10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________to__________

Commission file number: 001-11001

FRONTIER COMMUNICATIONS PARENT, INC.

(Exact name of registrant as specified in its charter)

Delaware	86-2359749
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
401 Merritt 7
Norwalk, Connecticut	06851
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (203) 614-5600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	FYBR	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “accelerated filer,” “large accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨

Smaller reporting company ¨ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

The number of shares outstanding of the registrant’s Common Stock as of August 1, 2022 was 244,985,000.

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

Table of Contents

	Page
Part I. Financial Information (Unaudited)
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 2022, and December 31, 2021	2
Consolidated Statements of Income for the three months ended June 30, 2022 (Successor), the one month ended April 30, 2021 (Predecessor), and the two months ended June 30, 2021 (Successor)	3
Consolidated Statements of Income for the six months ended June 30, 2022 (Successor), the four months ended April 30, 2021 (Predecessor), and the two months ended June 30, 2021 (Successor)	4
Consolidated Statements of Comprehensive Income for the three months ended June 30, 2022 (Successor), the one month ended April 30, 2021 (Predecessor), and the two months ended June 30, 2021 (Successor); and for the six months ended June 30, 2022 (Successor), the four months ended April 30, 2021 (Predecessor), and the two months ended June 30, 2021 (Successor)	5
Consolidated Statements of Equity (Deficit) for the six months ended June 30, 2022 (Successor); and for the two months ended June 30, 2021 (Successor), and the four months ended April 30, 2021 (Predecessor)	6
Consolidated Statements of Cash Flows for the six months ended June 30, 2022 (Successor), the four months ended April 30, 2021 (Predecessor), and the two months ended June 30, 2021 (Successor)	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3. Quantitative and Qualitative Disclosures about Market Risk	60
Item 4. Controls and Procedures	61
Part II. Other Information
Item 1. Legal Proceedings	62
Item 1A. Risk Factors	62
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 6. Exhibits	64
Signature	65

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in millions and shares in thousands, except for per-share amounts)

	(Unaudited)
	June 30, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	678	$	2,127
Short-term investments		2,300		-
Accounts receivable, less allowances of $45 and $57, respectively		420		458
Prepaid expenses		79		73
Income taxes and other current assets		25		30
Total current assets		3,502		2,688
Property, plant and equipment, net		10,108		9,199
Other intangibles, net		4,067		4,227
Other assets		358		367
Total assets	$	18,035	$	16,481
LIABILITIES AND EQUITY
Current liabilities:
Long-term debt due within one year	$	15	$	15
Accounts payable		818		535
Advanced billings		199		197
Accrued other taxes		174		183
Accrued interest		120		76
Pension and other postretirement benefits		46		46
Other current liabilities		407		399
Total current liabilities		1,779		1,451
Deferred income taxes		481		387
Pension and other postretirement benefits		1,427		1,672
Other liabilities		422		403
Long-term debt		9,130		7,968
Total liabilities		13,239		11,881
Equity:
Common stock, $0.01 par value (1,750,000 authorized shares, 244,969
and 244,416 shares issued and outstanding at June 30, 2022 and
December 31, 2021, respectively)		2		2
Additional paid-in capital		4,152		4,124
Retained earnings		580		414
Accumulated other comprehensive income, net of tax		62		60
Total equity		4,796		4,600
Total liabilities and equity	$	18,035	$	16,481

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

‎

2

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

($ in millions and shares in thousands, except for per-share amounts)

(Unaudited)

	Successor		Successor		Predecessor
	For the three months		For the two months		For the one month
	ended June 30,		ended June 30,		ended April 30,
	2022		2021		2021
Revenue	$	1,459	$	1,061	$	555
Operating expenses:
Cost of service		546		396		210
Selling, general, and administrative expenses		427		269		129
Depreciation and amortization		290		179		119
Restructuring costs and other charges		30		11		5
Total operating expenses		1,293		855		463
Operating income		166		206		92
Investment and other income (loss), net		122		(2)		(1)
Reorganization items, net		-		-		4,196
Interest expense (See Note 8)		(118)		(62)		(29)
Income before income taxes		170		142		4,258
Income tax expense (benefit)		69		43		(223)
Net income	$	101	$	99	$	4,481
Basic net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.81
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.68
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Total weighted average shares outstanding - diluted		244,723		244,401		105,002

