Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | May 14, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 | ||
Title of 12(g) Security | Common Stock ($0.0001 par per share) | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,889,552 | ||
Entity Common Stock, Shares Outstanding | 43,018,736 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Document The Exhibit Index is located on pages 71 to 76. | ||
Amendment Flag | false | ||
No Trading Symbol Flag | true | ||
Entity Central Index Key | 0001282266 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001585644 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
WINDSTREAM HOLDINGS, INC. CONSO
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | Nov. 01, 2018 | Aug. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues and sales: | ||||||||||||||
Revenues and sales: | $ 1,238,200,000 | $ 1,270,100,000 | $ 1,286,500,000 | $ 1,320,600,000 | $ 1,393,800,000 | $ 1,420,600,000 | $ 1,444,400,000 | $ 1,454,300,000 | $ 5,115,400,000 | $ 5,713,100,000 | $ 5,852,900,000 | |||
Costs and expenses: | ||||||||||||||
Selling, general and administrative | 756,700,000 | 889,000,000 | 896,100,000 | |||||||||||
Depreciation and amortization | 1,068,200,000 | 1,526,700,000 | 1,470,000,000 | |||||||||||
Goodwill impairment | $ 0 | 373,300,000 | 2,339,000,000 | 2,712,300,000 | 0 | 1,840,800,000 | ||||||||
Merger, integration and other costs | 8,300,000 | 31,900,000 | 137,400,000 | |||||||||||
Restructuring charges | 28,500,000 | 45,000,000 | 43,000,000 | |||||||||||
Total costs and expenses | 7,992,900,000 | 5,416,500,000 | 7,443,500,000 | |||||||||||
Operating (loss) income | (38,800,000) | (34,500,000) | (422,900,000) | (2,381,300,000) | 63,700,000 | 75,600,000 | 88,300,000 | 69,000,000 | (2,877,500,000) | 296,600,000 | (1,590,600,000) | |||
Other expense, net | (7,800,000) | (4,900,000) | (2,300,000) | |||||||||||
Gain on sale of Consumer CLEC business | 0 | 145,400,000 | 0 | |||||||||||
Net gain (loss) on early extinguishment of debt | $ 190,300,000 | 190,300,000 | 0 | 190,300,000 | (56,400,000) | |||||||||
Reorganization items, net | (41,100,000) | (29,200,000) | (85,400,000) | (104,900,000) | (260,600,000) | 0 | 0 | |||||||
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | $ (13,800,000) | (331,900,000) | (901,300,000) | (875,400,000) | ||||||||||
Loss before income taxes | (3,477,800,000) | (273,900,000) | (2,524,700,000) | |||||||||||
Income tax benefit (expense) | 320,000,000 | (449,100,000) | 408,100,000 | |||||||||||
Net loss | $ (187,900,000) | $ (115,500,000) | $ (544,100,000) | $ (2,310,300,000) | $ (549,200,000) | $ 41,300,000 | $ (93,700,000) | $ (121,400,000) | $ (3,157,800,000) | $ (723,000,000) | $ (2,116,600,000) | |||
Basic and diluted loss per share: | ||||||||||||||
Net loss (in dollars per share) | $ (4.41) | $ (2.71) | $ (12.76) | $ (54.26) | $ (12.92) | $ 0.97 | $ (2.30) | $ (3.25) | $ (74.06) | $ (17.72) | $ (62.66) | |||
Service | ||||||||||||||
Revenues and sales: | ||||||||||||||
Revenues and sales: | $ 5,023,600,000 | $ 5,637,200,000 | $ 5,759,700,000 | |||||||||||
Costs and expenses: | ||||||||||||||
Cost of services and products sold | 3,341,300,000 | 2,854,800,000 | 2,962,700,000 | |||||||||||
Product and fiber sales | ||||||||||||||
Revenues and sales: | ||||||||||||||
Revenues and sales: | 91,800,000 | 75,900,000 | 93,200,000 | |||||||||||
Costs and expenses: | ||||||||||||||
Cost of services and products sold | $ 77,600,000 | $ 69,100,000 | $ 93,500,000 |
WINDSTREAM HOLDINGS, INC. CON_2
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Statement [Abstract] | |
Contractual interest | $ 493.2 |
WINDSTREAM HOLDINGS, INC. CON_3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net loss | $ (187.9) | $ (115.5) | $ (544.1) | $ (2,310.3) | $ (549.2) | $ 41.3 | $ (93.7) | $ (121.4) | $ (3,157.8) | $ (723) | $ (2,116.6) |
Interest rate swaps: | |||||||||||
Unrealized (losses) gains on designated interest rate swaps | (3.2) | 3.7 | 11.4 | ||||||||
Amortization of net unrealized (gains) losses on de-designated interest rate swaps | (10.6) | 3 | 5.3 | ||||||||
Income tax benefit (expense) | 3.5 | (1.6) | (6.4) | ||||||||
Change in interest rate swaps | (10.3) | 5.1 | 10.3 | ||||||||
Pension and postretirement plans: | |||||||||||
Prior service credit arising during the period | 0.3 | 2.7 | 9.1 | ||||||||
Change in net actuarial (loss) gain for employee benefit plans | (2.7) | 7.2 | (1.3) | ||||||||
Plan curtailments and settlements | 0.1 | 0 | 0 | ||||||||
Amounts included in net periodic benefit cost: | |||||||||||
Amortization of net actuarial loss | 0 | 0.2 | 0.1 | ||||||||
Amortization of prior service credits | (1.3) | (5.1) | (0.7) | ||||||||
Income tax benefit (expense) | 0.9 | (1.3) | (2) | ||||||||
Change in pension and postretirement plans | (2.7) | 3.7 | 5.2 | ||||||||
Other comprehensive (loss) income | (13) | 8.8 | 15.5 | ||||||||
Comprehensive income (loss) | $ (3,170.8) | $ (714.2) | $ (2,101.1) |
WINDSTREAM HOLDINGS, INC. CON_4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | |||||
Cash and cash equivalents | $ 191.8 | $ 355.7 | |||
Restricted cash | 7.8 | 5.3 | |||
Accounts receivable (less allowance for doubtful accounts of $24.8 and $29.7, respectively) | 574.7 | 653.1 | |||
Inventories | 64.7 | 82.4 | |||
Prepaid expenses and other | 197.7 | $ 159 | 159.7 | ||
Total current assets | 1,036.7 | 1,256.2 | |||
Goodwill | 61.4 | 2,773.7 | $ 2,842.4 | ||
Other intangibles, net | 1,068.7 | 1,213.1 | |||
Net property, plant and equipment | 3,620.8 | 3,614.2 | 4,920.9 | ||
Operating lease right-of-use assets | 4,018 | 4,239.1 | 0 | ||
Other assets | 82.9 | 88.1 | 94 | ||
Total Assets | 9,888.5 | 10,257.9 | |||
Current Liabilities: | |||||
Current portion of long-term debt | 500 | 5,728.1 | |||
Current portion of long-term lease obligations | 0 | 0 | 4,570.3 | ||
Accounts payable | 279.2 | 503.6 | |||
Advance payments | 151.1 | 180.6 | |||
Accrued taxes | 65.6 | 87.4 | |||
Other current liabilities | 223.3 | 372.3 | 387.7 | ||
Total current liabilities | 1,219.2 | 11,457.7 | |||
Deferred income taxes | 0 | 396.6 | 104.3 | ||
Other liabilities | 23.6 | 556.4 | 615.2 | ||
Liabilities subject to compromise | 10,720.1 | 0 | |||
Total liabilities | 11,962.9 | 12,177.2 | |||
Commitments and Contingencies (See Note 17) | |||||
Shareholders’ Deficit: | |||||
Common stock, $0.0001 par value, 75.0 shares authorized, 42.9 and 36.5 shares issued and outstanding, respectively | 0 | 0 | |||
Additional paid-in capital | 1,253.1 | 1,250.4 | |||
Accumulated other comprehensive income | 22.6 | 35.6 | 21.4 | ||
Accumulated deficit | (3,350.1) | $ (192.3) | (3,205.3) | ||
Total shareholders’ deficit | (2,074.4) | (1,919.3) | $ (1,298.9) | $ 170 | |
Total Liabilities and Shareholders’ Deficit | $ 9,888.5 | $ 10,257.9 |
WINDSTREAM HOLDINGS, INC. CON_5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 48.2 | $ 24.8 |
Shareholders’ Deficit: | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 43,000,000 | 42,900,000 |
Common stock, shares outstanding | 43,000,000 | 42,900,000 |
WINDSTREAM HOLDINGS, INC. CON_6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Provided from Operating Activities: | |||
Net loss | $ (3,157,800,000) | $ (723,000,000) | $ (2,116,600,000) |
Adjustments to reconcile net loss to net cash provided from operations: | |||
Depreciation and amortization | 1,068,200,000 | 1,526,700,000 | 1,470,000,000 |
Goodwill impairment | 2,712,300,000 | 0 | 1,840,800,000 |
Provision for doubtful accounts | 65,200,000 | 37,700,000 | 45,800,000 |
Share-based compensation expense | 2,700,000 | 11,300,000 | 55,400,000 |
Non-cash reorganization items, net | 48,700,000 | 0 | 0 |
Deferred income taxes | (319,600,000) | 441,200,000 | (412,700,000) |
Gain on sale of Consumer CLEC business | 0 | (145,400,000) | 0 |
Net (gain) loss on early extinguishment of debt | 0 | (190,300,000) | 56,400,000 |
DIP Facility issuance costs expensed | 24,400,000 | 0 | 0 |
Other, net | 8,700,000 | 29,000,000 | 38,700,000 |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (33,100,000) | (47,000,000) | 17,700,000 |
Prepaid expenses and other | (55,100,000) | 46,800,000 | 2,100,000 |
Accounts payable | 172,800,000 | 5,200,000 | 43,300,000 |
Accrued taxes | 3,400,000 | (9,400,000) | (200,000) |
Accrued interest | (11,600,000) | (8,600,000) | (16,300,000) |
Other current liabilities | 48,600,000 | 35,100,000 | 4,800,000 |
Other liabilities | (42,800,000) | (2,200,000) | (25,700,000) |
Other, net | 1,200,000 | (6,000,000) | 28,900,000 |
Net cash provided from operating activities | 533,800,000 | 1,013,100,000 | 974,600,000 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (878,500,000) | (820,200,000) | (908,600,000) |
Proceeds from sale of Consumer CLEC business | 0 | 320,900,000 | 0 |
Payments to Acquire Intangible Assets | (26,600,000) | 0 | 0 |
Other, net | 1,700,000 | (8,000,000) | (16,300,000) |
Net cash used in investing activities | (903,400,000) | (554,200,000) | (983,200,000) |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | (64,400,000) |
Proceeds from issuance of stock | 0 | 12,200,000 | 9,600,000 |
Repayments of debt and swaps | (372,400,000) | (747,200,000) | (2,301,800,000) |
Proceeds of debt issuance | 655,000,000 | 816,000,000 | 2,614,600,000 |
Debt issuance costs | (24,400,000) | (23,500,000) | (27,100,000) |
Proceeds from fiber transaction | 0 | 45,800,000 | 0 |
Stock repurchases | 0 | 0 | (19,000,000) |
Payments under long-term lease obligations | 0 | (188,800,000) | (168,700,000) |
Payments under finance and capital lease obligations | (49,300,000) | (53,600,000) | (39,000,000) |
Other, net | (700,000) | (2,200,000) | (11,300,000) |
Net cash provided from (used in) financing activities | 208,200,000 | (141,300,000) | (7,100,000) |
(Decrease) increase in cash, cash equivalents and restricted cash | (161,400,000) | 317,600,000 | (15,700,000) |
Cash, Cash Equivalents and Restricted Cash: | |||
Beginning of period | 361,000,000 | 43,400,000 | 59,100,000 |
End of period | 199,600,000 | 361,000,000 | 43,400,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of interest capitalized | 349,900,000 | 886,100,000 | 855,300,000 |
Income taxes (refunded) paid, net | (8,500,000) | (15,100,000) | 1,700,000 |
Reorganization items paid, net | 146,100,000 | 0 | 0 |
Broadview measurement period | |||
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (34,500,000) | ||
Acquisition of Broadview, net of cash acquired | 0 | 0 | 63,300,000 |
Acquisitions of MASS and ATC, net of cash acquired | 0 | 0 | 63,300,000 |
EarthLink | |||
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (37,600,000) | ||
Cash acquired from EarthLink | 0 | 0 | 5,000,000 |
MASS and ATC | |||
Cash Flows from Investing Activities: | |||
Acquisition of Broadview, net of cash acquired | 0 | 46,900,000 | 0 |
Acquisitions of MASS and ATC, net of cash acquired | $ 0 | $ 46,900,000 | $ 0 |
WINDSTREAM HOLDINGS, INC. CON_7
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2016 | $ 170 | $ 559.7 | $ 5.9 | $ (395.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (2,116.6) | (2,116.6) | ||
Other comprehensive income, net of tax: | ||||
Change in pension and postretirement plans | 5.2 | 5.2 | ||
Amortization of net unrealized gains on de-designated interest rate swaps | 3.3 | 3.3 | ||
Changes in designated interest rate swaps | 7 | 7 | ||
Comprehensive income (loss) | (2,101.1) | 0 | 15.5 | (2,116.6) |
Share-based compensation | 35.8 | 35.8 | ||
Stock issued for pension contribution | 9.6 | 9.6 | ||
Stock issued to employee savings plan (See Note 11) | 22.7 | 22.7 | ||
Stock issued in merger with EarthLink | 642.6 | 642.6 | ||
Stock repurchases | (19) | (19) | ||
Taxes withheld on vested restricted stock and other | (10.7) | (10.7) | ||
Dividends declared to stockholders | (48.8) | (48.8) | ||
Ending 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 | (723) | (723) | ||
Other comprehensive income, net of tax: | ||||
Change in pension and postretirement plans | 3.7 | 3.7 | ||
Amortization of net unrealized gains on de-designated interest rate swaps | 2.3 | 2.3 | ||
Changes in designated interest rate swaps | 2.8 | 2.8 | ||
Comprehensive income (loss) | (714.2) | 0 | 8.8 | (723) |
Share-based compensation | 13.3 | 13.3 | ||
Stock issued for pension contribution | 5.8 | 5.8 | ||
Stock issued to employee savings plan (See Note 11) | 28.3 | 28.3 | ||
Stock Issued Under Equity Distribution Agreement | 12.2 | 12.2 | ||
Taxes withheld on vested restricted stock and other | (1.1) | (1.1) | ||
Ending 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 | (3,157.8) | (3,157.8) | ||
Net loss | Adoption of ASU 2016-02 (See Note 2) | 52.3 | |||
Other comprehensive income, net of tax: | ||||
Change in pension and postretirement plans | (2.7) | (2.7) | ||
Amortization of net unrealized gains on de-designated interest rate swaps | (7.9) | (7.9) | ||
Changes in designated interest rate swaps | (2.4) | (2.4) | ||
Comprehensive income (loss) | (3,170.8) | 0 | (13) | (3,157.8) |
Share-based compensation | 2.9 | 2.9 | ||
Taxes withheld on vested restricted stock and other | (0.2) | (0.2) | ||
Ending balance at Dec. 31, 2019 | $ (2,074.4) | $ 1,253.1 | $ 22.6 | $ (3,350.1) |
WINDSTREAM HOLDINGS, INC. CON_8
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends, per share declared to stockholders (usd per share) | $ 1.5 |
WINDSTREAM SERVICES, LLC CONSOL
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues and sales: | |||
Total revenues and sales | $ 5,115,400,000 | $ 5,713,100,000 | $ 5,852,900,000 |
Costs and expenses: | |||
Selling, general and administrative | 756,700,000 | 889,000,000 | 896,100,000 |
Depreciation and amortization | 1,068,200,000 | ||
Goodwill impairment | 2,712,300,000 | 0 | 1,840,800,000 |
Merger, integration and other costs | 8,300,000 | 31,900,000 | 137,400,000 |
Restructuring charges | 28,500,000 | 45,000,000 | 43,000,000 |
Total costs and expenses | 7,992,900,000 | 5,416,500,000 | 7,443,500,000 |
Operating (loss) income | (2,877,500,000) | 296,600,000 | (1,590,600,000) |
Other expense, net | (7,800,000) | (4,900,000) | (2,300,000) |
Gain on sale of Consumer CLEC business | 0 | 145,400,000 | 0 |
Net gain (loss) on early extinguishment of debt | 0 | 190,300,000 | (56,400,000) |
Reorganization items, net | (260,600,000) | 0 | 0 |
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | (331,900,000) | (901,300,000) | (875,400,000) |
Loss before income taxes | (3,477,800,000) | (273,900,000) | (2,524,700,000) |
Income tax benefit (expense) | 320,000,000 | (449,100,000) | 408,100,000 |
Net loss | (3,157,800,000) | (723,000,000) | (2,116,600,000) |
Windstream Services, LLC | |||
Revenues and sales: | |||
Total revenues and sales | 5,115,400,000 | 5,713,100,000 | 5,852,900,000 |
Costs and expenses: | |||
Selling, general and administrative | 754,600,000 | 887,200,000 | 894,100,000 |
Depreciation and amortization | 1,068,200,000 | 1,526,700,000 | 1,470,000,000 |
Goodwill impairment | 2,712,300,000 | 0 | 1,840,800,000 |
Merger, integration and other costs | 8,300,000 | 31,900,000 | 137,400,000 |
Restructuring charges | 28,500,000 | 45,000,000 | 43,000,000 |
Total costs and expenses | 7,990,800,000 | 5,414,700,000 | 7,441,500,000 |
Operating (loss) income | (2,875,400,000) | 298,400,000 | (1,588,600,000) |
Other expense, net | (7,800,000) | (4,900,000) | (2,300,000) |
Gain on sale of Consumer CLEC business | 0 | 145,400,000 | 0 |
Net gain (loss) on early extinguishment of debt | 0 | 190,300,000 | (56,400,000) |
Reorganization items, net | (260,600,000) | 0 | 0 |
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | (331,900,000) | (901,300,000) | (875,400,000) |
Loss before income taxes | (3,475,700,000) | (272,100,000) | (2,522,700,000) |
Income tax benefit (expense) | 319,500,000 | (449,500,000) | 407,300,000 |
Net loss | (3,156,200,000) | (721,600,000) | (2,115,400,000) |
Service | |||
Revenues and sales: | |||
Total revenues and sales | 5,023,600,000 | 5,637,200,000 | 5,759,700,000 |
Costs and expenses: | |||
Cost of services and products sold | 3,341,300,000 | 2,854,800,000 | 2,962,700,000 |
Service | Windstream Services, LLC | |||
Revenues and sales: | |||
Total revenues and sales | 5,023,600,000 | 5,637,200,000 | 5,759,700,000 |
Costs and expenses: | |||
Cost of services and products sold | 3,341,300,000 | 2,854,800,000 | 2,962,700,000 |
Product and fiber sales | |||
Revenues and sales: | |||
Total revenues and sales | 91,800,000 | 75,900,000 | 93,200,000 |
Costs and expenses: | |||
Cost of services and products sold | 77,600,000 | 69,100,000 | 93,500,000 |
Product and fiber sales | Windstream Services, LLC | |||
Revenues and sales: | |||
Total revenues and sales | 91,800,000 | 75,900,000 | 93,200,000 |
Costs and expenses: | |||
Cost of services and products sold | $ 77,600,000 | $ 69,100,000 | $ 93,500,000 |
WINDSTREAM SERVICES, LLC CONS_2
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF OPERATION (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Statement [Abstract] | |
Contractual interest | $ 493.2 |
WINDSTREAM SERVICES, LLC CONS_3
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net loss | $ (3,157.8) | $ (723) | $ (2,116.6) |
Interest rate swaps: | |||
Unrealized (losses) gains on designated interest rate swaps | (3.2) | 3.7 | 11.4 |
Amortization of net unrealized (gains) losses on de-designated interest rate swaps | (10.6) | 3 | 5.3 |
Income tax benefit (expense) | 3.5 | (1.6) | (6.4) |
Change in interest rate swaps | (10.3) | 5.1 | 10.3 |
Pension and postretirement plans: | |||
Prior service credit arising during the period | 0.3 | 2.7 | 9.1 |
Change in net actuarial (loss) gain for employee benefit plans | (2.7) | 7.2 | (1.3) |
Plan curtailments and settlements | 0.1 | 0 | 0 |
Amounts included in net periodic benefit cost: | |||
Amortization of net actuarial loss | 0 | 0.2 | 0.1 |
Amortization of prior service credits | (1.3) | (5.1) | (0.7) |
Income tax benefit (expense) | 0.9 | (1.3) | (2) |
Change in pension and postretirement plans | (2.7) | 3.7 | 5.2 |
Other comprehensive (loss) income | (13) | 8.8 | 15.5 |
Comprehensive income (loss) | (3,170.8) | (714.2) | (2,101.1) |
Windstream Services, LLC | |||
Net loss | (3,156.2) | (721.6) | (2,115.4) |
Interest rate swaps: | |||
Unrealized (losses) gains on designated interest rate swaps | (3.2) | 3.7 | 11.4 |
Amortization of net unrealized (gains) losses on de-designated interest rate swaps | (10.6) | 3 | 5.3 |
Income tax benefit (expense) | 3.5 | (1.6) | (6.4) |
Change in interest rate swaps | (10.3) | 5.1 | 10.3 |
Pension and postretirement plans: | |||
Prior service credit arising during the period | 0.3 | 2.7 | 9.1 |
Change in net actuarial (loss) gain for employee benefit plans | (2.7) | 7.2 | (1.3) |
Plan curtailments and settlements | 0.1 | 0 | 0 |
Amounts included in net periodic benefit cost: | |||
Amortization of net actuarial loss | 0 | 0.2 | 0.1 |
Amortization of prior service credits | (1.3) | (5.1) | (0.7) |
Income tax benefit (expense) | 0.9 | (1.3) | (2) |
Change in pension and postretirement plans | (2.7) | 3.7 | 5.2 |
Other comprehensive (loss) income | (13) | 8.8 | 15.5 |
Comprehensive income (loss) | $ (3,169.2) | $ (712.8) | $ (2,099.9) |
WINDSTREAM SERVICES, LLC CONS_4
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 191.8 | $ 355.7 |
Restricted cash | 7.8 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $24.8 and $29.7, respectively) | 574.7 | 653.1 |
Inventories | 64.7 | 82.4 |
Prepaid expenses and other | 197.7 | 159.7 |
Total current assets | 1,036.7 | 1,256.2 |
Goodwill | 61.4 | 2,773.7 |
Other intangibles, net | 1,068.7 | 1,213.1 |
Net property, plant and equipment | 3,620.8 | 4,920.9 |
Operating lease right-of-use assets | 4,018 | 0 |
Other assets | 82.9 | 94 |
Total Assets | 9,888.5 | 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 | 279.2 | 503.6 |
Advance payments | 151.1 | 180.6 |
Accrued taxes | 65.6 | 87.4 |
Other current liabilities | 223.3 | 387.7 |
Total current liabilities | 1,219.2 | 11,457.7 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 23.6 | 615.2 |
Liabilities subject to compromise | 10,720.1 | 0 |
Total liabilities | 11,962.9 | 12,177.2 |
Commitments and Contingencies (See Note 17) | ||
Member Deficit: | ||
Additional paid-in capital | 1,253.1 | 1,250.4 |
Accumulated other comprehensive income | 22.6 | 35.6 |
Accumulated deficit | (3,350.1) | (3,205.3) |
Total shareholders’ deficit | (2,074.4) | (1,919.3) |
Total Liabilities and Shareholders’ Deficit | 9,888.5 | 10,257.9 |
Windstream Services, LLC | ||
Current Assets: | ||
Cash and cash equivalents | 191.8 | 355.7 |
Restricted cash | 7.8 | 5.3 |
Accounts receivable (less allowance for doubtful accounts of $24.8 and $29.7, respectively) | 574.7 | 653.1 |
Inventories | 64.7 | 82.4 |
Prepaid expenses and other | 197.7 | 159.7 |
Total current assets | 1,036.7 | 1,256.2 |
Goodwill | 61.4 | 2,773.7 |
Other intangibles, net | 1,068.7 | 1,213.1 |
Net property, plant and equipment | 3,620.8 | 4,920.9 |
Operating lease right-of-use assets | 4,018 | 0 |
Other assets | 82.9 | 94 |
Total Assets | 9,888.5 | 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 | 279.2 | 503.6 |
Advance payments | 151.1 | 180.6 |
Accrued taxes | 65.6 | 87.4 |
Other current liabilities | 223.3 | 387.7 |
Total current liabilities | 1,219.2 | 11,457.7 |
Deferred income taxes | 0 | 104.3 |
Other liabilities | 23.6 | 615.2 |
Liabilities subject to compromise | 10,720.1 | 0 |
Total liabilities | 11,962.9 | 12,177.2 |
Commitments and Contingencies (See Note 17) | ||
Member Deficit: | ||
Additional paid-in capital | 1,245.3 | 1,244.2 |
Accumulated other comprehensive income | 22.6 | 35.6 |
Accumulated deficit | (3,342.3) | (3,199.1) |
Total shareholders’ deficit | (2,074.4) | (1,919.3) |
Total Liabilities and Shareholders’ Deficit | $ 9,888.5 | $ 10,257.9 |
WINDSTREAM SERVICES, LLC CONS_5
WINDSTREAM SERVICES, LLC CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 48.2 | $ 24.8 |
Windstream Services, LLC | ||
Accounts receivable, allowance for doubtful accounts | $ 48.2 | $ 24.8 |
WINDSTREAM SERVICES, LLC CONS_6
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Provided from Operating Activities: | |||
Net loss | $ (3,157,800,000) | $ (723,000,000) | $ (2,116,600,000) |
Adjustments to reconcile net loss to net cash provided from operations: | |||
Depreciation and amortization | 1,068,200,000 | 1,526,700,000 | 1,470,000,000 |
Goodwill impairment | 2,712,300,000 | 0 | 1,840,800,000 |
Provision for doubtful accounts | 65,200,000 | 37,700,000 | 45,800,000 |
Share-based compensation expense | 2,700,000 | 11,300,000 | 55,400,000 |
Non-cash reorganization items, net | 48,700,000 | 0 | 0 |
Deferred income taxes | (319,600,000) | 441,200,000 | (412,700,000) |
Gain on sale of Consumer CLEC business | 0 | (145,400,000) | 0 |
Net loss on early extinguishment of debt | 0 | (190,300,000) | 56,400,000 |
DIP Facility issuance costs expensed | 24,400,000 | 0 | 0 |
Other, net | 8,700,000 | 29,000,000 | 38,700,000 |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (33,100,000) | (47,000,000) | 17,700,000 |
Prepaid expenses and other | (55,100,000) | 46,800,000 | 2,100,000 |
Accounts payable | 172,800,000 | 5,200,000 | 43,300,000 |
Accrued interest | (11,600,000) | (8,600,000) | (16,300,000) |
Accrued taxes | 3,400,000 | (9,400,000) | (200,000) |
Other current liabilities | 48,600,000 | 35,100,000 | 4,800,000 |
Other liabilities | (42,800,000) | (2,200,000) | (25,700,000) |
Other, net | 1,200,000 | (6,000,000) | 28,900,000 |
Net cash provided from operating activities | 533,800,000 | 1,013,100,000 | 974,600,000 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (878,500,000) | (820,200,000) | (908,600,000) |
Proceeds from sale of Consumer CLEC business | 0 | 320,900,000 | 0 |
Payments to Acquire Intangible Assets | (26,600,000) | 0 | 0 |
Other, net | 1,700,000 | (8,000,000) | (16,300,000) |
Net cash used in investing activities | (903,400,000) | (554,200,000) | (983,200,000) |
Cash Flows from Financing Activities: | |||
Repayments of debt and swaps | (372,400,000) | (747,200,000) | (2,301,800,000) |
Proceeds of debt issuance | 655,000,000 | 816,000,000 | 2,614,600,000 |
Debt issuance costs | (24,400,000) | (23,500,000) | (27,100,000) |
Proceeds from fiber transaction | 0 | 45,800,000 | 0 |
Payments under long-term lease obligations | 0 | (188,800,000) | (168,700,000) |
Payments under finance and capital lease obligations | (49,300,000) | (53,600,000) | (39,000,000) |
Other, net | (700,000) | (2,200,000) | (11,300,000) |
Net cash provided from (used in) financing activities | 208,200,000 | (141,300,000) | (7,100,000) |
(Decrease) increase in cash, cash equivalents and restricted cash | (161,400,000) | 317,600,000 | (15,700,000) |
Cash, Cash Equivalents and Restricted Cash: | |||
Beginning of period | 361,000,000 | 43,400,000 | 59,100,000 |
End of period | 199,600,000 | 361,000,000 | 43,400,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of interest capitalized | 349,900,000 | 886,100,000 | 855,300,000 |
Income taxes (refunded) paid, net | (8,500,000) | (15,100,000) | 1,700,000 |
Reorganization items paid, net | 146,100,000 | 0 | 0 |
Windstream Services, LLC | |||
Cash Provided from Operating Activities: | |||
Net loss | (3,156,200,000) | (721,600,000) | (2,115,400,000) |
Adjustments to reconcile net loss to net cash provided from operations: | |||
Depreciation and amortization | 1,068,200,000 | 1,526,700,000 | 1,470,000,000 |
Goodwill impairment | 2,712,300,000 | 0 | 1,840,800,000 |
Provision for doubtful accounts | 65,200,000 | 37,700,000 | 45,800,000 |
Share-based compensation expense | 2,700,000 | 11,300,000 | 55,400,000 |
Non-cash reorganization items, net | 48,700,000 | 0 | 0 |
Deferred income taxes | (319,600,000) | 441,200,000 | (412,700,000) |
Gain on sale of Consumer CLEC business | 0 | (145,400,000) | 0 |
Net loss on early extinguishment of debt | 0 | (190,300,000) | 56,400,000 |
DIP Facility issuance costs expensed | 24,400,000 | 0 | 0 |
Other, net | 8,700,000 | 29,000,000 | 38,700,000 |
Changes in operating assets and liabilities, net | |||
Accounts receivable | (33,100,000) | (47,000,000) | 17,700,000 |
Prepaid expenses and other | (55,100,000) | 46,800,000 | 2,100,000 |
Accounts payable | 172,800,000 | 5,200,000 | 43,300,000 |
Accrued interest | (11,600,000) | (8,600,000) | (16,300,000) |
Accrued taxes | 3,400,000 | (9,400,000) | (200,000) |
Other current liabilities | 48,600,000 | 35,300,000 | 3,900,000 |
Other liabilities | (42,800,000) | (2,200,000) | (25,700,000) |
Other, net | 1,200,000 | (6,000,000) | 28,900,000 |
Net cash provided from operating activities | 535,400,000 | 1,014,700,000 | 974,900,000 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (878,500,000) | (820,200,000) | (908,600,000) |
Proceeds from sale of Consumer CLEC business | 0 | 320,900,000 | 0 |
Payments to Acquire Intangible Assets | (26,600,000) | 0 | 0 |
Other, net | 1,700,000 | (8,000,000) | (16,300,000) |
Net cash used in investing activities | (903,400,000) | (554,200,000) | (983,200,000) |
Cash Flows from Financing Activities: | |||
Distributions to Windstream Holdings, Inc. | (1,600,000) | (1,600,000) | (83,700,000) |
Contribution from Windstream Holdings, Inc. | 0 | 12,200,000 | 9,600,000 |
Repayments of debt and swaps | (372,400,000) | (747,200,000) | (2,301,800,000) |
Proceeds of debt issuance | 655,000,000 | 816,000,000 | 2,614,600,000 |
Debt issuance costs | (24,400,000) | (23,500,000) | (27,100,000) |
Proceeds from fiber transaction | 0 | 45,800,000 | 0 |
Payments under long-term lease obligations | 0 | (188,800,000) | (168,700,000) |
Payments under finance and capital lease obligations | (49,300,000) | (53,600,000) | (39,000,000) |
Other, net | (700,000) | (2,200,000) | (11,300,000) |
Net cash provided from (used in) financing activities | 206,600,000 | (142,900,000) | (7,400,000) |
(Decrease) increase in cash, cash equivalents and restricted cash | (161,400,000) | 317,600,000 | (15,700,000) |
Cash, Cash Equivalents and Restricted Cash: | |||
Beginning of period | 361,000,000 | 43,400,000 | 59,100,000 |
End of period | 199,600,000 | 361,000,000 | 43,400,000 |
Supplemental Cash Flow Disclosures: | |||
Interest paid, net of interest capitalized | 349,900,000 | 886,100,000 | 855,300,000 |
Income taxes (refunded) paid, net | (8,500,000) | (15,100,000) | 1,700,000 |
Reorganization items paid, net | 146,100,000 | 0 | 0 |
Broadview measurement period | |||
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (34,500,000) | ||
Acquisition of Broadview, net of cash acquired | 0 | 0 | 63,300,000 |
Acquisition of MASS and ATC, net of cash acquired | 0 | 0 | (63,300,000) |
Broadview measurement period | Windstream Services, LLC | |||
Cash Flows from Investing Activities: | |||
Acquisition of Broadview, net of cash acquired | 0 | 0 | 63,300,000 |
Acquisition of MASS and ATC, net of cash acquired | 0 | 0 | (63,300,000) |
EarthLink | |||
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | (37,600,000) | ||
Cash acquired from EarthLink | 0 | 0 | 5,000,000 |
EarthLink | Windstream Services, LLC | |||
Cash Flows from Investing Activities: | |||
Cash acquired from EarthLink | 0 | 0 | 5,000,000 |
MASS and ATC | |||
Cash Flows from Investing Activities: | |||
Acquisition of Broadview, net of cash acquired | 0 | 46,900,000 | 0 |
Acquisition of MASS and ATC, net of cash acquired | 0 | (46,900,000) | 0 |
MASS and ATC | Windstream Services, LLC | |||
Cash Flows from Investing Activities: | |||
Acquisition of Broadview, net of cash acquired | 0 | 46,900,000 | 0 |
Acquisition of MASS and ATC, net of cash acquired | $ 0 | $ (46,900,000) | $ 0 |
WINDSTREAM SERVICES, LLC CONS_7
WINDSTREAM SERVICES, LLC CONSOLIDATED STATEMENTS OF MEMBER EQUITY (DEFICIT) - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Windstream Services, LLC | Windstream Services, LLCCommon Stock and Additional Paid-In Capital | Windstream Services, LLCAccumulated Other Comprehensive Income (Loss) | Windstream Services, LLCAccumulated Deficit |
Beginning balance at Dec. 31, 2016 | $ 170 | $ 559.7 | $ 5.9 | $ (395.6) | $ 170 | $ 556.1 | $ 5.9 | $ (392) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (2,116.6) | (2,116.6) | (2,115.4) | 0 | 0 | (2,115.4) | ||
Other comprehensive income, net of tax: | ||||||||
Change in pension and postretirement plans | 5.2 | 5.2 | 5.2 | 0 | 5.2 | 0 | ||
Amortization of net unrealized losses on de-designated interest rate swaps | 3.3 | 0 | 3.3 | 0 | ||||
Changes in designated interest rate swaps | 7 | 7 | 7 | 0 | 7 | 0 | ||
Comprehensive income (loss) | (2,101.1) | 0 | 15.5 | (2,116.6) | (2,099.9) | 0 | 15.5 | (2,115.4) |
Share-based compensation | 35.8 | 35.8 | 35.8 | 35.8 | 0 | 0 | ||
Stock issued for pension contribution | 9.6 | 9.6 | 9.6 | 9.6 | 0 | 0 | ||
Stock issued to employee savings plan (See Note 11) | 22.7 | 22.7 | 22.7 | 22.7 | 0 | 0 | ||
Stock issued in merger with EarthLink | 642.6 | 642.6 | 642.6 | 642.6 | 0 | 0 | ||
Taxes withheld on vested restricted stock and other | (10.7) | (10.7) | (10.7) | (10.7) | 0 | 0 | ||
Distributions payable to Windstream Holdings, Inc. | (69) | (69) | 0 | 0 | ||||
Ending 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 | (723) | (723) | (721.6) | 0 | 0 | (721.6) | ||
Other comprehensive income, net of tax: | ||||||||
Change in pension and postretirement plans | 3.7 | 3.7 | 3.7 | 0 | 3.7 | 0 | ||
Amortization of net unrealized losses on de-designated interest rate swaps | 2.3 | 0 | 2.3 | 0 | ||||
Changes in designated interest rate swaps | 2.8 | 2.8 | 2.8 | 0 | 2.8 | 0 | ||
Comprehensive income (loss) | (714.2) | 0 | 8.8 | (723) | (712.8) | 0 | 8.8 | (721.6) |
Share-based compensation | 13.3 | 13.3 | 13.3 | 13.3 | 0 | 0 | ||
Stock issued for pension contribution | 5.8 | 5.8 | 5.8 | 5.8 | 0 | 0 | ||
Stock issued to employee savings plan (See Note 11) | 28.3 | 28.3 | 28.3 | 28.3 | 0 | 0 | ||
Stock Issued Under Equity Distribution Agreement | 12.2 | 12.2 | 12.2 | 12.2 | 0 | 0 | ||
Taxes withheld on vested restricted stock and other | (1.1) | (1.1) | (1.1) | (1.1) | 0 | 0 | ||
Distributions payable to Windstream Holdings, Inc. | (1.4) | (1.4) | 0 | 0 | ||||
Ending 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 | (3,157.8) | (3,157.8) | (3,156.2) | 0 | 0 | (3,156.2) | ||
Net loss | Adoption of ASU 2016-02 (See Note 2) | 52.3 | |||||||
Other comprehensive income, net of tax: | ||||||||
Change in pension and postretirement plans | (2.7) | (2.7) | (2.7) | 0 | (2.7) | 0 | ||
Amortization of net unrealized losses on de-designated interest rate swaps | (7.9) | 0 | (7.9) | 0 | ||||
Changes in designated interest rate swaps | (2.4) | (2.4) | (2.4) | 0 | (2.4) | 0 | ||
Comprehensive income (loss) | (3,170.8) | 0 | (13) | (3,157.8) | (3,169.2) | 0 | (13) | (3,156.2) |
Share-based compensation | 2.9 | 2.9 | 2.9 | 2.9 | 0 | 0 | ||
Taxes withheld on vested restricted stock and other | (0.2) | (0.2) | (0.2) | (0.2) | 0 | 0 | ||
Distributions payable to Windstream Holdings, Inc. | (1.6) | (1.6) | 0 | 0 | ||||
Ending balance at Dec. 31, 2019 | $ (2,074.4) | $ 1,253.1 | $ 22.6 | $ (3,350.1) | $ (2,074.4) | $ 1,245.3 | $ 22.6 | $ (3,342.3) |
Background and Basis for Presen
Background and Basis for Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation: | Background and Basis for Presentation: 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. 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 164,000 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 consolidated financial statements include the accounts of Windstream Holdings, Windstream Services and the accounts of its subsidiaries. All affiliated transactions have been eliminated, as applicable. 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 accounting principles generally accepted in the United States (“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. 1. Background and Basis for Presentation, Continued: Going Concern and Financial Reporting – As further discussed in Note 3, our financial condition, the defaults under our debt agreements and contractual arrangement with Uniti Group, Inc. (“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. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Changes | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Changes: | Summary of Significant Accounting Policies and Changes: Significant Accounting Policies Use of Estimates – 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. Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. 2. Summary of Significant Accounting Policies and Changes, Continued: Restricted Cash - Deposits held as security for indebtedness under our corporate purchase card program and not available for use have been presented as restricted cash in the accompanying consolidated financial statements. Accounts Receivable – Accounts receivable consist principally 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 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 receivables related to communications services and product sales of $33.9 million and $40.0 million at December 31, 2019 and 2018 , respectively. Inventories – Inventories consist of finished goods and are stated at the lower of cost or net realizable value. Cost is determined using either an average original cost or specific identification method of valuation. Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist of prepaid services, rent, insurance, taxes, maintenance contracts, refundable deposits, interest rate swaps, and the current portion of contract assets and deferred contract costs recorded in accounting for revenue from contracts with customers. Prepayments are expensed on a straight-line basis over the corresponding life of the underlying agreements. 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 the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. In accordance with authoritative guidance, goodwill is to be assigned to a company’s reporting units and tested for impairment at least annually or sooner when circumstances indicate an impairment may exist, using a consistent measurement date, which for us is November 1st of each year. Goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit for which discrete financial information is available and our executive management team regularly reviews the operating results of that component. Additionally, components of an operating segment can be combined as a single reporting unit if the components have similar economic characteristics. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of the reporting unit exceeds its fair value, then an impairment loss is recognized equal to the amount by which the carrying value exceeds the reporting unit’s fair value; however, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Prior to performing the quantitative evaluation, an entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. Under the qualitative assessment, if an entity determines that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the entity is not required to complete the quantitative goodwill impairment evaluation. Certain of our intangible assets are spectrum licenses that provide the exclusive right to utilize designated radio frequency spectrum to provide telecommunication services. The spectrum licenses were purchased in the 24 gigahertz (“GHz”) and 28 GHz airwave auctions conducted by the Federal Communications Commission (“FCC”) in 2019. 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. We evaluate the useful life determination for the spectrum licenses each year to determine whether events and circumstances continue to support an indefinite useful life. Finite-lived intangible assets arising from business combinations such as franchise rights, customer lists, trade names and internally developed technology and software are initially recorded at estimated fair value. We amortize customer lists using the sum-of-the-years-digits method over the estimated lives of the customer relationships. All other finite-lived intangible assets are amortized using a straight-line method over the estimated useful lives. See Note 5 for additional information regarding goodwill and other intangible assets. 2. Summary of Significant Accounting Policies and Changes, Continued: Net Property, Plant and Equipment – Property, plant and equipment are stated at original cost, less accumulated depreciation. Property, plant and equipment consists of central office equipment, office and warehouse facilities, outside communications plant, customer premise equipment, furniture, fixtures, vehicles, machinery, other equipment and software to support the business units in the distribution of telecommunications products. The costs of additions, replacements, substantial improvements and extension of the network to the customer premise, including related contract and internal labor costs, are capitalized, while the costs of maintenance and repairs are expensed as incurred. Capitalized internal labor costs include non-cash share-based compensation and the matching contribution to the employee savings plan for those employees directly involved with construction activities. Depreciation expense amounted to $897.2 million , $1,300.9 million , and $1,229.0 million in 2019 , 2018 and 2017 , respectively. Net property, plant and equipment consisted of the following as of December 31: (Millions) Depreciable Lives 2019 2018 Land $ 24.2 $ 53.0 Building and improvements 3-40 years 358.5 660.7 Central office equipment 3-40 years 6,765.4 7,074.3 Outside communications plant 7-47 years 2,902.3 8,287.6 Furniture, vehicles and other equipment 1-23 years 1,863.4 1,940.8 Construction in progress 347.3 403.6 12,261.1 18,420.0 Less accumulated depreciation (8,640.3 ) (13,499.1 ) Net property, plant and equipment $ 3,620.8 $ 4,920.9 Of the total net property, plant and equipment at December 31, 2018 listed above, approximately $1.9 billion had been legally transferred to Uniti Group, Inc. (“Uniti”) as a result of the spin-off and leaseback by Windstream Holdings. This balance includes capital improvements, including upgrades or replacements to the leased network assets, funded by us, which are accounted for as lease-hold improvements and become the property of Uniti at the time such improvements are placed in service. Such capital improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining initial contractual term. For periods prior to January 1, 2019, we accounted for the spin-off transaction as a financing arrangement for financial reporting purposes due to various forms of continuing involvement. Accordingly, the net book value of the assets initially transferred to Uniti continued to be reported in our consolidated balance sheet as property, plant and equipment and depreciated. As further discussed below under “Recently Adopted Accounting Standards”, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) effective January 1, 2019. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer precluded the application of spin-leaseback accounting to the Uniti arrangement and, as a result, we prospectively changed the accounting for the Uniti arrangement from a financing to an operating lease effective January 1, 2019. As of that date, we de-recognized the remaining net book value of assets initially transferred to Uniti of $1.3 billion . Our regulated operations use a group composite depreciation method. Under this method, when plant is retired, the original cost, net of salvage value, is charged against accumulated depreciation and no immediate gain or loss is recognized on the disposition of the plant. For our non-regulated operations, when depreciable plant is retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts, with the corresponding gain or loss reflected in operating results. In accordance with the terms of certain broadband stimulus grants we received from the Rural Utilities Service (“RUS”) to fund 75 percent of the costs related to specified construction projects, the RUS retained a security interest in the assets funded by these grants for the duration of their economic life, which varies by grant for periods up to 23 years . In the event of default of terms of the agreement, the RUS could exercise the rights under its retained security interest to gain control and ownership of these assets. In addition, in the event of a proposed change in control of Windstream, the acquiring party would need to receive approval from the RUS prior to consummating the proposed transaction, for which pre-approval will not be reasonably withheld. At December 31, 2019, the net book value of assets funded by broadband stimulus grants was $38.0 million . We capitalize interest in connection with the acquisition or construction of plant assets. Capitalized interest is included in the cost of the asset with a corresponding reduction in interest expense. Capitalized interest amounted to $6.6 million , $3.7 million and $7.0 million in 2019 , 2018 and 2017 , respectively. 