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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases (((12) Leases: With the adoption of ASC 842 on January 1, 2020, Frontier elected to apply the ‘package of practical expedients’, which permits the Company to not reassess under the new standard its prior conclusions including lease identification, lease classification, and initial direct costs. Additionally, Frontier elected to apply the land easement practical expedient, which permits the Company to account for land easements under the new standard only on a prospective basis. Frontier did not apply the use of hindsight practical expedient. The components of lease cost are as follows: Successor Predecessor For the eight For the four For the year months ended months ended ended December 31, April 30, December 31, ($ in millions)2021 2021 2020 Lease cost: Finance lease cost: Amortization of right-of-use assets$ 13  $ 7  $ 15  Interest on lease liabilities 6  4  13  Finance lease cost 19  11  28  Operating lease cost (1) 38  19  68  Sublease income (11) (4) (11) Total Lease cost$ 46  $ 26  $ 85  (1)Includes short-term lease costs of $1 million for the four months ended April 30, 2021, $2 million for the eight months ended December 31, 2021 and $2 million for the year ended December 31, 2020. Includes variable lease costs of $2 million for the four months ended April 30, 2021, $4 million for the eight months ended December 31, 2021 and $6 million for the year ended December 31, 2020. Supplemental balance sheet information related to leases is as follows: Successor Predecessor ($ in millions)December 31, 2021 December 31, 2020 Operating right-of-use assets$200(1) $215(1) Finance right-of-use assets$129(2) $143(2) Operating lease liabilities$204(3) $223(3) Finance lease liabilities$148(4) $145(4) Operating leases: Weighted-average remaining lease term 8.02 years 7.75 years Weighted-average discount rate 5.89% 8.26% Finance leases: Weighted-average remaining lease term 12.74 years 8.96 years Weighted-average discount rate 8.24% 8.13% (1)Operating ROU assets are included in Other assets on our consolidated balance sheet.(2)Finance ROU assets are included in Property, plant, and equipment on our December 31, 2021 consolidated balance sheets.(3)This amount represents $41 million and $163 million, and $48 million and $175 million, included in other current liabilities and other liabilities, respectively, on our December 31, 2021 and 2020 consolidated balance sheets.(4)This amount represents $20 million and $128 million, and $21 million and $124 million, included in other current liabilities and other liabilities, respectively, on our December 31, 2021 and 2020 consolidated balance sheets. Supplemental cash flow information related to leases is as follows: Successor Predecessor For the eight For the four For the year months ended months ended ended December 31, April 30, December 31, ($ in millions)2021 2021 2020 Cash paid for amount included in the measurement of lease liabilities, net of amounts received as revenue: Operating cash flows provided by operating leases$ 63  $ 21  $ 67  Operating cash flows used by operating leases$ (38) $ (14) $ (68) Operating cash flows used by finance leases$ (6) $ (5) $ (13) Financing cash flows used by finance leases$ (13) $ (7) $ (23) Right-of-use assets obtained in exchange for lease liabilities: Operating leases$ 10  $ 8  $ 28  Finance leases$ 25  $ - $ 3  ‎ LesseeFor lessee agreements, Frontier elected to apply the short-term lease recognition exemption for all leases that qualify and as such, does not recognize assets or liabilities for leases with terms of less than twelve months, including existing leases at transition. Frontier elected not to separate lease and non-lease components. As of January 1, 2020, Frontier has operating and finance leases for administrative and network properties, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 87 years, some of which include options to extend the leases, and some of which include options to terminate the leases within 1 year. The following represents a maturity analysis for our operating and finance lease liabilities as of December 31, 2021: Successor Operating Finance ($ in millions) Leases Leases Future maturities: 2022$ 45  $ 29  2023 40  26  2024 36  19  2025 32  17  2026 27  14  Thereafter 72  105  Total lease payments 252  210  Less: imputed interest (48) (62) Present value of lease liabilities$ 204  $ 148 (2) Upon adoption of ASC 842 on January 1, 2019, we recorded the unamortized deferred gain balances for previous sale-leasebacks of real estate assets as a transition adjustment, which had the effect of increasing our accumulated deficit by $15 million ($11 million net of tax). LessorFrontier is the lessor for operating leases of towers, datacenters, corporate offices, and certain equipment. Our leases have remaining lease terms of 1 year to 65 years, some of which include options to extend the leases, and some of which include options to terminate the leases within 1 year. None of these leases include options for our lessees to purchase the underlying asset. A significant number of Frontier’s service contracts with its customers include equipment rentals. The Company has elected to apply the practical expedient to account for those associated equipment rentals and services as a single, combined component. We have evaluated the service component to be ‘predominant’ in these contracts and have accounted for the combined component as a single performance obligation under ASC 606. For the four months ended April 30, 2021, the eight months ended December 31, 2021 and the year ended December 31, 2020, Frontier, as a lessor, recognized revenue of $21 million, $42 million, and $67 million, respectively. The following represents a maturity analysis for our future operating lease payments from customers as of December 31, 2021: Successor Operating ($ in millions)Lease Payments Future maturities of lease payments from customers: 2022$ 10  2023 10  2024 8  2025 1  2026 - Thereafter 1  Total lease payments from customers$ 30