Condensed Consolidating Financial Information (Tables)

6 Months Ended

Dec. 31, 2015

Condensed Consolidating Financial Information [Abstract]

Schedule Of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheets (Unaudited)

December 31, 2015

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	(Issuer)		Subsidiaries		Subsidiaries		Eliminations		Total
Assets
Current assets
Cash and cash equivalents	$	137.2	$	3.7	$	34.7	$	—		175.6
Trade receivables, net of allowance		36.1		15.0		22.8		—		73.9
Due from related parties		(4.1)		—		4.6		—		0.5
Prepaid expenses		21.8		5.2		6.8		—		33.8
Deferred income taxes, net		128.9		—		0.9		—		129.8
Other assets		2.7		—		3.1		—		5.8
Total current assets		322.6		23.9		72.9		—		419.4
Property and equipment, net		2,820.7		345.1		460.3		—		3,626.1
Intangible assets, net		581.0		232.3		119.7		—		933.0
Goodwill		762.5		275.9		183.8		—		1,222.2
Other assets		52.1		9.0		11.3		—		72.4
Related party receivable		356.7		—		—		(356.7)		—
Investment in subsidiary		1,091.5		—		—		(1,091.5)		—
Total assets	$	5,987.1	$	886.2	$	848.0	$	(1,448.2)	$	6,273.1
Liabilities and member's equity
Current liabilities
Current portion of long-term debt	$	16.5	$	—	$	—	$	—	$	16.5
Accounts payable		45.9		4.8		15.5		—		66.2
Accrued liabilities		122.7		16.2		43.3		—		182.2
Accrued interest		40.2		—		—		—		40.2
Capital lease obligations, current		2.4		1.5		1.5		—		5.4
Due to related parties		(0.3)		—		1.6		—		1.3
Deferred revenue, current		76.6		3.0		18.2		—		97.8
Total current liabilities		304.0		25.5		80.1		—		409.6
Long-term debt, non-current		3,649.8		—		356.7		(356.7)		3,649.8
Capital lease obligation, non-current		23.3		—		7.2		—		30.5
Deferred revenue, non-current		627.0		4.7		95.7		—		727.4
Deferred income taxes, net		138.1		—		48.5		—		186.6
Other long-term liabilities		13.3		11.8		12.5		—		37.6
Total liabilities		4,755.5		42.0		600.7		(356.7)		5,041.5
Commitments and contingencies (Note 10)
Member's equity
Member's interest		1,793.6		805.5		275.7		(1,100.5)		1,774.3
Accumulated other comprehensive loss		—		—		(19.6)		—		(19.6)
Accumulated deficit		(562.0)		38.7		(8.8)		9.0		(523.1)
Total member's equity		1,231.6		844.2		247.3		(1,091.5)		1,231.6
Total liabilities and member's equity	$	5,987.1	$	886.2	$	848.0	$	(1,448.2)	$	6,273.1

Condensed Consolidating Balance Sheets (Unaudited)

June 30, 2015

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	(Issuer)		Subsidiaries		Subsidiaries		Eliminations		Total
Assets
Current assets
Cash and cash equivalents	$	274.3	$	4.7	$	29.0	$	—		308.0
Trade receivables, net of allowance		54.7		4.6		28.7		—		88.0
Due from related parties		(1.3)		0.4		2.9		(1.4)		0.6
Prepaid expenses		25.8		4.4		7.1		—		37.3
Deferred income taxes, net		128.5		—		1.0		—		129.5
Other assets		3.6		—		0.3		—		3.9
Total current assets		485.6		14.1		69.0		(1.4)		567.3
Property and equipment, net		2,622.9		335.5		340.8		—		3,299.2
Intangible assets, net		605.8		239.5		103.0		—		948.3
Goodwill		762.2		281.0		181.2		—		1,224.4
Other assets		36.2		8.3		10.3		—		54.8
Related party receivable		304.8		—		—		(304.8)		—
Investment in subsidiary		1,050.8		—		—		(1,050.8)		—
Total assets	$	5,868.3	$	878.4	$	704.3	$	(1,357.0)	$	6,094.0
Liabilities and member's equity
Current liabilities
Current portion of long-term debt	$	16.5	$	—	$	—	$	—		16.5
Accounts payable		26.6		4.0		9.4		—		40.0
Accrued liabilities		125.6		20.6		36.2		—		182.4
Accrued interest		57.2		—		—		—		57.2
Capital lease obligations, current		2.0		1.6		0.8		—		4.4
Due to related parties		1.7		—		1.0		(1.4)		1.3
Deferred revenue, current		73.2		2.8		10.6		—		86.6
Total current liabilities		302.8		29.0		58.0		(1.4)		388.4
Long-term debt, non-current		3,652.2		—		—		—		3,652.2
Related party debt, long-term		—		—		304.8		(304.8)		—
Capital lease obligation, non-current		5.6		18.6		4.1		—		28.3
Deferred revenue, non-current		559.4		4.6		48.7		—		612.7
Deferred income taxes, net		139.2		—		50.5		—		189.7
Other long-term liabilities		15.0		10.6		3.0		—		28.6
Total liabilities		4,674.2		62.8		469.1		(306.2)	—	4,899.9
Commitments and contingencies (Note 10)
Member's equity
Member's interest		1,730.1		778.1		251.2		(1,060.3)		1,699.1
Accumulated other comprehensive loss		—		—		(7.9)		—		(7.9)
Accumulated deficit		(536.0)		37.5		(8.1)		9.5		(497.1)
Total member's equity		1,194.1		815.6		235.2		(1,050.8)		1,194.1
Total liabilities and member's equity	$	5,868.3	$	878.4	$	704.3	$	(1,357.0)	$	6,094.0