2. Summary of Significant Accounting Policies and Changes, Continued: Asset Retirement Obligations – We recognize asset retirement obligations in accordance with authoritative guidance on accounting for asset retirement obligations and conditional asset retirement obligations, which requires recognition of a liability for the fair value of an asset retirement obligation if the amount can be reasonably estimated. Our asset retirement obligations include legal obligations to remediate the asbestos in certain buildings if we exit them, to properly dispose of our chemically-treated telephone poles at the time they are removed from service and to restore certain leased properties to their previous condition upon exit from the lease. These asset retirement obligations totaled $54.2 million and $53.3 million as of December 31, 2019 and 2018 , respectively, and is included in liabilities subject to compromise for 2019 and other liabilities for 2018 in the accompanying consolidated balance sheets. Impairment of Long-Lived Assets – We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. Derivative Instruments – Derivative instruments are accounted for in accordance with authoritative guidance for recognition, measurement and disclosures about derivative instruments and hedging activities, including when a derivative or other financial instrument can be designated as a hedge. This guidance requires recognition of all derivative instruments at fair value, and accounting for the changes in fair value depends on whether the derivative has been designated as, and qualifies as, a hedge. Changes in fair value of cash flow hedges are recorded as a component of other comprehensive (loss) income in the current period. See Note 8 for additional information regarding our hedging activities and derivative instruments. Revenue Recognition – We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of equipment to customers and contractors. These services include a variety of communication and connectivity services for our Consumer and Business customers including other carriers that use our facilities to provide services to their customers, as well as professional and integrated managed services for our large enterprises and government customers. We account for these revenues under ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which we adopted on January 1, 2018, using the modified retrospective approach. This standard and related updates clarified the principles for recognizing revenue. The standard also amended the guidance for the recognition of costs to obtain and fulfill contracts with customers. We also earn revenues that are not accounted for under Topic 606 from leasing arrangements, federal and state universal service funds and other regulatory-related sources and activities. A contract’s transaction price, considering discounts given for bundled purchases and promotional credits, is allocated to each distinct performance obligation, a promise in a contract to transfer a distinct good or service to the customer, and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have multiple performance obligations. While many contracts include one or more performance obligations, the revenue recognition pattern is generally not impacted by the allocation since the performance obligations are generally satisfied over the same period of time. When the method and timing of transfer and performance risk are the same, services are deemed to be highly interdependent. Highly interdependent, indistinct, services are combined into a single performance obligation. Although each month of services promised is a separate performance obligation, we consider the series of monthly service performance obligations promised over the course of the contract a single performance obligation for purposes of the allocation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price we would charge for the good or service in a separate transaction with similar customers in similar circumstances. Identifying distinct performance obligations and determining the standalone selling price for each performance obligation within a contract with multiple performance obligations requires management judgment. 2. Summary of Significant Accounting Policies and Changes, Continued: Our performance obligations are satisfied over time as services are rendered or at a point in time depending on our evaluation of when the customer obtains control of the promised goods. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally, this occurs when services are rendered or control of our communication products is transferred. Service revenues are recognized over the period that the corresponding services are rendered to customers. Revenues that are billed in advance include monthly recurring network access and data services, special access and monthly recurring voice, Internet and other related charges. Revenues derived from other telecommunications services, including interconnection, long-distance and enhanced service revenues are recognized monthly as services are provided. Telecommunications network maintenance revenue from indefeasible rights to use fiber optic network facility arrangements (“IRUs”) are generally recognized over the term of the related contract. Sales of communications products including customer premise equipment and modems are recognized when products are delivered to and accepted by customers. In determining whether installation is a separate performance obligation, we evaluate, among other factors, whether other performance obligations are highly dependent upon installation requiring significant integration or customization or whether a customer can benefit from the installation with other readily available resources. In circumstances where customers can benefit from the installation with other readily available resources, installation is a separate performance obligation. We recognize installation revenue when the installation is complete. In circumstances where other telecommunication service performance obligations are highly dependent upon installation, installation is not a separate purchase obligation, and accordingly, we include the installation fees in the transaction price allocated to and recognized with other telecommunication service performance obligations. Fees assessed to customers for service activation are considered a material right in a month-to-month contract. These service activation fees are deferred and recognized as service revenue on a straight-line basis over the estimated life of the customer. As a practical expedient, we group similar contracts or performance obligations together into portfolios of contracts or performance obligations when the result does not differ materially from considering each contract or performance obligation separately. We apply the portfolio approach for the following: service activations, installation services, certain promotional credits, commissions and other costs to fulfill a contract. Portfolios are recognized over the estimated life of the customer. Determining the estimated life of the customer requires management judgment. The estimated life of our customer relationships varies by customer type. Wholesale customer lives are estimated based on the average number of months each individual circuit was active. Business customer lives are based on average contract terms. Residential customer lives are estimated based on average customer tenure. Our contracts include discounts and promotional credits given to customers. We include discounts and promotional credits in the transaction price. These estimates are based on historical experience and anticipated performance. In determining whether to include in revenues and expenses, the taxes and surcharges assessed and collected from customers and remitted to government authorities, including USF charges, sales, use, value added and excise taxes, we evaluate, among other factors, whether we are the primary obligor or principal tax payer for the fees and taxes assessed in each jurisdiction in which we operate. In those jurisdictions for which we are the primary obligor, we record the taxes and surcharges on a gross basis and include in revenues and costs of services and products. In jurisdictions in which we function as a collection agent for the government authority, we record the taxes on a net basis and exclude the amounts from our revenues and costs of services and products . We offer third-party video services to our customers. The third-party service provider retains control of the service and is the primary obligor. We record commissions received on a net basis. See Note 10 for additional information regarding contract balances, remaining performance obligations, revenue by category and deferred contract costs. Connect America Fund Support – In conjunction with reforming USF, the FCC established the CAF which provides incremental broadband funding to a number of unserved and underserved locations. In 2015, Windstream accepted support offers under CAF Phase II for 17 of 18 states in which we are the incumbent provider, totaling approximately $175.0 million in annual funding which will continue through 2021. Windstream is obligated to offer broadband service at speeds of 10/1 Mbps or better to approximately 400,000 eligible locations in high-cost areas in those 17 states. 2. Summary of Significant Accounting Policies and Changes, Continued: Intercarrier Billing Disputes - We routinely dispute network access charges that are billed to us by other companies for access to their networks. We have accrued amounts that we believe are adequate related to ongoing billing disputes. The reserves are subject to changes in estimates and management judgment as new information becomes available. Due to the length of time historically required to resolve these disputes, these matters may be resolved or require adjustment in future periods and relate to costs invoiced, accrued or paid in prior periods. While we believe the reserves recorded for billing disputes are adequate as of December 31, 2019, it is possible that we could record future adjustments to these reserves and such adjustments could be significant. There were no material adjustments to our billing dispute reserves during the years ended December 31, 2019, 2018 and 2017. Advertising – Advertising costs are expensed as incurred. Advertising expense totaled $36.1 million , $40.6 million and $47.8 million in 2019 , 2018 and 2017 , respectively. Share-Based Compensation – In accordance with authoritative guidance on share-based compensation, we measure compensation expense for all stock option and restricted stock awards at fair value on the date of the grant and recognize compensation expense over the requisite service period for awards expected to vest. We estimate the fair value of stock options using the Black-Scholes valuation model and determine the fair value of restricted stock awards based on the grant date quoted market price of Windstream Holdings’ common stock. Fair value of stock options and time-based restricted stock awards is recognized as compensation expense, net of estimated forfeitures, on a straight-line basis over the period that each award vests. For accounting purposes, performance-based awards are valued at fair value on the date on which the performance targets are set. Share-based compensation expense for performance-based awards is recognized when it is probable and estimable that the performance metrics will be achieved. Share-based compensation expense is included in cost of services and selling, general and administrative expenses in the accompanying consolidated statements of operations. See Note 12 for additional information regarding stock option, restricted stock and restricted unit activity. Pension Benefits – We recognize changes in the fair value of plan assets and actuarial gains and losses due to actual experience differing from actuarial assumptions, as a component of net periodic benefit expense (income) in the fourth quarter in the year in which the gains and losses occur, and if applicable in any quarter in which an interim remeasurement is required. The remaining components of net periodic benefit expense (income), primarily benefits earned, interest cost and expected return on plan assets, are recognized ratably on a quarterly basis. See Note 11 for additional information regarding actuarial assumptions, net periodic benefit expense (income), projected benefit obligation, plans assets, future contributions and payments. Operating Leases – Prior to adoption of ASU 2016-02 on January 1, 2019, as further discussed under “Recently Adopted Accounting Standards”, certain of our operating lease agreements included scheduled rent escalations during the initial lease term and/or during succeeding optional renewal periods. We accounted for these operating leases in accordance with authoritative guidance for operating leases with non-level rent payments. Accordingly, the scheduled increases in rent expense were recognized on a straight-line basis over the initial lease term and those renewal periods that were reasonably assured. The difference between rent expense and rent paid was recorded as deferred rent and was included in other liabilities in the accompanying consolidated balance sheets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term, including renewal option periods that are reasonably assured. Asset Disposal – In December 2018, we entered into an agreement to sell certain fiber assets in Minnesota to Arvig Enterprises Inc. for cash proceeds of $45.8 million and concurrently entered into a 20 -year IRU agreement to continue to use a portion of the sold fiber assets at no cost. At that time, we accounted for the transaction as a financing due to our continuing involvement in the fiber assets. Upon adoption of the new leasing standard, we reassessed our accounting treatment for this transaction. For additional information, see “Recently Adopted Accounting Standards, Leases” section of this note. 2. Summary of Significant Accounting Policies and Changes, Continued: Income Taxes – We account for income taxes in accordance with guidance on accounting for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. We account for uncertain tax positions in accordance with authoritative guidance which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Our evaluations of tax positions consider various factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in process audit activities and changes in facts or circumstances related to a tax position. We also accrue for potential interest and penalties related to unrecognized tax benefits in income tax (expense) benefit. 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. See Note 16 for additional information. Loss Per Share – We compute basic (loss) earnings per share by dividing net (loss) income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares containing a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares are considered participating securities, and the impact is included in the computation of (loss) earnings per share pursuant to the two-class method. Calculations of (loss) earnings per share under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. Commencing in the third quarter of 2017, we eliminated our quarterly common stock dividend. Diluted (loss) earnings per share reflects 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 effect of outstanding restricted stock units, stock options and warrants is reflected in diluted earnings per share 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. We also issue performance-based restricted stock units as part of our share-based compensation plan. Certain of these restricted stock units contain a forfeitable right to receive dividends. Because dividends attributable to these shares are forfeited if the vesting provisions are not met, they are considered non-participating restricted shares and are not considered to be potentially dilutive under the two-class method until the performance conditions have been satisfied. 2. Summary of Significant Accounting Policies and Changes, Continued: A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows for the years ended December 31: (Millions, except per share amounts) 2019 2018 2017 Basic and diluted loss per share: Numerator: Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) Income allocable to participating securities — — (1.3 ) Net loss attributable to common shares $ (3,157.8 ) $ (723.0 ) $ (2,117.9 ) Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 42.6 40.8 34.5 Weighted average participating securities — — (0.7 ) Weighted average basic and diluted shares outstanding 42.6 40.8 33.8 Basic and diluted loss per share: Net loss ($74.06 ) ($17.72 ) ($62.66 ) We have excluded from the computation of diluted shares the effect of restricted stock units and options to purchase shares of our common stock because their inclusion would have an anti-dilutive effect due to our reported net losses. We had 0.5 million restricted stock units and 0.8 million stock options outstanding as of December 31, 2019 , compared to 0.4 million restricted stock units and 1.0 million stock options outstanding at December 31, 2018 . We had 0.8 million restricted stock units and less than 0.1 million stock options outstanding as of December 31, 2017. Recently Adopted 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 recogni |
Chapter 11 Filing, Going Concer
Chapter 11 Filing, Going Concern and Other Matters | 12 Months Ended |
Dec. 31, 2019 | |
Reorganizations [Abstract] | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | Chapter 11 Filing 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. 3. Chapter 11 Filing 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. 3. Chapter 11 Filing 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. On the same date, the Debtors filed a Disclosure Statement relating to the Plan, along with a motion seeking approval of the Disclosure Statement. On May 6, 2020, an amended Disclosure Statement was filed with the Bankruptcy Court that included ranges of allowed claims by creditor classes. As of 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; 3. Chapter 11 Filing 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. Liabilities Subject to Compromise Due to the filing of the Chapter 11 Cases on February 25, 2019, the classification of pre-petition indebtedness is generally subject to compromise pursuant to a plan of reorganization, as further described in Note 1. 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 6, “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 December 31, 2019. 3. Chapter 11 Filing and Other Related Matters, Continued: As also discussed in Note 6, “Debt,” adequate protection payment was granted by the Bankruptcy Court to holders of debt obligations under Windstream Services’ senior secured credit facility and to holders of the senior first lien notes and Midwest Bonds. The Debtors have concluded that such payments do not represent the reduction of principal because the allowed claim for the associated secured debt included in the Disclosure Statement agreed to the outstanding principal balance as of June 30, 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 December 31, 2019 consisted of the following: (Millions) Accounts payable $ 335.7 Advance payments 6.6 Accrued taxes 24.5 Other current liabilities 97.1 Deferred taxes 72.6 Operating lease liabilities 4,040.7 Pension and other employee benefit plan obligations 314.0 Other liabilities 200.7 Accounts payable, accrued and other liabilities 5,091.9 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 $ 10,720.1 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. 3. Chapter 11 Filing 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 year ended December 31, 2019 were as follows: (Millions) Write-off of deferred long-term debt issuance costs $ 54.8 Write-off of original issue net discount on debt subject to compromise 27.1 Debtor-in-possession financing costs 43.4 Professional fees and other bankruptcy related costs 139.2 Provision for estimated damages on rejected executory contracts 29.3 Gain on write-off of net lease liabilities for rejected leases (17.7 ) Gain on vendor settlements of liabilities subject to compromise (15.5 ) Reorganization items, net $ 260.6 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: Completed in 2018 American Telephone Company On August 31, 2018, Windstream Holdings completed its acquisition of American Telephone Company, LLC (“ATC”), a reseller of a broad range of voice and data communications services to businesses mainly headquartered in the greater New York metropolitan area, for cash consideration of approximately $10.0 million , net of cash acquired. The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the aggregate purchase price over the fair value of the tangible net assets acquired was assigned to customer list of $7.0 million and goodwill of $3.6 million . All of the goodwill recorded in this acquisition is deductible for income tax purposes. The results of ATC’s operations were not material to our consolidated results of operations, and accordingly, no pro forma financial information has been presented. MASS Communications On March 27, 2018, Windstream Holdings acquired MASS Communications (“MASS”), a privately held telecommunications network management company focused on providing custom engineered voice, data and networking solutions to small and mid-sized global enterprises in the financial, legal, healthcare, technology, education and government sectors for cash consideration of approximately $37.1 million , net of cash acquired, and included $2.5 million of expected earn-out payments which were subsequently paid to the sellers. The acquisition was accounted for using the acquisition method and accordingly, the cost of the acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. In allocating the purchase price, we recorded approximately $1.3 million of tangible assets, consisting primarily of accounts receivable, $10.0 million associated with a customer list intangible asset, $4.2 million of trade accounts payable and other current liabilities, $1.5 million of deferred income tax liabilities, and $31.5 million of goodwill. Goodwill associated with this acquisition was primarily attributable to the MASS workforce and expected synergies. None of the goodwill recorded in this acquisition was deductible for income tax purposes. The results of MASS’ operations were not material to our consolidated results of operations, and accordingly, no pro forma financial information has been presented. 4. Acquisitions, Continued: Completed in 2017 Broadview Network Holdings, Inc. On July 28, 2017, Windstream Holdings completed its merger with Broadview Networks Holdings, Inc. (“Broadview”), pursuant to the terms of the Agreement and Plan of Merger (the “Broadview Merger Agreement”) dated April 12, 2017, whereby Broadview merged into Beethoven Merger Subsidiary, Inc., with Broadview surviving as an indirect wholly owned subsidiary of Windstream Holdings, and changing its name to Windstream BV Holdings, Inc. Broadview was a leading provider of cloud-based unified communications solutions to small and medium-sized businesses and offered a broad suite of cloud-based services. Upon completion of the merger, Windstream added approximately 20,000 small and medium-sized business customers and approximately 3,000 incremental route fiber miles. Pursuant to the terms of the Broadview Merger Agreement, each share of Broadview’s common stock, par value $.01 per share that was issued and outstanding immediately prior to the effective time of the merger was automatically converted into the right to receive cash consideration of $6.98 per share. In completing the merger, Windstream Services paid $69.8 million in cash to Broadview shareholders and assumed $160.2 million of Broadview’s short-term debt obligations, which Windstream Services subsequently repaid using amounts available under its senior secured revolving credit facility. The transaction was valued at approximately $230.0 million . The acquisition was accounted for using the acquisition method and accordingly, the cost of the acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Goodwill of $120.6 million recognized in this acquisition was primarily attributable to the Broadview workforce and expected synergies. As a result of past acquisitions completed by Broadview, approximately $10.8 million of goodwill recorded in the merger was expected to be deductible for income tax purposes. The results of Broadview’s operations are included in our consolidated results of operations beginning on July 28, 2017. For the year ended December 31, 2017, our consolidated results of operations included revenues and sales of $119.9 million and operating income of $6.0 million attributable to Broadview. We incurred merger and integration expenses during 2019, 2018 and 2017 related to the completion of this acquisition (see Note 13). Pro forma financial information for Broadview has not been presented because the effects of this acquisition were not material to our consolidated results of operations. EarthLink Holdings Corp. On February 27, 2017, Windstream Holdings completed its merger with EarthLink Holdings Corp. (“EarthLink”), pursuant to the terms of the Agreement and Plan of Merger (the “Merger Agreement”) dated November 5, 2016, whereby EarthLink merged into Europa Merger Sub, Inc., an wholly-owned subsidiary of Windstream Services, LLC, and survived, and immediately following, merged with Europa Merger Sub, LLC, a wholly-owned subsidiary of Windstream Services, LLC, with Merger Sub surviving and changing its name to EarthLink Holdings, LLC (the “Merger”). EarthLink Holdings, LLC is a direct, wholly-owned subsidiary of Windstream Services and provides data, voice and managed network services to retail and wholesale business customers and nationwide Internet access and related value-added services to residential customers. In the Merger, we added approximately 700,000 customers and approximately 16,000 incremental route fiber miles. Pursuant to the terms of the Merger Agreement, each share of EarthLink common stock was exchanged, on a post-reverse stock split basis, for 0.164 of Windstream Holdings common stock. No fractional shares were issued in the Merger, with a cash payment being made in lieu of fractional shares. Employee restricted stock units issued by EarthLink that were outstanding as of the merger date were exchanged for an equivalent number of Windstream Holdings restricted stock units based on the same exchange ratio of EarthLink common stock to Windstream Holdings common stock. The replacement restricted stock units remain subject to the vesting and other terms and conditions prescribed by the EarthLink equity plans that were assumed by us in the Merger. In the aggregate, on a post-reverse stock split basis, Windstream Holdings issued 17.6 million shares of its common stock and 1.0 million of replacement equity awards. Windstream also assumed $435.3 million aggregate principal amount of EarthLink’s long-term debt, which was refinanced, as further discussed in Note 6. The Merger qualified as a tax-free reorganization for U.S. federal income tax purposes and was valued at approximately $1.1 billion . The acquisition was accounted for using the acquisition method and accordingly, the cost of the acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. 4. Acquisitions, Continued: Goodwill of $348.3 million recognized in the Merger was primarily attributable to the EarthLink workforce and expected synergies. As a result of past acquisitions completed by EarthLink, approximately $54.8 million of goodwill recorded in the Merger was deductible for income tax purposes. The results of EarthLink’s operations are included in our consolidated results of operations beginning on February 27, 2017. For the year ended December 31, 2017, our consolidated results of operations include revenues and sales of $751.1 million and operating loss of $61.0 million attributable to EarthLink. We incurred $6.8 million , $15.5 million and $104.1 million of merger and integration expenses during the year ended December 31, 2019 , 2018 and 2017, respectively, related to the completion of the Merger (see Note 13). The following unaudited pro forma consolidated results of operations of Windstream for the year ended December 31, 2017 assume that the Merger occurred as of January 1, 2016: (Millions) Revenues and sales $ 6,002.4 Operating loss $ (1,559.2 ) Net loss $ (2,098.3 ) Loss per share ($57.27 ) The pro forma information presents our historical results of operations adjusted to include EarthLink, with the results prior to the merger closing date adjusted to include the pro forma effect of the elimination of transactions between Windstream and EarthLink, the adjustment to revenues and sales to change EarthLink’s reporting of USF fees billed to customers and the related payments from a net basis to a gross basis to conform to Windstream’s reporting of such customer billings, the adjustment to depreciation and amortization expense associated with the estimated acquired fair value of property, plant and equipment and intangible assets, the adjustment to interest expense to reflect the refinancing of EarthLink’s long-term debt obligations, the impact of merger expenses related to the acquisition and the related income tax effects of the pro forma adjustments. The pro forma results are presented for illustrative purposes only and do not reflect either the realization of potential cost savings or any additional integration costs. These pro forma results do not purport to be indicative of the results that would have been obtained if the Merger had occurred as of the date indicated, nor do the pro forma results intend to be a projection of results that may be obtained in the future. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets: | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 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 2, 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. 5. 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 18, 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. As of November 1, 2019, we performed a qualitative assessment of the remaining goodwill balance related to our Wholesale reporting unit and determined that it was more likely than not that the fair value of the Company’s Wholesale reporting unit was at least equal to its carrying value. We performed a quantitative goodwill impairment test as of our annual measurement date of November 1, 2018. As of that date, we had four reporting units consisting of Consumer & Small Business, Enterprise, Wholesale and Consumer CLEC, which is consistent with how we defined our four reportable operating segments. We estimated the fair value of our Consumer & Small Business, Enterprise and Wholesale reporting units using an income approach based on the present value of the projected cash flows and a terminal value for each reporting unit. For the Consumer CLEC reporting unit, we estimated fair value based on the gross cash proceeds received from the subsequent sale of these operations due to the close proximity of the sale date of December 31, 2018 to our assessment date of November 1, 2018. Based on the results of our quantitative analysis, we determined that no goodwill impairment existed as of November 1, 2018. 5. 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 Consumer CLEC Total Balance at December 31, 2017: Goodwill $ — $ 2,321.2 $ 961.8 $ 1,297.1 $ 103.1 $ 4,683.2 Accumulated impairment loss — (1,417.8 ) — (423.0 ) — (1,840.8 ) Balance at December 31, 2017, net — 903.4 961.8 874.1 103.1 2,842.4 Changes during the period: Broadview measurement period — — (0.7 ) — — (0.7 ) MASS acquisition — — 31.5 — — 31.5 ATC acquisition — — 3.6 — — 3.6 Disposition of consumer CLEC business — — — — (103.1 ) (103.1 ) 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: Reallocation adjustment 254.3 — 119.0 (373.3 ) — — Goodwill impairment (254.3 ) (903.4 ) (1,115.2 ) (439.4 ) — (2,712.3 ) Balance at December 31, 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 December 31, 2019, net $ — $ — $ — $ 61.4 $ — $ 61.4 Indefinite-lived intangible assets were as follows: (Millions) December 31, December 31, FCC Spectrum licenses $ 26.6 $ — Other intangible assets subject to amortization were as follows at December 31: 2019 2018 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (457.4 ) $ 827.7 $ 1,285.1 $ (414.6 ) $ 870.5 Customer lists 1,758.5 (1,568.6 ) 189.9 1,758.5 (1,450.4 ) 308.1 Cable franchise rights 11.6 (7.8 ) 3.8 17.3 (10.3 ) 7.0 Trade names 21.0 (5.9 ) 15.1 21.0 (3.9 ) 17.1 Developed technology and software 18.0 (12.4 ) 5.6 18.0 (7.7 ) 10.3 Patents 10.6 (10.6 ) — 10.6 (10.5 ) 0.1 Balance $ 3,104.8 $ (2,062.7 ) $ 1,042.1 $ 3,110.5 $ (1,897.4 ) $ 1,213.1 5. Goodwill and Other Intangible Assets, Continued: Intangible asset amortization methodology and useful lives were as follows as of December 31, 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 $171.0 million , $225.8 million and $241.0 million in 2019 , 2018 and 2017 , respectively. Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the years ended December 31 : Year (Millions) 2020 $ 133.5 2021 100.8 2022 71.0 2023 58.6 2024 53.5 Thereafter 624.7 Total $ 1,042.1 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: | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-term Debt and Lease Obligations | Debt: Windstream Holdings has no debt obligations. All debt, including the senior secured credit facility described below, have been incurred by Windstream Services and its subsidiaries. Windstream Holdings is neither a guarantor of nor subject to the restrictive covenants imposed by such debt. Event of Default and Chapter 11 Cases – As further discussed in Notes 3 and 17, on February 15, 2019, Judge 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 were 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 after the second day motion hearing, the Bankruptcy Court authorized us to conduct our business activities in the ordinary course. 6. Debt, Continued: Debt was as follows at December 31: (Millions) 2019 2018 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 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 ) 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 $ — $ — Weighted average interest rate 8.4 % 7.1 % 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. 6. 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 December 31, 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 $28.5 million and $55.1 million reserved for potential professional fees, the amount available for borrowing under the Revolving Facility was $416.4 million as of December 31, 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. 6. 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. 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 4.0 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. During 2018, Windstream Services borrowed $816.0 million under the revolving line of credit and through the completion of a debt-for-debt exchange and repayments retired $574.0 million of these borrowings. Borrowings under the revolving line of credit included $150.0 million for the one-time mandatory redemption payment applicable to the 2024 Notes paid on February 26, 2018. During 2017, Windstream Services borrowed $1,196.0 million under the revolving line of credit and through the completion of a debt-for-debt exchange and repayments retired $896.0 million of these borrowings in 2017. Borrowings under the revolving line of credit included $160.0 million to repay amounts outstanding under Broadview’s revolving credit facility and to redeem Broadview’s 2017 Notes. 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 7.65 percent during 2019, as compared to variable interest rates during 2018 which ranged from 3.40 percent to 6.50 percent with a weighted average rate on amounts outstanding of 4.02 percent . 6. Debt, Continued: 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 December 31, 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. Consent Solicitation and Amendments to 2025 Notes and Senior Secured Credit Facility - During the second quarter of 2018, Windstream Services and Windstream Finance Corp. (together the “issuers”) received the requisite consents to amend the indenture governing the 8.625 percent senior first lien notes due October 31, 2025 (“2025 Notes”). Holders of the 2025 Notes who validly delivered (and did not validly revoke) consents to the amendments to the indenture received a one-time consent payment equal to $2.50 per $1,000 principal amount of 2025 Notes provided that such consent was received prior to the expiration of the consent solicitation on June 6, 2018. The consent solicitation (i) permitted the issuers and guarantors under the indenture to issue or incur indebtedness on a junior lien basis and (ii) authorized the collateral agent under the indenture to enter into a junior lien intercreditor agreement upon the issuance or incurrence of junior lien secured indebtedness by the issuers and the guarantors under the indenture. In conjunction with receiving the requisite consents, the amendments to the indenture became effective and operative. All holders of the 2025 Notes are bound by the terms thereof, even if they did not deliver consents to the amendments. Except for the amendments, all existing terms of the 2025 Notes and the Indenture remain unchanged. Concurrent with the consent solicitation, Windstream Services also sought and obtained an amendment to its senior secured credit facility to, among other things, (i) permit the issuance or incurrence of second-priority lien secured indebtedness, (ii) allow Windstream Services to use the proceeds from the issuance or incurrence of such second-priority lien secured indebtedness and other secured indebtedness to repay certain of its outstanding secured and unsecured indebtedness, (iii) permit the execution of a first-lien/second-lien intercreditor agreement, (iv) allow for the incurrence of first-priority lien secured indebtedness if the proceeds of such indebtedness are used to prepay or repay revolving loans or term loans under the senior secured credit facility (and, for revolving loans, permanently reduce the commitments), even if Windstream Services does not meet the typical test of having a pro forma first lien leverage ratio of not more than 2.25 to 1.0, and (v) limit the ability of Windstream Services to declare and pay dividends in some respects. In completing the consent solicitation and amendments, Windstream Services incurred $11.5 million in fees, consisting of $8.8 million in consent fees payable to lenders and $2.7 million in arrangement, legal and other third-party fees. In accordance with debt modification accounting, the $2.7 million in arrangement, legal and other third-party fees were expensed as additional interest expense and the $8.8 million in consent fees were capitalized as debt issuance costs and amortized over the respective terms of the 2025 Notes and senior secured credit facility. Debt Issuances and Debt Exchanges Completed in 2018 On August 2, 2018, Windstream Services completed the settlement of exchange offers, which expired on July 31, 2018, for (1) its 7.75 percent senior notes due October 15, 2020 (“2020 Notes”) for new 10.500 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 April 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. 6. Debt, Continued: The New 2024 Notes and New 2025 Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws. As such, these notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. 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 and amortized over the terms of the new notes in accordance with the extinguishment method of accounting. Debt Issuances and Debt Exchanges Completed in 2017 On November 8, 2017, Windstream Services completed a private placement offering of $400.0 million in aggregate principal amount of 8.625 percent senior first lien notes due October 31, 2025 (“2025 Notes”). The notes were issued at a price of 99.0 percent to yield 8.802 percent . The notes were co-issued by Windstream Finance Corp. (“Windstream Finance”), a direct wholly-owned subsidiary of Windstream Services, and 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. Windstream Services used the net proceeds of the offering to repay approximately $250.0 million of borrowings under its revolving line of credit and to repay $139.0 million of amounts outstanding under its Tranche B6 term loan. In November 2017, Windstream Services completed exchange offers for its 2020 Notes, 2021 Notes, 2022 Notes, and April 2023 Notes as follows: • accepted for exchange $167.5 million aggregate principal amount of 2022 Notes and $223.1 million aggregate principal amount of April 2023 Notes in exchange for $420.6 million aggregate principal amount of new August 2023 Notes. • accepted for exchange $181.2 million aggregate principal amount of 2021 Notes in exchange for $141.3 million aggregate principal amount of new August 2023 Notes and approximately $50.0 million principal amount of 2025 Notes. • accepted for exchange $158.0 million aggregate principal amount of 2020 Notes in exchange for approximately $150.0 million of aggregate principal amount of 2025 Notes. In completing these exchange offers, Windstream Services issued $561.9 million aggregate principal amount of new August 2023 Notes and issued $200.0 million aggregate principal amount of 2025 Notes. Pursuant to exchanges offers for its 2021 and 2022 Notes, in December 2017, Windstream Services issued $834.3 million in aggregate principal amount of 8.750 percent senior notes due December 15, 2024 (“2024 Notes”) for exchange of $539.2 million aggregate principal amount of 2021 Notes and $232.1 million aggregate principal amount of 2022 Notes. The 2024 notes were issued at par and were co-issued by Windstream Finance and are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The 2024 Notes require a one-time mandatory redemption payment of $150.0 million payable on February 26, 2018. Additionally, as part of the 2024 Notes, Windstream Services agreed to certain provisions that prohibits its ability to issue restricted payments to its parent company, Windstream Holdings, if Windstream Services’ consolidated leverage ratio, as defined in the 2024 Notes, exceeds 3.50 to 1.0, except for purposes of allowing restricted payments to Windstream Holdings for the purposes of making payments under the contractual arrangement with Uniti and to pay certain administrative expenses. The provisions indirectly impacts, and could limit, Windstream Holdings’ future issuance of dividends to holders of its common stock and its engagement in stock repurchase programs. 6. Debt, Continued: In completing the exchange transactions, Windstream Services incurred $27.7 million in fees, consisting of $6.0 million in consent fees payable to lenders and $21.7 million in arrangement, legal and other third-party fees, and the lenders received a net exchange premium of $95.1 million in the form of additional future principal payments. Based on an analysis of participating creditors, Windstream Services concluded that a portion of the exchanges should be accounted for as a debt modification and the remainder as a debt extinguishment. For the portion of the exchanges accounted for under the extinguishment method of accounting, Windstream Services recognized a net loss of $55.5 million , consisting of the write-off of a portion of the net exchange premium and consent fees and unamortized premium and debt issuance costs related to the original notes. The remaining $45.2 million of net exchange premium and $4.0 million of consent fees were capitalized and deferred over the terms of the new notes in accordance with debt modification accounting. The $21.7 million in arrangement, legal and other third-party fees were allocated on a lender-by-lender basis to creditors resulting in $13.8 million of fees expensed as additional interest expense under debt modification accounting, while the remaining $7.9 million of fees were capitalized and amortized over the terms of the new notes in accordance with the extinguishment method of accounting. Other Debt Obligations Repaid in 2017 During 2017, under a debt repurchase program authorized by Windstream Services’ board of directors, Windstream Services repurchased in the open market $49.1 million aggregate principal amount of its 2020 Notes at a repurchase price of $45.3 million , including accrued and unpaid interest. At the time of repurchase, there was $0.3 million in unamortized net premium and debt issuance costs related to the repurchased notes. The repurchases were funded utilizing available borrowings under the amended revolving line of credit and were accounted for under the extinguishment method of accounting. On the date of closing of the merger with EarthLink, Windstream Services amended its existing senior secured credit agreement to provide for the issuance of an aggregate principal amount of $450.0 million in incremental borrowings under Tranche B6, the proceeds of which were used to repay amounts outstanding under EarthLink’s credit facility and to redeem EarthLink’s outstanding 8.875 percent Senior Notes due 2019 (“EarthLink 2019 Notes”) and 7.375 percent Senior Secured Notes due 2020 (“EarthLink 2020 Notes”). The repayment of the EarthLink 2019 and 2020 Notes were accounted for under the extinguishment method of accounting. Net Gain (Loss) on Early Extinguishment of Debt The net gain (loss) on early extinguishment of debt was comprised of the following: (Millions) Discount (Premium) on early redemption Third-party fees for early redemption Unamortized (discount) premium on original issuance, net Unamortized debt issuance costs on original issuance Net gain (loss) on early extinguishment of debt Year ended December 31, 2018: Exchanges of 2021, 2022, April 2023, August 2023 and 2024 Notes $ 226.0 $ — $ (22.9 ) $ (12.8 ) $ 190.3 Total $ 226.0 $ — $ (22.9 ) $ (12.8 ) $ 190.3 Year ended December 31, 2017: Senior secured credit facility $ — $ — $ (1.8 ) $ (2.3 ) $ (4.1 ) Broadview 2017 Notes — — 0.2 — 0.2 EarthLink 2019 and 2020 Notes (18.3 ) — 16.3 — (2.0 ) Partial repurchase of 2020 Notes 5.3 — 0.1 (0.4 ) 5.0 Exchanges of 2020, 2021, 2022, and April 2023 Notes (49.9 ) (2.0 ) 2.2 (5.8 ) (55.5 ) Total $ (62.9 ) $ (2.0 ) $ 17.0 $ (8.5 ) $ (56.4 ) 6. Debt, Continued: Interest Expense Interest expense was as follows for the years ended December 31: (Millions) 2019 2018 2017 Interest expense - long-term debt $ 338.7 $ 429.0 $ 376.1 Interest expense - long-term lease obligations: Telecommunications network assets — 467.0 484.9 Real estate contributed to pension plan 6.2 6.2 6.2 Impact of interest rate swaps (12.2 ) (3.5 ) 10.1 Interest on capital leases and other 5.8 6.3 5.1 Less capitalized interest expense (6.6 ) (3.7 ) (7.0 ) Total interest expense $ 331.9 $ 901.3 $ 875.4 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessor Disclosure [Text Block] | Leases As previously discussed in Note 2, 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. 7. Leases, Continued: 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 10.3 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 $72.0 million as of December 31, 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. Components of lease expense were as follows for the year ended December 31, 2019: (Millions) Classification Operating lease costs (a) Cost of services, Selling, general and administrative $ 803.2 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 44.4 Interest on lease liabilities Interest expense 4.1 Net lease expense $ 851.7 (a) Includes short-term leases and variable lease costs which are not material. 7. Leases, Continued: Supplemental balance sheet information related to leases was as follows: (Millions) December 31, Operating Leases Operating lease right-of-use assets $ 4,018.0 Current portion of operating lease obligations 3,791.2 Operating lease liabilities 251.6 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,042.8 Less amounts reclassified to liabilities subject to compromise (4,040.7 ) Total operating lease liabilities $ 2.1 Finance Leases Property, plant and equipment, gross $ 257.2 Accumulated depreciation (191.6 ) Net property, plant and equipment 65.6 Other current liabilities 23.3 Other liabilities 25.6 Finance lease liabilities prior to reclassification to liabilities subject to compromise 48.9 Less amounts reclassified to liabilities subject to compromise (45.0 ) Total finance lease liabilities $ 3.9 Weighted Average Remaining Lease Term Operating leases 10.0 years Finance leases 4.1 years Leaseback of real estate contributed to pension plan 10.8 years Weighted Average Discount Rate Operating leases 13.9 % Finance leases 6.6 % Leaseback of real estate contributed to pension plan 8.6 % Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019: (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 787.4 Operating cash outflows from finance leases $ 4.3 Financing cash outflows from finance leases $ 49.3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6.5 Finance leases $ 11.5 7. Leases, Continued: As of December 31, 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) 2020 $ 789.6 $ 6.7 $ 25.2 2021 759.7 6.9 10.4 2022 742.8 7.1 5.7 2023 728.4 7.3 5.6 2024 714.5 6.2 3.6 Thereafter 3,795.7 48.8 10.7 Total future minimum lease payments 7,530.7 83.0 61.2 Less: Amounts representing interest 3,487.9 61.9 12.3 Add: Residual value — 50.9 — Present value of lease liabilities $ 4,042.8 $ 72.0 $ 48.9 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. Rental expense under ASC 840 totaled $162.0 million and $161.6 million in 2018 and 2017, respectively. As of December 31, 2019, there are no material operating or finance leases that have not yet commenced. 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. 7. Leases, Continued: 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 $255.8 million for the year ended December 31, 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) 2020 $ 60.5 2021 44.5 2022 24.5 2023 10.1 2024 4.4 Thereafter 0.4 Total future lease receipts $ 144.4 |
