Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | May 14, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | 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 | No | |
Entity Interactive Data Current | No | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,018,736 | |
Entity Central Index Key | 0001282266 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Windstream Services, LLC | ||
Entity Information [Line Items] | ||
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 | No | |
Entity Interactive Data Current | No | |
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 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
WINDSTREAM HOLDINGS, INC. CONSO
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | Aug. 02, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Revenues and sales: | |||||||||
Revenues and sales: | $ 1,270.1 | $ 1,420.6 | $ 3,877.2 | $ 4,319.3 | |||||
Costs and expenses: | |||||||||
Selling, general and administrative | 189 | 225.8 | 573.2 | 679.1 | |||||
Depreciation and amortization | 262.2 | 383.8 | 809.7 | 1,136.3 | |||||
Goodwill impairment | 0 | $ 373.3 | $ 2,339 | 0 | 2,712.3 | 0 | |||
Merger, integration and other costs | 1.8 | 9 | 7.2 | 30.4 | |||||
Restructuring charges | 1.6 | 6.5 | 18.2 | 26 | |||||
Total costs and expenses | 1,304.6 | 1,345 | 6,715.9 | 4,086.4 | |||||
Operating (loss) income | (34.5) | 75.6 | (2,838.7) | 232.9 | |||||
Other income (expense), net | 0.2 | 3.2 | (10) | 12.9 | |||||
Net gain on early extinguishment of debt | $ 190.3 | 0 | 190.3 | 0 | 190.3 | ||||
Reorganization items, net | (29.2) | 0 | (219.5) | 0 | |||||
Interest expense (contractual interest for the three and nine months ended September 30, 2019 of $130.1 and $366.6, respectively) | (81.2) | (230) | (253.9) | (677.5) | |||||
(Loss) income before income taxes | (144.7) | 39.1 | (3,322.1) | (241.4) | |||||
Income tax benefit | 29.2 | 2.2 | 352.2 | 67.6 | |||||
Net (loss) income | $ (115.5) | $ (544.1) | $ (2,310.3) | $ 41.3 | $ (93.7) | $ (121.4) | $ (2,969.9) | $ (173.8) | |
Basic and diluted (loss) earnings per share: | |||||||||
Net (loss) income | $ (2.71) | $ 0.97 | $ (69.67) | $ (4.32) | |||||
Service revenues | |||||||||
Revenues and sales: | |||||||||
Revenues and sales: | $ 1,241.7 | $ 1,400.1 | $ 3,814.1 | $ 4,260.1 | |||||
Costs and expenses: | |||||||||
Cost of services and products sold | 827 | 700.2 | 2,540.2 | 2,159.9 | |||||
Product and fiber sales | |||||||||
Revenues and sales: | |||||||||
Revenues and sales: | 28.4 | 20.5 | 63.1 | 59.2 | |||||
Costs and expenses: | |||||||||
Cost of services and products sold | $ 23 | $ 19.7 | $ 55.1 | $ 54.7 |
WINDSTREAM HOLDINGS, INC. CON_2
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 366.6 | $ 130.1 |
WINDSTREAM HOLDINGS, INC. CON_3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net (loss) income | $ (115.5) | $ (544.1) | $ (2,310.3) | $ 41.3 | $ (93.7) | $ (121.4) | $ (2,969.9) | $ (173.8) |
Interest rate swaps: | ||||||||
Unrealized gains (losses) on designated interest rate swaps | 0 | 1.9 | (3.2) | 21.6 | ||||
Amortization of net unrealized (gains) losses on de-designated interest rate swaps | (3.1) | 0.7 | (7.3) | 2.4 | ||||
Income tax benefit (expense) | 0.7 | (0.6) | 2.6 | (6.1) | ||||
Change in interest rate swaps | (2.4) | 2 | (7.9) | 17.9 | ||||
Pension and postretirement plans: | ||||||||
Prior service credit arising during the period | 0 | 0 | 0 | 2.7 | ||||
Change in net actuarial (loss) gain for employee benefit plans | 0 | 0 | (0.2) | 5.4 | ||||
Amounts included in net periodic benefit cost: | ||||||||
Amortization of net actuarial loss | 0 | 0.1 | 0 | 0.2 | ||||
Amortization of prior service credits | (0.3) | (1.2) | (1) | (3.8) | ||||
Income tax benefit (expense) | 0.1 | (0.5) | 0.3 | (1.1) | ||||
Change in pension and postretirement plans | (0.2) | (0.4) | (0.3) | (1.6) | 5.9 | (0.9) | (0.9) | 3.4 |
Other comprehensive (loss) income | (2.6) | 0.4 | (8.8) | 21.3 | ||||
Comprehensive (loss) income | $ (118.1) | $ (546.7) | $ (2,313.9) | $ 41.7 | $ (83.6) | $ (110.6) | $ (2,978.7) | $ (152.5) |
WINDSTREAM HOLDINGS, INC. CON_4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 385.1 | $ 355.7 |
Restricted cash | 7.8 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $25.9 and $24.8, respectively) | 556.2 | 653.1 |
Inventories | 70.7 | 82.4 |
Prepaid expenses and other | 196.4 | 159.7 |
Total current assets | 1,216.2 | 1,256.2 |
Goodwill | 61.4 | 2,773.7 |
Other intangibles, net | 1,110.5 | 1,213.1 |
Net property, plant and equipment | 3,582.4 | 4,920.9 |
Operating lease right-of-use assets | 4,066.8 | 0 |
Other assets | 84.1 | 94 |
Total Assets | 10,121.4 | 10,257.9 |
Current Liabilities: | ||
Current portion of long-term debt | 500 | 5,728.1 |
Current portion of long-term lease obligations | 0 | 4,570.3 |
Accounts payable | 298.5 | 503.6 |
Advance payments | 155.7 | 180.6 |
Accrued taxes | 64.8 | 87.4 |
Other current liabilities | 209.9 | 387.7 |
Total current liabilities | 1,228.9 | 11,457.7 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 21.5 | 615.2 |
Liabilities subject to compromise | 10,754.3 | 0 |
Total liabilities | 12,004.7 | 12,177.2 |
Commitments and Contingencies (See Note 16) | ||
Shareholders’ Deficit: | ||
Common stock, $0.0001 par value, 75.0 shares authorized, 43.0 and 42.9 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 1,252.1 | 1,250.4 |
Accumulated other comprehensive income | 26.8 | 35.6 |
Accumulated deficit | (3,162.2) | (3,205.3) |
Total shareholders’ deficit | (1,883.3) | (1,919.3) |
Total Liabilities and Shareholders’ Deficit | $ 10,121.4 | $ 10,257.9 |
WINDSTREAM HOLDINGS, INC. CON_5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 49.3 | $ 24.8 |
Shareholders’ Deficit: | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75 | 75 |
Common stock, shares issued | 43 | 42.9 |
Common stock, shares outstanding | 43 | 42.9 |
WINDSTREAM HOLDINGS, INC. CON_6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (2,969.9) | $ (173.8) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 809.7 | 1,136.3 |
Provision for doubtful accounts | 55.1 | 26.3 |
Share-based compensation expense | 1.3 | 25.5 |
Non-cash reorganization items, net | 51.5 | 0 |
Net gain on early extinguishment of debt | 0 | (190.3) |
Deferred income taxes | (351.2) | (67.6) |
Goodwill impairment | 2,712.3 | 0 |
Noncash Debtor in Possession Facility Issuance Costs Expensed | 24.4 | 0 |
Other, net | 13.2 | 10.1 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (12.1) | (25.9) |
Prepaid expenses and other | (62.2) | 0.5 |
Accounts payable | 199.3 | (12.7) |
Accrued interest | (11.6) | 17.6 |
Accrued taxes | (2.4) | (3.4) |
Other current liabilities | 4.7 | (2.5) |
Other liabilities | 8.4 | 7.1 |
Other, net | (5.6) | 9 |
Net cash provided from operating activities | 464.9 | 756.2 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (628.9) | (603.2) |
Payments to Acquire Intangible Assets | (26.6) | 0 |
Acquisition of MASS, net of cash acquired | 0 | (46.9) |
Other, net | 2 | (7.6) |
Net cash used in investing activities | (653.5) | (657.7) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of common stock | 0 | 12.2 |
Repayments of debt and swaps | (372.4) | (540.4) |
Proceeds from debt issuance | 655 | 627 |
Debt issuance costs | (24.4) | (23.5) |
Payments under long-term lease obligations | 0 | (139.5) |
Payments under finance and capital lease obligations | (37) | (38.1) |
Other, net | (0.7) | (2.3) |
Net cash provided from financing activities | 220.5 | (104.6) |
Increase in cash, cash equivalents and restricted cash | 31.9 | (6.1) |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 392.9 | 37.3 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 270.3 | 640.4 |
Income taxes paid (refunded), net | 1.1 | (15.1) |
Reorganization items paid | $ 111.3 | $ 0 |
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 |
Beginning balance at Dec. 31, 2017 | $ (1,298.9) | $ 1,191.9 | $ 21.4 | $ (2,512.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | (121.4) | 0 | 0 | (121.4) |
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 | 0.7 | 0 | 0.7 | 0 |
Change in designated interest rate swaps | 11 | 0 | 11 | 0 |
Comprehensive (loss) income | (110.6) | 0 | 10.8 | (121.4) |
Share-based compensation | 4.3 | 4.3 | 0 | 0 |
Stock issued for pension contribution | 5.8 | 5.8 | 0 | 0 |
Stock issued to employee savings plan | 28.3 | 28.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (1.4) | (1.4) | 0 | 0 |
Ending balance at Mar. 31, 2018 | (1,337.2) | 1,228.9 | 33.9 | (2,600) |
Beginning balance at Dec. 31, 2017 | (1,298.9) | 1,191.9 | 21.4 | (2,512.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | (173.8) | |||
Other comprehensive loss, net of tax: | ||||
Change in pension and postretirement plans | 3.4 | |||
Comprehensive (loss) income | (152.5) | |||
Ending balance at Sep. 30, 2018 | (1,360.9) | 1,247.1 | 44.4 | (2,652.4) |
Beginning balance at Mar. 31, 2018 | (1,337.2) | 1,228.9 | 33.9 | (2,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | (93.7) | 0 | 0 | (93.7) |
Other comprehensive loss, net of tax: | ||||
Change in pension and postretirement plans | 5.9 | 0 | 5.9 | 0 |
Amortization of net unrealized gains on de-designated interest rate swaps | 0.5 | 0 | 0.5 | 0 |
Change in designated interest rate swaps | 3.7 | 0 | 3.7 | 0 |
Comprehensive (loss) income | (83.6) | 0 | 10.1 | (93.7) |
Share-based compensation | 3.1 | 3.1 | 0 | 0 |
Stock issued under equity distribution agreement | 11.1 | 0 | 0 | |
Taxes withheld on vested restricted stock and other | 0.1 | 0.1 | 0 | 0 |
Ending balance at Jun. 30, 2018 | (1,406.5) | 1,243.2 | 44 | (2,693.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | 41.3 | 0 | 0 | 41.3 |
Other comprehensive loss, net of tax: | ||||
Change in pension and postretirement plans | (1.6) | 0 | (1.6) | 0 |
Amortization of net unrealized gains on de-designated interest rate swaps | 0.6 | 0 | 0.6 | 0 |
Change in designated interest rate swaps | 1.4 | 0 | 1.4 | 0 |
Comprehensive (loss) income | 41.7 | 0 | 0.4 | 41.3 |
Share-based compensation | 2.8 | 2.8 | 0 | 0 |
Stock issued under equity distribution agreement | 1.1 | 0 | 0 | |
Ending balance at Sep. 30, 2018 | (1,360.9) | 1,247.1 | 44.4 | (2,652.4) |
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) income | (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 |
Change in designated interest rate swaps | (2.4) | 0 | (2.4) | 0 |
Comprehensive (loss) income | (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) income | (2,969.9) | |||
Net (loss) income | Accounting Standards Update 2016-02 | 48.7 | |||
Other comprehensive loss, net of tax: | ||||
Change in pension and postretirement plans | (0.9) | |||
Comprehensive (loss) income | (2,978.7) | |||
Ending balance at Sep. 30, 2019 | (1,883.3) | 1,252.1 | 26.8 | (3,162.2) |
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) income | (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) income | (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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | (115.5) | 0 | 0 | (115.5) |
Net (loss) income | Accounting Standards Update 2016-02 | 7.3 | |||
Other comprehensive loss, net of tax: | ||||
Change in pension and postretirement plans | (0.2) | 0 | (0.2) | 0 |
Amortization of net unrealized gains on de-designated interest rate swaps | (2.4) | 0 | (2.4) | 0 |
Comprehensive (loss) income | (118.1) | 0 | (2.6) | (115.5) |
Share-based compensation | 1.1 | 1.1 | 0 | 0 |
Taxes withheld on vested restricted stock and other | 0.1 | 0.1 | 0 | 0 |
Ending balance at Sep. 30, 2019 | $ (1,883.3) | $ 1,252.1 | $ 26.8 | $ (3,162.2) |
WINDSTREAM SERVICES, LLC CONSOL
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues and sales: | ||||
Revenues and sales: | $ 1,270.1 | $ 1,420.6 | $ 3,877.2 | $ 4,319.3 |
Costs and expenses: | ||||
Selling, general and administrative | 189 | 225.8 | 573.2 | 679.1 |
Depreciation and amortization | 262.2 | 383.8 | 809.7 | 1,136.3 |
Goodwill impairment | 0 | 0 | 2,712.3 | 0 |
Merger, integration and other costs | 1.8 | 9 | 7.2 | 30.4 |
Restructuring charges | 1.6 | 6.5 | 18.2 | 26 |
Total costs and expenses | 1,304.6 | 1,345 | 6,715.9 | 4,086.4 |
Operating (loss) income | (34.5) | 75.6 | (2,838.7) | 232.9 |
Other income (expense), net | 0.2 | 3.2 | (10) | 12.9 |
Net gain on early extinguishment of debt | 0 | 190.3 | 0 | 190.3 |
Reorganization items, net | (29.2) | 0 | (219.5) | 0 |
Interest expense (contractual interest for the three and nine months ended September 30, 2019 of $130.1 and $366.6, respectively) | (81.2) | (230) | (253.9) | (677.5) |
(Loss) income before income taxes | (144.7) | 39.1 | (3,322.1) | (241.4) |
Income tax benefit | 29.2 | 2.2 | 352.2 | 67.6 |
Net (loss) income | (115.5) | 41.3 | (2,969.9) | (173.8) |
Service revenues | ||||
Revenues and sales: | ||||
Revenues and sales: | 1,241.7 | 1,400.1 | 3,814.1 | 4,260.1 |
Costs and expenses: | ||||
Cost of services and products sold | 827 | 700.2 | 2,540.2 | 2,159.9 |
Product and fiber sales | ||||
Revenues and sales: | ||||
Revenues and sales: | 28.4 | 20.5 | 63.1 | 59.2 |
Costs and expenses: | ||||
Cost of services and products sold | 23 | 19.7 | 55.1 | 54.7 |
Windstream Services, LLC | ||||
Revenues and sales: | ||||
Revenues and sales: | 1,270.1 | 1,420.6 | 3,877.2 | 4,319.3 |
Costs and expenses: | ||||
Selling, general and administrative | 188.3 | 225.5 | 571.6 | 677.6 |
Depreciation and amortization | 262.2 | 383.8 | 809.7 | 1,136.3 |
Goodwill impairment | 0 | 0 | 2,712.3 | 0 |
Merger, integration and other costs | 1.8 | 9 | 7.2 | 30.4 |
Restructuring charges | 1.6 | 6.5 | 18.2 | 26 |
Total costs and expenses | 1,303.9 | 1,344.7 | 6,714.3 | 4,084.9 |
Operating (loss) income | (33.8) | 75.9 | (2,837.1) | 234.4 |
Other income (expense), net | 0.2 | 3.2 | (10) | 12.9 |
Net gain on early extinguishment of debt | 0 | 190.3 | 0 | 190.3 |
Reorganization items, net | (29.2) | 0 | (219.5) | 0 |
Interest expense (contractual interest for the three and nine months ended September 30, 2019 of $130.1 and $366.6, respectively) | (81.2) | (230) | (253.9) | (677.5) |
(Loss) income before income taxes | (144) | 39.4 | (3,320.5) | (239.9) |
Income tax benefit | 29 | 2.1 | 351.8 | 67.2 |
Net (loss) income | (115) | 41.5 | (2,968.7) | (172.7) |
Windstream Services, LLC | Service revenues | ||||
Revenues and sales: | ||||
Revenues and sales: | 1,241.7 | 1,400.1 | 3,814.1 | 4,260.1 |
Costs and expenses: | ||||
Cost of services and products sold | 827 | 700.2 | 2,540.2 | 2,159.9 |
Windstream Services, LLC | Product and fiber sales | ||||
Revenues and sales: | ||||
Revenues and sales: | 28.4 | 20.5 | 63.1 | 59.2 |
Costs and expenses: | ||||
Cost of services and products sold | $ 23 | $ 19.7 | $ 55.1 | $ 54.7 |
WINDSTREAM SERVICES, LLC CONS_2
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 366.6 | $ 130.1 |
WINDSTREAM SERVICES, LLC CONS_3
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net (loss) income | $ (115.5) | $ 41.3 | $ (2,969.9) | $ (173.8) |
Interest rate swaps: | ||||
Unrealized gains (losses) on designated interest rate swaps | 0 | 1.9 | (3.2) | 21.6 |
Amortization of net unrealized (gains) losses on de-designated interest rate swaps | (3.1) | 0.7 | (7.3) | 2.4 |
Income tax benefit (expense) | 0.7 | (0.6) | 2.6 | (6.1) |
Change in interest rate swaps | (2.4) | 2 | (7.9) | 17.9 |
Pension and postretirement plans: | ||||
Prior service credit arising during the period | 0 | 0 | 0 | 2.7 |
Change in net actuarial (loss) gain for employee benefit plans | 0 | 0 | (0.2) | 5.4 |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0 | 0.1 | 0 | 0.2 |
Amortization of prior service credits | (0.3) | (1.2) | (1) | (3.8) |
Income tax benefit (expense) | 0.1 | (0.5) | 0.3 | (1.1) |
Change in pension and postretirement plans | (0.2) | (1.6) | (0.9) | 3.4 |
Other comprehensive (loss) income | (2.6) | 0.4 | (8.8) | 21.3 |
Comprehensive loss | (118.1) | 41.7 | (2,978.7) | (152.5) |
Windstream Services, LLC | ||||
Net (loss) income | (115) | 41.5 | (2,968.7) | (172.7) |
Interest rate swaps: | ||||
Unrealized gains (losses) on designated interest rate swaps | 0 | 1.9 | (3.2) | 21.6 |
Amortization of net unrealized (gains) losses on de-designated interest rate swaps | (3.1) | 0.7 | (7.3) | 2.4 |
Income tax benefit (expense) | 0.7 | (0.6) | 2.6 | (6.1) |
Change in interest rate swaps | (2.4) | 2 | (7.9) | 17.9 |
Pension and postretirement plans: | ||||
Prior service credit arising during the period | 0 | 0 | 0 | 2.7 |
Change in net actuarial (loss) gain for employee benefit plans | 0 | 0 | (0.2) | 5.4 |
Amounts included in net periodic benefit cost: | ||||
Amortization of net actuarial loss | 0 | 0.1 | 0 | 0.2 |
Amortization of prior service credits | (0.3) | (1.2) | (1) | (3.8) |
Income tax benefit (expense) | 0.1 | (0.5) | 0.3 | (1.1) |
Change in pension and postretirement plans | (0.2) | (1.6) | (0.9) | 3.4 |
Other comprehensive (loss) income | (2.6) | 0.4 | (8.8) | 21.3 |
Comprehensive loss | $ (117.6) | $ 41.9 | $ (2,977.5) | $ (151.4) |
WINDSTREAM SERVICES, LLC CONS_4
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 385.1 | $ 355.7 |
Restricted cash | 7.8 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $25.9 and $24.8, respectively) | 556.2 | 653.1 |
Inventories | 70.7 | 82.4 |
Prepaid expenses and other | 196.4 | 159.7 |
Total current assets | 1,216.2 | 1,256.2 |
Goodwill | 61.4 | 2,773.7 |
Other intangibles, net | 1,110.5 | 1,213.1 |
Net property, plant and equipment | 3,582.4 | 4,920.9 |
Operating lease right-of-use assets | 4,066.8 | 0 |
Other assets | 84.1 | 94 |
Total Assets | 10,121.4 | 10,257.9 |
Current Liabilities: | ||
Current portion of long-term debt | 500 | 5,728.1 |
Current portion of long-term lease obligations | 0 | 4,570.3 |
Accounts payable | 298.5 | 503.6 |
Advance payments | 155.7 | 180.6 |
Accrued taxes | 64.8 | 87.4 |
Other current liabilities | 209.9 | 387.7 |
Total current liabilities | 1,228.9 | 11,457.7 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 21.5 | 615.2 |
Liabilities subject to compromise | 10,754.3 | 0 |
Total liabilities | 12,004.7 | 12,177.2 |
Commitments and Contingencies (See Note 16) | ||
Member Deficit: | ||
Additional paid-in capital | 1,252.1 | 1,250.4 |
Accumulated other comprehensive income | 26.8 | 35.6 |
Accumulated deficit | (3,162.2) | (3,205.3) |
Total member deficit | (1,883.3) | (1,919.3) |
Total Liabilities and Member Deficit | 10,121.4 | 10,257.9 |
Windstream Services, LLC | ||
Current Assets: | ||
Cash and cash equivalents | 385.1 | 355.7 |
Restricted cash | 7.8 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $25.9 and $24.8, respectively) | 556.2 | 653.1 |
Inventories | 70.7 | 82.4 |
Prepaid expenses and other | 196.4 | 159.7 |
Total current assets | 1,216.2 | 1,256.2 |
Goodwill | 61.4 | 2,773.7 |
Other intangibles, net | 1,110.5 | 1,213.1 |
Net property, plant and equipment | 3,582.4 | 4,920.9 |
Operating lease right-of-use assets | 4,066.8 | 0 |
Other assets | 84.1 | 94 |
Total Assets | 10,121.4 | 10,257.9 |
Current Liabilities: | ||
Current portion of long-term debt | 500 | 5,728.1 |
Current portion of long-term lease obligations | 0 | 4,570.3 |
Accounts payable | 298.5 | 503.6 |
Advance payments | 155.7 | 180.6 |
Accrued taxes | 64.8 | 87.4 |
Other current liabilities | 209.9 | 387.7 |
Total current liabilities | 1,228.9 | 11,457.7 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 21.5 | 615.2 |
Liabilities subject to compromise | 10,754.3 | 0 |
Total liabilities | 12,004.7 | 12,177.2 |
Commitments and Contingencies (See Note 16) | ||
Member Deficit: | ||
Additional paid-in capital | 1,244.7 | 1,244.2 |
Accumulated other comprehensive income | 26.8 | 35.6 |
Accumulated deficit | (3,154.8) | (3,199.1) |
Total member deficit | (1,883.3) | (1,919.3) |
Total Liabilities and Member Deficit | $ 10,121.4 | $ 10,257.9 |
WINDSTREAM SERVICES, LLC CONS_5
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 49.3 | $ 24.8 |
Windstream Services, LLC | ||
Accounts receivable, allowance for doubtful accounts | $ 49.3 | $ 24.8 |
WINDSTREAM SERVICES, LLC CONS_6
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (2,969.9) | $ (173.8) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 809.7 | 1,136.3 |
Provision for doubtful accounts | 55.1 | 26.3 |
Share-based compensation expense | 1.3 | 25.5 |
Net gain on early extinguishment of debt | 0 | (190.3) |
Non-cash reorganization items, net | 51.5 | 0 |
Deferred income taxes | (351.2) | (67.6) |
Goodwill impairment | 2,712.3 | 0 |
Noncash Debtor in Possession Facility Issuance Costs Expensed | 24.4 | 0 |
Other, net | 13.2 | 10.1 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (12.1) | (25.9) |
Prepaid expenses and other | (62.2) | 0.5 |
Accounts payable | 199.3 | (12.7) |
Accrued interest | (11.6) | 17.6 |
Accrued taxes | (2.4) | (3.4) |
Other current liabilities | 4.7 | (2.5) |
Other, net | (5.6) | 9 |
Net cash provided from operating activities | 464.9 | 756.2 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (628.9) | (603.2) |
Payments to Acquire Intangible Assets | (26.6) | 0 |
Acquisition of MASS, net of cash acquired | 0 | (46.9) |
Other, net | 2 | (7.6) |
Net cash used in investing activities | (653.5) | (657.7) |
Cash Flows from Financing Activities: | ||
Repayments of debt and swaps | (372.4) | (540.4) |
Proceeds from debt issuance | 655 | 627 |
Debt issuance costs | (24.4) | (23.5) |
Payments under long-term lease obligations | 0 | (139.5) |
Payments under finance and capital lease obligations | (37) | (38.1) |
Other, net | (0.7) | (2.3) |
Net cash provided from (used in) financing activities | 220.5 | (104.6) |
Increase (decrease) in cash, cash equivalents and restricted cash | 31.9 | (6.1) |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 392.9 | 37.3 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 270.3 | 640.4 |
Income taxes paid (refunded), net | 1.1 | (15.1) |
Reorganization items paid | 111.3 | 0 |
Windstream Services, LLC | ||
Cash Flows from Operating Activities: | ||
Net (loss) income | (2,968.7) | (172.7) |
Adjustments to reconcile net loss to net cash provided from operations: | ||
Depreciation and amortization | 809.7 | 1,136.3 |
Provision for doubtful accounts | 55.1 | 26.3 |
Share-based compensation expense | 1.3 | 25.5 |
Net gain on early extinguishment of debt | 0 | (190.3) |
Non-cash reorganization items, net | 51.5 | 0 |
Deferred income taxes | (351.2) | (67.6) |
Goodwill impairment | 2,712.3 | 0 |
Noncash Debtor in Possession Facility Issuance Costs Expensed | 24.4 | 0 |
Other, net | 13.2 | 10.1 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (12.1) | (25.9) |
Prepaid expenses and other | (62.2) | 0.5 |
Accounts payable | 199.3 | (12.7) |
Accrued interest | (11.6) | 17.6 |
Accrued taxes | (2.4) | (3.4) |
Other current liabilities | 4.7 | (2.4) |
Other liabilities | 8.4 | 7.1 |
Other, net | (5.6) | 9 |
Net cash provided from operating activities | 466.1 | 757.4 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (628.9) | (603.2) |
Payments to Acquire Intangible Assets | (26.6) | 0 |
Acquisition of MASS, net of cash acquired | 0 | (46.9) |
Other, net | 2 | (7.6) |
Net cash used in investing activities | (653.5) | (657.7) |
Cash Flows from Financing Activities: | ||
Distributions to Windstream Holdings, Inc. | (1.2) | (1.2) |
Contributions from Windstream Holdings, Inc. | 0 | 12.2 |
Repayments of debt and swaps | (372.4) | (540.4) |
Proceeds from debt issuance | 655 | 627 |
Debt issuance costs | (24.4) | (23.5) |
Payments under long-term lease obligations | 0 | (139.5) |
Payments under finance and capital lease obligations | (37) | (38.1) |
Other, net | (0.7) | (2.3) |
Net cash provided from (used in) financing activities | 219.3 | (105.8) |
Increase (decrease) in cash, cash equivalents and restricted cash | 31.9 | (6.1) |
Cash, Cash Equivalents and Restricted Cash: | ||
Beginning of period | 361 | 43.4 |
End of period | 392.9 | 37.3 |
Supplemental Cash Flow Disclosures: | ||
Interest paid, net of interest capitalized | 270.3 | 640.4 |
Income taxes paid (refunded), net | 1.1 | (15.1) |
Reorganization items paid | $ 111.3 | $ 0 |
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 |
Beginning balance at Dec. 31, 2017 | $ (1,298.9) | $ 1,191.9 | $ 21.4 | $ (2,512.2) | $ (1,298.9) | $ 1,187.1 | $ 21.4 | $ (2,507.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (121.4) | 0 | 0 | (121.4) | (121) | 0 | 0 | (121) |
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 | 0.7 | 0 | 0.7 | 0 | 0.7 | 0 | 0.7 | 0 |
Change in designated interest rate swaps | 11 | 0 | 11 | 0 | 11 | 0 | 11 | 0 |
Comprehensive loss | (110.6) | 0 | 10.8 | (121.4) | (110.2) | 0 | 10.8 | (121) |
Stock issued for pension contribution | 5.8 | 5.8 | 0 | 0 | 5.8 | 5.8 | 0 | 0 |
Stock issued to employee savings plan | 28.3 | 28.3 | 0 | 0 | 28.3 | 28.3 | 0 | 0 |
Share-based compensation | 4.3 | 4.3 | 0 | 0 | 4.3 | 4.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | (1.4) | (1.4) | 0 | 0 | (1.4) | (1.4) | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (0.4) | (0.4) | 0 | 0 | ||||
Ending balance at Mar. 31, 2018 | (1,337.2) | 1,228.9 | 33.9 | (2,600) | (1,337.2) | 1,223.7 | 33.9 | (2,594.8) |
Beginning balance at Dec. 31, 2017 | (1,298.9) | 1,191.9 | 21.4 | (2,512.2) | (1,298.9) | 1,187.1 | 21.4 | (2,507.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (173.8) | (172.7) | ||||||
Other comprehensive loss, net of tax: | ||||||||
Change in pension and postretirement plans | 3.4 | 3.4 | ||||||
Comprehensive loss | (152.5) | (151.4) | ||||||
Ending balance at Sep. 30, 2018 | (1,360.9) | 1,247.1 | 44.4 | (2,652.4) | (1,360.9) | 1,241.2 | 44.4 | (2,646.5) |
Beginning balance at Mar. 31, 2018 | (1,337.2) | 1,228.9 | 33.9 | (2,600) | (1,337.2) | 1,223.7 | 33.9 | (2,594.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (93.7) | 0 | 0 | (93.7) | (93.2) | 0 | 0 | (93.2) |
Other comprehensive loss, net of tax: | ||||||||
Change in pension and postretirement plans | 5.9 | 0 | 5.9 | 0 | 5.9 | 0 | 5.9 | 0 |
Amortization of net unrealized gains on de-designated interest rate swaps | 0.5 | 0 | 0.5 | 0 | 0.5 | 0 | 0.5 | 0 |
Change in designated interest rate swaps | 3.7 | 0 | 3.7 | 0 | 3.7 | 0 | 3.7 | 0 |
Comprehensive loss | (83.6) | 0 | 10.1 | (93.7) | (83.1) | 0 | 10.1 | (93.2) |
Stock issued under equity distribution agreement | 11.1 | 0 | 0 | 11.1 | 11.1 | 0 | 0 | |
Share-based compensation | 3.1 | 3.1 | 0 | 0 | 3.1 | 3.1 | 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. | (0.5) | (0.5) | 0 | 0 | ||||
Ending balance at Jun. 30, 2018 | (1,406.5) | 1,243.2 | 44 | (2,693.7) | (1,406.5) | 1,237.5 | 44 | (2,688) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 41.3 | 0 | 0 | 41.3 | 41.5 | 0 | 0 | 41.5 |
Other comprehensive loss, net of tax: | ||||||||
Change in pension and postretirement plans | (1.6) | 0 | (1.6) | 0 | (1.6) | 0 | (1.6) | 0 |
Amortization of net unrealized gains on de-designated interest rate swaps | 0.6 | 0 | 0.6 | 0 | 0.6 | 0 | 0.6 | 0 |
Change in designated interest rate swaps | 1.4 | 0 | 1.4 | 0 | 1.4 | 0 | 1.4 | 0 |
Comprehensive loss | 41.7 | 0 | 0.4 | 41.3 | 41.9 | 0 | 0.4 | 41.5 |
Stock issued under equity distribution agreement | 1.1 | 0 | 0 | 1.1 | 1.1 | 0 | 0 | |
Share-based compensation | 2.8 | 2.8 | 0 | 0 | 2.8 | 2.8 | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | (0.2) | (0.2) | 0 | 0 | ||||
Ending balance at Sep. 30, 2018 | (1,360.9) | 1,247.1 | 44.4 | (2,652.4) | (1,360.9) | 1,241.2 | 44.4 | (2,646.5) |
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) income | (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 |
Change 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) income | (2,969.9) | (2,968.7) | ||||||
Net (loss) income | Accounting Standards Update 2016-02 | 48.7 | |||||||
Other comprehensive loss, net of tax: | ||||||||
Change in pension and postretirement plans | (0.9) | (0.9) | ||||||
Comprehensive loss | (2,978.7) | (2,977.5) | ||||||
Ending balance at Sep. 30, 2019 | (1,883.3) | 1,252.1 | 26.8 | (3,162.2) | (1,883.3) | 1,244.7 | 26.8 | (3,154.8) |
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) income | (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 |
Change in designated interest rate swaps | 0 | 0 | 0 | 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] | ||||||||
Net (loss) income | (115.5) | 0 | 0 | (115.5) | (115) | 0 | 0 | (115) |
Net (loss) income | Accounting Standards Update 2016-02 | 7.3 | |||||||
Other comprehensive loss, net of tax: | ||||||||
Change in pension and postretirement plans | (0.2) | 0 | (0.2) | 0 | (0.2) | 0 | (0.2) | 0 |
