Document - Cover
Document - Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 27, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Registrant Name | Windstream Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-32422 | |
Entity Tax Identification Number | 46-2847717 | |
Entity Address, Address Line One | 4001 Rodney Parham Road | |
Entity Address, City or Town | Little Rock, | |
Entity Address, State or Province | AR | |
Entity Address, Postal Zip Code | 72212 | |
City Area Code | (501) | |
Local Phone Number | 748-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,016,811 | |
Entity Central Index Key | 0001282266 | |
Current Fiscal Year End Date | --12-31 | |
Windstream Services, LLC | ||
Document Information [Line Items] | ||
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Registrant Name | Windstream Services, LLC | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-36093 | |
Entity Tax Identification Number | 20-0792300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001585644 | |
Current Fiscal Year End Date | --12-31 |
WINDSTREAM HOLDINGS, INC. CONSO
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues and sales: | ||||||
Revenues and sales: | $ 1,185.3 | $ 1,286.5 | $ 2,386.2 | $ 2,607.1 | ||
Costs and expenses: | ||||||
Selling, general and administrative | 161.5 | 185.9 | 338 | 384.2 | ||
Depreciation and amortization | 219.9 | 276 | 452.5 | 547.5 | ||
Goodwill impairment | 0 | 373.3 | 0 | 2,712.3 | ||
Restructuring and other charges | 5.6 | 6.9 | 12 | 22 | ||
Total costs and expenses | 1,160.5 | 1,709.4 | 2,347.3 | 5,411.3 | ||
Operating income (loss) | 24.8 | (422.9) | 38.9 | (2,804.2) | ||
Other income (expense), net | 1.7 | (9.2) | 7.4 | (10.2) | ||
Reorganization items, net | (114.4) | (85.4) | (154.9) | (190.3) | ||
Interest expense (contractual interest of $117.1, $240.7, $130.3 and $236.5 for the three and six months ended June 30, 2020 and 2019, respectively) | (66) | (80.8) | (139.1) | (172.7) | ||
Loss before income taxes | (153.9) | (598.3) | (247.7) | (3,177.4) | ||
Income tax (expense) benefit | (8.5) | 54.2 | (16.3) | 323 | ||
Net loss | $ (162.4) | $ (101.6) | $ (544.1) | $ (2,310.3) | $ (264) | $ (2,854.4) |
Basic and diluted loss per share: | ||||||
Net loss | $ (3.80) | $ (12.76) | $ (6.18) | $ (66.98) | ||
Service revenues | ||||||
Revenues and sales: | ||||||
Revenues and sales: | $ 1,164.6 | $ 1,270.2 | $ 2,343.5 | $ 2,572.4 | ||
Costs and expenses: | ||||||
Cost of services and products sold | 751.8 | 852.1 | 1,501.6 | 1,713.2 | ||
Product and fiber sales | ||||||
Revenues and sales: | ||||||
Revenues and sales: | 20.7 | 16.3 | 42.7 | 34.7 | ||
Costs and expenses: | ||||||
Cost of services and products sold | $ 21.7 | $ 15.2 | $ 43.2 | $ 32.1 |
WINDSTREAM HOLDINGS, INC. CON_2
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 117.1 | $ 130.3 | $ 240.6 | $ 236.5 |
WINDSTREAM HOLDINGS, INC. CON_3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net loss | $ (162.4) | $ (101.6) | $ (544.1) | $ (2,310.3) | $ (264) | $ (2,854.4) |
Interest rate swaps: | ||||||
Unrealized losses on designated interest rate swaps | 0 | 0 | 0 | (3.2) | ||
Amortization of net unrealized gains on de-designated interest rate swaps | (3.3) | (3) | (6.6) | (4.2) | ||
Income tax benefit | 0.8 | 0.8 | 1.7 | 1.9 | ||
Change in interest rate swaps | (2.5) | (2.2) | (4.9) | (5.5) | ||
Pension and postretirement plans: | ||||||
Change in net actuarial loss for employee benefit plans | (1) | (0.2) | (1) | (0.2) | ||
Amounts included in net periodic benefit cost: | ||||||
Amortization of net actuarial loss | 0.1 | 0 | 0.1 | 0 | ||
Amortization of prior service credits | (0.3) | (0.3) | (0.6) | (0.7) | ||
Income tax benefit | 0.3 | 0.1 | 0.3 | 0.2 | ||
Change in pension and postretirement plans | (0.9) | (0.3) | (0.4) | (0.3) | (1.2) | (0.7) |
Other comprehensive loss | (3.4) | (2.6) | (6.1) | (6.2) | ||
Comprehensive loss | $ (165.8) | $ (104.3) | $ (546.7) | $ (2,313.9) | $ (270.1) | $ (2,860.6) |
WINDSTREAM HOLDINGS, INC. CON_4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 210 | $ 191.8 |
Restricted cash | 7.8 | 7.8 |
Accounts receivable (net of allowance of $47.7 and $48.2, respectively) | 527.8 | 574.7 |
Inventories | 73.7 | 64.7 |
Prepaid expenses and other | 233.5 | 197.7 |
Total current assets | 1,052.8 | 1,036.7 |
Goodwill | 61.4 | 61.4 |
Other intangibles, net | 1,013.6 | 1,068.7 |
Net property, plant and equipment | 3,713.7 | 3,620.8 |
Operating lease right-of-use assets | 3,909.1 | 4,018 |
Other assets | 81.1 | 82.9 |
Total Assets | 9,831.7 | 9,888.5 |
Current Liabilities: | ||
Current portion of long-term debt | 900 | 500 |
Accounts payable | 327.6 | 279.2 |
Advance payments | 148.7 | 151.1 |
Accrued taxes | 61.2 | 65.6 |
Other current liabilities | 214.7 | 223.3 |
Total current liabilities | 1,652.2 | 1,219.2 |
Other liabilities | 24.7 | 23.6 |
Liabilities subject to compromise | 10,500 | 10,720.1 |
Total liabilities | 12,176.9 | 11,962.9 |
Commitments and Contingencies (See Note 12) | ||
Shareholders’ Deficit: | ||
Common stock, $0.0001 par value, 75.0 shares authorized, 43.0 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,254.2 | 1,253.1 |
Accumulated other comprehensive income | 16.5 | 22.6 |
Accumulated deficit | (3,615.9) | (3,350.1) |
Total shareholders’ deficit | (2,345.2) | (2,074.4) |
Total Liabilities and Shareholders’ Deficit | $ 9,831.7 | $ 9,888.5 |
WINDSTREAM HOLDINGS, INC. CON_5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Accounts receivable, net of allowance | $ 47.7 | $ 48.2 |
Shareholders’ Deficit: | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75 | 75 |
Common stock, shares issued | 43 | 43 |
Common stock, shares outstanding | 43 | 43 |
WINDSTREAM HOLDINGS, INC. CON_6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (264) | $ (2,854.4) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 452.5 | 547.5 |
Allowance for credit losses | 12.8 | 42.8 |
Share-based compensation expense | 1 | 0.3 |
Non-cash reorganization items, net | (8.4) | 55.9 |
Deferred income taxes | 21.7 | (322.2) |
Goodwill impairment | 0 | 2,712.3 |
DIP Facilities issuance costs expensed | 0 | 23.4 |
Other, net | (12.4) | 14.4 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | 35 | (22.8) |
Prepaid expenses and other | (31.3) | (82.3) |
Accounts payable | (46.5) | 197.2 |
Accrued interest | (0.2) | (10) |
Accrued taxes | (2.7) | (8.1) |
Other current liabilities | (28) | (8.4) |
Other liabilities | (0.2) | 8.9 |
Other, net | (7.6) | (0.6) |
Net cash provided from operating activities | 121.7 | 293.9 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (480.1) | (407.4) |
Purchase of FCC spectrum licenses | (13.8) | (10.3) |
Other, net | 2.3 | 2 |
Net cash used in investing activities | (491.6) | (415.7) |
Cash Flows from Financing Activities: | ||
Repayments of debt and swaps | 0 | (372.4) |
Proceeds from debt issuance | 400 | 655 |
Debt issuance costs | 0 | (23.4) |
Payments under finance lease obligations | (11.6) | (27.2) |
Other, net | (0.3) | (0.7) |
Net cash provided from financing activities | 388.1 | 231.3 |
Increase in cash, cash equivalents and restricted cash | 18.2 | 109.5 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 199.6 | 361 |
End of period | 217.8 | 470.5 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 146.3 | 184.6 |
Income taxes paid, net | 1 | 0 |
Reorganization items paid | $ 82.4 | $ 76.2 |
WINDSTREAM HOLDINGS, INC. CON_7
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Additional Paid-In Capital | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Accumulated Other Comprehensive Income | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Deficit |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Adoption of ASU 2016-02 | $ 3,013 | $ 0 | $ 0 | $ 3,013 | ||||||||
Beginning balance at Dec. 31, 2018 | $ (1,919.3) | $ 1,250.4 | $ 35.6 | $ (3,205.3) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (2,310.3) | 0 | 0 | (2,310.3) | ||||||||
Other comprehensive loss, net of tax: | ||||||||||||
Change in pension and postretirement plans | (0.3) | 0 | (0.3) | 0 | ||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (0.9) | 0 | (0.9) | 0 | ||||||||
Changes in designated interest rate swaps | (2.4) | 0 | (2.4) | 0 | ||||||||
Comprehensive loss | (2,313.9) | 0 | (3.6) | (2,310.3) | ||||||||
Share-based compensation | 2.4 | 2.4 | 0 | 0 | ||||||||
Taxes withheld on vested restricted stock and other | 0.4 | 0.4 | 0 | 0 | ||||||||
Ending balance at Mar. 31, 2019 | (1,218.2) | 1,252.4 | 32 | (2,502.6) | ||||||||
Beginning balance at Dec. 31, 2018 | (1,919.3) | 1,250.4 | 35.6 | (3,205.3) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (2,854.4) | |||||||||||
Other comprehensive loss, net of tax: | ||||||||||||
Change in pension and postretirement plans | (0.7) | |||||||||||
Comprehensive loss | (2,860.6) | |||||||||||
Ending balance at Jun. 30, 2019 | (1,766.4) | 1,250.9 | 29.4 | (3,046.7) | ||||||||
Beginning balance at Mar. 31, 2019 | (1,218.2) | 1,252.4 | 32 | (2,502.6) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (544.1) | 0 | 0 | (544.1) | ||||||||
Other comprehensive loss, net of tax: | ||||||||||||
Change in pension and postretirement plans | (0.4) | 0 | (0.4) | 0 | ||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (2.2) | 0 | (2.2) | 0 | ||||||||
Comprehensive loss | (546.7) | 0 | (2.6) | (544.1) | ||||||||
Share-based compensation | (1.6) | (1.6) | 0 | 0 | ||||||||
Taxes withheld on vested restricted stock and other | 0.1 | 0.1 | 0 | 0 | ||||||||
Ending balance at Jun. 30, 2019 | (1,766.4) | 1,250.9 | 29.4 | (3,046.7) | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Adoption of ASU 2016-13 (See Note 1) | $ (1.8) | $ 0 | $ 0 | $ (1.8) | ||||||||
Beginning balance at Dec. 31, 2019 | (2,074.4) | 1,253.1 | 22.6 | (3,350.1) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (101.6) | 0 | 0 | (101.6) | ||||||||
Other comprehensive loss, net of tax: | ||||||||||||
Change in pension and postretirement plans | (0.3) | 0 | (0.3) | 0 | ||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (2.4) | 0 | (2.4) | 0 | ||||||||
Comprehensive loss | (104.3) | 0 | (2.7) | (101.6) | ||||||||
Share-based compensation | 0.6 | 0.6 | 0 | 0 | ||||||||
Taxes withheld on vested restricted stock and other | 0.1 | 0.1 | 0 | 0 | ||||||||
Ending balance at Mar. 31, 2020 | (2,179.8) | 1,253.8 | 19.9 | (3,453.5) | ||||||||
Beginning balance at Dec. 31, 2019 | (2,074.4) | 1,253.1 | 22.6 | (3,350.1) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (264) | |||||||||||
Other comprehensive loss, net of tax: | ||||||||||||
Change in pension and postretirement plans | (1.2) | |||||||||||
Comprehensive loss | (270.1) | |||||||||||
Ending balance at Jun. 30, 2020 | (2,345.2) | 1,254.2 | 16.5 | (3,615.9) | ||||||||
Beginning balance at Mar. 31, 2020 | (2,179.8) | 1,253.8 | 19.9 | (3,453.5) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (162.4) | 0 | 0 | (162.4) | ||||||||
Other comprehensive loss, net of tax: | ||||||||||||
Change in pension and postretirement plans | (0.9) | 0 | (0.9) | 0 | ||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (2.5) | 0 | (2.5) | 0 | ||||||||
Comprehensive loss | (165.8) | 0 | (3.4) | (162.4) | ||||||||
Share-based compensation | 0.4 | 0.4 | 0 | 0 | ||||||||
Ending balance at Jun. 30, 2020 | $ (2,345.2) | $ 1,254.2 | $ 16.5 | $ (3,615.9) |
WINDSTREAM SERVICES, LLC CONSOL
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues and sales: | ||||
Revenues and sales: | $ 1,185.3 | $ 1,286.5 | $ 2,386.2 | $ 2,607.1 |
Costs and expenses: | ||||
Selling, general and administrative | 161.5 | 185.9 | 338 | 384.2 |
Depreciation and amortization | 219.9 | 276 | 452.5 | 547.5 |
Goodwill impairment | 0 | 373.3 | 0 | 2,712.3 |
Restructuring and other charges | 5.6 | 6.9 | 12 | 22 |
Total costs and expenses | 1,160.5 | 1,709.4 | 2,347.3 | 5,411.3 |
Operating income (loss) | 24.8 | (422.9) | 38.9 | (2,804.2) |
Other income (expense), net | 1.7 | (9.2) | 7.4 | (10.2) |
Reorganization items, net | (114.4) | (85.4) | (154.9) | (190.3) |
Interest expense (contractual interest of $117.1, $240.7, $130.3 and $236.5 for the three and six months ended June 30, 2020 and 2019, respectively) | (66) | (80.8) | (139.1) | (172.7) |
Loss before income taxes | (153.9) | (598.3) | (247.7) | (3,177.4) |
Income tax (expense) benefit | (8.5) | 54.2 | (16.3) | 323 |
Net loss | (162.4) | (544.1) | (264) | (2,854.4) |
Service revenues | ||||
Revenues and sales: | ||||
Revenues and sales: | 1,164.6 | 1,270.2 | 2,343.5 | 2,572.4 |
Costs and expenses: | ||||
Cost of services and products sold | 751.8 | 852.1 | 1,501.6 | 1,713.2 |
Product and fiber sales | ||||
Revenues and sales: | ||||
Revenues and sales: | 20.7 | 16.3 | 42.7 | 34.7 |
Costs and expenses: | ||||
Cost of services and products sold | 21.7 | 15.2 | 43.2 | 32.1 |
Windstream Services, LLC | ||||
Revenues and sales: | ||||
Revenues and sales: | 1,185.3 | 1,286.5 | 2,386.2 | 2,607.1 |
Costs and expenses: | ||||
Selling, general and administrative | 161 | 185.4 | 336.8 | 383.3 |
Depreciation and amortization | 219.9 | 276 | 452.5 | 547.5 |
Goodwill impairment | 0 | 373.3 | 0 | 2,712.3 |
Restructuring and other charges | 5.6 | 6.9 | 12 | 22 |
Total costs and expenses | 1,160 | 1,708.9 | 2,346.1 | 5,410.4 |
Operating income (loss) | 25.3 | (422.4) | 40.1 | (2,803.3) |
Other income (expense), net | 1.7 | (9.2) | 7.4 | (10.2) |
Reorganization items, net | (114.4) | (85.4) | (154.9) | (190.3) |
Interest expense (contractual interest of $117.1, $240.7, $130.3 and $236.5 for the three and six months ended June 30, 2020 and 2019, respectively) | (66) | (80.8) | (139.1) | (172.7) |
Loss before income taxes | (153.4) | (597.8) | (246.5) | (3,176.5) |
Income tax (expense) benefit | (8.7) | 54.1 | (16.6) | 322.8 |
Net loss | (162.1) | (543.7) | (263.1) | (2,853.7) |
Windstream Services, LLC | Service revenues | ||||
Revenues and sales: | ||||
Revenues and sales: | 1,164.6 | 1,270.2 | 2,343.5 | 2,572.4 |
Costs and expenses: | ||||
Cost of services and products sold | 751.8 | 852.1 | 1,501.6 | 1,713.2 |
Windstream Services, LLC | Product and fiber sales | ||||
Revenues and sales: | ||||
Revenues and sales: | 20.7 | 16.3 | 42.7 | 34.7 |
Costs and expenses: | ||||
Cost of services and products sold | $ 21.7 | $ 15.2 | $ 43.2 | $ 32.1 |
WINDSTREAM SERVICES, LLC CONS_2
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 117.1 | $ 130.3 | $ 240.6 | $ 236.5 |
Windstream Services, LLC | ||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 117.1 | $ 130.3 | $ 240.6 | $ 236.5 |
WINDSTREAM SERVICES, LLC CONS_3
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net loss | $ (162.4) | $ (544.1) | $ (264) | $ (2,854.4) |
Interest rate swaps: | ||||
Unrealized losses on designated interest rate swaps | 0 | 0 | 0 | (3.2) |
Amortization of net unrealized gains on de-designated interest rate swaps | (3.3) | (3) | (6.6) | (4.2) |
Income tax benefit | 0.8 | 0.8 | 1.7 | 1.9 |
Change in interest rate swaps | (2.5) | (2.2) | (4.9) | (5.5) |
Pension and postretirement plans: | ||||
Change in net actuarial loss for employee benefit plans | (1) | (0.2) | (1) | (0.2) |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0.1 | 0 | 0.1 | 0 |
Amortization of prior service credits | (0.3) | (0.3) | (0.6) | (0.7) |
Income tax benefit | 0.3 | 0.1 | 0.3 | 0.2 |
Change in pension and postretirement plans | (0.9) | (0.4) | (1.2) | (0.7) |
Other comprehensive (loss) income | (3.4) | (2.6) | (6.1) | (6.2) |
Comprehensive loss | (165.8) | (546.7) | (270.1) | (2,860.6) |
Windstream Services, LLC | ||||
Net loss | (162.1) | (543.7) | (263.1) | (2,853.7) |
Interest rate swaps: | ||||
Unrealized losses on designated interest rate swaps | 0 | 0 | 0 | (3.2) |
Amortization of net unrealized gains on de-designated interest rate swaps | (3.3) | (3) | (6.6) | (4.2) |
Income tax benefit | 0.8 | 0.8 | 1.7 | 1.9 |
Change in interest rate swaps | (2.5) | (2.2) | (4.9) | (5.5) |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0.1 | 0 | 0.1 | 0 |
Amortization of prior service credits | (0.3) | (0.3) | (0.6) | (0.7) |
Income tax benefit | 0.3 | 0.1 | 0.3 | 0.2 |
Change in pension and postretirement plans | (0.9) | (0.4) | (1.2) | (0.7) |
Other comprehensive (loss) income | (3.4) | (2.6) | (6.1) | (6.2) |
Comprehensive loss | $ (165.5) | $ (546.3) | $ (269.2) | $ (2,859.9) |
WINDSTREAM SERVICES, LLC CONS_4
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 210 | $ 191.8 |
Restricted cash | 7.8 | 7.8 |
Accounts receivable (net of allowance of $47.7 and $48.2, respectively) | 527.8 | 574.7 |
Inventories | 73.7 | 64.7 |
Prepaid expenses and other | 233.5 | 197.7 |
Total current assets | 1,052.8 | 1,036.7 |
Goodwill | 61.4 | 61.4 |
Net property, plant and equipment | 3,713.7 | 3,620.8 |
Operating lease right-of-use assets | 3,909.1 | 4,018 |
Other assets | 81.1 | 82.9 |
Total Assets | 9,831.7 | 9,888.5 |
Current Liabilities: | ||
Current portion of long-term debt | 900 | 500 |
Accounts payable | 327.6 | 279.2 |
Advance payments | 148.7 | 151.1 |
Accrued taxes | 61.2 | 65.6 |
Other current liabilities | 214.7 | 223.3 |
Total current liabilities | 1,652.2 | 1,219.2 |
Other liabilities | 24.7 | 23.6 |
Liabilities subject to compromise | 10,500 | 10,720.1 |
Total liabilities | 12,176.9 | 11,962.9 |
Commitments and Contingencies (See Note 12) | ||
Member Deficit: | ||
Additional paid-in capital | 1,254.2 | 1,253.1 |
Accumulated other comprehensive income | 16.5 | 22.6 |
Accumulated deficit | (3,615.9) | (3,350.1) |
Total member deficit | (2,345.2) | (2,074.4) |
Total Liabilities and Member Deficit | 9,831.7 | 9,888.5 |
Windstream Services, LLC | ||
Current Assets: | ||
Cash and cash equivalents | 210 | 191.8 |
Restricted cash | 7.8 | 7.8 |
Accounts receivable (net of allowance of $47.7 and $48.2, respectively) | 527.8 | 574.7 |
Inventories | 73.7 | 64.7 |
Prepaid expenses and other | 233.5 | 197.7 |
Total current assets | 1,052.8 | 1,036.7 |
Goodwill | 61.4 | 61.4 |
Other intangibles, net | 1,013.6 | 1,068.7 |
Net property, plant and equipment | 3,713.7 | 3,620.8 |
Operating lease right-of-use assets | 3,909.1 | 4,018 |
Other assets | 81.1 | 82.9 |
Total Assets | 9,831.7 | 9,888.5 |
Current Liabilities: | ||
Current portion of long-term debt | 900 | 500 |
Accounts payable | 327.6 | 279.2 |
Advance payments | 148.7 | 151.1 |
Accrued taxes | 61.2 | 65.6 |
Other current liabilities | 214.7 | 223.3 |
Total current liabilities | 1,652.2 | 1,219.2 |
Other liabilities | 24.7 | 23.6 |
Liabilities subject to compromise | 10,500 | 10,720.1 |
Total liabilities | 12,176.9 | 11,962.9 |
Commitments and Contingencies (See Note 12) | ||
Member Deficit: | ||
Additional paid-in capital | 1,245.5 | 1,245.3 |
Accumulated other comprehensive income | 16.5 | 22.6 |
Accumulated deficit | (3,607.2) | (3,342.3) |
Total member deficit | (2,345.2) | (2,074.4) |
Total Liabilities and Member Deficit | $ 9,831.7 | $ 9,888.5 |
WINDSTREAM SERVICES, LLC CONS_5
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, net of allowance | $ 47.7 | $ 48.2 |
Windstream Services, LLC | ||
Accounts receivable, net of allowance | $ 47.7 | $ 48.2 |
WINDSTREAM SERVICES, LLC CONS_6
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (264) | $ (2,854.4) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 452.5 | 547.5 |
Allowance for credit losses | 12.8 | 42.8 |
Share-based compensation expense | 1 | 0.3 |
Non-cash reorganization items, net | (8.4) | 55.9 |
Deferred income taxes | 21.7 | (322.2) |
DIP Facilities issuance costs expensed | 0 | 23.4 |
Goodwill impairment | 0 | 2,712.3 |
Other, net | (12.4) | 14.4 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | 35 | (22.8) |
Prepaid expenses and other | (31.3) | (82.3) |
Accounts payable | (46.5) | 197.2 |
Accrued interest | (0.2) | (10) |
Accrued taxes | (2.7) | (8.1) |
Other current liabilities | (28) | (8.4) |
Other liabilities | (0.2) | 8.9 |
Other, net | (7.6) | (0.6) |
Net cash provided from operating activities | 121.7 | 293.9 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (480.1) | (407.4) |
Purchase of FCC spectrum licenses | (13.8) | (10.3) |
Other, net | 2.3 | 2 |
Net cash used in investing activities | (491.6) | (415.7) |
Cash Flows from Financing Activities: | ||
Repayments of debt and swaps | 0 | (372.4) |
Proceeds from debt issuance | 400 | 655 |
Debt issuance costs | 0 | (23.4) |
Payments under finance lease obligations | (11.6) | (27.2) |
Other, net | (0.3) | (0.7) |
Net cash provided from financing activities | 388.1 | 231.3 |
Increase in cash, cash equivalents and restricted cash | 18.2 | 109.5 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 199.6 | 361 |
End of period | 217.8 | 470.5 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 146.3 | 184.6 |
Income taxes paid, net | 1 | 0 |
Reorganization items paid | 82.4 | 76.2 |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net loss | (263.1) | (2,853.7) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 452.5 | 547.5 |
Allowance for credit losses | 12.8 | 42.8 |
Share-based compensation expense | 1 | 0.3 |
Non-cash reorganization items, net | (8.4) | 55.9 |
Deferred income taxes | 21.7 | (322.2) |
Goodwill impairment | 0 | 2,712.3 |
Other, net | (12.4) | 14.4 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | 35 | (22.8) |
Prepaid expenses and other | (31.3) | (82.3) |
Accounts payable | (46.5) | 197.2 |
Accrued interest | (0.2) | (10) |
Accrued taxes | (2.7) | (8.1) |
Other current liabilities | (27.8) | (8.2) |
Other liabilities | (0.2) | 8.9 |
Other, net | (7.6) | (0.6) |
Net cash provided from operating activities | 122.8 | 294.8 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (480.1) | (407.4) |
Other, net | 2.3 | 2 |
Net cash used in investing activities | (491.6) | (415.7) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (1.1) | (0.9) |
Repayments of debt and swaps | 0 | (372.4) |
Proceeds from debt issuance | 400 | 655 |
Debt issuance costs | 0 | (23.4) |
Payments under finance lease obligations | (11.6) | (27.2) |
Other, net | (0.3) | (0.7) |
Net cash provided from financing activities | 387 | 230.4 |
Increase in cash, cash equivalents and restricted cash | 18.2 | 109.5 |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 199.6 | 361 |
End of period | 217.8 | 470.5 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 146.3 | 184.6 |
Income taxes paid, net | 1 | 0 |
Reorganization items paid | 82.4 | 76.2 |
Right-of-use assets obtained in exchange for operating lease obligations | 0.6 | 5.5 |
Right-of-use assets obtained in exchange for finance lease obligations | $ 0 | $ 3.9 |
WINDSTREAM SERVICES, LLC CONS_7
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENT OF MEMBER EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Windstream Services, LLC | Windstream Services, LLCAdditional Paid-In Capital | Windstream Services, LLCAccumulated Other Comprehensive Income | Windstream Services, LLCAccumulated Deficit | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Additional Paid-In Capital | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Accumulated Other Comprehensive Income | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Accumulated Deficit | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Windstream Services, LLC | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Windstream Services, LLCAdditional Paid-In Capital | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Windstream Services, LLCAccumulated Other Comprehensive Income | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]Windstream Services, LLCAccumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment [Member]Windstream Services, LLC | Cumulative Effect, Period of Adoption, Adjustment [Member]Windstream Services, LLCAdditional Paid-In Capital | Cumulative Effect, Period of Adoption, Adjustment [Member]Windstream Services, LLCAccumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment [Member]Windstream Services, LLCAccumulated Deficit |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Adoption of ASU 2016-02 | $ 3,013 | $ 0 | $ 0 | $ 3,013 | $ 3,013 | $ 0 | $ 0 | $ 3,013 | ||||||||||||||||