Leases of Lessee Disclosure [Text Block] | Leases As previously discussed in Note 2, 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. 7. Leases, Continued: 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 10.3 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 $72.0 million as of December 31, 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. Components of lease expense were as follows for the year ended December 31, 2019: (Millions) Classification Operating lease costs (a) Cost of services, Selling, general and administrative $ 803.2 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 44.4 Interest on lease liabilities Interest expense 4.1 Net lease expense $ 851.7 (a) Includes short-term leases and variable lease costs which are not material. 7. Leases, Continued: Supplemental balance sheet information related to leases was as follows: (Millions) December 31, Operating Leases Operating lease right-of-use assets $ 4,018.0 Current portion of operating lease obligations 3,791.2 Operating lease liabilities 251.6 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,042.8 Less amounts reclassified to liabilities subject to compromise (4,040.7 ) Total operating lease liabilities $ 2.1 Finance Leases Property, plant and equipment, gross $ 257.2 Accumulated depreciation (191.6 ) Net property, plant and equipment 65.6 Other current liabilities 23.3 Other liabilities 25.6 Finance lease liabilities prior to reclassification to liabilities subject to compromise 48.9 Less amounts reclassified to liabilities subject to compromise (45.0 ) Total finance lease liabilities $ 3.9 Weighted Average Remaining Lease Term Operating leases 10.0 years Finance leases 4.1 years Leaseback of real estate contributed to pension plan 10.8 years Weighted Average Discount Rate Operating leases 13.9 % Finance leases 6.6 % Leaseback of real estate contributed to pension plan 8.6 % Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019: (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 787.4 Operating cash outflows from finance leases $ 4.3 Financing cash outflows from finance leases $ 49.3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6.5 Finance leases $ 11.5 7. Leases, Continued: As of December 31, 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) 2020 $ 789.6 $ 6.7 $ 25.2 2021 759.7 6.9 10.4 2022 742.8 7.1 5.7 2023 728.4 7.3 5.6 2024 714.5 6.2 3.6 Thereafter 3,795.7 48.8 10.7 Total future minimum lease payments 7,530.7 83.0 61.2 Less: Amounts representing interest 3,487.9 61.9 12.3 Add: Residual value — 50.9 — Present value of lease liabilities $ 4,042.8 $ 72.0 $ 48.9 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. Rental expense under ASC 840 totaled $162.0 million and $161.6 million in 2018 and 2017, respectively. As of December 31, 2019, there are no material operating or finance leases that have not yet commenced. 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. 7. Leases, Continued: 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 $255.8 million for the year ended December 31, 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) 2020 $ 60.5 2021 44.5 2022 24.5 2023 10.1 2024 4.4 Thereafter 0.4 Total future lease receipts $ 144.4 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 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 . Due to previous refinancing transactions, Windstream Services 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 may be required to net settle any outstanding derivative liability positions with its counterparties at the swap termination value, including accrued interest and excluding the 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. 8. Derivatives, Continued: Following the adverse court ruling, 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 December 31, 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) 2019 2018 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) $ 23.6 $ (2.4 ) Weighted average fixed rate paid 2.31 % 2.31 % Variable rate received 2.48 % 2.46 % Prior to their termination, payments on the swaps were presented in the financing activities section of the accompanying consolidated statements of cash flows due to the embedded financing element discussed above. Changes in derivative instruments were as follows for the years ended December 31: (Millions) 2019 2018 2017 Changes in fair value, net of tax $ (2.4 ) $ 2.8 $ 7.0 Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax $ (7.9 ) $ 2.3 $ 3.3 As of December 31, 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 swaps. 8. 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 present 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_
Fair Value Measurements: | 12 Months Ended |
Dec. 31, 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 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 year ended December 31, 2019 requiring these non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, debt and interest rate swaps. The carrying amount of cash, restricted 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, debt and interest rate swaps (prior to their termination) are measured at fair value on a recurring basis. Cash equivalents were not significant as of December 31, 2019. 9. Fair Value Measurements, Continued: The fair values of cash equivalents, interest rate swaps and debt were determined using the following inputs at December 31: (Millions) 2019 2018 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) Included in current portion of debt - Level 2 $ 500.0 $ 4,405.8 Included in liabilities subject to compromise - Level 2 $ 3,676.1 $ — (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 long-term debt, including current portion, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of December 31, 2019 and 2018 , respectively. Prior to their termination, 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 year ended December 31, 2019 . |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues: The majority of our revenue is derived from providing access to or usage of our networks and facilities we operate. 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 December 31: (Millions) 2019 2018 Contract assets (a) $ 32.8 $ 12.6 Contract liabilities (b) $ 162.3 $ 184.8 Revenues recognized included in the opening contract liability balance $ 172.1 $ 194.9 10. Revenues, Continued: (a) Included $20.8 million and $8.3 million in prepaid expense and other and $12.0 million and $4.3 million in other assets as of December 31, 2019 and 2018 , respectively. (b) Included $148.0 million and $172.1 million in advance payments and $9.9 million and $12.7 million in other liabilities as of December 31, 2019 and 2018 , respectively. This amount also included $4.4 million in liabilities subject to compromise as of December 31, 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 December 31, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.5 billion for contracts with original expected durations of more than one year remaining. We expect to recognize approximately 42 percent , 28 percent and 17 percent of our remaining performance obligations as revenue during 2020, 2021 and 2022, with the remaining balance thereafter. 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 year ended December 31, 2019 was as follows: (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 953.4 $ — $ — $ 953.4 Voice-only 108.2 — — 108.2 Video and miscellaneous 38.6 — — 38.6 Core (a) — 1,153.0 — 1,153.0 Strategic (b) — 220.7 — 220.7 Legacy (c) — 487.0 — 487.0 Small business 299.5 — — 299.5 Wholesale (d) 208.3 — 272.1 480.4 Switched access (e) 24.3 — 27.3 51.6 Other (g) — 526.0 — 526.0 Service revenues from contracts with customers 1,632.3 2,386.7 299.4 4,318.4 Product and fiber sales 42.9 36.3 12.6 91.8 Total revenue from contracts with customers 1,675.2 2,423.0 312.0 4,410.2 Other service revenues (h) 399.5 255.5 50.2 705.2 Total revenues and sales $ 2,074.7 $ 2,678.5 $ 362.2 $ 5,115.4 10. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the year ended December 31, 2018 was as follows: (Millions) Kinetic Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 963.5 $ — $ — $ — $ 963.5 Voice-only 120.5 — — — 120.5 Video and miscellaneous 44.3 — — — 44.3 Core (a) — 1,349.1 — — 1,349.1 Strategic (b) — 155.1 — — 155.1 Legacy (c) — 608.6 — — 608.6 Small business 326.1 — — — 326.1 Wholesale (d) 226.7 — 299.0 — 525.7 Switched access (e) 28.4 — 34.9 — 63.3 Consumer CLEC (f) — — — 170.4 170.4 Other (g) — 590.2 — — 590.2 Service revenues from contracts with customers 1,709.5 2,703.0 333.9 170.4 4,916.8 Product and fiber sales 26.5 48.9 — 0.5 75.9 Total revenue from contracts with customers 1,736.0 2,751.9 333.9 170.9 4,992.7 Other service revenues (h) 404.5 265.0 50.9 — 720.4 Total revenues and sales $ 2,140.5 $ 3,016.9 $ 384.8 $ 170.9 $ 5,713.1 (a) Core revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance, and managed services. (b) Strategic revenues consist of Software Defined Wide Area Network (“SD-WAN”), Unified Communications as a Service (“UCaaS”), OfficeSuite©, and associated network access products and services. (c) Legacy revenues consist of Time Division Multiplexing (“TDM”) voice and data services. (d) Wholesale revenues primarily include revenues from providing special access circuits, fiber connections, data transport and wireless backhaul services. (e) Switched access revenues include usage sensitive revenues from long-distance companies and other carriers for access to our network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for use of our network facilities. (f) 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. 10. 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 $53.8 million at December 31, 2019, of which $34.9 million and $18.9 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 $41.2 million and $42.0 million for the years ended December 31, 2019 and 2018, respectively. There was no impairment loss recognized for the years ended December 31, 2019 and 2018, related to deferred contract costs. |
Employee Benefit Plans and Post
Employee Benefit Plans and Postretirement Benefits: | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans and Postretirement Benefits | 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 expense (income) (including provision for executive retirement agreements) and postretirement benefits expense were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (Millions) 2019 2018 2017 2019 2018 2017 Benefits earned during the year (a) $ 3.0 $ 3.5 $ 8.1 $ — $ — $ — Interest cost on benefit obligation (b) 43.8 43.1 46.3 0.8 0.8 1.1 Net actuarial loss (b) 6.7 14.9 10.5 — — — Amortization of net actuarial loss (b) — — — — 0.2 0.1 Amortization of prior service credit (b) (1.0 ) (4.8 ) (0.4 ) (0.3 ) (0.3 ) (0.3 ) Plan curtailments (b) — (2.7 ) — (0.1 ) — — Expected return on plan assets (b) (49.5 ) (55.0 ) (54.4 ) — — — Net periodic benefit expense (income) $ 3.0 $ (1.0 ) $ 10.1 $ 0.4 $ 0.7 $ 0.9 (a) Included in cost of services and selling, general and administrative expense. (b) Included in other expense, net. During 2018, we amended the qualified defined benefit pension plan for certain eligible bargaining participants, the effects of which (i) froze benefit accruals upon reaching 30 years of service, (ii) provided for an unreduced early retirement benefit for participants with 30 years of service and (iii) added a lump-sum payment option. Changes to these benefit provisions required remeasurement of the pension plan’s funded status as of June 30, 2018 based on updated census data and actuarial assumptions, including the discount rate, which increased from 3.68 percent to 4.31 percent , and fair value of plan assets. As a result of the remeasurement, we recognized a curtailment gain of $2.7 million , prior service credits of $2.8 million and a net actuarial gain of $5.6 million . 11. Employee Benefit Plans and Postretirement Benefits, Continued: In determining our annual postretirement benefits cost, we amortize unrecognized actuarial gains and losses exceeding 10.0 percent of the projected benefit obligation over the lesser of 10 years or the average remaining service life of active employees or life expectancy of inactive participants. We do not amortize unrecognized actuarial gains and losses below the 10.0 percent corridor. A summary of plan assets, projected benefit obligation and funded status of the plans (including executive retirement agreements) were as follows at December 31: Pension Benefits Postretirement Benefits (Millions) 2019 2018 2019 2018 Fair value of plan assets at beginning of year $ 740.9 $ 841.4 $ 0.4 $ 0.4 Actual return on plan assets 163.8 (41.1 ) — — Employer contributions (a) 15.9 18.5 0.8 1.3 Participant contributions — — 2.7 2.8 Benefits paid (b) (66.6 ) (77.9 ) (3.5 ) (4.1 ) Settlements — — — — Fair value of plan assets at end of year $ 854.0 $ 740.9 $ 0.4 $ 0.4 Projected benefit obligation at beginning of year $ 1,043.0 $ 1,157.9 $ 19.7 $ 27.4 Interest cost on projected benefit obligations 43.8 43.1 0.8 0.8 Service cost 4.5 6.2 — — Participant contributions — — 2.7 2.8 Plan amendments — (2.8 ) (0.3 ) — Actuarial (gain) loss 121.0 (80.8 ) 2.5 (7.2 ) Benefits paid (b) (66.6 ) (77.9 ) (3.5 ) (4.1 ) Curtailments — (2.7 ) — — Projected benefit obligation at end of year $ 1,145.7 $ 1,043.0 $ 21.9 $ 19.7 Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: Current liabilities $ (53.7 ) $ (16.0 ) $ (1.3 ) $ (1.3 ) Noncurrent liabilities (238.0 ) (286.1 ) (20.2 ) (18.0 ) Funded status recognized in the consolidated balance sheets $ (291.7 ) $ (302.1 ) $ (21.5 ) $ (19.3 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss (gain) $ — $ — $ (1.0 ) $ 1.5 Prior service credits 7.2 8.2 0.8 0.9 Net amount recognized in accumulated other comprehensive income $ 7.2 $ 8.2 $ (0.2 ) $ 2.4 (a) During 2019, we made contributions totaling $15.2 million to the qualified pension plan to satisfy our 2019 and remaining 2018 funding requirements using available cash on hand. We also contributed $0.8 million to the postretirement plan. (b) Pension benefits paid from Windstream’s assets totaled $0.8 million in both 2019 and 2018 . All postretirement benefits in both years were paid from Windstream’s general corporate assets in both years. Significant changes in the pension projected benefit obligation for the year ended 2019 include an actuarial loss of $109.0 million attributable to the change in discount rate from 4.34 percent to 3.37 percent and an actuarial loss of $3.0 million attributable to other assumption changes, including the update to the lump sum conversion basis and the update to the base mortality table and generational mortality projection scale to reflect the most recently published tables. 11. Employee Benefit Plans and Postretirement Benefits, Continued: Significant changes in the postretirement projected benefit obligation for 2019 included an actuarial loss of $2.5 million attributable to the change in discount rate from 4.38 percent to 3.37 percent , an actuarial loss of $0.5 million attributable to other assumption changes, including updates to per capita claims cost and medical trend rates, and updates to the base mortality tables and generational mortality projection scale to reflect the most recently published tables and scales, an actuarial gain of $0.4 million attributable to changes in plan provisions for various participants and an actuarial gain of $0.3 million due to plan experience. The accumulated benefit obligation of our pension plan and executive retirement agreements was $1,133.1 million , $1,033.2 million and $1,141.7 million at December 31, 2019 , 2018 and 2017 , respectively. Assumptions – Actuarial assumptions used to calculate pension and postretirement benefits expense (income) were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (Millions) 2019 2018 2017 2019 2018 2017 Discount rate 4.34 % 4.00 % 4.19 % 4.38 % 3.74 % 4.26 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % 2.00 % — % — % — % Actuarial assumptions used to calculate the benefit obligations were as follows at December 31: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Discount rate 3.37 % 4.34 % 3.37 % 4.38 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % — % — % In developing the expected long-term rate of return assumption, we considered the plan’s historical rate of return, as well as input from our investment advisors. Projected returns on qualified pension plan assets were based on broad equity and bond indices and include a targeted asset allocation of 31.0 percent to equities, 49.0 percent to fixed income securities, and 20.0 percent to alternative investments, with an aggregate expected long-term rate of return of approximately 7.0 percent . Information regarding the healthcare cost trend rate was as follows for the years ended December 31: 2019 2018 Healthcare cost trend rate assumed for next year 7.00 % 6.25 % Rate that the cost trend ultimately declines to 5.00 % 5.00 % Year that the rate reaches the terminal rate 2028 2024 Plan Assets – Our pension plan assets are allocated to asset categories based on the specific strategy employed by the asset’s investment manager. The asset allocation for our pension plan by asset category was as follows for the years ended December 31: Target Allocation Percentage of Plan Assets Asset Category 2020 2019 2018 Equity securities 23.7% - 38.7% 32.3 % 24.4 % Fixed income securities 32.6% - 62.6% 46.8 % 53.5 % Alternative investments 12.3% - 27.3% 19.2 % 21.6 % Money market and other short-term interest bearing securities 0.0% - 6.5% 1.7 % 0.5 % 100.0 % 100.0 % 11. Employee Benefit Plans and Postretirement Benefits, Continued: We utilize a third party to assist in evaluating the allocation of the total assets in the pension trust, taking into consideration the pension liabilities and funded status of the pension plan. Assets are managed utilizing a liability driven investment approach, meaning that assets are managed within a risk management framework which addresses the need to generate incremental returns in the context of an appropriate level of risk, based on plan liability profiles and changes in funded status. The return objectives are to satisfy funding obligations when and as prescribed by law and to keep pace with the growth of the pension plan liabilities. Given the long time horizon for paying out benefits and our strong financial condition, the pension plan can accept an average level of risk relative to other similar plans. The liquidity needs of the pension plan are manageable given that lump sum payments are not available to most participants. Equity securities include stocks of both large and small capitalization domestic and international companies. Equity securities are expected to provide both diversification and long-term real asset growth. Domestic equities may include modest holdings of non-U.S. equities, purchased by domestic equity managers as long as they are traded in the U.S and denominated in U.S. dollars and both active and passive (index) investment strategies. International equities provide a broad exposure to return opportunities and investment characteristics associated with the world equity markets outside the U.S. The pension plan’s equity holdings are diversified by investment style, market capitalization, market or region, and economic sector. The pension plan is permitted to make investments in our common stock. Fixed income securities include securities issued by the U.S. Government and other governmental agencies, asset-backed securities and debt securities issued by domestic and international entities, and derivative instruments comprised of swaps, futures, forwards and options. These securities are expected to provide diversification benefits, and are expected to reduce asset volatility and pension funding volatility, and a stable source of income. Alternative investments may include hedge funds, commodities, both private and public real estate and private equity investments. In addition to attractive diversification benefits, the alternative investments are expected to provide both income and capital appreciation. Investments in money market and other short-term interest bearing securities are maintained to provide liquidity for benefit payments with protection of principal being the primary objective. The fair values of our pension plan assets were determined using the following inputs as of December 31, 2019 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund and interest bearing cash (a) $ 53.2 $ — $ 53.2 $ — Common collective and other trust funds (b) 282.1 — 282.1 — Government and agency securities (c) 170.9 — 170.9 — Common and preferred stocks - domestic (c) 21.1 21.1 — — Common and preferred stocks - international (c) 25.3 25.3 — — Real estate LLCs (d) 68.8 — — 68.8 Other investments (e) 2.6 0.8 1.8 — Investments included in fair value hierarchy 624.0 $ 47.2 $ 508.0 $ 68.8 Other investments measured at NAV: Pooled funds (f) 184.9 Private equity funds (g) 43.4 Total investments 852.3 Dividends and interest receivable 4.8 Pending trades and other liabilities (3.1 ) Total plan assets $ 854.0 11. Employee Benefit Plans and Postretirement Benefits, Continued: The fair values of our pension plan assets were determined using the following inputs as of December 31, 2018 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund and interest bearing cash (a) $ 41.0 $ — $ 41.0 $ — Common collective and other trust funds (b) 137.6 — 137.6 — Government and agency securities (c) 241.1 — 241.1 — Corporate bonds and asset backed securities (c) 21.6 — 21.6 — Common and preferred stocks - domestic (c) 21.8 21.8 — — Common and preferred stocks - international (c) 29.2 29.2 — — Mutual fund (c) 42.5 42.5 — — Real estate LLCs (d) 70.3 — — 70.3 Other investments (e) 1.2 0.4 — 0.8 Investments included in fair value hierarchy 606.3 $ 93.9 $ 441.3 $ 71.1 Other investments measured at NAV: Pooled funds (f) 96.5 Private equity funds (g) 40.0 Total investments 742.8 Dividends and interest receivable 1.0 Pending trades and other liabilities (2.9 ) Total plan assets $ 740.9 (a) Money market fund is valued based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. The carrying amount of interest bearing cash is estimated to approximate fair value due to the short-term nature of this investment. (b) Units in common collective and other trust funds are valued by reference to the funds' underlying assets and are based on the net asset value as reported by the fund manager on the last business day of the year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. (c) Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and mutual funds traded in active markets on securities exchanges are valued at their quoted market price on the last day of the year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. (d) This category consists of real estate properties contributed by Windstream to limited liability companies (“LLCs”) wholly- owned by the pension plan. The fair value of these properties is based on independent appraisals. (See also Note 7.) (e) Other investments consist of derivative financial instruments, a guaranteed annuity contract and investments in foreign currency. Derivative financial instruments are valued based on models that reflect the contractual terms of the instruments. Inputs include observable market information, such as benchmark yields, swap curves and interdealer broker quotes at the end of the year. The guaranteed annuity contract is reported at contract value which approximates fair value and is based on the value of the underlying contracts as determined by the insurance company. Investments in foreign currency are valued at their quoted market price on the last day of the year. 11. Employee Benefit Plans and Postretirement Benefits, Continued: (f) The pooled investment funds are valued based on the net asset value of the fund as determined by the fund manager on the last business day of the year, and is derived from the fair value of each underlying investment held by the pooled fund. These investments have not been classified within the fair value hierarchy. (g) Private equity funds consist of investments in limited partnerships and are valued based on the pension plan's capital account balance at year end as reported in the audited financial statements of the partnership. These investments have not been classified within the fair value hierarchy. The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value using significant unobservable inputs: (Millions) Real estate LLCs Guaranteed annuity contract Total Balance at December 31, 2017 $ 72.7 $ 0.8 $ 73.5 Unrealized (loss) gains (2.4 ) 0.1 (2.3 ) Purchases and sales, net — (0.1 ) (0.1 ) Balance at December 31, 2018 $ 70.3 $ 0.8 $ 71.1 Unrealized (loss) gains (1.5 ) 0.1 (1.4 ) Purchases and sales, net — (0.9 ) (0.9 ) Balance at December 31, 2019 $ 68.8 $ — $ 68.8 There were no transfers within the fair value hierarchy during the years ended December 31, 2019 and 2018. There have been no significant changes in the methodology used to value investments from prior year. The valuation methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the valuation methods are consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Estimated Future Employer Contributions and Benefit Payments – Estimated future employer contributions, benefit payments, including executive retirement agreements, are as follows as of December 31, 2019 : (Millions) Pension Benefits Postretirement Benefits Expected employer contributions in 2020 $ 53.7 $ 1.3 Expected benefit payments: 2020 $ 80.1 $ 1.3 2021 79.0 1.2 2022 77.5 1.2 2023 75.2 1.2 2024 74.1 1.1 2025-2029 345.6 6.1 For 2020, the expected employer contribution for pension benefits consists of $52.8 million to the qualified pension plan to satisfy our remaining 2019 and 2018 annual funding requirements and $0.9 million necessary to fund the expected benefit payments of our unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. We intend to fund these contributions using cash. 11. Employee Benefit Plans and Postretirement Benefits, Continued: Employee Savings 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 expense of $25.5 million , $22.0 million and $22.9 million in 2019 , 2018 and 2017 , respectively, 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. Our 2019 matching contribution will be funded in 2020 and made in cash. In 2019, we contributed $26.4 million in cash to the plan for the 2018 annual matching and other contributions. During 2018, we contributed 3.6 million shares of our common stock with a fair value of $28.3 million , as determined by the plan trustee, to the plan for the 2017 annual matching and other contributions. During 2017, we contributed 0.6 million shares of our common stock with a value of approximately $22.7 million , as determined by the plan trustee, and $0.6 million |
Share-Based Compensation Plans_
Share-Based Compensation Plans: | 12 Months Ended |
Dec. 31, 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 December 31, 2019 , the Incentive Plan had remaining capacity of 2.3 million awards. Stock Options – There were no stock options granted during the year ended December 31, 2019. In 2018, our Board of Directors granted 1.1 million stock options to certain officers, executives and other key management employees. Under terms of the grant award, the stock options vest ratably over a three-year period from the date of grant and the exercise price of the option equaled the market value of our common stock on the date of grant. The maximum term for each option granted is 10 years . We measure the cost of employee stock options based on the grant-date fair value and recognize that cost on a straight-line basis over the period in which a recipient is required to provide services in exchange for the options, which is equal to the vesting period. Our practice is to issue new shares of common stock upon the exercise of stock options. The weighted average fair value of stock options granted during the year ended December 31, 2018 was $4.25 per share using the Black-Scholes option-pricing model based on the following weighted average assumptions: expected life of 6.1 years , expected volatility of 58.7 percent and risk-free interest rate of 2.6 percent . We had 0.9 million and 1.0 million of stock option awards outstanding as of December 31, 2019 and 2018, 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. At December 31, 2019, total unamortized compensation cost for non-vested stock option awards amounted to $1.2 million and is expected to be recognized over a weighted average period of 1.2 years . Share-based compensation expense for stock options was $1.1 million in 2019 and $1.0 million in 2018. 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. There were no service-based restricted stock units granted in 2019. In February 2019, we granted 0.7 million performance-based restricted stock units with a grant date fair value of $2.4 million that were scheduled to vest three years from the date of grant. These awards were subsequently canceled and replaced with cash-based awards during the second quarter of 2019. There were no performance-based restricted units granted in 2018. In 2017, Windstream granted 0.7 million performance-based restricted stock units with a grant date fair value of $26.1 million that vest ratably over the remaining service period (up to 3 years) or vest contingently at the end of the performance 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. 12. Share-Based Compensation Plans, Continued: 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 . The vesting periods and grant date fair values for restricted stock and restricted stock units issued, including the EarthLink replacement awards issued in 2017, were as follows for the years ended December 31: (Number of shares in thousands) 2019 2018 2017 Service-based restricted stock and restricted units: Vest variably over remaining service period, up to three-years — — 571.7 Vest ratably over a three-year service period — — 490.3 Vest one year from date of grant, service based - granted to non-employee directors — 109.6 41.4 Vest immediately on date of grant, service based - granted to non-employee directors — 41.1 — Vest three years from date of grant, service based — — 6.8 Total granted — 150.7 1,110.2 Grant date fair value (Dollars in millions) $ — $ 1.1 $ 33.3 Restricted stock and restricted unit activity for the year ended December 31, 2019 was as follows: Service-Based Performance-Based (Thousands) Underlying Number of Shares Weighted Average Fair Value Per Share (Thousands) Underlying Number of Shares Weighted Average Fair Value Per Share Non-vested at December 31, 2018 522.1 $ 23.34 325.4 $ 28.35 Granted — $ — 698.5 $ 3.40 Vested (143.5 ) $ 32.57 (160.8 ) $ 28.91 Forfeited (19.0 ) $ 34.83 (740.1 ) $ 4.77 Non-vested at December 31, 2019 359.6 $ 19.05 123.0 $ 27.80 At December 31, 2019 , unrecognized compensation expense for restricted stock and restricted stock units totaled $0.6 million and will be recognized in 2020. The total fair value of shares vested was $9.3 million , $22.7 million and $40.0 million during 2019 , 2018 and 2017 , respectively. Share-based compensation expense recognized for restricted stock and restricted stock units was $1.6 million , $10.3 million and $32.5 million for 2019 , 2018 and 2017 , respectively. In addition to including amounts related to restricted stock and restricted units, share-based compensation expense presented in the accompanying consolidated statements of cash flow also includes the matching contribution to the employee savings plan for which payments to eligible participants were made in Windstream Holdings common stock. A summary of share-based compensation expense was as follows for the years ended December 31: (Millions) 2019 2018 2017 Restricted stock, restricted units and stock options $ 2.7 $ 11.3 $ 32.5 Employee savings plan (See Note 11) — — 22.9 Share-based compensation expense $ 2.7 $ 11.3 $ 55.4 |
Merger, Integration and Other C
Merger, Integration and Other Costs and Restructuring Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [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. In 2017, we completed a network optimization project designed to consolidate traffic onto network facilities operated by us and reduce the usage of other carriers’ networks in our acquired CLEC markets. In undertaking this initiative, we incurred exit costs to migrate traffic to existing lower cost circuits and to terminate existing contracts prior to their expiration. 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 2019 and 2018, we completed separate restructurings of our workforce to improve our overall cost structure and gain operational efficiencies. In undertaking these efforts, we eliminated approximately 730 positions and incurred severance and employee benefit costs of $28.5 million in 2019, and we eliminated approximately 800 positions and incurred severance and employee benefit costs of $24.6 million in 2018. Restructuring charges for 2018 also included lease termination costs of $20.4 million due to vacating certain facilities. In 2017, we completed various restructurings of our workforce to streamline our operations and better align our engineering, finance and information technology support functions. In completing these initiatives, we eliminated approximately 1,100 employees and incurred total severance and employee benefit costs of $35.0 million . Restructuring charges for 2017 also included lease termination costs associated with vacated facilities and consulting fees totaling $8.0 million . The following is a summary of the merger, integration and other costs and restructuring charges recorded for the years ended December 31: (Millions) 2019 2018 2017 Merger, integration and other costs: Costs related to merger with EarthLink (a) $ 6.8 $ 15.5 $ 104.1 Costs related to merger with Broadview (b) — 4.1 14.3 Costs related to acquisitions of MASS and ATC — 2.5 — Legal fees related to Uniti spin-off litigation (see Note 17) 0.3 7.2 7.5 Network optimization and contract termination costs — — 8.5 IT conversion, consulting and other costs 1.2 2.6 3.0 Total merger, integration and other costs 8.3 31.9 137.4 Restructuring charges 28.5 45.0 43.0 Total merger, integration and other costs and restructuring charges $ 36.8 $ 76.9 $ 180.4 (a) In 2019 and 2018, these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $5.0 million and $6.9 million , respectively, and other miscellaneous expenses of $1.8 million and $3.7 million , respectively. In 2018, we also incurred contract and lease termination costs of $4.9 million as a result of vacating certain facilities related to the acquired operations of EarthLink. In 2017, these amounts include investment banking, legal and other consulting services of $24.0 million , severance and employee benefit costs for EarthLink employees terminated after the acquisition of $39.0 million , share-based compensation expense of $10.1 million attributable to the accelerated vesting of assumed equity awards for terminated EarthLink employees, rebranding and marketing costs of $5.3 million and other miscellaneous expenses of $3.2 million . We also incurred contract and lease termination costs of $22.5 million as a result of vacating certain facilities related to the acquired operations of EarthLink. (b) In 2018, these amounts include severance and employee benefit costs for Broadview employees terminated after the acquisition of $1.8 million . We also incurred contract and lease termination costs of $2.3 million as a result of vacating certain facilities related to the acquired operations of Broadview. 13. Merger, Integration and Other Costs and Restructuring Charges, Continued: In 2017, these amounts include investment banking, legal and other consulting fees of $4.5 million and severance and employee benefit costs for Broadview employees terminated after the acquisition of $4.7 million . We also incurred contract and lease termination costs of $3.7 million as a result of vacating certain facilities related to the acquired operations of Broadview. After giving consideration to tax benefits on deductible items, merger, integration and other costs and restructuring charges decreased net income $27.5 million , $56.4 million and $113.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following is a summary of the activity related to the liabilities associated with merger, integration and other costs and restructuring charges at December 31: Restructuring Charges (Millions) Merger, Integration and Other Charges Severance and Benefit Costs Lease Termination Costs Total Balance at December 31, 2017 $ 10.3 $ 5.0 $ 4.2 $ 19.5 Expenses incurred in period 31.9 24.6 20.4 76.9 Cash outlays during the period (38.2 ) (17.0 ) (9.3 ) (64.5 ) 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 8.3 28.5 — 36.8 Cash outlays during the period (8.3 ) (33.0 ) — (41.3 ) Balance at December 31, 2019 $ — $ 8.1 $ — $ 8.1 Payments of these liabilities will be funded through operating cash flows. |
Gain on Sale of Consumer CLEC B
