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.