Schedule Of Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the three months ended December 31, 2015

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	(Issuer)		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	279.0	$	51.8	$	38.8	$	—	$	369.6
Operating costs and expenses
Operating costs (excluding depreciation amortization and including stock-based compensation)		81.7		17.1		13.4		—		112.2
Selling, general and administrative expenses (including stock-based compensation)		60.9		14.0		10.1		—		85.0
Depreciation and amortization		84.7		18.8		10.2		—		113.7
Total operating costs and expenses		227.3		49.9		33.7		—		310.9
Operating income/(loss)		51.7		1.9		5.1		—		58.7
Other expenses
Interest expense		(44.8)		(0.2)		(6.2)		—		(51.2)
Foreign currency (loss)/gain on intercompany loans		(6.9)		—		(0.2)		—		(7.1)
Other expense		(0.1)		—		—		—		(0.1)
Equity in net earnings of subsidiaries		(0.4)		—		—		0.4		—
Total other expense, net		(52.2)		(0.2)		(6.4)		0.4		(58.4)
(Loss)/earnings from operations before income taxes		(0.5)		1.7		(1.3)		0.4		0.3
Provision for income taxes		10.3		—		0.8		—		11.1
Net (loss)/earnings	$	(10.8)	$	1.7	$	(2.1)	$	0.4	$	(10.8)

Condensed Consolidating Statements of Operations

For the six months ended December 31, 2015

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	(Issuer)		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	552.9	$	103.7	$	79.8	$	—	$	736.4
Operating costs and expenses
Operating costs (excluding depreciation amortization and including stock-based compensation)		163.8		35.7		25.7		—		225.2
Selling, general and administrative expenses (including stock-based compensation)		120.2		28.0		21.4		—		169.6
Depreciation and amortization		171.6		38.6		20.6		—		230.8
Total operating costs and expenses		455.6		102.3		67.7		—		625.6
Operating income/(loss)		97.3		1.4		12.1		—		110.8
Other expenses
Interest expense		(94.3)		(0.2)		(10.5)		—		(105.0)
Foreign currency (loss)/gain on intercompany loans		(17.3)		—		(0.5)		—		(17.8)
Other expense		—		—		(0.2)		—		(0.2)
Equity in net earnings of subsidiaries		0.5		—		—		(0.5)		—
Total other expense, net		(111.1)		(0.2)		(11.2)		(0.5)		(123.0)
(Loss)/earnings from operations before income taxes		(13.8)		1.2		0.9		(0.5)		(12.2)
Provision for income taxes		12.2		—		1.6		—		13.8
Net (loss)/earnings	$	(26.0)	$	1.2	$	(0.7)	$	(0.5)	$	(26.0)

Condensed Consolidating Statements of Operations (Unaudited)

For the three months ended December 31, 2014

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	256.0	$	30.1	$	37.8	$	—	$	323.9
Operating costs and expenses
Operating costs (excluding depreciation amortization and including stock-based compensation)		74.9		11.1		11.8		—		97.8
Selling, general and administrative expenses (including stock-based compensation)		18.9		4.7		8.5		—		32.1
Depreciation and amortization		78.1		5.8		13.0		—		96.9
Total operating costs and expenses		171.9		21.6		33.3		—		226.8
Operating income/(loss)		84.1		8.5		4.5		—		97.1
Other expenses
Interest expense		(48.9)		(0.3)		(4.2)		—		(53.4)
Loss on extinguishment of debt		(30.9)		—		—		—		(30.9)
Foreign currency loss on intercompany loans		(13.3)		—		—		—		(13.3)
Other income, net		1.4		(0.5)		(1.0)		—		(0.1)
Equity in net earnings of subsidiaries		7.1		—		—		(7.1)		—
Total other expense, net		(84.6)		(0.8)		(5.2)		(7.1)		(97.7)
(Loss)/earnings from operations before income taxes		(0.5)		7.7		(0.7)		(7.1)		(0.6)
(Benefit)/provision for income taxes		(4.2)		—		(0.1)		—		(4.3)
Net (loss)/earnings	$	3.7	$	7.7	$	(0.6)	$	(7.1)	$	3.7