Gain on Sale of Consumer CLEC Business | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain on Sale of Consumer CLEC Business | Gain on Sale of Consumer CLEC Business: On December 31, 2018, Windstream Services completed the sale of substantially all of its consumer competitive local exchange carrier (“CLEC”) business to an affiliate of Trive Capital Fund III LLP and nQue Technologies for $320.9 million in cash, net of a working capital adjustment, and recorded a pre-tax gain of $145.4 million . The Consumer CLEC operations sold consisted solely of the former EarthLink Holdings Corp (“EarthLink”) consumer business that we acquired in February 2017 (see Note 4). The sold operations comprised approximately 3.0 percent of our total consolidated revenues and sales for 2018 and less than 2.0 percent of our total consolidated assets at the date of disposition. 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 accordingly, did not qualify for reporting as a discontinued operation. Excluding the effects of the gain, the consumer CLEC business generated pre-tax income of $92.5 million and $87.3 million in 2018 and 2017, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income: Accumulated other comprehensive income balances, net of tax, were as follows for the years ended December 31: (Millions) 2019 2018 2017 Pension and postretirement plans $ 5.0 $ 7.7 $ 4.0 Unrealized holding gains (losses) on interest rate swaps Designated portion — 29.7 20.7 De-designated portion 17.6 (1.8 ) (3.3 ) Accumulated other comprehensive income $ 22.6 $ 35.6 $ 21.4 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Net Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2018 $ 27.9 $ 7.7 $ 35.6 Prior service credit arising during the period — 0.3 0.3 Other comprehensive income before reclassifications (2.4 ) (2.0 ) (4.4 ) Amounts reclassified from accumulated other comprehensive income (a) (7.9 ) (1.0 ) (8.9 ) Balance at December 31, 2019 $ 17.6 $ 5.0 $ 22.6 (a) See separate table below for details about these reclassifications. Reclassifications out of accumulated other comprehensive income were as follows for the years ended December 31: Details about Accumulated Other Comprehensive Income Components (Millions) Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations 2019 2018 2017 (Gains) losses on interest rate swaps: Amortization of net unrealized (gains) losses on de-designated interest rate swaps $ (10.6 ) $ 3.0 $ 5.3 Interest expense (10.6 ) 3.0 5.3 Loss before income taxes 2.7 (0.7 ) (2.0 ) Income tax benefit (expense) (7.9 ) 2.3 3.3 Net loss Pension and postretirement plans: Plan curtailments 0.1 — — (a) Amortization of net actuarial loss — 0.2 0.1 (a) Amortization of prior service credits (1.3 ) (5.1 ) (0.7 ) (a) (1.2 ) (4.9 ) (0.6 ) Loss before income taxes 0.2 1.3 0.1 Income tax benefit (expense) (1.0 ) (3.6 ) (0.5 ) Net loss Total reclassifications for the period, net of tax $ (8.9 ) $ (1.3 ) $ 2.8 Net loss (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit (income) expense (See Note 11). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Income tax benefit (expense) was as follows for the years ended December 31: (Millions) 2019 2018 2017 Current: Federal $ (0.1 ) $ (0.3 ) $ 0.3 State 0.5 (7.6 ) (4.9 ) 0.4 (7.9 ) (4.6 ) Deferred: Federal 254.6 (356.1 ) 328.0 State 65.0 (85.1 ) 84.7 319.6 (441.2 ) 412.7 Income tax benefit (expense) $ 320.0 $ (449.1 ) $ 408.1 The 2019 deferred income tax benefit includes the impact of recording a goodwill impairment charge. The 2018 deferred income tax expense includes the impact of recording additional valuation allowance. There was also a goodwill impairment charge recorded in 2017 that resulted in the recognition of a deferred income tax benefit. The remainder of deferred income tax benefit (expense) for all three years primarily resulted from temporary differences between depreciation and amortization expense for income tax purposes and depreciation and amortization expense recorded in the accompanying consolidated financial statements. Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state income taxes, were as follows for the years ended December 31: 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % Increase (decrease) State income taxes, net of federal benefit 4.2 3.9 3.6 Adjust deferred taxes for state net operating loss carryforward — 0.1 — Transaction costs — — (0.1 ) Valuation allowance (1.7 ) (183.1 ) (0.1 ) Research and development credit — (1.0 ) 0.1 Share-based compensation — (1.0 ) (0.1 ) Debt exchange (0.2 ) 6.8 (6.1 ) 2017 federal tax reform — — (7.6 ) Goodwill impairment (13.2 ) — (8.4 ) Sale of Consumer CLEC business — (9.3 ) — Reorganization items, net (0.8 ) — — Other items, net (0.1 ) (1.4 ) (0.1 ) Effective income tax rate 9.2 % (164.0 )% 16.2 % With regard to the debt exchange that occurred in 2017, a portion was treated as cancellation of debt (“COD”) income for tax purposes and resulted in non-deductible original issue discount (“OID”). We also recorded the impact of the portion of the 2017 goodwill impairment that was non-deductible. In 2018, we assessed our valuation allowance after considering the adverse court ruling and the resulting acceleration of all of our long-term debt obligations and payments due under the contractual arrangement with Uniti and subsequent filing of the Chapter 11 Cases. We determined, based upon all available evidence, that a full valuation allowance was necessary, exclusive of a portion of deferred tax liabilities primarily associated with indefinite-lived intangible assets. Additionally, we recorded incremental tax expense from the sale of the consumer CLEC business. In conjunction with the 2018 debt exchange, there was also a non-taxable gain on extinguishment of debt for financial statement purposes, partially offset by COD income for tax purposes. In 2019, we recorded the impact of the portion of the goodwill impairment that was non-deductible. 16. Income Taxes, Continued: The significant components of the net deferred income tax liability (asset) were as follows at December 31: (Millions) 2019 2018 Property, plant and equipment $ 422.6 $ 825.5 Goodwill and other intangible assets 215.6 477.7 Operating loss and credit carryforward (548.0 ) (576.8 ) Postretirement and other employee benefits (77.4 ) (79.6 ) Unrealized holding loss and interest rate swaps (1.0 ) 7.2 Deferred compensation (2.2 ) (2.3 ) Bad debt (21.4 ) (15.1 ) Long-term lease obligations (1,033.8 ) (1,170.9 ) Operating lease right-of-use assets 1,008.0 — Deferred debt costs (36.8 ) (19.2 ) Share-based compensation (4.5 ) (6.8 ) Interest expense (30.4 ) — Other, net (7.3 ) (20.4 ) (116.6 ) (580.7 ) Valuation allowance 189.2 685.0 Less amounts reclassified to liabilities subject to compromise (72.6 ) — Deferred income taxes, net $ — $ 104.3 Deferred tax assets $ (1,813.7 ) $ (1,954.0 ) Deferred tax liabilities 1,886.3 2,058.3 Less amounts reclassified to liabilities subject to compromise (72.6 ) — 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 release of valuation allowance of approximately $541.5 million , recorded as an adjustment to equity. Changes in valuation allowance not associated with the adoption of ASU 2016-02 were recorded through income tax expense. As of December 31, 2019, we were in a net deferred tax liability position and recorded income tax benefit during 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 December 31, 2019 and 2018 , we had federal net operating loss carryforwards of approximately $1,807.9 million and $1,920.2 million , respectively. Net operating losses generated prior to 2018 expire in varying amounts from 2020 through 2037. Under the 2017 Tax Cuts and Jobs Act, federal net operating losses generated in 2018 and future years can be carried forward indefinitely. The loss carryforwards at December 31, 2019 and 2018 were primarily losses acquired in conjunction with our acquisitions including PAETEC, EarthLink and Broadview. The 2019 decrease is primarily associated with estimated utilization for the year. At December 31, 2019 and 2018 , we had state net operating loss carryforwards of approximately $2,471.8 million and $2,456.6 million , respectively, which expire annually in varying amounts from 2020 through 2039. The loss carryforwards were primarily losses acquired in conjunction with our acquisitions including PAETEC and EarthLink. 16. Income Taxes, Continued: As previously noted, we establish valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. Therefore, as of December 31, 2019 and 2018 we recorded valuation allowances of approximately $162.5 million and $541.0 million , respectively, related to federal and state loss carryforwards which are expected to expire before they are utilized. The amount of federal tax credit carryforward at December 31, 2019 and 2018 , was approximately $21.8 million , which expire in varying amounts from 2031 through 2036. The amount of state tax credit carryforward at December 31, 2019 and 2018 , was approximately $14.9 million and $17.7 million , respectively, which expire in varying amounts from 2020 through 2027. Due to the expected lack of sufficient future taxable income based on the scheduled reversal of existing taxable temporary differences, we believe that it is more likely than not that the benefit from some of the federal and state tax credit carryforwards will not be realized prior to their expiration. Therefore, as of December 31, 2019 and 2018, we recorded valuation allowances of approximately $26.7 million and $35.8 million , respectively, to reduce our deferred tax assets to amounts expected to be realized. We account for uncertainty in taxes in accordance with authoritative guidance. A reconciliation of the unrecognized tax benefits is as follows: (Millions) 2019 2018 2017 Beginning balance $ 8.0 $ 8.7 $ 8.8 Additions based on EarthLink acquisition — — 2.5 Additions based on tax positions related to current year — — 0.7 Reductions for tax positions of prior years — (0.7 ) (1.2 ) Settlements — — (2.1 ) Ending balance $ 8.0 $ 8.0 $ 8.7 We do not expect or anticipate a significant increase or decrease over the next twelve months in the unrecognized tax benefits reported above. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate are $7.6 million , $7.6 million and $8.3 million (net of indirect benefits) for the years ended December 31, 2019 , 2018 and 2017 , respectively. We file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2016. However, due to acquired net operating losses, tax authorities have the ability to adjust those net operating losses related to closed years. We have identified Arkansas, California, Florida, Georgia, Illinois, Iowa, Kentucky, Nebraska, New York, North Carolina, Pennsylvania, Texas and Virginia as “major” state taxing jurisdictions. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2019 , 2018 and 2017 , we recognized approximately $0.2 million , $0.1 million , and $0.2 million in interest and penalties, respectively. Furthermore, we had approximately $0.5 million , $0.3 million , and $0.3 million of interest and penalties accrued as of December 31, 2019 , 2018 and 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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. 17. Commitments and Contingencies, Continued: 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. 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. 17. Commitments and Contingencies, Continued: 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. Notwithstanding the foregoing, any litigation pending against us and any claims that could be asserted against us that arose prior to the Petition Date are automatically stayed as a result of the commencement of the Chapter 11 Cases pursuant to Section 362(a) of the Bankruptcy Code, subject to certain statutory exceptions. These matters will be subject to resolution in accordance with the Bankruptcy Code and applicable orders of the Bankruptcy Court. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 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. 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. 18. Segment Information, Continued: • 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. 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 and incremental capital expenditures incurred in 2018 and 2017 related to our acquisitions of EarthLink and Broadview 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. 18. Segment Information, Continued: The following table summarizes our segment results for the years ended December 31: (Millions) 2019 2018 2017 Kinetic: Revenues and sales $ 2,074.7 $ 2,140.5 $ 2,258.5 Costs and expenses 885.6 884.4 937.2 Segment income 1,189.1 1,256.1 1,321.3 Enterprise: Revenues and sales 2,678.5 3,016.9 3,032.9 Costs and expenses 2,159.1 2,454.9 2,497.0 Segment income 519.4 562.0 535.9 Wholesale: Revenues and sales 362.2 384.8 399.0 Costs and expenses 101.4 111.1 111.3 Segment income 260.8 273.7 287.7 CLEC Consumer: Revenues and sales — 170.9 162.5 Costs and expenses — 78.4 81.8 Segment income — 92.5 80.7 Total segment revenues and sales 5,115.4 5,713.1 5,852.9 Total segment costs and expenses 3,146.1 3,528.8 3,627.3 Total segment income $ 1,969.3 $ 2,184.3 $ 2,225.6 Capital expenditures by segment were as follows as of December 31: (Millions) 2019 2018 2017 Kinetic $ 454.8 $ 369.8 $ 391.8 Enterprise 152.5 187.6 199.7 Wholesale 27.3 31.3 32.4 Corporate/shared (a) 243.9 231.5 284.7 Total $ 878.5 $ 820.2 $ 908.6 (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. For 2018 and 2017, these amounts include incremental capital spend related to our 2017 acquisitions of EarthLink and Broadview of $37.6 million and $34.5 million , respectively. Corporate/shared capital expenditures for 2017 include $49.9 million related to Project Excel, an incremental capital program completed in mid-2017, which upgraded our broadband network. 18. Segment Information, Continued: The following table reconciles segment income to consolidated net loss income for the years ended December 31: (Millions) 2019 2018 2017 Total segment income $ 1,969.3 $ 2,184.3 $ 2,225.6 Depreciation and amortization (1,068.2 ) (1,526.7 ) (1,470.0 ) Goodwill impairment (2,712.3 ) — (1,840.8 ) Merger, integration and other costs (8.3 ) (31.9 ) (137.4 ) Restructuring charges (28.5 ) (45.0 ) (43.0 ) Straight-line expense under contractual arrangement with Uniti (675.2 ) — — Other unassigned operating expenses (a) (354.3 ) (284.1 ) (325.0 ) Other expense, net (7.8 ) (4.9 ) (2.3 ) Gain on sale of Consumer CLEC business — 145.4 — Net gain (loss) on early extinguishment of debt — 190.3 (56.4 ) Reorganization items, net (260.6 ) — — Interest expense (331.9 ) (901.3 ) (875.4 ) Income tax benefit (expense) 320.0 (449.1 ) 408.1 Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) (a) Included in this amount for 2019 were spend commitment penalties incurred under certain carrier discount plans of $102.5 million and a reserve of $19.7 million for a funding denial from Universal Service Administrative Company pursuant to funding for the years 2012 to 2017 related to a large customer participating in the Universal Service Rural Healthcare Telecommunications Program. |
Quarterly Financial Information
Quarterly Financial Information – (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information – (Unaudited) | Quarterly Financial Information – (Unaudited): For the Year Ended December 31, 2019 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,115.4 $ 1,238.2 $ 1,270.1 $ 1,286.5 $ 1,320.6 Operating loss $ (2,877.5 ) $ (38.8 ) $ (34.5 ) $ (422.9 ) $ (2,381.3 ) Net loss $ (3,157.8 ) $ (187.9 ) $ (115.5 ) $ (544.1 ) $ (2,310.3 ) Basic and diluted loss per share: (a) Net loss ($74.06 ) ($4.41 ) ($2.71 ) ($12.76 ) ($54.26 ) (a) Quarterly loss per share amounts may not add to full-year loss per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. Significant items affecting our historical operating trends in the quarterly periods of 2019 were as follows: • Operating loss in each of the quarters of 2019 reflected incremental expense of $168.8 million recognized each quarter, partially offset by lower depreciation expense of $83.4 million in the first and second quarters of 2019, $67.3 million in the third quarter of 2019 and $64.1 million in the fourth quarter of 2019. The incremental changes were attributable to our contractual arrangement with Uniti and resulted from the change in the accounting for this arrangement from a financing to an operating lease effective January 1, 2019 (see Note 2). • As discussed in Note 5, we recognized goodwill impairment charges of $2,339.0 million and $373.3 million in the first and second quarters of 2019. • Net loss in the first, second, third and fourth quarters of 2019 included reorganization items, net of $104.9 million , $85.4 million , $29.2 million and $41.1 million , respectively, incurred as a result of the filing of the Chapter 11 Cases (see Note 3). 19. Quarterly Financial Information – (Unaudited), Continued: • Net loss in the first, second, third and fourth quarters of 2019 reflected lower interest expense of $113.7 million , $112.4 million , $111.1 million and $109.7 million , respectively, attributable to our contractual arrangement with Uniti and resulted from the change in the accounting for this arrangement from a financing to an operating lease effective January 1, 2019 (see Note 2). Interest expense also declined in each of the quarters of 2019 as a result of no longer incurring interest expense on Windstream Services senior secured second lien notes and unsecured senior notes subsequent to the filing of the Chapter 11 Cases on February 25, 2019 (see Note 3). For the Year Ended December 31, 2018 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,713.1 $ 1,393.8 $ 1,420.6 $ 1,444.4 $ 1,454.3 Operating income $ 296.6 $ 63.7 $ 75.6 $ 88.3 $ 69.0 Net (loss) income $ (723.0 ) $ (549.2 ) $ 41.3 $ (93.7 ) $ (121.4 ) Basic and diluted (loss) earnings per share: (a) Net (loss) income ($17.72 ) ($12.92 ) $.97 ($2.30 ) ($3.25 ) (a) Quarterly (loss) income per share amounts may not add to full-year (loss) earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. Significant items affecting our historical operating trends in the quarterly periods of 2018 were as follows: • As discussed in Note 11, we recognize actuarial gains and losses for pension benefits as a component of net periodic benefit expense (income) in the fourth quarter of each year, unless an earlier measurement date is required. Results of operations for the fourth quarter of 2018 include net pre-tax actuarial losses related to pension benefits of $14.9 million . • Net loss in the fourth quarter of 2018 includes a pre-tax gain of $145.4 million from the sale of our Consumer CLEC business (see Note 14). • As of December 31, 2018, Windstream recorded a full valuation allowance, exclusive of a portion of deferred tax liabilities primarily associated with indefinite-lived intangible assets, due to the acceleration of all long-term debt obligations following an adverse court ruling and subsequent filing of the Chapter 11 Cases, and Windstream’s assessment that it was more likely than not that our deferred tax assets would not be realized. See Notes 6, 16 and 17 for additional information regarding the acceleration of long-term debt obligations, the court ruling, filing of the Chapter 11 Cases, and the related effects on income taxes. • Net income in the third quarter of 2018 primarily reflects a pre-tax gain of $190.3 million from the early extinguishment of long-term debt in connection with the completion of two debt exchange transactions (see Note 6). • Operating income in each of the quarters of 2018 reflected reductions in merger, integration and other charges when compared to the same periods a year ago. The decreases were primarily attributable to our 2017 mergers with Broadview and EarthLink. Merger, integration and other charges decreased $28.5 million , $24.7 million , $2.3 million and $50.0 million in the fourth, third, second and first quarters of 2018, respectively. See Note 13 for additional information. • Operating income in each of the quarters of 2018 was adversely impacted by increases in depreciation and amortization expense when compared to the same periods a year ago. The increases were primarily attributable to the mergers with Broadview and EarthLink and current year additions to property, plant and equipment, reflecting our continued investment in our broadband network. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events: | Subsequent Events: Additional Debtor-In-Possession Borrowings In March 2020, Windstream Services borrowed $400 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 3, 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 3, 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 3, 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. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of the Registrant (Parent Company) | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the years ended December 31, (Millions) 2019 2018 2017 Operating revenues: Leasing income from subsidiaries $ 659.1 $ 655.7 $ 653.5 Total operating revenues 659.1 655.7 653.5 Costs and expenses: Cost of services 675.2 — — Selling, general and administrative 2.2 1.8 1.9 Depreciation expense — 344.0 336.2 Total costs and expenses 677.4 345.8 338.1 Operating (loss) income (18.3 ) 309.9 315.4 Interest expense on long-term lease obligation with Uniti — (467.0 ) (484.9 ) Loss before income taxes and equity in subsidiaries (18.3 ) (157.1 ) (169.5 ) Income tax benefit (expense) 4.7 (799.9 ) (374.7 ) Loss before equity in subsidiaries (13.6 ) (957.0 ) (544.2 ) Equity (losses) earnings from subsidiaries (3,144.2 ) 234.0 (1,572.4 ) Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) Comprehensive loss $ (3,170.8 ) $ (714.2 ) $ (2,101.1 ) See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement to this Annual Report on Form 10-K BALANCE SHEETS (Millions, except par value) Assets 2019 2018 Current Assets: Distributions receivable from Windstream Services $ 0.7 $ 0.5 Total current assets 0.7 0.5 Investment and affiliate related balances — 1,383.9 Net property, plant and equipment — 1,267.1 Operating lease right-of-use asset 3,703.0 — Deferred income taxes 4.1 — Total Assets $ 3,707.8 $ 2,651.5 Liabilities and Shareholders’ Deficit Current liabilities: Accrued dividends and other $ 0.6 $ 0.5 Current portion of long-term lease obligation — 4,570.3 Total current liabilities 0.6 4,570.8 Advances/losses in excess of investment in subsidiaries 2,062.4 — Liabilities subject to compromise 3,719.2 — Total liabilities 5,782.2 4,570.8 Shareholders’ Deficit: Common stock, $0.0001 par value, 75.0 shares authorized, 42.9 and 36.5 shares issued and outstanding, respectively — — Additional paid-in capital 1,253.1 1,250.4 Accumulated other comprehensive income 22.6 35.6 Accumulated deficit (3,350.1 ) (3,205.3 ) Total shareholders’ deficit (2,074.4 ) (1,919.3 ) Total Liabilities and Shareholders’ Deficit $ 3,707.8 $ 2,651.5 See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement to this Annual Report on Form 10-K STATEMENTS OF CASH FLOWS For the years ended December 31, (Millions) 2019 2018 2017 Cash Provided from Operating Activities: Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) Adjustments to reconcile net loss to net cash provided from operations: Equity losses (earnings) from subsidiaries 3,144.2 (234.0 ) 1,572.4 Depreciation expense — 344.0 336.2 Non-cash portion of rent expense 16.1 — — Deferred income taxes (4.1 ) 800.1 376.4 Net cash (used in) provided from operating activities (1.6 ) 187.1 168.4 Cash Flows from Financing Activities: Distributions from Windstream Services 1.6 1.6 83.7 Dividends paid to shareholders — — (64.4 ) Contribution to Windstream Services — (12.2 ) (9.6 ) Proceeds from the issuance of stock — 12.2 9.6 Stock repurchases — — (19.0 ) Payments under long-term lease obligation — (188.7 ) (168.7 ) Net cash provided from (used in) financing activities 1.6 (187.1 ) (168.4 ) Change in cash and cash equivalents — — — Cash and Cash Equivalents: Beginning of period — — — End of period $ — $ — $ — See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement to this Annual Report on Form 10-K Background and Basis of Presentation: Notwithstanding the accounting treatment for the spin-off transaction as further discussed below, Windstream Holdings, Inc. (“Windstream Holdings”) has no material assets or operations other than its ownership in Windstream Services, LLC (“Windstream Services”) and its subsidiaries. Windstream Holdings owns a 100 percent interest in Windstream Services. On April 24, 2015, Windstream Holdings completed the spin-off of certain telecommunications network assets and other real estate, into an independent, publicly traded real estate investment trust (“REIT”), Uniti Group, Inc. (“Uniti”). Following the spin-off transaction, Windstream Holdings entered into a long-term triple-net master lease with Uniti to lease back the telecommunications network assets. As the master lease was entered into by Windstream Holdings for the direct benefit of Windstream Services and its subsidiaries, the effects of the spin-leaseback transaction have also been reflected in the standalone consolidated financial statements of Windstream Services (collectively referred to as the Uniti transactions). For periods prior to January 1, 2019, the contractual arrangement with Uniti was accounted for as financing due to prohibited continuing involvement, including Windstream Services or its subsidiaries, retaining bare legal title (but not beneficial ownership) to the various easements, permits and pole attachments related to the telecommunications network assets. As a result, the accompanying condensed parent company financial statements as of and for the years ended December 31, 2018 and 2017 included the telecommunications network assets and other real estate assets transferred to Uniti. As required, effective January 1, 2019, Windstream Holdings adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Upon adoption of ASU 2016-02, Windstream Holdings re-evaluated its contractual arrangement with Uniti and concluded that the arrangement should be accounted for prospectively as an operating lease. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer precluded the application of spin-leaseback accounting to the April 2015 spin-off of assets to Uniti by Windstream Services and the lease of those assets by Windstream Holdings. As a result, on January 1, 2019, Windstream Holdings recorded a cumulative effect adjustment of approximately $3.0 billion from de-recognizing the remaining net book value of assets transferred to Uniti of approximately $1.3 billion , recording a right-of-use asset of approximately $3.9 billion equaling the adjusted Uniti lease liability, which decreased by $0.7 billion , and recording a deferred tax liability of approximately $0.3 billion in accordance with the standard’s transition guidance. See Note 2 to the consolidated financial statements for additional information regarding the adoption of ASU 2016-02 and the change in accounting for the Uniti arrangement from a financing to an operating lease. Certain covenants within Windstream Services’ senior secured credit facility may restrict its ability to distribute funds to Windstream Holdings in the form of dividends, loans or advances. Accordingly, these condensed financial statements of Windstream Holdings have been presented on a “Parent Only” basis. Under this basis of presentation, Windstream Holdings’ investment in its consolidated subsidiaries are presented under the equity method of accounting. Amounts reflected in these condensed parent company financial statements for investment and affiliated related balances, advances/losses in excess of investment in subsidiaries and equity (losses) earnings from subsidiaries have been adjusted to account for the effects of the telecommunications network assets, right-of-use asset, Uniti lease liability, rent expense, depreciation expense, principal and interest payments on the long-term lease obligation and related income tax effects that are also included in the net loss and member deficit of Windstream Services. Equity (losses) earnings from subsidiaries for 2019 and 2018 includes $12.0 million and $955.6 million of intercompany income related to the Uniti transactions. As of December 31, 2018, Windstream Holdings recorded a full valuation allowance for its deferred tax assets due to the acceleration of all of Windstream Services long-term debt obligations following an adverse court ruling and subsequent filing of the Chapter 11 Cases. Due to cross-default provisions, the remaining obligations under the contractual arrangement with Uniti also were accelerated, which resulted in classifying the long-term lease obligation has been classified as a current liability in the accompanying balance sheet as of December 31, 2018. See Notes 6, 16 and 17 to the consolidated financial statements included in the Financial Supplement to this Annual Report on Form 10-K for additional information regarding the acceleration of long-term debt obligations and remaining obligations under the contractual arrangement with Uniti, the court ruling, filing of the Chapter 11 Cases and the related effects on income taxes. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | WINDSTREAM HOLDINGS, INC. WINDSTREAM SERVICES, LLC (DEBTOR-IN-POSSESSION) SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Millions) Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Period Charged to Cost and Expenses Charged to Other Accounts Deductions Balance at End of Period Allowance for doubtful accounts, customers and others: For the years ended: December 31, 2019 $ 24.8 $ 65.2 (a) $ — $ 41.8 (b) $ 48.2 December 31, 2018 $ 29.7 $ 37.7 $ — $ 42.6 (b) $ 24.8 December 31, 2017 $ 27.1 $ 45.8 $ — $ 43.2 (b) $ 29.7 Valuation allowance for deferred tax assets: For the years ended: December 31, 2019 $ 685.0 $ 45.7 $ — $ 541.5 (c) $ 189.2 December 31, 2018 $ 179.6 $ 505.4 (d) $ — $ — $ 685.0 December 31, 2017 $ 146.5 $ 2.5 $ 41.8 (e) $ 11.2 (f) $ 179.6 Accrued liabilities related to merger, integration and other costs and restructuring charges: For the years ended: December 31, 2019 $ 31.9 $ 36.8 (g) $ — $ 60.6 (j) $ 8.1 December 31, 2018 $ 19.5 $ 76.9 (h) $ — $ 64.5 (j) $ 31.9 December 31, 2017 $ 5.8 $ 180.4 (i) $ — $ 166.7 (j) $ 19.5 Notes: (a) Included in this amount for 2019 was a reserve of $19.7 million for a funding denial from Universal Service Administrative Company pursuant to funding for the years 2012 to 2017 related to a large customer participating in the Universal Service Rural Healthcare Telecommunications Program. (b) Accounts charged off net of recoveries of amounts previously written off. (c) Reduction due to additional deferred tax liabilities recognized upon adoption of ASU 2016-02 on January 1, 2019 and the corresponding re-evaluation of Windstream’s valuation allowances. The decrease in the valuation allowances was included in the cumulative effect adjustment recorded to accumulated deficit. See Note 2 to the consolidated financial statements included in the Financial Supplement to this Annual Report on Form 10-K for additional information regarding the adoption of ASU 2016-02. (d) As of December 31, 2018, Windstream recorded a full valuation allowance, exclusive of a portion of deferred tax liabilities primarily associated with indefinite-lived intangible assets, due to the acceleration of all long-term debt obligations following an adverse court ruling and subsequent filing of the Chapter 11 Cases, and Windstream’s assessment that it was more likely than not that our deferred tax assets would not be realized. See Notes 3, 16 and 17 to the consolidated financial statements included in the Financial Supplement to this Annual Report on Form 10-K for additional information regarding the acceleration of long-term debt obligations, the court ruling and the related effects on income taxes. (e) Valuation allowance for deferred taxes was established through goodwill related to expected realization of net operating losses assumed from the acquisitions of EarthLink and Broadview. (f) Reduction of valuation allowances on net operating loss carryforwards due to the effects of the 2017 Tax Cuts and Jobs Act. (g) Costs primarily consist of charges related to the acquisition of EarthLink. Restructuring charges primarily consist of severance and employee benefit costs from workforce reductions. (h) Costs primarily consist of charges related to the acquisitions of EarthLink and Broadview and legal fees related to the Uniti spin-off litigation. Restructuring charges primarily consist of severance and employee benefit costs from workforce reductions and lease terminations completed during the year. (i) Costs primarily consist of charges related to the acquisitions of EarthLink and Broadview and additional costs incurred in connection with a network optimization project begun in 2015, as further discussed in Note (e) above. Restructuring charges primarily consist of severance and employee benefit costs from workforce reductions completed during the year. (j) Represents cash outlays for merger, integration and other costs and restructuring charges. Included in this amount for 2019 is the amount reclassified to operating lease obligations upon adoption of ASU 2016-02 of $19.3 million . See Note 13 to the consolidated financial statements included in the Financial Supplement to this Annual Report on Form 10-K for additional information regarding the merger, integration and other costs and restructuring charges. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Changes (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates – 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. |
Restricted Cash | Restricted Cash - Deposits held as security for indebtedness under our corporate purchase card program and not available for use have been presented as restricted cash in the accompanying consolidated financial statements. |
Accounts Receivable | Accounts Receivable – Accounts receivable consist principally 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 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 receivables related to communications services and product sales of $33.9 million and $40.0 million at December 31, 2019 and 2018 , respectively. |
Inventories | Inventories – Inventories consist of finished goods and are stated at the lower of cost or net realizable value. Cost is determined using either an average original cost or specific identification method of valuation. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist of prepaid services, rent, insurance, taxes, maintenance contracts, refundable deposits, interest rate swaps, and the current portion of contract assets and deferred contract costs recorded in accounting for revenue from contracts with customers. Prepayments are expensed on a straight-line basis over the corresponding life of the underlying agreements. |
Goodwill and Other Intangible Assets | 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 the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. In accordance with authoritative guidance, goodwill is to be assigned to a company’s reporting units and tested for impairment at least annually or sooner when circumstances indicate an impairment may exist, using a consistent measurement date, which for us is November 1st of each year. Goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit for which discrete financial information is available and our executive management team regularly reviews the operating results of that component. Additionally, components of an operating segment can be combined as a single reporting unit if the components have similar economic characteristics. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of the reporting unit exceeds its fair value, then an impairment loss is recognized equal to the amount by which the carrying value exceeds the reporting unit’s fair value; however, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Prior to performing the quantitative evaluation, an entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. Under the qualitative assessment, if an entity determines that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the entity is not required to complete the quantitative goodwill impairment evaluation. Certain of our intangible assets are spectrum licenses that provide the exclusive right to utilize designated radio frequency spectrum to provide telecommunication services. The spectrum licenses were purchased in the 24 gigahertz (“GHz”) and 28 GHz airwave auctions conducted by the Federal Communications Commission (“FCC”) in 2019. 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. We evaluate the useful life determination for the spectrum licenses each year to determine whether events and circumstances continue to support an indefinite useful life. Finite-lived intangible assets arising from business combinations such as franchise rights, customer lists, trade names and internally developed technology and software are initially recorded at estimated fair value. We amortize customer lists using the sum-of-the-years-digits method over the estimated lives of the customer relationships. All other finite-lived intangible assets are amortized using a straight-line method over the estimated useful lives. See Note 5 for additional information regarding goodwill and other intangible assets. |
Net Property, Plant and Equipment | Net Property, Plant and Equipment – Property, plant and equipment are stated at original cost, less accumulated depreciation. Property, plant and equipment consists of central office equipment, office and warehouse facilities, outside communications plant, customer premise equipment, furniture, fixtures, vehicles, machinery, other equipment and software to support the business units in the distribution of telecommunications products. The costs of additions, replacements, substantial improvements and extension of the network to the customer premise, including related contract and internal labor costs, are capitalized, while the costs of maintenance and repairs are expensed as incurred. Capitalized internal labor costs include non-cash share-based compensation and the matching contribution to the employee savings plan for those employees directly involved with construction activities. Depreciation expense amounted to $897.2 million , $1,300.9 million , and $1,229.0 million in 2019 , 2018 and 2017 , respectively. Net property, plant and equipment consisted of the following as of December 31: (Millions) Depreciable Lives 2019 2018 Land $ 24.2 $ 53.0 Building and improvements 3-40 years 358.5 660.7 Central office equipment 3-40 years 6,765.4 7,074.3 Outside communications plant 7-47 years 2,902.3 8,287.6 Furniture, vehicles and other equipment 1-23 years 1,863.4 1,940.8 Construction in progress 347.3 403.6 12,261.1 18,420.0 Less accumulated depreciation (8,640.3 ) (13,499.1 ) Net property, plant and equipment $ 3,620.8 $ 4,920.9 Of the total net property, plant and equipment at December 31, 2018 listed above, approximately $1.9 billion had been legally transferred to Uniti Group, Inc. (“Uniti”) as a result of the spin-off and leaseback by Windstream Holdings. This balance includes capital improvements, including upgrades or replacements to the leased network assets, funded by us, which are accounted for as lease-hold improvements and become the property of Uniti at the time such improvements are placed in service. Such capital improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining initial contractual term. For periods prior to January 1, 2019, we accounted for the spin-off transaction as a financing arrangement for financial reporting purposes due to various forms of continuing involvement. Accordingly, the net book value of the assets initially transferred to Uniti continued to be reported in our consolidated balance sheet as property, plant and equipment and depreciated. As further discussed below under “Recently Adopted Accounting Standards”, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) effective January 1, 2019. Under ASU 2016-02, the previous forms of prohibited continuing involvement no longer precluded the application of spin-leaseback accounting to the Uniti arrangement and, as a result, we prospectively changed the accounting for the Uniti arrangement from a financing to an operating lease effective January 1, 2019. As of that date, we de-recognized the remaining net book value of assets initially transferred to Uniti of $1.3 billion . Our regulated operations use a group composite depreciation method. Under this method, when plant is retired, the original cost, net of salvage value, is charged against accumulated depreciation and no immediate gain or loss is recognized on the disposition of the plant. For our non-regulated operations, when depreciable plant is retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts, with the corresponding gain or loss reflected in operating results. In accordance with the terms of certain broadband stimulus grants we received from the Rural Utilities Service (“RUS”) to fund 75 percent of the costs related to specified construction projects, the RUS retained a security interest in the assets funded by these grants for the duration of their economic life, which varies by grant for periods up to 23 years . In the event of default of terms of the agreement, the RUS could exercise the rights under its retained security interest to gain control and ownership of these assets. In addition, in the event of a proposed change in control of Windstream, the acquiring party would need to receive approval from the RUS prior to consummating the proposed transaction, for which pre-approval will not be reasonably withheld. At December 31, 2019, the net book value of assets funded by broadband stimulus grants was $38.0 million . We capitalize interest in connection with the acquisition or construction of plant assets. Capitalized interest is included in the cost of the asset with a corresponding reduction in interest expense. Capitalized interest amounted to $6.6 million , $3.7 million and $7.0 million in 2019 , 2018 and 2017 , respectively. |
Asset Retirement Obligations | Asset Retirement Obligations – We recognize asset retirement obligations in accordance with authoritative guidance on accounting for asset retirement obligations and conditional asset retirement obligations, which requires recognition of a liability for the fair value of an asset retirement obligation if the amount can be reasonably estimated. Our asset retirement obligations include legal obligations to remediate the asbestos in certain buildings if we exit them, to properly dispose of our chemically-treated telephone poles at the time they are removed from service and to restore certain leased properties to their previous condition upon exit from the lease. These asset retirement obligations totaled $54.2 million and $53.3 million as of December 31, 2019 and 2018 , respectively, and is included in liabilities subject to compromise for 2019 and other liabilities for 2018 in the accompanying consolidated balance sheets. |
Impairment of Long-Lived Assets | Asset Disposal – In December 2018, we entered into an agreement to sell certain fiber assets in Minnesota to Arvig Enterprises Inc. for cash proceeds of $45.8 million and concurrently entered into a 20 Impairment of Long-Lived Assets – We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. |
Derivative Instruments | Derivative Instruments – Derivative instruments are accounted for in accordance with authoritative guidance for recognition, measurement and disclosures about derivative instruments and hedging activities, including when a derivative or other financial instrument can be designated as a hedge. This guidance requires recognition of all derivative instruments at fair value, and accounting for the changes in fair value depends on whether the derivative has been designated as, and qualifies as, a hedge. Changes in fair value of cash flow hedges are recorded as a component of other comprehensive (loss) income in the current period. See Note 8 for additional information regarding our hedging activities and derivative instruments. |