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

‎

3

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

($ in millions and shares in thousands, except for per-share amounts)

(Unaudited)

	Successor		Successor		Predecessor
	For the six months		For the two months		For the four months
	ended June 30,		ended June 30,		ended April 30,
	2022		2021		2021
Revenue	$	2,906	$	1,061	$	2,231
Operating expenses:
Cost of service		1,099		396		830
Selling, general, and administrative expenses		862		269		537
Depreciation and amortization		574		179		506
Restructuring costs and other charges		84		11		7
Total operating expenses		2,619		855		1,880
Operating income		287		206		351
Investment and other income (loss), net		199		(2)		1
Reorganization items, net		-		-		4,171
Interest expense (See Note 8)		(221)		(62)		(118)
Income before income taxes		265		142		4,405
Income tax expense (benefit)		99		43		(136)
Net income	$	166	$	99	$	4,541
Basic net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.42
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.28
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Total weighted average shares outstanding - diluted		244,831		244,401		104,924

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

‎

4

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

($ in millions)

(Unaudited)

	Successor		Successor		Predecessor
	For the three months		For the two months		For the one month
	ended June 30,		ended June 30,		ended April 30,
	2022		2021		2021
Net income	$	101	$	99	$	4,481
Other comprehensive income, net of tax		4		41		348
Comprehensive income	$	105	$	140	$	4,829

	Successor		Successor		Predecessor
	For the six months		For the two months		For the four months
	ended June 30,		ended June 30,		ended April 30,
	2022		2021		2021
Net income	$	166	$	99	$	4,541
Other comprehensive income, net of tax		2		41		359
Comprehensive income	$	168	$	140	$	4,900

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

‎

5

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)

($ in millions and shares in thousands)

(Unaudited)

	For the six months ended June 30, 2022 (Successor)
								Accumulated
				Additional				Other
	Common Stock			Paid-In		Retained		Comprehensive		Total
	Shares	Amount		Capital		Earnings		Income		Equity
Balance at January 1, 2022	244,416	$	2	$	4,124	$	414	$	60	$	4,600
Stock plans	60		-		15		-		-		15
Net income	-		-		-		65		-		65
Other comprehensive
loss, net of tax	-		-		-		-		(2)		(2)
Balance at March 31, 2022	244,476	$	2	$	4,139	$	479	$	58	$	4,678
Stock plans	493		-		13		-		-		13
Net income	-		-		-		101		-		101
Other comprehensive
income, net of tax	-		-		-		-		4		4
Balance at June 30, 2022	244,969	$	2	$	4,152	$	580	$	62	$	4,796

	For the six months ended June 30, 2021
								Accumulated
				Additional				Other		Treasury			Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Common Stock			Equity
	Shares	Amount		Capital		Deficit		Income (Loss)		Shares	Amount		(Deficit)
Balance at January 1, 2021	106,025	$	27	$	4,817	$	(8,975)	$	(755)	(1,232)	$	(14)	$	(4,900)
Stock plans	-		-		-		-		-	(122)		(1)		(1)
Net income	-		-		-		60		-	-		-		60
Other comprehensive
income, net of tax	-		-		-		-		11	-		-		11
Balance at March 31, 2021 ‎(Predecessor)	106,025	$	27	$	4,817	$	(8,915)	$	(744)	(1,354)	$	(15)	$	(4,830)
Stock plans	-		-		1		-		-	-		-		1
Net income	-		-		-		4,481		-	-		-		4,481
Other comprehensive
income, net of tax	-		-		-		-		348	-		-		348
Cancellation of ‎Predecessor equity	(106,025)		(27)		(4,818)		4,434		396	1,354		15		-
Issuance of Successor ‎common stock	244,401		2		4,106		-		-	-		-		4,108
Balance at April 30, 2021 ‎(Predecessor)	244,401	$	2	$	4,106	$	-	$	-	-	$	-	$	4,108
Balance at April 30, 2021 ‎(Successor)	244,401	$	2	$	4,106	$	-	$	-	-	$	-	$	4,108
Stock plans	-		-		-		-		-	-		-		-
Net income	-		-		-		99		-	-		-		99
Other comprehensive
income, net of tax	-		-		-		-		41	-		-		41
Balance at June 30, 2021 ‎(Successor)	244,401	$	2	$	4,106	$	99	$	41	-	$	-	$	4,248