Beginning balance at Dec. 31, 2018 | $ (1,919.3) | $ 1,250.4 | $ 35.6 | $ (3,205.3) | $ (1,919.3) | $ 1,244.2 | $ 35.6 | $ (3,199.1) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net loss | (2,310.3) | 0 | 0 | (2,310.3) | (2,310) | 0 | 0 | (2,310) | ||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in pension and postretirement plans | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 | ||||||||||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 | ||||||||||||||||
Changes in designated interest rate swaps | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 | ||||||||||||||||
Comprehensive loss | (2,313.9) | 0 | (3.6) | (2,310.3) | (2,313.6) | 0 | (3.6) | (2,310) | ||||||||||||||||
Share-based compensation | 2.4 | 2.4 | 0 | 0 | 2.4 | 2.4 | 0 | 0 | ||||||||||||||||
Taxes withheld on vested restricted stock and other | (0.4) | (0.4) | 0 | 0 | (0.4) | (0.4) | 0 | 0 | ||||||||||||||||
Distributions payable to Windstream Holdings, Inc. | (0.3) | (0.3) | 0 | 0 | ||||||||||||||||||||
Ending balance at Mar. 31, 2019 | (1,218.2) | 1,252.4 | 32 | (2,502.6) | (1,218.2) | 1,245.9 | 32 | (2,496.1) | ||||||||||||||||
Beginning balance at Dec. 31, 2018 | (1,919.3) | 1,250.4 | 35.6 | (3,205.3) | (1,919.3) | 1,244.2 | 35.6 | (3,199.1) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net loss | (2,854.4) | (2,853.7) | ||||||||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in pension and postretirement plans | (0.7) | (0.7) | ||||||||||||||||||||||
Comprehensive loss | (2,860.6) | (2,859.9) | ||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | (1,766.4) | 1,250.9 | 29.4 | (3,046.7) | (1,766.4) | 1,244 | 29.4 | (3,039.8) | ||||||||||||||||
Beginning balance at Mar. 31, 2019 | (1,218.2) | 1,252.4 | 32 | (2,502.6) | (1,218.2) | 1,245.9 | 32 | (2,496.1) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net loss | (544.1) | 0 | 0 | (544.1) | (543.7) | 0 | 0 | (543.7) | ||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in pension and postretirement plans | (0.4) | 0 | (0.4) | 0 | (0.4) | 0 | (0.4) | 0 | ||||||||||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (2.2) | 0 | (2.2) | 0 | (2.2) | 0 | (2.2) | 0 | ||||||||||||||||
Comprehensive loss | (546.7) | 0 | (2.6) | (544.1) | (546.3) | 0 | (2.6) | (543.7) | ||||||||||||||||
Share-based compensation | (1.6) | (1.6) | 0 | 0 | (1.6) | (1.6) | 0 | 0 | ||||||||||||||||
Taxes withheld on vested restricted stock and other | (0.1) | (0.1) | 0 | 0 | (0.1) | (0.1) | 0 | 0 | ||||||||||||||||
Distributions payable to Windstream Holdings, Inc. | (0.4) | (0.4) | 0 | 0 | ||||||||||||||||||||
Ending balance at Jun. 30, 2019 | (1,766.4) | 1,250.9 | 29.4 | (3,046.7) | (1,766.4) | 1,244 | 29.4 | (3,039.8) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Adoption of ASU 2016-13 (See Note 1) | $ (1.8) | $ 0 | $ 0 | $ (1.8) | $ (1.8) | $ 0 | $ 0 | $ (1.8) | ||||||||||||||||
Beginning balance at Dec. 31, 2019 | (2,074.4) | 1,253.1 | 22.6 | (3,350.1) | (2,074.4) | 1,245.3 | 22.6 | (3,342.3) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net loss | (101.6) | 0 | 0 | (101.6) | (101) | 0 | 0 | (101) | ||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in pension and postretirement plans | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 | ||||||||||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 | ||||||||||||||||
Comprehensive loss | (104.3) | 0 | (2.7) | (101.6) | (103.7) | 0 | (2.7) | (101) | ||||||||||||||||
Share-based compensation | 0.6 | 0.6 | 0 | 0 | 0.6 | 0.6 | 0 | 0 | ||||||||||||||||
Taxes withheld on vested restricted stock and other | (0.1) | (0.1) | 0 | 0 | ||||||||||||||||||||
Distributions payable to Windstream Holdings, Inc. | (0.5) | (0.5) | 0 | 0 | ||||||||||||||||||||
Ending balance at Mar. 31, 2020 | (2,179.8) | 1,253.8 | 19.9 | (3,453.5) | (2,179.8) | 1,245.4 | 19.9 | (3,445.1) | ||||||||||||||||
Beginning balance at Dec. 31, 2019 | (2,074.4) | 1,253.1 | 22.6 | (3,350.1) | (2,074.4) | 1,245.3 | 22.6 | (3,342.3) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net loss | (264) | (263.1) | ||||||||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in pension and postretirement plans | (1.2) | (1.2) | ||||||||||||||||||||||
Comprehensive loss | (270.1) | (269.2) | ||||||||||||||||||||||
Ending balance at Jun. 30, 2020 | (2,345.2) | 1,254.2 | 16.5 | (3,615.9) | (2,345.2) | 1,245.5 | 16.5 | (3,607.2) | ||||||||||||||||
Beginning balance at Mar. 31, 2020 | (2,179.8) | 1,253.8 | 19.9 | (3,453.5) | (2,179.8) | 1,245.4 | 19.9 | (3,445.1) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net loss | (162.4) | 0 | 0 | (162.4) | (162.1) | 0 | 0 | (162.1) | ||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in pension and postretirement plans | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 | (0.9) | 0 | ||||||||||||||||
Amortization of net unrealized gains on de-designated interest rate swaps | (2.5) | 0 | (2.5) | 0 | (2.5) | 0 | (2.5) | 0 | ||||||||||||||||
Comprehensive loss | (165.8) | 0 | (3.4) | (162.4) | (165.5) | 0 | (3.4) | (162.1) | ||||||||||||||||
Share-based compensation | 0.4 | 0.4 | 0 | 0 | 0.4 | 0.4 | 0 | 0 | ||||||||||||||||
Distributions payable to Windstream Holdings, Inc. | (0.3) | (0.3) | 0 | 0 | ||||||||||||||||||||
Ending balance at Jun. 30, 2020 | $ (2,345.2) | $ 1,254.2 | $ 16.5 | $ (3,615.9) | $ (2,345.2) | $ 1,245.5 | $ 16.5 | $ (3,607.2) |
Preparation of Interim Financia
Preparation of Interim Financial Statements: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Basis of Presentation and Recently Issued Accounting Pronouncements: | Preparation of Interim Financial Statements: In these consolidated financial statements, unless the context requires otherwise, the use of the terms “Windstream,” “we,” “us” or “our” shall refer to Windstream Holdings, Inc. and its subsidiaries, including Windstream Services, LLC, and the term “Windstream Services” shall refer to Windstream Services, LLC and its subsidiaries. Organizational Structure – Windstream Holdings, Inc. (“Windstream Holdings”) is a publicly traded holding company incorporated in the state of Delaware on May 23, 2013, and the parent of Windstream Services, LLC (“Windstream Services”), a Delaware limited liability company organized on March 1, 2004. Following its delisting on March 6, 2019, Windstream Holdings common stock no longer trades on the Nasdaq Global Select Market (“NASDAQ”) but trades on the Over-the-Counter (“OTC”) Pink Sheets market maintained by the OTC Market Group, Inc. under the trading symbol “WINMQ”. Windstream Holdings owns a 100 percent interest in Windstream Services and its guarantor subsidiaries are the sole obligors of all outstanding debt obligations and, as a result, also file periodic reports with the Securities and Exchange Commission (“SEC”). Windstream Holdings is not a guarantor of nor subject to the restrictive covenants included in any of Windstream Services’ debt agreements. The Windstream Holdings board of directors and officers oversee both companies. Description of Business – We are a leading provider of advanced network communications and technology solutions for businesses across the U.S. We also offer broadband, entertainment and security solutions to consumers and small businesses primarily in rural areas in 18 states. Additionally, we supply core transport solutions on a local and long-haul fiber network spanning approximately 169,000 route miles. Consumer service revenues are generated from the provisioning of high-speed Internet, voice and video services to consumers. Enterprise service revenues include revenues from integrated voice and data services, advanced data and traditional voice and long-distance services provided to enterprise, mid-market and small business customers. Wholesale revenues include revenues from other communications services providers for special access circuits and fiber connections, voice and data transport services, and revenues from the reselling of our services. Service revenues also include switched access revenues, federal and state Universal Service Fund (“USF”) revenues, amounts received from Connect America Fund (“CAF”) - Phase II, USF surcharges and revenues from providing other miscellaneous services. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2019 , was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). In our opinion, these financial statements reflect all adjustments that are necessary for a fair statement of results of operations and financial condition for the interim periods presented including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 , which was filed with the SEC on May 19, 2020 . Windstream Holdings and its domestic subsidiaries, including Windstream Services, file a consolidated federal income tax return. As such, Windstream Services and its subsidiaries are not separate taxable entities for federal and certain state income tax purposes. In instances when Windstream Services does not file a separate return, income taxes as presented within the accompanying consolidated financial statements attribute current and deferred income taxes of Windstream Holdings to Windstream Services and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method. Income tax provisions presented for Windstream Services and its subsidiaries are prepared under the “separate return method.” The separate return method represents a hypothetical computation assuming that the reported revenue and expenses of Windstream Services and its subsidiaries were incurred by separate taxable entities. The preparation of financial statements, in accordance with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements, including the potential impacts arising from the COVID-19 global pandemic. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. 1. Preparation of Interim Financial Statements, Continued: There are no significant differences between the consolidated results of operations, financial condition, and cash flows of Windstream Holdings and those of Windstream Services other than for certain expenses incurred directly by Windstream Holdings principally consisting of audit, legal and board of director fees, common stock listing fees, other shareholder-related costs, income taxes, common stock activity, and payables from Windstream Services to Windstream Holdings. Earnings per share data has not been presented for Windstream Services because that entity has not issued publicly held common stock as defined in accordance with U.S. GAAP. Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Services. Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact net loss or comprehensive loss. FCC Spectrum Licenses - During 2020, we acquired wireless spectrum licenses in the 37, 39 and 47 GHz bands auction conducted by the Federal Communications Commission (“FCC”) for $13.8 million . Combined with the spectrum licenses we acquired in the 24 and 28 GHz bands auctions completed during 2019, the total carrying value of FCC spectrum licenses included in other intangible assets as of June 30, 2020 was $40.4 million . The spectrum licenses have an initial term of 10 years and are subject to renewal by the FCC. Currently, there are no legal, regulatory, contractual, competitive, economic or other factors that would limit the useful life of the spectrum. Accordingly, the spectrum licenses have been classified as indefinite-lived assets. Operating Lease Income - Certain of our service offerings include equipment leases. We also lease our network facilities to other service providers and enter into arrangements with third parties to lease unused or underutilized portions of our network. Operating lease income was $67.1 million and $132.3 million for the three and six-month periods ended June 30, 2020 , respectively, as compared to $62.0 million and $124.1 million for the three and six-month periods ended June 30, 2019 , respectively, and is included in services revenues in our consolidated statement of operations. Provision for Income Taxes - During the three and six-month periods ended June 30, 2020 , we recognized income tax expense of $8.5 million and $16.3 million , respectively, as compared to income tax benefits of $54.2 million and $323.0 million for the same periods in 2019 . Income tax expense recorded in the three and six-month periods of 2020 reflected discrete tax expense of $25.9 million and $34.4 million , respectively, related to our bankruptcy reorganization and discrete tax expense of $19.7 million and $41.2 million , respectively, related to an increase in our valuation allowance, partially offset by income tax benefits attributable to our loss before taxes. Comparatively, the income tax benefit recorded for the three and six-month periods ended June 30, 2019 reflected the losses before taxes offset by discrete tax expense of $87.6 million and $455.6 million , respectively, related to our goodwill impairments. Inclusive of the discrete items, our effective tax rate was (5.5) percent and (6.6) percent for the three and six-month periods ended June 30, 2020 as compared to 9.1 percent and 10.2 percent for the same periods in 2019 . As of June 30, 2020 , we were in a net deferred tax liability position and recorded income tax benefits on non-discrete items during the three and six-month periods of 2020. We will monitor our deferred tax asset position each quarter and determine the appropriate income tax benefit to record based upon the reversal of taxable temporary differences. Recently Adopted Accounting Standards Financial Instruments - Credit Losses – In June 2016, the Financial Accounting Standards Boards (“FASB”) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as modified by subsequently issued ASU Nos. 2018-19, 2019-11 and 2020-02 (collectively “ASU 2016-13”). This standard introduced a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This new standard also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 was effective for annual and interim reporting periods beginning after December 15, 2019. We adopted ASU 2016-13 using the modified retrospective transition method effective January 1, 2020. Upon adoption, we recorded a cumulative effect adjustment of approximately $1.8 million , net of tax, increasing our accumulated deficit. 1. Preparation of Interim Financial Statements, Continued: We estimate credit losses for trade receivables by aggregating similar customer types together to calculate expected default rates based on historical losses as a percentage of total aged revenue. These rates are then applied, on a monthly basis, to the outstanding balances staged by customer. In addition to continued evaluation of historical losses, ASU 2016-13 requires forward-looking information and forecasts to be considered in determining credit loss estimates. Our current forecast methodology assesses historical trends to project future losses and is not forward-looking for potential economic factors that would change the credit loss model. Therefore, historical trends continue to be the most accurate expectation of future losses as Windstream has defined rules around customers who can establish service. Our revenue and associated accounts receivable are based upon a recurring revenue structure whereby customers are billed in advance of service being provided and there is little month-to-month volatility in the composition of the customer base across all segments. We are actively monitoring the impacts of the COVID-19 global pandemic on our customers and their associated accounts receivable balances in order to adjust the allowance for credit losses accordingly. To date, no material risk has been identified, but management will continue to monitor and make adjustments, as necessary. Our accounts receivable balance consists of the following as of: (Millions) June 30, Accounts receivable $ 575.5 Less: Allowance for credit losses (47.7 ) Accounts receivable, net $ 527.8 Activity in our allowance for credit losses consists of the following: (Millions) Balance as of December 31, 2019 $ (48.2 ) Cumulative effect adjustment for ASU 2016-13 adoption (2.6 ) Additional allowance for estimated credit losses (12.8 ) Write-offs, net of recovered accounts 15.9 Balance as of June 30, 2020 $ (47.7 ) Implementation Costs in Cloud Computing Arrangements - In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This standard requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The service element of a hosting arrangement will continue to be expensed as incurred. The guidance was effective for annual and interim reporting periods beginning after December 15, 2019 and may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. We adopted ASU 2018-15 on a prospective basis effective January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Authoritative Guidance Income Taxes - In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The standard intends to simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by amending existing guidance to improve consistent application in financial statements. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, which is January 1, 2021 for us, with early adoption permitted. We are currently in the process of evaluating the impacts of this guidance on our consolidated financial statements and related income tax disclosures. |
Chapter 11 Filing, Going Concer
Chapter 11 Filing, Going Concern and Other Related Matters (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Reorganizations [Abstract] | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | Chapter 11 Filing, Going Concern and Other Related Matters: Chapter 11 Filing On February 15, 2019, Judge Jesse Furman of the United States District Court for the Southern District of New York issued findings of fact and conclusions of law in litigation relating to a noteholder’s allegations that our spin-off of certain assets in 2015 into a publicly-traded real estate investment trust resulted in one or more defaults of certain covenants under one of Windstream Services’ existing indentures. The findings resulted in a cross default under Windstream Services’ senior secured credit agreement governing its secured term and revolving loan obligations and remaining obligations under the contractual arrangement with Uniti. In addition, the findings resulted in a cross-acceleration event of default under the indentures governing Windstream Services’ other series of secured and unsecured notes. On February 25, 2019 (the “Petition Date”), Windstream Holdings and all of its subsidiaries, including Windstream Services (collectively, the “Debtors”), filed voluntary petitions (the “Chapter 11 Cases”) for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”).The filing of the Chapter 11 Cases also constitutes an event of default under our debt agreements. Subject to certain specific exceptions under the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities are subject to settlement under the Bankruptcy Code. The Chapter 11 Cases are being jointly administered under the caption In re Windstream Holdings, Inc., et al., No 19-22312 (RDD). We will continue to operate our businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business, however, we may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to first day motions filed with the Bankruptcy Court, the Bankruptcy Court authorized us to conduct our business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing us to: obtain debtor-in-possession financing, pay certain employee wages and benefits, and pay certain vendors and suppliers in the ordinary course for most goods and services. As further discussed under “Plan of Reorganization,” on June 26, 2020, the Bankruptcy Court entered an order confirming the Debtors’ Plan of Reorganization (the “Confirmation Order”) pursuant to which the Debtors may assume, assign, or reject certain executory contracts and unexpired leases until 45 days after the effective date of our Plan of Reorganization. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors from performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Debtors discussed herein, including a quantification of the Debtors’ obligations under any such executory contract or unexpired lease, is qualified by any overriding rejection rights the Debtors continue to have under the Bankruptcy Code. Uniti Arrangement The acceleration of the 2023 Notes resulted in an event of default under the contractual arrangement with Uniti, but no default notice has been received. Upon an event of default, remedies available to Uniti include terminating the contractual arrangement and requiring us to transfer the business operations we conduct on the telecommunication network assets so terminated (with limited exceptions) to a successor party for fair market value pursuant to a process set forth in the contractual arrangement, dispossessing us from the telecommunication network assets, and/or collecting monetary damages for the breach (including payment acceleration), electing to leave the contractual arrangement in place and sue for payment and any other monetary damages, and seeking any and all other rights and remedies available under law or in equity. The exercise of such remedies could have a material adverse effect on our business, financial position, results of operations and liquidity. Uniti’s ability to exercise remedies under the contractual arrangement was stayed as of the date of the Chapter 11 petition filing. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: In connection with the Chapter 11 Cases, the Debtors analyzed the arrangement with Uniti, and on July 25, 2019, the Debtors filed a complaint in the Bankruptcy Court seeking, among other things, to recharacterize the Uniti arrangement from a lease to a financing. The complaint contained additional claims that certain transfers from Windstream to Uniti were fraudulent transfers under the applicable Bankruptcy Code provisions, and finally, that Uniti was in breach of the arrangement by engaging in competitive behavior in violation of certain provisions in the arrangement. After engaging in a seven months-long mediation process with Uniti and its creditors regarding the litigation, that was overseen by the Honorable Judge Shelly C. Chapman, on March 2, 2020, Windstream announced an agreement in principle with Uniti to settle any and all claims and causes that were or could have been asserted against Uniti by Windstream, including seeking the recharacterization of the lease to a financing. Among the terms of the settlement, Uniti agreed to fund up to $1.75 billion in capital improvements to the network; pay Windstream $400 million payable in quarterly cash installments over five years , at an annual interest rate of 9.0 percent , which amount may be fully paid after one year, resulting in total cash payments ranging from $432 - $490 million ; and purchase, for $40 million , certain Windstream-owned fiber assets, including certain fiber indefeasible rights of use (“IRU”) contracts with Windstream transferring to Uniti certain dark fiber IRU contracts. Uniti will also transfer to Windstream $244.5 million of proceeds from, and conditioned upon, the sale of Uniti’s common stock to certain first lien creditors of Windstream Services. Annual rental payments will be equal to the annual rent due under the existing master lease agreement. On the one-year anniversary of any growth capital improvements funded by Uniti, the annual base rent payable by Windstream will increase by an amount equal to 8.0 percent of such investment, subject to a 0.5 percent annual escalator. In conjunction with the announcement, Windstream filed a motion seeking approval from the Bankruptcy Court of the proposed settlement, and a hearing on the motion was held on May 7 and 8, 2020, at which time the Bankruptcy Court approved the settlement with Uniti. The approved settlement is subject to certain regulatory approvals and conditions precedent, including Uniti's receipt of satisfactory "true lease" and REIT opinions, which remain outstanding. Until all conditions are satisfied, there is no guarantee that the settlement with Uniti will be consummated. Plan Support Agreement On March 2, 2020, the Debtors entered into a Plan Support Agreement (the “PSA”) with certain members of first lien lenders and noteholders, including the Debtors’ largest creditor, Elliott Investment Management L.P. (“Elliott”), and Uniti. The PSA contemplates the Debtors’ restructuring and recapitalization (the “Restructuring Transactions”), which will be implemented through a Chapter 11 plan of reorganization (the “Plan”). The PSA provided for, among other things: (1) reduction of Windstream’s existing funded debt by more than $4 billion upon emergence of the Chapter 11 Cases, (2) reduction of Windstream’s annual debt service obligations, and (3) access to exit financing consistent with terms set forth in the PSA. Pursuant to the PSA, participating parties agreed to, among other things, support the Restructuring Transactions and vote in favor of the Plan. The PSA, as amended, has support across the Debtors’ capital structure, and participating parties include 94 percent of first lien claims, 54 percent of second lien claims, 39 percent of unsecured notes claims, and 72 percent of holders of 6.375 percent Senior Notes due 2028 (the “Midwest Notes”). On March 2, 2020, the Debtors publicly filed the PSA and accompanying plan term sheet (the “Plan Term Sheet”), outlining the terms of the reorganization, including funding an exit facility in an aggregate amount up to $3,250 million (the “New Exit Facility”) and backstop commitments from certain first lien creditors (the “Backstop Commitment Agreement”) related to a $750 million common equity rights offering upon the effective date (the “Rights Offering”). On March 13, 2020, the Debtors filed a motion to approve the Backstop Commitment Agreement, providing for a backstop premium equal to 8 percent of the $750 million committed amount payable in common stock (the “Backstop Premium”), which agreement was approved by the Bankruptcy Court at a hearing on May 8, 2020. Upon the Bankruptcy Court’s entry of the Backstop Premium Agreement approval order on May 13, 2020, the Backstop Premium became fully earned and a liability to Windstream. Following the Bankruptcy Court’s approval of our Plan of Reorganization on June 25, 2020, as further discussed below, the only conditions in which the Backstop Premium would be payable for less than $60.0 million is if Windstream terminates the Backstop Premium Agreement due to a breach by an equity backstop party or the PSA is terminated in accordance with its terms. Because both of these conditions were deemed remote following the confirmation of our Plan of Reorganization, Windstream accrued $60.0 million for the Backstop Premium in the second quarter of 2020, which amount has been included in reorganization items, net. Among other items, the PSA is conditioned upon the consummation of the settlement with Uniti. Accordingly, there is no guarantee that the Debtors will consummate the PSA. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Plan of Reorganization In order for the Debtors to emerge successfully from Chapter 11, the Debtors must obtain the required votes of creditors accepting a plan of reorganization as well as the Bankruptcy Court’s confirmation of such plan. A reorganization plan determines the rights and satisfaction of claims of various creditors and security holders and is subject to the ultimate outcome of negotiations and Bankruptcy Court decisions ongoing through the date on which the reorganization plan is confirmed. On April 1, 2020, the Debtors filed a Joint Chapter 11 Plan of Reorganization (“the Plan”) with the Bankruptcy Court. On the same date, the Debtors filed a Disclosure Statement relating to the Plan, along with a motion seeking approval of the Disclosure Statement. On May 6, 2020, an amended Disclosure Statement was filed with the Bankruptcy Court that included ranges of allowed claims by creditor classes. As of June 30, 2020 and December 31, 2019 , the Debtors have adjusted their recorded liabilities to amounts consistent with the estimate’s ranges specified in the Disclosure Statement. At a hearing held on May 8, 2020, the Disclosure Statement was approved by the Bankruptcy Court, allowing the Company to begin soliciting the requisite accepting votes in favor of the Plan. The Debtors promptly commenced solicitation of votes on the Plan in compliance with the Bankruptcy Court’s order. The deadline for all holders of Claims to vote on the Plan was June 17, 2020, at 4:00 p.m., prevailing Eastern Time. Holders of Claims entitled to vote in three classes with respect to each Debtor voted to accept the Plan, and the Debtors fulfilled the conditions for voting to allow for confirmation to occur. On June 24 and 25, 2020, the Bankruptcy Court held a confirmation hearing to consider the approval of the Debtors’ Plan at which time the Bankruptcy Court confirmed the Plan. The Plan memorializes the terms agreed to in the PSA and Plan Term Sheet, providing for, among other things: a) payment in full of debtor-in-possession financing obligations and administrative expense claims; b) distribution to holders of first lien claims on a pro rata basis: (i) 100 percent of new common stock, subject to certain adjustments described in the Plan and dilution by the Backstop Premium, Rights Offering, and Management Incentive Program; (ii) cash in the amount equal to the sum of Exit Facility proceeds, flex proceeds, cash proceeds of the Rights Offering, and cash held by the Debtors; (iii) subscription rights; and (iv) first lien replacement loans, as applicable; c) $100 million in new loans arising under the New Exit Facility to holders of Midwest Notes; d) certain cash distributions to holders of the second lien claims, unsecured notes claims, and other general unsecured claims against obligor Debtors, if those classes accept the plan; e) reinstatement or repayment of general unsecured claims against non-obligor Debtors; and f) the cancellation of existing equity interests in Windstream Holdings. After the confirmation hearing, on June 26, 2020, the Bankruptcy Court signed an order and confirmed the Plan (the “Confirmation Order”). The approved Plan is subject to certain regulatory approvals and conditions precedent which remain outstanding. Until all conditions are satisfied, there is no guarantee that the Plan will be consummated. As the Plan has yet to be consummated, the accompanying financial statements continue to be prepared pursuant to Accounting Standards Codification (“ASC”) 852, Reorganizations. The Debtors have been in compliance with all milestones under the PSA, including (1) the milestones to file with the Bankruptcy Court the motion to approve the Uniti Settlement, the Backstop Commitment Agreement, and the motion to approve the Backstop Commitment Agreement, (2) the milestone to file with the Bankruptcy Court the Plan, Disclosure Statement, and motion to approve the Disclosure Statement, (3) the milestones, as extended, to achieve entry of the orders to approve the Backstop Commitment Agreement and Uniti Settlement, and (4) the milestone to achieve entry of the order approving the Disclosure Statement. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: After the Bankruptcy Court’s approval of the order approving the Disclosure Statement on May 14, 2020, the remaining PSA milestones were extended to provide for a milestone of July 2, 2020 to confirm the Plan and September 30, 2020 to emerge from Chapter 11. The Debtors’ emergence from Chapter 11 is subject to, among other things, consummation of the Restructuring Transactions described above, certain regulatory approvals, and execution and implementation of the definitive documents contemplated by the Uniti Settlement. The Debtors expect to timely emerge from Chapter 11; however, there is no guarantee that we will consummate the Plan and emerge from Chapter 11. Going Concern and Financial Reporting Our financial condition, the defaults under our debt agreements and contractual arrangement with Uniti, and the risks and uncertainties surrounding the Chapter 11 Cases, raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is contingent upon, among other factors, our ability to (i) successfully implement such plan of reorganization, (ii) address debt and other liabilities through the bankruptcy process, (iii) generate sufficient cash flow from operations, and (iv) obtain financing sources sufficient to meet our future obligations. As a result of the Chapter 11 Cases, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession pursuant to the Bankruptcy Code, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business pursuant to relief we obtained from the Bankruptcy Court, for amounts other than those reflected in the accompanying consolidated financial statements. In particular, such financial statements do not purport to show with respect to (i) assets, the realization value on a liquidation basis or availability to satisfy liabilities, (ii) liabilities arising prior to the Petition Date, the amounts that may be allowed for claims or contingencies, or the status and priority thereof, (iii) shareholders’ equity accounts, the effect of any changes that may be made in our capitalization, or (iv) operations, the effects of any changes that may be made in the underlying business. An effective plan of reorganization would likely cause material changes to the amounts currently disclosed in the accompanying consolidated financial statements. Further, the plan of reorganization could materially change the amounts and classifications reported in the consolidated historical financial statements, which do not give effect to any adjustments to the carrying value of assets or amounts of liabilities that might be necessary as a consequence of confirmation of a plan of reorganization. The accompanying consolidated financial statements do not include any direct adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable to continue as a going concern or as a consequence of the Chapter 11 Cases. Effective on February 25, 2019, we began to apply the provisions of ASC 852, which is applicable to companies under bankruptcy protection, and requires amendments to the presentation of key financial statement line items. ASC 852 requires that the financial statements for periods subsequent to the filing of the Chapter 11 Cases distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Revenues, expenses, realized gains and losses, and provisions for losses that can be directly associated with the reorganization and restructuring of the business must be reported separately as reorganization items, net in the consolidated statements of operations beginning February 25, 2019. The consolidated balance sheet must distinguish pre-petition liabilities subject to compromise from both those pre-petition liabilities that are not subject to compromise and from post-petition liabilities. Liabilities subject to compromise include pre-petition liabilities that are unsecured, under-secured or where it cannot be determined that the liabilities are fully secured. Liabilities that may be affected by a plan of reorganization must be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the plan of reorganization or negotiations with creditors. If there is uncertainty about whether a secured claim is under-secured, or will be impaired under the plan of reorganization, the entire amount of the claim is included with pre-petition claims in liabilities subject to compromise. In addition, cash used for reorganization items, net is disclosed. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Liabilities Subject to Compromise Due to the filing of the Chapter 11 Cases on February 25, 2019, the classification of pre-petition indebtedness is generally subject to compromise pursuant to a plan of reorganization, as previously described above. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims generally is not permitted, the Bankruptcy Court granted the Debtors authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Debtors’ businesses and assets. Among other things, the Bankruptcy Court authorized the Debtors to pay certain pre-petition claims relating to employee wages and benefits, taxes and critical vendors. The Debtors are paying and intend to pay undisputed post-petition liabilities in the ordinary course of business. In addition, the Debtors may reject certain pre-petition executory contracts and unexpired leases with respect to their operations with the approval of the Bankruptcy Court. Any damages resulting from the rejection of executory contracts and unexpired leases are treated as general unsecured claims and classified as liabilities subject to compromise. Pre-petition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of secured status of certain claims, the values of any collateral securing such claims, or other events. Any resulting changes in classification will be reflected in subsequent financial statements, as was the case for certain debt obligations of Windstream Services, which were reclassified to liabilities subject to compromise in the second quarter of 2019, as discussed below. As further discussed in Note 3, “Debt,” our debtor-in-possession facilities have priority over all the other debt obligations of Windstream Services and its subsidiaries. Both the PSA and the Plan indicated that all debt obligations of Windstream Services and its subsidiaries were impaired, except for the debtor-in-possession facilities. Based on the expected treatment of the creditor classes included in the PSA and the Plan, which the Debtors believe to be the most relevant factor in determining the appropriate classification of its debt obligations as of the balance sheet date, debt obligations under the senior secured credit facility, senior first lien notes and bonds issued by Windstream Holdings of the Midwest, Inc. (“Midwest Bonds”) were classified as liabilities subject to compromise during the second quarter of 2019. All unamortized debt issuance costs and original net discount related to these debt obligations were written-off and charged to reorganization items, net during second quarter of 2019. The senior secured second lien notes and unsecured senior notes, which were undercollateralized as of the Petition Date, had been classified as liabilities subject to compromise in the first quarter of 2019. Accordingly, all debt obligations, except for the debtor-in-possession facilities, have been classified as liabilities subject to compromise in the accompanying consolidated balance sheets. As also discussed in Note 3, “Debt,” adequate protection payment was granted by the Bankruptcy Court to holders of debt obligations under Windstream Services’ senior secured credit facility and to holders of the senior first lien notes and Midwest Bonds. The Debtors have concluded that such payments do not represent the reduction of principal because the allowed claim for the associated secured debt included in the Disclosure Statement agreed to the outstanding principal balance as of June 30, 2020 and December 31, 2019, respectively, and the Bankruptcy Court has not taken any action to date to recharacterize the adequate protection payments as principal reduction. Accordingly, all such adequate protection payments remitted subsequent to the filing of the Chapter 11 Cases have been classified as interest expense in the accompanying consolidated statements of operations. On June 10, 2020, Windstream filed an amendment to the final debtor-in-possession order, which deferred the remittance of the adequate protection payments earned between July 1, 2020 through and including October 31, 2020. The Disclosure Statement is subject to amendment and, accordingly, there can be no assurance that the treatment of the adequate protection payments will not change. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Liabilities subject to compromise was as follows at: (Millions) June 30, December 31, Accounts payable $ 227.3 $ 335.7 Advance payments 6.2 6.6 Accrued taxes 26.2 24.5 Other current liabilities 95.1 97.1 Deferred taxes 91.7 72.6 Operating lease liabilities 3,934.7 4,040.7 Pension and other employee benefit plan obligations 305.6 314.0 Other liabilities 185.0 200.7 Accounts payable, accrued and other liabilities 4,871.8 5,091.9 Debt subject to compromise 5,599.3 5,599.3 Accrued interest on debt subject to compromise 28.9 28.9 Long-term debt and accrued interest 5,628.2 5,628.2 Total liabilities subject to compromise $ 10,500.0 $ 10,720.1 Determination of the value at which liabilities will ultimately be settled cannot be made until the Plan becomes effective and the Debtors emerge from bankruptcy. We will continue to evaluate the amount and classification of our pre-petition liabilities. Any adjustment to liabilities that are subject to compromise will be recognized accordingly, and therefore, the aggregate amount of liabilities subject to compromise may change. Potential Claims On May 10, 2019, the Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. Certain holders of pre-petition claims that were not governmental entities were required to file proofs of claim by the deadline for general claims, which was on July 15, 2019 (the “Bar Date”). The governmental bar date was August 26, 2019. As of July 24, 2020, the Debtors have received approximately 8,500 proofs of claim for an amount of approximately $16.5 billion . Such amount includes duplicate claims across multiple debtor legal entities. These claims will continue to be reconciled to amounts recorded in liabilities subject to compromise in the consolidated balance sheet. Differences in amounts recorded and claims filed by creditors continue to be investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. The Debtors may ask the Bankruptcy Court to disallow claims that the Debtors believe are duplicative, have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. In addition, as a result of this process, the Debtors may identify additional liabilities that will need to be recorded or reclassified to liabilities subject to compromise. In light of the substantial number of claims filed, and expected to be filed, the claims resolution process may take considerable time to complete and likely will continue after the Debtors emerge from bankruptcy. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Reorganization Items, Net The Debtors have incurred and will continue to incur significant costs associated with the reorganization, primarily legal and professional fees. Subsequent to the Petition Date, these costs are being expensed as incurred and are expected to significantly affect our consolidated results of operations. Reorganization items, net incurred as a result of the Chapter 11 Cases presented separately in the accompanying consolidated statement of operations was as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Professional fees and other bankruptcy-related costs $ 47.3 $ 47.7 $ 92.1 $ 66.7 Provision for estimated damages on rejected executory contracts 11.2 25.3 11.2 25.3 Backstop premium 60.0 — 60.0 — Gain on write-off of net lease liabilities for rejected leases — (17.4 ) — (17.4 ) Gain on vendor settlements of liabilities subject to compromise (4.1 ) (8.5 ) (8.4 ) (8.5 ) Write-off of deferred long-term debt issuance costs — 30.6 — 54.7 Write-off of original issue net discount on debt — 5.5 — 27.1 Debtor-in-possession financing costs — 2.2 — 42.4 Reorganization items, net $ 114.4 $ 85.4 $ 154.9 $ 190.3 Professional fees included in reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. The write-offs of deferred long-term debt issuance costs and original issue net discount relate to debt classified as liabilities subject to compromise. Included in debtor-in-possession financing costs for the three and six-month periods ended June 30, 2019 were fees of $16.9 million that were netted against the $500.0 million proceeds received from issuance of the DIP Facilities, as defined in Note 3. |
Debt_ Debt_ (Notes)
Debt: Debt: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt: Event of Default and Chapter 11 Cases – As discussed in Notes 2 and 12, on February 15, 2019, Judge Jesse Furman found that Windstream Services had defaulted under the indenture governing the August 2023 Notes, which resulted in the acceleration of the August 2023 Notes, and a cross default under Windstream Services’ senior secured credit agreement governing its secured term and revolving line of credit obligations, as well as the remaining obligations under the contractual arrangement with Uniti. In addition, the acceleration of the August 2023 Notes resulted in a cross-acceleration event of default under the indentures governing Windstream Services’ other series of secured and unsecured notes. On February 25, 2019, Windstream Holdings and all of its subsidiaries, including Windstream Services, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. The filing of the Chapter 11 Cases also constituted an event of default under our debt agreements. Due to the Chapter 11 Cases, however, our creditors’ ability to exercise remedies under our debt agreements were stayed as of the date of the Chapter 11 petition filing. In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to orders entered by the Bankruptcy Court, the Bankruptcy Court after the second day motion hearing authorized us to conduct our business activities in the ordinary course. 