Revenue Recognition | Revenue Recognition – We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of equipment to customers and contractors. These services include a variety of communication and connectivity services for our Consumer and Business customers including other carriers that use our facilities to provide services to their customers, as well as professional and integrated managed services for our large enterprises and government customers. We account for these revenues under ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which we adopted on January 1, 2018, using the modified retrospective approach. This standard and related updates clarified the principles for recognizing revenue. The standard also amended the guidance for the recognition of costs to obtain and fulfill contracts with customers. We also earn revenues that are not accounted for under Topic 606 from leasing arrangements, federal and state universal service funds and other regulatory-related sources and activities. A contract’s transaction price, considering discounts given for bundled purchases and promotional credits, is allocated to each distinct performance obligation, a promise in a contract to transfer a distinct good or service to the customer, and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have multiple performance obligations. While many contracts include one or more performance obligations, the revenue recognition pattern is generally not impacted by the allocation since the performance obligations are generally satisfied over the same period of time. When the method and timing of transfer and performance risk are the same, services are deemed to be highly interdependent. Highly interdependent, indistinct, services are combined into a single performance obligation. Although each month of services promised is a separate performance obligation, we consider the series of monthly service performance obligations promised over the course of the contract a single performance obligation for purposes of the allocation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price we would charge for the good or service in a separate transaction with similar customers in similar circumstances. Identifying distinct performance obligations and determining the standalone selling price for each performance obligation within a contract with multiple performance obligations requires management judgment. 2. Summary of Significant Accounting Policies and Changes, Continued: Our performance obligations are satisfied over time as services are rendered or at a point in time depending on our evaluation of when the customer obtains control of the promised goods. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally, this occurs when services are rendered or control of our communication products is transferred. Service revenues are recognized over the period that the corresponding services are rendered to customers. Revenues that are billed in advance include monthly recurring network access and data services, special access and monthly recurring voice, Internet and other related charges. Revenues derived from other telecommunications services, including interconnection, long-distance and enhanced service revenues are recognized monthly as services are provided. Telecommunications network maintenance revenue from indefeasible rights to use fiber optic network facility arrangements (“IRUs”) are generally recognized over the term of the related contract. Sales of communications products including customer premise equipment and modems are recognized when products are delivered to and accepted by customers. In determining whether installation is a separate performance obligation, we evaluate, among other factors, whether other performance obligations are highly dependent upon installation requiring significant integration or customization or whether a customer can benefit from the installation with other readily available resources. In circumstances where customers can benefit from the installation with other readily available resources, installation is a separate performance obligation. We recognize installation revenue when the installation is complete. In circumstances where other telecommunication service performance obligations are highly dependent upon installation, installation is not a separate purchase obligation, and accordingly, we include the installation fees in the transaction price allocated to and recognized with other telecommunication service performance obligations. Fees assessed to customers for service activation are considered a material right in a month-to-month contract. These service activation fees are deferred and recognized as service revenue on a straight-line basis over the estimated life of the customer. As a practical expedient, we group similar contracts or performance obligations together into portfolios of contracts or performance obligations when the result does not differ materially from considering each contract or performance obligation separately. We apply the portfolio approach for the following: service activations, installation services, certain promotional credits, commissions and other costs to fulfill a contract. Portfolios are recognized over the estimated life of the customer. Determining the estimated life of the customer requires management judgment. The estimated life of our customer relationships varies by customer type. Wholesale customer lives are estimated based on the average number of months each individual circuit was active. Business customer lives are based on average contract terms. Residential customer lives are estimated based on average customer tenure. Our contracts include discounts and promotional credits given to customers. We include discounts and promotional credits in the transaction price. These estimates are based on historical experience and anticipated performance. In determining whether to include in revenues and expenses, the taxes and surcharges assessed and collected from customers and remitted to government authorities, including USF charges, sales, use, value added and excise taxes, we evaluate, among other factors, whether we are the primary obligor or principal tax payer for the fees and taxes assessed in each jurisdiction in which we operate. In those jurisdictions for which we are the primary obligor, we record the taxes and surcharges on a gross basis and include in revenues and costs of services and products. In jurisdictions in which we function as a collection agent for the government authority, we record the taxes on a net basis and exclude the amounts from our revenues and costs of services and products . We offer third-party video services to our customers. The third-party service provider retains control of the service and is the primary obligor. We record commissions received on a net basis. See Note 10 for additional information regarding contract balances, remaining performance obligations, revenue by category and deferred contract costs. |
Connect America Fund Support | Connect America Fund Support – In conjunction with reforming USF, the FCC established the CAF which provides incremental broadband funding to a number of unserved and underserved locations. In 2015, Windstream accepted support offers under CAF Phase II for 17 of 18 states in which we are the incumbent provider, totaling approximately $175.0 million in annual funding which will continue through 2021. Windstream is obligated to offer broadband service at speeds of 10/1 Mbps or better to approximately 400,000 eligible locations in high-cost areas in those 17 states. |
Intercarrier Billing Disputes | Intercarrier Billing Disputes - We routinely dispute network access charges that are billed to us by other companies for access to their networks. We have accrued amounts that we believe are adequate related to ongoing billing disputes. The reserves are subject to changes in estimates and management judgment as new information becomes available. Due to the length of time historically required to resolve these disputes, these matters may be resolved or require adjustment in future periods and relate to costs invoiced, accrued or paid in prior periods. While we believe the reserves recorded for billing disputes are adequate as of December 31, 2019, it is possible that we could record future adjustments to these reserves and such adjustments could be significant. There were no material adjustments to our billing dispute reserves during the years ended December 31, 2019, 2018 and 2017. |
Advertising | Advertising – Advertising costs are expensed as incurred. Advertising expense totaled $36.1 million , $40.6 million and $47.8 million in 2019 , 2018 and 2017 , respectively. |
Share-Based Compensation | Share-Based Compensation – In accordance with authoritative guidance on share-based compensation, we measure compensation expense for all stock option and restricted stock awards at fair value on the date of the grant and recognize compensation expense over the requisite service period for awards expected to vest. We estimate the fair value of stock options using the Black-Scholes valuation model and determine the fair value of restricted stock awards based on the grant date quoted market price of Windstream Holdings’ common stock. Fair value of stock options and time-based restricted stock awards is recognized as compensation expense, net of estimated forfeitures, on a straight-line basis over the period that each award vests. For accounting purposes, performance-based awards are valued at fair value on the date on which the performance targets are set. Share-based compensation expense for performance-based awards is recognized when it is probable and estimable that the performance metrics will be achieved. Share-based compensation expense is included in cost of services and selling, general and administrative expenses in the accompanying consolidated statements of operations. See Note 12 for additional information regarding stock option, restricted stock and restricted unit activity. |
Pension Benefits | Pension Benefits – We recognize changes in the fair value of plan assets and actuarial gains and losses due to actual experience differing from actuarial assumptions, as a component of net periodic benefit expense (income) in the fourth quarter in the year in which the gains and losses occur, and if applicable in any quarter in which an interim remeasurement is required. The remaining components of net periodic benefit expense (income), primarily benefits earned, interest cost and expected return on plan assets, are recognized ratably on a quarterly basis. See Note 11 for additional information regarding actuarial assumptions, net periodic benefit expense (income), projected benefit obligation, plans assets, future contributions and payments. |
Operating Leases | Operating Leases – Prior to adoption of ASU 2016-02 on January 1, 2019, as further discussed under “Recently Adopted Accounting Standards”, certain of our operating lease agreements included scheduled rent escalations during the initial lease term and/or during succeeding optional renewal periods. We accounted for these operating leases in accordance with authoritative guidance for operating leases with non-level rent payments. Accordingly, the scheduled increases in rent expense were recognized on a straight-line basis over the initial lease term and those renewal periods that were reasonably assured. The difference between rent expense and rent paid was recorded as deferred rent and was included in other liabilities in the accompanying consolidated balance sheets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term, including renewal option periods that are reasonably assured. |
Asset Disposal | Asset Disposal – In December 2018, we entered into an agreement to sell certain fiber assets in Minnesota to Arvig Enterprises Inc. for cash proceeds of $45.8 million and concurrently entered into a 20 Impairment of Long-Lived Assets – We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. |
Income Taxes | Income Taxes – We account for income taxes in accordance with guidance on accounting for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. We account for uncertain tax positions in accordance with authoritative guidance which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Our evaluations of tax positions consider various factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in process audit activities and changes in facts or circumstances related to a tax position. We also accrue for potential interest and penalties related to unrecognized tax benefits in income tax (expense) benefit. 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. See Note 16 for additional information. |
Loss Per Share | Loss Per Share – We compute basic (loss) earnings per share by dividing net (loss) income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares containing a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares are considered participating securities, and the impact is included in the computation of (loss) earnings per share pursuant to the two-class method. Calculations of (loss) earnings per share under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. Commencing in the third quarter of 2017, we eliminated our quarterly common stock dividend. Diluted (loss) earnings per share reflects 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 effect of outstanding restricted stock units, stock options and warrants is reflected in diluted earnings per share 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. We also issue performance-based restricted stock units as part of our share-based compensation plan. Certain of these restricted stock units contain a forfeitable right to receive dividends. Because dividends attributable to these shares are forfeited if the vesting provisions are not met, they are considered non-participating restricted shares and are not considered to be potentially dilutive under the two-class method until the performance conditions have been satisfied. 2. Summary of Significant Accounting Policies and Changes, Continued: A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows for the years ended December 31: (Millions, except per share amounts) 2019 2018 2017 Basic and diluted loss per share: Numerator: Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) Income allocable to participating securities — — (1.3 ) Net loss attributable to common shares $ (3,157.8 ) $ (723.0 ) $ (2,117.9 ) Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 42.6 40.8 34.5 Weighted average participating securities — — (0.7 ) Weighted average basic and diluted shares outstanding 42.6 40.8 33.8 Basic and diluted loss per share: Net loss ($74.06 ) ($17.72 ) ($62.66 ) We have excluded from the computation of diluted shares the effect of restricted stock units and options to purchase shares of our common stock because their inclusion would have an anti-dilutive effect due to our reported net losses. We had 0.5 million restricted stock units and 0.8 million stock options outstanding as of December 31, 2019 , compared to 0.4 million restricted stock units and 1.0 million stock options outstanding at December 31, 2018 . We had 0.8 million restricted stock units and less than 0.1 million stock options outstanding as of December 31, 2017. |
Recently Adopted Accounting Standards | Recently Adopted 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. 2. Summary of Significant Accounting Policies and Changes, Continued: 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 initially 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. We 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 precluded partial sale recognition. As a result, we de-recognized $7.5 million of 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 remaining obligation of $4.3 million is included in other liabilities. 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 5 for additional information pertaining to the goodwill impairment charge. 2. Summary of Significant Accounting Policies and Changes, Continued: The impact of adoption of ASU 2016-02 on our 2019 consolidated statements of operations was as follows: Year Ended December 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 2,666.1 $ 675.2 $ 3,341.3 Depreciation and amortization $ 1,366.4 $ (298.2 ) $ 1,068.2 Interest expense $ 778.8 $ (446.9 ) $ 331.9 Income tax benefit (expense) $ 337.6 $ (17.6 ) $ 320.0 Net (loss) income $ (3,210.1 ) $ 52.3 $ (3,157.8 ) As presented in the table above, the increase in cost of services was due to the recognition of annual straight-line expense attributable to the contractual arrangement with Uniti. The decrease in depreciation expense resulted from de-recognizing the remaining net book value of network assets transferred to Uniti and the decrease in interest expense was 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 year ended December 31, 2019 reflected a decrease in operating cash flows of $212.0 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 $446.9 million . See Note 7 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. 2. Summary of Significant Accounting Policies and Changes, 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Changes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment Disclosure | Net property, plant and equipment consisted of the following as of December 31: (Millions) Depreciable Lives 2019 2018 Land $ 24.2 $ 53.0 Building and improvements 3-40 years 358.5 660.7 Central office equipment 3-40 years 6,765.4 7,074.3 Outside communications plant 7-47 years 2,902.3 8,287.6 Furniture, vehicles and other equipment 1-23 years 1,863.4 1,940.8 Construction in progress 347.3 403.6 12,261.1 18,420.0 Less accumulated depreciation (8,640.3 ) (13,499.1 ) Net property, plant and equipment $ 3,620.8 $ 4,920.9 |
Reconciliation of Earnings Per Share | A reconciliation of net loss and number of shares used in computing basic and diluted loss per share was as follows for the years ended December 31: (Millions, except per share amounts) 2019 2018 2017 Basic and diluted loss per share: Numerator: Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) Income allocable to participating securities — — (1.3 ) Net loss attributable to common shares $ (3,157.8 ) $ (723.0 ) $ (2,117.9 ) Denominator: Basic and diluted shares outstanding Weighted average shares outstanding 42.6 40.8 34.5 Weighted average participating securities — — (0.7 ) Weighted average basic and diluted shares outstanding 42.6 40.8 33.8 Basic and diluted loss per share: Net loss ($74.06 ) ($17.72 ) ($62.66 ) |
Cumulative effect of changes made to the financial statements as a result of new ASU | 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 5 for additional information pertaining to the goodwill impairment charge. 2. Summary of Significant Accounting Policies and Changes, Continued: The impact of adoption of ASU 2016-02 on our 2019 consolidated statements of operations was as follows: Year Ended December 31, 2019 (Millions) Under ASC 840 Effect of Adoption of ASU 2016-02 As reported Costs and expenses Cost of services $ 2,666.1 $ 675.2 $ 3,341.3 Depreciation and amortization $ 1,366.4 $ (298.2 ) $ 1,068.2 Interest expense $ 778.8 $ (446.9 ) $ 331.9 Income tax benefit (expense) $ 337.6 $ (17.6 ) $ 320.0 Net (loss) income $ (3,210.1 ) $ 52.3 $ (3,157.8 ) As presented in the table above, the increase in cost of services was due to the recognition of annual straight-line expense attributable to the contractual arrangement with Uniti. The decrease in depreciation expense resulted from de-recognizing the remaining net book value of network assets transferred to Uniti and the decrease in interest expense was due to no longer accounting for the contractual arrangement with Uniti as a failed spin-leaseback financing arrangement. |
Chapter 11 Filing, Going Conc_2
Chapter 11 Filing, Going Concern and Other Related Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject to Compromise [Table Text Block] | Liabilities subject to compromise at December 31, 2019 consisted of the following: (Millions) Accounts payable $ 335.7 Advance payments 6.6 Accrued taxes 24.5 Other current liabilities 97.1 Deferred taxes 72.6 Operating lease liabilities 4,040.7 Pension and other employee benefit plan obligations 314.0 Other liabilities 200.7 Accounts payable, accrued and other liabilities 5,091.9 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 $ 10,720.1 |
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 year ended December 31, 2019 were as follows: (Millions) Write-off of deferred long-term debt issuance costs $ 54.8 Write-off of original issue net discount on debt subject to compromise 27.1 Debtor-in-possession financing costs 43.4 Professional fees and other bankruptcy related costs 139.2 Provision for estimated damages on rejected executory contracts 29.3 Gain on write-off of net lease liabilities for rejected leases (17.7 ) Gain on vendor settlements of liabilities subject to compromise (15.5 ) Reorganization items, net $ 260.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Pro forma consolidated results of operations of Windstream | The following unaudited pro forma consolidated results of operations of Windstream for the year ended December 31, 2017 assume that the Merger occurred as of January 1, 2016: (Millions) Revenues and sales $ 6,002.4 Operating loss $ (1,559.2 ) Net loss $ (2,098.3 ) Loss per share ($57.27 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets: (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | 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 Consumer CLEC Total Balance at December 31, 2017: Goodwill $ — $ 2,321.2 $ 961.8 $ 1,297.1 $ 103.1 $ 4,683.2 Accumulated impairment loss — (1,417.8 ) — (423.0 ) — (1,840.8 ) Balance at December 31, 2017, net — 903.4 961.8 874.1 103.1 2,842.4 Changes during the period: Broadview measurement period — — (0.7 ) — — (0.7 ) MASS acquisition — — 31.5 — — 31.5 ATC acquisition — — 3.6 — — 3.6 Disposition of consumer CLEC business — — — — (103.1 ) (103.1 ) 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: Reallocation adjustment 254.3 — 119.0 (373.3 ) — — Goodwill impairment (254.3 ) (903.4 ) (1,115.2 ) (439.4 ) — (2,712.3 ) Balance at December 31, 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 December 31, 2019, net $ — $ — $ — $ 61.4 $ — $ 61.4 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets were as follows: (Millions) December 31, December 31, FCC Spectrum licenses $ 26.6 $ — |
Schedule of Finite-Lived Intangible Assets | ntangible assets subject to amortization were as follows at December 31: 2019 2018 (Millions) Gross Cost Accumulated Amortization Net Carrying Value Gross Cost Accumulated Amortization Net Carrying Value Franchise rights $ 1,285.1 $ (457.4 ) $ 827.7 $ 1,285.1 $ (414.6 ) $ 870.5 Customer lists 1,758.5 (1,568.6 ) 189.9 1,758.5 (1,450.4 ) 308.1 Cable franchise rights 11.6 (7.8 ) 3.8 17.3 (10.3 ) 7.0 Trade names 21.0 (5.9 ) 15.1 21.0 (3.9 ) 17.1 Developed technology and software 18.0 (12.4 ) 5.6 18.0 (7.7 ) 10.3 Patents 10.6 (10.6 ) — 10.6 (10.5 ) 0.1 Balance $ 3,104.8 $ (2,062.7 ) $ 1,042.1 $ 3,110.5 $ (1,897.4 ) $ 1,213.1 |
Schedule of Finite-Lived Intangible Assets, Methodology and Estimated Useful Life | Intangible asset amortization methodology and useful lives were as follows as of December 31, 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 | Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the years ended December 31 : Year (Millions) 2020 $ 133.5 2021 100.8 2022 71.0 2023 58.6 2024 53.5 Thereafter 624.7 Total $ 1,042.1 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. |
Long-term Debt and Lease Obliga
Long-term Debt and Lease Obligations: (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule of Long-term Debt Instruments | ebt was as follows at December 31: (Millions) 2019 2018 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 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 ) 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 $ — $ — Weighted average interest rate 8.4 % 7.1 % 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. 6. 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. |
Schedule of Extinguishment of Debt | The net gain (loss) on early extinguishment of debt was comprised of the following: (Millions) Discount (Premium) on early redemption Third-party fees for early redemption Unamortized (discount) premium on original issuance, net Unamortized debt issuance costs on original issuance Net gain (loss) on early extinguishment of debt Year ended December 31, 2018: Exchanges of 2021, 2022, April 2023, August 2023 and 2024 Notes $ 226.0 $ — $ (22.9 ) $ (12.8 ) $ 190.3 Total $ 226.0 $ — $ (22.9 ) $ (12.8 ) $ 190.3 Year ended December 31, 2017: Senior secured credit facility $ — $ — $ (1.8 ) $ (2.3 ) $ (4.1 ) Broadview 2017 Notes — — 0.2 — 0.2 EarthLink 2019 and 2020 Notes (18.3 ) — 16.3 — (2.0 ) Partial repurchase of 2020 Notes 5.3 — 0.1 (0.4 ) 5.0 Exchanges of 2020, 2021, 2022, and April 2023 Notes (49.9 ) (2.0 ) 2.2 (5.8 ) (55.5 ) Total $ (62.9 ) $ (2.0 ) $ 17.0 $ (8.5 ) $ (56.4 ) |
Schedule of Interest Expense | Interest expense was as follows for the years ended December 31: (Millions) 2019 2018 2017 Interest expense - long-term debt $ 338.7 $ 429.0 $ 376.1 Interest expense - long-term lease obligations: Telecommunications network assets — 467.0 484.9 Real estate contributed to pension plan 6.2 6.2 6.2 Impact of interest rate swaps (12.2 ) (3.5 ) 10.1 Interest on capital leases and other 5.8 6.3 5.1 Less capitalized interest expense (6.6 ) (3.7 ) (7.0 ) Total interest expense $ 331.9 $ 901.3 $ 875.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Future lease maturities under non-cancellable leases were as follows for the years ended December 31 : (Millions) 2020 $ 60.5 2021 44.5 2022 24.5 2023 10.1 2024 4.4 Thereafter 0.4 Total future lease receipts $ 144.4 |
Lease, Cost [Table Text Block] | Components of lease expense were as follows for the year ended December 31, 2019: (Millions) Classification Operating lease costs (a) Cost of services, Selling, general and administrative $ 803.2 Finance lease costs Amortization of right-of-use assets Depreciation and amortization 44.4 Interest on lease liabilities Interest expense 4.1 Net lease expense $ 851.7 (a) Includes short-term leases and variable lease costs which are not material. 7. Leases, Continued: Supplemental balance sheet information related to leases was as follows: (Millions) December 31, Operating Leases Operating lease right-of-use assets $ 4,018.0 Current portion of operating lease obligations 3,791.2 Operating lease liabilities 251.6 Operating lease liabilities prior to reclassification to liabilities subject to compromise 4,042.8 Less amounts reclassified to liabilities subject to compromise (4,040.7 ) Total operating lease liabilities $ 2.1 Finance Leases Property, plant and equipment, gross $ 257.2 Accumulated depreciation (191.6 ) Net property, plant and equipment 65.6 Other current liabilities 23.3 Other liabilities 25.6 Finance lease liabilities prior to reclassification to liabilities subject to compromise 48.9 Less amounts reclassified to liabilities subject to compromise (45.0 ) Total finance lease liabilities $ 3.9 Weighted Average Remaining Lease Term Operating leases 10.0 years Finance leases 4.1 years Leaseback of real estate contributed to pension plan 10.8 years Weighted Average Discount Rate Operating leases 13.9 % Finance leases 6.6 % Leaseback of real estate contributed to pension plan 8.6 % Supplemental cash flow information related to leases was as follows for the year ended December 31, 2019: (Millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 787.4 Operating cash outflows from finance leases $ 4.3 Financing cash outflows from finance leases $ 49.3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 6.5 Finance leases $ 11.5 |
Finance Lease, Liability, Maturity [Table Text Block] | As of December 31, 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) 2020 $ 789.6 $ 6.7 $ 25.2 2021 759.7 6.9 10.4 2022 742.8 7.1 5.7 2023 728.4 7.3 5.6 2024 714.5 6.2 3.6 Thereafter 3,795.7 48.8 10.7 Total future minimum lease payments 7,530.7 83.0 61.2 Less: Amounts representing interest 3,487.9 61.9 12.3 Add: Residual value — 50.9 — Present value of lease liabilities $ 4,042.8 $ 72.0 $ 48.9 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 31, 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) 2020 $ 789.6 $ 6.7 $ 25.2 2021 759.7 6.9 10.4 2022 742.8 7.1 5.7 2023 728.4 7.3 5.6 2024 714.5 6.2 3.6 Thereafter 3,795.7 48.8 10.7 Total future minimum lease payments 7,530.7 83.0 61.2 Less: Amounts representing interest 3,487.9 61.9 12.3 Add: Residual value — 50.9 — Present value of lease liabilities $ 4,042.8 $ 72.0 $ 48.9 |
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. |
Derivatives Schedule of Derivat
Derivatives Schedule of Derivatives (Tables) | 12 Months Ended |
Dec. 31, 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) 2019 2018 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) $ 23.6 $ (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 years ended December 31: (Millions) 2019 2018 2017 Changes in fair value, net of tax $ (2.4 ) $ 2.8 $ 7.0 Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax $ (7.9 ) $ 2.3 $ 3.3 |
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) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Cash Equivalents and Interest Rate Swaps | The fair values of cash equivalents, interest rate swaps and debt were determined using the following inputs at December 31: (Millions) 2019 2018 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) Included in current portion of debt - Level 2 $ 500.0 $ 4,405.8 Included in liabilities subject to compromise - Level 2 $ 3,676.1 $ — (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 long-term debt, including current portion, and excluding unamortized debt issuance costs, in the accompanying consolidated balance sheets as of December 31, 2019 and 2018 , respectively. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contract assets and liabilities | Contract assets and liabilities from contracts with customers were as follows at December 31: (Millions) 2019 2018 Contract assets (a) $ 32.8 $ 12.6 Contract liabilities (b) $ 162.3 $ 184.8 Revenues recognized included in the opening contract liability balance $ 172.1 $ 194.9 10. Revenues, Continued: (a) Included $20.8 million and $8.3 million in prepaid expense and other and $12.0 million and $4.3 million in other assets as of December 31, 2019 and 2018 , respectively. (b) Included $148.0 million and $172.1 million in advance payments and $9.9 million and $12.7 million in other liabilities as of December 31, 2019 and 2018 , respectively. This amount also included $4.4 million in liabilities subject to compromise as of December 31, 2019. |
Disaggregation of revenue | Revenues recognized from contracts with customers by customer and product type for the year ended December 31, 2019 was as follows: (Millions) Kinetic Enterprise Wholesale Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 953.4 $ — $ — $ 953.4 Voice-only 108.2 — — 108.2 Video and miscellaneous 38.6 — — 38.6 Core (a) — 1,153.0 — 1,153.0 Strategic (b) — 220.7 — 220.7 Legacy (c) — 487.0 — 487.0 Small business 299.5 — — 299.5 Wholesale (d) 208.3 — 272.1 480.4 Switched access (e) 24.3 — 27.3 51.6 Other (g) — 526.0 — 526.0 Service revenues from contracts with customers 1,632.3 2,386.7 299.4 4,318.4 Product and fiber sales 42.9 36.3 12.6 91.8 Total revenue from contracts with customers 1,675.2 2,423.0 312.0 4,410.2 Other service revenues (h) 399.5 255.5 50.2 705.2 Total revenues and sales $ 2,074.7 $ 2,678.5 $ 362.2 $ 5,115.4 10. Revenues, Continued: Revenues recognized from contracts with customers by customer and product type for the year ended December 31, 2018 was as follows: (Millions) Kinetic Enterprise Wholesale Consumer CLEC Total Revenue from contracts with customers: Type of service: High-speed Internet bundles $ 963.5 $ — $ — $ — $ 963.5 Voice-only 120.5 — — — 120.5 Video and miscellaneous 44.3 — — — 44.3 Core (a) — 1,349.1 — — 1,349.1 Strategic (b) — 155.1 — — 155.1 Legacy (c) — 608.6 — — 608.6 Small business 326.1 — — — 326.1 Wholesale (d) 226.7 — 299.0 — 525.7 Switched access (e) 28.4 — 34.9 — 63.3 Consumer CLEC (f) — — — 170.4 170.4 Other (g) — 590.2 — — 590.2 Service revenues from contracts with customers 1,709.5 2,703.0 333.9 170.4 4,916.8 Product and fiber sales 26.5 48.9 — 0.5 75.9 Total revenue from contracts with customers 1,736.0 2,751.9 333.9 170.9 4,992.7 Other service revenues (h) 404.5 265.0 50.9 — 720.4 Total revenues and sales $ 2,140.5 $ 3,016.9 $ 384.8 $ 170.9 $ 5,713.1 (a) Core revenues consist of dynamic Internet protocol, dedicated Internet access, multi-protocol label switching services, integrated voice and data, long distance, and managed services. (b) Strategic revenues consist of Software Defined Wide Area Network (“SD-WAN”), Unified Communications as a Service (“UCaaS”), OfficeSuite©, and associated network access products and services. (c) Legacy revenues consist of Time Division Multiplexing (“TDM”) voice and data services. (d) Wholesale revenues primarily include revenues from providing special access circuits, fiber connections, data transport and wireless backhaul services. (e) Switched access revenues include usage sensitive revenues from long-distance companies and other carriers for access to our network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for use of our network facilities. (f) 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) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Pension And Other Postretirement Benefits, Net Periodic Benefit Costs, Disclosure | The components of pension benefit expense (income) (including provision for executive retirement agreements) and postretirement benefits expense were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (Millions) 2019 2018 2017 2019 2018 2017 Benefits earned during the year (a) $ 3.0 $ 3.5 $ 8.1 $ — $ — $ — Interest cost on benefit obligation (b) 43.8 43.1 46.3 0.8 0.8 1.1 Net actuarial loss (b) 6.7 14.9 10.5 — — — Amortization of net actuarial loss (b) — — — — 0.2 0.1 Amortization of prior service credit (b) (1.0 ) (4.8 ) (0.4 ) (0.3 ) (0.3 ) (0.3 ) Plan curtailments (b) — (2.7 ) — (0.1 ) — — Expected return on plan assets (b) (49.5 ) (55.0 ) (54.4 ) — — — Net periodic benefit expense (income) $ 3.0 $ (1.0 ) $ 10.1 $ 0.4 $ 0.7 $ 0.9 (a) Included in cost of services and selling, general and administrative expense. (b) Included in other expense, net. |
Summary of Plan Assets, Projected Benefit Obligation and Funded Status of the Plans | A summary of plan assets, projected benefit obligation and funded status of the plans (including executive retirement agreements) were as follows at December 31: Pension Benefits Postretirement Benefits (Millions) 2019 2018 2019 2018 Fair value of plan assets at beginning of year $ 740.9 $ 841.4 $ 0.4 $ 0.4 Actual return on plan assets 163.8 (41.1 ) — — Employer contributions (a) 15.9 18.5 0.8 1.3 Participant contributions — — 2.7 2.8 Benefits paid (b) (66.6 ) (77.9 ) (3.5 ) (4.1 ) Settlements — — — — Fair value of plan assets at end of year $ 854.0 $ 740.9 $ 0.4 $ 0.4 Projected benefit obligation at beginning of year $ 1,043.0 $ 1,157.9 $ 19.7 $ 27.4 Interest cost on projected benefit obligations 43.8 43.1 0.8 0.8 Service cost 4.5 6.2 — — Participant contributions — — 2.7 2.8 Plan amendments — (2.8 ) (0.3 ) — Actuarial (gain) loss 121.0 (80.8 ) 2.5 (7.2 ) Benefits paid (b) (66.6 ) (77.9 ) (3.5 ) (4.1 ) Curtailments — (2.7 ) — — Projected benefit obligation at end of year $ 1,145.7 $ 1,043.0 $ 21.9 $ 19.7 Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: Current liabilities $ (53.7 ) $ (16.0 ) $ (1.3 ) $ (1.3 ) Noncurrent liabilities (238.0 ) (286.1 ) (20.2 ) (18.0 ) Funded status recognized in the consolidated balance sheets $ (291.7 ) $ (302.1 ) $ (21.5 ) $ (19.3 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss (gain) $ — $ — $ (1.0 ) $ 1.5 Prior service credits 7.2 8.2 0.8 0.9 Net amount recognized in accumulated other comprehensive income $ 7.2 $ 8.2 $ (0.2 ) $ 2.4 (a) During 2019, we made contributions totaling $15.2 million to the qualified pension plan to satisfy our 2019 and remaining 2018 funding requirements using available cash on hand. We also contributed $0.8 million to the postretirement plan. (b) Pension benefits paid from Windstream’s assets totaled $0.8 million in both 2019 and 2018 . All postretirement benefits in both years were paid from Windstream’s general corporate assets in both years. |
Pension and Other Postretirement Benefits, Net Periodic Benefit Costs Weighted Average Assumptions Disclosure | Assumptions – Actuarial assumptions used to calculate pension and postretirement benefits expense (income) were as follows for the years ended December 31: Pension Benefits Postretirement Benefits (Millions) 2019 2018 2017 2019 2018 2017 Discount rate 4.34 % 4.00 % 4.19 % 4.38 % 3.74 % 4.26 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % 2.00 % — % — % — % |
Benefit Obligations Weighted Average Assumptions Disclosure | Actuarial assumptions used to calculate the benefit obligations were as follows at December 31: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Discount rate 3.37 % 4.34 % 3.37 % 4.38 % Expected return on plan assets 7.00 % 7.00 % 7.00 % 7.00 % Rate of compensation increase 2.00 % 2.00 % — % — % |
Health Care Cost Trend Rates Assumptions Disclosure | Information regarding the healthcare cost trend rate was as follows for the years ended December 31: 2019 2018 Healthcare cost trend rate assumed for next year 7.00 % 6.25 % Rate that the cost trend ultimately declines to 5.00 % 5.00 % Year that the rate reaches the terminal rate 2028 2024 |
Weighted-Average Allocation of Assets Related to Defined Benefit Plans Disclosure | The asset allocation for our pension plan by asset category was as follows for the years ended December 31: Target Allocation Percentage of Plan Assets Asset Category 2020 2019 2018 Equity securities 23.7% - 38.7% 32.3 % 24.4 % Fixed income securities 32.6% - 62.6% 46.8 % 53.5 % Alternative investments 12.3% - 27.3% 19.2 % 21.6 % Money market and other short-term interest bearing securities 0.0% - 6.5% 1.7 % 0.5 % 100.0 % 100.0 % |
Schedule of Defined Benefit Plans Disclosures | The fair values of our pension plan assets were determined using the following inputs as of December 31, 2019 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund and interest bearing cash (a) $ 53.2 $ — $ 53.2 $ — Common collective and other trust funds (b) 282.1 — 282.1 — Government and agency securities (c) 170.9 — 170.9 — Common and preferred stocks - domestic (c) 21.1 21.1 — — Common and preferred stocks - international (c) 25.3 25.3 — — Real estate LLCs (d) 68.8 — — 68.8 Other investments (e) 2.6 0.8 1.8 — Investments included in fair value hierarchy 624.0 $ 47.2 $ 508.0 $ 68.8 Other investments measured at NAV: Pooled funds (f) 184.9 Private equity funds (g) 43.4 Total investments 852.3 Dividends and interest receivable 4.8 Pending trades and other liabilities (3.1 ) Total plan assets $ 854.0 11. Employee Benefit Plans and Postretirement Benefits, Continued: The fair values of our pension plan assets were determined using the following inputs as of December 31, 2018 : Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Millions) Fair Value Level 1 Level 2 Level 3 Money market fund and interest bearing cash (a) $ 41.0 $ — $ 41.0 $ — Common collective and other trust funds (b) 137.6 — 137.6 — Government and agency securities (c) 241.1 — 241.1 — Corporate bonds and asset backed securities (c) 21.6 — 21.6 — Common and preferred stocks - domestic (c) 21.8 21.8 — — Common and preferred stocks - international (c) 29.2 29.2 — — Mutual fund (c) 42.5 42.5 — — Real estate LLCs (d) 70.3 — — 70.3 Other investments (e) 1.2 0.4 — 0.8 Investments included in fair value hierarchy 606.3 $ 93.9 $ 441.3 $ 71.1 Other investments measured at NAV: Pooled funds (f) 96.5 Private equity funds (g) 40.0 Total investments 742.8 Dividends and interest receivable 1.0 Pending trades and other liabilities (2.9 ) Total plan assets $ 740.9 (a) Money market fund is valued based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. The carrying amount of interest bearing cash is estimated to approximate fair value due to the short-term nature of this investment. (b) Units in common collective and other trust funds are valued by reference to the funds' underlying assets and are based on the net asset value as reported by the fund manager on the last business day of the year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. (c) Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and mutual funds traded in active markets on securities exchanges are valued at their quoted market price on the last day of the year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. (d) This category consists of real estate properties contributed by Windstream to limited liability companies (“LLCs”) wholly- owned by the pension plan. The fair value of these properties is based on independent appraisals. (See also Note 7.) (e) Other investments consist of derivative financial instruments, a guaranteed annuity contract and investments in foreign currency. Derivative financial instruments are valued based on models that reflect the contractual terms of the instruments. Inputs include observable market information, such as benchmark yields, swap curves and interdealer broker quotes at the end of the year. The guaranteed annuity contract is reported at contract value which approximates fair value and is based on the value of the underlying contracts as determined by the insurance company. Investments in foreign currency are valued at their quoted market price on the last day of the year. 11. Employee Benefit Plans and Postretirement Benefits, Continued: (f) The pooled investment funds are valued based on the net asset value of the fund as determined by the fund manager on the last business day of the year, and is derived from the fair value of each underlying investment held by the pooled fund. These investments have not been classified within the fair value hierarchy. (g) Private equity funds consist of investments in limited partnerships and are valued based on the pension plan's capital account balance at year end as reported in the audited financial statements of the partnership. These investments have not been classified within the fair value hierarchy. |
Pension Plan Assets, Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value using significant unobservable inputs: (Millions) Real estate LLCs Guaranteed annuity contract Total Balance at December 31, 2017 $ 72.7 $ 0.8 $ 73.5 Unrealized (loss) gains (2.4 ) 0.1 (2.3 ) Purchases and sales, net — (0.1 ) (0.1 ) Balance at December 31, 2018 $ 70.3 $ 0.8 $ 71.1 Unrealized (loss) gains (1.5 ) 0.1 (1.4 ) Purchases and sales, net — (0.9 ) (0.9 ) Balance at December 31, 2019 $ 68.8 $ — $ 68.8 |
Pension and Other Postretirement Benefits, Expected Benefit Payments Disclosure | Estimated Future Employer Contributions and Benefit Payments – Estimated future employer contributions, benefit payments, including executive retirement agreements, are as follows as of December 31, 2019 : (Millions) Pension Benefits Postretirement Benefits Expected employer contributions in 2020 $ 53.7 $ 1.3 Expected benefit payments: 2020 $ 80.1 $ 1.3 2021 79.0 1.2 2022 77.5 1.2 2023 75.2 1.2 2024 74.1 1.1 2025-2029 345.6 6.1 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans: (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity | The vesting periods and grant date fair values for restricted stock and restricted stock units issued, including the EarthLink replacement awards issued in 2017, were as follows for the years ended December 31: (Number of shares in thousands) 2019 2018 2017 Service-based restricted stock and restricted units: Vest variably over remaining service period, up to three-years — — 571.7 Vest ratably over a three-year service period — — 490.3 Vest one year from date of grant, service based - granted to non-employee directors — 109.6 41.4 Vest immediately on date of grant, service based - granted to non-employee directors — 41.1 — Vest three years from date of grant, service based — — 6.8 Total granted — 150.7 1,110.2 Grant date fair value (Dollars in millions) $ — $ 1.1 $ 33.3 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | estricted stock and restricted unit activity for the year ended December 31, 2019 was as follows: Service-Based Performance-Based (Thousands) Underlying Number of Shares Weighted Average Fair Value Per Share (Thousands) Underlying Number of Shares Weighted Average Fair Value Per Share Non-vested at December 31, 2018 522.1 $ 23.34 325.4 $ 28.35 Granted — $ — 698.5 $ 3.40 Vested (143.5 ) $ 32.57 (160.8 ) $ 28.91 Forfeited (19.0 ) $ 34.83 (740.1 ) $ 4.77 Non-vested at December 31, 2019 359.6 $ 19.05 123.0 $ 27.80 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | A summary of share-based compensation expense was as follows for the years ended December 31: (Millions) 2019 2018 2017 Restricted stock, restricted units and stock options $ 2.7 $ 11.3 $ 32.5 Employee savings plan (See Note 11) — — 22.9 Share-based compensation expense $ 2.7 $ 11.3 $ 55.4 |
Merger, Integration and Other_2
Merger, Integration and Other Costs and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Merger, Integration and Other Costs and Restructuring Activities | The following is a summary of the merger, integration and other costs and restructuring charges recorded for the years ended December 31: (Millions) 2019 2018 2017 Merger, integration and other costs: Costs related to merger with EarthLink (a) $ 6.8 $ 15.5 $ 104.1 Costs related to merger with Broadview (b) — 4.1 14.3 Costs related to acquisitions of MASS and ATC — 2.5 — Legal fees related to Uniti spin-off litigation (see Note 17) 0.3 7.2 7.5 Network optimization and contract termination costs — — 8.5 IT conversion, consulting and other costs 1.2 2.6 3.0 Total merger, integration and other costs 8.3 31.9 137.4 Restructuring charges 28.5 45.0 43.0 Total merger, integration and other costs and restructuring charges $ 36.8 $ 76.9 $ 180.4 (a) In 2019 and 2018, these amounts include severance and employee benefit costs for EarthLink employees terminated after the acquisition of $5.0 million and $6.9 million , respectively, and other miscellaneous expenses of $1.8 million and $3.7 million , respectively. In 2018, we also incurred contract and lease termination costs of $4.9 million as a result of vacating certain facilities related to the acquired operations of EarthLink. In 2017, these amounts include investment banking, legal and other consulting services of $24.0 million , severance and employee benefit costs for EarthLink employees terminated after the acquisition of $39.0 million , share-based compensation expense of $10.1 million attributable to the accelerated vesting of assumed equity awards for terminated EarthLink employees, rebranding and marketing costs of $5.3 million and other miscellaneous expenses of $3.2 million . We also incurred contract and lease termination costs of $22.5 million as a result of vacating certain facilities related to the acquired operations of EarthLink. (b) In 2018, these amounts include severance and employee benefit costs for Broadview employees terminated after the acquisition of $1.8 million . We also incurred contract and lease termination costs of $2.3 million as a result of vacating certain facilities related to the acquired operations of Broadview. 13. Merger, Integration and Other Costs and Restructuring Charges, Continued: In 2017, these amounts include investment banking, legal and other consulting fees of $4.5 million and severance and employee benefit costs for Broadview employees terminated after the acquisition of $4.7 million . We also incurred contract and lease termination costs of $3.7 million as a result of vacating certain facilities related to the acquired operations of Broadview. |