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.
‎

6

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
	2022		2021		2021
Cash flows provided from (used by) operating activities:
Net Income	$	166	$	99	$	4,541
Adjustments to reconcile net income to net cash provided ‎ from (used by) operating activities:
Depreciation and amortization		574		179		506
Stock-based compensation expense		35		-		(1)
Non-cash reorganization items, net		-		-		(5,467)
Lease Impairment		44		-		-
Bad debt expense		14		6		-
Other adjustments		(13)		(5)		1
Deferred income taxes		93		37		(148)
Change in accounts receivable		24		6		36
Change in pension and other post retirement liabilities		(242)		12		(12)
Change in accounts payable and other liabilities		77		39		(156)
Change in prepaid expenses, income taxes, and ‎ other assets		(15)		7		46
Net cash provided from (used by) operating activities		757		380		(654)
Cash flows provided from (used by) investing activities:
Capital expenditures		(1,088)		(269)		(500)
Proceeds on sale of assets		1		-		9
Purchase of short-term investments		(2,600)		-		-
Sale of short-term investments		300		-		-
Other		2		-		1
Net cash used by investing activities		(3,385)		(269)		(490)
Cash flows provided from (used by) financing activities:
Long-term debt principal payments		(7)		(4)		(1)
Proceeds from long-term debt borrowings		1,200		-		225
Financing costs paid		(17)		-		(4)
Finance lease obligation payments		(10)		(4)		(7)
Taxes paid on behalf of employees for shares withheld		(7)		-		-
Other		(1)		1		(16)
Net cash provided from (used by) financing activities		1,158		(7)		197
Increase (decrease) in cash, cash equivalents, and ‎ restricted cash		(1,470)		104		(947)
Cash, cash equivalents, and restricted cash at January 1,		2,178		940		1,887
Cash, cash equivalents, and restricted cash at June 30,	$	708	$	1,044	$	940
Supplemental cash flow information:
Cash paid during the period for:
Interest	$	198	$	84	$	84
Income tax payments, net	$	9	$	24	$	9
Reorganization items, net	$	-	$	-	$	1,397

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

7

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

(Unaudited)

(1) Summary of Significant Accounting Policies:

a) Basis of Presentation and Use of Estimates:

Frontier Communications Parent, Inc. and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Our interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. All significant intercompany balances and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net income (loss), and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year.

We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, business, and wholesale customers and is typically the incumbent voice services provider in its service areas.

In 2021, we recategorized our previous operating expenses categories (“Network access expenses” and “Network related expense”) into one expense line: “Cost of service”. All historical periods presented have been updated to conform to the new categorization. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. For our interim financial statements as of and for the period ended June 30, 2022, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (“SEC”).

The preparation of our interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the application of fresh start accounting, allowance for credit losses, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, and pension and other postretirement benefits, among others.

Chapter 11 Bankruptcy Emergence

As described in Note 3 Emergence from the Chapter 11 Cases, and Note 4 Fresh Start Accounting, to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2021, on April 30, 2021, (the “Effective Date”), the Company emerged from bankruptcy. Accordingly, the consolidated financial information has been prepared in conformity with Accounting Standards Codification Subtopic 852-10 (ASC 852), Reorganizations, for the Successor as a new entity with assets, liabilities, and a capital structure having carrying amounts not comparable with prior periods.

‎

8

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

(Unaudited)

Reorganization items incurred in the first four months of 2021 as a result of the Chapter 11 Cases included a gain on settlement of liabilities subject to compromise of $5,274 million, fresh start valuation adjustment charges of $1,038 million, debtor-in-possession financing costs of $15 million and $50 million in professional fees and other bankruptcy related costs presented separately in the accompanying consolidated statements of income.

