amortization expense $ 80 $ 80 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Long-Term Debt | March 31, 2024 December 31, 2023 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Total debt $ 11,227 $ 10,733 $ 11,231 $ 10,712 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | For the three months ended March 31, 2024 Principal January 1, Payments New March 31, ($ in millions) 2024 and Retirements Borrowings 2024 Secured debt issued by Frontier $ 8,848 $ ( 4 ) $ - $ 8,844 Secured debt issued by subsidiaries 1,633 - - 1,633 Unsecured debt issued by subsidiaries 750 - - 750 Principal outstanding $ 11,231 $ ( 4 ) $ - $ 11,227 Less: Debt issuance costs ( 71 ) ( 68 ) Less: Current portion ( 15 ) ( 15 ) Less: Debt premium / (discount) ( 64 ) ( 52 ) Plus: Unamortized fair value adjustments (1) 165 148 Total Long-term debt $ 11,246 $ 11,240 (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 | March 31, 2024 December 31, 2023 Principal Interest Principal Interest ($ in millions) Outstanding Rate Outstanding Rate Secured debt issued by Frontier Term loan due 10/8/2027 $ 1,431 9.195% (Variable ) $ 1,435 9.220% (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 % 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 8,844 8,848 Secured debt issued by subsidiaries Debentures due 11/15/2031 (2) 47 8.500 % 47 8.500 % Series 2023-1 Revenue Term Notes Class A-2 due 7/20/2028 1,119 6.600 % 1,119 6.600 % Series 2023-1 Revenue Term Notes Class B due 7/20/2028 155 8.300 % 155 8.300 % Series 2023-1 Revenue Term Notes Class C due 7/20/2028 312 11.500 % 312 11.500 % Total secured debt issued by subsidiaries 1,633 1,633 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 $ 11,227 7.099% (1) $ 11,231 7.103% (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. (2) Interest and principal on $ 47 million in remaining debt of our subsidiary Frontier Southwest Incorporated which was defeased in 2023 in connection with the closing of the securitization transaction. |
Restructuring And Other Charg_2
Restructuring And Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring And Other Charges [Abstract] | |
Changes In Restructuring Reserve | ($ in millions) Balance at January 1, 2024 $ 10 Severance expense 12 Other costs 22 Cash payments during the period ( 30 ) Balance at March 31, 2024 $ 14 |
Investment And Other Income, _2
Investment And Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investment And Other Income, Net [Abstract] | |
Components Of Investment And Other Income (Loss) | The components of investment and other income, net are as follows: For the three months ended March 31, ($ in millions) 2024 2023 Interest and dividend income $ 18 $ 21 Pension benefit 12 4 OPEB costs ( 1 ) ( 3 ) OPEB remeasurement gain (loss) 9 ( 20 ) Pension remeasurement gain 74 - Total investment and other income, net $ 112 $ 2 As a result of special termination benefit enhancements related to a voluntary separation plan, Frontier remeasured its pension plan and postretirement benefit plan obligations, resulting in remeasurement gains of $ 74 million and $ 9 million, respectively, for the three months ended March 31, 2024. |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2,468 $ 24.37 $ 63 Restricted stock units granted 1,266 $ 23.29 $ 31 Restricted stock units vested ( 626 ) $ 26.51 $ ( 15 ) Restricted stock units forfeited ( 16 ) $ 24.06 Balance at March 31, 2024 3,092 $ 24.65 $ 76 |
Target Performance Shares | Weighted Average Number of Award Date Shares Fair Value (in thousands) (per share) (1) Balance at January 1, 2024 4,487 $ 25.33 Target performance shares awarded, net 1,769 $ 24.35 Target performance shares vested ( 3,898 ) $ 25.62 Target performance shares forfeited ( 2 ) $ 26.61 Balance at March 31, 2024 2,356 $ 25.21 (1) Represents the weighted average of the closing price of our stock on the date of the awards. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes [Abstract] | |
Reconciliation Of Provision For Income Taxes | For the three months ended March 31, 2024 2023 Consolidated tax provision at federal statutory rate 21.0 % 21.0 % State income tax provisions, net of federal income tax benefit 12.0 12.5 Federal tax refund true-up 33.2 - Tax reserve adjustment ( 0.4 ) ( 1.9 ) Tax Credit 0.7 3.9 Sec.162(m) - nondeductible Executive Compensation ( 2.7 ) ( 11.4 ) All other, net ( 0.1 ) ( 3.4 ) Effective tax rate 63.7 % 20.7 % |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Net Earnings Per Share [Abstract] | |