Schedule of Restructuring and Reorganization Costs (Benefits), Net | The following is a summary of the activity related to the liabilities associated with merger, integration and other costs and restructuring charges at December 31: Restructuring Charges (Millions) Merger, Integration and Other Charges Severance and Benefit Costs Lease Termination Costs Total Balance at December 31, 2017 $ 10.3 $ 5.0 $ 4.2 $ 19.5 Expenses incurred in period 31.9 24.6 20.4 76.9 Cash outlays during the period (38.2 ) (17.0 ) (9.3 ) (64.5 ) 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 8.3 28.5 — 36.8 Cash outlays during the period (8.3 ) (33.0 ) — (41.3 ) Balance at December 31, 2019 $ — $ 8.1 $ — $ 8.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income balances, net of tax, were as follows for the years ended December 31: (Millions) 2019 2018 2017 Pension and postretirement plans $ 5.0 $ 7.7 $ 4.0 Unrealized holding gains (losses) on interest rate swaps Designated portion — 29.7 20.7 De-designated portion 17.6 (1.8 ) (3.3 ) Accumulated other comprehensive income $ 22.6 $ 35.6 $ 21.4 Changes in accumulated other comprehensive income balances, net of tax, were as follows: (Millions) Net Gains on Interest Rate Swaps Pension and Postretirement Plans Total Balance at December 31, 2018 $ 27.9 $ 7.7 $ 35.6 Prior service credit arising during the period — 0.3 0.3 Other comprehensive income before reclassifications (2.4 ) (2.0 ) (4.4 ) Amounts reclassified from accumulated other comprehensive income (a) (7.9 ) (1.0 ) (8.9 ) Balance at December 31, 2019 $ 17.6 $ 5.0 $ 22.6 (a) See separate table below for details about these reclassifications. |
Reclassifications Out Of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income were as follows for the years ended December 31: Details about Accumulated Other Comprehensive Income Components (Millions) Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations 2019 2018 2017 (Gains) losses on interest rate swaps: Amortization of net unrealized (gains) losses on de-designated interest rate swaps $ (10.6 ) $ 3.0 $ 5.3 Interest expense (10.6 ) 3.0 5.3 Loss before income taxes 2.7 (0.7 ) (2.0 ) Income tax benefit (expense) (7.9 ) 2.3 3.3 Net loss Pension and postretirement plans: Plan curtailments 0.1 — — (a) Amortization of net actuarial loss — 0.2 0.1 (a) Amortization of prior service credits (1.3 ) (5.1 ) (0.7 ) (a) (1.2 ) (4.9 ) (0.6 ) Loss before income taxes 0.2 1.3 0.1 Income tax benefit (expense) (1.0 ) (3.6 ) (0.5 ) Net loss Total reclassifications for the period, net of tax $ (8.9 ) $ (1.3 ) $ 2.8 Net loss (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit (income) expense (See Note 11). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure Table | Income tax benefit (expense) was as follows for the years ended December 31: (Millions) 2019 2018 2017 Current: Federal $ (0.1 ) $ (0.3 ) $ 0.3 State 0.5 (7.6 ) (4.9 ) 0.4 (7.9 ) (4.6 ) Deferred: Federal 254.6 (356.1 ) 328.0 State 65.0 (85.1 ) 84.7 319.6 (441.2 ) 412.7 Income tax benefit (expense) $ 320.0 $ (449.1 ) $ 408.1 |
Income Tax Rate Reconciliation | Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state income taxes, were as follows for the years ended December 31: 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % Increase (decrease) State income taxes, net of federal benefit 4.2 3.9 3.6 Adjust deferred taxes for state net operating loss carryforward — 0.1 — Transaction costs — — (0.1 ) Valuation allowance (1.7 ) (183.1 ) (0.1 ) Research and development credit — (1.0 ) 0.1 Share-based compensation — (1.0 ) (0.1 ) Debt exchange (0.2 ) 6.8 (6.1 ) 2017 federal tax reform — — (7.6 ) Goodwill impairment (13.2 ) — (8.4 ) Sale of Consumer CLEC business — (9.3 ) — Reorganization items, net (0.8 ) — — Other items, net (0.1 ) (1.4 ) (0.1 ) Effective income tax rate 9.2 % (164.0 )% 16.2 % |
Components of Deferred Tax Assets and Liabilities | The significant components of the net deferred income tax liability (asset) were as follows at December 31: (Millions) 2019 2018 Property, plant and equipment $ 422.6 $ 825.5 Goodwill and other intangible assets 215.6 477.7 Operating loss and credit carryforward (548.0 ) (576.8 ) Postretirement and other employee benefits (77.4 ) (79.6 ) Unrealized holding loss and interest rate swaps (1.0 ) 7.2 Deferred compensation (2.2 ) (2.3 ) Bad debt (21.4 ) (15.1 ) Long-term lease obligations (1,033.8 ) (1,170.9 ) Operating lease right-of-use assets 1,008.0 — Deferred debt costs (36.8 ) (19.2 ) Share-based compensation (4.5 ) (6.8 ) Interest expense (30.4 ) — Other, net (7.3 ) (20.4 ) (116.6 ) (580.7 ) Valuation allowance 189.2 685.0 Less amounts reclassified to liabilities subject to compromise (72.6 ) — Deferred income taxes, net $ — $ 104.3 Deferred tax assets $ (1,813.7 ) $ (1,954.0 ) Deferred tax liabilities 1,886.3 2,058.3 Less amounts reclassified to liabilities subject to compromise (72.6 ) — Deferred income taxes, net $ — $ 104.3 |
Unrecognized Tax Benefits Reconciliation, Table | We account for uncertainty in taxes in accordance with authoritative guidance. A reconciliation of the unrecognized tax benefits is as follows: (Millions) 2019 2018 2017 Beginning balance $ 8.0 $ 8.7 $ 8.8 Additions based on EarthLink acquisition — — 2.5 Additions based on tax positions related to current year — — 0.7 Reductions for tax positions of prior years — (0.7 ) (1.2 ) Settlements — — (2.1 ) Ending balance $ 8.0 $ 8.0 $ 8.7 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 18. Segment Information, Continued: |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | (Millions) 2019 2018 2017 Kinetic: Revenues and sales $ 2,074.7 $ 2,140.5 $ 2,258.5 Costs and expenses 885.6 884.4 937.2 Segment income 1,189.1 1,256.1 1,321.3 Enterprise: Revenues and sales 2,678.5 3,016.9 3,032.9 Costs and expenses 2,159.1 2,454.9 2,497.0 Segment income 519.4 562.0 535.9 Wholesale: Revenues and sales 362.2 384.8 399.0 Costs and expenses 101.4 111.1 111.3 Segment income 260.8 273.7 287.7 CLEC Consumer: Revenues and sales — 170.9 162.5 Costs and expenses — 78.4 81.8 Segment income — 92.5 80.7 Total segment revenues and sales 5,115.4 5,713.1 5,852.9 Total segment costs and expenses 3,146.1 3,528.8 3,627.3 Total segment income $ 1,969.3 $ 2,184.3 $ 2,225.6 Capital expenditures by segment were as follows as of December 31: (Millions) 2019 2018 2017 Kinetic $ 454.8 $ 369.8 $ 391.8 Enterprise 152.5 187.6 199.7 Wholesale 27.3 31.3 32.4 Corporate/shared (a) 243.9 231.5 284.7 Total $ 878.5 $ 820.2 $ 908.6 (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. For 2018 and 2017, these amounts include incremental capital spend related to our 2017 acquisitions of EarthLink and Broadview of $37.6 million and $34.5 million , respectively. Corporate/shared capital expenditures for 2017 include $49.9 million related to Project Excel, an incremental capital program completed in mid-2017, which upgraded our broadband network. 18. Segment Information, Continued: The following table reconciles segment income to consolidated net loss income for the years ended December 31: (Millions) 2019 2018 2017 Total segment income $ 1,969.3 $ 2,184.3 $ 2,225.6 Depreciation and amortization (1,068.2 ) (1,526.7 ) (1,470.0 ) Goodwill impairment (2,712.3 ) — (1,840.8 ) Merger, integration and other costs (8.3 ) (31.9 ) (137.4 ) Restructuring charges (28.5 ) (45.0 ) (43.0 ) Straight-line expense under contractual arrangement with Uniti (675.2 ) — — Other unassigned operating expenses (a) (354.3 ) (284.1 ) (325.0 ) Other expense, net (7.8 ) (4.9 ) (2.3 ) Gain on sale of Consumer CLEC business — 145.4 — Net gain (loss) on early extinguishment of debt — 190.3 (56.4 ) Reorganization items, net (260.6 ) — — Interest expense (331.9 ) (901.3 ) (875.4 ) Income tax benefit (expense) 320.0 (449.1 ) 408.1 Net loss $ (3,157.8 ) $ (723.0 ) $ (2,116.6 ) (a) Included in this amount for 2019 were spend commitment penalties incurred under certain carrier discount plans of $102.5 million and a reserve of $19.7 million for a funding denial from Universal Service Administrative Company pursuant to funding for the years 2012 to 2017 related to a large customer participating in the Universal Service Rural Healthcare Telecommunications Program. |
Schedule of Capital Expenditure [Table Text Block] | Capital expenditures by segment were as follows as of December 31: (Millions) 2019 2018 2017 Kinetic $ 454.8 $ 369.8 $ 391.8 Enterprise 152.5 187.6 199.7 Wholesale 27.3 31.3 32.4 Corporate/shared (a) 243.9 231.5 284.7 Total $ 878.5 $ 820.2 $ 908.6 (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. For 2018 and 2017, these amounts include incremental capital spend related to our 2017 acquisitions of EarthLink and Broadview of $37.6 million and $34.5 million , respectively. Corporate/shared capital expenditures for 2017 include $49.9 million related to Project Excel, an incremental capital program completed in mid-2017, which upgraded our broadband network. |
Quarterly Financial Informati_2
Quarterly Financial Information – (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | For the Year Ended December 31, 2018 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,713.1 $ 1,393.8 $ 1,420.6 $ 1,444.4 $ 1,454.3 Operating income $ 296.6 $ 63.7 $ 75.6 $ 88.3 $ 69.0 Net (loss) income $ (723.0 ) $ (549.2 ) $ 41.3 $ (93.7 ) $ (121.4 ) Basic and diluted (loss) earnings per share: (a) Net (loss) income ($17.72 ) ($12.92 ) $.97 ($2.30 ) ($3.25 ) (a) Quarterly (loss) income per share amounts may not add to full-year (loss) earnings per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. For the Year Ended December 31, 2019 (Millions, except per share amounts) Total 4th 3rd 2nd 1st Revenues and sales $ 5,115.4 $ 1,238.2 $ 1,270.1 $ 1,286.5 $ 1,320.6 Operating loss $ (2,877.5 ) $ (38.8 ) $ (34.5 ) $ (422.9 ) $ (2,381.3 ) Net loss $ (3,157.8 ) $ (187.9 ) $ (115.5 ) $ (544.1 ) $ (2,310.3 ) Basic and diluted loss per share: (a) Net loss ($74.06 ) ($4.41 ) ($2.71 ) ($12.76 ) ($54.26 ) (a) Quarterly loss per share amounts may not add to full-year loss per share amounts due to the difference in weighted-average common shares for the quarters compared to the weighted-average common shares for the year. |
Background and Basis for Pres_2
Background and Basis for Presentation: (Details) | 12 Months Ended | |
Dec. 31, 2019Mi | Dec. 31, 2016states | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Number of states incumbent provider | states | 18 | |
Number of fiber route miles | Mi | 164,000 | |
Windstream Services, LLC | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Ownership interest percentage | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Changes - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Unbilled receivables | $ 40 | $ 33.9 | $ 40 | |||
Indefinite-lived intangible asset, term of license | 10 years | |||||
Depreciation expense | 897.2 | 1,300.9 | $ 1,229 | |||
Net property, plant and equipment | 4,920.9 | $ 3,620.8 | 4,920.9 | $ 3,614.2 | ||
Percentage of costs related to projects funded by Broadband Stimulus Group | 75.00% | |||||
Economic life of assets funded by Broadband Stimulus Grants | 23 years | |||||
Net book value of assets funded by broadband stimulus grants | $ 38 | |||||
Capitalized interest | 6.6 | 3.7 | $ 7 | |||
Asset retirement obligation | 53.3 | $ 54.2 | 53.3 | |||
Spin off | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Net property, plant and equipment | $ 1,900 | $ 1,900 | ||||
Certain Fiber Assets In Minnesota | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Agreement, Term | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Changes - Net Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | $ 12,261.1 | $ 18,420 | |
Less accumulated depreciation | (8,640.3) | (13,499.1) | |
Net property, plant and equipment | 3,620.8 | $ 3,614.2 | 4,920.9 |
Land | |||
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | 24.2 | 53 | |
Building and improvements | |||
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | $ 358.5 | 660.7 | |
Building and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 3 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 40 years | ||
Central office equipment | |||
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | $ 6,765.4 | 7,074.3 | |
Central office equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 3 years | ||
Central office equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 40 years | ||
Outside communications plant | |||
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | $ 2,902.3 | 8,287.6 | |
Outside communications plant | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 7 years | ||
Outside communications plant | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 47 years | ||
Furniture, vehicles and other equipment | |||
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | $ 1,863.4 | 1,940.8 | |
Furniture, vehicles and other equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 1 year | ||
Furniture, vehicles and other equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable lives | 23 years | ||
Construction in progress | |||
Property, Plant and Equipment [Abstract] | |||
Gross property, plant and equipment | $ 347.3 | $ 403.6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Changes - Narrative 2 (Details) shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2016stateslocation | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of states that accepted Connect America Fund Phase II support | states | 17 | |||||
Number of states incumbent provider | states | 18 | |||||
Estimated annual Connect America Fund Phase II support | $ 175 | |||||
Eligible locations for Connect America Fund Phase II Support | location | 400,000 | |||||
Advertising expense | $ 36.1 | $ 40.6 | $ 47.8 | |||
Restricted Stock Units (RSUs) | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities (in shares) | shares | 0.5 | 0.4 | 0.8 | |||
Employee Stock Option | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities (in shares) | shares | 0.8 | 1 | 0.1 | |||
Certain Fiber Assets In Minnesota | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Proceeds from the sale of property | $ 45.8 | |||||
Agreement, Term | 20 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Changes - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net loss | $ (3,157.8) | $ (723) | $ (2,116.6) | ||||||||
Income allocable to participating securities | 0 | 0 | (1.3) | ||||||||
Net loss attributable to common shares | $ (3,157.8) | $ (723) | $ (2,117.9) | ||||||||
Basic and diluted shares outstanding | |||||||||||
Weighted average shares outstanding (in shares) | 42.6 | 40.8 | 34.5 | ||||||||
Weighted average participating securities (in shares) | 0 | 0 | (0.7) | ||||||||
Weighted average basic and diluted shares outstanding (in shares) | 42.6 | 40.8 | 33.8 | ||||||||
Net loss (in dollars per share) | $ (4.41) | $ (2.71) | $ (12.76) | $ (54.26) | $ (12.92) | $ 0.97 | $ (2.30) | $ (3.25) | $ (74.06) | $ (17.72) | $ (62.66) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Changes - Impact of Adoption of ASU 2016-02, Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Prepaid expenses and other | $ 197.7 | $ 159 | $ 159.7 |
Net property, plant and equipment | 3,620.8 | 3,614.2 | 4,920.9 |
Operating lease right-of-use assets | 4,018 | 4,239.1 | 0 |
Other assets | 82.9 | 88.1 | 94 |
Operating Lease, Liability | (4,042.8) | ||
Liabilities | |||
Current portion of long-term lease obligations | 0 | 0 | 4,570.3 |
Operating Lease, Liability, Current | 3,791.2 | 3,947.8 | |
Other current liabilities | 223.3 | 372.3 | 387.7 |
Deferred income taxes | 0 | 396.6 | 104.3 |
Operating lease obligations | 251.6 | 317.2 | |
Other liabilities | 23.6 | 556.4 | 615.2 |
Accumulated deficit | $ (3,350.1) | $ (192.3) | (3,205.3) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Adoption of ASU 2016-02 (See Note 2) | |||
Assets | |||
Prepaid expenses and other | (0.7) | ||
Net property, plant and equipment | $ (1,300) | (1,306.7) | |
Operating lease right-of-use assets | 4,239.1 | ||
Other assets | (5.9) | ||
Operating Lease, Liability | 700 | ||
Liabilities | |||
Current portion of long-term lease obligations | (4,570.3) | ||
Operating Lease, Liability, Current | 3,947.8 | ||
Other current liabilities | (15.4) | ||
Deferred income taxes | 300 | 292.3 | |
Operating lease obligations | 317.2 | ||
Other liabilities | (58.8) | ||
Accumulated deficit | 3,000 | 3,013 | |
Previously Reported [Member] | |||
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 | |||
Current portion of long-term lease obligations | 4,570.3 | ||
Operating Lease, Liability, Current | 0 | ||
Other current liabilities | 387.7 | ||
Deferred income taxes | 104.3 | ||
Operating lease obligations | 0 | ||
Other liabilities | 615.2 | ||
Accumulated deficit | (3,205.3) | ||
Operating leases [Member] | Adoption of ASU 2016-02 (See Note 2) | |||
Assets | |||
Operating lease right-of-use assets | $ 3,900 | 382.5 | |
Liabilities | |||
Operating Lease, Liability, Current | 408.4 | ||
Prepaid expenses and other | Adoption of ASU 2016-02 (See Note 2) | |||
Assets | |||
Operating lease right-of-use assets | 6.6 | ||
Other Liabilities | Adoption of ASU 2016-02 (See Note 2) | |||
Assets | |||
Operating lease right-of-use assets | 6.7 | ||
Certain Fiber Assets In Minnesota | Adoption of ASU 2016-02 (See Note 2) | |||
Liabilities | |||
Other liabilities | 41.5 | ||
Certain Fiber Assets In Minnesota | Outside Communications Plant [Member] | Adoption of ASU 2016-02 (See Note 2) | |||
Liabilities | |||
Other liabilities | 7.5 | ||
Certain Fiber Assets In Minnesota | Other Liabilities | Adoption of ASU 2016-02 (See Note 2) | |||
Liabilities | |||
Other liabilities | $ 4.3 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies and Changes - Impact of Adoption of ASU 2016-02, Income Statement (Details) - USD ($) | Nov. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Goodwill impairment | $ 0 | $ 373,300,000 | $ 2,339,000,000 | $ 2,712,300,000 | $ 0 | $ 1,840,800,000 | |||||||
Depreciation and amortization | 1,068,200,000 | ||||||||||||
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | $ (13,800,000) | (331,900,000) | (901,300,000) | (875,400,000) | |||||||||
Income tax benefit (expense) | 320,000,000 | (449,100,000) | 408,100,000 | ||||||||||
Net loss | $ (187,900,000) | $ (115,500,000) | (544,100,000) | (2,310,300,000) | $ (549,200,000) | $ 41,300,000 | $ (93,700,000) | $ (121,400,000) | (3,157,800,000) | (723,000,000) | (2,116,600,000) | ||
Adoption of ASU 2016-02 (See Note 2) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Depreciation and amortization | (298,200,000) | ||||||||||||
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | $ 109,700,000 | $ 111,100,000 | $ 112,400,000 | $ 113,700,000 | 446,900,000 | ||||||||
Income tax benefit (expense) | 17,600,000 | ||||||||||||
Net loss | 52,300,000 | ||||||||||||
Previously Reported [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Depreciation and amortization | 1,366,400,000 | ||||||||||||
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | (778,800,000) | ||||||||||||
Income tax benefit (expense) | (337,600,000) | ||||||||||||
Net loss | (3,210,100,000) | ||||||||||||
Service | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cost of services and products sold | 3,341,300,000 | $ 2,854,800,000 | $ 2,962,700,000 | ||||||||||
Service | Adoption of ASU 2016-02 (See Note 2) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cost of services and products sold | 675,200,000 | ||||||||||||
Service | Previously Reported [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cost of services and products sold | $ 2,666,100,000 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies and Changes - Impact of Adoption of ASU 2016-02, Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided from operating activities | $ 533.8 | $ 1,013.1 | $ 974.6 |
Adoption of ASU 2016-02 (See Note 2) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided from operating activities | 212 | ||
Increase (Decrease) in Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 446.9 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies and Changes Impact of Adoption 2016-13 (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accumulated deficit | $ (3,350.1) | $ (192.3) | $ (3,205.3) | |
Accounting Standards Update 2016-13 [Domain] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accumulated deficit | $ 1.8 |
Chapter 11 Filing, Going Conc_3
Chapter 11 Filing, Going Concern and Other Related Matters Narrative (Details) $ in Millions | Apr. 01, 2020USD ($) | Feb. 25, 2019 | Dec. 31, 2019 | May 15, 2020USD ($)claims |
Bankruptcy Claims [Line Items] | ||||
Bankruptcy Proceedings, Date Petition for Bankruptcy Filed | Feb. 25, 2019 | |||
Bankruptcy Proceedings, Court Where Petition Was Filed | U.S. Bankruptcy Court for the Southern District of New York | |||
Subsequent Event | ||||
Bankruptcy Claims [Line Items] | ||||
Bankruptcy Claims, Number Claims Filed | claims | 8,250 | |||
Bankruptcy Claims, Amount of Claims Filed | $ 16,500 | |||
Senior Lien [Member] | Subsequent Event | ||||
Bankruptcy Claims [Line Items] | ||||
Plan of Reorganization, New Common Stock to be Distributed, Percent | 100.00% | |||
Exit Facility [Member] | Holders of Midwest Notes [Member] | Subsequent Event | ||||
Bankruptcy Claims [Line Items] | ||||
Plan of Reorganization, Planned Issuance of Debt | $ 100 |
Chapter 11 Filing, Going Conc_4
Chapter 11 Filing, Going Concern and Other Related Matters Liabilities Subject to Compromise (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Reorganizations [Abstract] | ||
Accounts payable | $ 335.7 | |
Advance payments | 6.6 | |
Accrued taxes | 24.5 | |
Other current liabilities | 97.1 | |
Deferred taxes | 72.6 | |
Operating lease liabilities | 4,040.7 | |
Pension and other employee benefit plan obligations | 314 | |
Other liabilities | 200.7 | |
Accounts payable, accrued and other liabilities | 5,091.9 | |
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 | $ 10,720.1 | $ 0 |
Chapter 11 Filing, Going Conc_5
Chapter 11 Filing, Going Concern and Other Related Matters Reorganization Items (Details) - USD ($) $ in Millions | Aug. 02, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reorganization Items [Line Items] | |||||||||
Payments of Debt Issuance Costs | $ (24.4) | $ (23.5) | $ (27.1) | ||||||
Write-off of deferred long-term debt issuance costs | 54.8 | ||||||||
Write-off of original issue net discount on debt subject to compromise | $ 35.7 | 27.1 | |||||||
Debtor-in-possession financing costs | 43.4 | ||||||||
Professional fees and other bankruptcy related costs | 139.2 | ||||||||
Provision for estimated damages on rejected executory contracts | 29.3 | ||||||||
Gain on write-off of net lease liabilities for rejected leases | (17.7) | ||||||||
Gain on vendor settlements of liabilities subject to compromise | (15.5) | ||||||||
Reorganization items, net | $ 41.1 | $ 29.2 | $ 85.4 | $ 104.9 | 260.6 | 0 | $ 0 | ||
Reorganization items, net [Member] | |||||||||
Reorganization Items [Line Items] | |||||||||
Payments of Debt Issuance Costs | $ (16.9) | ||||||||
Term Loan Commitments | Superpriority Term Loan Facility | |||||||||
Reorganization Items [Line Items] | |||||||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 500 | $ 500 | $ 500 | $ 500 | $ 0 |
Chapter 11 Filing, Going Conc_6
Chapter 11 Filing, Going Concern and Other Related Matters Uniti Arrangement (Details) - Subsequent Event - Uniti [Member] $ in Millions | Mar. 02, 2020USD ($) |
Reorganization Items [Line Items] | |
Bankruptcy Settlement, Maximum Amount To Fund Capital Improvements | $ 1,750 |
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 400 |
Bankruptcy Settlement, 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 | |
Reorganization Items [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 | |
Reorganization Items [Line Items] | |
Bankruptcy Settlement, Quarterly Amounts Payable To Fund Capital Improvements | $ 490 |
Chapter 11 Filing, Going Conc_7
Chapter 11 Filing, Going Concern and Other Related Matters Plan Support Agreement (Details) - USD ($) | Mar. 02, 2020 | May 08, 2020 | Dec. 31, 2019 |
Notes Aug 2023 [Member] | |||
Reorganization Items [Line Items] | |||
Interest rate, percentage | 6.375% | ||
Subsequent Event | |||
Reorganization Items [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, Equity Rights Offering, Amount | $ 750,000,000 | ||
Reorganization Items, Backstop Premium, Percentage | 8.00% | ||
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 | Senior Lien [Member] | |||
Reorganization Items [Line Items] | |||
Plan of Reorganization, Participating Parties, Percentage | 94.00% | ||
Subsequent Event | Junior Lien [Member] | |||
Reorganization Items [Line Items] | |||
Plan of Reorganization, Participating Parties, Percentage | 54.00% | ||
Subsequent Event | Unsecured Debt | |||
Reorganization Items [Line Items] | |||
Plan of Reorganization, Participating Parties, Percentage | 39.00% | ||
Subsequent Event | Holders of Midwest Notes [Member] | |||
Reorganization Items [Line Items] | |||
Plan of Reorganization, Participating Parties, Percentage | 72.00% |
Acquisitions - Narrative (Deta
Acquisitions - Narrative (Details) $ / shares in Units, $ in Millions | Aug. 31, 2018USD ($) | Mar. 27, 2018USD ($) | Jul. 28, 2017USD ($)Micustomers$ / shares | Feb. 27, 2017USD ($)Micustomersshares | Dec. 31, 2019USD ($)Mi$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Number of fiber route miles | Mi | 164,000 | ||||||
Common stock, par value (usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
American Telephone Company | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 10 | ||||||
Intangible assets, customer list | 7 | ||||||
Goodwill acquired | $ 3.6 | ||||||
MASS acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 37.1 | ||||||
Intangible assets, customer list | 10 | ||||||
Goodwill acquired | 31.5 | $ 31.5 | |||||
Expected earn out payments related to acquisition of MASS | 2.5 | ||||||
Tangible assets acquired through Mass acquisition | 1.3 | ||||||
Accounts payable | (4.2) | ||||||
Deferred income tax liabilities | $ 1.5 | ||||||
Broadview measurement period | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 230 | ||||||
Goodwill acquired | $ 120.6 | ||||||
Number of customers | customers | 20,000 | ||||||
Number of fiber route miles | Mi | 3,000 | ||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | ||||||
Business acquisition stock value per share (usd per share) | $ / shares | $ 6.98 | ||||||
Gross payments to acquire businesses | $ 69.8 | ||||||
Short-term debt obligations | 160.2 | ||||||
Goodwill expected to be deductible | $ 10.8 | ||||||
Pro forma information, revenue and sales | 119.9 | ||||||
Pro forma information, operating income | 6 | ||||||
EarthLink | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 1,100 | ||||||
Goodwill acquired | $ 348.3 | ||||||
Number of customers | customers | 700,000 | ||||||
Number of fiber route miles | Mi | 16,000 | ||||||
Goodwill expected to be deductible | $ 54.8 | ||||||
Pro forma information, revenue and sales | 751.1 | ||||||
Pro forma information, operating income | (61) | ||||||
Business Combination, Equity Interest Issued or Issuable | shares | 0.164 | ||||||
Aggregate principal assumed | $ 435.3 | ||||||
Costs related to merger with EarthLink | $ 6.8 | $ 15.5 | $ 104.1 | ||||
Common Stock | EarthLink | |||||||
Business Acquisition [Line Items] | |||||||
Shares issued | shares | 17,600,000 | ||||||
Restricted Stock and Restricted Stock Units | EarthLink | |||||||
Business Acquisition [Line Items] | |||||||
Shares issued | shares | 1,000,000 |
Acquisitions - Pro Forma Conso
Acquisitions - Pro Forma Consolidated Results of Operations (Details) - EarthLink $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues and sales | $ 6,002.4 |
Operating loss | (1,559.2) |
Net loss | $ (2,098.3) |
Loss per share (in dollars per share) | $ / shares | $ (57.27) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets: - Schedule of Goodwill (Details) | Nov. 01, 2018USD ($) | Mar. 27, 2018USD ($) | Jul. 28, 2017USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)reporting_unit | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Goodwill [Line Items] | |||||||||
Accumulated deficit | $ (3,350,100,000) | $ (3,205,300,000) | $ (192,300,000) | ||||||
Number of reporting units | reporting_unit | 4 | ||||||||
Goodwill [Roll Forward] | |||||||||
Balance, beginning of period | $ 2,773,700,000 | 2,773,700,000 | $ 2,842,400,000 | ||||||
Reallocation adjustment | 0 | ||||||||
Goodwill impairment | $ 0 | $ (373,300,000) | (2,339,000,000) | (2,712,300,000) | 0 | $ (1,840,800,000) | |||
Goodwill before accumulated impairment | 4,614,500,000 | 4,614,500,000 | 4,683,200,000 | ||||||
Accumulated impairment loss, goodwill | (4,553,100,000) | (1,840,800,000) | (1,840,800,000) | ||||||
Balance, end of period | 61,400,000 | 2,773,700,000 | 2,842,400,000 | ||||||
Kinetic | |||||||||
Goodwill [Roll Forward] | |||||||||
Balance, beginning of period | 0 | 0 | 0 | ||||||
Reallocation adjustment | 254,300,000 | ||||||||
Goodwill impairment | (254,300,000) | ||||||||
Goodwill before accumulated impairment | 254,300,000 | 0 | 0 | ||||||
Accumulated impairment loss, goodwill | (254,300,000) | 0 | 0 | ||||||
Balance, end of period | 0 | 0 | 0 | ||||||
Consumer & Small Business | |||||||||
Goodwill [Roll Forward] | |||||||||
Balance, beginning of period | 903,400,000 | 903,400,000 | 903,400,000 | ||||||
Reallocation adjustment | 0 | ||||||||
Goodwill impairment | (903,400,000) | ||||||||
Goodwill before accumulated impairment | 2,321,200,000 | 2,321,200,000 | 2,321,200,000 | ||||||
Accumulated impairment loss, goodwill | (2,321,200,000) | (1,417,800,000) | (1,417,800,000) | ||||||
Balance, end of period | 0 | 903,400,000 | 903,400,000 | ||||||
Enterprise | |||||||||
Goodwill [Roll Forward] | |||||||||
Balance, beginning of period | 996,200,000 | 996,200,000 | 961,800,000 | ||||||
Reallocation adjustment | 119,000,000 | ||||||||
Goodwill impairment | (1,115,200,000) | ||||||||
Goodwill before accumulated impairment | 1,115,200,000 | 996,200,000 | 961,800,000 | ||||||
Accumulated impairment loss, goodwill | (1,115,200,000) | 0 | 0 | ||||||
Balance, end of period | 0 | 996,200,000 | 961,800,000 | ||||||
Wholesale | |||||||||
Goodwill [Roll Forward] | |||||||||
Balance, beginning of period | 874,100,000 | 874,100,000 | 874,100,000 | ||||||
Reallocation adjustment | (373,300,000) | ||||||||
Goodwill impairment | (439,400,000) | ||||||||
Goodwill before accumulated impairment | 923,800,000 | 1,297,100,000 | 1,297,100,000 | ||||||
Accumulated impairment loss, goodwill | (862,400,000) | (423,000,000) | (423,000,000) | ||||||
Balance, end of period | 61,400,000 | 874,100,000 | 874,100,000 | ||||||
Consumer CLEC | |||||||||
Goodwill [Roll Forward] | |||||||||
Balance, beginning of period | $ 0 | 0 | 103,100,000 | ||||||
Reallocation adjustment | 0 | ||||||||
Goodwill impairment | 0 | ||||||||
Goodwill before accumulated impairment | 0 | 0 | 103,100,000 | ||||||
Accumulated impairment loss, goodwill | 0 | 0 | 0 | ||||||
Balance, end of period | $ 0 | 0 | $ 103,100,000 | ||||||
Broadview measurement period | |||||||||
Goodwill [Roll Forward] | |||||||||
Broadview measurement period | (700,000) | ||||||||
Goodwill acquired | $ 120,600,000 | ||||||||
Broadview measurement period | Kinetic | |||||||||
Goodwill [Roll Forward] | |||||||||
Broadview measurement period | 0 | ||||||||
Broadview measurement period | Consumer & Small Business | |||||||||
Goodwill [Roll Forward] | |||||||||
Broadview measurement period | 0 | ||||||||
Broadview measurement period | Enterprise | |||||||||
Goodwill [Roll Forward] | |||||||||
Broadview measurement period | (700,000) | ||||||||
Broadview measurement period | Wholesale | |||||||||
Goodwill [Roll Forward] | |||||||||
Broadview measurement period | 0 | ||||||||
Broadview measurement period | Consumer CLEC | |||||||||
Goodwill [Roll Forward] | |||||||||
Broadview measurement period | 0 | ||||||||
MASS acquisition | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | $ 31,500,000 | 31,500,000 | |||||||
MASS acquisition | Kinetic | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
MASS acquisition | Consumer & Small Business | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
MASS acquisition | Enterprise | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 31,500,000 | ||||||||
MASS acquisition | Wholesale | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
MASS acquisition | Consumer CLEC | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
ATC acquisition | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 3,600,000 | ||||||||
ATC acquisition | Kinetic | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
ATC acquisition | Consumer & Small Business | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
ATC acquisition | Enterprise | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 3,600,000 | ||||||||
ATC acquisition | Wholesale | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
ATC acquisition | Consumer CLEC | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill acquired | 0 | ||||||||
Consumer CLEC | |||||||||
Goodwill [Roll Forward] | |||||||||
Disposition of consumer CLEC business | (103,100,000) | ||||||||
Consumer CLEC | Kinetic | |||||||||
Goodwill [Roll Forward] | |||||||||
Disposition of consumer CLEC business | 0 | ||||||||
Consumer CLEC | Consumer & Small Business | |||||||||
Goodwill [Roll Forward] | |||||||||
Disposition of consumer CLEC business | 0 | ||||||||
Consumer CLEC | Enterprise | |||||||||
Goodwill [Roll Forward] | |||||||||
Disposition of consumer CLEC business | 0 | ||||||||
Consumer CLEC | Wholesale | |||||||||
Goodwill [Roll Forward] | |||||||||
Disposition of consumer CLEC business | 0 | ||||||||
Consumer CLEC | Consumer CLEC | |||||||||
Goodwill [Roll Forward] | |||||||||
Disposition of consumer CLEC business | (103,100,000) | ||||||||
Accounting Standards Update 2016-02 | |||||||||
Goodwill [Line Items] | |||||||||
Accumulated deficit | $ 3,013,000,000 | $ 3,000,000,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets: - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 3,104.8 | $ 3,110.5 |
Accumulated Amortization | (2,062.7) | (1,897.4) |
Total | 1,042.1 | 1,213.1 |
Franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 1,285.1 | 1,285.1 |
Accumulated Amortization | (457.4) | (414.6) |
Total | 827.7 | 870.5 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 1,758.5 | 1,758.5 |
Accumulated Amortization | (1,568.6) | (1,450.4) |
Total | 189.9 | 308.1 |
Cable franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 11.6 | 17.3 |
Accumulated Amortization | (7.8) | (10.3) |
Total | 3.8 | 7 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 21 | 21 |
Accumulated Amortization | (5.9) | (3.9) |
Total | 15.1 | 17.1 |
Developed technology and software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 18 | 18 |
Accumulated Amortization | (12.4) | (7.7) |
Total | 5.6 | 10.3 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 10.6 | 10.6 |
Accumulated Amortization | (10.6) | (10.5) |
Total | $ 0 | $ 0.1 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets: - Intangible Asset Amortization Methodology and Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Franchise rights | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 30 years |
Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | sum of years digits |
Cable franchise rights | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 15 years |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Developed technology and software | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 3 years |
Minimum | Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 5 years 6 months |
Minimum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 1 year |
Minimum | Developed technology and software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 3 years |
Maximum | Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 15 years |
Maximum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 10 years |
Maximum | Developed technology and software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 5 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets: - Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangible assets subject to amortization | $ 171 | $ 225.8 | $ 241 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2019 | 133.5 | ||
2020 | 100.8 | ||
2021 | 71 | ||
2022 | 58.6 | ||
2023 | 53.5 | ||
Thereafter | 624.7 | ||
Total | $ 1,042.1 | $ 1,213.1 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets: Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-Lived License Agreements | $ 26.6 | $ 0 |
Debt_ - Long-Term Debt (Details
Debt: - Long-Term Debt (Details) - USD ($) $ in Millions | Jan. 03, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Aug. 02, 2018 |
Debt Instrument [Line Items] | ||||||
Net discount on long-term debt | $ 0 | $ (28.6) | ||||
Unamortized debt issuance costs | 0 | (57.6) | ||||
Carrying value | 6,099.3 | 5,728.1 | ||||
Less current portion | (500) | (5,728.1) | ||||
Liabilities Subject to Compromise, Debt | (5,599.3) | 0 | ||||
Total long-term debt | $ 0 | $ 0 | ||||
Weighted average interest rate | 8.40% | 7.10% | ||||
Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 10.50% | |||||
Senior notes | $ 1,180.5 | $ 1,180.5 | ||||
Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 9.75% | |||||
Senior notes | $ 568.4 | 568.4 | ||||
Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | $ 802 | 1,017 | ||||
Senior First Lien Notes – 8.625%, due October 31, 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 8.625% | |||||
Senior First Lien Notes – 8.625%, due October 31, 2025 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 8.625% | |||||
Notes payable | $ 600 | 600 | ||||
New 2024 Notes | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 10.50% | 10.50% | ||||
Notes payable | $ 414.9 | 414.9 | ||||
Senior Second Lien Notes – 9.000%, due June 30, 2025 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 9.00% | 9.00% | ||||
Notes payable | $ 802 | 802 | ||||
2020 Notes – 7.750%, due October 15, 2020 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 7.75% | |||||
Notes payable | $ 78.1 | 78.1 | ||||
2021 Notes – 7.750%, due October 1, 2021 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 7.75% | |||||
Notes payable | $ 70.1 | 70.1 | ||||
2022 Notes – 7.500%, due June 1, 2022 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 7.50% | |||||
Notes payable | $ 36.2 | 36.2 | ||||
2023 Notes – 7.500%, due April 1, 2023 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 7.50% | |||||
Notes payable | $ 34.4 | 34.4 | ||||
2023 Notes – 6.375%, due August 1, 2023 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 6.375% | |||||
Notes payable | $ 806.9 | 806.9 | ||||
2024 Notes – 8.750%, due December 15, 2024 | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 8.75% | |||||
Notes payable | $ 105.8 | 105.8 | ||||
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 6.75% | |||||
Debentures and notes issued by subsidiaries | $ 100 | 100 | ||||
DIP Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 1.50% | |||||
Consumer and Small Business CLEC | ||||||
Debt Instrument [Line Items] | ||||||
Repayments on line of credit | $ 312 | |||||
Superpriority Revolving Credit Facility | Revolving Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 0 | |||||
Superpriority Term Loan Facility | Term Loan Commitments | ||||||
Debt Instrument [Line Items] | ||||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 500 | $ 500 | $ 0 | |||
London Interbank Offered Rate (LIBOR) | DIP Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, percentage | 2.50% | |||||
Debt instrument, variable rate | 1.00% | |||||
Commitment fee percentage for unused capacity | 0.50% |
Debt_ - Narrative (Details)
Debt: - Narrative (Details) - USD ($) | Aug. 02, 2018 | Nov. 08, 2017 | Feb. 17, 2017 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Feb. 25, 2019 | Nov. 30, 2017 | Feb. 27, 2017 |
Line of Credit Facility [Line Items] | |||||||||||
Net loss on early extinguishment of debt | $ (190,300,000) | $ (190,300,000) | $ 0 | $ (190,300,000) | $ 56,400,000 | ||||||
Consent fees including arrangement, legal and third-party fees | 18,400,000 | ||||||||||
Interest expense | 6,500,000 | ||||||||||
Net discount on long-term debt | $ 0 | $ 28,600,000 | |||||||||
Weighted average interest rate | 8.40% | 7.10% | |||||||||
Pro forma first lien leverage ratio | 2.25 | ||||||||||
Total consent solicitation and amendment fees | $ 11,500,000 | ||||||||||
Consent fees payable | $ 11,900,000 | $ 8,800,000 | |||||||||
Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Quarterly amortization payment as a percentage of principal | 0.25% | ||||||||||
DIP Facilities | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 1.50% | ||||||||||
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. | ||||||||||
DIP Facilities | Senior Secured Superpriority Debtor-In-Possession Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||||
Term Loan Commitments | Superpriority Term Loan Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 500,000,000 | ||||||||||
Revolving Facility | Superpriority Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||||
Senior secured credit facility, Tranche B7 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 2.25% | ||||||||||
Senior secured credit facility, Tranche B7 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Senior note, new borrowings, issuance percentage | 99.50% | ||||||||||
Tranche B6 Notes 2021 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Senior secured credit facilities, new borrowings | $ 450,000,000 | ||||||||||
Interest rate, percentage | 10.50% | ||||||||||
Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 9.75% | ||||||||||
EarthLink 2019 Notes | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 8.875% | ||||||||||
EarthLink 2020 Notes | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 7.375% | ||||||||||
Revolving Line of Credit, Due 2015 | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 1,250,000,000 | ||||||||||
Maximum amount issuable under letters of credit | 50,000,000 | ||||||||||
Proceeds from lines of credit | 155,000,000 | ||||||||||
Repayments of lines of credit | $ 250,000,000 | ||||||||||
Amount outstanding under letters of credit | 28,500,000 | ||||||||||
Revolving Credit Facility | Superpriority Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debtor-in-Possession Financing, Letters of Credit Outstanding, Amount For Potential Professional Fees | 55,100,000 | ||||||||||
Debtor-in-Possession Financing, Remaining Borrowing Capacity | $ 416,400,000 | ||||||||||
Revolving Line of Credit, Due 2015, Debt-For-Debt Exchange | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Proceeds from lines of credit | $ 816,000,000 | $ 1,196,000,000 | |||||||||
Repayments of lines of credit | $ 574,000,000 | $ 896,000,000 | |||||||||
Revolving Line of Credit, Due 2020 | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 8.50% | ||||||||||
Repayments of lines of credit | $ 370,000,000 | ||||||||||
Weighted average interest rate | 7.65% | 4.02% | |||||||||
Senior secured credit facilities [Domain] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% | ||||||||||
Debt instrument, Default interest rate | $ 0.0200 | ||||||||||
Notes 2025 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 8.625% | ||||||||||
Notes 2025 | Unsecured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 8.625% | ||||||||||