The Company incurred significant costs associated with the reorganization, primarily legal and professional fees. Subsequent to April 14, 2020 (the “Petition Date”), these costs were expensed as incurred and significantly affected our consolidated results of operations. From the Petition Date to the Effective date, these costs were included in “Reorganization items, net” on our consolidated statement of income. For the periods prior to the Petition date and following the Effective Date, these costs have been included in “Restructuring costs and other charges” on our consolidated statement of income. Refer to Note 9.

Fresh Start Accounting

Upon emergence from bankruptcy, we adopted fresh start accounting in accordance with Accounting Standards Codification (ASC) Topic 852 – Reorganizations (ASC 852) and became a new entity for financial reporting purposes. As a result, the consolidated financial statements after the Effective Date are not comparable with the consolidated financial statements on or before that date as indicated by the “black line” division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to the financial position and results of operations of Frontier Communications Corporation and its subsidiaries on or before the Effective Date (“Old Frontier”).

b)Changes in Accounting Policies:

The accounting policy differences between Predecessor and Successor include:

Universal Service Fund and Other Surcharges - Frontier collects various taxes, Universal Service Fund (“USF”) surcharges (“primarily federal USF”), and certain other taxes, from its customers and subsequently remits them to governmental authorities. The Predecessor recorded USF and other taxes on a gross basis on the consolidated statement of income, included within “Revenue” and “Cost of service expense”. After emergence, the Successor records these USF and other taxes on a net basis.

Provision for Bad Debt – The Predecessor reported the provision for bad debt as a reduction of revenue. After emergence, the Successor reports bad debt expense as an operating expense included in “Selling, general, and administrative expenses”.

Contract Acquisition Costs - During the Predecessor period, certain commissions to obtain new customers were deferred and amortized over four years, which represented the estimated customer contract period. As a result of fresh start accounting, that assumption was reevaluated and the period of benefit for our retail customers was determined to be less than one year. As such, these costs are now expensed as incurred.

Actuarial Losses on Defined Benefit Plans - Historically, actuarial gains (losses) were recognized as they occurred and included in “Accumulated other comprehensive income (loss)” and were subject to amortization over the estimated average remaining service period of participants. As part of fresh start accounting, Frontier has made an accounting policy election to recognize these gains and losses immediately in the period they occur as “Investment and other income (loss)” on the consolidated statement of income.

9

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

(Unaudited)

Government Grants Revenue - Certain governmental grants that were historically presented on a net basis as part of capital expenditures, are now presented on a gross basis and included in ”Revenue” on the consolidated statement of income.

Administrative Expenses – Historically, the Predecessor capitalized certain administrative expenses, that following emergence, are expensed during the period incurred and included in “Selling, general, and administrative expense” on the consolidated statement of income.

c) Revenue Recognition:

Revenue for data & Internet services, voice services, video services, and switched and non-switched access services is recognized as services are provided to customers. Services that are billed in advance include monthly recurring network access services (including data services), special access services, and monthly recurring voice, video, and related charges. Revenue is recognized by measuring progress toward the complete satisfaction of the Company’s performance obligations. The unearned portion of these fees is deferred as a component of “Advanced billings” on our consolidated balance sheet and recognized as revenue over the period that the services are provided. Services that are billed in arrears include non-recurring network access services (including data services), switched access services, and non-recurring voice and video services. The earned but unbilled portion of these fees is recognized as revenue in our consolidated statements of income and accrued in “Accounts receivable” on our consolidated balance sheet in the period that services are provided. Excise taxes are recognized as a liability when billed.

Satisfaction of Performance Obligations

Frontier satisfies its obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s satisfaction of the performance obligation may differ from the timing of the customer’s payment.

Bundled Service and Allocation of Discounts

When customers purchase more than one service, revenue for each is determined by allocating the total transaction price based upon the relative stand-alone selling price of each service. We frequently offer service discounts as an incentive to customers, which reduce the total transaction price. Any incentives which are considered cash equivalents (e.g. gift cards) that are granted will similarly result in a reduction of the total transaction price. Cash equivalent incentives are accounted for on a portfolio basis and are recognized in the month they are awarded to customers.