Amortization of net unrealized gains on de-designated interest rate swaps | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 | (2.4) | 0 |
Change in designated interest rate swaps | 0 | 0 | 0 | 0 | ||||
Comprehensive loss | (118.1) | 0 | (2.6) | (115.5) | (117.6) | 0 | (2.6) | (115) |
Share-based compensation | 1.1 | 1.1 | 0 | 0 | 1.1 | 1.1 | 0 | 0 |
Taxes withheld on vested restricted stock and other | 0.1 | 0.1 | 0 | 0 | ||||
Distributions payable to Windstream Holdings, Inc. | (0.4) | (0.4) | 0 | 0 | ||||
Ending balance at Sep. 30, 2019 | $ (1,883.3) | $ 1,252.1 | $ 26.8 | $ (3,162.2) | $ (1,883.3) | $ 1,244.7 | $ 26.8 | $ (3,154.8) |
Preparation of Interim Financia
Preparation of Interim Financial Statements: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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 150,000 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, 2018 , 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, 2018 , which was filed with the SEC on March 15, 2019 . 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. 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. Recent Accounting Standards Leases – In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as modified by subsequently issued ASU Nos. 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively “ASU 2016-02”). ASU 2016-02 requires recognition of right-of-use assets and lease liabilities on the balance sheet. Most prominent among the changes in ASU 2016-02 is the lessees’ recognition of a right-of-use asset and a lease liability for operating leases. The right-of-use asset and lease liability are initially measured based on the present value of committed lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Expenses related to operating leases are recognized on a straight-line basis, while those related to financing leases are recognized under a front-loaded approach in which interest expense and amortization of the right-of-use asset are presented separately in the statement of operations. Similarly, lessors are required to classify leases as sales-type, finance or operating with classification affecting the pattern of income recognition. Classification for both lessees and lessors is based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. ASU 2016-02 also requires qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASU 2016-02 using the modified retrospective transition method. Under the modified retrospective transition method, we recognized the cumulative effect of initial adoption as an adjustment to our opening accumulated deficit balance at the adoption date. Comparative information for prior periods has not been restated and continues to be reported in accordance with Topic 840. We elected the practical expedients permitted under the transition guidance within ASU 2016-02 which, among other things, allowed us to carry forward the historical lease classification for capital and operating leases. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. As a practical expedient, we elected not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Exclusive of our contractual arrangement with Uniti Group, Inc. (“Uniti”) described below, our existing operating lease portfolio primarily consists of fiber, colocation, real estate and equipment leases. Upon adoption of this standard, we recorded an additional lease liability of $408.4 million attributable to our operating leases based on the present value of the remaining minimum lease payments with an increase to leased assets or right-of-use assets of $382.5 million in our consolidated balance sheet. Included in the operating right-of-use assets is $6.6 million of previously recorded prepaid rent and $6.7 million in deferred rent arising from non-level rent payments. The difference between these amounts was recorded as an adjustment to our accumulated deficit. We also recorded a cumulative effect adjustment of approximately $3.0 billion decreasing our accumulated deficit due to reassessing the accounting treatment of our arrangement with Uniti and certain of its subsidiaries. The transaction with Uniti had been accounted for as a failed spin-leaseback financing arrangement for financial reporting purposes due to prohibited continuing involvement. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer preclude the application of spin-leaseback accounting to the contractual arrangement. As a result, we de-recognized the remaining net book value of assets transferred to Uniti of approximately $1.3 billion , recognized a right-of-use asset of approximately $3.9 billion equaling the adjusted Uniti liability, which decreased by $0.7 billion and recorded a deferred tax liability of approximately $0.3 billion in accordance with the standard’s transition guidance as this arrangement is now accounted for as an operating lease. 1. Preparation of Interim Financial Statements, Continued: During the second quarter of 2019, management identified an immaterial error in the cumulative effect adjustment recorded related to Windstream’s adoption of ASU 2016-02. Specifically, the net book value of certain assets transferred to Uniti had not been properly de-recognized as of January 1, 2019, resulting in an overstatement of net property, plant and equipment of $33.8 million , an overstatement of deferred income tax liabilities of $8.5 million and an overstatement of the cumulative effect adjustment recorded to accumulated deficit of $25.3 million . The accompanying consolidated statement of shareholders’ deficit for the period January 1, 2019 to March 31, 2019 has been revised to correct for this error. As a result, the cumulative effect adjustment for the adoption of ASU 2016-02 changed from the previously reported amount of $3,038.3 million to $3,013.0 million . In adopting ASU 2016-02, we also reassessed our accounting treatment for the December 2018 sale of certain fiber assets in Minnesota to Arvig Enterprises, Inc. accounted for as a financing transaction due to our continuing involvement. ASU 2016-02 no longer precludes partial sale recognition. As a result, we de-recognized $7.5 million net book value for the portion of the fiber assets Windstream no longer controls and the related $41.5 million financing lease obligation. The difference between these amounts was recorded as an adjustment to our accumulated deficit. The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,306.7 ) $ 3,614.2 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 387.7 $ (15.4 ) $ 372.3 Deferred income taxes $ 104.3 $ 292.3 $ 396.6 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 615.2 $ (58.8 ) $ 556.4 Accumulated deficit $ (3,205.3 ) $ 3,013.0 $ (192.3 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations is as follows: Three Months Ended September 30, 2019 (Millions) Under ASC 840 Effect of Adoption of As reported Costs and expenses Cost of services $ 658.3 $ 168.7 $ 827.0 Depreciation and amortization $ 329.5 $ (67.3 ) $ 262.2 Interest expense $ 192.3 $ (111.1 ) $ 81.2 Income tax benefit (expense) $ 31.6 $ (2.4 ) $ 29.2 Net (loss) income $ (122.8 ) $ 7.3 $ (115.5 ) 1. Preparation of Interim Financial Statements, Continued: Nine Months Ended September 30, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 2,033.9 $ 506.3 $ 2,540.2 Depreciation and amortization $ 1,043.8 $ (234.1 ) $ 809.7 Interest expense $ 591.1 $ (337.2 ) $ 253.9 Income tax benefit (expense) $ 368.5 $ (16.3 ) $ 352.2 Net (loss) income $ (3,018.6 ) $ 48.7 $ (2,969.9 ) As presented in the tables above, the increases in cost of services were due to the recognition of annual straight-line expense attributable to the contractual arrangement with Uniti. The decreases in depreciation expense resulted from de-recognizing the remaining net book value of network assets transferred to Uniti and the decreases in interest expense were due to no longer accounting for the contractual arrangement with Uniti as a failed spin-leaseback financing arrangement. As a result of the change in accounting for our arrangement with Uniti from a financing to an operating lease, our consolidated statement of cash flows for the nine months ended September 30, 2019 reflected a decrease in operating cash flows of $156.7 million attributable to no longer classifying a portion of the cash rental payments made to Uniti as a financing outflow as was the case for periods prior to the adoption of ASU 2016-02 as well as a reduction in reported cash paid for interest of $337.2 million . See Note 5 for additional disclosures about the nature of our leases, including significant terms and conditions, total lease costs, maturity of lease liabilities and receivables reconciled to the consolidated balance sheet, weighted-average remaining lease term, weighted-average discount rate, cash paid for amounts and significant rights and obligations under leases that have not commenced. Derivatives and Hedging - Change in Benchmark Interest Rate - In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”) . This standard adds the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting. SOFR is the preferred alternative reference rate to the London Interbank Offered Rate (“LIBOR”). As permitted, we early adopted ASU 2017-12 effective January 1, 2019 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“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. 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. 1. Preparation of Interim Financial Statements, Continued: Supplemental Guarantor Financial Information - During the second quarter of 2019, we early adopted the SEC’s final rules that amended the financial statement disclosure requirements for subsidiary issuers and guarantors of registered debt securities under Rule 3-10 of Regulation S-X. The final rule simplified the disclosure requirements related to our registered unsecured debt securities and permitted the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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) | 9 Months Ended |
Sep. 30, 2019 | |
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. As a result, all long-term debt and remaining obligations under the contractual arrangement with Uniti were classified as current liabilities in the accompanying consolidated balance sheet as of December 31, 2018. 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. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Subject to certain exceptions, under the Bankruptcy Code, the Debtors may assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. 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 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. 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 7-8, 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. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: 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, subject to an adjustment, required by the Bankruptcy Court, that in the event that Windstream’s proposed plan of reorganization is not confirmed, the Backstop Premium shall be reduced to 4 percent , or $30 million . 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. 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. As of September 30, 2019, 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 December 31, 2019, the Debtors have adjusted their recorded liabilities to amounts consistent with the estimates 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 retain the exclusive right to file the Plan through and including June 22, 2020, as well as the right to seek further extensions of such period up to the statutory maximum date of August 25, 2020. The Plan can be supplemented and revised based upon discussions with the Debtors’ creditors and other interested parties and in response to creditor claims and objections and the requirements of the Bankruptcy Code or the Bankruptcy Court. There can be no assurance that the Debtors will be able to secure requisite accepting votes for the Plan or that confirmation of the Plan by the Bankruptcy Court will occur. On June 24, 2020, the Bankruptcy Court is scheduled to hold a confirmation hearing to consider the approval of the Debtors’ Plan. The Plan will be subject to usual and customary conditions to plan confirmation, including obtaining the requisite vote of creditors and approval of the Bankruptcy Court. 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; 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: 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. 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. 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) obtain the required creditor acceptance and confirmation under the Bankruptcy Code of our plan of reorganization, (ii) successfully implement such plan of reorganization, (iii) address debt and other liabilities through the bankruptcy process, (iv) generate sufficient cash flow from operations, and (v) 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. A confirmed 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. 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: Effective on February 25, 2019, we began to apply the provisions of Accounting Standards Codification (“ASC”) 852, Reorganizations, 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 undersecured, or will be impaired under the plan of reorganization, the entire amount of the claim is included with prepetition claims in liabilities subject to compromise. In addition, cash used for reorganization items is disclosed. 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. 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. 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 4, “Debt,” our debtor-in-possession facilities have priority over all the other debt obligations of Windstream Services and its subsidiaries. Both the March 2020 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 sheet as of September 30, 2019 . 2. Chapter 11 Filing, Going Concern and Other Related Matters, Continued: As also discussed in Note 4, “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 September 30, 2019 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. 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. Liabilities subject to compromise at September 30, 2019 consisted of the following: (Millions) Accounts payable $ 346.6 Advance payments 8.7 Accrued taxes 20.2 Other current liabilities 102.7 Deferred taxes 42.5 Operating lease liabilities 4,087.4 Pension and other employee benefit plan obligations 316.9 Other liabilities 201.1 Accounts payable, accrued and other liabilities 5,126.1 Debt subject to compromise 5,599.3 Accrued interest on debt subject to compromise 28.9 Long-term debt and accrued interest 5,628.2 Total liabilities subject to compromise $ 10,754.3 Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan. We will continue to evaluate the amount and classification of our pre-petition liabilities. 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 May 15, 2020, the Debtors have received approximately 8,250 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 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 incurred as a result of the Chapter 11 Cases presented separately in the accompanying consolidated statement of operations for the three and nine-month periods ended September 30, 2019 were as follows: (Millions) Three Months Ended Nine Months Ended Write-off of deferred long-term debt issuance costs $ — $ 54.7 Write-off of original issue net discount on debt subject to compromise — 27.1 Debtor-in-possession financing costs 1.0 43.4 Professional fees and other bankruptcy related costs 32.4 99.1 Provision for estimated damages on rejected executory contracts 0.2 25.5 Gain on write-off of net lease liabilities for rejected leases (0.2 ) (17.6 ) Gain on vendor settlements of liabilities subject to compromise (4.2 ) (12.7 ) Reorganization items, net $ 29.2 $ 219.5 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 were fees of $16.9 million that were netted against the $500.0 million proceeds received from issuance of the DIP Facility. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets: Goodwill and Other Intangible Assets (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets: Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets and liabilities, and the excess of the total purchase price over the amounts assigned to net identifiable assets has been recorded as goodwill. As previously discussed in Note 1, effective January 1, 2019, we adopted the new leasing standard and changed the accounting treatment for our arrangement with Uniti from a financing to an operating lease, the effects of which resulted in a cumulative effect adjustment to equity of approximately $3.0 billion and a corresponding increase in the carrying values of our reporting units as of that date. As further discussed in Note 2, on February 25, 2019, we filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Based on these developments, we performed a quantitative goodwill impairment test during the first quarter of 2019 and compared the fair value to the carrying value for each of our three reporting units, consisting of Consumer & Small Business, Enterprise and Wholesale. 3. Goodwill and Other Intangible Assets, Continued: We estimated the fair value of our three reporting units using an income approach. The income approach is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. Due to the additional risks and uncertainties to our business operations following the filing of the Chapter 11 Cases, during the first quarter of 2019, we revised our long-range financial forecasts for each of our reporting units from the long-range forecasts used in our most recently completed annual goodwill impairment assessment as of November 1, 2018. Changes to our long range forecast for 2019 and future periods primarily included: (1) slightly lowering our forecasted revenue and profitability levels for our consumer and small business operations to account for the potential impacts of the Chapter 11 Cases on customer churn, as well as revising the incremental effects from pricing strategies designed to improve revenue trends; (2) lowering our forecasted revenue and profitability levels in our enterprise business to account for the potential impacts of the Chapter 11 Cases on our ability to attract new customers and minimize customer churn, revising the incremental effects of pricing strategies to improve revenue trends, and lowering expected improvements in our cost structure due to increased uncertainty in completing various planned initiatives that are dependent on support from key vendors; and (3) reducing our forecasted revenue and profitability levels for our wholesale business to account for the potential impacts of the Chapter 11 Cases by revising the incremental effects from monetizing unused or underutilized fiber assets, revising the incremental effects of pricing pressures on our legacy service offerings and lowering incremental improvements in our cost structure for various planned initiatives that are dependent on support from key vendors. The results of the goodwill impairment test indicated that the carrying values of our Consumer & Small Business, Enterprise and Wholesale reporting units exceeded their fair values. Accordingly, during the first quarter of 2019, we recorded an impairment of all remaining goodwill in our Consumer & Small Business reporting unit of $903.4 million , an impairment of all remaining goodwill in our Enterprise reporting unit of $996.2 million , and an impairment of goodwill in our Wholesale reporting unit of $439.4 million , representing the excess of the carrying value from each reporting unit’s fair value. As further described in Note 15, effective April 1, 2019, we implemented a new business unit organizational structure resulting in a change in our reportable operating segments and reporting units and reallocated the remaining goodwill of the former Wholesale reporting unit on a relative fair value to our new Kinetic, Enterprise and Wholesale reporting units. We also confirmed, immediately before the reorganization and reallocation of goodwill, that no further impairment existed in the former Wholesale reporting unit. We performed a quantitative goodwill impairment test as of April 1, 2019, which compared for each reporting unit its fair value to its carrying value. We estimated the fair value of our new reporting units using an income approach based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. The results of the goodwill impairment test indicated that the carrying values of our Kinetic and Enterprise reporting units exceeded their fair values. Accordingly, during the second quarter of 2019, we recorded an impairment of all goodwill allocated to our Kinetic reporting unit of $254.3 million and an impairment of all goodwill allocated to our Enterprise reporting unit of $119.0 million , representing the excess of the carrying value from each reporting unit’s fair value. The fair value of the Wholesale reporting unit exceeded its carrying value and was not at risk of a goodwill impairment at this time. 3. Goodwill and Other Intangible Assets, Continued: Goodwill assigned to our operating segments and changes in the carrying amount of goodwill by reportable segment were as follows: (Millions) Kinetic Consumer & Small Business Enterprise Wholesale Total Balance at December 31, 2018: Goodwill $ — $ 2,321.2 $ 996.2 $ 1,297.1 $ 4,614.5 Accumulated impairment loss — (1,417.8 ) — (423.0 ) (1,840.8 ) Balance at December 31, 2018, net — 903.4 996.2 874.1 2,773.7 Changes during the period: Goodwill impairment in first quarter — (903.4 ) (996.2 ) (439.4 ) (2,339.0 ) Reallocation adjustment 254.3 — 119.0 (373.3 ) — Goodwill impairment in second quarter (254.3 ) — (119.0 ) — (373.3 ) Balance at September 30, 2019: Goodwill 254.3 2,321.2 1,115.2 923.8 4,614.5 Accumulated impairment loss (254.3 ) (2,321.2 ) (1,115.2 ) (862.4 ) (4,553.1 ) Balance at September 30, 2019, net $ — $ — $ — $ 61.4 $ 61.4 Indefinite-lived intangible assets were as follows: (Millions) September 30, December 31, FCC Spectrum licenses (a) $ 26.6 $ — (a) During 2019, we acquired radio frequency spectrum in the 24 gigahertz (“GHz”) and 28 GHz fifth-generation (“5G”) airwave auctions conducted by the FCC. 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 an indefinite-lived asset. Other intangible assets subject to amortization were as follows at: September 30, 2019 December 31, 2018 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (446.7 ) $ 838.4 $ 1,285.1 $ (414.6 ) $ 870.5 Customer lists 1,758.5 (1,541.0 ) 217.5 1,758.5 (1,450.4 ) 308.1 Cable franchise rights 17.3 (11.7 ) 5.6 17.3 (10.3 ) 7.0 Trade names 21.0 (5.4 ) 15.6 21.0 (3.9 ) 17.1 Developed technology and software 18.0 (11.2 ) 6.8 18.0 (7.7 ) 10.3 Patents 10.6 (10.6 ) — 10.6 (10.5 ) 0.1 Balance $ 3,110.5 $ (2,026.6 ) $ 1,083.9 $ 3,110.5 $ (1,897.4 ) $ 1,213.1 3. Goodwill and Other Intangible Assets, Continued: Methodology and useful lives for intangible assets subject to amortization were as follows as of September 30, 2019 : Intangible Assets Amortization Methodology Estimated Useful Life Franchise rights straight-line 30 years Customer lists sum of years digits 5.5 - 15 years Cable franchise rights straight-line 15 years Trade names straight-line 1-10 years Developed technology and software straight-line 3-5 years Patents straight-line 3 years Amortization expense for intangible assets subject to amortization was $42.2 million and $129.2 million for the three and nine-month periods ended September 30, 2019 , respectively, as compared to $56.1 million and $171.2 million for the same periods in 2018 . Amortization expense for intangible assets subject to amortization is estimated to be as follows for each of the five years ended December 31: Year (Millions) 2019 (excluding the nine months ended September 30, 2019) $ 41.5 2020 $ 133.5 2021 $ 100.8 2022 $ 71.0 2023 $ 58.6 No other long-lived assets including our other intangible assets were impaired as a result of the adoption of the new leasing standard, filing of the Chapter 11 Cases, or change in operating segments. |
Debt_ Debt_ (Notes)
Debt: Debt: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt: Event of Default and Chapter 11 Cases – As discussed in Notes 2 and 16, on February 15, 2019, Judge Jessie 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. As a result, all long-term debt and remaining obligations under the contractual arrangement with Uniti have been classified as current liabilities in the accompanying consolidated balance sheet as of December 31, 2018. 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. 4. Debt, Continued: Debt incurred by Windstream Services and its subsidiaries was as follows at: (Millions) September 30, December 31, Issued by Windstream Services: Superpriority debtor-in-possession term loan facility $ 500.0 $ — Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) 1,180.5 1,180.5 Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 568.4 568.4 Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) 802.0 1,017.0 Senior First Lien Notes – 8.625%, due October 31, 2025 (c) (f) 600.0 600.0 Senior Second Lien Notes – 10.500%, due June 30, 2024 (d) (f) (h) 414.9 414.9 Senior Second Lien Notes – 9.000%, due June 30, 2025 (d) (f) (h) 802.0 802.0 Debentures and notes, without collateral: 2020 Notes – 7.750%, due October 15, 2020 (f) (h) 78.1 78.1 2021 Notes – 7.750%, due October 1, 2021 (f) (h) 70.1 70.1 2022 Notes – 7.500%, due June 1, 2022 (f) (h) 36.2 36.2 2023 Notes – 7.500%, due April 1, 2023 (f) (h) 34.4 34.4 2023 Notes – 6.375%, due August 1, 2023 (f) (h) 806.9 806.9 2024 Notes – 8.750%, due December 15, 2024 (f) (h) 105.8 105.8 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (e) 100.0 100.0 Net discount on long-term debt (g) — (28.6 ) Unamortized debt issuance costs (g) — (57.6 ) Long-term debt prior to reclassification to liabilities subject to compromise 6,099.3 5,728.1 Less current portion (500.0 ) (5,728.1 ) Less amounts reclassified to liabilities subject to compromise (5,599.3 ) — Total long-term debt $ — $ — Prior to the filing of the Chapter 11 Cases, additional information with respect to our debt obligations was as follows: (a) 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) On January 3, 2019, Windstream Services’ reduced future maturities of its revolving line of credit of $312.0 million using proceeds received from the sale of the Consumer CLEC business. (c) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a first priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. (d) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a second priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. (e) These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. 4. Debt, Continued: (f) Windstream Services may call the remaining aggregate principal amounts of these debentures and notes at various premiums upon early redemption. (g) The net discount balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. (h) 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. 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. As of September 30, 2019 , $500.0 million was outstanding under the Term Loan Facility and no amounts were outstanding under the Revolving Facility. Considering letters of credit of $28.7 million and $57.8 million reserved for potential professional fees, the amount available for borrowing under the Revolving Facility was $413.5 million as of September 30, 2019 . 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. 4. Debt, Continued: 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. 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. The incremental Tranche B7 term loan matures on February 17, 2024 and was issued at a price of 99.5 percent of the principal amount of the loan. 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. LIBOR for the Tranche B7 term loan shall at no time be less than 0.75 percent . The Tranche B7 term loan was subject to quarterly amortization payments in an aggregate amount equal to 0.25 percent of the initial principal amount of such term loans, with the remaining balance payable at maturity. The incremental Tranche B6 term loan matures on March 29, 2021. 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 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 will range 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 and retired $370.0 million of borrowings during the period January 1, 2019 to February 24, 2019. Comparatively, during the first nine months of 2018 , Windstream Services borrowed $627.0 million under the revolving line of credit in its senior secured credit facility and retired $372.0 million of these borrowings. Borrowings under the revolving line of credit included $150.0 million for a one-time mandatory redemption payment applicable to the 2024 Notes paid on February 26, 2018. Letters of credit of $1.1 million were outstanding at September 30, 2019 . During the first nine months of 2019 , the variable interest rate on the revolving line of credit ranged from 4.38 percent to 8.50 percent , and the weighted average rate on amounts outstanding was 7.59 percent during the period. Comparatively, the variable interest rate ranged from 3.40 percent to 6.25 percent during the first nine months of 2018 with a weighted average rate on amounts outstanding during the period of 3.90 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 September 30, 2019 , 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. 4. Debt, Continued: Net Gain on Early Extinguishment of Debt In August 2018, Windstream Services completed exchange offers for (1) its 7.75 percent senior notes due October 15, 2020 (“2020 Notes”) for new 10.50 percent senior second lien notes due June 30, 2024 (the “New 2024 Notes”) and (2) its 7.75 percent senior notes due October 1, 2021 (“2021 Notes”), 7.50 percent senior notes due June 1, 2022 (“2022 Notes”), 7.50 percent senior notes due April 1, 2023 (“April 2023 Notes”), 6.375 percent senior notes due August 1, 2023 (“August 2023 Notes”) and 8.75 percent senior notes due December 15, 2024 (“2024 Notes”) for new 9.00 percent senior second lien notes due June 30, 2025 (the “New 2025 Notes”) as follows: • accepted for exchange $414.9 million aggregate principal amount of 2020 Notes in exchange for $414.9 million aggregate principal amount of New 2024 Notes. • accepted for exchange $18.8 million aggregate principal amount of 2021 Notes, $5.3 million aggregate principal amount of 2022 Notes, $86.0 million aggregate principal amount of 2023 Notes, $340.7 million aggregate principal amount of August 2023 Notes, and $578.6 million aggregate principal amount of 2024 Notes, in exchange for $802.0 million aggregate principal amount of New 2025 Notes. In completing the exchange transactions, Windstream Services incurred $18.4 million in arrangement, legal and other third-party fees. The exchanges of the 2020 and 2021 Notes were accounted for as a debt modification, and the remaining exchanges of 2022 Notes, April 2023 Notes, August 2023 Notes and 2024 Notes were accounted for as a debt extinguishment. In assessing the accounting treatment for the debt exchanges, we determined that no concessions were granted by our creditors due to the additional collateral and securitization provided to holders of the new notes, as well as consideration of other qualitative factors. For the exchanges accounted for under the extinguishment method of accounting, Windstream Services recognized a net gain of $190.3 million , consisting of the net principal reduction of $226.0 million reduced by the write-off of a portion of the unamortized discount and debt issuance costs related to the original notes of $35.7 million . Of the total legal and other third-party fees incurred, $6.5 million were expensed as additional interest expense under debt modification accounting while the remaining $11.9 million of fees were capitalized as debt issuance costs in accordance with the extinguishment method of accounting. Interest Expense Interest expense was as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Interest expense - long-term debt $ 82.9 $ 112.5 $ 259.6 $ 320.1 Interest expense - long-term lease obligations: Telecommunications network assets — 116.2 — 352.1 Real estate contributed to pension plan 1.5 1.5 4.6 4.6 Impact of interest rate swaps (3.0 ) (1.3 ) (8.9 ) (1.3 ) Interest on finance leases and other 1.1 1.9 3.4 4.4 Less capitalized interest expense (1.3 ) (0.8 ) (4.8 ) (2.4 ) Total interest expense $ 81.2 $ 230.0 $ 253.9 $ 677.5 |