One-time consent payment equal per $1,000 principal | $ 2.50 | ||||||||||
Principal amount of 2025 Notes | $ 200,000,000 | ||||||||||
London Interbank Offered Rate (LIBOR) | DIP Facilities | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 1.00% | ||||||||||
Interest rate, percentage | 2.50% | ||||||||||
Commitment fee percentage for unused capacity | 0.50% | ||||||||||
London Interbank Offered Rate (LIBOR) | Senior secured credit facility, Tranche B7 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 3.25% | ||||||||||
Federal Funds Effective Rate | DIP Facilities | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 0.50% | ||||||||||
Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage for unused capacity | 0.40% | ||||||||||
Minimum | Senior secured credit facility, Tranche B7 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Quarterly amortization payment as a percentage of principal | 0.25% | ||||||||||
Minimum | Revolving Line of Credit, Due 2020 | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 4.38% | 3.40% | |||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 1.25% | ||||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Senior secured credit facility, Tranche B7 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 0.75% | ||||||||||
Minimum | Base Rate | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 0.25% | ||||||||||
Minimum | Base Rate | Tranche B6 Notes 2021 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 0.75% | ||||||||||
Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Consent fees including arrangement, legal and third-party fees | $ 2,700,000 | ||||||||||
Commitment fee percentage for unused capacity | 0.50% | ||||||||||
Maximum | Revolving Line of Credit, Due 2020 | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate, percentage | 8.50% | 6.50% | |||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 2.00% | ||||||||||
Maximum | Base Rate | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 1.00% | ||||||||||
Maximum | Base Rate | Tranche B6 Notes 2021 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, variable rate | 4.00% | ||||||||||
2017 Notes | Revolving Line of Credit, Due 2015, Debt-For-Debt Exchange | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayments of lines of credit | $ 150,000,000 | $ 160,000,000 |
Debt_ - New Debt Issuances and
Debt: - New Debt Issuances and Debt Exchanges (Details) - USD ($) | Aug. 02, 2018 | Nov. 08, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Nov. 30, 2017 | Feb. 27, 2017 |
Debt Instrument [Line Items] | |||||||||||
Consent fees including arrangement, legal and third-party fees | $ 18,400,000 | ||||||||||
Net gain (loss) on early extinguishment of debt | 190,300,000 | $ 190,300,000 | $ 0 | $ 190,300,000 | $ (56,400,000) | ||||||
Net principal reduction | 226,000,000 | ||||||||||
Write-off of original issue net discount on debt subject to compromise | 35,700,000 | 27,100,000 | |||||||||
Interest expense | 6,500,000 | ||||||||||
Consent fees payable | 11,900,000 | $ 8,800,000 | |||||||||
Fee amount related to debt instrument | $ 27,700,000 | 27,700,000 | |||||||||
Consent fees payables to lenders | 6,000,000 | 6,000,000 | |||||||||
Arrangement, legal, and other fees | 21,700,000 | 21,700,000 | |||||||||
Premium on exchanges of debt | $ 95,100,000 | ||||||||||
Premium on exchanges related to debt modification accounting | 45,200,000 | ||||||||||
Total interest expense | 13,800,000 | $ 331,900,000 | 901,300,000 | 875,400,000 | |||||||
Discount (Premium) on early redemption | 226,000,000 | $ (62,900,000) | |||||||||
2024 Notes – 8.750%, due December 15, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 414,900,000 | ||||||||||
Leverage ratio under covenant | 3.50 | ||||||||||
2021 Notes – 7.750%, due October 1, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 18,800,000 | ||||||||||
2024 Notes - 8.750% due December 15, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 578,600,000 | ||||||||||
Senior First Lien Notes – 8.625%, due October 31, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.625% | ||||||||||
2022 Notes – 7.500%, due June 1, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 5,300,000 | ||||||||||
2023 Notes – 7.500%, due April 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 86,000,000 | ||||||||||
2023 Notes – 6.375%, due August 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 340,700,000 | ||||||||||
Notes 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 414,900,000 | ||||||||||
Unsecured Debt | New 2024 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 10.50% | 10.50% | |||||||||
Unsecured Debt | 2024 Notes – 8.750%, due December 15, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.75% | ||||||||||
Principal amount of debt | 834,300,000 | 834,300,000 | |||||||||
2019 | 150,000,000 | 150,000,000 | |||||||||
Unsecured Debt | 2021 Notes – 7.750%, due October 1, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.75% | ||||||||||
Repayments of debt | 539,200,000 | ||||||||||
Unsecured Debt | Senior Second Lien Notes – 9.000%, due June 30, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 802,000,000 | ||||||||||
Interest rate, percentage | 9.00% | 9.00% | |||||||||
Unsecured Debt | Senior First Lien Notes – 8.625%, due October 31, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.625% | ||||||||||
Principal amount of debt | $ 200,000,000 | ||||||||||
Unsecured Debt | 2022 Notes – 7.500%, due June 1, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 167,500,000 | ||||||||||
Interest rate, percentage | 7.50% | ||||||||||
Repayments of debt | 232,100,000 | ||||||||||
Unsecured Debt | 2023 Notes – 7.500%, due April 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 223,100,000 | ||||||||||
Interest rate, percentage | 7.50% | ||||||||||
Unsecured Debt | 2023 Notes – 6.375%, due August 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 141,300,000 | ||||||||||
Interest rate, percentage | 6.375% | ||||||||||
Principal amount of debt | 561,900,000 | ||||||||||
Unsecured Debt | Notes 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.75% | ||||||||||
Repayments of debt | $ 45,300,000 | ||||||||||
Repurchased debt instrument face amount | 49,100,000 | 49,100,000 | |||||||||
Unamortized discount (premium) and debt issuance costs | 300,000 | 300,000 | |||||||||
Unsecured Debt | Exchanges of 2021, 2022, April 2023, August 2023 and 2024 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Net gain (loss) on early extinguishment of debt | $ (55,500,000) | 190,300,000 | |||||||||
Discount (Premium) on early redemption | $ 226,000,000 | ||||||||||
Senior Lien [Member] | Senior First Lien Notes – 8.625%, due October 31, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.625% | ||||||||||
Principal amount of debt | $ 400,000,000 | ||||||||||
Senior note, new borrowings, issuance percentage | 99.00% | ||||||||||
New borrowings yield percentage | 8.802% | ||||||||||
Senior Lien [Member] | Tranche B6 Notes 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of debt | $ 139,000,000 | ||||||||||
Senior secured credit facility | 2024 Notes – 8.750%, due December 15, 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.75% | 8.75% | 8.75% | ||||||||
Senior secured credit facility | 2021 Notes – 7.750%, due October 1, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.75% | ||||||||||
Senior secured credit facility | 2022 Notes – 7.500%, due June 1, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.50% | ||||||||||
Senior secured credit facility | 2023 Notes – 7.500%, due April 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.50% | ||||||||||
Senior secured credit facility | 2023 Notes – 6.375%, due August 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 6.375% | ||||||||||
Senior secured credit facility | Notes 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.75% | ||||||||||
Secured Debt | EarthLink 2020 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 7.375% | ||||||||||
Secured Debt | EarthLink 2019 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.875% | ||||||||||
Secured Debt | Tranche B6 Notes 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior secured credit facilities, new borrowings | $ 450,000,000 | ||||||||||
Interest rate, percentage | 10.50% | ||||||||||
Line of Credit | Revolving Line of Credit, Due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 8.50% | ||||||||||
Repayments of lines of credit | $ 370,000,000 | ||||||||||
Line of Credit | Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of lines of credit | $ 250,000,000 | ||||||||||
Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Consent fees including arrangement, legal and third-party fees | $ 2,700,000 | ||||||||||
Maximum | Line of Credit | Revolving Line of Credit, Due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 6.50% | 8.50% | 6.50% | ||||||||
Minimum | Line of Credit | Revolving Line of Credit, Due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, percentage | 3.40% | 4.38% | 3.40% | ||||||||
Notes 2022 | Unsecured Debt | 2023 Notes – 6.375%, due August 1, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 420,600,000 | ||||||||||
2021 Notes – 7.750%, due October 1, 2021 | Unsecured Debt | 2021 Notes – 7.750%, due October 1, 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 181,200,000 | ||||||||||
2021 Notes – 7.750%, due October 1, 2021 | Unsecured Debt | Senior First Lien Notes – 8.625%, due October 31, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 50,000,000 | ||||||||||
Notes 2020 | Unsecured Debt | Senior First Lien Notes – 8.625%, due October 31, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 150,000,000 | ||||||||||
Notes 2020 | Unsecured Debt | Notes 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $ 158,000,000 | ||||||||||
Debt Modification Accounting | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs | $ 4,000,000 | $ 4,000,000 | |||||||||
Extinguishment Method Of Accounting | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs | $ 7,900,000 | $ 7,900,000 |
Debt_ - Net Gain (Loss) on Exti
Debt: - Net Gain (Loss) on Extinguishment of Debt (Details) - USD ($) $ in Millions | Aug. 02, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | $ 226 | $ (62.9) | ||||
Third-party fees for early redemption | 0 | (2) | ||||
Unamortized (discount) premium on original issuance, net | (22.9) | 17 | ||||
Unamortized debt issuance costs on original issuance | (12.8) | (8.5) | ||||
Net gain (loss) on early extinguishment of debt | $ 190.3 | $ 190.3 | $ 0 | 190.3 | (56.4) | |
Unsecured Debt | Exchanges of 2021, 2022, April 2023, August 2023 and 2024 Notes | ||||||
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | 226 | |||||
Third-party fees for early redemption | 0 | |||||
Unamortized (discount) premium on original issuance, net | (22.9) | |||||
Unamortized debt issuance costs on original issuance | (12.8) | |||||
Net gain (loss) on early extinguishment of debt | $ (55.5) | $ 190.3 | ||||
Unsecured Debt | Partial repurchase of 2020 Notes | ||||||
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | 5.3 | |||||
Third-party fees for early redemption | 0 | |||||
Unamortized (discount) premium on original issuance, net | 0.1 | |||||
Unamortized debt issuance costs on original issuance | (0.4) | |||||
Net gain (loss) on early extinguishment of debt | 5 | |||||
Unsecured Debt | Exchanges of 2020, 2021, 2022, and April 2023 Notes | ||||||
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | (49.9) | |||||
Third-party fees for early redemption | (2) | |||||
Unamortized (discount) premium on original issuance, net | 2.2 | |||||
Unamortized debt issuance costs on original issuance | (5.8) | |||||
Net gain (loss) on early extinguishment of debt | (55.5) | |||||
Secured Debt | Senior secured credit facility | ||||||
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | 0 | |||||
Third-party fees for early redemption | 0 | |||||
Unamortized (discount) premium on original issuance, net | (1.8) | |||||
Unamortized debt issuance costs on original issuance | (2.3) | |||||
Net gain (loss) on early extinguishment of debt | (4.1) | |||||
Broadview measurement period | Secured Debt | ||||||
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | 0 | |||||
Third-party fees for early redemption | 0 | |||||
Unamortized (discount) premium on original issuance, net | 0.2 | |||||
Unamortized debt issuance costs on original issuance | 0 | |||||
Net gain (loss) on early extinguishment of debt | 0.2 | |||||
EarthLink | Secured Debt | ||||||
Extinguishment of Debt [Line Items] | ||||||
Discount (Premium) on early redemption | (18.3) | |||||
Third-party fees for early redemption | 0 | |||||
Unamortized (discount) premium on original issuance, net | 16.3 | |||||
Unamortized debt issuance costs on original issuance | 0 | |||||
Net gain (loss) on early extinguishment of debt | $ (2) |
Debt_ - Debt Compliance and Lon
Debt: - Debt Compliance and Long-Term Lease Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 02, 2018 |
2024 Notes – 8.750%, due December 15, 2024 | |||
Debt Instrument [Line Items] | |||
Leverage ratio under covenant | 3.50 | ||
Unsecured Debt | 2024 Notes – 8.750%, due December 15, 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 8.75% | ||
Unsecured Debt | 2023 Notes – 7.500%, due April 1, 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 7.50% | ||
Line of Credit | Revolving Line of Credit, Due 2015 | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 802 | $ 1,017 | |
Senior secured credit facility | 2024 Notes – 8.750%, due December 15, 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 8.75% | 8.75% | |
Senior secured credit facility | 2023 Notes – 7.500%, due April 1, 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate, percentage | 7.50% |
Debt_ - Interest Expense (Detai
Debt: - Interest Expense (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Expense, Net Disclosure [Line Items] | ||||
Interest expense - long-term debt | $ 338.7 | $ 429 | $ 376.1 | |
Impact of interest rate swaps | (12.2) | (3.5) | 10.1 | |
Interest on capital leases and other | 5.8 | 6.3 | 5.1 | |
Less capitalized interest expense | (6.6) | (3.7) | (7) | |
Total interest expense | $ 13.8 | 331.9 | 901.3 | 875.4 |
Telecommunications network assets (a) | ||||
Interest Expense, Net Disclosure [Line Items] | ||||
Interest expense related to long-term lease obligations | 0 | 467 | 484.9 | |
Real estate contributed to pension plan | ||||
Interest Expense, Net Disclosure [Line Items] | ||||
Interest expense related to long-term lease obligations | $ 6.2 | $ 6.2 | $ 6.2 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)renewal_option | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 162 | $ 161.6 | |
Present value of lease liabilities | $ 72 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 1 year | ||
Lessor, Operating Lease, Renewal Term | 1 year | ||
Lessee, Operating Lease, Renewal Term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 30 years | ||
Lessor, Operating Lease, Renewal Term | 10 years | ||
Lessee, Operating Lease, Renewal Term | 10 years | ||
Outside Communications Plant [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Annual rental payments | $ 659 | ||
Lessee, Operating Lease, Annual Base Rent Escalator | 0.50% | ||
Lessee, Operating Lease, Remaining Lease Term | 10 years 3 months 18 days | ||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Lessee, Operating Lease, Term of Contract | 15 years | ||
Lessee, Operating Lease, Discount Rate | 13.90% | ||
Lessee, Operating Lease, Number Of Renewal Options | renewal_option | 4 | ||
Building [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Number Of Renewal Options | renewal_option | 3 | ||
Lessee, Finance Lease, Renewal Term | 5 years | ||
Building [Member] | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Annual Base Rent Escalator | 2.00% | ||
Building [Member] | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Annual Base Rent Escalator | 3.00% | ||
Property Lease, Twenty Year Lease Term [Member] | Building [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 20 years | ||
Lessee, Finance Lease, Annual Rental Payments | $ 6 | ||
Property Lease, Ten Year Lease Term [Member] | Building [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 10 years |
Leases Lessee - Components of L
Leases Lessee - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Line Items] | |
Finance Lease, Interest Expense | $ 4.1 |
Lease, Cost | 851.7 |
Depreciation and Amortization [Member] | |
Lease, Cost [Line Items] | |
Finance Lease, Right-of-Use Asset, Amortization | 44.4 |
Selling, General and Administrative Expenses | |
Lease, Cost [Line Items] | |
Operating Lease, Cost | $ 803.2 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 4,018 | $ 4,239.1 | $ 0 |
Operating Lease, Liability, Current | 3,791.2 | 3,947.8 | |
Operating lease obligations | 251.6 | $ 317.2 | |
Operating Lease, Liability | 4,042.8 | ||
Liabilities Subject To Compromise, Operating Lease Obligation | (4,040.7) | ||
Operating Lease Liability, Net Amounts Reclassified to Liabilities Subject to Compromise | 2.1 | ||
Finance Lease, Right-Of-Use Asset, Gross | 257.2 | ||
Finance Lease, Right-Of-Use Asset, Accumulated Depreciation | (191.6) | ||
Finance Lease, Right-of-Use Asset | 65.6 | ||
Finance Lease, Liability, Current | 23.3 | ||
Finance Lease, Liability, Noncurrent | 25.6 | ||
Finance Lease, Liability | 48.9 | ||
Liabilities Subject To Compromise, Finance Lease Obligations | (45) | ||
Finance Lease Liability, Net Amounts Reclassified to Liabilities Subject to Compromise | $ 3.9 | ||
Operating Lease, Weighted Average Remaining Lease Term | 10 years | ||
Finance Lease, Weighted Average Remaining Lease Term | 4 years 1 month 6 days | ||
Sale Leaseback Transaction, Weighted Average Remaining Lease Term | 10 years 9 months 18 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 13.90% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 6.60% | ||
Sale Leaseback Transaction, Weighted Average Discount Rate | 8.60% | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Other current liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Liability | $ 4,042.8 | ||
Other liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Liability | $ 4,042.8 |
Leases Supplemental Cash Flows
Leases Supplemental Cash Flows (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Payments | $ 787.4 |
Finance Lease, Interest Payment on Liability | 4.3 |
Finance Lease, Principal Payments | 49.3 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 6.5 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 11.5 |
Leases Lessee - Future Minimum
Leases Lessee - Future Minimum Payments Due (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 789.6 |
2021 | 759.7 |
2022 | 742.8 |
2023 | 728.4 |
2024 | 714.5 |
Thereafter | 3,795.7 |
Total future minimum lease payments | 7,530.7 |
Less: Amounts representing interest | 3,487.9 |
Present value of lease liabilities | 4,042.8 |
Leaseback of Real Estate Contributed to Pension Plan | |
2020 | 6.7 |
2021 | 6.9 |
2022 | 7.1 |
2023 | 7.3 |
2024 | 6.2 |
Thereafter | 48.8 |
Total future minimum lease payments | 83 |
Less: Amounts representing interest | 61.9 |
Sale Leaseback Transaction, Residual Value | 50.9 |
Present value of lease liabilities | 72 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2020 | 25.2 |
2021 | 10.4 |
2022 | 5.7 |
2023 | 5.6 |
2024 | 3.6 |
Thereafter | 10.7 |
Total future minimum lease payments | 61.2 |
Less: Amounts representing interest | 12.3 |
Present value of lease liabilities | $ 48.9 |
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 payments | 102.5 |
Less: Amounts representing interest | 8.4 |
Present value of minimum lease payments | 94.1 |
Outside Communications Plant [Member] | |
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 |
Building [Member] | |
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 - Future Lease Ma
Leases Lessor - Future Lease Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2020 | $ 60.5 |
2021 | 44.5 |
2022 | 24.5 |
2023 | 10.1 |
2024 | 4.4 |
Thereafter | 0.4 |
Total future lease receipts | $ 144.4 |
Leases Lessor - Narrative (Deta
Leases Lessor - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessor, Lease, Description [Line Items] | |
Operating Lease, Lease Income | $ 255.8 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lessor, Operating Lease, Term of Contract | 1 year |
Lessor, Operating Lease, Renewal Term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lessor, Operating Lease, Term of Contract | 20 years |
Lessor, Operating Lease, Renewal Term | 10 years |
Derivatives - Schedule of Inter
Derivatives - Schedule of Interest Rate Swaps (Details) - Interest Rate Swap - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Weighted average fixed rate paid | 2.31% | 2.31% |
Variable rate received | 2.48% | 2.46% |
Other current assets | Designated portion, measured at fair value | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 0 | $ 15.3 |
Other current liabilities | Designated portion, measured at fair value | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 6.8 |
Accumulated other comprehensive income | Designated portion, measured at fair value | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0 | 39.7 |
Accumulated other comprehensive income | De-designated portion, unamortized value | ||
Derivative [Line Items] | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 23.6 | (2.4) |
Liabilities Subject to Compromise [Member] | De-designated portion, unamortized value | ||
Derivative [Line Items] | ||
Liabilities Subject to Compromise, Derivative Liability | $ 6.1 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | Feb. 15, 2019USD ($) | Dec. 31, 2019USD ($)derivativederivatives |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of interest rate swaps held | derivatives | 2 | |
Derivative, Cash Received on Hedge | $ 9.6 | |
Assets needed for immediate settlement | $ 6.1 | |
Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of interest rate swap agreements | derivative | 6 | |
Number of interest rate swaps held | derivative | 3 | |
Weighted average fixed rate paid | 2.984% | |
De-Designated Hedging Instrument | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) to be reclassified during next 12 months | $ (9.8) | |
First Three Interest Rate Swaps with $675M Aggregate Notional Value | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset, Notional Amount | $ 675 | |
Fourth Interest Rate Swap with $200M notional value | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fixed interest rate paid | 1.1275% | |
Derivative Asset, Notional Amount | $ 200 | |
Remaining Two Interest Rate Swap with aggregate notional value of $500M | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fixed interest rate paid | 1.8812% | |
Derivative Asset, Notional Amount | $ 500 |
Derivatives - Changes in Deriva
Derivatives - Changes in Derivative Instruments (Details) - Interest Rate Swap - Other Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Changes in fair value, net of tax | $ (2.4) | $ 2.8 | $ 7 |
De-Designated Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amortization of net unrealized (gains) losses on de-designated interest rate swaps, net of tax | $ (7.9) | $ 2.3 | $ 3.3 |
Derivatives - Derivatives Offse
Derivatives - 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 - Derivatives Off_2
Derivatives - Derivatives Offsetting Liabilities (Details) - Interest Rate Swap $ 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_ - Narr
Fair Value Measurements: - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Events triggering election | No | |
Interest Rate Swap | Other Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease in fair value of interest rate swaps to reflect non-performance risk | $ 2.9 | |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Included in current portion of debt - Level 2 | $ 6,099.3 | $ 5,785.7 |
- Schedule of Fair Values of In
- Schedule of Fair Values of Interest Rate Swaps and Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Cash equivalents - Level 1 (a) | $ 0 | $ 310 |
Level 2 measurements: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Included in current portion of debt - Level 2 | 500 | 4,405.8 |
Level 2 measurements: | Other Liabilities | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Interest rate swap assets - Level 2 | 0 | 15.3 |
Interest rate swap liabilities - Level 2 | 0 | 6.8 |
Fair Value, Measurements, Recurring | Level 2 measurements: | Liabilities Subject to Compromise [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||
Included in current portion of debt - Level 2 | $ 3,676.1 | $ 0 |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Assets and Liabilities [Line Items] | ||
Contract assets | $ 32.8 | $ 12.6 |
Contract liabilities | 162.3 | 184.8 |
Revenues recognized included in the opening contract liability balance | 172.1 | $ 194.9 |
Liabilities Subject to Compromise [Member] | ||
Contract Assets and Liabilities [Line Items] | ||
Contract liabilities | $ 4.4 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Principal Transaction Revenue [Line Items] | |||
Contract assets | $ 32,800,000 | $ 12,600,000 | |
Contract liabilities | 162,300,000 | 184,800,000 | |
Deferred contract costs | 53,800,000 | $ 45,500,000 | |
Amortization of deferred contract costs | 41,200,000 | $ 42,000,000 | |
Impairment loss of deferred contract costs | 0 | ||
Prepaid expenses and other | |||
Principal Transaction Revenue [Line Items] | |||
Contract assets | 20,800,000 | 8,300,000 | |
Deferred contract costs | 34,900,000 | 30,400,000 | |
Other assets | |||
Principal Transaction Revenue [Line Items] | |||
Contract assets | 12,000,000 | 4,300,000 | |
Deferred contract costs | 18,900,000 | 15,100,000 | |
Advance payments and customer deposits | |||
Principal Transaction Revenue [Line Items] | |||
Contract liabilities | 148,000,000 | 172,100,000 | |
Other liabilities | |||
Principal Transaction Revenue [Line Items] | |||
Contract liabilities | $ 9,900,000 | $ 12,700,000 | |
Minimum | |||
Principal Transaction Revenue [Line Items] | |||
Estimated useful life of contract costs | 18 years | ||
Maximum | |||
Principal Transaction Revenue [Line Items] | |||
Estimated useful life of contract costs | 36 years |
Revenues - Revenue Obligations
Revenues - Revenue Obligations (Details) $ in Billions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Amount of remaining obligation | $ 2.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of remaining obligation | 42.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of remaining obligation | 28.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Percentage of remaining obligation | 17.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | $ 1,238.2 | $ 1,270.1 | $ 1,286.5 | $ 1,320.6 | $ 1,393.8 | $ 1,420.6 | $ 1,444.4 | $ 1,454.3 | $ 5,115.4 | $ 5,713.1 | $ 5,852.9 |
Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 2,074.7 | 2,140.5 | |||||||||
Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 2,678.5 | 3,016.9 | |||||||||
Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 362.2 | 384.8 | |||||||||
Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 170.9 | ||||||||||
High-speed Internet bundles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 953.4 | 963.5 | |||||||||
High-speed Internet bundles | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 953.4 | 963.5 | |||||||||
High-speed Internet bundles | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
High-speed Internet bundles | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
High-speed Internet bundles | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Voice-only | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 108.2 | 120.5 | |||||||||
Voice-only | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 108.2 | 120.5 | |||||||||
Voice-only | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Voice-only | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Voice-only | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Video and miscellaneous | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 38.6 | 44.3 | |||||||||
Video and miscellaneous | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 38.6 | 44.3 | |||||||||
Video and miscellaneous | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Video and miscellaneous | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Video and miscellaneous | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Core (a) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 1,153 | 1,349.1 | |||||||||
Core (a) | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Core (a) | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 1,153 | 1,349.1 | |||||||||
Core (a) | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Core (a) | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Strategic (b) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 220.7 | 155.1 | |||||||||
Strategic (b) | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Strategic (b) | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 220.7 | 155.1 | |||||||||
Strategic (b) | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Strategic (b) | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Legacy (c) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 487 | 608.6 | |||||||||
Legacy (c) | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Legacy (c) | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 487 | 608.6 | |||||||||
Legacy (c) | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Legacy (c) | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Small business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 299.5 | 326.1 | |||||||||
Small business | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 299.5 | 326.1 | |||||||||
Small business | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Small business | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Small business | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Wholesale (d) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 480.4 | 525.7 | |||||||||
Wholesale (d) | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 208.3 | 226.7 | |||||||||
Wholesale (d) | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Wholesale (d) | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 272.1 | 299 | |||||||||
Wholesale (d) | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Switched access (e) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 51.6 | 63.3 | |||||||||
Switched access (e) | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 24.3 | 28.4 | |||||||||
Switched access (e) | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Switched access (e) | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 27.3 | 34.9 | |||||||||
Switched access (e) | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 170.4 | ||||||||||
Consumer CLEC | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Consumer CLEC | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Consumer CLEC | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Consumer CLEC | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 170.4 | ||||||||||
Other (g) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 526 | 590.2 | |||||||||
Other (g) | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Other (g) | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 526 | 590.2 | |||||||||
Other (g) | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | 0 | |||||||||
Other (g) | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0 | ||||||||||
Service | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 4,318.4 | 4,916.8 | |||||||||
Service | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 1,632.3 | 1,709.5 | |||||||||
Service | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 2,386.7 | 2,703 | |||||||||
Service | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 299.4 | 333.9 | |||||||||
Service | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 170.4 | ||||||||||
Product and fiber sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 91.8 | 75.9 | $ 93.2 | ||||||||
Product and fiber sales | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 42.9 | 26.5 | |||||||||
Product and fiber sales | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 36.3 | 48.9 | |||||||||
Product and fiber sales | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 12.6 | 0 | |||||||||
Product and fiber sales | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 0.5 | ||||||||||
Total revenue from contracts with customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 4,410.2 | 4,992.7 | |||||||||
Total revenue from contracts with customers | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 1,675.2 | 1,736 | |||||||||
Total revenue from contracts with customers | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 2,423 | 2,751.9 | |||||||||
Total revenue from contracts with customers | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 312 | 333.9 | |||||||||
Total revenue from contracts with customers | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 170.9 | ||||||||||
Other service revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 705.2 | 720.4 | |||||||||
Other service revenues | Kinetic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 399.5 | 404.5 | |||||||||
Other service revenues | Enterprise | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | 255.5 | 265 | |||||||||
Other service revenues | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | $ 50.2 | 50.9 | |||||||||
Other service revenues | Consumer CLEC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues and sales | $ 0 |
Employee Benefit Plans and Po_3
Employee Benefit Plans and Postretirement Benefits: - Components of Pension Expense and Postretirement Expense (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Amortization of prior service credit (b) | $ 2.8 | |||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits earned during the year (a) | $ 3 | $ 3.5 | $ 8.1 | |
Interest cost on benefit obligation (b) | 43.8 | 43.1 | 46.3 | |
Net actuarial loss (b) | 6.7 | 14.9 | 10.5 | |
Amortization of net actuarial loss (b) | 0 | 0 | 0 | |
Amortization of prior service credit (b) | (1) | (4.8) | (0.4) | |
Plan curtailments (b) | 0 | (2.7) | 0 | |
Expected return on plan assets (b) | (49.5) | (55) | (54.4) | |
Net periodic benefit expense (income) | 3 | (1) | 10.1 | |
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefits earned during the year (a) | 0 | 0 | 0 | |
Interest cost on benefit obligation (b) | 0.8 | 0.8 | 1.1 | |
Net actuarial loss (b) | 0 | 0 | 0 | |
Amortization of net actuarial loss (b) | 0 | 0.2 | 0.1 | |
Amortization of prior service credit (b) | (0.3) | (0.3) | (0.3) | |
Plan curtailments (b) | (0.1) | 0 | 0 | |
Expected return on plan assets (b) | 0 | 0 | 0 | |
Net periodic benefit expense (income) | $ 0.4 | $ 0.7 | $ 0.9 |
Employee Benefit Plans and Po_4
Employee Benefit Plans and Postretirement Benefits: - Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Expense (Income) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 29, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discount rate | 4.31% | |||||
Actuarial gain (loss) | $ (2.7) | |||||
Prior service credit | 2.8 | |||||
Net actuarial gain recognized as a result of remeasurement | $ (5.6) | |||||
Pension Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discount rate | 3.37% | 4.34% | 3.68% | |||
Actuarial gain (loss) | $ 121 | $ (80.8) | ||||
Prior service credit | $ (1) | $ (4.8) | $ (0.4) | |||
Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discount rate | 3.37% | 4.38% | ||||
Actuarial gain (loss) | $ 2.5 | $ (7.2) | ||||
Prior service credit | $ (0.3) | $ (0.3) | $ (0.3) | |||
Minimum percentage of unrecognized actuarial gains or losses that are amortized over the lesser of 10 years or the average remaining service life of active employees | 10.00% | |||||
Amortization period, maximum | 10 years | |||||
Change In Discount Rate | Pension Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Actuarial gain (loss) | $ 109 | |||||
Change In Discount Rate | Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Actuarial gain (loss) | 2.5 | |||||
Other Assumption Changes | Pension Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Actuarial gain (loss) | 3 | |||||
Other Assumption Changes | Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Actuarial gain (loss) | 0.5 | |||||
Change In Plan Provisions | Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Actuarial gain (loss) | 0.4 | |||||
Plan Experience | Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Actuarial gain (loss) | $ 0.3 |
Employee Benefit Plans and Po_5
Employee Benefit Plans and Postretirement Benefits: - Summary of Plan Assets, Projected Benefit Obligation and Funded Status of Plans (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Change in Fair Value of Plan Assets | ||||
Employer contributions | $ 15.2 | |||
Change in Projected Benefit Obligation | ||||
Actuarial (gain) loss | $ (2.7) | |||
Pension Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets at beginning of year | 740.9 | $ 841.4 | ||
Actual return on plan assets | 163.8 | (41.1) | ||
Employer contributions | 15.9 | 18.5 | ||
Participant contributions | 0 | 0 | ||
Benefits paid | (66.6) | (77.9) | ||
Settlements | 0 | 0 | ||
Fair value of plan assets at end of year | 854 | 740.9 | $ 841.4 | |
Change in Projected Benefit Obligation | ||||
Projected benefit obligation at beginning of year | 1,043 | 1,157.9 | ||
Interest cost on projected benefit obligations | 43.8 | 43.1 | 46.3 | |
Service cost, including amounts capitalized amounts related to capital projects | 4.5 | 6.2 | ||
Service cost | 3 | 3.5 | 8.1 | |
Plan amendments | 0 | (2.8) | ||
Actuarial (gain) loss | 121 | (80.8) | ||
Curtailments | 0 | (2.7) | ||
Projected benefit obligation at end of year | 1,145.7 | 1,043 | 1,157.9 | |
Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: | ||||
Current liabilities | (53.7) | (16) | ||
Noncurrent liabilities | (238) | (286.1) | ||
Funded status recognized in the consolidated balance sheets | (291.7) | (302.1) | ||
Amounts recognized in accumulated other comprehensive income: | ||||
Net actuarial loss (gain) | 0 | 0 | ||
Prior service credits | 7.2 | 8.2 | ||
Net amount recognized in accumulated other comprehensive income | 7.2 | 8.2 | ||
Pension benefits paid from company assets | 0.8 | 0.8 | ||
Postretirement Benefits | ||||
Change in Fair Value of Plan Assets | ||||
Fair value of plan assets at beginning of year | 0.4 | 0.4 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 0.8 | 1.3 | ||
Participant contributions | 2.7 | 2.8 | ||
Benefits paid | (3.5) | (4.1) | ||
Settlements | 0 | 0 | ||
Fair value of plan assets at end of year | 0.4 | 0.4 | 0.4 | |
Change in Projected Benefit Obligation | ||||
Projected benefit obligation at beginning of year | 19.7 | 27.4 | ||
Interest cost on projected benefit obligations | 0.8 | 0.8 | 1.1 | |
Service cost | 0 | 0 | 0 | |
Plan amendments | (0.3) | 0 | ||
Actuarial (gain) loss | 2.5 | (7.2) | ||
Curtailments | 0 | 0 | ||
Projected benefit obligation at end of year | 21.9 | 19.7 | $ 27.4 | |
Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: | ||||
Current liabilities | (1.3) | (1.3) | ||
Noncurrent liabilities | (20.2) | (18) | ||
Funded status recognized in the consolidated balance sheets | (21.5) | (19.3) | ||
Amounts recognized in accumulated other comprehensive income: | ||||
Net actuarial loss (gain) | (1) | 1.5 | ||
Prior service credits | 0.8 | 0.9 | ||
Net amount recognized in accumulated other comprehensive income | (0.2) | $ 2.4 | ||
Contribution to postretirement plan | $ 0.8 |
Employee Benefit Plans and Po_6
Employee Benefit Plans and Postretirement Benefits: - Actuarial Assumptions Used to Calculate Pension and Postretirement Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation for company pension plan and executive retirement agreements | $ 1,133.1 | $ 1,033.2 | $ 1,141.7 |
Discount rate | 4.34% | 4.00% | 4.19% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | 2.00% | 2.00% | 2.00% |
Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.38% | 3.74% | 4.26% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Employee Benefit Plans and Po_7
Employee Benefit Plans and Postretirement Benefits: - Actuarial Assumptions Used to Calculate the Projected Benefit Obligations (Details) | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 29, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 4.31% | |||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 3.37% | 4.34% | 3.68% | |
Expected return on plan assets | 7.00% | 7.00% | ||
Rate of compensation increase | 2.00% | 2.00% | ||
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 3.37% | 4.38% | ||
Expected return on plan assets | 7.00% | 7.00% | ||
Rate of compensation increase | 0.00% | 0.00% |
Employee Benefit Plans and Po_8
Employee Benefit Plans and Postretirement Benefits: - Information Regarding the Healthcare Cost Trend Rate (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare cost trend rate assumed for next year | 7.00% | 6.25% |
Rate that the cost trend ultimately declines to | 5.00% | 5.00% |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected return on plan assets | 7.00% | 7.00% |
Pension Benefits | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 31.00% | |
Pension Benefits | Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 49.00% | |
Pension Benefits | Real estate LLCs | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 20.00% |
Employee Benefit Plans and Po_9
Employee Benefit Plans and Postretirement Benefits: - Asset Allocation for the Pension Plan, by Asset Category (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 32.30% | 24.40% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 46.80% | 53.50% |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 19.20% | 21.60% |
Money market and other short-term interest bearing securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 1.70% | 0.50% |
Minimum | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 23.70% | |
Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 32.60% | |
Minimum | Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 12.30% | |
Minimum | Money market and other short-term interest bearing securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Maximum | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 38.70% | |
Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 62.60% | |
Maximum | Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 27.30% | |
Maximum | Money market and other short-term interest bearing securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 6.50% |
Employee Benefit Plans and P_10
Employee Benefit Plans and Postretirement Benefits: - Fair Values of Pension and Post Retirement Benefit Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 854 | $ 740.9 | $ 841.4 |
Pension Benefits | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 68.8 | 71.1 | 73.5 |
Pension Benefits | Real estate LLCs | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 68.8 | 70.3 | 72.7 |
Pension Benefits | Guaranteed annuity contract | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0.8 | $ 0.8 |
Fair Value, Measurements, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 854 | 740.9 | |
Fair Value, Measurements, Recurring | Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 852.3 | 742.8 | |
Fair Value, Measurements, Recurring | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 624 | 606.3 | |
Fair Value, Measurements, Recurring | Pension Benefits | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 47.2 | 93.9 | |
Fair Value, Measurements, Recurring | Pension Benefits | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 508 | 441.3 | |
Fair Value, Measurements, Recurring | Pension Benefits | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 68.8 | 71.1 | |
Fair Value, Measurements, Recurring | Pension Benefits | Money market fund and interest bearing cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 53.2 | 41 | |
Fair Value, Measurements, Recurring | Pension Benefits | Money market fund and interest bearing cash | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Money market fund and interest bearing cash | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 53.2 | 41 | |