Customer Incentives

In the process of acquiring and/or retaining customers, we may issue a variety of incentives aside from service discounts or cash equivalent incentives. Those incentives that have stand-alone value (e.g., gift cards not considered cash equivalents or free goods/services) are considered separate performance obligations. While these incentives are free to the customer, a portion of the consideration received from the customer is ascribed to them based upon their relative stand-alone selling price. These types of incentives are accounted for on a portfolio basis with both revenue and expense recognized in the month they are awarded to the customer. The earned revenue associated with these incentives is reflected in “Other” revenue while the associated costs are reflected in “Cost of services”.

Upfront Fees

All non-refundable upfront fees assessed to our customers provide them with a material right to renew; therefore, they are deferred by creating a contract liability and amortized into “Data and Internet service” for fees charged to our wholesale customers and “Other revenue” for fees charged to all other customers, using a portfolio approach over the average customer life.

10

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

(Unaudited)

Customer Acquisition Costs

Sales commission expenses are recognized as incurred. According to ASC 606, incremental costs in obtaining a contract with a customer are deferred and recorded as a contract asset if the period of benefit is expected to be greater than one year. For our retail customers, this period of benefit has been determined to be less than one year. As such, the Company applies the practical expedient that allows such costs to be expensed as incurred.

Taxes, Surcharges and Subsidies

Frontier collects various taxes, Universal Service Fund (“USF”) surcharges (primarily federal USF), and certain other surcharges, from its customers and subsequently remits these taxes to governmental authorities. During the predecessor period, USF and other surcharges amounted to $83 million for the four months ended April 30, 2021.

In June 2015, Frontier accepted the FCC offer of support to price cap carriers under the Connect America Fund (“CAF”) Phase II program, which was intended to provide long-term support for broadband build commitments in high cost unserved or underserved areas. We recognized FCC’s CAF Phase II subsidies into revenue on a straight-line basis over the seven-year funding term which ended on December 31, 2021. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual.

In May 2022, Frontier accepted the FCC offer under the Rural Digital Opportunity Fund (“RDOF”) Phase I program, which provides funding over a ten-year period to support the construction of broadband networks in rural communities across the country. Frontier accepted $37 million in annual support through 2032 in return for the Company’s commitment to make broadband available to households within the RDOF eligible areas. We will recognize the FCC’s RDOF Phase I subsidies into revenue on a straight-line basis over the ten-year funding term which will end March 31, 2032. The Company is required to complete the RDOF deployment by December 31, 2028. Thereafter, the FCC will review carriers’ RDOF program completion data, and if the FCC determines that the Company did not satisfy applicable FCC RDOF requirements, Frontier could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We will accrue an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated.

d)Cash Equivalents:

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $17 million is included in “Other current assets” as of December 31, 2021, and $30 million and $34 million are included in “Other assets” on our consolidated balance sheet as of June 30, 2022 and December 31, 2021, respectively.

e) Short-Term Investments:

Given the long-term nature of our fiber build, we have invested cash into short-term investments to improve interest income while preserving funding flexibility. We have classified these short-term deposits and other investments that have original maturities of greater than three months but less than one year as short-term investments.

As of June 30, 2022, short-term investments of $2,300 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between July 15, 2022, and November 15, 2022, and placed with banks with A-1/P-1 or equivalent credit quality. These short-term investments are in scope of ASC 320, Investments - Debt Securities. The short-term investments’ original maturity is greater than 90 days but less than one year, and they are classified as held to maturity, recorded as current assets, and are accounted for at amortized cost.

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f)Definite and Indefinite Lived Intangible Assets:

Intangible assets are initially recorded at estimated fair value. Old Frontier historically amortized its acquired customer lists and certain other finite-lived intangible assets over their estimated useful lives on an accelerated basis. Upon emergence from bankruptcy, customer relationship intangibles were established for business and wholesale customers. These intangibles are amortized on a straight-line basis over their assigned useful lives of between 11 and 16 years. Additionally, trademark and tradename assets established upon emergence are amortized on a straight-line basis over 5 years. We review such intangible assets annually, or more often if indicators of impairment arise, to determine whether there is evidence that indicates an impairment condition may exist that would necessitate a change in useful life and a different amortization period.

g)Lease Accounting:

We determine if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating and finance lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms used in accounting for leases may reflect options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. ROU assets for operating leases are recorded to “Other Assets”, and the related liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. Assets subject to finance leases are included in “Property, Plant & Equipment”, with corresponding liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets.

