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ASC 606 Adoption And Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2018
ASC 606 Adoption And Revenue Recognition [Abstract]  
Schedule Of Prior Period Impact Of New Accounting Pronouncement



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

As Reported

 

ASC 606

 

Adjusted

 



($ in millions)

 

December 31, 2017

 

Transition Adjustment

 

January 1, 2018

 



Assets

 

 

 

 

 

 

 

 

 

 



Accounts receivable, net

 

$

 819 

 

$

 (32)

 

$

 787 

 



Contract acquisition costs

 

$

 -

 

$

 87 

 

$

 87 

 



Other current assets

 

$

 64 

 

$

 4 

 

$

 68 

 



Property, plant and equipment, net

 

$

 14,377 

 

$

 15 

 

$

 14,392 

 



Other assets

 

$

 97 

 

$

 127 

 

$

 224 

 



 

 

 

 

 

 

 

 

 

 

 



Liabilities and Equity

 

 

 

 

 

 

 

 

 

 



Other current liabilities

 

$

 330 

 

$

 5 

 

$

 335 

 



Other liabilities

 

$

 317 

 

$

 (9)

 

$

 308 

 



Deferred income taxes

 

$

 1,139 

 

$

 51 

 

$

 1,190 

 



Accumulated deficit

 

$

 (2,263)

 

$

 154 

 

$

 (2,109)

 



 

 

 

 

 

 

 

 

 

 

 



Schedule Of Impact Of New Accounting Pronouncement On Balance Sheet And Income Statement

The following table summarizes the impacts of adopting ASC 606 on Frontier’s consolidated balance sheet as of December 31, 2018.





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

December 31, 2018

 



 

 

 

 

 

Impact of

 

Amounts Excluding

 



($ in millions)

 

As Reported

 

Adoption of ASC 606

 

Adoption of ASC 606

 



Assets

 

 

 

 

 

 

 

 

 

 



Accounts receivable, net

 

$

 723 

 

$

 44 

 

$

 767 

 



Contract acquisition costs

 

$

 107 

 

$

 (107)

 

$

 -

 



Prepaid expenses

 

$

 86 

 

$

 3 

 

$

 89 

 



Other current assets

 

$

 60 

 

$

 (4)

 

$

 56 

 



Property, plant and equipment, net

 

$

 14,187 

 

$

 (56)

 

$

 14,131 

 



Other assets

 

$

 265 

 

$

 (117)

 

$

 148 

 



 

 

 

 

 

 

 

 

 

 

 



Liabilities and Equity

 

 

 

 

 

 

 

 

 

 



Other current liabilities

 

$

 303 

 

$

 (6)

 

$

 297 

 



Other liabilities

 

$

 281 

 

$

 10 

 

$

 291 

 



Deferred income taxes

 

$

 1,109 

 

$

 (57)

 

$

 1,052 

 



Accumulated deficit

 

$

 (2,752)

 

$

 (184)

 

$

 (2,936)

 



 

 

 

 

 

 

 

 

 

 

 



The following tables summarize the impacts of adopting ASC 606 on Frontier’s statement of operations for the year ended December 31, 2018.





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

For the year ended December 31, 2018

 



 

 

 

 

Impact of

 

Amounts Excluding

 



 

 

As Reported

 

Adoption of ASC 606

 

Adoption of ASC 606

 



($ in millions)

 

 

 

 

 

 

 

 

 

 



Revenue

 

$

 8,611 

 

$

 (15)

 

$

 8,596 

 



 

 

 

 

 

 

 

 

 

 

 



Operating expenses:

 

 

 

 

 

 

 

 

 

 



Network access expenses

 

 

 1,441 

 

 

 (3)

 

 

 1,438 

 



Network related expenses

 

 

 1,898 

 

 

 -

 

 

 1,898 

 



Selling, general and administrative expenses

 

 

 1,815 

 

 

 19 

 

 

 1,834 

 



Other operating expenses

 

 

 2,630 

 

 

 (1)

 

 

 2,629 

 



Total operating expenses

 

 

 7,784 

 

 

 15 

 

 

 7,799 

 



 

 

 

 

 

 

 

 

 

 

 



Operating income (loss)

 

$

 827 

 

$

 (30)

 

$

 797 

 



 

 

 

 

 

 

 

 

 

 

 



Disaggregation Of Revenue



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the year ended December 31,

 

 



 

 

2018

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Amounts

 

 

 

 