3. Debt, Continued: Debt incurred by Windstream Services and its subsidiaries was as follows at: (Millions) June 30, December 31, Issued by Windstream Services: Superpriority debtor-in-possession term loan facility $ 500.0 $ 500.0 Superpriority debtor-in-possession revolving credit facility 400.0 — Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) (b) 1,180.5 1,180.5 Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 (b) 568.4 568.4 Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) 802.0 802.0 Senior First Lien Notes – 8.625%, due October 31, 2025 (b) 600.0 600.0 Senior Second Lien Notes – 10.500%, due June 30, 2024 (b) 414.9 414.9 Senior Second Lien Notes – 9.000%, due June 30, 2025 (b) 802.0 802.0 Debentures and notes, without collateral: 2020 Notes – 7.750%, due October 15, 2020 (b) 78.1 78.1 2021 Notes – 7.750%, due October 1, 2021 (b) 70.1 70.1 2022 Notes – 7.500%, due June 1, 2022 (b) 36.2 36.2 2023 Notes – 7.500%, due April 1, 2023 (b) 34.4 34.4 2023 Notes – 6.375%, due August 1, 2023 (b) 806.9 806.9 2024 Notes – 8.750%, due December 15, 2024 (b) 105.8 105.8 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (b) 100.0 100.0 Long-term debt prior to reclassification to liabilities subject to compromise 6,499.3 6,099.3 Less current portion (900.0 ) (500.0 ) Less amounts reclassified to liabilities subject to compromise (5,599.3 ) (5,599.3 ) Total long-term debt $ — $ — (a) Prior to the filing of the Chapter 11 Cases, if the maturity of the revolving line of credit was not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan would have become April 24, 2020; provided further, if the 2020 Notes had not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan would have become July 15, 2020. (b) Balances have been reclassified to liabilities subject to compromise because these obligations were under-collateralized as of the Petition Date of the Chapter 11 Cases and/or impaired based on the expected treatment of the creditor classes included in the PSA and the Plan. 3. Debt, Continued: Debtor-in-Possession Credit Facility - On the Petition Date, Windstream Holdings and Windstream Services entered into a commitment letter (as amended, the “DIP Commitment Letter”) dated as of February 25, 2019 with Citigroup Global Markets Inc. (together with Barclays Bank, PLC, Credit Suisse Loan Funding, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A., the “Arrangers”), pursuant to which the Arrangers or their affiliates committed to provide senior secured superpriority debtor-in-possession credit facilities in an aggregate principal amount of $1.0 billion , subject to conditions described therein. In connection with the Chapter 11 Cases and in accordance with the DIP Commitment Letter, Windstream Holdings and Windstream Services entered into a Superpriority Secured Debtor-in-Possession Credit Agreement, dated as of March 13, 2019 (the “DIP Credit Agreement”), by and among Windstream Services, as the borrower (the “Borrower”), Windstream Holdings, the other guarantors party thereto, the lenders party thereto (together with such other financial institutions from time to time party thereto, the “DIP Lenders”) and Citibank, N.A., as administrative agent and collateral agent (the “Agent”). The DIP Credit Agreement provides for $1.0 billion in superpriority secured debtor-in-possession credit facilities comprising of (i) a superpriority revolving credit facility in an aggregate amount of $500.0 million (the “Revolving Facility”) and (ii) a superpriority term loan facility in an aggregate principal amount of $500.0 million (the “Term Loan Facility” and, together with the Revolving Facility, the “DIP Facilities”), subject to the terms and conditions set forth therein. In March 2020, Windstream Services borrowed $400.0 million under the Revolving Facility to assist with working capital and other general corporate purposes during the coronavirus global pandemic. Accordingly, as of June 30, 2020 , $500.0 million was outstanding under the Term Loan Facility and $400.0 million was outstanding under the Revolving Facility. Considering letters of credit of $28.8 million and $63.5 million reserved for potential professional fees, the amount available for borrowing under the Revolving Facility was $7.7 million as of June 30, 2020 . The proceeds of loans extended under the DIP Facilities will be used for purposes permitted by orders of the Bankruptcy Court, including (i) for working capital and other general corporate purposes (ii) to pay transaction costs, professional fees and other obligations and expenses incurred in connection with the DIP Facilities, the Chapter 11 Cases and the transactions contemplated thereunder, and (iii) to pay adequate protection expenses, if any, to the extent set forth in any order entered by the Bankruptcy Court. The maturity date of the DIP Facilities is February 26, 2021. Loans under the Term Loan Facility and the Revolving Facility will bear interest, at the option of the Borrower, at (1) 1.50 percent plus a base rate of the highest of (i) Citibank, N.A.’s base rate, (ii) the Federal funds effective rate plus 1/2 of 1 percent and (iii) the one-month LIBOR plus 1.00 percent per annum; or (2) 2.50 percent plus LIBOR. From and after the Effective Date, a non-refundable unused commitment fee will accrue at the rate of 0.50 percent per annum on the daily average unused portion of the Revolving Facility (whether or not then available). The DIP Credit Agreement includes usual and customary negative covenants for debtor-in-possession loan agreements of this type, including covenants limiting Windstream Holdings’ and its subsidiaries’ 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 junior or pre-petition indebtedness, in each case subject to customary exceptions for debtor-in-possession loan agreements of this type. The DIP Credit Agreement 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, unstayed judgments in favor of a third party involving an aggregate liability in excess of $25.0 million, change of control, specified governmental actions having a material adverse effect or condemnation or damage to a material portion of the collateral. Certain bankruptcy-related events are also events of default, including, but not limited to, the dismissal by the Bankruptcy Court of any of the Chapter 11 Cases, the conversion of any of the Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code, the appointment of a trustee pursuant to Chapter 11 of the Bankruptcy Code, the final order approving the DIP Facilities failing to have been entered within 60 days after the Petition Date and certain other events related to the impairment of the DIP Lenders’ rights or liens granted under the DIP Credit Agreement. The foregoing description of the DIP Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the DIP Credit Agreement. 3. Debt, Continued: Senior Secured Credit Facility - Prior to the filing of the Chapter 11 Cases, the amended credit facility provided Windstream Services the ability to obtain incremental revolving or term loans in an unlimited amount subject to maintaining a maximum secured leverage ratio and other customary conditions, including obtaining commitments and pro forma compliance with financial maintenance covenants consisting of a maximum debt to consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratio and a minimum interest coverage ratio. In addition, Windstream Services could have requested extensions of the maturity date under any of its existing revolving or term loan facilities. Interest rates applicable to the Tranche B7 term loan were, at Windstream Services’ option, equal to either a base rate plus a margin of 2.25 percent per annum or LIBOR plus a margin of 3.25 percent per annum; however, LIBOR at no time could have been less than 0.75 percent . Interest on loans under Tranche B6 were equal to LIBOR plus a margin of 4.00 percent per annum, with LIBOR subject to a 0.75 percent floor. The Tranche B6 and B7 term loans were subject to quarterly amortization in an aggregate amount of approximately 0.25 percent of the initial principal amount of the loans, with the remaining balance payable at maturity. Revolving Line of Credit - Prior to the filing of the Chapter 11 Cases, under the amended senior secured credit facility, Windstream Services had the ability to obtain revolving loans and issue up to $50.0 million of letters of credit, which upon issuance reduced the amount available for other extensions of credit. Accordingly, the total amount outstanding under the letters of credit and the indebtedness incurred under the revolving line of credit could not exceed $1,250.0 million . Borrowings under the revolving line of credit were used for permitted acquisitions, working capital and other general corporate purposes of Windstream Services and its subsidiaries. Windstream Services paid a commitment fee on the unused portion of the commitments under the revolving credit facility that ranged from 0.40 percent to 0.50 percent per annum, depending on the debt to consolidated EBITDA ratio of Windstream Services and its subsidiaries. Revolving loans made under the credit facility were not subject to interim amortization and such loans were not required to be repaid prior to April 24, 2020, other than to the extent the outstanding borrowings exceed the aggregate commitments under the revolving credit facility. Interest rates applicable to loans under the revolving line of credit were, at Windstream Services’ option, equal to either a base rate plus a margin ranging from 0.25 percent to 1.00 percent per annum or LIBOR plus a margin ranging from 1.25 percent to 2.00 percent per annum, based on the debt to consolidated EBITDA ratio of Windstream Services and its subsidiaries. Prior to the filing of the Chapter 11 Cases, Windstream Services borrowed $155.0 million under the revolving line of credit in its senior secured credit facility and retired $370.0 million of these borrowings during the period January 1, 2019 to February 24, 2019. During the first six months of 2019, the variable interest rate on the revolving line of credit ranged from 4.38 percent to 8.50 percent with a weighted average rate on amounts outstanding during the period of 7.23 percent . Following the filing of the Chapter 11 Cases, interest rates applicable to the revolving line of credit, Tranche B6 term loan and Tranche B7 term loan were converted from LIBOR to the alternate base rate, the effects of which increased interest rates 2.00 percent for borrowings under the senior secured credit facility. The Bankruptcy Court also approved an additional 2.00 percent default rate applicable to borrowings under the senior secured credit facility. As of June 30, 2020 , interest rates applicable to the revolving line of credit, Tranche B6 term loan and Tranche B7 term loan were 8.50 percent , 10.50 percent and 9.75 percent , respectively. All payments to holders of debt obligations under the senior secured credit facility, senior first lien notes and Midwest Bonds remitted subsequent to the filing of the Chapter 11 Cases have been classified as interest expense in the accompanying consolidated statements of operations. Interest Expense Interest expense was as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Interest expense - debt $ 69.1 $ 82.9 $ 145.2 $ 176.7 Interest expense - leaseback of real estate contributed to pension plan 1.6 1.5 3.1 3.1 Impact of interest rate swaps (3.3 ) (3.0 ) (6.6 ) (5.9 ) Interest on finance leases and other 0.6 1.4 1.4 2.3 Less capitalized interest expense (2.0 ) (2.0 ) (4.0 ) (3.5 ) Total interest expense $ 66.0 $ 80.8 $ 139.1 $ 172.7 |
Derivatives_ (Notes)
Derivatives: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives: Prior to the filing of the Chapter 11 Cases, Windstream Services was party to six pay fixed, receive variable interest rate swap agreements. Windstream Services had designated each of the six swaps as cash flow hedges of the interest rate risk inherent in borrowings outstanding under its senior secured credit facility due to changes in the LIBOR benchmark interest rate. All of the swaps hedged the probable variable cash flows which extended up to one year beyond the maturity of certain components of Windstream Services’ variable rate debt. Windstream Services expected to extend or otherwise replace those components of its debt with variable rate debt. Prior to the filing of the Chapter 11 Cases, the variable rate received on the six swaps was based on one-month LIBOR and reset on the seventeenth day of each month. The maturity date for all six interest rate swap agreements was October 17, 2021 and the total notional value of the swaps was $1,375.0 million . The average fixed interest paid on the swaps ranged from 1.1275 percent to 2.984 percent . All of the interest rate swaps were recognized at fair value as either assets or liabilities, depending on the rights or obligations under the related contracts. Due to previous refinancing transactions, Windstream Services had de-designated certain interest rate swaps and froze the accumulated net losses in accumulated other comprehensive income related to those swaps. The frozen balance is amortized from accumulated other comprehensive income to interest expense over the remaining life of the original swaps. The agreements with each of the derivative counterparties contained cross-default provisions, whereby if Windstream Services were to default on certain indebtedness, it could also be declared in default on its derivative obligations and be required to net settle any outstanding derivative liability positions with its counterparties at the swap termination value, including accrued interest and excluding any credit valuation adjustment to measure non-performance risk. Following the adverse court ruling from Judge Furman, each of the bank counterparties exercised their rights to terminate the interest rate swap agreements. Accordingly, Windstream Services ceased the application of hedge accounting for all six interest rate swaps, effective February 15, 2019. For those swaps in an asset position at the date of termination as determined by the counterparty, Windstream Services received cash proceeds of $9.6 million to settle the derivative contracts. For swaps in a liability position at the date of termination as determined by the counterparty, the interest rate swaps were adjusted to their termination value of $6.1 million and reclassified as liabilities subject to compromise in the accompanying consolidated balance sheets. Upon the discontinuance of hedge accounting, Windstream Services concluded that it was still probable that the hedged transactions (future interest payments) will occur. As a result, the accumulated net gains related to the interest rate swaps recorded in accumulated other comprehensive income as of February 15, 2019 were frozen and are being amortized from accumulated other comprehensive income to interest expense over the contractual remaining life of the interest rate swaps. Set forth below is information related to interest rate swap agreements: (Millions, except for percentages) June 30, December 31, De-designated portion, unamortized value: Liabilities subject to compromise $ 6.1 $ 6.1 Accumulated other comprehensive income $ 17.0 $ 23.6 Changes in derivative instruments were as follows for the six-month period ended June 30 : (Millions) 2020 2019 Changes in fair value, net of tax $ — $ (2.4 ) Amortization of net unrealized gains on de-designated interest rate swaps, net of tax $ (4.9 ) $ (3.1 ) As of June 30, 2020 , Windstream Services expects to recognize net gains of $9.8 million , net of taxes, in interest expense during the next twelve months related to the unamortized value of the de-designated portion of its terminated interest rate swap agreements. |
Fair Value Measurements_ (Notes
Fair Value Measurements: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements: | Fair Value Measurements: Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Authoritative guidance defines the following three tier hierarchy for assessing the inputs used in fair value measurements: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 – Unobservable inputs The highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority is given to unobservable inputs (level 3 measurement). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of fair value of assets and liabilities and their placement within the fair value hierarchy levels. Our non-financial assets and liabilities, including property, plant and equipment, goodwill, intangible assets and asset retirement obligations, are measured at fair value on a non-recurring basis. No event occurred during the six-month period ended June 30, 2020 requiring our non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash, cash equivalents, restricted cash, accounts receivable, accounts payable, and debt. These financial instruments are measured at fair value on a recurring basis. Except for debt, the carrying amount of our other financial instruments were estimated by management to approximate fair value due to the relatively short period of time to maturity for those instruments. In calculating the fair value of Windstream Services’ debt, the fair value of the debentures and notes was calculated based on quoted market prices of the specific issuances in an active market when available. The fair value of the other debt obligations was estimated based on appropriate market interest rates applied to the debt instruments. In calculating the fair value of the Windstream Holdings of the Midwest, Inc. notes, an appropriate market price of similar instruments in an active market considering credit quality, nonperformance risk and maturity of the instrument was used. The fair value of debt was as follows: (Millions) June 30, December 31, Not Recorded at Fair Value in the Financial Statements: (a) Debt, including current portion - Level 2: Included in current portion of long-term debt $ 766.4 $ 500.0 Included in liabilities subject to compromise $ 2,051.1 $ 3,676.1 (a) Recognized at carrying value of $6,499.3 million and $6,099.3 million in debt, including current portion, and liabilities subject to compromise and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of June 30, 2020 and December 31, 2019 , respectively. We do not have any assets or liabilities measured for purposes of the fair value hierarchy at fair value using significant unobservable inputs (Level 3). There were no transfers within the fair value hierarchy during the six-month period ended June 30, 2020 . |
Revenues_ Revenues (Notes)
Revenues: Revenues (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues: We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of equipment to customers and contractors. We also earn revenues from leasing arrangements, federal and state universal service funds and other regulatory-related sources and activities. Accounts Receivable – Accounts receivable principally consist of amounts billed and currently due from customers and are generally unsecured and due within 30 days. The amounts due are stated at their net estimated realizable value. We maintain an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. As discussed in Note 1, the allowance is based upon an assessment of historical collection experience and the age of outstanding receivables. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-off, we must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled revenues related to communication services and product sales of $31.6 million and $33.9 million at June 30, 2020 and December 31, 2019, respectively. Contract Balances – Contract assets include unbilled amounts, which result when revenue recognized exceeds the amount billed to the customer and the right to payment is not just subject to the passage of time. Contract assets principally consist of discounts and promotional credits given to customers. The current and noncurrent portions of contract assets are included in prepaid expenses and other and other assets, respectively, in the accompanying consolidated balance sheets. Contract liabilities consist of services billed in excess of revenue recognized. The changes in contract liabilities are primarily related to customer activity associated with services billed in advance, the receipt of cash payments and the satisfaction of our performance obligations. We classify these amounts as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of contract liabilities is included in advance payments while the noncurrent portion is included in other liabilities or liabilities subject to compromise. Contract assets and liabilities from contracts with customers were as follows at: (Millions) June 30, December 31, Contract assets (a) $ 45.0 $ 32.8 Contract liabilities (b) $ 159.4 $ 162.3 Revenues recognized included in the opening contract liability balance (c) $ 136.6 $ 161.6 (a) Included $26.3 million and $20.8 million in prepaid expense and other and $18.7 million and $12.0 million in other assets as of June 30, 2020 and December 31, 2019, respectively. (b) Included $145.0 million and $148.0 million in advance payments, $10.8 million and $9.9 million in other liabilities, and $3.6 million and $4.4 million in liabilities subject to compromise as of June 30, 2020 and December 31, 2019, respectively. (c) Represents revenues recognized from the contract liability balance as of the beginning of the periods ended June 30, 2020 and 2019, respectively. Remaining Performance Obligations – Our remaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. Certain contracts provide customers the option to purchase additional services or usage-based services. The fees related to the additional services or usage-based services are recognized when the customer exercises the option, typically on a month-to-month basis. In determining the transaction price allocated, we do not include these non-recurring fees and estimates for usage, nor do we consider arrangements with an original expected duration of less than one year. Remaining performance obligations reflect recurring charges billed, adjusted for discounts and promotional credits and revenue adjustments. At June 30, 2020 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.4 billion for contracts with original expected durations of more than one year remaining. We expect to recognize approximately 22 percent , 34 percent and 24 percent of our remaining performance obligations as revenue during the remainder of 2020, 2021 and 2022, respectively, with the remaining balance thereafter. 6. Revenues, Continued: Revenue by Category – We disaggregate our revenue from contracts with customers by product type for each of our segments, as we believe it best depicts the nature, amount and timing of our revenue. Revenues recognized from contracts with customers by customer and product type were as follows: Three Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 242.3 $ — $ — $ 242.3 Voice-only 22.7 — — 22.7 Video and miscellaneous 6.6 — — 6.6 Core (a) — 238.9 — 238.9 Strategic (b) — 66.1 — 66.1 Legacy (c) — 103.2 — 103.2 Small business 68.9 — — 68.9 Wholesale (d) 57.4 — 66.5 123.9 Switched access (e) 5.8 — 4.8 10.6 Other (f) — 112.6 — 112.6 Service revenues from contracts with customers 403.7 520.8 71.3 995.8 Product and fiber sales 14.3 5.2 1.2 20.7 Total revenue from contracts with customers 418.0 526.0 72.5 1,016.5 Other service revenues (g) 98.1 56.5 14.2 168.8 Total revenues and sales $ 516.1 $ 582.5 $ 86.7 $ 1,185.3 6. Revenues, Continued: Six Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 482.4 $ — $ — $ 482.4 Voice-only 46.0 — — 46.0 Video and miscellaneous 14.5 — — 14.5 Core (a) — 488.3 — 488.3 Strategic (b) — 130.0 — 130.0 Legacy (c) — 207.9 — 207.9 Small business 140.0 — — 140.0 Wholesale (d) 116.3 — 132.7 249.0 Switched access (e) 11.2 — 10.4 21.6 Other (f) — 224.5 — 224.5 Service revenues from contracts with customers 810.4 1,050.7 143.1 2,004.2 Product and fiber sales 28.0 12.8 1.9 42.7 Total revenue from contracts with customers 838.4 1,063.5 145.0 2,046.9 Other service revenues (g) 196.2 116.3 26.8 339.3 Total revenues and sales $ 1,034.6 $ 1,179.8 $ 171.8 $ 2,386.2 6. Revenues, Continued: Three Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 239.6 $ — $ — $ 239.6 Voice-only 28.1 — — 28.1 Video and miscellaneous 10.1 — — 10.1 Core (a) — 296.9 — 296.9 Strategic (b) — 54.8 — 54.8 Legacy (c) — 125.8 — 125.8 Small business 75.6 — — 75.6 Wholesale (d) 51.6 — 69.8 121.4 Switched access (e) 6.2 — 7.6 13.8 Other (f) — 134.8 — 134.8 Service revenues from contracts with customers 411.2 612.3 77.4 1,100.9 Product and fiber sales 8.0 8.3 — 16.3 Total revenue from contracts with customers 419.2 620.6 77.4 1,117.2 Other service revenues (g) 97.5 61.1 10.7 169.3 Total revenues and sales $ 516.7 $ 681.7 $ 88.1 $ 1,286.5 6. Revenues, Continued: Six Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 479.5 $ — $ — $ 479.5 Voice-only 56.7 — — 56.7 Video and miscellaneous 20.2 — — 20.2 Core (a) — 606.3 — 606.3 Strategic (b) — 103.6 — 103.6 Legacy (c) — 258.4 — 258.4 Small business 152.8 — — 152.8 Wholesale (d) 103.1 — 143.6 246.7 Switched access (e) 12.5 — 15.1 27.6 Other (f) — 275.3 — 275.3 Service revenues from contracts with customers 824.8 1,243.6 158.7 2,227.1 Product and fiber sales 16.0 18.7 — 34.7 Total revenue from contracts with customers 840.8 1,262.3 158.7 2,261.8 Other service revenues (g) 197.5 125.8 22.0 345.3 Total revenues and sales $ 1,038.3 $ 1,388.1 $ 180.7 $ 2,607.1 (a) Core revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance, and managed services. (b) Strategic revenues consist of Software Defined Wide Area Network (“SD-WAN”), Unified Communications as a Service (“UCaaS”), OfficeSuite©, and associated network access products and services. (c) Legacy revenues consist of Time Division Multiplexing (“TDM”) voice and data services. (d) Wholesale revenues primarily include revenues from providing special access circuits, fiber connections, data transport and wireless backhaul services. (e) Switched access revenues include usage sensitive revenues from long-distance companies and other carriers for access to our network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for use of our network facilities. (f) Other revenues primarily consist of administrative service fees, subscriber line charges, and non-recurring usage-based long-distance revenues. (g) Other service revenues primarily include end user surcharges, CAF – Phase II funding, frozen federal USF, state USF, and access recovery mechanism (“ARM”) support and lease revenue. 6. Revenues, Continued: Deferred Commissions and Other Costs to Fulfill a Contract – Direct incremental costs of obtaining a contract, consisting of sales commissions and certain costs associated with activating services, including costs to develop customized solutions and provision services, are deferred and recognized as an operating expense using a portfolio approach over the estimated life of the customer, which ranges from 18 to 36 months. Determining the amount of costs to fulfill requires judgment. In determining costs to fulfill, consideration is given to periodic time studies, management estimates and statistics from internal information systems. Collectively, deferred commissions and other costs to fulfill a contract are referred to as deferred contract costs. We classify deferred contract costs as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of deferred contract costs are included in prepaid expenses and other and other assets, respectively, in the accompanying consolidated balance sheets. Deferred contract costs totaled $55.5 million at June 30, 2020 , of which $37.6 million and $17.9 million were included in prepaid expenses and other and other assets, respectively. At December 31, 2019, deferred contract costs were $53.8 million , of which $34.9 million and $18.9 million were included in prepaid expenses and other and other assets, respectively. Amortization of deferred contract costs was $11.8 million and $23.2 million for the three and six-month periods ended June 30, 2020 , compared to $10.0 million and $19.9 million for the three and six-month periods ended June 30, 2019 . There was no impairment loss recognized for the three and six-month periods ended June 30, 2020 and 2019 , related to deferred contract costs. |