We assess potential impairments to our leases annually, or as indicators exist, if indicators of impairment arise to determine whether there is evidence that indicate an impairment condition may exist. We continue to review our real estate portfolio and, during the first quarter of 2022, determined to either terminate or market for sublease certain facilities leases, which triggered an impairment of $44 million for our finance and operating lease assets recorded as restructuring charges and other costs. See Note 9 for further details.

(2) Recent Accounting Literature:

Recent Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard provides optional expedients, and allows for certain exceptions to existing GAAP, for contract modifications triggered by the expected market transition of certain benchmark interest rates to alternative reference rates. The standard applies to contracts and other arrangements that reference the London Interbank Offering Rate (LIBOR) or any other rates ending after December 31, 2022. Frontier is evaluating the impact of the adoption of this standard, including optional expedients, on our consolidated financial statements.

Government Assistance

In November 2021, the FASB issued ASU 2021-10, which requires business entities to disclose information about certain government assistance they receive. Such disclosure requirements include the nature of the transactions and the related accounting policy used, the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item and significant

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terms and conditions of the transactions. ASU 2021-10 will be effective for annual periods beginning after December 15, 2021 (year ending December 31, 2022 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2021-10 will have on its disclosures.

(3) Revenue Recognition:

We categorize our products, services and other revenues into the following categories:

Data and Internet services include broadband services for consumer and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (wireless backhaul);

Voice services include traditional local and long-distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our consumer and business customers. Voice services also include the long-distance voice origination and termination services that we provide to our business customers and other carriers;

Video services include revenues generated from services provided directly to consumer customers as linear terrestrial television services, through DISH® satellite TV service, and through partnerships with over-the-top (OTT) video providers. Video services also includes pay per view revenues, video on demand, equipment rentals, and video advertising. The Company has made the strategic decision to limit sales of new traditional TV services, focusing on our broadband products and OTT video options;

Other customer revenue includes switched access revenue, rents collected for colocation services, and revenue from other services and fees. Switched access revenue includes revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic. These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies; and

Subsidy and other regulatory revenue include revenues generated from cost subsidies from state and federal authorities, including CAF II and RDOF.

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The following tables provide a summary of revenues, by category:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Data and Internet services	$	847	$	556	$	283
Voice services		381		283		160
Video services		134		105		54
Other		80		62		30
Revenue from contracts with customers (1)		1,442		1,006		527
Subsidy and other revenue (2)		17		55		28
Total revenue	$	1,459	$	1,061	$	555
	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Consumer	$	791	$	543	$	283
Business and wholesale		651		463		244
Revenue from contracts with customers (1)		1,442		1,006		527
Subsidy and other revenue (2)		17		55		28
Total revenue	$	1,459	$	1,061	$	555

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	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Data and Internet services	$	1,683	$	556	$	1,125
Voice services		767		283		647
Video services		271		105		223
Other		163		62		125
Revenue from contracts with customers (1)		2,884		1,006		2,120
Subsidy and other revenue (2)		22		55		111
Total revenue	$	2,906	$	1,061	$	2,231
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Consumer	$	1,567	$	543	$	1,133
Business and wholesale		1,317		463		987
Revenue from contracts with customers (1)		2,884		1,006		2,120
Subsidy and other revenue (2)		22		55		111
Total revenue	$	2,906	$	1,061	$	2,231

⁽¹⁾Lease revenue included in “Revenue from contracts with customers” was $16 million and $32 million for the three and six months ended June 30, 2022, respectively, $11 million for the two months ended June 30, 2021, and $5 million and $26 million for the one and four months ended April 30, 2021, respectively.

⁽²⁾Subsidy and other revenue for the three and six months ended June 30, 2022, does not include revenue from CAF II as the program ended in 2021. We began to receive funding for RDOF in the second quarter of 2022.