Leases Leases (Notes)
Leases Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases As previously discussed in Note 1, we adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective transition method. We lease network assets and equipment, real estate, office space and office equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and nonlease components, which are generally accounted for separately. For certain agreements in which we lease space for data storage and communications equipment within data centers, central offices of other interexchange carriers and alternative access providers, we account for the lease and nonlease components as a single lease component when the timing and pattern of transfer of the lease and nonlease components are identical, and the lease classification would have been an operating lease absent the combination. Windstream uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates are based on Windstream’s unsecured rates, adjusted by adding the average credit spread percentage of its traded debt to the risk-free rate at maturity to approximate what Windstream would have to borrow on a collateralized basis over a similar period of time as the recognized lease term. Windstream applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term and the reporting entity in which the lease resides. Certain of our lease agreements include rental payments adjusted periodically for inflation. Lease liabilities are not remeasured as a result of changes to the inflation index. Changes to the inflation index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating Leases - Our operating leases, for network assets and equipment, office space, office equipment and real estate, have remaining lease terms of 1 to 30 years , some of which may include one or more options to renew with renewal terms that can extend the lease term from 1 to 10 years or more. The exercise of lease renewal options is at our sole discretion. At inception of a lease, the lease term is generally equal to the initial lease term as a renewal is not reasonably certain at inception. Subsequent renewals are treated as lease modifications. Due to the nature and expected use of the leased assets, exercise of renewal options is reasonably certain for month-to-month fiber, colocation, point of presence and rack space leases. The lease term is based on the average lease term for similar assets or expected period of use of the underlying asset. We apply a portfolio approach to effectively account for the operating lease right-of-use asset and liability for these low dollar, high volume leases. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Leaseback of Telecommunication Network Assets - Under our contractual arrangement with Uniti, Windstream Holdings has the exclusive right to use certain telecommunications network assets, including fiber and copper networks, for an initial term of 15 years ending in April 2030, with up to four, five-year renewal options. The contractual arrangement with Uniti provides for a current annual payment of $659.0 million paid in equal monthly installments in advance with an annual escalator of 0.5 percent . Future payments due under the contractual arrangement reset to fair market rates upon Windstream Holdings’ execution of the renewal options. The remaining term of the contractual arrangement is 10.6 years with a discount rate of 13.9 percent . Finance Leases - Finance leases consist principally of facilities and equipment for use in our operations. Generally, lease agreements that include a bargain purchase option, transfer of ownership, contractual lease term equal to or greater than 75 percent of the remaining estimated economic life of the leased facilities or equipment or minimum lease payments equal to or greater than 90 percent of the fair value of the leased facilities or equipment are accounted for as finance leases. Leaseback of Real Estate Contributed to Pension Plan - We lease certain real property contributed to the Windstream Pension Plan. The lease agreements provide for the continued use of the properties by our operating subsidiaries and include initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.0 million . The lease agreements provide for annual rent increases ranging from 2.0 percent to 3.0 percent over the initial lease term and may be renewed for up to three additional five-year terms. The properties are managed on behalf of the Windstream Pension Plan by an independent fiduciary. Due to Windstream Services’ ability to repurchase the property by ceasing all but de minimis operations at the location, control of the property has not transferred and the transaction continues to be accounted for as a financing obligation. Accordingly, the properties continue to be reported as assets of Windstream and depreciated over their remaining useful lives until termination of the lease agreement. The long-term lease obligation, initially equal to the fair value of the properties at the date of contribution, of $72.7 million as of September 30, 2019 is presented in liabilities subject to compromise. As a result of using the effective interest rate method, when lease payments are made to the Windstream Pension Plan, a portion of the payment is charged to interest expense and the remaining portion is recorded as an accretion to the long-term lease obligation. 5. Leases, Continued: Components of lease expense were as follows for the three and nine-month periods ended September 30, 2019 : (Millions) Classification Three Months Ended Nine Months Ended Operating lease costs (a) Cost of services, Selling, general and administrative $ 199.9 $ 602.4 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 13.4 31.7 Interest on lease liabilities Interest expense 1.1 3.3 Net lease expense $ 214.4 $ 637.4 (a) Includes short-term leases and variable lease costs which are not material. Supplemental balance sheet information related to leases was as follows: (Millions) September 30, Operating Leases Operating lease right-of-use assets $ 4,066.8 Current portion of operating lease obligations 3,833.2 Operating lease liabilities 254.2 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,087.4 Less amounts reclassified to liabilities subject to compromise (4,087.4 ) Total operating lease liabilities $ — Finance Leases Property, plant and equipment, gross $ 254.2 Accumulated depreciation (180.2 ) Net property, plant and equipment 74.0 Other current liabilities 30.9 Other liabilities 24.0 Finance lease liabilities prior to reclassification to liabilities subject to compromise 54.9 Less amounts reclassified to liabilities subject to compromise (54.9 ) Total finance lease liabilities $ — Weighted Average Remaining Lease Term Operating leases 10.3 years Finance leases 2.9 years Leaseback of real estate contributed to pension plan 10.8 years Weighted Average Discount Rate Operating leases 13.9 % Finance leases 5.73 % Leaseback of real estate contributed to pension plan 8.6 % 5. Leases, Continued: Supplemental cash flow information related to leases was as follows for the nine-month period ended September 30, 2019 : (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 590.3 Operating cash outflows from finance leases $ 3.5 Financing cash outflows from finance leases $ 37.0 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6.4 Finance leases $ 7.6 As of September 30, 2019 , future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the nine months ended September 30, 2019) $ 208.6 $ 1.7 $ 8.1 2020 777.0 6.7 26.0 2021 756.2 6.9 10.0 2022 740.4 7.1 5.3 2023 726.3 7.3 5.1 Thereafter 4,498.2 55.0 5.3 Total future minimum lease payments 7,706.7 84.7 59.8 Less: Amounts representing interest 3,619.3 63.5 4.9 Add: Residual value — 51.5 — Present value of lease liabilities $ 4,087.4 $ 72.7 $ 54.9 Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840, were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. As of September 30, 2019 , there are no material operating or finance leases that have not yet commenced. 5. Leases, Continued: To provide comprehensive communication solutions to meet our customers’ needs, our services are integrated with the latest communications equipment. Certain offerings include equipment leases. We also lease fiber to generate cash flow from unused or underutilized portions of our network. Lease terms typically range from 1 to 20 years some of which may include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years. Fiber customers do have the ability to early terminate the lease by relinquishing the fiber strands back to us, however we have assessed the probability of such action to be remote. Most of our leases are adjusted periodically for inflation. Although increases in the inflation index are not estimated as part of straight-line rent revenue, to the extent that the actual inflation index is greater or less than the inflation index at lease commencement, there could be changes to realized income or loss. Comprehensive communication solutions with both lease and nonlease components such as maintenance and other services are accounted for as separate components under the guidance applicable to the component either Accounting Standard Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) or ASC Topic 842, Leases (“ASC 842”). If equipment is not returned, early contract termination penalties are designed to cover the cost of the unrecovered equipment. We provide maintenance for all fiber agreements at lessees cost limiting residual value risk. Operating lease income was $66.8 million and $190.9 million for the three and nine-month periods ended September 30, 2019 and is included in revenues in our consolidated statement of operations. Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2019 (excluding the nine months ended September 30, 2019) $ 17.1 2020 59.3 2021 42.8 2022 21.1 2023 9.4 Thereafter 3.1 Total future lease receipts $ 152.8 |
Leases | Leases As previously discussed in Note 1, we adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective transition method. We lease network assets and equipment, real estate, office space and office equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and nonlease components, which are generally accounted for separately. For certain agreements in which we lease space for data storage and communications equipment within data centers, central offices of other interexchange carriers and alternative access providers, we account for the lease and nonlease components as a single lease component when the timing and pattern of transfer of the lease and nonlease components are identical, and the lease classification would have been an operating lease absent the combination. Windstream uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates are based on Windstream’s unsecured rates, adjusted by adding the average credit spread percentage of its traded debt to the risk-free rate at maturity to approximate what Windstream would have to borrow on a collateralized basis over a similar period of time as the recognized lease term. Windstream applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term and the reporting entity in which the lease resides. Certain of our lease agreements include rental payments adjusted periodically for inflation. Lease liabilities are not remeasured as a result of changes to the inflation index. Changes to the inflation index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating Leases - Our operating leases, for network assets and equipment, office space, office equipment and real estate, have remaining lease terms of 1 to 30 years , some of which may include one or more options to renew with renewal terms that can extend the lease term from 1 to 10 years or more. The exercise of lease renewal options is at our sole discretion. At inception of a lease, the lease term is generally equal to the initial lease term as a renewal is not reasonably certain at inception. Subsequent renewals are treated as lease modifications. Due to the nature and expected use of the leased assets, exercise of renewal options is reasonably certain for month-to-month fiber, colocation, point of presence and rack space leases. The lease term is based on the average lease term for similar assets or expected period of use of the underlying asset. We apply a portfolio approach to effectively account for the operating lease right-of-use asset and liability for these low dollar, high volume leases. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Leaseback of Telecommunication Network Assets - Under our contractual arrangement with Uniti, Windstream Holdings has the exclusive right to use certain telecommunications network assets, including fiber and copper networks, for an initial term of 15 years ending in April 2030, with up to four, five-year renewal options. The contractual arrangement with Uniti provides for a current annual payment of $659.0 million paid in equal monthly installments in advance with an annual escalator of 0.5 percent . Future payments due under the contractual arrangement reset to fair market rates upon Windstream Holdings’ execution of the renewal options. The remaining term of the contractual arrangement is 10.6 years with a discount rate of 13.9 percent . Finance Leases - Finance leases consist principally of facilities and equipment for use in our operations. Generally, lease agreements that include a bargain purchase option, transfer of ownership, contractual lease term equal to or greater than 75 percent of the remaining estimated economic life of the leased facilities or equipment or minimum lease payments equal to or greater than 90 percent of the fair value of the leased facilities or equipment are accounted for as finance leases. Leaseback of Real Estate Contributed to Pension Plan - We lease certain real property contributed to the Windstream Pension Plan. The lease agreements provide for the continued use of the properties by our operating subsidiaries and include initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.0 million . The lease agreements provide for annual rent increases ranging from 2.0 percent to 3.0 percent over the initial lease term and may be renewed for up to three additional five-year terms. The properties are managed on behalf of the Windstream Pension Plan by an independent fiduciary. Due to Windstream Services’ ability to repurchase the property by ceasing all but de minimis operations at the location, control of the property has not transferred and the transaction continues to be accounted for as a financing obligation. Accordingly, the properties continue to be reported as assets of Windstream and depreciated over their remaining useful lives until termination of the lease agreement. The long-term lease obligation, initially equal to the fair value of the properties at the date of contribution, of $72.7 million as of September 30, 2019 is presented in liabilities subject to compromise. As a result of using the effective interest rate method, when lease payments are made to the Windstream Pension Plan, a portion of the payment is charged to interest expense and the remaining portion is recorded as an accretion to the long-term lease obligation. 5. Leases, Continued: Components of lease expense were as follows for the three and nine-month periods ended September 30, 2019 : (Millions) Classification Three Months Ended Nine Months Ended Operating lease costs (a) Cost of services, Selling, general and administrative $ 199.9 $ 602.4 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 13.4 31.7 Interest on lease liabilities Interest expense 1.1 3.3 Net lease expense $ 214.4 $ 637.4 (a) Includes short-term leases and variable lease costs which are not material. Supplemental balance sheet information related to leases was as follows: (Millions) September 30, Operating Leases Operating lease right-of-use assets $ 4,066.8 Current portion of operating lease obligations 3,833.2 Operating lease liabilities 254.2 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,087.4 Less amounts reclassified to liabilities subject to compromise (4,087.4 ) Total operating lease liabilities $ — Finance Leases Property, plant and equipment, gross $ 254.2 Accumulated depreciation (180.2 ) Net property, plant and equipment 74.0 Other current liabilities 30.9 Other liabilities 24.0 Finance lease liabilities prior to reclassification to liabilities subject to compromise 54.9 Less amounts reclassified to liabilities subject to compromise (54.9 ) Total finance lease liabilities $ — Weighted Average Remaining Lease Term Operating leases 10.3 years Finance leases 2.9 years Leaseback of real estate contributed to pension plan 10.8 years Weighted Average Discount Rate Operating leases 13.9 % Finance leases 5.73 % Leaseback of real estate contributed to pension plan 8.6 % 5. Leases, Continued: Supplemental cash flow information related to leases was as follows for the nine-month period ended September 30, 2019 : (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 590.3 Operating cash outflows from finance leases $ 3.5 Financing cash outflows from finance leases $ 37.0 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6.4 Finance leases $ 7.6 As of September 30, 2019 , future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the nine months ended September 30, 2019) $ 208.6 $ 1.7 $ 8.1 2020 777.0 6.7 26.0 2021 756.2 6.9 10.0 2022 740.4 7.1 5.3 2023 726.3 7.3 5.1 Thereafter 4,498.2 55.0 5.3 Total future minimum lease payments 7,706.7 84.7 59.8 Less: Amounts representing interest 3,619.3 63.5 4.9 Add: Residual value — 51.5 — Present value of lease liabilities $ 4,087.4 $ 72.7 $ 54.9 Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840, were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. As of September 30, 2019 , there are no material operating or finance leases that have not yet commenced. 5. Leases, Continued: To provide comprehensive communication solutions to meet our customers’ needs, our services are integrated with the latest communications equipment. Certain offerings include equipment leases. We also lease fiber to generate cash flow from unused or underutilized portions of our network. Lease terms typically range from 1 to 20 years some of which may include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years. Fiber customers do have the ability to early terminate the lease by relinquishing the fiber strands back to us, however we have assessed the probability of such action to be remote. Most of our leases are adjusted periodically for inflation. Although increases in the inflation index are not estimated as part of straight-line rent revenue, to the extent that the actual inflation index is greater or less than the inflation index at lease commencement, there could be changes to realized income or loss. Comprehensive communication solutions with both lease and nonlease components such as maintenance and other services are accounted for as separate components under the guidance applicable to the component either Accounting Standard Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) or ASC Topic 842, Leases (“ASC 842”). If equipment is not returned, early contract termination penalties are designed to cover the cost of the unrecovered equipment. We provide maintenance for all fiber agreements at lessees cost limiting residual value risk. Operating lease income was $66.8 million and $190.9 million for the three and nine-month periods ended September 30, 2019 and is included in revenues in our consolidated statement of operations. Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2019 (excluding the nine months ended September 30, 2019) $ 17.1 2020 59.3 2021 42.8 2022 21.1 2023 9.4 Thereafter 3.1 Total future lease receipts $ 152.8 |
Derivatives_ (Notes)
Derivatives: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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. 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. Three of the interest rate swaps were off-market swaps, meaning they contained an embedded financing element, which the swap counterparties recovered through an incremental charge in the fixed rate over what would have been charged for an at-market swap. As such, a portion of the cash payment on the swaps represented the rate that Windstream Services would have paid on a hypothetical at-market interest rate swap and was recognized in interest expense. The remaining portion represented the repayment of the embedded financing element and reduced the initial swap liability. These three swaps had a total notional value of $675.0 million and the average fixed interest rate paid was 2.984 percent . The fourth interest rate swap agreement had a notional value of $200.0 million and the fixed interest rate paid was 1.1275 percent . The remaining two interest rate swap agreements had a total notional value of $500.0 million and the fixed interest rate paid was 1.8812 percent . 6. Derivatives, Continued: Due to previous refinancing transactions, Windstream Services had de-designated certain interest rate swaps and froze the accumulated net gains and 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. Prior to the filing of the Chapter 11 Cases, all derivative instruments were recognized at fair value as either assets or liabilities, depending on the rights or obligations under the related contracts. 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. Due to the adverse court ruling, subsequent filing of the Chapter 11 Cases and cross-default provisions contained within the interest rate swap agreements, the interest rate swaps were classified as current assets and liabilities in the accompanying consolidated balance sheet as of December 31, 2018. Following the adverse court ruling from Judge Jessie 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 sheet as of September 30, 2019 . 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 will be 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) September 30, December 31, Designated portion, measured at fair value: Other current assets $ — $ 15.3 Other current liabilities $ — $ 6.8 Accumulated other comprehensive income $ — $ 39.7 De-designated portion, unamortized value: Liabilities subject to compromise $ 6.1 $ — Accumulated other comprehensive income (loss) $ 26.8 $ (2.4 ) Weighted average fixed rate paid 2.31 % 2.31 % Variable rate received 2.48 % 2.46 % Changes in derivative instruments were as follows for the nine-month period ended September 30 : (Millions) 2019 2018 Changes in fair value, net of tax $ (2.4 ) $ 16.1 Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax $ (5.5 ) $ 1.8 As of September 30, 2019 , 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. 6. Derivatives, Continued: Balance Sheet Offsetting Prior to the termination of the interest rate swaps, Windstream Services was party to master netting arrangements, which were designed to reduce credit risk by permitting net settlement of transactions with counterparties. For financial statement presentation purposes, Windstream Services did not offset assets and liabilities under these arrangements. The following tables presents the assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2018 . Information pertaining to derivative assets was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 15.3 $ (3.2 ) $ — $ 12.1 Information pertaining to derivative liabilities was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 6.8 $ (3.2 ) $ — $ 3.6 |
Fair Value Measurements_ (Notes