Reconciliation Of Net (Loss) Income Per Share | For the three months ended March 31, ( $ in millions and shares in thousands, except per share amounts ) 2024 2023 Net income used for basic and diluted earnings per share: Total basic net income attributable to Frontier common shareholders $ 1 $ 3 Effect of loss related to dilutive stock units - - Total diluted net income attributable to Frontier common shareholders $ 1 $ 3 Basic earnings per share: Total weighted average shares and unvested restricted stock awards outstanding - basic 246,301 245,081 Less: Weighted average unvested restricted stock awards - - Total weighted average shares outstanding - basic 246,301 245,081 Basic net earnings per share attributable to Frontier common shareholders $ 0.00 $ 0.01 Diluted earnings per share: Total weighted average shares outstanding - basic 246,301 245,081 Effect of dilutive performance stock awards 72 769 Effect of dilutive restricted stock awards 667 575 Total weighted average shares outstanding - diluted 247,040 246,425 Diluted net earnings per share attributable to Frontier common shareholders $ 0.00 $ 0.01 In calculating diluted net income per common share for the three months ended March 31, 2024 and 2023, the effect of certain outstanding PSUs is included in the computation as their respective performance metrics have been satisfied as of March 31, 2024 and 2023, respectively. |
Comprehensive (Loss) Income (Ta
Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income, Net Of Tax | OPEB ($ in millions) Costs Balance at January 1, 2024 (1) $ 96 Other comprehensive income before reclassifications - Amounts reclassified from accumulated other comprehensive loss to net loss ( 5 ) Net current-period other comprehensive loss ( 5 ) Balance at March 31, 2024 (1) $ 91 OPEB ($ in millions) Costs Balance at January 1, 2023 (1) $ 79 Other comprehensive income before reclassifications 8 Amounts reclassified from accumulated other comprehensive loss to net income ( 4 ) Net current-period other comprehensive income 4 Balance at March 31, 2023 (1) $ 83 (1) OPEB amounts are net of deferred tax balances of $ 29 million and $ 23 million as of January 1, 2024 and 2023, respectively, and $ 27 million and $ 25 million as of March 31, 2024 and 2023, respectively. |
Reclassification Out Of AOCI | Amount Reclassified from Accumulated Other Comprehensive Income (1) ($ in millions) Affected Line Item in For the three months ended the Statement Where Details about Accumulated Other March 31, Net Income (Loss) Comprehensive Loss Components 2024 2023 is Presented Amortization of OPEB Cost Items Prior-service credits (costs) $ 6 $ 5 Income (loss) before income taxes Tax impact ( 1 ) ( 1 ) Income tax benefit $ 5 $ 4 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) | 3 Months Ended |
Mar. 31, 2024 | |
Pension [Member] | |
Net Periodic Benefit Cost | Pension Benefits For the three months ended March 31, ($ in millions) 2024 2023 Components of total pension benefit cost Service cost $ 12 $ 13 Interest cost on projected benefit obligation 30 33 Expected return on plan assets ( 42 ) ( 37 ) Pension remeasurement (gain) ( 74 ) - Net periodic pension (benefit) costs ( 74 ) 9 Pension special termination benefit enhancements 6 - Total pension (benefit) cost $ ( 68 ) $ 9 |
OPEB [Member] | |
Net Periodic Benefit Cost | Postretirement For the three months ended March 31, ($ in millions) 2024 2023 Components of net periodic postretirement benefit cost Service cost $ 1 $ 2 Interest cost on projected benefit obligation 7 8 Amortization of prior service credit gain recognized ( 6 ) ( 5 ) OPEB remeasurement (gain) loss ( 9 ) 20 Net periodic postretirement (benefit) cost ( 7 ) 25 OPEB special termination benefit enhancements 1 - Total periodic postretirement (benefit) cost $ ( 6 ) $ 25 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) employee segment state item | Dec. 31, 2023 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of subscribers | item | 3,000,000 | |
Number of states of operation | state | 25 | |
Annual support accepted for commitment for RDOF | $ 37 | |
Number of employees | employee | 13,200 | |
Number of reportable segments | segment | 1 | |
Letter of credit issued, amount included in other assets | $ 62 | |
Restricted cash | 41 | |
Short-term Investments | $ 225 | $ 1,075 |