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The following is a summary of the changes in the contract assets and contract liabilities:

	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2021 (Successor)	$	-	$	-	$	27	$	11
Revenue recognized included
in opening contract balance		-		-		(20)		(5)
Credits granted, excluding amounts
recognized as revenue		-		-		18		11
Reclassified between current
and noncurrent		-		-		2		(2)
Balance at June 30, 2022 (Successor)	$	-	$	-	$	27	$	15
	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2020 (Predecessor)	$	6	$	9	$	58	$	20
Revenue recognized included
in opening contract balance		(4)		-		(23)		(3)
Cash received, excluding amounts
recognized as revenue		-		-		22		2
Balance at April 30, 2021 (Predecessor)	$	2	$	9	$	57	$	19
Fresh start accounting adjustments		(2)		(9)		(42)		(18)
Balance at April 30, 2021 (Predecessor)	$	-	$	-	$	15	$	1
Balance at April 30, 2021 (Successor)	$	-	$	-	$	15	$	1
Revenue recognized included
in opening contract balance		-		-		(4)		(1)
Cash received, excluding amounts
recognized as revenue		-		-		8		4
Reclassified between current
and noncurrent		-		-		(1)		1
Balance at June 30, 2021 (Successor)	$	-	$	-	$	18	$	5

The unsatisfied obligations for retail customers consist of amounts in advance billings, which are expected to be earned within the following monthly billing cycle. Unsatisfied obligations for wholesale customers are based on a point-in-time calculation and determined by the number of circuits provided and the contractual price. These wholesale customer obligations change from period to period based on new circuits added as well as circuits that are terminated.

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The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period:

($ in millions)	Revenue from contracts with customers
2022 (remaining six months)	$	461
2023		407
2024		270
2025		135
2026		83
Thereafter		91
Total	$	1,447

(4) Accounts Receivable:

The components of accounts receivable, net are as follows:

($ in millions)	June 30, 2022		December 31, 2021
Retail and wholesale	$	406	$	441
Other		59		74
Less: Allowance for doubtful accounts		(45)		(57)
Accounts receivable, net	$	420	$	458

We maintain an allowance for credit losses based on the estimated ability to collect accounts receivable. The allowance for credit losses is increased by recording an expense for the provision for bad debts for retail customers, and through decreases to revenue at the time of billing for wholesale customers. The allowance is decreased when customer accounts are written off, or when customers are given credits.

The provision for bad debts was $14 million for the six months ended June 30, 2022, $6 million for the two months ended June 30, 2021, and $4 million and $14 million for the one and four months ended April 30, 2021, respectively.

In accordance with ASC 326, Frontier performs its calculation to estimate expected credit losses, utilizing rates that are consistent with the Company’s write offs (net of recoveries) because such events affect the entity’s loss given default experience.

Activity in the allowance for credit losses for the six months ended June 30, 2022 was as follows:

($ in millions)
Balance at December 31, 2021	$	57
Provision for bad debt		14
Amounts charged to revenue		17
Write offs charged against the allowance		(43)
Balance at June 30, 2022	$	45

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(5) Property, Plant and Equipment:

Property, plant and equipment, net is as follows:

($ in millions)	June 30, 2022		December 31, 2021
Property, plant and equipment	$	11,024	$	9,707
Less: Accumulated depreciation		(916)		(508)
Property, plant and equipment, net	$	10,108	$	9,199

Depreciation expense is principally based on the composite group method. Depreciation expense was as follows:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Depreciation expense	$	211	$	127	$	99
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Depreciation expense	$	414	$	127	$	407

As a result of applying fresh start accounting on the Effective Date, Frontier’s fixed assets were reduced from $13.0 billion to $8.5 billion. For the six months ended June 30, 2022, the decrease in depreciation expense was principally a result of the reduced asset base following this fresh start fair value adjustment. In July 2022, we sold a property that was subject to leaseback, generating approximately $70 million in proceeds.

During the six months ended June 30, 2022, our capital expenditures were $1,088 million. In addition, we had $250 million of capital expenditures that were received but not paid as of June 30, 2022.