Employee Benefit Plans_ (Notes)
Employee Benefit Plans: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans and Postretirement Benefits Other Than Pensions: | Employee Benefit Plans: We maintain a non-contributory qualified defined benefit pension plan. Future benefit accruals for all eligible nonbargaining employees covered by the pension plan have ceased. We also maintain supplemental executive retirement plans that provide unfunded, non-qualified supplemental retirement benefits to a select group of management employees. The components of pension benefit (income) expense, including provision for executive retirement agreements, were as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Benefits earned during the period (a) $ 1.0 $ 0.9 $ 2.0 $ 1.5 Interest cost on benefit obligation (b) 9.4 11.1 18.8 22.0 Net actuarial loss (b) 2.9 7.7 2.9 7.7 Amortization of prior service credit (b) (0.2 ) (0.2 ) (0.4 ) (0.5 ) Expected return on plan assets (b) (14.6 ) (12.4 ) (29.3 ) (24.8 ) Net periodic benefit (income) expense $ (1.5 ) $ 7.1 $ (6.0 ) $ 5.9 (a) Included in cost of services and selling, general and administrative expense. (b) Included in other income (expense), net. For 2020, the expected employer contributions for pension benefits consists of $52.8 million to the qualified pension plan to satisfy our remaining 2019 and 2020 funding requirements and $0.9 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. During the first quarter of 2020, we made our required quarterly employer contributions totaling $3.4 million in cash. The remaining required quarterly and annual employer contributions due in 2020 will be funded no later than December 31, 2020, as permitted under certain relief provisions included in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Comparatively in the first six months of 2019, we made our required quarterly employer contributions to the qualified pension plan of $6.4 million in cash. 7. Employee Benefit Plans, Continued: We also sponsor an employee savings plan under section 401(k) of the Internal Revenue Code, which covers substantially all salaried employees and certain bargaining unit employees. Windstream matches on an annual basis up to a maximum of 4.0 percent of employee pre-tax contributions to the plan for employees contributing up to 5.0 percent of their eligible pre-tax compensation. Excluding amounts capitalized, we recorded expenses of $6.4 million and $13.7 million in the three and six-month periods ended June 30, 2020 , as compared to $6.5 million and $13.5 million for the same periods in 2019 related to our matching contribution under the employee savings plan, which was included in cost of services and selling, general and administrative expenses in our consolidated statements of operations. Effective January 1, 2020, the 401(k) plan was amended such that the employer matching contribution is calculated and funded in cash to the plan each pay period with an annual true-up to be made as soon as administratively possible after the end of the year. During the first six months of 2020, we contributed $12.6 million in cash to fund the required 2020 employer matching contributions to date and we also contributed $25.7 million in cash to the plan in March 2020 for the 2019 annual matching contribution. We intend to fund the remaining employer matching contributions due in 2020 using cash. Comparatively, in March 2019, we contributed $26.4 million in cash to the plan for the 2018 annual matching contribution. |
Restructuring and Other Charges
Restructuring and Other Charges: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Merger, Integration and Other Costs and Restructuring Charges: | Restructuring and Other Charges: Restructuring charges are primarily incurred as a result of evaluations of our operating structure. Among other things, these evaluations explore opportunities to provide greater flexibility in managing and financing existing and future strategic operations, for task automation and the balancing of our workforce based on the current needs of our customers. Severance and other employee benefit-related charges are included in restructuring charges. Other charges primarily consist of incremental costs incurred in integrating the operations of an acquired business. During the first half of 2020 and 2019, we completed restructurings of our workforce to improve our overall cost structure and gain operational efficiencies. In undertaking these efforts, we eliminated approximately 525 positions and incurred related severance and employee benefit costs of $12.0 million in the first half of 2020 and we eliminated approximately 425 positions and incurred $16.0 million in severance and employee benefit costs in the first half of 2019. A summary of restructuring and other charges recorded was as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Restructuring charges $ 5.6 $ 6.1 $ 12.0 $ 16.6 Costs related to merger with EarthLink (a) — 0.6 — 4.0 Other — 0.2 — 1.4 Total restructuring and other charges $ 5.6 $ 6.9 $ 12.0 $ 22.0 (a) For the three and six-month periods ended June 30, 2019 , these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $0.4 million and $3.3 million , respectively, and other miscellaneous expenses of $0.2 million and $0.7 million , respectively. After giving consideration to tax benefits on deductible items, restructuring and other charges increased our reported net loss by $4.2 million and $9.0 million for the three and six-month periods ended June 30, 2020 , as compared to $5.2 million and $16.5 million for the same periods in 2019 . The following is a summary of the activity related to the liabilities associated with restructuring activities at June 30, 2020 : (Millions) Balance at December 31, 2019 $ 8.1 Severance and benefit costs incurred in period 12.0 Cash outlays during the period (14.7 ) Balance at June 30, 2020 $ 5.4 Payments of these liabilities will be funded through operating cash flows. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income: Accumulated other comprehensive income balances, net of tax, were as follows: (Millions) June 30, December 31, Pension and postretirement plans $ 3.8 $ 5.0 Unrealized net gains on de-designated interest rate swaps 12.7 17.6 Accumulated other comprehensive income $ 16.5 $ 22.6 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Unrealized Net Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2019 $ 17.6 $ 5.0 $ 22.6 Other comprehensive income before reclassifications — (0.7 ) (0.7 ) Amounts reclassified from other accumulated comprehensive income (a) (4.9 ) (0.5 ) (5.4 ) Balance at June 30, 2020 $ 12.7 $ 3.8 $ 16.5 (a) See separate table below for details about these reclassifications. Reclassifications out of accumulated other comprehensive income were as follows: (Millions) Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Three Months Ended Six Months Ended Affected Line Item in the Consolidated Statements of Operations 2020 2019 2020 2019 Interest rate swaps: Amortization of net unrealized gains on de-designated interest rate swaps $ (3.3 ) $ (3.0 ) $ (6.6 ) $ (4.2 ) Interest expense (3.3 ) (3.0 ) (6.6 ) (4.2 ) Loss before income taxes 0.8 0.8 1.7 1.1 Income tax (expense) benefit (2.5 ) (2.2 ) (4.9 ) (3.1 ) Net loss Pension and postretirement plans: Amortization of net actuarial loss 0.1 — 0.1 — Amortization of prior service credits (0.3 ) (0.3 ) (0.6 ) (0.7 ) (a) (0.2 ) (0.3 ) (0.5 ) (0.7 ) Loss before income taxes — — — 0.1 Income tax (expense) benefit (0.2 ) (0.3 ) (0.5 ) (0.6 ) Net loss Total reclassifications for the period, net of tax $ (2.7 ) $ (2.5 ) $ (5.4 ) $ (3.7 ) Net loss (a) Included in the computation of net periodic benefit expense for the period. |
Loss Per Share_ Loss Per Share
Loss Per Share: Loss Per Share Text Block (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Loss per Share: We compute basic loss per share by dividing net loss applicable to common shares by the weighted average number of common shares outstanding during each period. A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows: Three Months Ended Six Months Ended (Millions, except per share amounts) 2020 2019 2020 2019 Basic and diluted loss per share: Numerator: Net loss attributable to common shares $ (162.4 ) $ (544.1 ) $ (264.0 ) $ (2,854.4 ) Denominator: Basic and diluted shares outstanding Weighted average basic and diluted shares outstanding 42.7 42.6 42.7 42.6 Basic and diluted loss per share: Net loss ($3.80 ) ($12.76 ) ($6.18 ) ($66.98 ) For the three and six-month periods ended June 30, 2020 and 2019, we excluded from the computation of diluted shares the effect of restricted stock units and options to purchase shares of our common stock because their inclusion would have an anti-dilutive effect due to our reported net losses. We had 0.3 million restricted stock units and 0.8 million stock options outstanding as of June 30, 2020 , compared to 0.5 million restricted stock units and 1.0 million stock options outstanding at June 30, 2019 . |
Segment Information_ Segment In
Segment Information: Segment Information (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information: Our business operations are organized into three segments: Kinetic, Enterprise and Wholesale. The Kinetic business unit primarily serves customers in markets in which we are the incumbent local exchange carrier (“ILEC”) and provides services over network facilities operated by us. The Enterprise and Wholesale business units primarily serve customers in markets in which we are a competitive local exchange carrier (“CLEC”) and provide services over network facilities primarily leased from other carriers. For financial reporting purposes, our segments consist of: • Kinetic - We manage as one business our residential, business, and wholesale operations in those markets in which we are the ILEC due to the similarities with respect to service offerings, marketing strategies and customer service delivery. Residential customers can bundle voice, high-speed Internet and video services, to provide one convenient billing solution and receive bundle discounts. We offer a wide range of advanced Internet, voice, and web conferencing products to our business customers. These services are equipped to deliver high-speed Internet with competitive speeds, value added services to enhance business productivity and options to bundle services for a global business solution to meet our business customer needs. Products and services offered to business customers include traditional local and long-distance voice services, high-speed Internet services, and value-added services such as security and online back-up, which are delivered primarily over network facilities operated by us. We offer consumer video services through relationships with DirecTV and Dish Network LLC, and we also own and operate cable television franchises in some of our service areas. We offer Kinetic, a premium broadband and video entertainment offering in several of our markets. Our wholesale services are focused on providing network bandwidth to other telecommunications carriers and network operators. These services include special access services, which provide access and network transport services to end users including Ethernet access up to 2 Gbps, traditional TDM private line access and transport. Wholesale services also include fiber-to-the-tower connections to support the wireless backhaul market, and both Ethernet/dedicated Internet connections and broadband access services. The combination of these services allows Kinetic wholesale customers to provide voice and data services to their customers through the use of our network or in combination with their own networks. 11. Segment Information, Continued: • Enterprise - Products and services offered to our business customers include integrated voice and data services, which deliver voice and broadband services over a single Internet connection, data transport services, multi-site networking services which provide a fast and private connection between business locations, SD-WAN, which optimizes application performance, UCaaS, a next generation voice solution, as well as a variety of other data services, including cloud computing and collocation and managed services as an alternative to traditional information technology infrastructure. • Wholesale - Our wholesale operations are focused on providing network bandwidth to other telecommunications carriers, network operators, and content providers within CLEC markets. These services include network transport services to end users, Ethernet and Wave transport up to 100 Gbps, and dark fiber and colocation services. Wholesale services also include fiber-to-the-tower connections in CLEC markets to support the wireless backhaul market. In addition, we offer voice and data carrier services to other communications providers and to larger-scale purchasers of network capacity. The combination of these services allows wholesale customers to provide voice and data services to their customers through the use of our network or in combination with their own networks. We evaluate performance of the segments based on contribution margin or segment income, which is computed as segment revenues and sales less segment operating expenses. Segment revenues are based upon each customer’s classification to an individual segment and include all services provided to that customer. Segment revenues also include revenue from federal and state USF, CAF – Phase II support, funds received from federal access recovery mechanisms, revenues from providing switched access services, including usage-based revenues from long-distance companies and other carriers for access to our network to complete long-distance calls, reciprocal compensation received from wireless and other local connecting carriers for the use of network facilities, certain surcharges assessed to our customers, including billings for our required contributions to federal and state USF programs, and product sales to contractors. There are no differences between total segment revenues and sales and total consolidated revenues and sales. Segment expenses include specific expenses incurred as a direct result of providing services and products to segment customers; selling, general and administrative expenses that are directly associated with specific segment customers or activities; and certain allocated expenses which include network expenses, facilities expenses and other expenses, such as vehicle and real estate-related expenses. Operating expenses associated with regulatory and other revenues have also been assigned to our segments. We do not assign depreciation and amortization expense, goodwill impairment, restructuring and other charges, straight-line expense under the contractual arrangement with Uniti, share-based compensation, spend commitment penalties incurred under certain carrier discount plans, and reserves for funding denials from Universal Service Administrative Company (“USAC”) to our segments because these expenses are centrally managed and/or are not monitored by or reported to the chief operating decision maker (“CODM”) by segment. Similarly, certain costs related to centrally managed administrative functions, such as accounting and finance, information technology, network management, legal and human resources, are not assigned to our segments. Interest expense has also been excluded from segment operating results because we manage our financing activities on a total company basis and have not assigned any debt or lease obligations to the segments. Other income (expense), net, reorganization items, net, and income tax (expense) benefit are not monitored as a part of our segment operations and, therefore, these items also have been excluded from our segment operating results. Capital expenditures for network enhancements and information technology-related projects benefiting Windstream as a whole are presented as corporate/shared capital expenditures. Asset information by segment is not monitored or reported to the CODM and therefore has not been presented. Substantially all of our customers are located in the United States, and we do not have any single customer that provides more than 10 percent of our total consolidated revenues and sales. 11. Segment Information, Continued: The following table summarizes our segment results: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Kinetic: Revenues and sales $ 516.1 $ 516.7 $ 1,034.6 $ 1,038.3 Costs and expenses 225.6 213.4 442.3 426.2 Segment income $ 290.5 $ 303.3 $ 592.3 $ 612.1 Enterprise: Revenues and sales $ 582.5 $ 681.7 $ 1,179.8 $ 1,388.1 Cost and expenses 463.6 542.5 947.8 1,116.3 Segment income $ 118.9 $ 139.2 $ 232.0 $ 271.8 Wholesale: Revenues and sales 86.7 88.1 $ 171.8 $ 180.7 Costs and expenses 24.7 23.1 47.4 53.0 Segment income 62.0 65.0 $ 124.4 $ 127.7 Total segment revenues and sales $ 1,185.3 $ 1,286.5 $ 2,386.2 $ 2,607.1 Total segment costs and expenses 713.9 779.0 1,437.5 1,595.5 Total segment income $ 471.4 $ 507.5 $ 948.7 $ 1,011.6 Capital expenditures by segment were as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Kinetic $ 151.3 $ 105.7 $ 284.3 $ 204.1 Enterprise 24.1 36.5 50.8 78.6 Wholesale 9.2 5.5 16.1 10.7 Corporate/shared (a) 63.1 66.9 128.9 114.0 Total $ 247.7 $ 214.6 $ 480.1 $ 407.4 (a) Represents capital expenditures not directly assigned to the segments and primarily consist of capital outlays for network enhancements and information technology-related projects benefiting Windstream as a whole. 11. Segment Information, Continued: The following table reconciles segment income to consolidated net loss: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Total segment income $ 471.4 $ 507.5 $ 948.7 $ 1,011.6 Depreciation and amortization (219.9 ) (276.0 ) (452.5 ) (547.5 ) Goodwill impairment — (373.3 ) — (2,712.3 ) Restructuring and other charges (5.6 ) (6.9 ) (12.0 ) (22.0 ) Straight-line expense under contractual arrangement with Uniti (168.3 ) (168.9 ) (337.1 ) (337.7 ) Other unassigned operating expenses (a) (52.8 ) (105.3 ) (108.2 ) (196.3 ) Other income (expense), net 1.7 (9.2 ) 7.4 (10.2 ) Reorganization items, net (114.4 ) (85.4 ) (154.9 ) (190.3 ) Interest expense (66.0 ) (80.8 ) (139.1 ) (172.7 ) Income tax (expense) benefit (8.5 ) 54.2 (16.3 ) 323.0 Net loss $ (162.4 ) $ (544.1 ) $ (264.0 ) $ (2,854.4 ) (a) Included in these expenses are spend commitment penalties incurred under certain carrier discount plans of $0.8 million and $1.2 million three and six-month periods ended June 30, 2020 , as compared to $30.3 million and $58.9 million for the same periods in 2019. For both periods of 2019, these expenses include a reserve of $19.7 million for a funding denial from USAC pursuant to the years 2012 to 2017 related to a large customer participating in the Universal Service Rural Healthcare Telecommunications Program. |
Commitments and Contingencies_
Commitments and Contingencies: (Notes) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies: | Commitments and Contingencies: Litigation In a notice letter received September 22, 2017 (the “Original Notice”), Aurelius Capital Master, Ltd. ("Aurelius") asserted an alleged default of certain senior unsecured notes, the 6.375 percent Senior Notes due 2023 of Windstream Services, based on alleged violations of the associated indenture (the "2013 Indenture"). Aurelius primarily alleged that Windstream Services violated the 2013 Indenture by executing the spin-off of Uniti in April 2015 that, according to Aurelius, constituted a Sale and Leaseback Transaction that was prohibited under Section 4.19 of the 2013 Indenture. In light of the allegations in the Original Notice, Windstream Services filed suit against U.S. Bank N.A., the Indenture Trustee (the “Trustee”), in Delaware Chancery Court seeking a declaration that it had not violated any provision of the 2013 Indenture and injunctive relief. On October 12, 2017, the Trustee filed suit in the Southern District of New York seeking a declaration that defaults had occurred. Windstream Services filed an answer and affirmative defenses in response to the Trustee’s complaint the following day, as well as counterclaims against the Trustee and Aurelius for declaratory relief. The Delaware action was subsequently dismissed. On October 18, 2017, Windstream Services launched debt exchange offers with respect to its senior notes, including the 6.375 percent notes, and on October 31, 2017, learned that holders representing the requisite percentage of the 6.375 percent notes needed to waive the defaults alleged in the Original Notice would be received. On November 6, 2017, Windstream Services and the Trustee executed a supplemental indenture, and new 6.375 percent notes were issued, which gave effect to the waivers and consents for the 6.375 percent notes. During the fourth quarter of 2017, Windstream Services also completed consent solicitations with respect to each of its series of outstanding notes, pursuant to which noteholders agreed to waive alleged defaults with respect to the transactions related to the spin-off of Uniti and amend the indentures governing such notes to give effect to such waivers and amendments. 