Revenue recognition period, FCC's CAF Phase II subsidies | 7 years | |
Provided funding period, for construction of broadband networks | 10 years | |
Remaining outstanding principal | $ 11,227 | $ 11,231 |
Number of stock plans | item | 1 | |
Securitization Trust Accounts [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Restricted cash, current | $ 40 | |
Restricted cash, noncurrent | 1 | |
US Treasuries In Trust Account [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Restricted cash | 63 | |
Debt On Frontier Southwest Properties [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Remaining outstanding principal | $ 47 | |
Business And Wholesale [Member] | Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life | 11 years | |
Business And Wholesale [Member] | Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life | 16 years | |
Trademarks and Tradenames [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life | 5 years |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1,446 | $ 1,418 |
Subsidy and other revenue | 16 | 22 |
Total revenue | 1,462 | 1,440 |
Revenue from contracts with customers, performance obligation | 780 | |
Lease revenue | 13 | 15 |
Data And Internet Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 947 | 862 |
Voice Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 321 | 356 |
Video Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 94 | 117 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 84 | 83 |
Consumer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 787 | 761 |
Business And Wholesale [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 659 | $ 657 |
Revenue Recognition (Summary Of
Revenue Recognition (Summary Of Changes In Contract Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition [Abstract] | ||
Contract current liabilities, Beginning balance | $ 33 | $ 27 |
Contract current liabilities, Revenue recognized included in opening contract balance | (8) | (9) |
Contract current liabilities, Credits granted, excluding amounts recognized as revenue | 8 | 10 |
Contract current liabilities, Reclassified between current and noncurrent | 2 | |
Contract current liabilities, Ending balance | 33 | 30 |
Contract noncurrent liabilities, Beginning balance | 17 | 17 |
Contract noncurrent liabilities, Revenue recognized included in opening contract balance | (5) | (3) |
Contract noncurrent liabilities, Credits granted, excluding amounts recognized as revenue | 3 | 5 |
Contract noncurrent liabilities, Reclassified between current and noncurrent | (2) | |
Contract noncurrent liabilities, Ending balance | $ 15 | $ 17 |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 780 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 437 |
Performance obligation satisfaction period | 9 months |
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 | $ 202 |
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 | $ 104 |
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 | $ 21 |
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 | $ 11 |
Performance obligation satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue from remaining performance obligations | $ 5 |
Performance obligation satisfaction period | 1 year |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounts Receivable [Abstract] | |||
Bad debt expense | $ 9 | $ 7 | |
Credits related to customers | $ 154 | $ 143 |
Accounts Receivable (Accounts R
Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less: Allowance for doubtful accounts | $ (64) | $ (53) |
Accounts receivable, net | 447 | 446 |
Retail And Wholesale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 448 | 438 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 63 | $ 61 |
Accounts Receivable (Activity I
Accounts Receivable (Activity In The Allowance For Credit Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable [Abstract] | ||
Allowance for credit losses, Beginning Balance | $ 53 | |
Provision for bad debt | 9 | $ 7 |
Amounts charged to revenue | 12 | |
Write offs charged against the allowance | (10) | |
Allowance for credit losses, Ending Balance | $ 64 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 16,986 | $ 16,324 | |
Capital expenditures | 666 | $ 1,154 | |
Capital expenditures incurred but not yet paid | 156 | ||
Vendor financing payments | 363 | 205 | |
Accounts payable associated with capital | 500 | ||