Fair Value Measurements: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine-month period ended September 30, 2019 requiring our non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt and interest rate swaps. The carrying amount of cash, accounts receivable and accounts payable was estimated by management to approximate fair value due to the relatively short period of time to maturity for those instruments. Cash equivalents, long-term debt and interest rate swaps (prior to their termination) are measured at fair value on a recurring basis. There were no cash equivalents as of September 30, 2019 . 7. Fair Value Measurements, Continued: The fair values of cash equivalents, interest rate swaps and debt were determined using the following inputs at: (Millions) September 30, December 31, Recorded at Fair Value in the Financial Statements: Cash equivalents - Level 1 (a) $ — $ 310.0 Derivatives Interest rate swap assets - Level 2 $ — $ 15.3 Interest rate swap liabilities - Level 2 $ — $ 6.8 Not Recorded at Fair Value in the Financial Statements: (b) Debt, including current portion - Level 2: Included in current portion of long-term debt $ 500.0 $ 4,405.8 Included in liabilities subject to compromise $ 4,163.0 $ — (a) Cash equivalents are highly liquid, actively traded money market funds with next day access. (b) Recognized at carrying value of $6,099.3 million and $5,785.7 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 September 30, 2019 and December 31, 2018 , respectively. The fair values of interest rate swaps were determined based on the present value of expected future cash flows using observable, quoted LIBOR swap rates for the full term of the swaps and also incorporate credit valuation adjustments to appropriately reflect both Windstream Services’ own non-performance risk and non-performance risk of the respective counterparties. As of December 31, 2018 , the fair values of the interest rate swaps were reduced by $2.9 million to reflect non-performance risk. 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. 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 nine-month period ended September 30, 2019 . |
Revenues_ Revenues (Notes)
Revenues: Revenues (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues: The majority of our revenue is derived from providing access to or usage of our networks and facilities we operate. 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 doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of historical collection experience, age of outstanding receivables, current economic conditions and a specific customer’s ability to meet its financial obligations. 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 monthly 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 $35.0 million and $40.0 million at September 30, 2019 and December 31, 2018, respectively. 8. Revenues, Continued: 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) September 30, December 31, Contract assets (a) $ 18.9 $ 12.6 Contract liabilities (b) $ 166.5 $ 184.8 Revenues recognized included in the opening contract liability balance $ 168.9 $ 194.9 (a) Included $9.5 million and $8.3 million in prepaid expense and other and $9.4 million and $4.3 million in other assets as of September 30, 2019 and December 31, 2018, respectively. (b) Included $151.4 million and $172.1 million in advance payments and $8.5 million and $12.7 million in other liabilities as of September 30, 2019 and December 31, 2018, respectively. This amount also included $6.6 million in liabilities subject to compromise as of September 30, 2019 . 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 September 30, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.7 billion for contracts with original expected durations of more than one year remaining. We expect to recognize approximately 13 percent , 41 percent and 25 percent of our remaining performance obligations as revenue during the remainder of 2019, 2020 and 2021, respectively, with the remaining balance thereafter. 8. 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 for the three-month period ended September 30, 2019 were as follows: (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 237.2 $ — $ — $ 237.2 Voice-only 26.8 — — 26.8 Video and miscellaneous 9.6 — — 9.6 Core (a) — 282.4 — 282.4 Strategic (b) — 57.2 — 57.2 Legacy (c) — 116.9 — 116.9 Small business 73.9 — — 73.9 Wholesale (d) 52.0 — 64.1 116.1 Switched access (e) 5.9 — 6.3 12.2 Other (g) — 128.0 — 128.0 Service revenues from contracts with customers 405.4 584.5 70.4 1,060.3 Product and fiber sales 14.7 9.2 4.5 28.4 Total revenue from contracts with customers 420.1 593.7 74.9 1,088.7 Other service revenues (h) 100.8 65.4 15.2 181.4 Total revenues and sales $ 520.9 $ 659.1 $ 90.1 $ 1,270.1 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the nine-month period ended September 30, 2019 were as follows: (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 716.7 $ — $ — $ 716.7 Voice-only 83.5 — — 83.5 Video and miscellaneous 29.8 — — 29.8 Core (a) — 888.7 — 888.7 Strategic (b) — 160.8 — 160.8 Legacy (c) — 375.3 — 375.3 Small business 226.7 — — 226.7 Wholesale (d) 155.1 — 207.7 362.8 Switched access (e) 18.4 — 21.4 39.8 Other (g) — 403.3 — 403.3 Service revenues from contracts with customers 1,230.2 1,828.1 229.1 3,287.4 Product and fiber sales 30.7 27.9 4.5 63.1 Total revenue from contracts with customers 1,260.9 1,856.0 233.6 3,350.5 Other service revenues (h) 298.3 191.2 37.2 526.7 Total revenues and sales $ 1,559.2 $ 2,047.2 $ 270.8 $ 3,877.2 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the three-month period ended September 30, 2018 were as follows: (Millions) Kinetic Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 239.3 $ — $ — $ — $ 239.3 Voice-only 29.7 — — — 29.7 Video and miscellaneous 11.1 — — — 11.1 Core (a) — 335.2 — — 335.2 Strategic (b) — 40.2 — — 40.2 Legacy (c) — 152.8 — — 152.8 Small business 80.9 — — — 80.9 Wholesale (d) 57.2 — 70.7 — 127.9 Switched access (e) 6.7 — 8.4 — 15.1 Consumer CLEC (f) — — — 41.6 41.6 Other (g) — 144.3 — — 144.3 Service revenues from contracts with customers 424.9 672.5 79.1 41.6 1,218.1 Product sales 7.5 12.8 — 0.2 20.5 Total revenue from contracts with customers 432.4 685.3 79.1 41.8 1,238.6 Other service revenues (h) 100.0 64.9 17.1 — 182.0 Total revenues and sales $ 532.4 $ 750.2 $ 96.2 $ 41.8 $ 1,420.6 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the nine-month period ended September 30, 2018 were as follows: (Millions) Kinetic Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 725.3 $ — $ — $ — $ 725.3 Voice-only 91.8 — — — 91.8 Video and miscellaneous 33.8 — — — 33.8 Core (a) — 1,026.6 — — 1,026.6 Strategic (b) — 110.4 — — 110.4 Legacy (c) — 466.9 — — 466.9 Small business 247.3 — — — 247.3 Wholesale (d) 171.2 — 226.0 — 397.2 Switched access (e) 21.8 — 27.2 — 49.0 Consumer CLEC (f) — — — 129.7 129.7 Other (g) — 442.6 — — 442.6 Service revenues from contracts with customers 1,291.2 2,046.5 253.2 129.7 3,720.6 Product sales 19.6 39.2 — 0.4 59.2 Total revenue from contracts with customers 1,310.8 2,085.7 253.2 130.1 3,779.8 Other service revenues (h) 303.7 198.1 37.7 — 539.5 Total revenues and sales $ 1,614.5 $ 2,283.8 $ 290.9 $ 130.1 $ 4,319.3 (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) Consumer CLEC revenues include high-speed and dial-up Internet, email and other miscellaneous revenues. (g) Other revenues primarily consist of administrative service fees, subscriber line charges, and non-recurring usage-based long-distance revenues. (h) 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. 8. 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 $51.6 million at September 30, 2019 , of which $35.0 million and $16.6 million were included in prepaid expenses and other and other assets, respectively. At December 31, 2018, deferred contract costs were $45.5 million , of which $30.4 million and $15.1 million were included in prepaid expenses and other and other assets, respectively. Amortization of deferred contract costs was $10.4 million and $30.3 million for the three and nine-month periods ended September 30, 2019 , respectively, compared to $10.6 million and $31.9 million for the three and nine-month periods ended September 30, 2018 , respectively. There was no impairment loss recognized for the nine-month periods ended September 30, 2019 and 2018 , related to deferred contract costs. |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans and Postretirement Benefits Other Than Pensions: | Employee Benefit Plans and Postretirement Benefits: 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. Additionally, we provide postretirement healthcare and life insurance benefits for eligible employees. Employees share in, and we fund, the costs of these plans as benefits are paid. The components of pension benefit (income) expense, including provision for executive retirement agreements, were as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Benefits earned during the period (a) $ 0.7 $ 0.4 $ 2.2 $ 2.3 Interest cost on benefit obligation (b) 11.0 11.4 33.0 32.0 Net actuarial loss (gain) (b) — (0.1 ) 7.7 (5.7 ) Amortization of prior service credit (b) (0.3 ) (1.2 ) (0.8 ) (3.6 ) Expected return on plan assets (b) (12.4 ) (13.1 ) (37.2 ) (41.4 ) Curtailment gain (b) — — — (2.7 ) Net periodic benefit (income) expense $ (1.0 ) $ (2.6 ) $ 4.9 $ (19.1 ) (a) Included in cost of services and selling, general and administrative expense. (b) Included in other income (expense), net. For 2019, the expected employer contributions for pension benefits consists of $15.2 million to the qualified pension plan to satisfy our remaining 2018 and 2019 funding requirements and $0.8 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. During the first nine months of 2019, we made our required quarterly employer contributions totaling $11.8 million in cash. Comparatively in the first nine months of 2018, we made employer contributions to the qualified pension plan of $8.8 million in cash and also contributed 0.8 million shares of our common stock with a value of approximately $5.8 million . 9. Employee Benefit Plans and Postretirement Benefits, Continued: The components of postretirement benefits expense were as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Interest cost on benefit obligation (a) $ 0.2 $ 0.1 $ 0.6 $ 0.5 Amortization of net actuarial loss (a) — 0.1 — 0.2 Amortization of prior service credit (a) — — (0.2 ) (0.2 ) Net periodic benefit expense $ 0.2 $ 0.2 $ 0.4 $ 0.5 (a) Included in other income (expense), net. We contributed $0.5 million in cash to the postretirement plan during the nine-month period ended September 30, 2019 , excluding amounts that were funded by participant contributions to the plan. 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 $5.8 million and $19.3 million in the three and nine-month periods ended September 30, 2019 , respectively, as compared to $4.7 million and $16.8 million for the same periods in 2018 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. Expense related to our 2018 matching contribution that was expected to be made in Windstream Holdings common stock was included in share-based compensation expense in the accompanying consolidated statement of cash flows for the nine months ended September 30, 2018. In March 2019, we contributed $26.4 million in cash to the plan for the 2018 annual matching contribution. Comparatively, in March 2018, we contributed 3.6 million shares of our common stock with a fair value of $28.3 million to the plan for the 2017 annual matching contribution. We funded the remaining 2019 contributions using cash. |
Share-Based Compensation Plans_
Share-Based Compensation Plans: Share-Based Compensation Plans: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans: | Share-Based Compensation Plans: In May 2018, our stockholders approved amendments to our Amended and Restated 2006 Equity Incentive Plan (the “Incentive Plan”) which (i) extended the term of the Incentive Plan through February 6, 2023 and (ii) increased the maximum number of shares authorized for issuance or delivery under the Incentive Plan to 6.8 million . Under the Incentive Plan, we may issue equity stock awards in the form of restricted stock, restricted stock units, stock appreciation rights or stock options. As of September 30, 2019 , the Incentive Plan had remaining capacity of approximately 2.2 million awards. Restricted Stock and Restricted Stock Units – Our board of directors may approve grants of restricted stock and restricted stock units to officers, executives, non-employee directors and certain management employees. Grants may include time-based and performance-based awards. Time-based awards granted to employees generally vest over a service period of two or three years. Performance-based restricted stock units may vest in a number of shares from zero to 150.0 percent of their award based on attainment of specified targets over a three-year period. The three-year operating target for the performance-based restricted stock units granted in 2017 was approved by the board of directors in May 2017. During the second quarter of 2019, we determined that the three-year operating target would not be met by the end of the measurement period, and accordingly, all compensation expense previously recognized for these performance-based awards was reversed. In February 2019, we granted 0.7 million performance-based restricted stock units that were scheduled to vest three years from the date of grant. The grant date fair value of the restricted stock units was $2.4 million . These awards were subsequently canceled and replaced with cash-based awards during the second quarter of 2019. There were no service-based restricted stock units granted during the first nine months of 2019. In light of our Chapter 11 filing, the vesting date for certain service-based restricted stock was extended from March 1, 2019 , May 1, 2019 , and March 1, 2020 to December 1, 2020 . Additionally, the delivery of shares for performance-based restricted stock units vested on March 1, 2019 was delayed until March 14, 2020 . 10. Share-Based Compensation Plans, Continued: Restricted stock and restricted stock unit activity for the nine-month period ended September 30, 2019 was as follows: Service-Based Performance-Based (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2018 522.1 $ 23.34 325.4 $ 28.35 Granted — $ — 698.5 $ 3.40 Vested (132.0 ) $ 32.37 (159.2 ) $ 28.84 Canceled and forfeited (16.9 ) $ 35.24 (731.5 ) $ 4.50 Non-vested at September 30, 2019 373.2 $ 19.61 133.2 $ 27.90 At September 30, 2019 , unrecognized compensation expense for restricted stock and restricted stock units totaled $1.3 million and is expected to be recognized over the weighted average vesting period of 0.8 years. The total fair value of shares vested was $8.9 million for the nine-month period ended September 30, 2019 , as compared to $22.5 million for the same period in 2018 . Share-based compensation expense for restricted stock and restricted stock units was $0.7 million and $0.4 million for the three and nine-month periods ended September 30, 2019 , respectively, as compared to $2.4 million and $8.7 million for the same periods in 2018 . Stock Options – At September 30, 2019 and December 31, 2018, we had approximately 0.9 million and 1.0 million of stock option awards outstanding, respectively, all of which have exercise prices that are significantly higher than the current market price of our common stock and, therefore, are not likely to be exercised during the next twelve months. No stock options were granted or exercised during 2019. At September 30, 2019 , total unamortized compensation cost for non-vested stock option awards amounted to $1.6 million and is expected to be recognized over a weighted average period of 1.4 years . Share-based compensation expense for stock options was $0.3 million and $0.9 million for the three and nine-month periods ended September 30, 2019 , respectively. |
Merger, Integration and Other C
Merger, Integration and Other Costs and Restructuring Charges: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Merger, Integration and Other Costs and Restructuring Charges [Abstract] | |
Merger, Integration and Other Costs and Restructuring Charges: | Merger, Integration and Other Costs and Restructuring Charges: We incur costs to complete a merger or acquisition and integrate its operations into our business, which are presented as merger and integration expense in our consolidated results of operations. These costs include transaction costs, such as accounting, legal, consulting and broker fees; severance and related costs; IT and network conversion; rebranding and marketing; and contract termination fees. 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, lease exit costs and other related charges are included in restructuring charges. During the first nine months of 2019 and 2018, we completed restructurings of our workforce to improve our overall cost structure and gain operational efficiencies. In undertaking these efforts, we eliminated approximately 450 positions and incurred related severance and employee benefit costs of $17.5 million in 2019, and in the first nine months of 2018, we eliminated approximately 750 positions and incurred $22.1 million in severance and employee benefit costs. We also incurred lease termination costs of $3.9 million during the nine-month period of 2018, as a result of vacating certain facilities. 11. Merger, Integration and Other Costs and Restructuring Charges, Continued: A summary of the merger, integration and other costs and restructuring charges recorded was as follows: Three Months Ended Nine Months Ended September 30, (Millions) 2019 2018 2019 2018 Merger, integration and other costs: Information technology conversion costs $ — $ 0.2 $ 0.3 $ 0.8 Costs related to merger with EarthLink (a) 1.8 2.0 5.8 13.0 Costs related to merger with Broadview (b) — 0.5 — 3.9 Legal fees related to Uniti spin-off litigation (see Note 16) — 5.1 — 9.9 Other — 1.2 1.1 2.8 Total merger, integration and other costs 1.8 9.0 7.2 30.4 Restructuring charges 1.6 6.5 18.2 26.0 Total merger, integration and other costs and restructuring charges $ 3.4 $ 15.5 $ 25.4 $ 56.4 (a) For the three and nine-month periods ended September 30, 2019, these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $1.0 million and $4.3 million , respectively and other miscellaneous expenses of $0.8 million and $1.5 million , respectively. Comparatively, during the three and nine-month periods ended September 30, 2018 , these amounts include severance and employee benefit costs for employees terminated after the acquisitions were $1.0 million and $5.8 million , respectively, contract and lease termination costs of $0.1 million and $4.9 million , respectively, as a result of vacating certain facilities related to the acquired operations of EarthLink, and other miscellaneous expenses of $0.9 million and $2.3 million , respectively. (b) For the nine-month period ended September 30, 2018 , expenses included severance and employee benefit costs for Broadview employees terminated after the acquisition of $1.9 million , and for the three and nine-month periods ended September 30, 2018, other miscellaneous expenses of $0.5 million and $2.0 million , respectively. After giving consideration to tax benefits on deductible items, merger, integration and other costs and restructuring charges increased our reported net loss by $2.5 million and $19.0 million for the three and nine-month periods ended September 30, 2019 , respectively, as compared to $11.6 million and $42.1 million for the same periods in 2018 , respectively. The following is a summary of the activity related to the liabilities associated with merger, integration and other costs and restructuring charges at September 30 : Restructuring Charges (Millions) Merger, Integration and Other Charges Severance and Benefit Costs Lease Termination Costs Total Balance at December 31, 2018 $ 4.0 $ 12.6 $ 15.3 $ 31.9 Reclassified to operating lease obligations upon adoption of ASU 2016-02 (4.0 ) — (15.3 ) (19.3 ) Expenses incurred in period 7.2 18.2 — 25.4 Cash outlays during the period (7.2 ) (24.8 ) — (32.0 ) Balance at September 30, 2019 $ — $ 6.0 $ — $ 6.0 Payments of these liabilities will be funded through operating cash flows. |
Income Taxes Income Taxes (Note
Income Taxes Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes: The significant components of the net deferred income tax (asset) liability were as follows: (Millions) September 30, December 31, 2018 Property, plant and equipment $ 439.0 $ 825.5 Goodwill and other intangible assets 224.7 477.7 Operating loss and credit carryforward (558.7 ) (576.8 ) Postretirement and other employee benefits (78.5 ) (79.6 ) Unrealized holding loss and interest rate swaps (1.0 ) 7.2 Deferred compensation (2.0 ) (2.3 ) Bad debt (21.9 ) (15.1 ) Long-term lease obligations (1,050.9 ) (1,170.9 ) Operating lease right-of-use assets 1,025.7 — Deferred debt costs (40.1 ) (19.2 ) Share-based compensation (5.6 ) (6.8 ) Interest expense (24.3 ) — Other, net (7.4 ) (20.4 ) (101.0 ) (580.7 ) Valuation allowance 143.5 685.0 Less amounts reclassified to liabilities subject to compromise (42.5 ) — Deferred income taxes, net $ — $ 104.3 Deferred tax assets $ (1,842.2 ) $ (1,954.0 ) Deferred tax liabilities 1,884.7 2,058.3 Less amounts reclassified to liabilities subject to compromise (42.5 ) — Deferred income taxes, net $ — $ 104.3 In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. We consider the scheduled reversal of deferred tax assets and liabilities, carryback potential, projected future taxable income and tax planning strategies in making this assessment. As a result of the adverse court ruling and subsequent filing of the Chapter 11 Cases, we considered the reversal of taxable temporary differences and carryback potential as a source of income as of December 31, 2018. After consideration of these factors, we recorded a full valuation allowance for the year ended December 31, 2018, exclusive of a portion of deferred tax liabilities primarily associated with indefinite-lived intangible assets. Therefore, as of December 31, 2018, we had valuation allowances of approximately $685.0 million . The impact of adoption of ASU 2016-02 in 2019 resulted in an increase to deferred tax liabilities of approximately $833.8 million . This increase caused a re-evaluation of our valuation allowances as of January 1, 2019 and resulted in a decrease of approximately $541.5 million , recorded as an adjustment to equity. At September 30, 2019 , our valuation allowance is approximately $143.5 million . As of September 30, 2019 , we were in a net deferred tax liability position and recorded an income tax benefit during the first three quarters of 2019. 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. At September 30, 2019 and December 31, 2018 , we had federal net operating loss carryforwards of approximately $1,810.3 million and $1,920.2 million , respectively. Net operating losses generated prior to 2018 expire in varying amounts from 2019 through 2037. Under the 2017 Tax Act, federal net operating losses generated in 2018 and future years can be carried forward indefinitely. The loss carryforwards at September 30, 2019 and December 31, 2018 were primarily losses acquired in conjunction with our acquisitions including PAETEC, EarthLink and Broadview. 12. Income Taxes, Continued: At September 30, 2019 and December 31, 2018 , we had state net operating loss carryforwards of approximately $2,598.2 million and $2,456.6 million , respectively, which expire annually in varying amounts from 2019 through 2039. The loss carryforwards were primarily losses acquired in conjunction with our acquisitions including PAETEC and EarthLink. The amount of federal tax credit carryforward at September 30, 2019 and December 31, 2018 was approximately $21.8 million , which expires in varying amounts from 2031 through 2036. The amount of state tax credit carryforward at September 30, 2019 and December 31, 2018 was approximately $17.7 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income: Accumulated other comprehensive income balances, net of tax, were as follows: (Millions) September 30, December 31, Pension and postretirement plans $ 6.8 $ 7.7 Unrealized net gains (losses) on interest rate swaps: Designated portion — 29.7 De-designated portion 20.0 (1.8 ) Accumulated other comprehensive income $ 26.8 $ 35.6 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Unrealized Net Gains (Losses) on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2018 $ 27.9 $ 7.7 $ 35.6 Other comprehensive income before reclassifications (2.4 ) (0.1 ) (2.5 ) Amounts reclassified from other accumulated comprehensive income (a) (5.5 ) (0.8 ) (6.3 ) Balance at September 30, 2019 $ 20.0 $ 6.8 $ 26.8 (a) See separate table below for details about these reclassifications. 13. Accumulated Other Comprehensive Income, Continued: 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 Nine Months Ended Affected Line Item in the Consolidated Statements of Operations 2019 2018 2019 2018 Interest rate swaps: Amortization of net unrealized (gains) losses on de-designated interest rate swaps $ (3.1 ) $ 0.7 $ (7.3 ) $ 2.4 Interest expense (3.1 ) 0.7 (7.3 ) 2.4 (Loss) income before income taxes 0.7 (0.1 ) 1.8 (0.6 ) Income tax benefit (2.4 ) 0.6 (5.5 ) 1.8 Net (loss) income Pension and postretirement plans: Amortization of net actuarial loss — 0.1 — 0.2 (a) Amortization of prior service credits (0.3 ) (1.2 ) (1.0 ) (3.8 ) (a) (0.3 ) (1.1 ) (1.0 ) (3.6 ) (Loss) income before income taxes 0.1 0.1 0.2 0.9 Income tax benefit (0.2 ) (1.0 ) (0.8 ) (2.7 ) Net (loss) income Total reclassifications for the period, net of tax $ (2.6 ) $ (0.4 ) $ (6.3 ) $ (0.9 ) Net (loss) income (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit expense (see Note 9). |
(Loss) Earnings Per Share_ (Los
(Loss) Earnings Per Share: (Loss) Earnings Per Share Text Block (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Loss) Earnings per Share: We compute basic (loss) earnings per share by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Diluted (loss) earnings per share amounts reflect the potential dilution that could occur if securities or other contracts to issue common stock, including restricted stock units, stock options and warrants, were exercised or converted into common stock. The dilutive effects of outstanding restricted stock units, stock options and warrants are reflected in diluted shares outstanding by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise plus the amount of compensation cost attributed to future services. 14. (Loss) Earnings per Share, Continued: A reconciliation of net (loss) income and number of shares used in computing basic and diluted (loss) earnings per share was as follows: Three Months Ended Nine Months Ended (Millions, except per share amounts) 2019 2018 2019 2018 Basic and diluted (loss) earnings per share: Numerator: Net (loss) income attributable to common shares $ (115.5 ) $ 41.3 $ (2,969.9 ) $ (173.8 ) Denominator: Basic and diluted shares outstanding Weighted average basic and diluted shares outstanding 42.7 42.5 42.6 40.2 Basic and diluted (loss) earnings per share: Net (loss) income ($2.71 ) $.97 ($69.67 ) ($4.32 ) For the three and nine-month periods ended September 30, 2019 and the nine-month period ended September 30, 2018, 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. For the three months ended September 30, 2018, we excluded restricted stock units and options to purchase shares from the computation of diluted earnings per share because the effect would be anti-dilutive in applying the treasury stock method. We had 0.5 million restricted stock units and 0.9 million stock options outstanding as of September 30, 2019 , compared to 0.9 million restricted stock units and 1.0 million stock options outstanding at September 30, 2018 . |
Segment Information_ Segment In