12. Commitments and Contingencies, Continued: After a trial in July 2018, on February 15, 2019, Judge Jesse Furman of United States District Court for the Southern District of New York issued certain findings of fact and conclusions of law regarding the Spin-Off, invalidating the 2017 exchange and consent transactions, and found that the trustee under the 2013 Indenture and/or Aurelius was entitled to a judgment: • that, in effecting the Spin-Off, we failed to comply with the covenants set forth in Section 4.19 of the 2013 Indenture restricting certain sale and leaseback transactions; • that our breaches of Section 4.19 constitute a “Default” under 2013 Indenture; • that the 6.375 percent notes issued in the 2017 exchange and consent transactions do not constitute “Additional Notes” under the 2013 Indenture; • that the notice of default with respect to the foregoing breaches was valid and effective; • that those breaches ripened into “Events of Default” as defined in the 2013 Indenture on December 6, 2017; • that the notice of acceleration with respect to those “Events of Default” was valid and effective, and all principal together with all accrued and unpaid interest on the notes became immediately due and payable as of that date; • enjoining us from taking any further action to issue new notes in contravention of, or to otherwise violate, the 2013 Indenture; • awarding Aurelius a money judgment in an amount of $310,459,959.10 plus interest from and after July 23, 2018; and • dismissing our counterclaims with prejudice. On March 1, 2019, Judge Furman issued an Order that he cannot enter a final judgment due to the Automatic Stay imposed by the filing of the Chapter 11 Cases. The matter has been administratively closed subject to the right of any party to move to reopen it within twenty-one (21) days of the conclusion of the Chapter 11 Cases or the lifting or modification of the automatic stay. Windstream Holdings, its current and former directors, and certain of its executive officers are the subject of shareholder-related lawsuits arising out of the merger with EarthLink Holdings Corp. in February 2017. Two putative shareholders have filed separate purported shareholder class action complaints in federal court in Arkansas and state court in Georgia, captioned Murray v. Earthlink Holdings Corp., et. al., and Yadegarian v. Windstream Holdings, Inc., et. al., respectively. Additionally, two separate shareholder derivative actions were filed during the fourth quarter of 2018 in Arkansas federal court on behalf of Windstream Holdings, Inc., styled Cindy Graham v. Wells, et. al., and Larry Graham v. Thomas, et. al. All of the complaints contain similar assertions and claims of alleged securities law violations and breaches of fiduciary duties related to the disclosures in the joint proxy statement/prospectus soliciting shareholder approval of the merger, which the plaintiffs allege were inadequate and misleading. Suggestions of Bankruptcy and Notices of the Automatic Stay were filed with regard to the Murray, Yadegarian and Graham cases, but the Plaintiffs challenged the applicability of the stay with regard to non-debtor defendants. Windstream filed an adversary proceeding motion with the Bankruptcy Court regarding this challenge. At a hearing on Windstream’s adversary proceeding motion conducted on June 17, 2019, the Bankruptcy court agreed to lift the automatic stay temporarily to allow the federal court presiding over the Murray case to hear arguments regarding Windstream’s motion to dismiss because it was procedural in nature. Oral arguments on the motion to dismiss were held August 22, 2019, but a ruling has not yet been issued by the federal court. In the Yadegarian case, Windstream agreed to lift the automatic stay for the limited purpose of allowing the state court to rule on pending Motions to Stay or Dismiss filed by Windstream. Both motions were heard on November 18, 2019, with the state court granting the Motion to Stay, pending a decision in the Murray case. While the plaintiffs in the Murray case filed a proof of claim for an undetermined monetary amount, neither the plaintiffs in the Yadegarian nor Graham cases submitted proof of claims. We believe that we have valid defenses for each of the lawsuits, and we plan to vigorously defend the pursuit of all matters. While the ultimate resolution of the matters is not currently predictable, if there is an adverse ruling in any of these matters, the ruling could constitute a material adverse outcome on the future consolidated results of our income, cash flows, or financial condition. 12. Commitments and Contingencies, Continued: Windstream did not file a Suggestion of Bankruptcy as a result of the filing of the Chapter 11 cases with regard to this matter as it was determined it would fall under a regulatory exception and is precluded from the automatic stay. Other Matters Windstream and one of its Enterprise customers entered into an agreement in which Windstream provided communication services to several of the customer’s locations. The majority of funding for the services was administered by USAC pursuant to the Universal Service Rural Health Care Telecommunications Program which offers reduced rates for broadband and telecommunications services to rural health care facilities. In March 2017, USAC issued a funding denial to the customer on the basis that certain rules of the FCC were violated with the selection of Windstream as the service provider. Due to an alleged conflict of interest created by a third-party Windstream channel partner that acted as a consultant for the customer regarding the agreement, USAC asserted that Windstream’s selection was not based upon a fair and open competitive bidding process. USAC’s denial addressed accrued funding of approximately $16.6 million , as well as funding of approximately $6.0 million previously remitted to us. Windstream, along with the customer, appealed the denial; USAC rejected the appeal on June 29, 2018, upholding its previous denial of funding. Windstream appealed the denial to the FCC in August 2018. The FCC has yet to rule on the appeal and timing of a decision by the FCC is unknown. We recorded a reserve for the funding denial from USAC during the second quarter of 2019, and as a result, we have no additional loss exposure related to this matter. Windstream did not file a Suggestion of Bankruptcy as a result of the filing of the Chapter 11 Cases with regard to this matter as it was determined it falls under a regulatory exception and is precluded from the automatic stay. USAC filed a proof of claim in the Chapter 11 Cases for approximately $6.0 million , reflecting the amount of funding previously remitted to Windstream as referenced above; Windstream has filed an objection to this proof of claim. We currently are involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in our assumptions or the effectiveness of our strategies related to these proceedings. Additionally, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on our financial condition or results of operations. |
Preparation of Interim Financ_2
Preparation of Interim Financial Statements: Organization and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. Certain information and footnote disclosures have been condensed or omitted in accordance with those rules and regulations. The accompanying consolidated balance sheet as of December 31, 2019 , was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). In our opinion, these financial statements reflect all adjustments that are necessary for a fair statement of results of operations and financial condition for the interim periods presented including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. For a more complete discussion of significant accounting policies and certain other information, this report should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 , which was filed with the SEC on May 19, 2020 . Windstream Holdings and its domestic subsidiaries, including Windstream Services, file a consolidated federal income tax return. As such, Windstream Services and its subsidiaries are not separate taxable entities for federal and certain state income tax purposes. In instances when Windstream Services does not file a separate return, income taxes as presented within the accompanying consolidated financial statements attribute current and deferred income taxes of Windstream Holdings to Windstream Services and its subsidiaries in a manner that is systematic, rational and consistent with the asset and liability method. Income tax provisions presented for Windstream Services and its subsidiaries are prepared under the “separate return method.” The separate return method represents a hypothetical computation assuming that the reported revenue and expenses of Windstream Services and its subsidiaries were incurred by separate taxable entities. The preparation of financial statements, in accordance with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements, including the potential impacts arising from the COVID-19 global pandemic. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. 1. Preparation of Interim Financial Statements, Continued: There are no significant differences between the consolidated results of operations, financial condition, and cash flows of Windstream Holdings and those of Windstream Services other than for certain expenses incurred directly by Windstream Holdings principally consisting of audit, legal and board of director fees, common stock listing fees, other shareholder-related costs, income taxes, common stock activity, and payables from Windstream Services to Windstream Holdings. Earnings per share data has not been presented for Windstream Services because that entity has not issued publicly held common stock as defined in accordance with U.S. GAAP. Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Services. Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact net loss or comprehensive loss. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards Financial Instruments - Credit Losses – In June 2016, the Financial Accounting Standards Boards (“FASB”) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as modified by subsequently issued ASU Nos. 2018-19, 2019-11 and 2020-02 (collectively “ASU 2016-13”). This standard introduced a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This new standard also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 was effective for annual and interim reporting periods beginning after December 15, 2019. We adopted ASU 2016-13 using the modified retrospective transition method effective January 1, 2020. Upon adoption, we recorded a cumulative effect adjustment of approximately $1.8 million , net of tax, increasing our accumulated deficit. 1. Preparation of Interim Financial Statements, Continued: We estimate credit losses for trade receivables by aggregating similar customer types together to calculate expected default rates based on historical losses as a percentage of total aged revenue. These rates are then applied, on a monthly basis, to the outstanding balances staged by customer. In addition to continued evaluation of historical losses, ASU 2016-13 requires forward-looking information and forecasts to be considered in determining credit loss estimates. Our current forecast methodology assesses historical trends to project future losses and is not forward-looking for potential economic factors that would change the credit loss model. Therefore, historical trends continue to be the most accurate expectation of future losses as Windstream has defined rules around customers who can establish service. Our revenue and associated accounts receivable are based upon a recurring revenue structure whereby customers are billed in advance of service being provided and there is little month-to-month volatility in the composition of the customer base across all segments. We are actively monitoring the impacts of the COVID-19 global pandemic on our customers and their associated accounts receivable balances in order to adjust the allowance for credit losses accordingly. To date, no material risk has been identified, but management will continue to monitor and make adjustments, as necessary. Our accounts receivable balance consists of the following as of: (Millions) June 30, Accounts receivable $ 575.5 Less: Allowance for credit losses (47.7 ) Accounts receivable, net $ 527.8 Activity in our allowance for credit losses consists of the following: (Millions) Balance as of December 31, 2019 $ (48.2 ) Cumulative effect adjustment for ASU 2016-13 adoption (2.6 ) Additional allowance for estimated credit losses (12.8 ) Write-offs, net of recovered accounts 15.9 Balance as of June 30, 2020 $ (47.7 ) Implementation Costs in Cloud Computing Arrangements - In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). This standard requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The service element of a hosting arrangement will continue to be expensed as incurred. The guidance was effective for annual and interim reporting periods beginning after December 15, 2019 and may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. We adopted ASU 2018-15 on a prospective basis effective January 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Authoritative Guidance Income Taxes - In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The standard intends to simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by amending existing guidance to improve consistent application in financial statements. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, which is January 1, 2021 for us, with early adoption permitted. We are currently in the process of evaluating the impacts of this guidance on our consolidated financial statements and related income tax disclosures. |
Chapter 11 Filing, Going Conc_2
Chapter 11 Filing, Going Concern and Other Related Matters (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Reorganizations [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | Going Concern and Financial Reporting Our financial condition, the defaults under our debt agreements and contractual arrangement with Uniti, and the risks and uncertainties surrounding the Chapter 11 Cases, raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is contingent upon, among other factors, our ability to (i) successfully implement such plan of reorganization, (ii) address debt and other liabilities through the bankruptcy process, (iii) generate sufficient cash flow from operations, and (iv) obtain financing sources sufficient to meet our future obligations. As a result of the Chapter 11 Cases, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession pursuant to the Bankruptcy Code, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business pursuant to relief we obtained from the Bankruptcy Court, for amounts other than those reflected in the accompanying consolidated financial statements. In particular, such financial statements do not purport to show with respect to (i) assets, the realization value on a liquidation basis or availability to satisfy liabilities, (ii) liabilities arising prior to the Petition Date, the amounts that may be allowed for claims or contingencies, or the status and priority thereof, (iii) shareholders’ equity accounts, the effect of any changes that may be made in our capitalization, or (iv) operations, the effects of any changes that may be made in the underlying business. An effective plan of reorganization would likely cause material changes to the amounts currently disclosed in the accompanying consolidated financial statements. Further, the plan of reorganization could materially change the amounts and classifications reported in the consolidated historical financial statements, which do not give effect to any adjustments to the carrying value of assets or amounts of liabilities that might be necessary as a consequence of confirmation of a plan of reorganization. The accompanying consolidated financial statements do not include any direct adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable to continue as a going concern or as a consequence of the Chapter 11 Cases. Effective on February 25, 2019, we began to apply the provisions of ASC 852, which is applicable to companies under bankruptcy protection, and requires amendments to the presentation of key financial statement line items. ASC 852 requires that the financial statements for periods subsequent to the filing of the Chapter 11 Cases distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Revenues, expenses, realized gains and losses, and provisions for losses that can be directly associated with the reorganization and restructuring of the business must be reported separately as reorganization items, net in the consolidated statements of operations beginning February 25, 2019. The consolidated balance sheet must distinguish pre-petition liabilities subject to compromise from both those pre-petition liabilities that are not subject to compromise and from post-petition liabilities. Liabilities subject to compromise include pre-petition liabilities that are unsecured, under-secured or where it cannot be determined that the liabilities are fully secured. Liabilities that may be affected by a plan of reorganization must be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the plan of reorganization or negotiations with creditors. If there is uncertainty about whether a secured claim is under-secured, or will be impaired under the plan of reorganization, the entire amount of the claim is included with pre-petition claims in liabilities subject to compromise. In addition, cash used for reorganization items, net is disclosed. |
Revenues_ Accounting Policies (
Revenues: Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Receivable [Policy Text Block] | Accounts Receivable – Accounts receivable principally consist of amounts billed and currently due from customers and are generally unsecured and due within 30 days. The amounts due are stated at their net estimated realizable value. We maintain an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. As discussed in Note 1, the allowance is based upon an assessment of historical collection experience and the age of outstanding receivables. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-off, we must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled revenues related to communication services and product sales of $31.6 million and $33.9 million at June 30, 2020 |
Contract Assets And Liabilities [Policy Text Block] | Contract Balances – Contract assets include unbilled amounts, which result when revenue recognized exceeds the amount billed to the customer and the right to payment is not just subject to the passage of time. Contract assets principally consist of discounts and promotional credits given to customers. The current and noncurrent portions of contract assets are included in prepaid expenses and other and other assets, respectively, in the accompanying consolidated balance sheets. Contract liabilities consist of services billed in excess of revenue recognized. The changes in contract liabilities are primarily related to customer activity associated with services billed in advance, the receipt of cash payments and the satisfaction of our performance obligations. We classify these amounts as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of contract liabilities is included in advance payments while the noncurrent portion is included in other liabilities or liabilities subject to compromise. |
Preparation of Interim Financ_3
Preparation of Interim Financial Statements: Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Our accounts receivable balance consists of the following as of: (Millions) June 30, Accounts receivable $ 575.5 Less: Allowance for credit losses (47.7 ) Accounts receivable, net $ 527.8 Activity in our allowance for credit losses consists of the following: (Millions) Balance as of December 31, 2019 $ (48.2 ) Cumulative effect adjustment for ASU 2016-13 adoption (2.6 ) Additional allowance for estimated credit losses (12.8 ) Write-offs, net of recovered accounts 15.9 Balance as of June 30, 2020 $ (47.7 ) |
Chapter 11 Filing, Going Conc_3
Chapter 11 Filing, Going Concern and Other Related Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Liabilities Subject to Compromise Disclosures [Abstract] | |
Schedule of Liabilities Subject to Compromise [Table Text Block] | Liabilities subject to compromise was as follows at: (Millions) June 30, December 31, Accounts payable $ 227.3 $ 335.7 Advance payments 6.2 6.6 Accrued taxes 26.2 24.5 Other current liabilities 95.1 97.1 Deferred taxes 91.7 72.6 Operating lease liabilities 3,934.7 4,040.7 Pension and other employee benefit plan obligations 305.6 314.0 Other liabilities 185.0 200.7 Accounts payable, accrued and other liabilities 4,871.8 5,091.9 Debt subject to compromise 5,599.3 5,599.3 Accrued interest on debt subject to compromise 28.9 28.9 Long-term debt and accrued interest 5,628.2 5,628.2 Total liabilities subject to compromise $ 10,500.0 $ 10,720.1 |
Reorganization Items [Abstract] | |
Schedule Of Reorganization Items [Table Text Block] | Reorganization items, net incurred as a result of the Chapter 11 Cases presented separately in the accompanying consolidated statement of operations was as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Professional fees and other bankruptcy-related costs $ 47.3 $ 47.7 $ 92.1 $ 66.7 Provision for estimated damages on rejected executory contracts 11.2 25.3 11.2 25.3 Backstop premium 60.0 — 60.0 — Gain on write-off of net lease liabilities for rejected leases — (17.4 ) — (17.4 ) Gain on vendor settlements of liabilities subject to compromise (4.1 ) (8.5 ) (8.4 ) (8.5 ) Write-off of deferred long-term debt issuance costs — 30.6 — 54.7 Write-off of original issue net discount on debt — 5.5 — 27.1 Debtor-in-possession financing costs — 2.2 — 42.4 Reorganization items, net $ 114.4 $ 85.4 $ 154.9 $ 190.3 |
Debt_ (Tables)
Debt: (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Debt incurred by Windstream Services and its subsidiaries was as follows at: (Millions) June 30, December 31, Issued by Windstream Services: Superpriority debtor-in-possession term loan facility $ 500.0 $ 500.0 Superpriority debtor-in-possession revolving credit facility 400.0 — Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) (b) 1,180.5 1,180.5 Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 (b) 568.4 568.4 Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) 802.0 802.0 Senior First Lien Notes – 8.625%, due October 31, 2025 (b) 600.0 600.0 Senior Second Lien Notes – 10.500%, due June 30, 2024 (b) 414.9 414.9 Senior Second Lien Notes – 9.000%, due June 30, 2025 (b) 802.0 802.0 Debentures and notes, without collateral: 2020 Notes – 7.750%, due October 15, 2020 (b) 78.1 78.1 2021 Notes – 7.750%, due October 1, 2021 (b) 70.1 70.1 2022 Notes – 7.500%, due June 1, 2022 (b) 36.2 36.2 2023 Notes – 7.500%, due April 1, 2023 (b) 34.4 34.4 2023 Notes – 6.375%, due August 1, 2023 (b) 806.9 806.9 2024 Notes – 8.750%, due December 15, 2024 (b) 105.8 105.8 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (b) 100.0 100.0 Long-term debt prior to reclassification to liabilities subject to compromise 6,499.3 6,099.3 Less current portion (900.0 ) (500.0 ) Less amounts reclassified to liabilities subject to compromise (5,599.3 ) (5,599.3 ) Total long-term debt $ — $ — (a) Prior to the filing of the Chapter 11 Cases, if the maturity of the revolving line of credit was not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan would have become April 24, 2020; provided further, if the 2020 Notes had not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan would have become July 15, 2020. (b) Balances have been reclassified to liabilities subject to compromise because these obligations were under-collateralized as of the Petition Date of the Chapter 11 Cases and/or impaired based on the expected treatment of the creditor classes included in the PSA and the Plan. |
Interest Expense, Net Disclosure | Interest expense was as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Interest expense - debt $ 69.1 $ 82.9 $ 145.2 $ 176.7 Interest expense - leaseback of real estate contributed to pension plan 1.6 1.5 3.1 3.1 Impact of interest rate swaps (3.3 ) (3.0 ) (6.6 ) (5.9 ) Interest on finance leases and other 0.6 1.4 1.4 2.3 Less capitalized interest expense (2.0 ) (2.0 ) (4.0 ) (3.5 ) Total interest expense $ 66.0 $ 80.8 $ 139.1 $ 172.7 |
Derivatives_ Schedule of Deriva
Derivatives: Schedule of Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Set forth below is information related to interest rate swap agreements: (Millions, except for percentages) June 30, December 31, De-designated portion, unamortized value: Liabilities subject to compromise $ 6.1 $ 6.1 Accumulated other comprehensive income $ 17.0 $ 23.6 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Changes in derivative instruments were as follows for the six-month period ended June 30 : (Millions) 2020 2019 Changes in fair value, net of tax $ — $ (2.4 ) Amortization of net unrealized gains on de-designated interest rate swaps, net of tax $ (4.9 ) $ (3.1 ) |
Fair Value Measurements_ (Table
Fair Value Measurements: (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | (Millions) June 30, December 31, Not Recorded at Fair Value in the Financial Statements: (a) Debt, including current portion - Level 2: Included in current portion of long-term debt $ 766.4 $ 500.0 Included in liabilities subject to compromise $ 2,051.1 $ 3,676.1 (a) Recognized at carrying value of $6,499.3 million and $6,099.3 million in debt, including current portion, and liabilities subject to compromise and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of June 30, 2020 and December 31, 2019 , respectively. |