Vendor financing payables associated with capital expenditures | 50 | ||
Capitalized interest | 12 | ||
Materials And Supplies [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 549 | $ 594 |
Property, Plant And Equipment_3
Property, Plant And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 16,986 | $ 16,324 |
Less: Accumulated depreciation | (2,690) | (2,391) |
Property, plant and equipment, net | 14,296 | 13,933 |
Materials And Supplies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 549 | $ 594 |
Property, Plant And Equipment_4
Property, Plant And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Depreciation [Abstract] | ||
Depreciation expense | $ 308 | $ 250 |
Intangibles (Narrative) (Detail
Intangibles (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,441 | $ 4,441 |
Accumulated Amortization | (936) | (856) |
Net Carrying Amount | 3,505 | 3,585 |
Customer Relationships - Business [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 800 | 800 |
Accumulated Amortization | (212) | (194) |
Net Carrying Amount | 588 | 606 |
Customer Relationships - Wholesale [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,491 | 3,491 |
Accumulated Amortization | (637) | (582) |
Net Carrying Amount | 2,854 | 2,909 |
Trademarks and Tradenames [Member] | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 150 | 150 |
Accumulated Amortization | (87) | (80) |
Net Carrying Amount | $ 63 | $ 70 |
Intangibles (Schedule Of Amorti
Intangibles (Schedule Of Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Intangibles [Abstract] | ||
Amortization expense | $ 80 | $ 80 |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 11,227 | $ 11,231 |
Fair Value [Member] | ||
Long-term debt [Abstract] | ||
Total debt | $ 10,733 | $ 10,712 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal outstanding | $ 11,227 | $ 11,231 |
Remaining outstanding principal | 11,227 | $ 11,231 |
Revolving Facility [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | 336 | |
Available borrowing capacity | $ 564 |
Long-Term Debt (Long-Term Debt)
Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | $ 11,231 | |
Principal Payments and Retirements | (4) | |
Principal debt outstanding, ending | 11,227 | |
Less: Debt issuance costs | (68) | $ (71) |
Less: Current portion | (15) | (15) |
Less: Debt premium / (discount) | (52) | (64) |
Plus: Unamortized fair value adjustments | 148 | 165 |
Long-term debt | 11,240 | $ 11,246 |
Long-term debt, fair value adjustment | 236 | |
Secured Debt Issued By Frontier [Member] | ||
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | 8,848 | |
Principal Payments and Retirements | (4) | |
Principal debt outstanding, ending | 8,844 | |
Secured Debt Issued By Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Principal debt outstanding, beginning | 1,633 | |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal outstanding | $ 11,227 | $ 11,231 |
Debentures Due 11/15/2031 [Member] | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 47 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 8,844 | 8,848 |
Secured Debt [Member] | Term Loan Due 10/8/2027 [Member] | ||
Debt Instrument [Line Items] | ||
Principal outstanding | $ 1,431 | $ 1,435 |
Interest rate | 9.195% | 9.22% |
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 | $ 750 |
Interest rate | 8.625% | 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 | $ 1,633 | $ 1,633 |
Secured Subsidiary Debt [Member] | Debentures Due 11/15/2031 [Member] | ||
Debt Instrument [Line Items] | ||
Principal outstanding | $ 47 | $ 47 |
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 | $ 1,119 | $ 1,119 |
Interest rate | 6.60% | 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 | $ 155 |
Interest rate | 8.30% | 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 | $ 312 |
Interest rate | 11.50% | 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% |
Restructuring And Other Charg_3
Restructuring And Other Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs and other charges | $ 34 | $ 8 |
Pension/OPEB Special Termination Benefit Enhancements [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs and other charges | 7 | |
Severance And Employee Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs and other charges | 12 | 10 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs and other charges | $ 15 | $ 2 |
Restructuring And Other Charg_4