Condensed Consolidating Statements of Operations (Unaudited)

For the six months ended December 31, 2014

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	Issuer		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	507.5	$	60.5	$	76.5	$	—	$	644.5
Operating costs and expenses
Operating costs (excluding depreciation amortization and including stock-based compensation)		158.8		22.8		23.5		—		205.1
Selling, general and administrative expenses (including stock-based compensation)		146.1		15.1		27.5		—		188.7
Depreciation and amortization		157.5		10.8		24.6		—		192.9
Total operating costs and expenses		462.4		48.7		75.6		—		586.7
Operating income/(loss)		45.1		11.8		0.9		—		57.8
Other expenses
Interest expense		(108.5)		(0.4)		8.6		—		(100.3)
Loss on extinguishment of debt		(30.9)		—		—		—		(30.9)
Foreign currency loss on intercompany loans		(29.0)		—		1.1		—		(27.9)
Other income, net		(0.1)		(0.6)		0.5		—		(0.2)
Equity in net earnings of subsidiaries		21.2		—		—		(21.2)		—
Total other expense, net		(147.3)		(1.0)		10.2		(21.2)		(159.3)
(Loss)/earnings from operations before income taxes		(102.2)		10.8		11.1		(21.2)		(101.5)
(Benefit)/provision for income taxes		4.4		0.4		0.3		—		5.1
Net (loss)/earnings	$	(106.6)	$	10.4	$	10.8	$	(21.2)	$	(106.6)

Schedule Of Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

Six months ended December 31, 2015

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	(Issuer)		Subsidiaries		Subsidiaries		Total
Net cash provided by operating activities	$	243.8		40.3		57.3	$	341.4
Cash flows from investing activities:
Purchases of property and equipment		(283.7)		(27.9)		(20.0)		(331.6)
Acquisitions, net of cash acquired		—		(16.7)		(101.0)		(117.7)
Other		0.3		(0.1)		(0.5)		(0.3)
Net cash used in investing activities		(283.4)		(44.7)		(121.5)		(449.6)
Cash flows from financing activities:
Distributions to parent		(37.8)		5.5		14.8		(17.5)
Loan from Parent		(59.0)		—		59.0		—
Principal payments on long-term debt		(7.1)		(1.2)		—		(8.3)
Principal repayments on capital lease obligations		(0.7)		(0.9)		(0.6)		(2.2)
Excess tax benefit from stock-based compensation		7.9		—		—		7.9
Other		(0.8)		—		—		(0.8)
Net cash provided by financing activities		(97.5)		3.4		73.2		(20.9)
Effect of changes in foreign exchange rates on cash		—		—		(3.3)		(3.3)
Net decrease in cash and cash equivalents		(137.1)		(1.0)		5.7		(132.4)
Cash and cash equivalents, beginning of period		274.3		4.7		29.0		308.0
Cash and cash equivalents, end of period	$	137.2	$	3.7	$	34.7	$	175.6

Condensed Consolidating Statements of Cash Flows

Six months ended December 31, 2014

(in millions)

	Zayo Group,
	LLC		Guarantor		Non-Guarantor
	(Issuer)		Subsidiaries		Subsidiaries		Total
Net cash provided by operating activities	$	204.4		13.8		14.4	$	232.6
Cash flows from investing activities:
Purchases of property and equipment		(207.9)		(17.8)		(19.1)		(244.8)
Acquisitions, net of cash acquired		(0.1)		(52.5)		(73.9)		(126.5)
Net cash used in investing activities		(208.0)		(70.3)		(93.0)		(371.3)
Cash flows from financing activities:
Proceeds from equity offerings and contributions		205.3		64.9		9.5		279.7
Principal payments on long-term debt		(254.4)		(5.3)		—		(259.7)
Payment of early redemption fees on debt extinguished		(23.8)		—		—		(23.8)
Payment of)/receipt from intercompany loans		(50.1)		—		50.1		—
Principal repayments on capital lease obligations		(0.5)		(0.8)		—		(1.3)
Net cash provided by financing activities		(123.5)		58.8		59.6		(5.1)
Effect of changes in foreign exchange rates on cash		(4.1)		0.8		1.7		(1.6)
Net decrease in cash and cash equivalents		(131.2)		3.1		(17.3)		(145.4)
Cash and cash equivalents, beginning of period		260.8		1.0		35.6		297.4
Cash and cash equivalents, end of period	$	129.6	$	4.1	$	18.3	$	152.0