Revenues_ Revenues (Tables)
Revenues: Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Contract assets and liabilities from contracts with customers were as follows at: (Millions) June 30, December 31, Contract assets (a) $ 45.0 $ 32.8 Contract liabilities (b) $ 159.4 $ 162.3 Revenues recognized included in the opening contract liability balance (c) $ 136.6 $ 161.6 (a) Included $26.3 million and $20.8 million in prepaid expense and other and $18.7 million and $12.0 million in other assets as of June 30, 2020 and December 31, 2019, respectively. (b) Included $145.0 million and $148.0 million in advance payments, $10.8 million and $9.9 million in other liabilities, and $3.6 million and $4.4 million in liabilities subject to compromise as of June 30, 2020 and December 31, 2019, respectively. (c) Represents revenues recognized from the contract liability balance as of the beginning of the periods ended June 30, 2020 and 2019, respectively. |
Disaggregation of Revenue [Table Text Block] | Revenues recognized from contracts with customers by customer and product type were as follows: Three Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 242.3 $ — $ — $ 242.3 Voice-only 22.7 — — 22.7 Video and miscellaneous 6.6 — — 6.6 Core (a) — 238.9 — 238.9 Strategic (b) — 66.1 — 66.1 Legacy (c) — 103.2 — 103.2 Small business 68.9 — — 68.9 Wholesale (d) 57.4 — 66.5 123.9 Switched access (e) 5.8 — 4.8 10.6 Other (f) — 112.6 — 112.6 Service revenues from contracts with customers 403.7 520.8 71.3 995.8 Product and fiber sales 14.3 5.2 1.2 20.7 Total revenue from contracts with customers 418.0 526.0 72.5 1,016.5 Other service revenues (g) 98.1 56.5 14.2 168.8 Total revenues and sales $ 516.1 $ 582.5 $ 86.7 $ 1,185.3 6. Revenues, Continued: Six Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 482.4 $ — $ — $ 482.4 Voice-only 46.0 — — 46.0 Video and miscellaneous 14.5 — — 14.5 Core (a) — 488.3 — 488.3 Strategic (b) — 130.0 — 130.0 Legacy (c) — 207.9 — 207.9 Small business 140.0 — — 140.0 Wholesale (d) 116.3 — 132.7 249.0 Switched access (e) 11.2 — 10.4 21.6 Other (f) — 224.5 — 224.5 Service revenues from contracts with customers 810.4 1,050.7 143.1 2,004.2 Product and fiber sales 28.0 12.8 1.9 42.7 Total revenue from contracts with customers 838.4 1,063.5 145.0 2,046.9 Other service revenues (g) 196.2 116.3 26.8 339.3 Total revenues and sales $ 1,034.6 $ 1,179.8 $ 171.8 $ 2,386.2 6. Revenues, Continued: Three Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 239.6 $ — $ — $ 239.6 Voice-only 28.1 — — 28.1 Video and miscellaneous 10.1 — — 10.1 Core (a) — 296.9 — 296.9 Strategic (b) — 54.8 — 54.8 Legacy (c) — 125.8 — 125.8 Small business 75.6 — — 75.6 Wholesale (d) 51.6 — 69.8 121.4 Switched access (e) 6.2 — 7.6 13.8 Other (f) — 134.8 — 134.8 Service revenues from contracts with customers 411.2 612.3 77.4 1,100.9 Product and fiber sales 8.0 8.3 — 16.3 Total revenue from contracts with customers 419.2 620.6 77.4 1,117.2 Other service revenues (g) 97.5 61.1 10.7 169.3 Total revenues and sales $ 516.7 $ 681.7 $ 88.1 $ 1,286.5 6. Revenues, Continued: Six Months Ended (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 479.5 $ — $ — $ 479.5 Voice-only 56.7 — — 56.7 Video and miscellaneous 20.2 — — 20.2 Core (a) — 606.3 — 606.3 Strategic (b) — 103.6 — 103.6 Legacy (c) — 258.4 — 258.4 Small business 152.8 — — 152.8 Wholesale (d) 103.1 — 143.6 246.7 Switched access (e) 12.5 — 15.1 27.6 Other (f) — 275.3 — 275.3 Service revenues from contracts with customers 824.8 1,243.6 158.7 2,227.1 Product and fiber sales 16.0 18.7 — 34.7 Total revenue from contracts with customers 840.8 1,262.3 158.7 2,261.8 Other service revenues (g) 197.5 125.8 22.0 345.3 Total revenues and sales $ 1,038.3 $ 1,388.1 $ 180.7 $ 2,607.1 (a) Core revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance, and managed services. (b) Strategic revenues consist of Software Defined Wide Area Network (“SD-WAN”), Unified Communications as a Service (“UCaaS”), OfficeSuite©, and associated network access products and services. (c) Legacy revenues consist of Time Division Multiplexing (“TDM”) voice and data services. (d) Wholesale revenues primarily include revenues from providing special access circuits, fiber connections, data transport and wireless backhaul services. (e) Switched access revenues include usage sensitive revenues from long-distance companies and other carriers for access to our network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for use of our network facilities. (f) Other revenues primarily consist of administrative service fees, subscriber line charges, and non-recurring usage-based long-distance revenues. (g) Other service revenues primarily include end user surcharges, CAF – Phase II funding, frozen federal USF, state USF, and access recovery mechanism (“ARM”) support and lease revenue. |
Employee Benefit Plans_ (Tables
Employee Benefit Plans: (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension And Other Postretirement Benefits, Net Periodic Benefit Costs, Disclosure | The components of pension benefit (income) expense, including provision for executive retirement agreements, were as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Benefits earned during the period (a) $ 1.0 $ 0.9 $ 2.0 $ 1.5 Interest cost on benefit obligation (b) 9.4 11.1 18.8 22.0 Net actuarial loss (b) 2.9 7.7 2.9 7.7 Amortization of prior service credit (b) (0.2 ) (0.2 ) (0.4 ) (0.5 ) Expected return on plan assets (b) (14.6 ) (12.4 ) (29.3 ) (24.8 ) Net periodic benefit (income) expense $ (1.5 ) $ 7.1 $ (6.0 ) $ 5.9 (a) Included in cost of services and selling, general and administrative expense. (b) Included in other income (expense), net. |
Restructuring and Other Charg_2
Restructuring and Other Charges: (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Merger, Integration and Other Costs and Restructuring Activities | A summary of restructuring and other charges recorded was as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Restructuring charges $ 5.6 $ 6.1 $ 12.0 $ 16.6 Costs related to merger with EarthLink (a) — 0.6 — 4.0 Other — 0.2 — 1.4 Total restructuring and other charges $ 5.6 $ 6.9 $ 12.0 $ 22.0 (a) For the three and six-month periods ended June 30, 2019 , these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $0.4 million and $3.3 million , respectively, and other miscellaneous expenses of $0.2 million and $0.7 million |
Schedule of Restructuring and Related Costs | The following is a summary of the activity related to the liabilities associated with restructuring activities at June 30, 2020 : (Millions) Balance at December 31, 2019 $ 8.1 Severance and benefit costs incurred in period 12.0 Cash outlays during the period (14.7 ) Balance at June 30, 2020 $ 5.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income: (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income balances, net of tax, were as follows: (Millions) June 30, December 31, Pension and postretirement plans $ 3.8 $ 5.0 Unrealized net gains on de-designated interest rate swaps 12.7 17.6 Accumulated other comprehensive income $ 16.5 $ 22.6 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Unrealized Net Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2019 $ 17.6 $ 5.0 $ 22.6 Other comprehensive income before reclassifications — (0.7 ) (0.7 ) Amounts reclassified from other accumulated comprehensive income (a) (4.9 ) (0.5 ) (5.4 ) Balance at June 30, 2020 $ 12.7 $ 3.8 $ 16.5 (a) See separate table below for details about these reclassifications. |
Reclassifications out of accumulated other comprehensive income [Table Text Block] | Reclassifications out of accumulated other comprehensive income were as follows: (Millions) Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Three Months Ended Six Months Ended Affected Line Item in the Consolidated Statements of Operations 2020 2019 2020 2019 Interest rate swaps: Amortization of net unrealized gains on de-designated interest rate swaps $ (3.3 ) $ (3.0 ) $ (6.6 ) $ (4.2 ) Interest expense (3.3 ) (3.0 ) (6.6 ) (4.2 ) Loss before income taxes 0.8 0.8 1.7 1.1 Income tax (expense) benefit (2.5 ) (2.2 ) (4.9 ) (3.1 ) Net loss Pension and postretirement plans: Amortization of net actuarial loss 0.1 — 0.1 — Amortization of prior service credits (0.3 ) (0.3 ) (0.6 ) (0.7 ) (a) (0.2 ) (0.3 ) (0.5 ) (0.7 ) Loss before income taxes — — — 0.1 Income tax (expense) benefit (0.2 ) (0.3 ) (0.5 ) (0.6 ) Net loss Total reclassifications for the period, net of tax $ (2.7 ) $ (2.5 ) $ (5.4 ) $ (3.7 ) Net loss (a) Included in the computation of net periodic benefit expense for the period. |
Loss Per Share_ Schedule of Ear
Loss Per Share: Schedule of Earnings per Share, Basic and Diluted (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows: Three Months Ended Six Months Ended (Millions, except per share amounts) 2020 2019 2020 2019 Basic and diluted loss per share: Numerator: Net loss attributable to common shares $ (162.4 ) $ (544.1 ) $ (264.0 ) $ (2,854.4 ) Denominator: Basic and diluted shares outstanding Weighted average basic and diluted shares outstanding 42.7 42.6 42.7 42.6 Basic and diluted loss per share: Net loss ($3.80 ) ($12.76 ) ($6.18 ) ($66.98 ) |
Segment Information_ Segment _2
Segment Information: Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes our segment results: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Kinetic: Revenues and sales $ 516.1 $ 516.7 $ 1,034.6 $ 1,038.3 Costs and expenses 225.6 213.4 442.3 426.2 Segment income $ 290.5 $ 303.3 $ 592.3 $ 612.1 Enterprise: Revenues and sales $ 582.5 $ 681.7 $ 1,179.8 $ 1,388.1 Cost and expenses 463.6 542.5 947.8 1,116.3 Segment income $ 118.9 $ 139.2 $ 232.0 $ 271.8 Wholesale: Revenues and sales 86.7 88.1 $ 171.8 $ 180.7 Costs and expenses 24.7 23.1 47.4 53.0 Segment income 62.0 65.0 $ 124.4 $ 127.7 Total segment revenues and sales $ 1,185.3 $ 1,286.5 $ 2,386.2 $ 2,607.1 Total segment costs and expenses 713.9 779.0 1,437.5 1,595.5 Total segment income $ 471.4 $ 507.5 $ 948.7 $ 1,011.6 |
Schedule of Capital Expenditure [Table Text Block] | Capital expenditures by segment were as follows: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Kinetic $ 151.3 $ 105.7 $ 284.3 $ 204.1 Enterprise 24.1 36.5 50.8 78.6 Wholesale 9.2 5.5 16.1 10.7 Corporate/shared (a) 63.1 66.9 128.9 114.0 Total $ 247.7 $ 214.6 $ 480.1 $ 407.4 (a) Represents capital expenditures not directly assigned to the segments and primarily consist of capital outlays for network enhancements and information technology-related projects benefiting Windstream as a whole. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table reconciles segment income to consolidated net loss: Three Months Ended Six Months Ended (Millions) 2020 2019 2020 2019 Total segment income $ 471.4 $ 507.5 $ 948.7 $ 1,011.6 Depreciation and amortization (219.9 ) (276.0 ) (452.5 ) (547.5 ) Goodwill impairment — (373.3 ) — (2,712.3 ) Restructuring and other charges (5.6 ) (6.9 ) (12.0 ) (22.0 ) Straight-line expense under contractual arrangement with Uniti (168.3 ) (168.9 ) (337.1 ) (337.7 ) Other unassigned operating expenses (a) (52.8 ) (105.3 ) (108.2 ) (196.3 ) Other income (expense), net 1.7 (9.2 ) 7.4 (10.2 ) Reorganization items, net (114.4 ) (85.4 ) (154.9 ) (190.3 ) Interest expense (66.0 ) (80.8 ) (139.1 ) (172.7 ) Income tax (expense) benefit (8.5 ) 54.2 (16.3 ) 323.0 Net loss $ (162.4 ) $ (544.1 ) $ (264.0 ) $ (2,854.4 ) (a) Included in these expenses are spend commitment penalties incurred under certain carrier discount plans of $0.8 million and $1.2 million three and six-month periods ended June 30, 2020 , as compared to $30.3 million and $58.9 million for the same periods in 2019. For both periods of 2019, these expenses include a reserve of $19.7 million for a funding denial from USAC pursuant to the years 2012 to 2017 related to a large customer participating in the Universal Service Rural Healthcare Telecommunications Program. |
Preparation of Interim Financ_4
Preparation of Interim Financial Statements: Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)Mistates | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Mistates | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Number of States in which Entity Operates | states | 18 | 18 | |||
Number of Fiber Route Miles | Mi | 169,000 | 169,000 | |||
Payments to Acquire Intangible Assets | $ 13.8 | $ 10.3 | |||
Other intangibles, net | $ 1,013.6 | 1,013.6 | $ 1,068.7 | ||
Income tax (expense) benefit | $ 8.5 | $ (54.2) | $ 16.3 | $ (323) | |
Effective Income Tax Rate Reconciliation, Percent | (5.50%) | 9.10% | (6.60%) | 10.20% | |
Windstream Services, LLC | |||||
Income tax (expense) benefit | $ 8.7 | $ (54.1) | $ 16.6 | $ (322.8) | |
Reorganization under Chapter 11 Bankruptcy [Member] | |||||
Unusual or Infrequent Item, or Both, Tax Effect | 25.9 | 34.4 | |||
Increase in valuation allowance [Member] | |||||
Unusual or Infrequent Item, or Both, Tax Effect | 19.7 | $ 41.2 | |||
Goodwill impairment [Member] | |||||
Unusual or Infrequent Item, or Both, Tax Effect | $ 87.6 | $ 455.6 | |||
Windstream Services, LLC | Windstream Holdings, Inc. | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 100.00% | ||||
FCC Spectrum Licenses [Member] | |||||
Payments to Acquire Intangible Assets | $ 13.8 | ||||
Other intangibles, net | $ 40.4 | $ 40.4 | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Preparation of Interim Financ_5
Preparation of Interim Financial Statements: Operating Lease Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating Lease, Lease Income | $ 67.1 | $ 62 | $ 132.3 | $ 124.1 |
Preparation of Interim Financ_6
Preparation of Interim Financial Statements: Impact of ASU 2016-13 Adoption (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, before Allowance for Credit Loss | $ 575.5 | ||
Balance as of December 31, 2019 | $ (47.7) | (47.7) | $ (48.2) |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 527.8 | 574.7 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Financing Receivable, Allowance for Credit Loss | (47.7) | ||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (2.6) | ||
Provision for Loan, Lease, and Other Losses | (12.8) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 15.9 | ||
Financing Receivable, Allowance for Credit Loss | $ (48.2) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (1.8) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Accumulated Deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (1.8) |
Chapter 11 Filing (Details)
Chapter 11 Filing (Details) | Feb. 25, 2019 |
Reorganizations [Abstract] | |
Bankruptcy Petition Date | Feb. 25, 2019 |
Bankruptcy Court | U.S. Bankruptcy Court for the Southern District of New York |
Chapter 11 Filing, Going Conc_4
Chapter 11 Filing, Going Concern and Other Related Matters Uniti Arrangement (Details) - Uniti [Member] $ in Millions | May 08, 2020USD ($) |
Reorganization Items [Line Items] | |
Bankruptcy Settlement, Maximum Amount to Fund Capital Improvements | $ 1,750 |
Bankruptcy Settlement, Quarterly Amounts Payable to Fund Capital Improvements | $ 400 |
Bankruptcy Settlement, Annual Interest Rate | 9.00% |
Bankruptcy Settlement, Amount Funded To Purchase Assets | $ 40 |
Bankruptcy Settlement, Amount Funded From Proceeds of Common Stock | $ 244.5 |
Bankruptcy Settlement, Percentage of Increase in Annual Base Rent After Capital Improvements | 8.00% |
Bankruptcy Settlement, Percentage of Increase in Annual Rent Escalator After Capital Improvements | 0.50% |
Minimum | |
Reorganization Items [Line Items] | |
Bankruptcy Settlement, Quarterly Amounts Payable Including Interest to Fund Capital Improvements | $ 432 |
Maximum | |
Reorganization Items [Line Items] | |
Bankruptcy Settlement, Quarterly Amounts Payable Including Interest to Fund Capital Improvements | $ 490 |
Chapter 11 Filing, Going Conc_5
Chapter 11 Filing, Going Concern and Other Related Matters Plan Support Agreement (Details) - USD ($) $ in Millions | Mar. 02, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Plan of Reorganization [Line Items] | |||||
Plan of Reorganization, Reduction of Funded Debt | $ 4,000 | ||||
Debtor Reorganization Items, Facility Maximum Amount | 3,250 | ||||
Debtor Reorganization Items, Equity Rights Offering, Amount | $ 750 | ||||
Reorganization Items, Backstop Premium, Percentage | 8.00% | ||||
Backstop Premium | $ 60 | $ 0 | $ 60 | $ 0 | |
Senior Lien [Member] | |||||
Plan of Reorganization [Line Items] | |||||
Plan of Reorganization, Participating Parties, Percentage | 94.00% | ||||
Junior Lien [Member] | |||||
Plan of Reorganization [Line Items] | |||||
Plan of Reorganization, Participating Parties, Percentage | 54.00% | ||||
Unsecured Debt | |||||
Plan of Reorganization [Line Items] | |||||
Plan of Reorganization, Participating Parties, Percentage | 39.00% | ||||
Holders of Midwest Notes [Member] | |||||
Plan of Reorganization [Line Items] | |||||
Plan of Reorganization, Participating Parties, Percentage | 72.00% | ||||
Senior Notes [Member] | Senior Notes Due August 2023 [Member] | |||||
Plan of Reorganization [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% |
Chapter 11 Filing, Going Conc_6
Chapter 11 Filing, Going Concern and Other Related Matters Plan of Reorganization (Details) $ in Millions | Apr. 01, 2020USD ($) |
Senior Lien [Member] | |
Subsequent Event [Line Items] | |
Plan of Reorganization, New Common Stock to be Distributed, Percentage | 100.00% |
Exit Facility [Member] | Holders of Midwest Notes [Member] | |
Subsequent Event [Line Items] | |
Plan of Reorganization, Planned Issuance of Debt | $ 100 |
Liabilities Subject to Compromi
Liabilities Subject to Compromise (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Liabilities Subject to Compromise [Abstract] | ||
Accounts payable | $ 227.3 | $ 335.7 |
Advance payments | 6.2 | 6.6 |
Accrued taxes | 26.2 | 24.5 |
Other current liabilities | 95.1 | 97.1 |
Deferred taxes | 91.7 | 72.6 |
Operating lease liabilities | 3,934.7 | 4,040.7 |
Pension and other employee benefit plan obligations | 305.6 | 314 |
Other liabilities | 185 | 200.7 |
Accounts payable, accrued and other liabilities | 4,871.8 | 5,091.9 |
Debt subject to compromise | 5,599.3 | 5,599.3 |
Accrued interest on debt subject to compromise | 28.9 | 28.9 |
Long-term debt and accrued interest | 5,628.2 | 5,628.2 |
Total liabilities subject to compromise | $ 10,500 | $ 10,720.1 |
Potential Claims (Details)
Potential Claims (Details) - Subsequent Event [Member] $ in Billions | 17 Months Ended |
Jul. 24, 2020USD ($)claims | |
Subsequent Event [Line Items] | |
Bankruptcy Claims, Number Claims Filed | claims | 8,500 |
Bankruptcy Claims, Amount of Claims Filed | $ | $ 16.5 |
Reorganization Items (Details)
Reorganization Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Reorganization Items [Line Items] | |||||
Professional fees and other bankruptcy-related costs | $ 47.3 | $ 47.7 | $ 92.1 | $ 66.7 | |
Debtor Reorganization Items, Provision for Expected Allowed Claims | 11.2 | 25.3 | 11.2 | 25.3 | |
Backstop Premium | 60 | 0 | 60 | 0 | |
Debtor Reorganization Items, Net Gain (Loss) on Rejection of Leases and Other Executory Contracts | 0 | (17.4) | 0 | (17.4) | |
Gain on vendor settlements of liabilities subject to compromise | (4.1) | (8.5) | (8.4) | (8.5) | |
Debtor Reorganization Items Write Off Of Long Term Debt Fees | 0 | 30.6 | 0 | 54.7 | |
Debtor Reorganization Items, Write-off of Debt Issuance Costs and Debt Discounts | 0 | 5.5 | 0 | 27.1 | |
Debtor Reorganization Items, Debtor-in-Possession Facility Financing Costs | 0 | 2.2 | 0 | 42.4 | |
Reorganization items, net | 114.4 | 85.4 | 154.9 | 190.3 | |
Payments of Debt Issuance Costs | 0 | 23.4 | |||
Term Loan Commitments [Member] | Superpriority Term Loan Facility [Member] | |||||
Reorganization Items [Line Items] | |||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 500 | $ 500 | $ 500 | 500 | $ 500 |
Reorganization items, net [Member] | |||||
Reorganization Items [Line Items] | |||||
Payments of Debt Issuance Costs | $ 16.9 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt prior to reclassification to liabilities subject to compromise | $ 6,499.3 | $ 6,099.3 | |
Less current portion | (900) | (500) | |
Less amounts reclassified to liabilities subject to compromise | (5,599.3) | (5,599.3) | |
Total long-term debt | 0 | 0 | |
Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | Secured Debt | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | 1,180.5 | 1,180.5 | |
Senior secured credit facility, Tranche B7 - variable rates, due February 17, 2024 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility | 568.4 | 568.4 | |
Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | Line of Credit | |||
Debt Instrument [Line Items] | |||
Senior secured credit facility, Revolving line of credit | 802 | 802 | |
Senior First Lien Notes – 8.625%, due October 31, 2025 (b) (e) | Secured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 600 | 600 | |
Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | Secured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 414.9 | 414.9 | |
Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | Secured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 802 | 802 | |
2020 Notes - 7.750%, due October 15, 2020 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 78.1 | 78.1 | |
2021 Notes - 7.750% due October 1, 2021 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 70.1 | 70.1 | |
2022 Notes - 7.500% due June 1, 2022 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 36.2 | 36.2 | |
2023 Notes - 7.500% due April 1, 2023 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 34.4 | 34.4 | |
2023 Notes - 6.375%, due August 1, 2023 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 806.9 | 806.9 | |
2024 Notes - 8.750% due December 15, 2024 | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Notes Payable | 105.8 | 105.8 | |
Windstream Holdings of the Midwest, Inc. | Windstream Holdings of the Midwest, Inc. - 6.75%, due April 1, 2028 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Debentures and notes issued by subsidiaries | 100 | 100 | |
Superpriority Term Loan Facility [Member] | Term Loan Commitments [Member] | |||
Debt Instrument [Line Items] | |||
Debtor-in-Possession Financing, Borrowings Outstanding | 500 | 500 | $ 500 |
Superpriority Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 400 | $ 0 |
Debt Interest Rates (Details)
Debt Interest Rates (Details) | Feb. 17, 2017 | Jun. 30, 2020 | Jun. 30, 2019 |
Senior secured credit facilities [Domain] | |||
Debt Disclosure [Line Items] | |||
Debt instrument, Default interest rate | 2.00% | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% | ||
DIP Facilities [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||
Senior secured credit facility, Tranche B7 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Secured Debt | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | ||
Quarterly Amortization Payment on Term Loans, Stated As A Percent of Initial Principal Amount | 0.25% | ||
Secured Debt | Senior secured credit facility, Tranche B7 - variable rates, due February 17, 2024 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.75% | ||
Unsecured Debt | Senior First Lien Notes – 8.625%, due October 31, 2025 (b) (e) | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.625% | ||
Unsecured Debt | Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | ||
Unsecured Debt | Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | ||
Unsecured Debt | 2020 Notes - 7.750%, due October 15, 2020 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||
Unsecured Debt | 2021 Notes - 7.750% due October 1, 2021 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||
Unsecured Debt | 2022 Notes - 7.500% due June 1, 2022 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
Unsecured Debt | 2023 Notes - 7.500% due April 1, 2023 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
Unsecured Debt | 2023 Notes - 6.375%, due August 1, 2023 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | ||