Restructuring And Other Charges (Changes In Restructuring Reserve) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring And Other Charges [Abstract] | |
Restructuring Reserve, Beginning Balance | $ 10 |
Severance expense | 12 |
Other costs | 22 |
Pension / OPEB special termination benefit enhancements | 7 |
Cash payments during the period | (30) |
Restructuring Reserve, Ending Balance | $ 14 |
Investment And Other Income, _3
Investment And Other Income, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investment And Other Income, Net [Abstract] | ||
OPEB remeasurement gain (loss) | $ 9 | $ (20) |
Pension remeasurement gain | $ 74 |
Investment And Other Income, _4
Investment And Other Income, Net (Components Of Investment And Other Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investment And Other Income, Net [Abstract] | ||
Interest and dividend income | $ 18 | $ 21 |
Pension benefit | 12 | 4 |
OPEB costs | (1) | (3) |
OPEB remeasurement gain (loss) | 9 | (20) |
Pension remeasurement gain | 74 | |
Total investment and other income, net | $ 112 | $ 2 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 01, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | |
Emergence LTI Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant under the plan (in shares) | 1,134,000 | ||||
2021 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for grant under the plans (in shares) | 15,600,000 | ||||
PSUs 2021 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance metric percent | 126% | ||||
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 | $ 57 | ||||
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years) | 1 year | ||||
Cash compensation | $ 10 | $ 8 | |||
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 | ||||
Percent of recognized expense from performance metrics | 33% | ||||
Compensation expense | $ 16 | ||||
Minimum [Member] | Performance Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payout range, percent of target units | 0% | ||||
Maximum [Member] | Performance Stock [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] - Restricted Stock [Member] $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 2,468 |
Restricted stock granted (in shares) | shares | 1,266 |
Restricted stock vested (in shares) | shares | (626) |
Restricted stock forfeited (in shares) | shares | (16) |
Balance at end of period (in shares) | shares | 3,092 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 24.37 |
Restricted stock granted (in dollars per shares) | $ / shares | 23.29 |
Restricted stock vested (in dollars per shares) | $ / shares | 26.51 |
Restricted stock forfeited (in dollars per shares) | $ / shares | 24.06 |
Balance at end of period (in dollars per shares) | $ / shares | $ 24.65 |
Balance at beginning of period | $ | $ 63 |
Restricted stock granted | $ | 31 |
Restricted stock vested | $ | (15) |
Restricted stock forfeited | $ | |
Balance at end of period | $ | $ 76 |
Stock Plans (Target Performance
Stock Plans (Target Performance Shares) (Details) - 2021 Incentive Plan [Member] - Performance Stock [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | shares | 4,487 |
Target performance shares awarded, net (in shares) | shares | 1,769 |
Target performance shares vested (in shares) | shares | (3,898) |
Target performance shares forfeited (in shares) | shares | (2) |
Balance at end of period (in shares) | shares | 2,356 |
Balance at beginning of period (in dollars per shares) | $ / shares | $ 25.33 |
Target performance shares awarded, net (in dollars per shares) | $ / shares | 24.35 |
Target performance shares vested (in dollars per shares) | $ / shares | 25.62 |
Target performance shares forfeited (in dollars per shares) | $ / shares | 26.61 |
Balance at end of period (in dollars per shares) | $ / shares | $ 25.21 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Income Taxes [Abstract] | |
Valuation allowance | $ 303 |
Valuation allowance, net of federal benefit | $ 240 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Provision For Income Taxes) (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes [Abstract] | ||
Consolidated tax provision at federal statutory rate | 21% | 21% |
State income tax provisions, net of federal income tax benefit | 12% | 12.50% |
Federal tax refund true-up | 33.20% | |
Tax reserve adjustment | (0.40%) | (1.90%) |
Tax Credit | 0.70% | 3.90% |