 

 

 

 



 

 

 

 

 

Impact of

 

Excluding

 

 

 

 

 

 

 

 



 

 

 

 

Adoption of

 

Adoption of

 

 

 

 

 

 

 



($ in millions)

 

As Reported

 

ASC 606

 

ASC 606

 

2017

 

2016

 

 



Data and Internet services

 

$

 3,878 

 

$

 (103)

 

$

 3,775 

 

$

 3,862 

(1)

$

 3,693 

(1)

 



Voice services

 

 

 2,721 

 

 

 (152)

 

 

 2,569 

 

 

 2,864 

 

 

 2,886 

 

 



Video services

 

 

 1,085 

 

 

 99 

 

 

 1,184 

 

 

 1,304 

 

 

 1,244 

 

 



Other

 

 

 544 

 

 

 (193)

 

 

 351 

 

 

 322 

 

 

 276 

 

 



Revenue from contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



with customers

 

 

 8,228 

 

 

 (349)

 

 

 7,879 

 

 

 8,352 

(1)

 

 8,099 

(1)

 



Subsidy and other regulatory revenue

 

 

 383 

 

 

 334 

 

 

 717 

 

 

 776 

 

 

 797 

 

 



Total revenue

 

$

 8,611 

 

$

 (15)

 

$

 8,596 

 

$

 9,128 

(1)

$

 8,896 

(1)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the year ended December 31,

 

 



 

 

2018

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Amounts

 

 

 

 

 

 

 

 



 

 

 

 

 

Impact of

 

Excluding

 

 

 

 

 

 

 

 



 

 

 

 

Adoption of

 

Adoption of

 

 

 

 

 

 

 



($ in millions)

 

As Reported

 

ASC 606

 

ASC 606

 

2017

 

2016

 

 



Consumer

 

$

 4,380 

 

$

 (116)

 

$

 4,264 

 

$

 4,476 

 

$

 4,383 

 

 



Commercial

 

 

 3,848 

 

 

 (233)

 

 

 3,615 

 

 

 3,876 

(1)

 

 3,716 

(1)

 



Revenue from contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



with customers

 

 

 8,228 

 

 

 (349)

 

 

 7,879 

 

 

 8,352 

(1)

 

 8,099 

(1)

 



Subsidy and other regulatory revenue

 

 

 383 

 

 

 334 

 

 

 717 

 

 

 776 

 

 

 797 

 

 



Total revenue

 

$

 8,611 

 

$

 (15)

 

$

 8,596 

 

$

 9,128 

(1)

$

 8,896 

(1)

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(1)

Includes revenue from Frontier Secure Strategic Partnerships business, which was sold in May of 2017, of $40 million and $84 million for the years ended December 31, 2017 and 2016, respectively.
Changes In Contract Assets And Contract Liabilities



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Contract

 

 

Contract

 

 



($ in millions)

 

Assets

 

 

Liabilities

 

 



 

 

 

 

 

 

 

 

 

 



Balance January 1, 2018

 

$

 77 

(1)

 

$

 (60)

(3)

 



Revenue recognized included

 

 

 

 

 

 

 

 

 



in opening contract balance

 

 

 (57)

 

 

 

 119 

 

 



Cash received, excluding amounts

 

 

 

 

 

 

 

 

 



recognized as revenue

 

 

 -

 

 

 

 (135)

 

 



Credits granted, excluding amounts

 

 

 

 

 

 

 

 

 



recognized as revenue

 

 

 49 

 

 

 

 -

 

 



Other

 

 

 -

 

 

 

 5 

 

 



Balance December 31, 2018

 

$

 69 

(2)

 

$

 (71)

(4)

 



 

 

 

 

 

 

 

 

 

 



(1) Includes $40 million in other current assets and $37 million in other assets.

(2) Includes $44 million in other current assets and $25 million in other assets.

(3) Includes $41 million in other current liabilities and $19 million in other liabilities.

(4) Includes $49 million in other current liabilities and $22 million in other liabilities.

Performance Obligations, Revenue



 

 

 

 

 



 

 

 

 

 



 

 

Revenue from remaining

 



($ in millions)

 

performance obligations

 



 

 

 

 

 



2019

 

$

 2,893 

 



2020

 

 

 1,209 

 



2021

 

 

 487 

 



2022

 

 

 259 

 



2023

 

 

 141 

 



Thereafter

 

 

 184 

 



Total

 

$

 5,173