Segment Information: Segment Information (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information: Effective April 1, 2019, we reorganized our business operations 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. As a result of this reorganization, we improved the alignment of our customer base within our ILEC and CLEC markets. The significant changes to our previous segment structure included: (1) shifting certain business customers with operations in ILEC-only markets from the Enterprise segment to the Consumer & Small Business segment, which was renamed Kinetic; (2) shifting governmental and resale customers from Wholesale to Enterprise; (3) shifting wholesale customers and related services in ILEC markets from Wholesale to Kinetic; and (4) allocating certain corporate expenses, primarily property taxes, to the segments. Prior period segment information has been revised to reflect these changes for all periods presented. On December 31, 2018, we completed the sale of substantially all of our consumer CLEC business. The consumer operations sold consisted solely of the former EarthLink consumer business that we acquired in February 2017. The sale of the consumer CLEC business did not represent a strategic shift in our operations nor have a major effect on our consolidated results of operations, financial position or cash flows, and therefore did not qualify for reporting as a discontinued operation. Accordingly, for periods prior to the sale, the sold CLEC business continues to be presented as a separate segment. The retained portion of the consumer CLEC business, primarily consisting of revenues generated from our master services agreement with Uniti have been assigned to the Enterprise segment. 15. Segment Information, Continued: 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 allow 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. • 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 allow wholesale customers to provide voice and data services to their customers through the use of our network or in combination with their own networks. • Consumer CLEC - Prior to its sale, products and services offered to customers by this business unit included traditional voice and long-distance services, nationwide Internet access services, both dial-up and high-speed, as well as value added services including online backup and various e-mail services. 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. 15. Segment Information, Continued: 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, merger, integration and other costs, restructuring charges, straight - line expense under the contractual arrangement with Uniti, share-based compensation, business transformation expenses, costs related to network optimization projects, 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 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 and net gain on early extinguishment of debt have 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 expense, net, reorganization items, net, and income tax 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 not assigned to the segments and 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. The following table summarizes our segment results: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Kinetic: Revenues and sales $ 520.9 $ 532.4 $ 1,559.2 $ 1,614.5 Costs and expenses 234.3 224.7 660.5 666.4 Segment income $ 286.6 $ 307.7 $ 898.7 $ 948.1 Enterprise: Revenues and sales $ 659.1 $ 750.2 $ 2,047.2 $ 2,283.8 Cost and expenses 532.9 605.2 1,649.2 1,865.0 Segment income $ 126.2 $ 145.0 $ 398.0 $ 418.8 Wholesale: Revenues and sales $ 90.1 $ 96.2 $ 270.8 $ 290.9 Costs and expenses 24.3 28.0 77.3 82.9 Segment income $ 65.8 $ 68.2 $ 193.5 $ 208.0 Consumer CLEC: Revenues and sales $ — $ 41.8 $ — $ 130.1 Costs and expenses — 19.0 — 59.0 Segment income $ — $ 22.8 $ — $ 71.1 Total segment revenues and sales $ 1,270.1 $ 1,420.6 $ 3,877.2 $ 4,319.3 Total segment costs and expenses 791.5 876.9 2,387.0 2,673.3 Total segment income $ 478.6 $ 543.7 $ 1,490.2 $ 1,646.0 15. Segment Information, Continued: Capital expenditures by segment were as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Kinetic $ 128.6 $ 101.6 $ 332.7 $ 259.3 Enterprise 38.0 44.0 116.6 134.3 Wholesale 6.4 10.8 17.1 25.0 Corporate/shared (a) 48.5 40.5 162.5 184.6 Total $ 221.5 $ 196.9 $ 628.9 $ 603.2 (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. The following table reconciles segment income to consolidated net (loss) income: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Total segment income $ 478.6 $ 543.7 $ 1,490.2 $ 1,646.0 Depreciation and amortization (262.2 ) (383.8 ) (809.7 ) (1,136.3 ) Goodwill impairment — — (2,712.3 ) — Merger, integration and other costs (1.8 ) (9.0 ) (7.2 ) (30.4 ) Restructuring charges (1.6 ) (6.5 ) (18.2 ) (26.0 ) Straight-line expense under contractual arrangement with Uniti (168.8 ) — (506.5 ) — Other unassigned operating expenses (a) (78.7 ) (68.8 ) (275.0 ) (220.4 ) Other income (expense), net 0.2 3.2 (10.0 ) 12.9 Reorganization items, net (29.2 ) — (219.5 ) — Net gain on early extinguishment of debt — 190.3 — 190.3 Interest expense (81.2 ) (230.0 ) (253.9 ) (677.5 ) Income tax benefit 29.2 2.2 352.2 67.6 Net (loss) income $ (115.5 ) $ 41.3 $ (2,969.9 ) $ (173.8 ) (a) For the nine-month period 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. In addition, these expenses include spend commitment penalties incurred under certain carrier discount plans of $22.4 million and $81.3 million for the three and nine months ended September 30, 2019, respectively. Comparatively, these expenses include business transformation expenses of $2.9 million and $22.9 million for the three and nine months ended September 30, 2018. |
Commitments and Contingencies_
Commitments and Contingencies: (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
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. After a trial in July 2018, on February 15, 2019, Judge Jessie 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. • 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; 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. 16. Commitments and Contingencies, Continued: 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. 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. 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. 16. Commitments and Contingencies, Continued: |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 17. Subsequent Events: Additional Debtor-In-Possession Borrowings In March 2020, Windstream Services borrowed $400.0 million under the Revolving Facility of the DIP Facilities to assist with working capital and other general corporate purposes during the coronavirus, COVID-19, global pandemic. Bankruptcy-Related Developments Plan Support Agreement - As previously discussed in Note 2, 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., and Uniti. The PSA contemplates the Debtors’ restructuring and recapitalization, which will be implemented through a Chapter 11 plan of reorganization. On March 2, 2020, the Debtors publicly filed the PSA and accompanying plan term sheet, outlining the terms of the reorganization, including funding an exit facility in an aggregate amount up to $3,250 million 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. 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. Uniti Settlement Agreement - As previously discussed in Note 2, on March 2, 2020, the Debtors announced that they had reached 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. 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 ; purchase certain unused and underutilized dark filer assets from Windstream and Uniti will 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. On May 8, 2020, the Bankruptcy Court approved the settlement with Uniti. Plan of Reorganization - As previously discussed in Note 2, 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 8, 2020, the Disclosure Statement was approved by the Bankruptcy Court, allowing Windstream to begin soliciting the requisite accepting votes in favor of the Plan. The Debtors retain the exclusive right to file the Plan through and including June 22, 2020, as well as the right to seek further extensions of such period up to the statutory maximum date of August 25, 2020. The Plan can be supplemented and revised based upon discussions with the Debtors’ creditors and other interested parties and in response to creditor claims and objections and the requirements of the Bankruptcy Code or the Bankruptcy Court. On June 24, 2020, the Bankruptcy Court is scheduled to hold a confirmation hearing to consider the approval of the Debtors’ Plan. |
Preparation of Interim Financ_2
Preparation of Interim Financial Statements: Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 , 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, 2018 , which was filed with the SEC on March 15, 2019 . 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. 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards Leases – In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as modified by subsequently issued ASU Nos. 2018-01, 2018-10, 2018-11, 2018-20 and 2019-01 (collectively “ASU 2016-02”). ASU 2016-02 requires recognition of right-of-use assets and lease liabilities on the balance sheet. Most prominent among the changes in ASU 2016-02 is the lessees’ recognition of a right-of-use asset and a lease liability for operating leases. The right-of-use asset and lease liability are initially measured based on the present value of committed lease payments. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Expenses related to operating leases are recognized on a straight-line basis, while those related to financing leases are recognized under a front-loaded approach in which interest expense and amortization of the right-of-use asset are presented separately in the statement of operations. Similarly, lessors are required to classify leases as sales-type, finance or operating with classification affecting the pattern of income recognition. Classification for both lessees and lessors is based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. ASU 2016-02 also requires qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted ASU 2016-02 using the modified retrospective transition method. Under the modified retrospective transition method, we recognized the cumulative effect of initial adoption as an adjustment to our opening accumulated deficit balance at the adoption date. Comparative information for prior periods has not been restated and continues to be reported in accordance with Topic 840. We elected the practical expedients permitted under the transition guidance within ASU 2016-02 which, among other things, allowed us to carry forward the historical lease classification for capital and operating leases. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. As a practical expedient, we elected not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Exclusive of our contractual arrangement with Uniti Group, Inc. (“Uniti”) described below, our existing operating lease portfolio primarily consists of fiber, colocation, real estate and equipment leases. Upon adoption of this standard, we recorded an additional lease liability of $408.4 million attributable to our operating leases based on the present value of the remaining minimum lease payments with an increase to leased assets or right-of-use assets of $382.5 million in our consolidated balance sheet. Included in the operating right-of-use assets is $6.6 million of previously recorded prepaid rent and $6.7 million in deferred rent arising from non-level rent payments. The difference between these amounts was recorded as an adjustment to our accumulated deficit. We also recorded a cumulative effect adjustment of approximately $3.0 billion decreasing our accumulated deficit due to reassessing the accounting treatment of our arrangement with Uniti and certain of its subsidiaries. The transaction with Uniti had been accounted for as a failed spin-leaseback financing arrangement for financial reporting purposes due to prohibited continuing involvement. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer preclude the application of spin-leaseback accounting to the contractual arrangement. As a result, we de-recognized the remaining net book value of assets transferred to Uniti of approximately $1.3 billion , recognized a right-of-use asset of approximately $3.9 billion equaling the adjusted Uniti liability, which decreased by $0.7 billion and recorded a deferred tax liability of approximately $0.3 billion in accordance with the standard’s transition guidance as this arrangement is now accounted for as an operating lease. 1. Preparation of Interim Financial Statements, Continued: During the second quarter of 2019, management identified an immaterial error in the cumulative effect adjustment recorded related to Windstream’s adoption of ASU 2016-02. Specifically, the net book value of certain assets transferred to Uniti had not been properly de-recognized as of January 1, 2019, resulting in an overstatement of net property, plant and equipment of $33.8 million , an overstatement of deferred income tax liabilities of $8.5 million and an overstatement of the cumulative effect adjustment recorded to accumulated deficit of $25.3 million . The accompanying consolidated statement of shareholders’ deficit for the period January 1, 2019 to March 31, 2019 has been revised to correct for this error. As a result, the cumulative effect adjustment for the adoption of ASU 2016-02 changed from the previously reported amount of $3,038.3 million to $3,013.0 million . In adopting ASU 2016-02, we also reassessed our accounting treatment for the December 2018 sale of certain fiber assets in Minnesota to Arvig Enterprises, Inc. accounted for as a financing transaction due to our continuing involvement. ASU 2016-02 no longer precludes partial sale recognition. As a result, we de-recognized $7.5 million net book value for the portion of the fiber assets Windstream no longer controls and the related $41.5 million financing lease obligation. The difference between these amounts was recorded as an adjustment to our accumulated deficit. The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,306.7 ) $ 3,614.2 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 387.7 $ (15.4 ) $ 372.3 Deferred income taxes $ 104.3 $ 292.3 $ 396.6 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 615.2 $ (58.8 ) $ 556.4 Accumulated deficit $ (3,205.3 ) $ 3,013.0 $ (192.3 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations is as follows: Three Months Ended September 30, 2019 (Millions) Under ASC 840 Effect of Adoption of As reported Costs and expenses Cost of services $ 658.3 $ 168.7 $ 827.0 Depreciation and amortization $ 329.5 $ (67.3 ) $ 262.2 Interest expense $ 192.3 $ (111.1 ) $ 81.2 Income tax benefit (expense) $ 31.6 $ (2.4 ) $ 29.2 Net (loss) income $ (122.8 ) $ 7.3 $ (115.5 ) 1. Preparation of Interim Financial Statements, Continued: Nine Months Ended September 30, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 2,033.9 $ 506.3 $ 2,540.2 Depreciation and amortization $ 1,043.8 $ (234.1 ) $ 809.7 Interest expense $ 591.1 $ (337.2 ) $ 253.9 Income tax benefit (expense) $ 368.5 $ (16.3 ) $ 352.2 Net (loss) income $ (3,018.6 ) $ 48.7 $ (2,969.9 ) As presented in the tables above, the increases in cost of services were due to the recognition of annual straight-line expense attributable to the contractual arrangement with Uniti. The decreases in depreciation expense resulted from de-recognizing the remaining net book value of network assets transferred to Uniti and the decreases in interest expense were due to no longer accounting for the contractual arrangement with Uniti as a failed spin-leaseback financing arrangement. As a result of the change in accounting for our arrangement with Uniti from a financing to an operating lease, our consolidated statement of cash flows for the nine months ended September 30, 2019 reflected a decrease in operating cash flows of $156.7 million attributable to no longer classifying a portion of the cash rental payments made to Uniti as a financing outflow as was the case for periods prior to the adoption of ASU 2016-02 as well as a reduction in reported cash paid for interest of $337.2 million . See Note 5 for additional disclosures about the nature of our leases, including significant terms and conditions, total lease costs, maturity of lease liabilities and receivables reconciled to the consolidated balance sheet, weighted-average remaining lease term, weighted-average discount rate, cash paid for amounts and significant rights and obligations under leases that have not commenced. Derivatives and Hedging - Change in Benchmark Interest Rate - In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”) . This standard adds the OIS rate based on SOFR as an eligible benchmark interest rate for purposes of applying hedge accounting. SOFR is the preferred alternative reference rate to the London Interbank Offered Rate (“LIBOR”). As permitted, we early adopted ASU 2017-12 effective January 1, 2019 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“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. Implementation Costs in Cloud Computing Arrangements |
Chapter 11 Filing, Going Conc_2
Chapter 11 Filing, Going Concern and Other Related Matters (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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) obtain the required creditor acceptance and confirmation under the Bankruptcy Code of our plan of reorganization, (ii) successfully implement such plan of reorganization, (iii) address debt and other liabilities through the bankruptcy process, (iv) generate sufficient cash flow from operations, and (v) 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. A confirmed 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. |
Revenues_ Accounting Policies (
Revenues: Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Receivables, Policy [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 doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of historical collection experience, age of outstanding receivables, current economic conditions and a specific customer’s ability to meet its financial obligations. 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 monthly 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 $35.0 million and $40.0 million at September 30, 2019 |
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. |
Preparation of Interim Financ_3
Preparation of Interim Financial Statements: New Accounting Standards New Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table presents the cumulative effect of the changes made to our consolidated balance sheet at December 31, 2018: (Millions) December 31, 2018 ASU 2016-02 Adjustments January 1, 2019 Assets Prepaid expenses and other $ 159.7 $ (0.7 ) $ 159.0 Net property, plant and equipment $ 4,920.9 $ (1,306.7 ) $ 3,614.2 Operating lease right-of-use assets $ — $ 4,239.1 $ 4,239.1 Other assets $ 94.0 $ (5.9 ) $ 88.1 Liabilities Current portion of long-term lease obligations $ 4,570.3 $ (4,570.3 ) $ — Current portion of operating lease obligations $ — $ 3,947.8 $ 3,947.8 Other current liabilities $ 387.7 $ (15.4 ) $ 372.3 Deferred income taxes $ 104.3 $ 292.3 $ 396.6 Operating lease obligations $ — $ 317.2 $ 317.2 Other liabilities $ 615.2 $ (58.8 ) $ 556.4 Accumulated deficit $ (3,205.3 ) $ 3,013.0 $ (192.3 ) Due in part to recording the $3.0 billion cumulative effect adjustment to equity presented above and the resulting increase in the carrying value of our reporting units, we recorded a pre-tax goodwill impairment charge of $2.3 billion in the first quarter of 2019. See Note 3 for additional information pertaining to the goodwill impairment charge. The impact of adoption of ASU 2016-02 on our 2019 consolidated statement of operations is as follows: Three Months Ended September 30, 2019 (Millions) Under ASC 840 Effect of Adoption of As reported Costs and expenses Cost of services $ 658.3 $ 168.7 $ 827.0 Depreciation and amortization $ 329.5 $ (67.3 ) $ 262.2 Interest expense $ 192.3 $ (111.1 ) $ 81.2 Income tax benefit (expense) $ 31.6 $ (2.4 ) $ 29.2 Net (loss) income $ (122.8 ) $ 7.3 $ (115.5 ) 1. Preparation of Interim Financial Statements, Continued: Nine Months Ended September 30, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 2,033.9 $ 506.3 $ 2,540.2 Depreciation and amortization $ 1,043.8 $ (234.1 ) $ 809.7 Interest expense $ 591.1 $ (337.2 ) $ 253.9 Income tax benefit (expense) $ 368.5 $ (16.3 ) $ 352.2 Net (loss) income $ (3,018.6 ) $ 48.7 $ (2,969.9 ) As presented in the tables above, the increases in cost of services were due to the recognition of annual straight-line expense attributable to the contractual arrangement with Uniti. The decreases in depreciation expense resulted from de-recognizing the remaining net book value of network assets transferred to Uniti and the decreases in interest expense were due to no longer accounting for the contractual arrangement with Uniti as a failed spin-leaseback financing arrangement. |
Chapter 11 Filing, Going Conc_3
Chapter 11 Filing, Going Concern and Other Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Liabilities Subject to Compromise Disclosures [Abstract] | |
Schedule of Liabilities Subject to Compromise [Table Text Block] | Liabilities subject to compromise at September 30, 2019 consisted of the following: (Millions) Accounts payable $ 346.6 Advance payments 8.7 Accrued taxes 20.2 Other current liabilities 102.7 Deferred taxes 42.5 Operating lease liabilities 4,087.4 Pension and other employee benefit plan obligations 316.9 Other liabilities 201.1 Accounts payable, accrued and other liabilities 5,126.1 Debt subject to compromise 5,599.3 Accrued interest on debt subject to compromise 28.9 Long-term debt and accrued interest 5,628.2 Total liabilities subject to compromise $ 10,754.3 |
Reorganization Items [Abstract] | |
Schedule Of Reorganization Items [Table Text Block] | Reorganization items incurred as a result of the Chapter 11 Cases presented separately in the accompanying consolidated statement of operations for the three and nine-month periods ended September 30, 2019 were as follows: (Millions) Three Months Ended Nine Months Ended Write-off of deferred long-term debt issuance costs $ — $ 54.7 Write-off of original issue net discount on debt subject to compromise — 27.1 Debtor-in-possession financing costs 1.0 43.4 Professional fees and other bankruptcy related costs 32.4 99.1 Provision for estimated damages on rejected executory contracts 0.2 25.5 Gain on write-off of net lease liabilities for rejected leases (0.2 ) (17.6 ) Gain on vendor settlements of liabilities subject to compromise (4.2 ) (12.7 ) Reorganization items, net $ 29.2 $ 219.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets: Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill assigned to our operating segments and changes in the carrying amount of goodwill by reportable segment were as follows: (Millions) Kinetic Consumer & Small Business Enterprise Wholesale Total Balance at December 31, 2018: Goodwill $ — $ 2,321.2 $ 996.2 $ 1,297.1 $ 4,614.5 Accumulated impairment loss — (1,417.8 ) — (423.0 ) (1,840.8 ) Balance at December 31, 2018, net — 903.4 996.2 874.1 2,773.7 Changes during the period: Goodwill impairment in first quarter — (903.4 ) (996.2 ) (439.4 ) (2,339.0 ) Reallocation adjustment 254.3 — 119.0 (373.3 ) — Goodwill impairment in second quarter (254.3 ) — (119.0 ) — (373.3 ) Balance at September 30, 2019: Goodwill 254.3 2,321.2 1,115.2 923.8 4,614.5 Accumulated impairment loss (254.3 ) (2,321.2 ) (1,115.2 ) (862.4 ) (4,553.1 ) Balance at September 30, 2019, net $ — $ — $ — $ 61.4 $ 61.4 |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Indefinite-lived intangible assets were as follows: (Millions) September 30, December 31, FCC Spectrum licenses (a) $ 26.6 $ — (a) During 2019, we acquired radio frequency spectrum in the 24 gigahertz (“GHz”) and 28 GHz fifth-generation (“5G”) airwave auctions conducted by the FCC. 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 an indefinite-lived asset. |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ntangible assets subject to amortization were as follows at: September 30, 2019 December 31, 2018 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (446.7 ) $ 838.4 $ 1,285.1 $ (414.6 ) $ 870.5 Customer lists 1,758.5 (1,541.0 ) 217.5 1,758.5 (1,450.4 ) 308.1 Cable franchise rights 17.3 (11.7 ) 5.6 17.3 (10.3 ) 7.0 Trade names 21.0 (5.4 ) 15.6 21.0 (3.9 ) 17.1 Developed technology and software 18.0 (11.2 ) 6.8 18.0 (7.7 ) 10.3 Patents 10.6 (10.6 ) — 10.6 (10.5 ) 0.1 Balance $ 3,110.5 $ (2,026.6 ) $ 1,083.9 $ 3,110.5 $ (1,897.4 ) $ 1,213.1 |
Schedule of Finite-Lived Intangible Assets, Methodology and Estimated Useful Life [Table Text Block] | ethodology and useful lives for intangible assets subject to amortization were as follows as of September 30, 2019 : Intangible Assets Amortization Methodology Estimated Useful Life Franchise rights straight-line 30 years Customer lists sum of years digits 5.5 - 15 years Cable franchise rights straight-line 15 years Trade names straight-line 1-10 years Developed technology and software straight-line 3-5 years Patents straight-line 3 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense for intangible assets subject to amortization is estimated to be as follows for each of the five years ended December 31: Year (Millions) 2019 (excluding the nine months ended September 30, 2019) $ 41.5 2020 $ 133.5 2021 $ 100.8 2022 $ 71.0 2023 $ 58.6 |
Debt_ (Tables)
Debt: (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Debt incurred by Windstream Services and its subsidiaries was as follows at: (Millions) September 30, December 31, Issued by Windstream Services: Superpriority debtor-in-possession term loan facility $ 500.0 $ — Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a) 1,180.5 1,180.5 Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 568.4 568.4 Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) 802.0 1,017.0 Senior First Lien Notes – 8.625%, due October 31, 2025 (c) (f) 600.0 600.0 Senior Second Lien Notes – 10.500%, due June 30, 2024 (d) (f) (h) 414.9 414.9 Senior Second Lien Notes – 9.000%, due June 30, 2025 (d) (f) (h) 802.0 802.0 Debentures and notes, without collateral: 2020 Notes – 7.750%, due October 15, 2020 (f) (h) 78.1 78.1 2021 Notes – 7.750%, due October 1, 2021 (f) (h) 70.1 70.1 2022 Notes – 7.500%, due June 1, 2022 (f) (h) 36.2 36.2 2023 Notes – 7.500%, due April 1, 2023 (f) (h) 34.4 34.4 2023 Notes – 6.375%, due August 1, 2023 (f) (h) 806.9 806.9 2024 Notes – 8.750%, due December 15, 2024 (f) (h) 105.8 105.8 Issued by subsidiaries of Windstream Services: Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (e) 100.0 100.0 Net discount on long-term debt (g) — (28.6 ) Unamortized debt issuance costs (g) — (57.6 ) Long-term debt prior to reclassification to liabilities subject to compromise 6,099.3 5,728.1 Less current portion (500.0 ) (5,728.1 ) Less amounts reclassified to liabilities subject to compromise (5,599.3 ) — Total long-term debt $ — $ — Prior to the filing of the Chapter 11 Cases, additional information with respect to our debt obligations was as follows: (a) 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) On January 3, 2019, Windstream Services’ reduced future maturities of its revolving line of credit of $312.0 million using proceeds received from the sale of the Consumer CLEC business. (c) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a first priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. (d) The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a second priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility. (e) These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc. 4. Debt, Continued: (f) Windstream Services may call the remaining aggregate principal amounts of these debentures and notes at various premiums upon early redemption. (g) The net discount balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument. (h) 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. |
Interest Expense, Net Disclosure | Interest expense was as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Interest expense - long-term debt $ 82.9 $ 112.5 $ 259.6 $ 320.1 Interest expense - long-term lease obligations: Telecommunications network assets — 116.2 — 352.1 Real estate contributed to pension plan 1.5 1.5 4.6 4.6 Impact of interest rate swaps (3.0 ) (1.3 ) (8.9 ) (1.3 ) Interest on finance leases and other 1.1 1.9 3.4 4.4 Less capitalized interest expense (1.3 ) (0.8 ) (4.8 ) (2.4 ) Total interest expense $ 81.2 $ 230.0 $ 253.9 $ 677.5 |
Leases Leases (Tables)
Leases Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Cost and Supplemental Information | Components of lease expense were as follows for the three and nine-month periods ended September 30, 2019 : (Millions) Classification Three Months Ended Nine Months Ended Operating lease costs (a) Cost of services, Selling, general and administrative $ 199.9 $ 602.4 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 13.4 31.7 Interest on lease liabilities Interest expense 1.1 3.3 Net lease expense $ 214.4 $ 637.4 (a) Includes short-term leases and variable lease costs which are not material. Supplemental balance sheet information related to leases was as follows: (Millions) September 30, Operating Leases Operating lease right-of-use assets $ 4,066.8 Current portion of operating lease obligations 3,833.2 Operating lease liabilities 254.2 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,087.4 Less amounts reclassified to liabilities subject to compromise (4,087.4 ) Total operating lease liabilities $ — Finance Leases Property, plant and equipment, gross $ 254.2 Accumulated depreciation (180.2 ) Net property, plant and equipment 74.0 Other current liabilities 30.9 Other liabilities 24.0 Finance lease liabilities prior to reclassification to liabilities subject to compromise 54.9 Less amounts reclassified to liabilities subject to compromise (54.9 ) Total finance lease liabilities $ — Weighted Average Remaining Lease Term Operating leases 10.3 years Finance leases 2.9 years Leaseback of real estate contributed to pension plan 10.8 years Weighted Average Discount Rate Operating leases 13.9 % Finance leases 5.73 % Leaseback of real estate contributed to pension plan 8.6 % 5. Leases, Continued: Supplemental cash flow information related to leases was as follows for the nine-month period ended September 30, 2019 : (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 590.3 Operating cash outflows from finance leases $ 3.5 Financing cash outflows from finance leases $ 37.0 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6.4 Finance leases $ 7.6 |