Sec.162(m) - nondeductible Executive Compensation | (2.70%) | (11.40%) |
All other, net | (0.10%) | (3.40%) |
Effective tax rate | 63.70% | 20.70% |
Net Earnings Per Share (Reconci
Net Earnings Per Share (Reconciliation Of Net (Loss) Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total basic net income attributable to Frontier common shareholders | $ 1 | $ 3 |
Total diluted net income attributable to Frontier common shareholders | $ 1 | $ 3 |
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares) | 246,301 | 245,081 |
Total weighted average shares outstanding - basic | 246,301 | 245,081 |
Basic net earnings per share attributable to Frontier common shareholders | $ 0 | $ 0.01 |
Total weighted average shares outstanding - basic | 246,301 | 245,081 |
Total weighted average shares outstanding - diluted | 247,040 | 246,425 |
Diluted net earnings per share attributable to Frontier common shareholders | $ 0 | $ 0.01 |
Performance Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Effect of dilutive awards (in shares) | 72 | 769 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Effect of dilutive awards (in shares) | 667 | 575 |
Comprehensive (Loss) Income (Ac
Comprehensive (Loss) Income (Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning | $ 5,279 | $ 5,134 | ||
Net current-period other comprehensive income (loss) | (5) | 4 | ||
Balance at ending | 5,259 | 5,163 | ||
Pension And OPEB [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Deferred tax items | 27 | 25 | $ 29 | $ 23 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning | 96 | 79 | ||
Net current-period other comprehensive income (loss) | (5) | 4 | ||
Balance at ending | 91 | 83 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | OPEB [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning | 96 | 79 | ||
Other comprehensive income before reclassifications | 8 | |||
Amounts reclassified from accumulated other comprehensive loss to net (loss) income | (5) | (4) | ||
Net current-period other comprehensive income (loss) | (5) | 4 | ||
Balance at ending | $ 91 | $ 83 |
Comprehensive (Loss) Income (Re
Comprehensive (Loss) 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications of actuarial losses, pretax | $ 6 | $ 5 |
Tax impact | (1) | (1) |
Reclassifications, net of tax | $ 5 | $ 4 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Capitalization of pension and OPEB expense | $ 4 | $ 4 | |
Pension remeasurement gain | 74 | ||
OPEB Remeasurement | 9 | (20) | |
Pension [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions to plans | 57 | ||
Pension remeasurement gain | 74 | ||
Increase in plan assets | 93 | ||
Plan assets | 2,361 | $ 2,268 | |
Investment returns | 79 | ||
Benefit payments | 43 | ||
Pension special termination benefit enhancements | 6 | ||
OPEB [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Remeasurement (gains) loss | (20) | ||
OPEB Remeasurement | 9 | $ (20) | |
Pension special termination benefit enhancements | $ 1 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
OPEB remeasurement (gain) loss | $ (9) | $ 20 |
Pension remeasurement (gain) | (74) | |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 12 | 13 |
Interest cost on projected benefit obligation | 30 | 33 |
Expected return on plan assets | (42) | (37) |
Pension remeasurement (gain) | (74) | |
Net periodic cost | (74) | 9 |
Pension special termination benefit enhancements | 6 | |
Total pension benefit cost (income) | (68) | 9 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 2 |
Interest cost on projected benefit obligation | 7 | 8 |
Amortization of prior service credit gain recognized | (6) | (5) |
OPEB remeasurement (gain) loss | (9) | 20 |
Remeasurement (gain) loss | 20 | |
Net periodic cost | (7) | 25 |
Pension special termination benefit enhancements | 1 | |
Total pension benefit cost (income) | $ (6) | $ 25 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 USD ($) state item | Mar. 31, 2024 USD ($) item | Dec. 31, 2023 USD ($) | Dec. 31, 2015 USD ($) | |
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 | |||
Accounts payable and accrued liabilities | $ 884 | $ 1,103 | ||
Accounts payable | 672 | 857 | ||
Vendor financing liabilities included in other current liabilities | 52 | |||
Vendor financing payments | 363 | $ 205 | ||
Capital expenditure associated with vendor financing payments | $ 50 | |||
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 |