Unsecured Debt | 2024 Notes - 8.750% due December 15, 2024 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ||
Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 7.23% | ||
Windstream Holdings of the Midwest, Inc. | Secured Debt | Windstream Holdings of the Midwest, Inc. - 6.75%, due April 1, 2028 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
London Interbank Offered Rate (LIBOR) [Member] | DIP Facilities [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | Senior secured credit facility, Tranche B7 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
Federal Funds Effective Rate [Member] | DIP Facilities [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Minimum | |||
Debt Disclosure [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ||
Minimum | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.38% | ||
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | Senior secured credit facility, Tranche B7 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt | Senior secured credit facility, Tranche B6 [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Maximum | |||
Debt Disclosure [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||
Maximum | Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | ||
Revolving Credit Facility [Member] | Minimum | Base Rate [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
Revolving Credit Facility [Member] | Minimum | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
Revolving Credit Facility [Member] | Maximum | Base Rate [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Revolving Credit Facility [Member] | Maximum | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Secured Debt | Maximum | Base Rate [Member] | Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) | |||
Debt Disclosure [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 4.00% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 2 Months Ended | 6 Months Ended | |||
Feb. 24, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Feb. 25, 2019 | |
DIP Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant Description | The DIP Credit Agreement 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, unstayed judgments in favor of a third party involving an aggregate liability in excess of $25.0 million, change of control, specified governmental actions having a material adverse effect or condemnation or damage to a material portion of the collateral. Certain bankruptcy-related events are also events of default, including, but not limited to, the dismissal by the Bankruptcy Court of any of the Chapter 11 Cases, the conversion of any of the Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code, the appointment of a trustee pursuant to Chapter 11 of the Bankruptcy Code, the final order approving the DIP Facilities failing to have been entered within 60 days after the Petition Date and certain other events related to the impairment of the DIP Lenders’ rights or liens granted under the DIP Credit Agreement. | ||||
Line of Credit | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit under Revolving Line of Credit, Maximum | $ 50 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250 | ||||
Proceeds from Lines of Credit | $ 155 | ||||
Repayments of Lines of Credit | $ 370 | ||||
Senior Secured Superpriority Debtor-In-Possession Credit Facility [Member] | DIP Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||||
Superpriority Term Loan Facility [Member] | Term Loan Commitments [Member] | |||||
Debt Instrument [Line Items] | |||||
Debtor-in-Possession Financing, Borrowings Outstanding | 500 | $ 500 | $ 500 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500 | ||||
Superpriority Revolving Credit Facility [Member] | Revolving Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | ||||
Superpriority Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debtor-in-Possession Financing, Borrowings Outstanding | 400 | $ 0 | |||
Proceeds from Lines of Credit | 400 | ||||
Debtor-in-Possession Financing, Letters of Credit Outstanding | 28.8 | ||||
Debtor-in-Possession Financing, Letters of Credit Outstanding, Amount for Potential Professional Fees | 63.5 | ||||
Debtor-in-Possession Financing, Remaining Borrowing Capacity | $ 7.7 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Expense [Abstract] | ||||
Interest expense - long-term debt | $ 69.1 | $ 82.9 | $ 145.2 | $ 176.7 |
Interest expense - long-term lease obligation - Real estate contributed to pension plan | 1.6 | 1.5 | 3.1 | 3.1 |
Impact of interest rate swaps | (3.3) | (3) | (6.6) | (5.9) |
Interest on capital leases and other | 0.6 | 1.4 | 1.4 | 2.3 |
Less capitalized interest expense | (2) | (2) | (4) | (3.5) |
Total interest expense | $ 66 | $ 80.8 | $ 139.1 | $ 172.7 |
Derivatives_ Additional informa
Derivatives: Additional information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Cash Received on Hedge | $ 9,600,000 | ||||
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 6,100,000 | $ 6,100,000 | |||
Changes in fair value of effective portion, net of tax (a) | 0 | $ 0 | 0 | 3,200,000 | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 9,800,000 | $ 9,800,000 | |||
Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Number of Instruments Held | 6 | 6 | |||
Derivative Asset, Notional Amount | $ 1,375,000,000 | $ 1,375,000,000 | |||
Derivative, Average Fixed Interest Rate | 2.984% | 2.984% | |||
Derivative, Fixed Interest Rate | 1.1275% | 1.1275% | |||
Designated as Hedging Instrument [Member] | Interest rate swaps | Other Comprehensive Income (Loss) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Changes in fair value of effective portion, net of tax (a) | $ 0 | (2,400,000) | |||
De-Designated Hedging Instrument [Member] | Interest rate swaps | Other Comprehensive Income (Loss) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amortization of net unrealized losses on de-designated interest rate swaps, net of tax (a) | (4,900,000) | $ (3,100,000) | |||
Liabilities Subject to Compromise | De-Designated Hedging Instrument [Member] | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Liabilities Subject to Compromise, Derivative Liability | $ 6,100,000 | 6,100,000 | $ 6,100,000 | ||
Accumulated Other Comprehensive Income (Loss) | De-Designated Hedging Instrument [Member] | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 17,000,000 | $ 17,000,000 | $ 23,600,000 |
Fair Value Measurements_ (Detai
Fair Value Measurements: (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Fair Value, Option, Events Triggering Election, Reasons | No | |
Debt, Carrying Value | $ 6,499.3 | $ 6,099.3 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Current Portion of Long-Term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Included in current portion of long-term debt | 766.4 | 500 |
Included in liabilities subject to compromise | 766.4 | 500 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Liabilities Subject to Compromise | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Included in current portion of long-term debt | 2,051.1 | 3,676.1 |
Included in liabilities subject to compromise | $ 2,051.1 | $ 3,676.1 |
Revenues_ Contract Assets and L
Revenues: Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Contract with Customer, Asset, Net | ||
Contract assets (a) | $ 45 | $ 32.8 |
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 159.4 | 162.3 |
Revenues recognized included in the opening contract liability balance (c) | 136.6 | 161.6 |
Prepaid expenses and other | ||
Contract with Customer, Asset, Net | ||
Contract assets (a) | 26.3 | 20.8 |
Other assets | ||
Contract with Customer, Asset, Net | ||
Contract assets (a) | 18.7 | 12 |
Advance Payments [Member] | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 145 | 148 |
Other liabilities | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 10.8 | 9.9 |
Liabilities Subject to Compromise | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | $ 3.6 | $ 4.4 |
Revenues_ Revenue Performance O
Revenues: Revenue Performance Obligations (Details) $ in Billions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 2.4 |
Expected Timing of Satisfaction: 2020-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining obligation to be recognized | 22.00% |
Expected Timing of Satisfaction: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining obligation to be recognized | 34.00% |
Expected Timing of Satisfaction: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining obligation to be recognized | 24.00% |
Revenues_ Revenue by Category (
Revenues: Revenue by Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | $ 1,185.3 | $ 1,286.5 | $ 2,386.2 | $ 2,607.1 |
High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 242.3 | 239.6 | 482.4 | 479.5 |
Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 22.7 | 28.1 | 46 | 56.7 |
Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 6.6 | 10.1 | 14.5 | 20.2 |
Core (a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 238.9 | 296.9 | 488.3 | 606.3 |
Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 66.1 | 54.8 | 130 | 103.6 |
Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 103.2 | 125.8 | 207.9 | 258.4 |
Small business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 68.9 | 75.6 | 140 | 152.8 |
Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 123.9 | 121.4 | 249 | 246.7 |
Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 10.6 | 13.8 | 21.6 | 27.6 |
Other (f) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 112.6 | 134.8 | 224.5 | 275.3 |
Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 995.8 | 1,100.9 | 2,004.2 | 2,227.1 |
Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 20.7 | 16.3 | 42.7 | 34.7 |
Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 1,016.5 | 1,117.2 | 2,046.9 | 2,261.8 |
Other service revenues (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 168.8 | 169.3 | 339.3 | 345.3 |
Kinetic | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 516.1 | 516.7 | 1,034.6 | 1,038.3 |
Kinetic | High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 242.3 | 239.6 | 482.4 | 479.5 |
Kinetic | Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 22.7 | 28.1 | 46 | 56.7 |
Kinetic | Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 6.6 | 10.1 | 14.5 | 20.2 |
Kinetic | Core (a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Kinetic | Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Kinetic | Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Kinetic | Small business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 68.9 | 75.6 | 140 | 152.8 |
Kinetic | Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 57.4 | 51.6 | 116.3 | 103.1 |
Kinetic | Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 5.8 | 6.2 | 11.2 | 12.5 |
Kinetic | Other (f) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Kinetic | Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 403.7 | 411.2 | 810.4 | 824.8 |
Kinetic | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 14.3 | 8 | 28 | 16 |
Kinetic | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 418 | 419.2 | 838.4 | 840.8 |
Kinetic | Other service revenues (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 98.1 | 97.5 | 196.2 | 197.5 |
Enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 582.5 | 681.7 | 1,179.8 | 1,388.1 |
Enterprise | High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Enterprise | Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Enterprise | Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Enterprise | Core (a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 238.9 | 296.9 | 488.3 | 606.3 |
Enterprise | Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 66.1 | 54.8 | 130 | 103.6 |
Enterprise | Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 103.2 | 125.8 | 207.9 | 258.4 |
Enterprise | Small business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Enterprise | Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Enterprise | Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Enterprise | Other (f) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 112.6 | 134.8 | 224.5 | 275.3 |
Enterprise | Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 520.8 | 612.3 | 1,050.7 | 1,243.6 |
Enterprise | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 5.2 | 8.3 | 12.8 | 18.7 |
Enterprise | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 526 | 620.6 | 1,063.5 | 1,262.3 |
Enterprise | Other service revenues (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 56.5 | 61.1 | 116.3 | 125.8 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 86.7 | 88.1 | 171.8 | 180.7 |
Wholesale | High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Core (a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Small business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 66.5 | 69.8 | 132.7 | 143.6 |
Wholesale | Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 4.8 | 7.6 | 10.4 | 15.1 |
Wholesale | Other (f) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | 0 | 0 |
Wholesale | Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 71.3 | 77.4 | 143.1 | 158.7 |
Wholesale | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 1.2 | 0 | 1.9 | 0 |
Wholesale | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 72.5 | 77.4 | 145 | 158.7 |
Wholesale | Other service revenues (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | $ 14.2 | $ 10.7 | $ 26.8 | $ 22 |
Revenues_ Additional Informatio
Revenues: Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 55.5 | $ 55.5 | $ 53.8 | ||
Deferred contract costs, amortization | 11.8 | $ 10 | 23.2 | $ 19.9 | |
Unbilled Contracts Receivable | 31.6 | 31.6 | 33.9 | ||
Prepaid expenses and other | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | 37.6 | 37.6 | 34.9 | ||
Other assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 17.9 | $ 17.9 | $ 18.9 | ||
Minimum | |||||
Capitalized Contract Cost [Line Items] | |||||
Estimated Customer Life | 18 months | ||||
Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Estimated Customer Life | 36 months |
Employee Benefit Plans_ Compone
Employee Benefit Plans: Components of Pension Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net actuarial loss (b) | $ 2.9 | $ 7.7 | $ 2.9 | $ 7.7 |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits earned during the period (a) | 1 | 0.9 | 2 | 1.5 |
Interest cost on benefit obligation (b) | 9.4 | 11.1 | 18.8 | 22 |
Amortization of prior service credit (b) | (0.2) | (0.2) | (0.4) | (0.5) |
Expected return on plan assets (b) | (14.6) | (12.4) | (29.3) | (24.8) |
Net periodic benefit (income) expense | $ (1.5) | $ 7.1 | $ (6) | $ 5.9 |
Employee Benefit Plans_ (Detail
Employee Benefit Plans: (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | |||
Company's 401(k) Employer Match Expense | $ 6.4 | $ 6.5 | $ 13.7 | $ 13.5 |
Defined Contribution Plan, Matching Employer Contribution, Cash | 12.6 | |||
Defined Contribution Plan, Contributions by Employer, Cash | 25.7 | 26.4 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected annual employer contributions | 52.8 | 52.8 | ||
Required quarterly employer contribution - cash | 3.4 | $ 6.4 | ||
Other Pension, Postretirement and Supplemental Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected annual employer contributions | $ 0.9 | $ 0.9 |
Restructuring and Other Charg_3
Restructuring and Other Charges: (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)position | Jun. 30, 2019USD ($)position | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 525 | 425 | ||
Restructuring charges | $ 5.6 | $ 6.1 | $ 12 | $ 16.6 |
Merger, Integration and Restructuring Cost, Cost Incurred to Date, Net of Tax | 4.2 | 5.2 | 9 | 16.5 |
Restructuring Integration and Merger Cost [Abstract] | ||||
Restructuring charges | 5.6 | 6.1 | 12 | 16.6 |
Costs related to merger with EarthLink (a) | 0 | 0.6 | 0 | 4 |
Other | 0 | 0.2 | 0 | 1.4 |
Total restructuring and other charges | 5.6 | 6.9 | 12 | 22 |
Workforce Reductions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 12 | 16 | ||
Restructuring Integration and Merger Cost [Abstract] | ||||
Restructuring charges | $ 12 | 16 | ||
EarthLink [Member] | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 0.4 | 3.3 | ||
EarthLink [Member] | Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 0.2 | $ 0.7 |
Restructuring and Other Charg_4
Restructuring and Other Charges: Summary of Activities Related to Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning of Period | $ 8.1 | |||
Restructuring charges | $ 5.6 | $ 6.1 | 12 | $ 16.6 |
Cash outlays during the period | 14.7 | |||
End of Period | $ 5.4 | $ 5.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income [Line Items] | ||
Pension and postretirement plans | $ 3.8 | $ 5 |
Accumulated other comprehensive income | 16.5 | 22.6 |
Total | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income | 16.5 | 22.6 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps | ||
Accumulated Other Comprehensive Income [Line Items] | ||
De-designated portion | $ 12.7 | $ 17.6 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive (Loss) Income (Roll-Forward) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Unrealized Net Gains on Interest Rate Swaps | |
Accumulated other comprehensive loss [Roll Forward] | |
Beginning Balance | $ 17.6 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 |
Amounts reclassified from other accumulated comprehensive income (a) | (4.9) |
Ending Balance | 12.7 |
Pension and Postretirement Plans | |
Accumulated other comprehensive loss [Roll Forward] | |
Beginning Balance | 5 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (0.7) |
Amounts reclassified from other accumulated comprehensive income (a) | (0.5) |
Ending Balance | 3.8 |
Total | |
Accumulated other comprehensive loss [Roll Forward] | |
Beginning Balance | 22.6 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (0.7) |
Amounts reclassified from other accumulated comprehensive income (a) | (5.4) |
Ending Balance | $ 16.5 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive (Loss) Income (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (income) expense, net | $ 1.7 | $ (9.2) | $ 7.4 | $ (10.2) |
Income tax (expense) benefit | 8.5 | (54.2) | 16.3 | (323) |
Net loss | (162.4) | (544.1) | (264) | (2,854.4) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net loss | (2.7) | (2.5) | (5.4) | (3.7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of net unrealized gains on de-designated interest rate swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss before income taxes | (3.3) | (3) | (6.6) | (4.2) |
Income tax (expense) benefit | 0.8 | 0.8 | 1.7 | 1.1 |
Net loss | (2.5) | (2.2) | (4.9) | (3.1) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of net actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (income) expense, net | 0.1 | 0 | 0.1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of prior service credits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (income) expense, net | (0.3) | (0.3) | (0.6) | (0.7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and postretirement plans: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss before income taxes | (0.2) | (0.3) | (0.5) | (0.7) |
Income tax (expense) benefit | 0 | 0 | 0 | 0.1 |
Net loss | (0.2) | (0.3) | (0.5) | (0.6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps | Amortization of net unrealized gains on de-designated interest rate swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest (income) expense | $ (3.3) | $ (3) | $ (6.6) | $ (4.2) |
Reconciliation of Net Income an
Reconciliation of Net Income and Number of Shares Used in Computing Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net loss attributable to common shares | $ (162.4) | $ (544.1) | $ (264) | $ (2,854.4) |
Denominator: | ||||
Weighted average basic and diluted shares outstanding | 42.7 | 42.6 | 42.7 | 42.6 |
Net loss | $ (3.80) | $ (12.76) | $ (6.18) | $ (66.98) |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.5 | ||
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.8 | 1 |
Segment Information_ Segment Re
Segment Information: Segment Results (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Reserve for USAC funding denial | $ 19.7 | $ 19.7 | ||
Number of Reportable Segments | segment | 3 | |||
Revenues and sales: | $ 1,185.3 | 1,286.5 | $ 2,386.2 | 2,607.1 |
Costs and Expenses | 1,160.5 | 1,709.4 | 2,347.3 | 5,411.3 |
Total segment income | 24.8 | (422.9) | 38.9 | (2,804.2) |
Kinetic | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 516.1 | 516.7 | 1,034.6 | 1,038.3 |
Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 582.5 | 681.7 | 1,179.8 | 1,388.1 |
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 86.7 | 88.1 | 171.8 | 180.7 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 1,185.3 | 1,286.5 | 2,386.2 | 2,607.1 |
Costs and Expenses | 713.9 | 779 | 1,437.5 | 1,595.5 |
Total segment income | 471.4 | 507.5 | 948.7 | 1,011.6 |
Operating Segments | Kinetic | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 516.1 | 516.7 | 1,034.6 | 1,038.3 |
Costs and Expenses | 225.6 | 213.4 | 442.3 | 426.2 |
Total segment income | 290.5 | 303.3 | 592.3 | 612.1 |
Operating Segments | Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 86.7 | 88.1 | 1,179.8 | 1,388.1 |
Costs and Expenses | 24.7 | 23.1 | 947.8 | 1,116.3 |
Total segment income | 62 | 65 | 232 | 271.8 |
Operating Segments | Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 582.5 | 681.7 | 171.8 | 180.7 |
Costs and Expenses | 463.6 | 542.5 | 47.4 | 53 |
Total segment income | $ 118.9 | $ 139.2 | $ 124.4 | $ 127.7 |
Segment Information_ Capital Ex
Segment Information: Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 247.7 | $ 214.6 | $ 480.1 | $ 407.4 |
Kinetic | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | 151.3 | 105.7 | 284.3 | 204.1 |
Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | 24.1 | 36.5 | 50.8 | 78.6 |
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | 9.2 | 5.5 | 16.1 | 10.7 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 63.1 | $ 66.9 | $ 128.9 | $ 114 |
Segment Information_ Reconcilia
Segment Information: Reconciliation of Segment Income to Consolidated Net (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Total segment income | $ 24.8 | $ (422.9) | $ 38.9 | $ (2,804.2) | ||
Depreciation and amortization | (219.9) | (276) | (452.5) | (547.5) | ||
Goodwill impairment | 0 | (373.3) | 0 | (2,712.3) | ||
Restructuring and other charges | (5.6) | (6.9) | (12) | (22) | ||
Other unassigned operating expenses | (1,160.5) | (1,709.4) | (2,347.3) | (5,411.3) | ||
Other income (expense), net | 1.7 | (9.2) | 7.4 | (10.2) | ||
Reorganization items, net | (114.4) | (85.4) | (154.9) | (190.3) | ||
Interest expense | (66) | (80.8) | (139.1) | (172.7) | ||
Income tax (expense) benefit | (8.5) | 54.2 | (16.3) | 323 | ||
Net loss | (162.4) | $ (101.6) | (544.1) | $ (2,310.3) | (264) | (2,854.4) |
Minimum Purchase Commitment Penalty | 0.8 | 30.3 | 1.2 | 58.9 | ||
Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Total segment income | 471.4 | 507.5 | 948.7 | 1,011.6 | ||
Other unassigned operating expenses | (713.9) | (779) | (1,437.5) | (1,595.5) | ||
Corporate, Non-Segment | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Other unassigned operating expenses | (52.8) | (105.3) | (108.2) | (196.3) | ||
Leaseback of Telecommunications Network Assets | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Straight-line expense under contractual arrangement with Uniti | $ (168.3) | $ (168.9) | $ (337.1) | $ (337.7) |
Commitments and Contingencies_2
Commitments and Contingencies: Other Matters (Details) | Feb. 15, 2019USD ($) | Feb. 28, 2017lawsuit | Dec. 31, 2018lawsuit | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | ||||
Litigation Settlement, Amount Awarded to Other Party | $ 310,459,959.10 | |||
Loss Contingency Accrual | $ 16,600,000 | |||
Loss Contingency, Number Of Shareholders Filing Class Action Complaints | lawsuit | 2 | 2 | ||
Litigation Settlement, Amount Awarded from Other Party | $ 6,000,000 | |||
Senior Notes [Member] | Senior Notes Due August 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% |