Lessee, Operating Lease, Liability, Maturity | As of September 30, 2019 , future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the nine months ended September 30, 2019) $ 208.6 $ 1.7 $ 8.1 2020 777.0 6.7 26.0 2021 756.2 6.9 10.0 2022 740.4 7.1 5.3 2023 726.3 7.3 5.1 Thereafter 4,498.2 55.0 5.3 Total future minimum lease payments 7,706.7 84.7 59.8 Less: Amounts representing interest 3,619.3 63.5 4.9 Add: Residual value — 51.5 — Present value of lease liabilities $ 4,087.4 $ 72.7 $ 54.9 |
Finance Lease, Liability, Maturity | As of September 30, 2019 , future minimum lease payments under non-cancellable leases were as follows: (Millions) Operating Leases (a) Leaseback of Real Estate Contributed to Pension Plan (a) Financing Leases (a) 2019 (excluding the nine months ended September 30, 2019) $ 208.6 $ 1.7 $ 8.1 2020 777.0 6.7 26.0 2021 756.2 6.9 10.0 2022 740.4 7.1 5.3 2023 726.3 7.3 5.1 Thereafter 4,498.2 55.0 5.3 Total future minimum lease payments 7,706.7 84.7 59.8 Less: Amounts representing interest 3,619.3 63.5 4.9 Add: Residual value — 51.5 — Present value of lease liabilities $ 4,087.4 $ 72.7 $ 54.9 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840, were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments as of December 31, 2018, as disclosed in our 2018 Form 10-K under ASC 840, were as follows: (Millions) Operating Leases (a) Leaseback of Telecommunications Network Assets Leaseback of Real Estate Contributed to Pension Plan (a) Capital Leases (a) 2019 $ 159.0 $ 658.9 $ 6.5 $ 54.5 2020 108.8 662.2 6.7 25.8 2021 87.3 665.6 6.9 8.6 2022 66.3 668.9 7.1 4.3 2023 51.2 672.2 7.3 4.2 Thereafter 182.6 4,323.1 55.0 5.1 Total future minimum lease payments $ 655.2 $ 7,650.9 $ 89.5 102.5 Less: Amounts representing interest 8.4 Present value of lease liabilities $ 94.1 (a) Includes options to extend lease terms that are reasonably certain of being exercised. |
Lessor, Operating Lease, Payments to be Received, Maturity | Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2019 (excluding the nine months ended September 30, 2019) $ 17.1 2020 59.3 2021 42.8 2022 21.1 2023 9.4 Thereafter 3.1 Total future lease receipts $ 152.8 |
Derivatives_ Schedule of Deriva
Derivatives: Schedule of Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) September 30, December 31, Designated portion, measured at fair value: Other current assets $ — $ 15.3 Other current liabilities $ — $ 6.8 Accumulated other comprehensive income $ — $ 39.7 De-designated portion, unamortized value: Liabilities subject to compromise $ 6.1 $ — Accumulated other comprehensive income (loss) $ 26.8 $ (2.4 ) Weighted average fixed rate paid 2.31 % 2.31 % Variable rate received 2.48 % 2.46 % |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Changes in derivative instruments were as follows for the nine-month period ended September 30 : (Millions) 2019 2018 Changes in fair value, net of tax $ (2.4 ) $ 16.1 Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax $ (5.5 ) $ 1.8 |
Offsetting Assets | Information pertaining to derivative assets was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 15.3 $ (3.2 ) $ — $ 12.1 |
Offsetting Liabilities | Information pertaining to derivative liabilities was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (Millions) Gross Amount of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2018: Interest rate swaps $ 6.8 $ (3.2 ) $ — $ 3.6 |
Fair Value Measurements_ (Table
Fair Value Measurements: (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | The fair values of cash equivalents, interest rate swaps and debt were determined using the following inputs at: (Millions) September 30, December 31, Recorded at Fair Value in the Financial Statements: Cash equivalents - Level 1 (a) $ — $ 310.0 Derivatives Interest rate swap assets - Level 2 $ — $ 15.3 Interest rate swap liabilities - Level 2 $ — $ 6.8 Not Recorded at Fair Value in the Financial Statements: (b) Debt, including current portion - Level 2: Included in current portion of long-term debt $ 500.0 $ 4,405.8 Included in liabilities subject to compromise $ 4,163.0 $ — (a) Cash equivalents are highly liquid, actively traded money market funds with next day access. (b) Recognized at carrying value of $6,099.3 million and $5,785.7 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 September 30, 2019 and December 31, 2018 , respectively. |
Revenues_ Revenues (Tables)
Revenues: Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract assets and liabilities from contracts with customers were as follows at: (Millions) September 30, December 31, Contract assets (a) $ 18.9 $ 12.6 Contract liabilities (b) $ 166.5 $ 184.8 Revenues recognized included in the opening contract liability balance $ 168.9 $ 194.9 (a) Included $9.5 million and $8.3 million in prepaid expense and other and $9.4 million and $4.3 million in other assets as of September 30, 2019 and December 31, 2018, respectively. (b) Included $151.4 million and $172.1 million in advance payments and $8.5 million and $12.7 million in other liabilities as of September 30, 2019 and December 31, 2018, respectively. This amount also included $6.6 million in liabilities subject to compromise as of September 30, 2019 . |
Disaggregation of Revenue [Table Text Block] | Revenues recognized from contracts with customers by customer and product type for the three-month period ended September 30, 2019 were as follows: (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 237.2 $ — $ — $ 237.2 Voice-only 26.8 — — 26.8 Video and miscellaneous 9.6 — — 9.6 Core (a) — 282.4 — 282.4 Strategic (b) — 57.2 — 57.2 Legacy (c) — 116.9 — 116.9 Small business 73.9 — — 73.9 Wholesale (d) 52.0 — 64.1 116.1 Switched access (e) 5.9 — 6.3 12.2 Other (g) — 128.0 — 128.0 Service revenues from contracts with customers 405.4 584.5 70.4 1,060.3 Product and fiber sales 14.7 9.2 4.5 28.4 Total revenue from contracts with customers 420.1 593.7 74.9 1,088.7 Other service revenues (h) 100.8 65.4 15.2 181.4 Total revenues and sales $ 520.9 $ 659.1 $ 90.1 $ 1,270.1 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the nine-month period ended September 30, 2019 were as follows: (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 716.7 $ — $ — $ 716.7 Voice-only 83.5 — — 83.5 Video and miscellaneous 29.8 — — 29.8 Core (a) — 888.7 — 888.7 Strategic (b) — 160.8 — 160.8 Legacy (c) — 375.3 — 375.3 Small business 226.7 — — 226.7 Wholesale (d) 155.1 — 207.7 362.8 Switched access (e) 18.4 — 21.4 39.8 Other (g) — 403.3 — 403.3 Service revenues from contracts with customers 1,230.2 1,828.1 229.1 3,287.4 Product and fiber sales 30.7 27.9 4.5 63.1 Total revenue from contracts with customers 1,260.9 1,856.0 233.6 3,350.5 Other service revenues (h) 298.3 191.2 37.2 526.7 Total revenues and sales $ 1,559.2 $ 2,047.2 $ 270.8 $ 3,877.2 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the three-month period ended September 30, 2018 were as follows: (Millions) Kinetic Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 239.3 $ — $ — $ — $ 239.3 Voice-only 29.7 — — — 29.7 Video and miscellaneous 11.1 — — — 11.1 Core (a) — 335.2 — — 335.2 Strategic (b) — 40.2 — — 40.2 Legacy (c) — 152.8 — — 152.8 Small business 80.9 — — — 80.9 Wholesale (d) 57.2 — 70.7 — 127.9 Switched access (e) 6.7 — 8.4 — 15.1 Consumer CLEC (f) — — — 41.6 41.6 Other (g) — 144.3 — — 144.3 Service revenues from contracts with customers 424.9 672.5 79.1 41.6 1,218.1 Product sales 7.5 12.8 — 0.2 20.5 Total revenue from contracts with customers 432.4 685.3 79.1 41.8 1,238.6 Other service revenues (h) 100.0 64.9 17.1 — 182.0 Total revenues and sales $ 532.4 $ 750.2 $ 96.2 $ 41.8 $ 1,420.6 8. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the nine-month period ended September 30, 2018 were as follows: (Millions) Kinetic Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 725.3 $ — $ — $ — $ 725.3 Voice-only 91.8 — — — 91.8 Video and miscellaneous 33.8 — — — 33.8 Core (a) — 1,026.6 — — 1,026.6 Strategic (b) — 110.4 — — 110.4 Legacy (c) — 466.9 — — 466.9 Small business 247.3 — — — 247.3 Wholesale (d) 171.2 — 226.0 — 397.2 Switched access (e) 21.8 — 27.2 — 49.0 Consumer CLEC (f) — — — 129.7 129.7 Other (g) — 442.6 — — 442.6 Service revenues from contracts with customers 1,291.2 2,046.5 253.2 129.7 3,720.6 Product sales 19.6 39.2 — 0.4 59.2 Total revenue from contracts with customers 1,310.8 2,085.7 253.2 130.1 3,779.8 Other service revenues (h) 303.7 198.1 37.7 — 539.5 Total revenues and sales $ 1,614.5 $ 2,283.8 $ 290.9 $ 130.1 $ 4,319.3 (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) Consumer CLEC revenues include high-speed and dial-up Internet, email and other miscellaneous revenues. (g) Other revenues primarily consist of administrative service fees, subscriber line charges, and non-recurring usage-based long-distance revenues. (h) 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 and Po_2
Employee Benefit Plans and Postretirement Benefits: (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [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 Nine Months Ended (Millions) 2019 2018 2019 2018 Benefits earned during the period (a) $ 0.7 $ 0.4 $ 2.2 $ 2.3 Interest cost on benefit obligation (b) 11.0 11.4 33.0 32.0 Net actuarial loss (gain) (b) — (0.1 ) 7.7 (5.7 ) Amortization of prior service credit (b) (0.3 ) (1.2 ) (0.8 ) (3.6 ) Expected return on plan assets (b) (12.4 ) (13.1 ) (37.2 ) (41.4 ) Curtailment gain (b) — — — (2.7 ) Net periodic benefit (income) expense $ (1.0 ) $ (2.6 ) $ 4.9 $ (19.1 ) (a) Included in cost of services and selling, general and administrative expense. (b) Included in other income (expense), net. For 2019, the expected employer contributions for pension benefits consists of $15.2 million to the qualified pension plan to satisfy our remaining 2018 and 2019 funding requirements and $0.8 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. During the first nine months of 2019, we made our required quarterly employer contributions totaling $11.8 million in cash. Comparatively in the first nine months of 2018, we made employer contributions to the qualified pension plan of $8.8 million in cash and also contributed 0.8 million shares of our common stock with a value of approximately $5.8 million . 9. Employee Benefit Plans and Postretirement Benefits, Continued: The components of postretirement benefits expense were as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Interest cost on benefit obligation (a) $ 0.2 $ 0.1 $ 0.6 $ 0.5 Amortization of net actuarial loss (a) — 0.1 — 0.2 Amortization of prior service credit (a) — — (0.2 ) (0.2 ) Net periodic benefit expense $ 0.2 $ 0.2 $ 0.4 $ 0.5 (a) Included in other income (expense), net. |
Share-Based Compensation Plan_2
Share-Based Compensation Plans: (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted stock and restricted stock unit activity for the nine-month period ended September 30, 2019 was as follows: Service-Based Performance-Based (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value (Thousands) Underlying Number of Shares Per Share Weighted Average Fair Value Non-vested at December 31, 2018 522.1 $ 23.34 325.4 $ 28.35 Granted — $ — 698.5 $ 3.40 Vested (132.0 ) $ 32.37 (159.2 ) $ 28.84 Canceled and forfeited (16.9 ) $ 35.24 (731.5 ) $ 4.50 Non-vested at September 30, 2019 373.2 $ 19.61 133.2 $ 27.90 |
Merger, Integration and Other_2
Merger, Integration and Other Costs and Restructuring Charges: (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Merger, Integration and Other Costs and Restructuring Charges [Abstract] | |
Schedule of Merger, Integration and Other Costs and Restructuring Activities | A summary of the merger, integration and other costs and restructuring charges recorded was as follows: Three Months Ended Nine Months Ended September 30, (Millions) 2019 2018 2019 2018 Merger, integration and other costs: Information technology conversion costs $ — $ 0.2 $ 0.3 $ 0.8 Costs related to merger with EarthLink (a) 1.8 2.0 5.8 13.0 Costs related to merger with Broadview (b) — 0.5 — 3.9 Legal fees related to Uniti spin-off litigation (see Note 16) — 5.1 — 9.9 Other — 1.2 1.1 2.8 Total merger, integration and other costs 1.8 9.0 7.2 30.4 Restructuring charges 1.6 6.5 18.2 26.0 Total merger, integration and other costs and restructuring charges $ 3.4 $ 15.5 $ 25.4 $ 56.4 (a) For the three and nine-month periods ended September 30, 2019, these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $1.0 million and $4.3 million , respectively and other miscellaneous expenses of $0.8 million and $1.5 million , respectively. Comparatively, during the three and nine-month periods ended September 30, 2018 , these amounts include severance and employee benefit costs for employees terminated after the acquisitions were $1.0 million and $5.8 million , respectively, contract and lease termination costs of $0.1 million and $4.9 million , respectively, as a result of vacating certain facilities related to the acquired operations of EarthLink, and other miscellaneous expenses of $0.9 million and $2.3 million , respectively. (b) For the nine-month period ended September 30, 2018 , expenses included severance and employee benefit costs for Broadview employees terminated after the acquisition of $1.9 million , and for the three and nine-month periods ended September 30, 2018, other miscellaneous expenses of $0.5 million and $2.0 million , respectively. |
Schedule of Restructuring and Related Costs | The following is a summary of the activity related to the liabilities associated with merger, integration and other costs and restructuring charges at September 30 : Restructuring Charges (Millions) Merger, Integration and Other Charges Severance and Benefit Costs Lease Termination Costs Total Balance at December 31, 2018 $ 4.0 $ 12.6 $ 15.3 $ 31.9 Reclassified to operating lease obligations upon adoption of ASU 2016-02 (4.0 ) — (15.3 ) (19.3 ) Expenses incurred in period 7.2 18.2 — 25.4 Cash outlays during the period (7.2 ) (24.8 ) — (32.0 ) Balance at September 30, 2019 $ — $ 6.0 $ — $ 6.0 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The significant components of the net deferred income tax (asset) liability were as follows: (Millions) September 30, December 31, 2018 Property, plant and equipment $ 439.0 $ 825.5 Goodwill and other intangible assets 224.7 477.7 Operating loss and credit carryforward (558.7 ) (576.8 ) Postretirement and other employee benefits (78.5 ) (79.6 ) Unrealized holding loss and interest rate swaps (1.0 ) 7.2 Deferred compensation (2.0 ) (2.3 ) Bad debt (21.9 ) (15.1 ) Long-term lease obligations (1,050.9 ) (1,170.9 ) Operating lease right-of-use assets 1,025.7 — Deferred debt costs (40.1 ) (19.2 ) Share-based compensation (5.6 ) (6.8 ) Interest expense (24.3 ) — Other, net (7.4 ) (20.4 ) (101.0 ) (580.7 ) Valuation allowance 143.5 685.0 Less amounts reclassified to liabilities subject to compromise (42.5 ) — Deferred income taxes, net $ — $ 104.3 Deferred tax assets $ (1,842.2 ) $ (1,954.0 ) Deferred tax liabilities 1,884.7 2,058.3 Less amounts reclassified to liabilities subject to compromise (42.5 ) — Deferred income taxes, net $ — $ 104.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income: (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income balances, net of tax, were as follows: (Millions) September 30, December 31, Pension and postretirement plans $ 6.8 $ 7.7 Unrealized net gains (losses) on interest rate swaps: Designated portion — 29.7 De-designated portion 20.0 (1.8 ) Accumulated other comprehensive income $ 26.8 $ 35.6 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Unrealized Net Gains (Losses) on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2018 $ 27.9 $ 7.7 $ 35.6 Other comprehensive income before reclassifications (2.4 ) (0.1 ) (2.5 ) Amounts reclassified from other accumulated comprehensive income (a) (5.5 ) (0.8 ) (6.3 ) Balance at September 30, 2019 $ 20.0 $ 6.8 $ 26.8 (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 Nine Months Ended Affected Line Item in the Consolidated Statements of Operations 2019 2018 2019 2018 Interest rate swaps: Amortization of net unrealized (gains) losses on de-designated interest rate swaps $ (3.1 ) $ 0.7 $ (7.3 ) $ 2.4 Interest expense (3.1 ) 0.7 (7.3 ) 2.4 (Loss) income before income taxes 0.7 (0.1 ) 1.8 (0.6 ) Income tax benefit (2.4 ) 0.6 (5.5 ) 1.8 Net (loss) income Pension and postretirement plans: Amortization of net actuarial loss — 0.1 — 0.2 (a) Amortization of prior service credits (0.3 ) (1.2 ) (1.0 ) (3.8 ) (a) (0.3 ) (1.1 ) (1.0 ) (3.6 ) (Loss) income before income taxes 0.1 0.1 0.2 0.9 Income tax benefit (0.2 ) (1.0 ) (0.8 ) (2.7 ) Net (loss) income Total reclassifications for the period, net of tax $ (2.6 ) $ (0.4 ) $ (6.3 ) $ (0.9 ) Net (loss) income (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit expense (see Note 9). |
(Loss) Earnings Per Share_ Sche
(Loss) Earnings Per Share: Schedule of Earnings per Share, Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of net (loss) income and number of shares used in computing basic and diluted (loss) earnings per share was as follows: Three Months Ended Nine Months Ended (Millions, except per share amounts) 2019 2018 2019 2018 Basic and diluted (loss) earnings per share: Numerator: Net (loss) income attributable to common shares $ (115.5 ) $ 41.3 $ (2,969.9 ) $ (173.8 ) Denominator: Basic and diluted shares outstanding Weighted average basic and diluted shares outstanding 42.7 42.5 42.6 40.2 Basic and diluted (loss) earnings per share: Net (loss) income ($2.71 ) $.97 ($69.67 ) ($4.32 ) |
Segment Information_ Segment _2
Segment Information: Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes our segment results: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Kinetic: Revenues and sales $ 520.9 $ 532.4 $ 1,559.2 $ 1,614.5 Costs and expenses 234.3 224.7 660.5 666.4 Segment income $ 286.6 $ 307.7 $ 898.7 $ 948.1 Enterprise: Revenues and sales $ 659.1 $ 750.2 $ 2,047.2 $ 2,283.8 Cost and expenses 532.9 605.2 1,649.2 1,865.0 Segment income $ 126.2 $ 145.0 $ 398.0 $ 418.8 Wholesale: Revenues and sales $ 90.1 $ 96.2 $ 270.8 $ 290.9 Costs and expenses 24.3 28.0 77.3 82.9 Segment income $ 65.8 $ 68.2 $ 193.5 $ 208.0 Consumer CLEC: Revenues and sales $ — $ 41.8 $ — $ 130.1 Costs and expenses — 19.0 — 59.0 Segment income $ — $ 22.8 $ — $ 71.1 Total segment revenues and sales $ 1,270.1 $ 1,420.6 $ 3,877.2 $ 4,319.3 Total segment costs and expenses 791.5 876.9 2,387.0 2,673.3 Total segment income $ 478.6 $ 543.7 $ 1,490.2 $ 1,646.0 |
Schedule of Capital Expenditure [Table Text Block] | Capital expenditures by segment were as follows: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Kinetic $ 128.6 $ 101.6 $ 332.7 $ 259.3 Enterprise 38.0 44.0 116.6 134.3 Wholesale 6.4 10.8 17.1 25.0 Corporate/shared (a) 48.5 40.5 162.5 184.6 Total $ 221.5 $ 196.9 $ 628.9 $ 603.2 (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) income: Three Months Ended Nine Months Ended (Millions) 2019 2018 2019 2018 Total segment income $ 478.6 $ 543.7 $ 1,490.2 $ 1,646.0 Depreciation and amortization (262.2 ) (383.8 ) (809.7 ) (1,136.3 ) Goodwill impairment — — (2,712.3 ) — Merger, integration and other costs (1.8 ) (9.0 ) (7.2 ) (30.4 ) Restructuring charges (1.6 ) (6.5 ) (18.2 ) (26.0 ) Straight-line expense under contractual arrangement with Uniti (168.8 ) — (506.5 ) — Other unassigned operating expenses (a) (78.7 ) (68.8 ) (275.0 ) (220.4 ) Other income (expense), net 0.2 3.2 (10.0 ) 12.9 Reorganization items, net (29.2 ) — (219.5 ) — Net gain on early extinguishment of debt — 190.3 — 190.3 Interest expense (81.2 ) (230.0 ) (253.9 ) (677.5 ) Income tax benefit 29.2 2.2 352.2 67.6 Net (loss) income $ (115.5 ) $ 41.3 $ (2,969.9 ) $ (173.8 ) (a) For the nine-month period 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. In addition, these expenses include spend commitment penalties incurred under certain carrier discount plans of $22.4 million and $81.3 million for the three and nine months ended September 30, 2019, respectively. Comparatively, these expenses include business transformation expenses of $2.9 million and $22.9 million for the three and nine months ended September 30, 2018. |
Preparation of Interim Financ_4
Preparation of Interim Financial Statements: Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019USD ($)Mistates | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Mistates | Sep. 30, 2018USD ($) | Jan. 01, 2020USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Current portion of operating lease obligations | $ 3,833.2 | $ 3,833.2 | $ 3,947.8 | ||||||
Operating lease right-of-use assets | 4,066.8 | 4,066.8 | 4,239.1 | $ 0 | |||||
Operating Lease, Liability | $ 0 | $ 0 | |||||||
Number of States in which Entity Operates | states | 18 | 18 | |||||||
Number of Fiber Route Miles | Mi | 150,000 | 150,000 | |||||||
Net property, plant and equipment | $ 3,582.4 | $ 3,582.4 | 3,614.2 | 4,920.9 | |||||
Deferred income taxes | 0 | 0 | 396.6 | 104.3 | |||||
Accumulated deficit | (3,162.2) | (3,162.2) | (192.3) | (3,205.3) | |||||
Other liabilities | 21.5 | 21.5 | 556.4 | 615.2 | |||||
Goodwill impairment | $ 0 | $ 373.3 | $ 2,339 | $ 0 | $ 2,712.3 | $ 0 | |||
Accounting Standards Update 2016-02 | |||||||||
Current portion of operating lease obligations | 3,947.8 | ||||||||
Operating lease right-of-use assets | 4,239.1 | ||||||||
Operating Lease, Liability | 700 | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 3,013 | ||||||||
Net property, plant and equipment | 33.8 | (1,306.7) | |||||||
Deferred income taxes | 8.5 | 292.3 | |||||||
Accumulated deficit | $ 25.3 | $ 3,038.3 | 3,013 | ||||||
Other liabilities | (58.8) | ||||||||
Windstream Services, LLC | Windstream Holdings, Inc. | |||||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 100.00% | ||||||||
Scenario, Forecast [Member] | Subsequent Event [Member] | Accounting Standards Update 2016-13 | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1.8 | ||||||||
Operating leases [Member] | Accounting Standards Update 2016-02 | |||||||||
Current portion of operating lease obligations | 408.4 | ||||||||
Operating lease right-of-use assets | 3,900 | $ 382.5 | |||||||
Prepaid expenses and other | Accounting Standards Update 2016-02 | |||||||||
Operating lease right-of-use assets | 6.6 | ||||||||
Other liabilities | Accounting Standards Update 2016-02 | |||||||||
Operating lease right-of-use assets | 6.7 | ||||||||
Certain Fiber Assets In Minnesota [Member] | Accounting Standards Update 2016-02 | |||||||||
Other liabilities | 41.5 | ||||||||
Certain Fiber Assets In Minnesota [Member] | Leaseback of Telecommunications Network Assets | Accounting Standards Update 2016-02 | |||||||||
Other liabilities | $ 7.5 |
Preparation of Interim Financ_5
Preparation of Interim Financial Statements: Impact of ASU 2016-02 Adoption - Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Assets | ||||||||
Prepaid expenses and other | $ 159 | |||||||
Net property, plant and equipment | $ 3,582.4 | $ 3,582.4 | 3,614.2 | $ 4,920.9 | ||||
Operating lease right-of-use assets | 4,066.8 | 4,066.8 | 4,239.1 | 0 | ||||
Other assets | 88.1 | |||||||
Goodwill impairment | 0 | $ 373.3 | $ 2,339 | $ 0 | 2,712.3 | $ 0 | ||
Liabilities and Shareholders’ Deficit | ||||||||
Operating lease liabilities | 0 | 0 | ||||||
Current portion of long-term lease obligations | 0 | 0 | 0 | 4,570.3 | ||||
Current portion of operating lease obligations | 3,833.2 | 3,833.2 | 3,947.8 | |||||
Other current liabilities | 209.9 | 209.9 | 372.3 | 387.7 | ||||
Deferred income taxes | 0 | 0 | 396.6 | 104.3 | ||||
Operating lease obligations | 254.2 | 254.2 | 317.2 | |||||
Other liabilities | 21.5 | 21.5 | 556.4 | 615.2 | ||||
Accumulated deficit | $ (3,162.2) | $ (3,162.2) | (192.3) | (3,205.3) | ||||
Accounting Standards Update 2016-02 | ||||||||
Assets | ||||||||
Prepaid expenses and other | (0.7) | |||||||
Net property, plant and equipment | 33.8 | (1,306.7) | ||||||
Operating lease right-of-use assets | 4,239.1 | |||||||
Other assets | (5.9) | |||||||
Liabilities and Shareholders’ Deficit | ||||||||
Operating lease liabilities | (700) | |||||||
Current portion of long-term lease obligations | (4,570.3) | |||||||
Current portion of operating lease obligations | 3,947.8 | |||||||
Other current liabilities | (15.4) | |||||||
Deferred income taxes | 8.5 | 292.3 | ||||||
Operating lease obligations | 317.2 | |||||||
Other liabilities | (58.8) | |||||||
Accumulated deficit | $ 25.3 | $ 3,038.3 | $ 3,013 | |||||
Under ASC 840 | ||||||||
Assets | ||||||||
Prepaid expenses and other | 159.7 | |||||||
Net property, plant and equipment | 4,920.9 | |||||||
Operating lease right-of-use assets | 0 | |||||||
Other assets | 94 | |||||||
Liabilities and Shareholders’ Deficit | ||||||||
Current portion of long-term lease obligations | 4,570.3 | |||||||
Current portion of operating lease obligations | 0 | |||||||
Other current liabilities | 387.7 | |||||||
Deferred income taxes | 104.3 | |||||||
Operating lease obligations | 0 | |||||||
Other liabilities | 615.2 | |||||||
Accumulated deficit | $ (3,205.3) |
Preparation of Interim Financ_6
Preparation of Interim Financial Statements: Impact of ASU 2016-02 Adoption - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Depreciation and amortization | $ 262.2 | $ 383.8 | $ 809.7 | $ 1,136.3 | ||||
Interest expense | 81.2 | 230 | 253.9 | 677.5 | ||||
Income tax benefit (expense) | 29.2 | 2.2 | 352.2 | 67.6 | ||||
Net (loss) income | (115.5) | $ (544.1) | $ (2,310.3) | 41.3 | $ (93.7) | $ (121.4) | (2,969.9) | (173.8) |
Under ASC 840 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Depreciation and amortization | 329.5 | 1,043.8 | ||||||
Interest expense | 192.3 | 591.1 | ||||||
Income tax benefit (expense) | 31.6 | 368.5 | ||||||
Net (loss) income | (122.8) | (3,018.6) | ||||||
Accounting Standards Update 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Depreciation and amortization | (67.3) | (234.1) | ||||||
Interest expense | (111.1) | (337.2) | ||||||
Income tax benefit (expense) | (2.4) | (16.3) | ||||||
Net (loss) income | 7.3 | 48.7 | ||||||
Service revenues | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cost of services | 827 | $ 700.2 | 2,540.2 | $ 2,159.9 | ||||
Service revenues | Under ASC 840 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cost of services | 658.3 | 2,033.9 | ||||||
Service revenues | Accounting Standards Update 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cost of services | $ 168.7 | $ 506.3 |
Preparation of Interim Financ_7
Preparation of Interim Financial Statements: Impact of ASU 2016-02 Adoption - Cash Flow (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in provided by operating activities | $ (464.9) | $ (756.2) |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in provided by operating activities | 156.7 | |
Decrease in cash paid for interest | $ 337.2 |
Chapter 11 Filing (Details)
Chapter 11 Filing (Details) | Feb. 25, 2019 | Sep. 30, 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] - Subsequent Event [Member] $ in Millions | Mar. 02, 2020USD ($) |
Subsequent Event [Line Items] | |
Bankruptcy Claims, Mediation Process Period | 7 months |
Bankruptcy Settlement, Maximum Amount To Fund Capital Improvements | $ 1,750 |
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 400 |
Bankruptcy Settlement, Period To Pay Amounts Funded For Capital Improvements | 5 years |
Bankruptcy Settlement, Annual Interest Rate | 9.00% |
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 | |