Fair Value, Measurements, Recurring | Pension Benefits | Money market fund and interest bearing cash | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common collective and other trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 282.1 | 137.6 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common collective and other trust funds | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common collective and other trust funds | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 282.1 | 137.6 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common collective and other trust funds | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 170.9 | 241.1 | |
Fair Value, Measurements, Recurring | Pension Benefits | Government and agency securities | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Government and agency securities | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 170.9 | 241.1 | |
Fair Value, Measurements, Recurring | Pension Benefits | Government and agency securities | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Corporate bonds and asset backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 21.6 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Corporate bonds and asset backed securities | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Corporate bonds and asset backed securities | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 21.6 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Corporate bonds and asset backed securities | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 21.1 | 21.8 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - domestic | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 21.1 | 21.8 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - domestic | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - domestic | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - international | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 25.3 | 29.2 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - international | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 25.3 | 29.2 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - international | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Common and preferred stocks - international | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Mutual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 42.5 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Mutual fund | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 42.5 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Mutual fund | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Mutual fund | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | ||
Fair Value, Measurements, Recurring | Pension Benefits | Real estate LLCs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 68.8 | 70.3 | |
Fair Value, Measurements, Recurring | Pension Benefits | Real estate LLCs | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Real estate LLCs | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Real estate LLCs | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 68.8 | 70.3 | |
Fair Value, Measurements, Recurring | Pension Benefits | Guaranteed annuity contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 2.6 | 1.2 | |
Fair Value, Measurements, Recurring | Pension Benefits | Guaranteed annuity contract | Quoted Price in Active Markets for Identical Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0.8 | 0.4 | |
Fair Value, Measurements, Recurring | Pension Benefits | Guaranteed annuity contract | Significant Other Observable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 1.8 | 0 | |
Fair Value, Measurements, Recurring | Pension Benefits | Guaranteed annuity contract | Significant Unobservable Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 0 | 0.8 | |
Fair Value, Measurements, Recurring | Pension Benefits | Pooled funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 184.9 | 96.5 | |
Fair Value, Measurements, Recurring | Pension Benefits | Real estate and private equity funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 43.4 | 40 | |
Fair Value, Measurements, Recurring | Pension Benefits | Dividends and interest receivable | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | 4.8 | 1 | |
Fair Value, Measurements, Recurring | Pension Benefits | Pending trades and other liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 3.1 | $ (2.9) |
Employee Benefit Plans and P_11
Employee Benefit Plans and Postretirement Benefits: - Pension Plan Assets, Unobservable Input Reconciliation (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 740.9 | $ 841.4 |
Fair value of plan assets at end of year | 854 | 740.9 |
Significant Unobservable Inputs | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 71.1 | 73.5 |
Unrealized (loss) gains | (1.4) | (2.3) |
Purchases and sales, net | (0.9) | (0.1) |
Fair value of plan assets at end of year | 68.8 | 71.1 |
Significant Unobservable Inputs | Real estate LLCs | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 70.3 | 72.7 |
Unrealized (loss) gains | (1.5) | (2.4) |
Purchases and sales, net | 0 | 0 |
Fair value of plan assets at end of year | 68.8 | 70.3 |
Significant Unobservable Inputs | Guaranteed annuity contract | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0.8 | 0.8 |
Unrealized (loss) gains | 0.1 | 0.1 |
Purchases and sales, net | (0.9) | (0.1) |
Fair value of plan assets at end of year | $ 0 | $ 0.8 |
Employee Benefit Plans and P_12
Employee Benefit Plans and Postretirement Benefits: - Estimated Future Employer Contributions, Benefit Payments, Including Executive Retirement Agreements (Details) $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2020 | $ 52.8 |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2020 | 53.7 |
Expected benefit payments: | |
2020 | 80.1 |
2021 | 79 |
2022 | 77.5 |
2023 | 75.2 |
2024 | 74.1 |
2025-2029 | 345.6 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2020 | 1.3 |
Expected benefit payments: | |
2020 | 1.3 |
2021 | 1.2 |
2022 | 1.2 |
2023 | 1.2 |
2024 | 1.1 |
2025-2029 | $ 6.1 |
Employee Benefit Plans and P_13
Employee Benefit Plans and Postretirement Benefits: - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contributions in 2020 | $ 52.8 | ||
Matching contribution to employee savings accounts, maximum | 4.00% | ||
Matching contribution to employee savings accounts, employees contributions, minimum | 5.00% | ||
Recorded expenses related to the employee savings plan | $ 25.5 | $ 22 | $ 22.9 |
Annual matching contribution to defined contribution plan, Common Stock (in shares) | 3.6 | 0.6 | |
Value of contributions by employer to defined contribution plan, Common Stock | $ 28.3 | $ 22.7 | |
Cash contributions by employer to defined contribution plan | 26.4 | $ 0.6 | |
Other Pension, Postretirement and Supplemental Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contributions in 2020 | $ 0.9 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans: - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized after reverse stock split | $ 6.8 | |||
Option, maximum term | 10 years | |||
Weighted-average fair value of stock options granted during the year (usd per share) | $ 4.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life | 6 years 1 month 6 days | |||
Expected volatility | 58.70% | |||
Risk-free interest rate | 2.60% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 900,000 | 1,000,000 | ||
Compensation not yet recognized | $ 1.2 | |||
Weighted average vesting period | 1 year 2 months 12 days | |||
Share-based compensation | $ 2.9 | $ 13.3 | $ 35.8 | |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 2,300,000 | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 1,100,000 | ||
Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based compensation | $ 2.9 | $ 13.3 | $ 35.8 | |
Common Stock and Additional Paid-In Capital | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Share-based compensation | $ 1.1 | $ 1 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans: - Restricted Stock Unit Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Operating target consideration period | 3 years | ||
Granted (in shares) | 0 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Granted (in shares) | 698,500 | 700,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value | $ 2.4 | $ 26.1 | |
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Award vesting period | 2 years | ||
Share based compensation arrangement by share based payment award vested shares as percentage of award | 0.00% | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Award vesting period | 3 years | ||
Share based compensation arrangement by share based payment award vested shares as percentage of award | 150.00% |
Share-Based Compensation Plan_5
Share-Based Compensation Plans: - Restricted Stock Vesting Periods and Grant Date Fair Value for Shares Issued (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | 150,700 | 1,110,200 |
Grant date fair value (Dollars in millions) | $ 0 | $ 1.1 | $ 33.3 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 698,500 | 700,000 | |
Vest variably over remaining service period, up to three-years | Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | 0 | 571,700 |
Vest ratably over a three-year service period | Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | 0 | 490,300 |
Vest one year from date of grant, service based - granted to non-employee directors | Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | 109,600 | 41,400 |
Vest immediately on date of grant, service based - granted to non-employee directors | Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | 41,100 | 0 |
Vest three years from date of grant, service based | Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total granted (in shares) | 0 | 0 | 6,800 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans: - Restricted Share Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
(Thousands) Underlying Number of Shares | |||
Granted (in shares) | 0 | ||
Restricted Stock and Restricted Stock Units | |||
(Thousands) Underlying Number of Shares | |||
Beginning balance (in shares) | 522,100 | ||
Granted (in shares) | 0 | 150,700 | 1,110,200 |
Vested (in shares) | (143,500) | ||
Forfeited (in shares) | (19,000) | ||
Ending balance (in shares) | 359,600 | 522,100 | |
Weighted Average Fair Value Per Share | |||
Beginning balance (usd per share) | $ 23.34 | ||
Granted (usd per share) | 0 | ||
Vested (usd per share) | 32.57 | ||
Forfeited (usd per share) | 34.83 | ||
Ending balance (usd per share) | $ 19.05 | $ 23.34 | |
Restricted Stock Units (RSUs) | |||
(Thousands) Underlying Number of Shares | |||
Beginning balance (in shares) | 325,400 | ||
Granted (in shares) | 698,500 | 700,000 | |
Vested (in shares) | (160,800) | ||
Forfeited (in shares) | (740,100) | ||
Ending balance (in shares) | 123,000 | 325,400 | |
Weighted Average Fair Value Per Share | |||
Beginning balance (usd per share) | $ 28.35 | ||
Granted (usd per share) | 3.40 | ||
Vested (usd per share) | 28.91 | ||
Forfeited (usd per share) | 4.77 | ||
Ending balance (usd per share) | $ 27.80 | $ 28.35 |
Share-Based Compensation Plan_7
Share-Based Compensation Plans: - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option, maximum term | 10 years | ||
Unrecognized compensation expense | $ 0.6 | ||
Weighted average vesting period | 1 year 2 months 12 days | ||
Fair value of shares vested | $ 9.3 | $ 22.7 | $ 40 |
Share-based compensation expense | $ 2.9 | 13.3 | 35.8 |
Operating target consideration period | 3 years | ||
Common Stock and Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2.9 | 13.3 | 35.8 |
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock and Restricted Stock Units | Common Stock and Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.6 | $ 10.3 | $ 32.5 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 1,100,000 | |
Employee Stock Option | Common Stock and Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.1 | $ 1 |
Share-Based Compensation Plan_8
Share-Based Compensation Plans: - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Share-based Compensation Expense [Line Items] | |||
Employee savings plan (See Note 9) | $ 0 | $ 0 | $ 22.9 |
Share-based compensation expense | 2.7 | 11.3 | 55.4 |
Common Stock and Additional Paid-In Capital | Restricted Stock and Restricted Stock Units | |||
Schedule of Share-based Compensation Expense [Line Items] | |||
Restricted stock and restricted units and stock options | $ 2.7 | $ 11.3 | $ 32.5 |
Merger, Integration and Other_3
Merger, Integration and Other Costs and Restructuring Charges - Additional Information (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)employee | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring, number of positions eliminated | 800 | 730 | 1,100 | ||
Merger, integration and restructuring costs incurred, net of tax | $ 27.5 | $ 56.4 | $ 113.6 | ||
Severance and Benefit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Costs incurred | 28.5 | $ 28.5 | $ 28.5 | 24.6 | 35 |
Lease Termination Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Costs incurred | 20.4 | 8 | |||
EarthLink | Severance and Benefit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 5 | 6.9 | 39 | ||
EarthLink | Lease Termination Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 4.9 | 22.5 | |||
EarthLink | Investment Banking, Legal and Other Consulting Services | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 24 | ||||
EarthLink | Other Miscellaneous Expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 1.8 | 3.7 | 3.2 | ||
EarthLink | Compensation Expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 10.1 | ||||
EarthLink | Rebranding and Marketing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 5.3 | ||||
Broadview measurement period | Severance and Benefit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1.8 | 4.7 | |||
Broadview measurement period | Lease Termination Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 2.3 | 3.7 | |||
Broadview measurement period | Investment Banking, Legal and Other Consulting Services | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 4.5 |
Merger, Integration and Other_4
Merger, Integration and Other Costs and Restructuring Charges - Summary of Merger, Integration and Other Costs and Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Legal fees related to Uniti spin-off litigation (see Note 17) | $ 0.3 | $ 7.2 | $ 7.5 |
Network optimization and contract termination costs | 0 | 0 | 8.5 |
IT conversion, consulting and other costs | 1.2 | 2.6 | 3 |
Total merger, integration and other costs | 8.3 | 31.9 | 137.4 |
Restructuring charges | 28.5 | 45 | 43 |
Total merger, integration and other costs and restructuring charges | 36.8 | 76.9 | 180.4 |
EarthLink | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs related to acquisitions and mergers | 6.8 | 15.5 | 104.1 |
Broadview measurement period | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs related to acquisitions and mergers | 0 | 4.1 | 14.3 |
MASS and ATC | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs related to acquisitions and mergers | 0 | 2.5 | 0 |
Severance and Benefit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 28.5 | 24.6 | |
Severance and Benefit Costs | EarthLink | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 5 | 6.9 | 39 |
Severance and Benefit Costs | Broadview measurement period | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1.8 | 4.7 | |
Lease Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 20.4 | |
Lease Termination Costs | EarthLink | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 4.9 | 22.5 | |
Lease Termination Costs | Broadview measurement period | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 2.3 | 3.7 | |
Other Miscellaneous Expense | EarthLink | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 1.8 | $ 3.7 | $ 3.2 |
Merger, Integration and Other_5
Merger, Integration and Other Costs and Restructuring Charges - Summary of Activities Related to Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Expenses incurred in period | $ 28.5 | $ 45 | $ 43 |
Merger, Integration and Other Charges | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 4 | 10.3 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | (4) | ||
Expenses incurred in period | 8.3 | 31.9 | |
Cash outlays during the period | (8.3) | (38.2) | |
Balance, ending of period | 0 | 4 | 10.3 |
Severance and Benefit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 12.6 | 5 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | 0 | ||
Expenses incurred in period | 28.5 | 24.6 | |
Cash outlays during the period | (33) | (17) | |
Balance, ending of period | 8.1 | 12.6 | 5 |
Lease Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 15.3 | 4.2 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | (15.3) | ||
Expenses incurred in period | 0 | 20.4 | |
Cash outlays during the period | 0 | (9.3) | |
Balance, ending of period | 0 | 15.3 | 4.2 |
Total | |||
Restructuring Reserve [Roll Forward] | |||
Balance, beginning of period | 31.9 | 19.5 | |
Reclassified to operating lease liability due to adoption of ASU2016-02 | (19.3) | ||
Expenses incurred in period | 36.8 | 76.9 | |
Cash outlays during the period | (41.3) | (64.5) | |
Balance, ending of period | $ 8.1 | $ 31.9 | $ 19.5 |
Gain on Sale of Consumer CLEC_2
Gain on Sale of Consumer CLEC Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of Consumer CLEC business | $ 0 | $ 320.9 | $ 0 |
Gain on sale of Consumer CLEC business | $ 0 | 145.4 | 0 |
Consumer CLEC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of Consumer CLEC business | 320.9 | ||
Gain on sale of Consumer CLEC business | 145.4 | ||
Revenue from disposal | $ 92.5 | $ 87.3 | |
Sales Revenue, Net | Consumer CLEC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration percentage | 3.00% | ||
Assets, Total | Consumer CLEC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Concentration percentage | 2.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - AOCI Balances (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension and postretirement plans | $ 5 | $ 7.7 | $ 4 |
Unrealized holding gains (losses) on interest rate swaps | |||
Accumulated other comprehensive income | 22.6 | 35.6 | 21.4 |
Interest Rate Swap | |||
Unrealized holding gains (losses) on interest rate swaps | |||
Designated portion | 0 | 29.7 | 20.7 |
De-designated portion | $ 17.6 | $ (1.8) | $ (3.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - AOCI Roll-Forward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Pension and Postretirement Plans | |
Accumulated other comprehensive income [Roll Forward] | |
Beginning Balance | $ 7.7 |
Prior service credit arising during the period | 0.3 |
Other comprehensive income before reclassifications | (2) |
Amounts reclassified from accumulated comprehensive income | (1) |
Ending Balance | 5 |
Total | |
Accumulated other comprehensive income [Roll Forward] | |
Beginning Balance | 35.6 |
Prior service credit arising during the period | 0.3 |
Other comprehensive income before reclassifications | (4.4) |
Amounts reclassified from accumulated comprehensive income | (8.9) |
Ending Balance | 22.6 |
Interest Rate Swap | Net Gains on Interest Rate Swaps | |
Accumulated other comprehensive income [Roll Forward] | |
Beginning Balance | 27.9 |
Prior service credit arising during the period | 0 |
Other comprehensive income before reclassifications | (2.4) |
Amounts reclassified from accumulated comprehensive income | (7.9) |
Ending Balance | $ 17.6 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - AOCI Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | $ (7.8) | $ (4.9) | $ (2.3) |
Income tax benefit (expense) | (320) | 449.1 | (408.1) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net loss | (8.9) | (1.3) | 2.8 |
Reclassification out of Accumulated Other Comprehensive Income | Losses on interest rate swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Loss before income taxes | (10.6) | 3 | 5.3 |
Income tax benefit (expense) | 2.7 | (0.7) | (2) |
Net loss | (7.9) | 2.3 | 3.3 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and postretirement plans: | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Loss before income taxes | (1.2) | (4.9) | (0.6) |
Income tax benefit (expense) | 0.2 | 1.3 | 0.1 |
Net loss | (1) | (3.6) | (0.5) |
Reclassification out of Accumulated Other Comprehensive Income | Plan curtailments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | 0.1 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of net actuarial loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | 0 | 0.2 | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service credits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | (1.3) | (5.1) | (0.7) |
Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swap | Losses on interest rate swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | $ (10.6) | $ 3 | $ 5.3 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (0.1) | $ (0.3) | $ 0.3 |
State | 0.5 | (7.6) | (4.9) |
Current Income Tax Expense (Benefit), Total | 0.4 | (7.9) | (4.6) |
Deferred: | |||
Federal | 254.6 | (356.1) | 328 |
State | 65 | (85.1) | 84.7 |
Deferred income taxes | 319.6 | (441.2) | 412.7 |
Income tax benefit (expense) | $ 320 | $ (449.1) | $ 408.1 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Increase (decrease) | |||
State income taxes, net of federal benefit | 4.20% | 3.90% | 3.60% |
Adjust deferred taxes for state net operating loss carryforward | 0.00% | 0.10% | 0.00% |
Transaction costs | 0.00% | 0.00% | (0.10%) |
Valuation allowance | (1.70%) | (183.10%) | (0.10%) |
Research and development credit | 0.00% | (1.00%) | 0.10% |
Share-based compensation | 0.00% | (1.00%) | (0.10%) |
Debt exchange | (0.20%) | 6.80% | (6.10%) |
2017 federal tax reform | 0 | 0 | (0.076) |
Goodwill impairment | (13.20%) | 0.00% | (8.40%) |
Sale of Consumer CLEC business | 0 | (0.093) | 0 |
Effective income tax rate reconciliation, Reorganization item, net | (0.80%) | 0.00% | 0.00% |
Other items, net | (0.10%) | (1.40%) | (0.10%) |
Effective income tax rate | 9.20% | (164.00%) | 16.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ 189.2 | $ 685 | ||
Valuation allowance, deferred tax asset, amount of increase | 26.7 | 35.8 | ||
Unrecognized tax benefits that would impact effective tax rate | 7.6 | 7.6 | $ 8.3 | |
Interest and penalties accrued on unrecognized tax benefits | 0.2 | 0.1 | 0.2 | |
Interest and penalties recognized on unrecognized tax benefits | 0.5 | 0.3 | $ 0.3 | |
Internal Revenue Service (IRS) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 1,807.9 | 1,920.2 | ||
Tax credit carryforwards | 21.8 | 21.8 | ||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 2,471.8 | 2,456.6 | ||
Tax credit carryforwards | 14.9 | 17.7 | ||
Federal And State Loss Carryover | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 162.5 | $ 541 | ||
Adoption of ASU 2016-02 (See Note 2) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance, deferred tax asset, amount of increase | $ 541.5 | |||
Deferred Income Tax Liabilities, Net | $ 833.8 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $ 422.6 | $ 825.5 |
Goodwill and other intangible assets | 215.6 | 477.7 |
Operating loss and credit carryforward | (548) | (576.8) |
Postretirement and other employee benefits | (77.4) | (79.6) |
Unrealized holding loss and interest rate swaps | (1) | |
Unrealized holding loss and interest rate swaps | 7.2 | |
Deferred compensation | (2.2) | (2.3) |
Bad debt | (21.4) | (15.1) |
Long-term lease obligations | (1,033.8) | (1,170.9) |
Operating lease right-of-use assets | 1,008 | 0 |
Deferred debt costs | (36.8) | (19.2) |
Share-based compensation | (4.5) | (6.8) |
Interest expense | (30.4) | 0 |
Other, net | (7.3) | (20.4) |
Deferred tax liability (asset), gross | (116.6) | (580.7) |
Valuation allowance | 189.2 | 685 |
Less amounts reclassified to liabilities subject to compromise | (72.6) | 0 |
Deferred tax assets | (1,813.7) | (1,954) |
Deferred tax liabilities | 1,886.3 | 2,058.3 |
Deferred tax liabilities, net | $ 0 | $ 104.3 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 8 | $ 8.7 | $ 8.8 |
Additions based on EarthLink acquisition | 0 | 0 | 2.5 |
Additions based on tax positions related to current year | 0 | 0 | 0.7 |
Reductions for tax positions of prior years | 0 | (0.7) | (1.2) |
Settlements | 0 | 0 | (2.1) |
Ending balance | $ 8 | $ 8 | $ 8.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Feb. 15, 2019USD ($) | Feb. 28, 2017lawsuit | Dec. 31, 2018lawsuit | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Litigation settlement, amount awarded to other party | $ 310,459,959.10 | |||
Number of shareholders filing class action complaints | lawsuit | 2 | |||
Number of claims filed | lawsuit | 2 | |||
USAC accrued funding | $ 16,600,000 | |||
USAC funding previously remitted | $ 6,000,000 | |||
Senior Notes Due August 2023 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, percentage | 6.375% |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Revenues to Consolidated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues and sales: | $ 1,238.2 | $ 1,270.1 | $ 1,286.5 | $ 1,320.6 | $ 1,393.8 | $ 1,420.6 | $ 1,444.4 | $ 1,454.3 | $ 5,115.4 | $ 5,713.1 | $ 5,852.9 |
Costs and expenses | 7,992.9 | 5,416.5 | 7,443.5 | ||||||||
Segment income | $ (38.8) | $ (34.5) | $ (422.9) | $ (2,381.3) | $ 63.7 | $ 75.6 | $ 88.3 | $ 69 | (2,877.5) | 296.6 | (1,590.6) |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues and sales: | 5,115.4 | 5,713.1 | 5,852.9 | ||||||||
Costs and expenses | 3,146.1 | 3,528.8 | 3,627.3 | ||||||||
Segment income | 1,969.3 | 2,184.3 | 2,225.6 | ||||||||
Consumer & Small Business | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues and sales: | 2,074.7 | 2,140.5 | 2,258.5 | ||||||||
Costs and expenses | 885.6 | 884.4 | 937.2 | ||||||||
Segment income | 1,189.1 | 1,256.1 | 1,321.3 | ||||||||
Enterprise | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues and sales: | 2,678.5 | 3,016.9 | 3,032.9 | ||||||||
Costs and expenses | 2,159.1 | 2,454.9 | 2,497 | ||||||||
Segment income | 519.4 | 562 | 535.9 | ||||||||
Wholesale | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues and sales: | 362.2 | 384.8 | 399 | ||||||||
Costs and expenses | 101.4 | 111.1 | 111.3 | ||||||||
Segment income | 260.8 | 273.7 | 287.7 | ||||||||
Consumer CLEC | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues and sales: | 0 | 170.9 | 162.5 | ||||||||
Costs and expenses | 0 | 78.4 | 81.8 | ||||||||
Segment income | $ 0 | $ 92.5 | $ 80.7 |
Segment Information Schedule of
Segment Information Schedule of Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | $ 878.5 | $ 820.2 | $ 908.6 |
Kinetic | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | 454.8 | 369.8 | 391.8 |
Enterprise | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | 152.5 | 187.6 | 199.7 |
Wholesale | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | 27.3 | 31.3 | 32.4 |
Corporate, Non-Segment | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | $ 243.9 | 231.5 | 284.7 |
EarthLink | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | $ 37.6 | ||
Broadview | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | 34.5 | ||
Project Excel | Corporate, Non-Segment | |||
Schedule of Capital Expenditures By Segment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | $ 49.9 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Segment Income to Consolidated Net Income (Details) - USD ($) | Nov. 01, 2018 | Aug. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Segment income | $ (38,800,000) | $ (34,500,000) | $ (422,900,000) | $ (2,381,300,000) | $ 63,700,000 | $ 75,600,000 | $ 88,300,000 | $ 69,000,000 | $ (2,877,500,000) | $ 296,600,000 | $ (1,590,600,000) | |||
Depreciation and amortization | (1,068,200,000) | (1,526,700,000) | (1,470,000,000) | |||||||||||
Goodwill impairment | $ 0 | (373,300,000) | (2,339,000,000) | (2,712,300,000) | 0 | (1,840,800,000) | ||||||||
Merger, integration and other costs | (8,300,000) | (31,900,000) | (137,400,000) | |||||||||||
Restructuring charges | (28,500,000) | (45,000,000) | (43,000,000) | |||||||||||
Straight-line expense under contractual arrangement with Uniti | (675,200,000) | 0 | 0 | |||||||||||
Costs and expenses | (7,992,900,000) | (5,416,500,000) | (7,443,500,000) | |||||||||||
Other expense, net | (7,800,000) | (4,900,000) | (2,300,000) | |||||||||||
Gain on sale of Consumer CLEC business | 0 | 145,400,000 | 0 | |||||||||||
Net gain (loss) on early extinguishment of debt | $ 190,300,000 | 190,300,000 | 0 | 190,300,000 | (56,400,000) | |||||||||
Reorganization items, net | (41,100,000) | (29,200,000) | (85,400,000) | (104,900,000) | (260,600,000) | 0 | 0 | |||||||
Interest expense (contractual interest for the year ended December 31, 2019 of $493.2) | $ (13,800,000) | (331,900,000) | (901,300,000) | (875,400,000) | ||||||||||
Income tax benefit (expense) | 320,000,000 | (449,100,000) | 408,100,000 | |||||||||||
Net loss | (187,900,000) | $ (115,500,000) | $ (544,100,000) | $ (2,310,300,000) | $ (549,200,000) | $ 41,300,000 | $ (93,700,000) | $ (121,400,000) | (3,157,800,000) | (723,000,000) | (2,116,600,000) | |||
Minimum Purchase Commitment Penalty | 102,500,000 | |||||||||||||
Reserve for USAC funding denial | $ 19,700,000 | 19,700,000 | ||||||||||||
Corporate, Non-Segment | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Costs and expenses | (354,300,000) | (284,100,000) | (325,000,000) | |||||||||||
Operating Segments | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Segment income | 1,969,300,000 | 2,184,300,000 | 2,225,600,000 | |||||||||||
Costs and expenses | $ (3,146,100,000) | $ (3,528,800,000) | $ (3,627,300,000) |
Quarterly Financial Informati_3
Quarterly Financial Information – (Unaudited) - Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues and sales: | $ 1,238.2 | $ 1,270.1 | $ 1,286.5 | $ 1,320.6 | $ 1,393.8 | $ 1,420.6 | $ 1,444.4 | $ 1,454.3 | $ 5,115.4 | $ 5,713.1 | $ 5,852.9 |
Operating income | (38.8) | (34.5) | (422.9) | (2,381.3) | 63.7 | 75.6 | 88.3 | 69 | (2,877.5) | 296.6 | (1,590.6) |
Net (loss) income | $ (187.9) | $ (115.5) | $ (544.1) | $ (2,310.3) | $ (549.2) | $ 41.3 | $ (93.7) | $ (121.4) | $ (3,157.8) | $ (723) | $ (2,116.6) |
Basic and diluted (loss) earnings per share: (a) | |||||||||||
Net (loss) income (in dollars per share) | $ (4.41) | $ (2.71) | $ (12.76) | $ (54.26) | $ (12.92) | $ 0.97 | $ (2.30) | $ (3.25) | $ (74.06) | $ (17.72) | $ (62.66) |
Quarterly Financial Informati_4
Quarterly Financial Information – (Unaudited) - Additional Information (Details) - USD ($) | Nov. 01, 2018 | Aug. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||||||||
Incremental Lease Cost | $ 168,800,000 | $ 168,800,000 | $ 168,800,000 | $ 168,800,000 | ||||||||||
Decreased Depreciation Expense For Lease Determination, Amount | 64,100,000 | 67,300,000 | 83,400,000 | 83,400,000 | ||||||||||
Gain on sale of Consumer CLEC business | $ 0 | $ 145,400,000 | $ 0 | |||||||||||
Net gain (loss) on early extinguishment of debt | $ 190,300,000 | $ 190,300,000 | 0 | 190,300,000 | (56,400,000) | |||||||||
Merger, integration and other costs | 8,300,000 | 31,900,000 | 137,400,000 | |||||||||||
Goodwill impairment | $ 0 | (373,300,000) | (2,339,000,000) | (2,712,300,000) | 0 | (1,840,800,000) | ||||||||
Reorganization items, net | 41,100,000 | 29,200,000 | 85,400,000 | 104,900,000 | 260,600,000 | 0 | 0 | |||||||
Total interest expense | $ (13,800,000) | (331,900,000) | (901,300,000) | (875,400,000) | ||||||||||
Pension Benefits | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Net actuarial gain (loss) | (6,700,000) | (14,900,000) | $ (10,500,000) | |||||||||||
Broadview and EarthLink | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Merger, integration and other costs | $ 28,500,000 | $ 24,700,000 | $ 2,300,000 | $ 50,000,000 | ||||||||||
Consumer CLEC | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Gain on sale of Consumer CLEC business | $ 145,400,000 | |||||||||||||
Accounting Standards Update 2016-02 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total interest expense | $ 109,700,000 | $ 111,100,000 | $ 112,400,000 | $ 113,700,000 | $ 446,900,000 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2020 | Mar. 02, 2020 | |
Subsequent Event [Line Items] | ||
Debtor Reorganization Items, Facility Maximum Amount | $ 3,250 | |
Reorganization Items, Equity Rights Offering, Amount | $ 750 | |
Reorganization Items, Backstop Premium, Percentage | 8.00% | |
Senior Secured Superpriority Debtor-In-Possession Credit Facility | DIP Facilities | ||
Subsequent Event [Line Items] | ||
Proceeds from lines of credit | $ 400 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Registrant (Parent Company) - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Costs and expenses: | |||||||||||
Selling, general and administrative | $ 756.7 | $ 889 | $ 896.1 | ||||||||
Depreciation and amortization | 1,068.2 | ||||||||||
Total costs and expenses | 7,992.9 | 5,416.5 | 7,443.5 | ||||||||
Operating (loss) income | $ (38.8) | $ (34.5) | $ (422.9) | $ (2,381.3) | $ 63.7 | $ 75.6 | $ 88.3 | $ 69 | (2,877.5) | 296.6 | (1,590.6) |
Income tax benefit (expense) | 320 | (449.1) | 408.1 | ||||||||
Net loss | $ (187.9) | $ (115.5) | $ (544.1) | $ (2,310.3) | $ (549.2) | $ 41.3 | $ (93.7) | $ (121.4) | (3,157.8) | (723) | (2,116.6) |
Comprehensive loss | (3,170.8) | (714.2) | (2,101.1) | ||||||||
Windstream Holdings, Inc. | |||||||||||
Operating revenues: | |||||||||||
Leasing income from subsidiaries | 659.1 | 655.7 | 653.5 | ||||||||
Cost of services and products sold | 675.2 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Selling, general and administrative | 2.2 | 1.8 | 1.9 | ||||||||
Depreciation and amortization | 0 | 344 | 336.2 | ||||||||
Total costs and expenses | 677.4 | 345.8 | 338.1 | ||||||||
Operating (loss) income | (18.3) | 309.9 | 315.4 | ||||||||
Loss before income taxes and equity in subsidiaries | (18.3) | (157.1) | (169.5) | ||||||||
Income tax benefit (expense) | 4.7 | (799.9) | (374.7) | ||||||||
Loss before equity in subsidiaries | (13.6) | (957) | (544.2) | ||||||||
Equity (losses) earnings from subsidiaries | (3,144.2) | 234 | (1,572.4) | ||||||||
Net loss | (3,157.8) | (723) | (2,116.6) | ||||||||
Comprehensive loss | (3,170.8) | (714.2) | (2,101.1) | ||||||||
Telecommunications network assets (a) | |||||||||||
Costs and expenses: | |||||||||||
Interest expense on long-term lease obligation with Uniti | 0 | (467) | (484.9) | ||||||||
Telecommunications network assets (a) | Windstream Holdings, Inc. | |||||||||||
Costs and expenses: | |||||||||||
Interest expense on long-term lease obligation with Uniti | $ 0 | $ (467) | $ (484.9) |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of the Registrant (Parent Company) - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | |||||
Total current assets | $ 1,036.7 | $ 1,256.2 | |||
Net property, plant and equipment | 3,620.8 | $ 3,614.2 | 4,920.9 | ||
Operating lease right-of-use assets | 4,018 | 4,239.1 | 0 | ||
Total Assets | 9,888.5 | 10,257.9 | |||
Current Liabilities: | |||||
Current portion of long-term lease obligations | 0 | 0 | 4,570.3 | ||
Total current liabilities | 1,219.2 | 11,457.7 | |||
Liabilities subject to compromise | 10,720.1 | 0 | |||
Total liabilities | 11,962.9 | 12,177.2 | |||
Shareholders’ Deficit: | |||||
Common stock, $0.0001 par value, 75.0 shares authorized, 42.9 and 36.5 shares issued and outstanding, respectively | 0 | 0 | |||
Additional paid-in capital | 1,253.1 | 1,250.4 | |||
Accumulated other comprehensive income | 22.6 | 35.6 | $ 21.4 | ||
Accumulated deficit | (3,350.1) | $ (192.3) | (3,205.3) | ||
Total shareholders’ deficit | (2,074.4) | (1,919.3) | $ (1,298.9) | $ 170 | |
Total Liabilities and Shareholders’ Deficit | $ 9,888.5 | $ 10,257.9 | |||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 | |||
Common stock, shares authorized | 75,000,000 | 75,000,000 | |||
Common stock, shares issued | 43,000,000 | 42,900,000 | |||
Common stock, shares outstanding | 43,000,000 | 42,900,000 | |||
Windstream Holdings, Inc. | |||||
Current Assets: | |||||
Distributions receivable from Windstream Services | $ 0.7 | $ 0.5 | |||
Total current assets | 0.7 | 0.5 | |||
Investment and affiliate related balances | 0 | 1,383.9 | |||
Net property, plant and equipment | 0 | 1,267.1 | |||
Operating lease right-of-use assets | 3,703 | 0 | |||
Deferred income taxes | 4.1 | 0 | |||
Total Assets | 3,707.8 | 2,651.5 | |||
Current Liabilities: | |||||
Accrued dividends and other | 0.6 | 0.5 | |||
Current portion of long-term lease obligations | 0 | 4,570.3 | |||
Total current liabilities | 0.6 | 4,570.8 | |||
Advances/losses in excess of investment in subsidiaries | 2,062.4 | 0 | |||
Liabilities subject to compromise | 3,719.2 | 0 | |||
Total liabilities | 5,782.2 | 4,570.8 | |||
Shareholders’ Deficit: | |||||
Common stock, $0.0001 par value, 75.0 shares authorized, 42.9 and 36.5 shares issued and outstanding, respectively | 0 | 0 | |||
Additional paid-in capital | 1,253.1 | 1,250.4 | |||
Accumulated other comprehensive income | 22.6 | 35.6 | |||
Accumulated deficit | (3,350.1) | (3,205.3) | |||
Total shareholders’ deficit | (2,074.4) | (1,919.3) | |||
Total Liabilities and Shareholders’ Deficit | $ 3,707.8 | $ 2,651.5 | |||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 | |||
Common stock, shares authorized | 75,000,000 | 75,000,000 | |||
Common stock, shares issued | 43,000,000 | 42,900,000 | |||
Common stock, shares outstanding | 43,000,000 | 42,900,000 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of the Registrant (Parent Company) - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Provided from Operating Activities: | |||||||||||
Net loss | $ (187.9) | $ (115.5) | $ (544.1) | $ (2,310.3) | $ (549.2) | $ 41.3 | $ (93.7) | $ (121.4) | $ (3,157.8) | $ (723) | $ (2,116.6) |
Adjustments to reconcile net loss to net cash provided from operations: | |||||||||||
Depreciation expense | 897.2 | 1,300.9 | 1,229 | ||||||||
Deferred income taxes | (319.6) | 441.2 | (412.7) | ||||||||
Net cash provided from operating activities | 533.8 | 1,013.1 | 974.6 | ||||||||
Cash Flows from Financing Activities: | |||||||||||
Dividends paid to shareholders | 0 | 0 | (64.4) | ||||||||
Proceeds from issuance of stock | 0 | 12.2 | 9.6 | ||||||||
Stock repurchases | 0 | 0 | (19) | ||||||||
Payments under long-term lease obligations | 0 | (188.8) | (168.7) | ||||||||
Net cash provided from (used in) financing activities | 208.2 | (141.3) | (7.1) | ||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (161.4) | 317.6 | (15.7) | ||||||||
Cash, Cash Equivalents and Restricted Cash: | |||||||||||
Beginning of period | 361 | 43.4 | 361 | 43.4 | 59.1 | ||||||
End of period | 199.6 | 361 | 199.6 | 361 | 43.4 | ||||||
Windstream Holdings, Inc. | |||||||||||
Cash Provided from Operating Activities: | |||||||||||
Net loss | (3,157.8) | (723) | (2,116.6) | ||||||||
Adjustments to reconcile net loss to net cash provided from operations: | |||||||||||
Equity losses (earnings) from subsidiaries | 3,144.2 | (234) | 1,572.4 | ||||||||
Depreciation expense | 0 | 344 | 336.2 | ||||||||
Non-cash portion of rent expense | 16.1 | 0 | 0 | ||||||||
Deferred income taxes | (4.1) | 800.1 | 376.4 | ||||||||
Net cash provided from operating activities | (1.6) | 187.1 | 168.4 | ||||||||
Cash Flows from Financing Activities: | |||||||||||
Distributions from Windstream Services | 1.6 | 1.6 | 83.7 | ||||||||
Dividends paid to shareholders | 0 | 0 | (64.4) | ||||||||
Contributions to Windstream Services | 0 | (12.2) | (9.6) | ||||||||
Proceeds from issuance of stock | 0 | 12.2 | 9.6 | ||||||||
Stock repurchases | 0 | 0 | (19) | ||||||||
Payments under long-term lease obligations | 0 | (188.7) | (168.7) | ||||||||
Net cash provided from (used in) financing activities | 1.6 | (187.1) | (168.4) | ||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 | 0 | ||||||||
Cash, Cash Equivalents and Restricted Cash: | |||||||||||
Beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
End of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of the Registrant (Parent Company) - Background and Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Income tax benefit (expense) | $ (320) | $ 449.1 | $ (408.1) | |
Deferred income taxes | (319.6) | 441.2 | (412.7) | |
Accumulated deficit | (3,350.1) | (3,205.3) | $ (192.3) | |
Net property, plant and equipment | 3,620.8 | 4,920.9 | 3,614.2 | |
Operating lease right-of-use assets | 4,018 | 0 | 4,239.1 | |
Operating Lease, Liability | 4,042.8 | |||
Deferred income taxes | 0 | 104.3 | 396.6 | |
Windstream Holdings, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Intercompany income related to the Uniti spin transactions | 12 | 955.6 | ||
Investment and affiliate related balances | 0 | 1,383.9 | ||
Income tax benefit (expense) | (4.7) | 799.9 | 374.7 | |
Loss before equity in subsidiaries | (13.6) | (957) | (544.2) | |
Equity losses (earnings) from subsidiaries | (3,144.2) | 234 | (1,572.4) | |
Deferred income taxes | (4.1) | 800.1 | $ 376.4 | |
Accumulated deficit | (3,350.1) | (3,205.3) | ||
Net property, plant and equipment | 0 | 1,267.1 | ||
Operating lease right-of-use assets | $ 3,703 | 0 | ||
Windstream Services, LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ownership interest percentage | 100.00% | |||
Adoption of ASU 2016-02 (See Note 2) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Income tax benefit (expense) | $ (17.6) | |||
Accumulated deficit | 3,013 | 3,000 | ||
Net property, plant and equipment | (1,306.7) | (1,300) | ||
Operating lease right-of-use assets | 4,239.1 | |||
Operating Lease, Liability | (700) | |||
Deferred income taxes | 292.3 | 300 | ||
Operating leases [Member] | Adoption of ASU 2016-02 (See Note 2) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Operating lease right-of-use assets | $ 382.5 | $ 3,900 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reserve for USAC funding denial | $ 19.7 | ||
Allowance for doubtful accounts, customers and others | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 24.8 | $ 29.7 | $ 27.1 |
Charged to Cost and Expenses | 65.2 | 37.7 | 45.8 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 41.8 | 42.6 | 43.2 |
Balance at End of Period | 48.2 | 24.8 | 29.7 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 685 | 179.6 | 146.5 |
Charged to Cost and Expenses | 45.7 | 505.4 | 2.5 |
Charged to Other Accounts | 0 | 0 | 41.8 |
Deductions | 541.5 | 0 | 11.2 |
Balance at End of Period | 189.2 | 685 | 179.6 |
Accrued liabilities related to merger, integration and other costs and restructuring charges | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 31.9 | 19.5 | 5.8 |
Charged to Cost and Expenses | 36.8 | 76.9 | 180.4 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 60.6 | 64.5 | 166.7 |
Balance at End of Period | 8.1 | $ 31.9 | $ 19.5 |
Total Restructuring Liabilities | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reclassified to operating lease liability due to adoption of ASU2016-02 | $ 19.3 |
Uncategorized Items - a201910k.
Label | Element | Value |
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] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,013,000,000 |
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] | 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 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 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] | 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 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] | 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 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] | 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 |
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] | 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 2018-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2018-02 [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,700,000) |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,700,000) |
Accounting Standards Update 2018-02 [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 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,700,000 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | Windstream Services, LLC [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,700,000 |