Subsequent Event [Line Items] | |
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 432 |
Bankruptcy Settlement, Amount Funded To Purchase Assets | 40 |
Bankruptcy Settlement, Amount Funded From Proceeds Of Common Stock | 244.5 |
Maximum | |
Subsequent Event [Line Items] | |
Bankruptcy Settlement, Quarterly Amounts Payable 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 ($) | Mar. 02, 2020 | May 08, 2020 | Sep. 30, 2019 | Aug. 02, 2018 |
2023 Notes - 6.375%, due August 1, 2023 | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Plan of Reorganization, Reduction of Funded Debt | $ 4,000,000,000 | |||
Debtor Reorganization Items, Facility Maximum Amount | $ 3,250,000,000 | |||
Reorganization Items, Backstop Premium, Percentage | 8.00% | |||
Reorganization Items, Equity Rights Offering, Amount | $ 750,000,000 | |||
Reorganization Items, Backdrop Premium, Percentage, If Reorganization Plan Not Confirmed | 4.00% | |||
Reorganization Items, Backdrop Premium, If Reorganization Plan Not Confirmed | $ 30,000,000 | |||
Subsequent Event [Member] | Senior Lien [Member] | ||||
Subsequent Event [Line Items] | ||||
Plan of Reorganization, Participating Parties, Percentage | 94.00% | |||
Subsequent Event [Member] | Junior Lien [Member] | ||||
Subsequent Event [Line Items] | ||||
Plan of Reorganization, Participating Parties, Percentage | 54.00% | |||
Subsequent Event [Member] | Unsecured Debt | ||||
Subsequent Event [Line Items] | ||||
Plan of Reorganization, Participating Parties, Percentage | 39.00% | |||
Subsequent Event [Member] | Holders of Midwest Notes [Member] | ||||
Subsequent Event [Line Items] | ||||
Plan of Reorganization, Participating Parties, Percentage | 72.00% |
Chapter 11 Filing, Going Conc_6
Chapter 11 Filing, Going Concern and Other Related Matters Plan of Reorganization (Details) - Subsequent Event [Member] $ in Millions | Apr. 01, 2020USD ($) |
Senior Lien [Member] | |
Subsequent Event [Line Items] | |
Plan of Reorganization, New Common Stock to be Distributed, Percent | 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Liabilities Subject to Compromise [Abstract] | ||
Accounts payable | $ 346.6 | |
Advance payments | 8.7 | |
Accrued taxes | 20.2 | |
Other current liabilities | 102.7 | |
Deferred taxes | 42.5 | |
Operating lease liabilities | 4,087.4 | |
Pension and other employee benefit plan obligations | 316.9 | |
Other liabilities | 201.1 | |
Accounts payable, accrued and other liabilities | 5,126.1 | |
Debt subject to compromise | 5,599.3 | $ 0 |
Accrued interest on debt subject to compromise | 28.9 | |
Long-term debt and accrued interest | 5,628.2 | |
Total liabilities subject to compromise | $ 10,754.3 | $ 0 |
Potential Claims (Details)
Potential Claims (Details) - Subsequent Event [Member] $ in Billions | 15 Months Ended |
May 15, 2020USD ($)claims | |
Subsequent Event [Line Items] | |
Bankruptcy Claims, Number Claims Filed | claims | 8,250 |
Bankruptcy Claims, Amount of Claims Filed | $ | $ 16.5 |
Reorganization Items (Details)
Reorganization Items (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Reorganization Items [Line Items] | |||||
Write-off of deferred long-term debt issuance costs | $ 0 | $ 54.7 | |||
Write-off of original issue net discount on debt subject to compromise | 0 | 27.1 | |||
Debtor-in-possession financing costs | 1 | 43.4 | |||
Professional fees and other bankruptcy related costs | 32.4 | 99.1 | |||
Provision for estimated damages on rejected executory contracts | 0.2 | 25.5 | |||
Debtor Reorganization Items, Net Gain (Loss) on Rejection of Leases and Other Executory Contracts | (0.2) | (17.6) | |||
Vendor settlements and other adjustments to liabilities subject to compromise | (4.2) | (12.7) | |||
Reorganization items, net | 29.2 | $ 0 | 219.5 | $ 0 | |
Payments of Debt Issuance Costs | 24.4 | $ 23.5 | |||
Term Loan Commitments [Member] | Superpriority Term Loan Facility [Member] | |||||
Reorganization Items [Line Items] | |||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 500 | 500 | $ 0 | ||
Reorganization items, net [Member] | |||||
Reorganization Items [Line Items] | |||||
Payments of Debt Issuance Costs | $ 16.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets: Goodwill Rollforward (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)reporting_unit | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | ||||||||
Accumulated deficit | $ (3,162.2) | $ (3,162.2) | $ (192.3) | $ (3,205.3) | ||||
Number of Reporting Units | reporting_unit | 3 | |||||||
Amortization of Intangible Assets | 42.2 | $ 56.1 | $ 129.2 | $ 171.2 | ||||
Goodwill [Roll Forward] | ||||||||
Goodwill, Gross - Beginning of Period | $ 4,614.5 | 4,614.5 | ||||||
Accumulated impairment loss | (1,840.8) | (1,840.8) | ||||||
Goodwill, Net - Beginning of Period | 2,773.7 | 2,773.7 | ||||||
Goodwill impairment | 0 | $ 373.3 | 2,339 | $ 0 | 2,712.3 | $ 0 | ||
Goodwill, Reallocation Adjustment | 0 | |||||||
Goodwill, Gross - End of Period | 4,614.5 | 4,614.5 | ||||||
Accumulated impairment loss | (4,553.1) | (4,553.1) | ||||||
Goodwill, Net - End of Period | 61.4 | 61.4 | ||||||
Kinetic | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, Gross - Beginning of Period | 0 | 0 | ||||||
Accumulated impairment loss | 0 | 0 | ||||||
Goodwill, Net - Beginning of Period | 0 | 0 | ||||||
Goodwill impairment | 254.3 | 254.3 | 0 | |||||
Goodwill, Reallocation Adjustment | 254.3 | |||||||
Goodwill, Gross - End of Period | 254.3 | 254.3 | ||||||
Accumulated impairment loss | (254.3) | (254.3) | ||||||
Goodwill, Net - End of Period | 0 | 0 | ||||||
Consumer & Small Business | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, Gross - Beginning of Period | 2,321.2 | 2,321.2 | ||||||
Accumulated impairment loss | (1,417.8) | (1,417.8) | ||||||
Goodwill, Net - Beginning of Period | 903.4 | 903.4 | ||||||
Goodwill impairment | 0 | 903.4 | ||||||
Goodwill, Reallocation Adjustment | 0 | |||||||
Goodwill, Gross - End of Period | 2,321.2 | 2,321.2 | ||||||
Accumulated impairment loss | (2,321.2) | (2,321.2) | ||||||
Goodwill, Net - End of Period | 0 | 0 | ||||||
Enterprise | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, Gross - Beginning of Period | 996.2 | 996.2 | ||||||
Accumulated impairment loss | 0 | 0 | ||||||
Goodwill, Net - Beginning of Period | 996.2 | 996.2 | ||||||
Goodwill impairment | 119 | 119 | 996.2 | |||||
Goodwill, Reallocation Adjustment | 119 | |||||||
Goodwill, Gross - End of Period | 1,115.2 | 1,115.2 | ||||||
Accumulated impairment loss | (1,115.2) | (1,115.2) | ||||||
Goodwill, Net - End of Period | 0 | 0 | ||||||
Wholesale | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, Gross - Beginning of Period | 1,297.1 | 1,297.1 | ||||||
Accumulated impairment loss | (423) | (423) | ||||||
Goodwill, Net - Beginning of Period | 874.1 | 874.1 | ||||||
Goodwill impairment | 0 | 439.4 | ||||||
Goodwill, Reallocation Adjustment | (373.3) | |||||||
Goodwill, Gross - End of Period | 923.8 | 923.8 | ||||||
Accumulated impairment loss | (862.4) | (862.4) | ||||||
Goodwill, Net - End of Period | $ 61.4 | $ 61.4 | ||||||
Accounting Standards Update 2016-02 | ||||||||
Goodwill [Line Items] | ||||||||
Accumulated deficit | $ 25.3 | $ 3,038.3 | $ 3,013 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets: Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible asset, term of license | 10 years | |
FCC Spectrum licenses (a) | $ 26.6 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets: Intangible assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 3,110.5 | $ 3,110.5 |
Accumulated Amortization | (2,026.6) | (1,897.4) |
Net Carrying Value | 1,083.9 | 1,213.1 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 1,758.5 | 1,758.5 |
Accumulated Amortization | (1,541) | (1,450.4) |
Net Carrying Value | 217.5 | 308.1 |
Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 1,285.1 | 1,285.1 |
Accumulated Amortization | (446.7) | (414.6) |
Net Carrying Value | 838.4 | 870.5 |
Cable Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 17.3 | 17.3 |
Accumulated Amortization | (11.7) | (10.3) |
Net Carrying Value | 5.6 | 7 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 21 | 21 |
Accumulated Amortization | (5.4) | (3.9) |
Net Carrying Value | 15.6 | 17.1 |
Developed technology and software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 18 | 18 |
Accumulated Amortization | (11.2) | (7.7) |
Net Carrying Value | 6.8 | 10.3 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 10.6 | 10.6 |
Accumulated Amortization | (10.6) | (10.5) |
Net Carrying Value | $ 0 | $ 0.1 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets: Intangible assets - Amortization Methodology (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Franchise Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Customer Lists [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | sum of years digits |
Cable Franchise Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Developed technology and software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Finite-Lived Intangible Assets, Amortization Method | straight-line |
Minimum | Customer Lists [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years 6 months |
Minimum | Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Minimum | Developed technology and software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum | Customer Lists [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Maximum | Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Maximum | Developed technology and software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets: Intangible Assets - Future Amortization (Details) $ in Millions | Sep. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 41.5 |
2020 | 133.5 |
2021 | 100.8 |
2022 | 71 |
2023 | $ 58.6 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Aug. 02, 2018 |
Debt Instrument [Line Items] | |||
Net discount on long-term debt, net (g) | $ 0 | $ (28.6) | |
Unamortized debt issuance costs (g) | 0 | (57.6) | |
Long-term debt prior to reclassification to liabilities subject to compromise | 6,099.3 | 5,728.1 | |
Less current portion | (500) | (5,728.1) | |
Less amounts reclassified to liabilities subject to compromise | (5,599.3) | 0 | |
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 | 1,017 | |
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) | |||
Debt Instrument [Line Items] | |||
Notes Payable | $ 414.9 | ||
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) | |||
Debt Instrument [Line Items] | |||
Notes Payable | 802 | ||
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 | |||
Debt Instrument [Line Items] | |||
Notes Payable | 414.9 | ||
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 | |||
Debt Instrument [Line Items] | |||
Notes Payable | 18.8 | ||
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 | |||
Debt Instrument [Line Items] | |||
Notes Payable | 86 | ||
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 | |||
Debt Instrument [Line Items] | |||
Notes Payable | $ 340.7 | ||
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 | $ 0 |
Debt Interest Rates (Details)
Debt Interest Rates (Details) - USD ($) | Feb. 17, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 02, 2018 |
Senior secured credit facilities [Domain] | ||||
Debt Disclosure [Line Items] | ||||
Debt instrument, Default interest rate | $ 0.0200 | |||
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% | |||
Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | |||
Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||
2020 Notes - 7.750%, due October 15, 2020 | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |||
2021 Notes - 7.750% due October 1, 2021 | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |||
2023 Notes - 7.500% due April 1, 2023 | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |||
2023 Notes - 6.375%, due August 1, 2023 | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | ||
Secured Debt | Senior secured credit facility, Tranche B7 | ||||
Debt Disclosure [Line Items] | ||||
Senior secured credit facility, new borrowings, issuance percent | 99.50% | |||
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 | 7.59% | 3.90% | ||
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 | Secured Debt | Senior secured credit facility, Tranche B7 | ||||
Debt Disclosure [Line Items] | ||||
Quarterly Amortization Payment on Term Loans, Stated As A Percent of Initial Principal Amount | 0.25% | |||
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% | 3.40% | ||
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% | 6.25% | ||
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 | Jan. 03, 2019 | Feb. 24, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Feb. 25, 2019 | Dec. 31, 2018 |
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 | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Lines of Credit | $ 150 | |||||
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 | 627 | ||||
Repayments of Lines of Credit | $ 370 | $ 372 | ||||
Letters of Credit Outstanding, Amount | 1.1 | |||||
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 | |||||
Proceeds from Lines of Credit | 400 | |||||
Superpriority Term Loan Facility [Member] | Term Loan Commitments [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debtor-in-Possession Financing, Borrowings Outstanding | 500 | $ 0 | ||||
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 | 0 | |||||
Debtor-in-Possession Financing, Letters of Credit Outstanding | 28.7 | |||||
Debtor-in-Possession Financing, Letters of Credit Outstanding, Amount For Potential Professional Fees | 57.8 | |||||
Debtor-in-Possession Financing, Remaining Borrowing Capacity | $ 413.5 | |||||
Consumer and Small Business CLEC [Member] | Senior secured credit facility, Revolving line of credit - variable rates, due April 24, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Lines of Credit | $ 312 |
Debt_ Net Gain on Early Extingu
Debt: Net Gain on Early Extinguishment of Debt (Details) - USD ($) $ in Millions | Aug. 02, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||||
Consent Fees including Arrangement, Legal and Third-Party Fees | $ 18.4 | ||||
Net gain on early extinguishment of debt | 190.3 | $ 0 | $ 190.3 | $ 0 | $ 190.3 |
Notes Reduction | 226 | ||||
Write off of Deferred Debt Issuance Cost | 35.7 | ||||
Interest Expense, Debt | $ 6.5 | ||||
Interest Expense | $ 81.2 | $ 230 | $ 253.9 | $ 677.5 | |
Notes 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||
Notes Payable | $ 414.9 | ||||
Senior Second Lien Notes - 10.500%, due June 30, 2024 (c) (e) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.50% | ||||
Notes Payable | $ 414.9 | ||||
Notes 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||
Notes Payable | $ 18.8 | ||||
Notes 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||||
Notes Payable | $ 5.3 | ||||
Notes 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||||
Notes Payable | $ 86 | ||||
Notes Aug 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | 6.375% | 6.375% | ||
Notes Payable | $ 340.7 | ||||
Notes 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ||||
Notes Payable | $ 578.6 | ||||
Senior Second Lien Notes - 9.000%, due June30, 2025 (c) (e) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | ||||
Notes Payable | $ 802 | ||||
Extinguishment method of accounting [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Gross | $ 11.9 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Expense [Abstract] | ||||
Interest expense - long-term debt | $ 82.9 | $ 112.5 | $ 259.6 | $ 320.1 |
Interest expense - long-term lease obligation - Telecommunications network assets | 0 | 116.2 | 0 | 352.1 |
Interest expense - long-term lease obligation - Real estate contributed to pension plan | 1.5 | 1.5 | 4.6 | 4.6 |
Impact of interest rate swaps | (3) | (1.3) | (8.9) | (1.3) |
Interest on capital leases and other | 1.1 | 1.9 | 3.4 | 4.4 |
Less capitalized interest expense | (1.3) | (0.8) | (4.8) | (2.4) |
Total interest expense | $ 81.2 | $ 230 | $ 253.9 | $ 677.5 |
Leases Lessee - Narrative (Deta
Leases Lessee - Narrative (Details) $ in Millions | Apr. 24, 2015 | Sep. 30, 2019USD ($)renewal_option |
Lessee, Lease, Description [Line Items] | ||
Sale Leaseback Transaction, Liability | $ 72.7 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 1 year | |
Operating lease, renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 30 years | |
Operating lease, renewal term | 10 years | |
Network Assets | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 10 years 7 months 6 days | |
Operating lease, renewal term | 5 years | |
Operating lease, initial term | 15 years | |
Operating lease, number of renewal options | renewal_option | 4 | |
Operating lease, annual rental payments | $ 659 | |
Operating lease, annual base rent escalator | 0.50% | |
Operating lease, discount rate | 13.90% | |
Real Property | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, number of renewal options | renewal_option | 3 | |
Finance lease, renewal term | 5 years | |
Real Property | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, annual base rent escalator | 2.00% | |
Real Property | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, annual base rent escalator | 3.00% | |
Property Lease, Ten Year Lease Term | Real Property | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, initial lease term | 10 years | |
Property Lease, Twenty Year Lease Term | Real Property | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, initial lease term | 20 years | |
Finance lease, annual rent payments | $ 6 |
Leases Lessee - Components of L
Leases Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Finance lease costs | ||
Net lease expense | $ 214.4 | $ 637.4 |
Cost of services and selling, general and administrative expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 199.9 | 602.4 |
Depreciation and amortization | ||
Finance lease costs | ||
Amortization of right-of-use assets | 13.4 | 31.7 |
Interest Expense [Member] | ||
Finance lease costs | ||
Interest on lease liabilities | $ 1.1 | $ 3.3 |
Leases Lessee - Schedule of Sup
Leases Lessee - Schedule of Supplemental Balance Sheet Related to Leases (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating Leases | |||
Operating lease right-of-use assets | $ 4,066.8 | $ 4,239.1 | $ 0 |
Current portion of operating lease obligations | 3,833.2 | 3,947.8 | |
Operating lease obligations | 254.2 | $ 317.2 | |
Operating lease liabilities prior to reclassification to liabilities subject to compromise | 4,087.4 | ||
Less amounts reclassified to liabilities subject to compromise | (4,087.4) | ||
Operating lease liabilities | 0 | ||
Finance Leases | |||
Property, plant and equipment, gross | 254.2 | ||
Accumulated depreciation | (180.2) | ||
Net property, plant and equipment | 74 | ||
Other current liabilities | 30.9 | ||
Other liabilities | 24 | ||
Finance lease liabilities prior to reclassification to liabilities subject to compromise | 54.9 | ||
Less amounts reclassified to liabilities subject to compromise | (54.9) | ||
Finance lease liabilities | $ 0 | ||
Weighted Average Remaining Lease Term | |||
Operating leases | 10 years 3 months 18 days | ||
Finance leases | 2 years 10 months 24 days | ||
Leaseback of real estate contributed to pension plan | 10 years 9 months 18 days | ||
Weighted Average Discount Rate | |||
Operating leases | 13.90% | ||
Finance leases | 5.73% | ||
Leaseback of real estate contributed to pension plan | 8.60% |
Leases Lessee - Supplemental Ca
Leases Lessee - Supplemental Cash Flow Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflows from operating leases | $ 590.3 |
Operating cash outflows from finance leases | 3.5 |
Financing cash outflows from finance leases | 37 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 6.4 |
Finance leases | $ 7.6 |
Leases Lessee - Future Minimum
Leases Lessee - Future Minimum Lease Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 (excluding the nine months ended September 30, 2019) | $ 208.6 |
2020 | 777 |
2021 | 756.2 |
2022 | 740.4 |
2023 | 726.3 |
Thereafter | 4,498.2 |
Total future minimum lease payments | 7,706.7 |
Less: Amounts representing interest | 3,619.3 |
Present value of lease liabilities | 4,087.4 |
Leaseback of Real Estate Contributed to Pension Plan | |
2019 (excluding the nine months ended September 30, 2019) | 1.7 |
2020 | 6.7 |
2021 | 6.9 |
2022 | 7.1 |
2023 | 7.3 |
Thereafter | 55 |
Total future minimum lease payments | 84.7 |
Less: Amounts representing interest | 63.5 |
Add: Residual value | 51.5 |
Present value of lease liabilities | 72.7 |
Finance Leases | |
2019 (excluding the nine months ended September 30, 2019) | 8.1 |
2020 | 26 |
2021 | 10 |
2022 | 5.3 |
2023 | 5.1 |
Thereafter | 5.3 |
Total future minimum lease payments | 59.8 |
Less: Amounts representing interest | 4.9 |
Present value of lease liabilities | $ 54.9 |
Leases Lessee - Future Minimu_2
Leases Lessee - Future Minimum Payments Under ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 159 |
2020 | 108.8 |
2021 | 87.3 |
2022 | 66.3 |
2023 | 51.2 |
Thereafter | 182.6 |
Total future minimum lease payments | 655.2 |
Capital Leases | |
2019 | 54.5 |
2020 | 25.8 |
2021 | 8.6 |
2022 | 4.3 |
2023 | 4.2 |
Thereafter | 5.1 |
Total future minimum lease payments | 102.5 |
Less: Amounts representing interest | 8.4 |
Present value of lease liabilities | 94.1 |
Leaseback of Telecommunications Network Assets | |
Leaseback Maturity | |
2019 | 658.9 |
2020 | 662.2 |
2021 | 665.6 |
2022 | 668.9 |
2023 | 672.2 |
Thereafter | 4,323.1 |
Total future minimum lease payments | 7,650.9 |
Leaseback of Real Estate Contributed to Pension Plan | |
Leaseback Maturity | |
2019 | 6.5 |
2020 | 6.7 |
2021 | 6.9 |
2022 | 7.1 |
2023 | 7.3 |
Thereafter | 55 |
Total future minimum lease payments | $ 89.5 |
Leases Lessor - Narrative (Deta
Leases Lessor - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Operating lease income | $ 66.8 | $ 190.9 |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, term of contract | 1 year | |
Lessor, Operating Lease, Renewal Term | 1 year | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, term of contract | 20 years | |
Lessor, Operating Lease, Renewal Term | 10 years |
Leases Lessor - Future Lease Ma
Leases Lessor - Future Lease Maturities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 17.1 |
2020 | 59.3 |
2021 | 42.8 |
2022 | 21.1 |
2023 | 9.4 |
Thereafter | 3.1 |
Total future lease receipts | $ 152.8 |
Derivatives_ Additional informa
Derivatives: Additional information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($)derivativesderivative | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)derivativesderivative | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Feb. 27, 2017USD ($) | Sep. 21, 2016USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Number of Instruments Held | derivatives | 2 | 2 | |||||
Derivative, Cash Received on Hedge | $ 9.6 | ||||||
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 6.1 | 6.1 | |||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 9.8 | 9.8 | |||||
Changes in fair value of effective portion, net of tax (a) | $ 0 | $ (1.9) | $ 3.2 | $ (21.6) | |||
Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Number of Instruments Held | derivative | 6 | 6 | |||||
Derivative Asset, Notional Amount | $ 675 | $ 500 | $ 200 | ||||
Derivative, Average Fixed Interest Rate | 2.984% | ||||||
Derivative, Fixed Interest Rate | 1.8812% | 1.1275% | |||||
Derivative, Weighted Average Fixed Interest Rate | 2.31% | 2.31% | 2.31% | ||||
Variable rate received | 2.48% | 2.48% | 2.46% | ||||
Off-market interest rate swap | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Number of Instruments Held | derivative | 3 | 3 | |||||
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) | $ (2.4) | 16.1 | |||||
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) | (5.5) | $ 1.8 | |||||
Other current assets | Designated as Hedging Instrument [Member] | Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 0 | 0 | $ 15.3 | ||||
Other Current Liabilities | Designated as Hedging Instrument [Member] | Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 0 | 6.8 | ||||
Liabilities Subject to Compromise | De-Designated Hedging Instrument [Member] | Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Liabilities Subject to Compromise, Derivative Liability | 6.1 | 6.1 | 0 | ||||
Accumulated Other Comprehensive Income (Loss) | Designated as Hedging Instrument [Member] | Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 0 | 39.7 | ||||
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 | $ 26.8 | $ 26.8 | $ (2.4) |
Derivatives_ Offsetting assets
Derivatives: Offsetting assets (Details) $ in Millions | Dec. 31, 2018USD ($) |
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | |
Gross Amount of Assets Presented in the Consolidated Balance Sheets | $ 15.3 |
Financial Instruments | (3.2) |
Cash Collateral Received | 0 |
Net Amount | $ 12.1 |
Derivatives_ Offsetting liabili
Derivatives: Offsetting liabilities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | |
Gross Amount of Liabilities Presented in the Consolidated Balance Sheets | $ 6.8 |
Financial Instruments | (3.2) |
Cash Collateral Received | 0 |
Net Amount | $ 3.6 |
Fair Value Measurements_ (Detai
Fair Value Measurements: (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Fair Value, Option, Events Triggering Election, Reasons | No | |
Cash and Cash Equivalents - Level 1 | $ 0 | $ 310 |
Other Current Liabilities | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Decrease in fair value of interest rate swaps to reflect non-performance risk | 2.9 | |
Fair Value, Measurements, Recurring | Level 2 measurements: | Other current assets | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Interest rate swap assets - Level 2 | 0 | 15.3 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Other Current Liabilities | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Interest rate swap liabilities - Level 2 | 0 | 6.8 |
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 | 500 | 4,405.8 |
Included in liabilities subject to compromise | 500 | 4,405.8 |
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 | 4,163 | 0 |
Included in liabilities subject to compromise | 4,163 | 0 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Included in current portion of long-term debt | 6,099.3 | 5,785.7 |
Included in liabilities subject to compromise | $ 6,099.3 | $ 5,785.7 |
Revenues_ Contract Assets and L
Revenues: Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Contract with Customer, Asset, Net | ||
Contract assets (a) | $ 18.9 | $ 12.6 |
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 166.5 | 184.8 |
Revenues recognized included in the opening contract liability balance | 168.9 | 194.9 |
Prepaid expenses and other | ||
Contract with Customer, Asset, Net | ||
Contract assets (a) | 9.5 | 8.3 |
Other assets | ||
Contract with Customer, Asset, Net | ||
Contract assets (a) | 9.4 | 4.3 |
Advance payments and customer deposits | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 151.4 | 172.1 |
Other liabilities | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | 8.5 | $ 12.7 |
Liabilities Subject to Compromise | ||
Change in Contract with Customer, Liabilities | ||
Contract liabilities (b) | $ 6.6 |
Revenues_ Revenue Performance O
Revenues: Revenue Performance Obligations (Details) $ in Billions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Amount of remaining performance obligation | $ 2.7 |
Expected Timing of Satisfaction: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining obligation to be recognized | 13.00% |
Expected Timing of Satisfaction: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining obligation to be recognized | 41.00% |
Expected Timing of Satisfaction: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining obligation to be recognized | 25.00% |
Revenues_ Revenue by Category (
Revenues: Revenue by Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | $ 1,270.1 | $ 1,420.6 | $ 3,877.2 | $ 4,319.3 |
High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 237.2 | 239.3 | 716.7 | 725.3 |
Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 26.8 | 29.7 | 83.5 | 91.8 |
Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 9.6 | 11.1 | 29.8 | 33.8 |
Core (a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 282.4 | 335.2 | 888.7 | 1,026.6 |
Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 57.2 | 40.2 | 160.8 | 110.4 |
Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 116.9 | 152.8 | 375.3 | 466.9 |
Small business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 73.9 | 80.9 | 226.7 | 247.3 |
Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 116.1 | 127.9 | 362.8 | 397.2 |
Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 12.2 | 15.1 | 39.8 | 49 |
Consumer CLEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 41.6 | 129.7 | ||
Other (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 128 | 144.3 | 403.3 | 442.6 |
Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 1,060.3 | 1,218.1 | 3,287.4 | 3,720.6 |
Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 28.4 | 20.5 | 63.1 | 59.2 |
Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 1,088.7 | 1,238.6 | 3,350.5 | 3,779.8 |
Other service revenues (h) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 181.4 | 182 | 526.7 | 539.5 |
Kinetic | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 520.9 | 532.4 | 1,559.2 | 1,614.5 |
Kinetic | High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 237.2 | 239.3 | 716.7 | 725.3 |
Kinetic | Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 26.8 | 29.7 | 83.5 | 91.8 |
Kinetic | Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 9.6 | 11.1 | 29.8 | 33.8 |
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 | 73.9 | 80.9 | 226.7 | 247.3 |
Kinetic | Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 52 | 57.2 | 155.1 | 171.2 |
Kinetic | Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 5.9 | 6.7 | 18.4 | 21.8 |
Kinetic | Consumer CLEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Kinetic | Other (g) | ||||
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 | 405.4 | 424.9 | 1,230.2 | 1,291.2 |
Kinetic | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 14.7 | 7.5 | 30.7 | 19.6 |
Kinetic | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 420.1 | 432.4 | 1,260.9 | 1,310.8 |
Kinetic | Other service revenues (h) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 100.8 | 100 | 298.3 | 303.7 |
Enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 659.1 | 750.2 | 2,047.2 | 2,283.8 |
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 | 282.4 | 335.2 | 888.7 | 1,026.6 |
Enterprise | Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 57.2 | 40.2 | 160.8 | 110.4 |
Enterprise | Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 116.9 | 152.8 | 375.3 | 466.9 |
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 | Consumer CLEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Enterprise | Other (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 128 | 144.3 | 403.3 | 442.6 |
Enterprise | Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 584.5 | 672.5 | 1,828.1 | 2,046.5 |
Enterprise | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 9.2 | 12.8 | 27.9 | 39.2 |
Enterprise | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 593.7 | 685.3 | 1,856 | 2,085.7 |
Enterprise | Other service revenues (h) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 65.4 | 64.9 | 191.2 | 198.1 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 90.1 | 96.2 | 270.8 | 290.9 |
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 | 64.1 | 70.7 | 207.7 | 226 |
Wholesale | Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 6.3 | 8.4 | 21.4 | 27.2 |
Wholesale | Consumer CLEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Wholesale | Other (g) | ||||
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 | 70.4 | 79.1 | 229.1 | 253.2 |
Wholesale | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 4.5 | 0 | 4.5 | 0 |
Wholesale | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 74.9 | 79.1 | 233.6 | 253.2 |
Wholesale | Other service revenues (h) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | $ 15.2 | 17.1 | $ 37.2 | 37.7 |
Consumer CLEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 41.8 | 130.1 | ||
Consumer CLEC | High-speed Internet bundles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Voice-only | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Video and miscellaneous | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Core (a) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Strategic (b) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Legacy (c) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Small business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Wholesale (d) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Switched access (e) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Consumer CLEC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 41.6 | 129.7 | ||
Consumer CLEC | Other (g) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0 | 0 | ||
Consumer CLEC | Service revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 41.6 | 129.7 | ||
Consumer CLEC | Product and fiber sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 0.2 | 0.4 | ||
Consumer CLEC | Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | 41.8 | 130.1 | ||
Consumer CLEC | Other service revenues (h) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues and sales | $ 0 | $ 0 |
Revenues_ Additional Informatio
Revenues: Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 51.6 | $ 51.6 | $ 45.5 | ||
Deferred contract costs, amortization | 10.4 | $ 10.6 | 30.3 | $ 31.9 | |
Unbilled Contracts Receivable | 35 | 35 | 40 | ||
Prepaid expenses and other | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | 35 | 35 | 30.4 | ||
Other assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 16.6 | $ 16.6 | $ 15.1 | ||
Minimum | |||||
Capitalized Contract Cost [Line Items] | |||||
Estimated Customer Life | 18 months | ||||
Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Estimated Customer Life | 43 months |
Employee Benefit Plans and Po_3
Employee Benefit Plans and Postretirement Benefits: Components of Pension Expense and Postretirement Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits earned during the period (a) | $ 0.7 | $ 0.4 | $ 2.2 | $ 2.3 |
Interest cost on benefit obligation (b) | 11 | 11.4 | 33 | 32 |
Net actuarial loss (gain) (b) | 0 | (0.1) | 7.7 | (5.7) |
Amortization of prior service credit (b) | (0.3) | (1.2) | (0.8) | (3.6) |
Expected return on plan assets (b) | (12.4) | (13.1) | (37.2) | (41.4) |
Curtailment gain (b) | 0 | 0 | 0 | (2.7) |
Net periodic benefit (income) expense | (1) | (2.6) | 4.9 | (19.1) |
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost on benefit obligation (b) | 0.2 | 0.1 | 0.6 | 0.5 |
Amortization of net actuarial loss (a) | 0 | 0.1 | 0 | 0.2 |
Amortization of prior service credit (b) | 0 | 0 | (0.2) | (0.2) |
Net periodic benefit (income) expense | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.5 |
Employee Benefit Plans and Po_4
Employee Benefit Plans and Postretirement Benefits: (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
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 | $ 5.8 | $ 4.7 | $ 19.3 | $ 16.8 |
Defined Contribution Plan, Contributions by Employer, Cash | 26.4 | |||
Annual matching contribution to defined contribution plan, Common Stock | 3.6 | |||
Defined Contribution Plan, Contributions by Employer, Common Stock, Value | $ 28.3 | |||
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement Benefit Contributions | 0.5 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected annual employer contributions | 15.2 | 15.2 | ||
Required quarterly employer contribution - cash | 11.8 | $ 8.8 | ||
Required quarterly employer contribution - Common Stock - in shares | 0.8 | |||
Required quarterly employer contribution - Fair value of common stock contribution | $ 5.8 | |||
Other Pension, Postretirement and Supplemental Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected annual employer contributions | $ 0.8 | $ 0.8 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Operating Target Consideration Period | 3 years | |||||||
Unrecognized compensation expense - RSUs | $ 1.3 | $ 1.3 | ||||||
Weighted average vesting period | 9 months 18 days | |||||||
Fair value of shares vested, RSUs | $ 8.9 | $ 22.5 | ||||||
Share-based compensation expense | $ 1.1 | $ (1.6) | $ 2.4 | $ 2.8 | $ 3.1 | $ 4.3 | ||
Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance-based restricted stock units, as a percentage of the award | 0.00% | |||||||
Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance-based restricted stock units, as a percentage of the award | 150.00% | |||||||
Restricted Stock and Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum number of shares available for issuance under the Windstream 2006 Equity Incentive Plan | 6,800,000 | 6,800,000 | ||||||
Available shares for grant | 2,200,000 | 2,200,000 | ||||||
Granted | 0 | |||||||
Restricted Stock and Restricted Stock Units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award Vesting Period | 2 years | |||||||
Restricted Stock and Restricted Stock Units | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award Vesting Period | 3 years | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award Vesting Period | 3 years | |||||||
Granted | 698,500 | |||||||
Fair value of PSUs granted in period | $ 2.4 | |||||||
Additional Paid-In Capital | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 1.1 | $ (1.6) | $ 2.4 | $ 2.8 | $ 3.1 | $ 4.3 | ||
Additional Paid-In Capital | Restricted Stock and Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 0.7 | $ 2.4 | $ 0.4 | $ 8.7 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans: Restricted Stock and Restricted Stock Unit Activity (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Service-Based Restricted Stock and Restricted Stock Units | |
(Thousands) Underlying Number of Shares [Roll Forward] | |
Beginning balance, Underlying Number of Shares | shares | 522,100 |
Granted | shares | 0 |
Vested | shares | (132,000) |
Forfeited | shares | (16,900) |
Ending balance, Underlying Number of Shares | shares | 373,200 |
Weighted Average Fair Value | |
Beginning Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 23.34 |
Granted | $ / shares | 0 |
Vested | $ / shares | 32.37 |
Forfeited | $ / shares | 35.24 |
Ending Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 19.61 |
Performance-Based Restricted Stock Units (RSUs) | |
(Thousands) Underlying Number of Shares [Roll Forward] | |
Beginning balance, Underlying Number of Shares | shares | 325,400 |
Granted | shares | 698,500 |
Vested | shares | (159,200) |
Forfeited | shares | (731,500) |
Ending balance, Underlying Number of Shares | shares | 133,200 |
Weighted Average Fair Value | |
Beginning Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 28.35 |
Granted | $ / shares | 3.40 |
Vested | $ / shares | 28.84 |
Forfeited | $ / shares | 4.50 |
Ending Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 27.90 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans: Stock Options (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense - Stock options | $ 1.6 | $ 1.6 | ||||||
Weighted average vesting period | 9 months 18 days | |||||||
Stock options outstanding | 900,000 | 900,000 | 1,000,000 | |||||
Stock options granted | 0 | |||||||
Stock options exercised | 0 | |||||||
Share-based compensation expense | $ 1.1 | $ (1.6) | $ 2.4 | $ 2.8 | $ 3.1 | $ 4.3 | ||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average vesting period | 1 year 4 months 24 days | |||||||
Additional Paid-In Capital | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | 1.1 | $ (1.6) | $ 2.4 | $ 2.8 | $ 3.1 | $ 4.3 | ||
Additional Paid-In Capital | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 0.3 | $ 0.9 |
Merger, Integration and Restruc
Merger, Integration and Restructuring Charges: (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)position | Sep. 30, 2018USD ($)position | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 450 | 750 | ||
Restructuring charges | $ 1.6 | $ 6.5 | $ 18.2 | $ 26 |
Merger, Integration and Restructuring Cost, Cost Incurred to Date, Net of Tax | 2.5 | 11.6 | 19 | 42.1 |
Restructuring Integration and Merger Cost [Abstract] | ||||
Information technology conversion costs | 0 | 0.2 | 0.3 | 0.8 |
Costs related to merger with EarthLink (a) | 1.8 | 2 | 5.8 | 13 |
Costs related to merger with Broadview (b) | 0 | 0.5 | 0 | 3.9 |
Legal fees related to Uniti spin-off litigation (see Note 16) | 0 | 5.1 | 0 | 9.9 |
Other | 0 | 1.2 | 1.1 | 2.8 |
Merger and Integration Costs | 1.8 | 9 | 7.2 | 30.4 |
Restructuring charges | 1.6 | 6.5 | 18.2 | 26 |
Total merger, integration and other costs and restructuring charges | 3.4 | 15.5 | 25.4 | 56.4 |
Workforce Reductions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 17.5 | 22.1 | ||
Restructuring Integration and Merger Cost [Abstract] | ||||
Restructuring charges | 17.5 | 22.1 | ||
Employee Severance | EarthLink [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 1 | 1 | 4.3 | 5.8 |
Employee Severance | Broadview [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 1.9 | |||
Contract Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3.9 | |||
Restructuring Integration and Merger Cost [Abstract] | ||||
Restructuring charges | 3.9 | |||
Contract Termination [Member] | EarthLink [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 0.1 | 4.9 | ||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | |||
Restructuring Integration and Merger Cost [Abstract] | ||||
Restructuring charges | 0 | |||
Other Restructuring [Member] | EarthLink [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 0.8 | 0.9 | $ 1.5 | 2.3 |
Other Restructuring [Member] | Broadview [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 0.5 | $ 2 |
Merger, Integration and Other_3
Merger, Integration and Other Costs and Restructuring Charges: Summary of Activities Related to Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning of Period | $ 31.9 | |||
Reclassified to operating lease obligations upon adoption of ASU 2016-02 | (19.3) | |||
Merger, integration and other costs | $ 1.8 | $ 9 | 7.2 | $ 30.4 |
Restructuring charges | 1.6 | 6.5 | 18.2 | 26 |
Merger Integration and Restructuring | 3.4 | $ 15.5 | 25.4 | $ 56.4 |
Cash outlays during the period | (32) | |||
End of Period | 6 | 6 | ||
Merger, Integration and Other Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning of Period | 4 | |||
Reclassified to operating lease obligations upon adoption of ASU 2016-02 | (4) | |||
Cash outlays during the period | (7.2) | |||
End of Period | 0 | 0 | ||
Severance and Benefit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning of Period | 12.6 | |||
Reclassified to operating lease obligations upon adoption of ASU 2016-02 | 0 | |||
Cash outlays during the period | (24.8) | |||
End of Period | 6 | 6 | ||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning of Period | 15.3 | |||
Reclassified to operating lease obligations upon adoption of ASU 2016-02 | (15.3) | |||
Restructuring charges | 0 | |||
Cash outlays during the period | 0 | |||
End of Period | $ 0 | $ 0 |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $ 439 | $ 825.5 |
Goodwill and other intangible assets | 224.7 | 477.7 |
Operating loss and credit carryforward | (558.7) | (576.8) |
Postretirement and other employee benefits | (78.5) | (79.6) |
Unrealized holding loss and interest rate swaps | (1) | |
Unrealized holding gain and interest rate swaps | 7.2 | |
Deferred compensation | (2) | (2.3) |
Bad debt | (21.9) | (15.1) |
Long-term lease obligations | (1,050.9) | (1,170.9) |
Operating lease right-of-use assets | 1,025.7 | 0 |
Deferred debt costs | (40.1) | (19.2) |
Share-based compensation | (5.6) | (6.8) |
Interest expense | (24.3) | 0 |
Other, net | (7.4) | (20.4) |
Deferred tax liability (asset), gross | (101) | (580.7) |
Valuation allowance | 143.5 | 685 |
Less amounts reclassified to liabilities subject to compromise | (42.5) | 0 |
Deferred tax assets | (1,842.2) | (1,954) |
Deferred tax liabilities | 1,884.7 | 2,058.3 |
Deferred income taxes, net | $ 0 | $ 104.3 |
Income Taxes Operating Loss Car
Income Taxes Operating Loss Carryforwards (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 143.5 | $ 685 |
Increase (Decrease) in Deferred Income Taxes | 833.8 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (541.5) | |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 1,810.3 | 1,920.2 |
Tax Credit Carryforward, Amount | 21.8 | |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax Credit Carryforward, Amount | 21.8 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 2,598.2 | 2,456.6 |
Tax Credit Carryforward, Amount | $ 17.7 | $ 17.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income [Line Items] | ||
Pension and postretirement plans | $ 6.8 | $ 7.7 |
Accumulated other comprehensive income | 26.8 | 35.6 |
Total | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Accumulated other comprehensive income | 26.8 | 35.6 |
Designated as Hedging Instrument [Member] | Interest rate swaps | ||
Accumulated Other Comprehensive Income [Line Items] | ||
Designated portion | 0 | 29.7 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps | ||
Accumulated Other Comprehensive Income [Line Items] | ||
De-designated portion | $ 20 | $ (1.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive (Loss) Income (Roll-Forward) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Unrealized Net Gains (Losses) on Interest Rate Swaps | |
Accumulated other comprehensive loss [Roll Forward] | |
Beginning Balance | $ 27.9 |
Other comprehensive income before reclassifications | (2.4) |
Amounts reclassified from other accumulated comprehensive income (a) | (5.5) |
Ending Balance | 20 |
Pension and Postretirement Plans | |
Accumulated other comprehensive loss [Roll Forward] | |
Beginning Balance | 7.7 |
Other comprehensive income before reclassifications | (0.1) |
Amounts reclassified from other accumulated comprehensive income (a) | (0.8) |
Ending Balance | 6.8 |
Total | |
Accumulated other comprehensive loss [Roll Forward] | |
Beginning Balance | 35.6 |
Other comprehensive income before reclassifications | (2.5) |
Amounts reclassified from other accumulated comprehensive income (a) | (6.3) |
Ending Balance | $ 26.8 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive (Loss) Income (Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (income) expense, net | $ 0.2 | $ 3.2 | $ (10) | $ 12.9 |
Income tax benefit | (29.2) | (2.2) | (352.2) | (67.6) |
Net (loss) income | (115.5) | 41.3 | (2,969.9) | (173.8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net (loss) income | (2.6) | (0.4) | (6.3) | (0.9) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of net unrealized (gains) losses on de-designated interest rate swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) income before income taxes | (3.1) | 0.7 | (7.3) | 2.4 |
Income tax benefit | 0.7 | (0.1) | 1.8 | (0.6) |
Net (loss) income | (2.4) | 0.6 | (5.5) | 1.8 |
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 | 0.1 | 0 | 0.2 |
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) | (1.2) | (1) | (3.8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and postretirement plans: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) income before income taxes | (0.3) | (1.1) | (1) | (3.6) |
Income tax benefit | 0.1 | 0.1 | 0.2 | 0.9 |
Net (loss) income | (0.2) | (1) | (0.8) | (2.7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate swaps | Amortization of net unrealized (gains) losses on de-designated interest rate swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest (income) expense | $ (3.1) | $ 0.7 | $ (7.3) | $ 2.4 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net (loss) income attributable to common shares | $ (115.5) | $ 41.3 | $ (2,969.9) | $ (173.8) |
Denominator: | ||||
Weighted average basic and diluted shares outstanding | 42.7 | 42.5 | 42.6 | 40.2 |
Net (loss) income | $ (2.71) | $ 0.97 | $ (69.67) | $ (4.32) |
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 | 0.5 | 0.9 | ||
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 1 |
Segment Information_ Segment Re
Segment Information: Segment Results (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 3 | |||
Description of Effect on Previously Reported Segment Information for Change in Composition of Reportable Segments | The significant changes to our previous segment structure included: (1) shifting certain business customers with operations in ILEC-only markets from the Enterprise segment to the Consumer & Small Business segment, which was renamed Kinetic; (2) shifting governmental and resale customers from Wholesale to Enterprise; (3) shifting wholesale customers in ILEC markets from Wholesale to Kinetic; and (4) allocating certain corporate expenses, primarily property taxes, to the segments. Prior period segment information has been revised to reflect these changes for all periods presented. | |||
Revenues and sales: | $ 1,270.1 | $ 1,420.6 | $ 3,877.2 | $ 4,319.3 |
Costs and Expenses | 1,304.6 | 1,345 | 6,715.9 | 4,086.4 |
Segment (loss) income | (34.5) | 75.6 | (2,838.7) | 232.9 |
Kinetic | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 520.9 | 532.4 | 1,559.2 | 1,614.5 |
Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 659.1 | 750.2 | 2,047.2 | 2,283.8 |
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 90.1 | 96.2 | 270.8 | 290.9 |
Consumer CLEC | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 41.8 | 130.1 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 1,270.1 | 1,420.6 | 3,877.2 | 4,319.3 |
Costs and Expenses | 791.5 | 876.9 | 2,387 | 2,673.3 |
Segment (loss) income | 478.6 | 543.7 | 1,490.2 | 1,646 |
Operating Segments | Kinetic | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 520.9 | 532.4 | 1,559.2 | 1,614.5 |
Costs and Expenses | 234.3 | 224.7 | 660.5 | 666.4 |
Segment (loss) income | 286.6 | 307.7 | 898.7 | 948.1 |
Operating Segments | Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 659.1 | 750.2 | 2,047.2 | 2,283.8 |
Costs and Expenses | 532.9 | 605.2 | 1,649.2 | 1,865 |
Segment (loss) income | 126.2 | 145 | 398 | 418.8 |
Operating Segments | Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 90.1 | 96.2 | 270.8 | 290.9 |
Costs and Expenses | 24.3 | 28 | 77.3 | 82.9 |
Segment (loss) income | 65.8 | 68.2 | 193.5 | 208 |
Operating Segments | Consumer CLEC | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and sales: | 0 | 41.8 | 0 | 130.1 |
Costs and Expenses | 0 | 19 | 0 | 59 |
Segment (loss) income | $ 0 | $ 22.8 | $ 0 | $ 71.1 |
Segment Information_ Capital Ex
Segment Information: Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 221.5 | $ 196.9 | $ 628.9 | $ 603.2 |
Kinetic | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | 128.6 | 101.6 | 332.7 | 259.3 |
Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | 38 | 44 | 116.6 | 134.3 |
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | 6.4 | 10.8 | 17.1 | 25 |
Corporate/shared (a) | ||||
Segment Reporting Information [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 48.5 | $ 40.5 | $ 162.5 | $ 184.6 |
Segment Information_ Reconcilia
Segment Information: Reconciliation of Segment Income to Consolidated Net (Loss) Income (Details) - USD ($) $ in Millions | Aug. 02, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Segment (loss) income | $ (34.5) | $ 75.6 | $ (2,838.7) | $ 232.9 | |||||
Depreciation and amortization | (262.2) | (383.8) | (809.7) | (1,136.3) | |||||
Goodwill impairment | 0 | $ (373.3) | $ (2,339) | 0 | (2,712.3) | 0 | |||
Merger, integration and other costs | (1.8) | (9) | (7.2) | (30.4) | |||||
Restructuring Charges | (1.6) | (6.5) | (18.2) | (26) | |||||
Straight-line expense under contractual arrangement with Uniti | 590.3 | ||||||||
Other unassigned operating expenses | (1,304.6) | (1,345) | (6,715.9) | (4,086.4) | |||||
Other income (expense), net | 0.2 | 3.2 | (10) | 12.9 | |||||
Reorganization items, net | (29.2) | 0 | (219.5) | 0 | |||||
Net gain on early extinguishment of debt | $ 190.3 | 0 | 190.3 | 0 | 190.3 | ||||
Interest expense | (81.2) | (230) | (253.9) | (677.5) | |||||
Income tax benefit | (29.2) | (2.2) | (352.2) | (67.6) | |||||
Net (loss) income | (115.5) | $ (544.1) | $ (2,310.3) | 41.3 | $ (93.7) | $ (121.4) | (2,969.9) | (173.8) | |
Reserve for USAC funding denial | 19.7 | 19.7 | |||||||
Minimum Purchase Commitment Penalty | 22.4 | 81.3 | |||||||
Business Transformation Expenses | 2.9 | 22.9 | |||||||
Operating Segments | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Segment (loss) income | 478.6 | 543.7 | 1,490.2 | 1,646 | |||||
Other unassigned operating expenses | (791.5) | (876.9) | (2,387) | (2,673.3) | |||||
Corporate/shared (a) | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Straight-line expense under contractual arrangement with Uniti | (168.8) | 0 | (506.5) | 0 | |||||
Other unassigned operating expenses | (78.7) | (68.8) | (275) | (220.4) | |||||
Other income (expense), net | $ 0.2 | $ 3.2 | $ (10) | $ 12.9 |
Commitments and Contingencies_2
Commitments and Contingencies: Other Matters (Details) | Feb. 15, 2019USD ($) | Feb. 28, 2017lawsuit | Dec. 31, 2018lawsuit | Jun. 30, 2019USD ($) | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 310,459,959.10 | ||||
Loss Contingency, Number Of Shareholders Filing Class Action Complaints | lawsuit | 2 | 2 | |||
Loss Contingency, New Claims Filed, Number | lawsuit | 4 | 2 | |||
Loss Contingency Accrual | $ 16,600,000 | ||||
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% |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Mar. 02, 2020 | Sep. 30, 2019 |
DIP Facilities [Member] | Senior Secured Superpriority Debtor-In-Possession Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from Lines of Credit | $ 400,000,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Debtor Reorganization Items, Facility Maximum Amount | $ 3,250,000,000 | |
Reorganization Items, Equity Rights Offering, Amount | $ 750,000,000 | |
Reorganization Items, Backstop Premium, Percentage | 8.00% | |
Subsequent Event [Member] | Uniti [Member] | ||
Subsequent Event [Line Items] | ||
Bankruptcy Settlement, Maximum Amount To Fund Capital Improvements | $ 1,750,000,000 | |
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 400,000,000 | |
Bankruptcy Settlement, Period To Pay Amounts Funded For Capital Improvements | 5 years | |
Bankruptcy Settlement, Annual Interest Rate | 9.00% | |
Subsequent Event [Member] | Minimum | Uniti [Member] | ||
Subsequent Event [Line Items] | ||
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 432,000,000 | |
Bankruptcy Settlement, Amount Funded From Proceeds Of Common Stock | 244,500,000 | |
Subsequent Event [Member] | Maximum | Uniti [Member] | ||
Subsequent Event [Line Items] | ||
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 490,000,000 |
Uncategorized Items - a20190930
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,013,000,000 |
Accounting Standards Update 2016-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-02 [Member] | AOCI Attributable to Parent [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-02 [Member] | Common Stock Including Additional Paid in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-02 [Member] | Common Stock Including Additional Paid in Capital [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,013,000,000 |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,013,000,000 |
Accounting Standards Update 2017-12 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2017-12 [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,700,000 |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,700,000 |
Accounting Standards Update 2017-12 [Member] | Common Stock Including Additional Paid in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2017-12 [Member] | Common Stock Including Additional Paid in Capital [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2017-12 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,700,000) |
Accounting Standards Update 2017-12 [Member] | Retained Earnings [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,700,000) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 35,300,000 |
Accounting Standards Update 2014-09 [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 35,300,000 |
Accounting Standards Update 2014-09 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2014-09 [Member] | AOCI Attributable to Parent [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2014-09 [Member] | Common Stock Including Additional Paid in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2014-09 [Member] | Common Stock Including Additional Paid in Capital [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 35,300,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 35,300,000 |