(6) Other Intangibles:

The components of other intangibles as of June 30, 2022 and December 31, 2021 was follows:

	June 30, 2022						December 31, 2021
	Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
($ in millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Intangibles:
Customer Relationships - Business	$	800	$	(85)	$	715	$	800	$	(48)	$	752
Customer Relationships - Wholesale		3,491		(254)		3,237		3,491		(146)		3,345
Trademarks & Tradenames		150		(35)		115		150		(20)		130
Total other intangibles	$	4,441	$	(374)	$	4,067	$	4,441	$	(214)	$	4,227

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Amortization expense was as follows:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Amortization expense	$	79	$	52	$	20
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Amortization expense	$	160	$	52	$	99

Following our emergence from bankruptcy, we amortize our intangible assets on a straight-line basis, over the assigned useful lives of 16 years for our wholesale customer relationships, 11 years for our business customer relationships, and 5 years for our trademarks and tradenames.

For the Predecessor, amortization expense was primarily for our customer base acquired as a result of our acquisitions in 2010, 2014, and 2016 with each based on a useful life of 8 to 12 years and amortized on an accelerated method. Our trade name was an indefinite-lived intangible asset that was not subject to amortization.

(7) Fair Value of Financial Instruments:

The following table summarizes the carrying amounts and estimated fair values for total long-term debt at June 30, 2022 and December 31, 2021. For the other financial instruments including cash, short-term investments, accounts receivable, restricted cash, accounts payable and other current liabilities, the carrying amounts approximate fair value due to the relatively short maturities of those instruments.

The fair value of our total long-term debt is estimated based upon quoted market prices at the reporting date for those financial instruments.

	June 30, 2022				December 31, 2021
($ in millions)		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Total debt	$	8,970	$	7,995	$	7,777	$	7,996

(

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(8) Long-Term Debt:

Chapter 11 Restructuring

The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all then-outstanding obligations under Old Frontier’s debt agreements and notes as follows:

the amended and restated credit agreement, dated as of February 27, 2017 (as amended, the JPM Credit Agreement),

the 8.000% first lien secured notes due April 1, 2027 (the Original First Lien Notes),

the 8.500% second lien secured notes due April 1, 2026 (the Original Second Lien Notes),

the unsecured notes and debentures and the secured and unsecured debentures of the Company’s subsidiaries.

As of the Effective Date, amounts that were outstanding under the JPM Credit Agreement, the Original First Lien Notes, and the Original Second Lien Notes were repaid in full.

On the Effective Date, pursuant to the terms of the Plan, all of the obligations under Old Frontier’s unsecured senior note indentures were cancelled, and in connection with emergence, Frontier issued 244,401,000 shares of common stock that were transferred to holders of the allowed senior notes claims (as defined under the Plan).

Interest expense for the one and four months ended April 30, 2021 recorded on our Predecessor statements of income was lower than contractual interest of $112 million and $450 million, respectively, because we ceased accruing interest on the Petition Date in accordance with the terms of the Plan and ASC Topic 852.

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The activity in our long-term debt is summarized as follows:

			For the six months ended ‎June 30, 2022
			Principal
	January 1,		Payments		New		June 30,
($ in millions)	2022		and Retirements		Borrowings		2022
Secured debt issued by Frontier	$	6,927	$	(7)	$	1,200	$	8,120
Secured debt issued by subsidiaries		100		-		-		100
Unsecured debt issued by subsidiaries		750		-		-		750
Principal outstanding	$	7,777	$	(7)	$	1,200	$	8,970
Less: Debt Issuance Costs		(13)						(30)
Less: Current Portion		(15)						(15)
Plus: Unamortized fair value adjustments (1)		219						205
Total Long-term debt	$	7,968					$	9,130

⁽¹⁾ Upon emergence, we adjusted the carrying value of our debt to fair value. The adjustment consisted of the elimination of the existing unamortized debt issuance costs and unamortized discounts and recording a balance of $236 million as a fair value adjustment. The fair value accounting adjustment is being amortized into interest expense using the effective interest method.

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Additional information regarding our secured and unsecured total long-term debt as of June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022			December 31, 2021
	Principal		Interest	Principal		Interest
($ in millions)	Outstanding		Rate	Outstanding		Rate
Secured debt issued by Frontier
Term loan due 10/8/2027	$	1,457	4.813% (Variable)	$	1,464	4.500% (Variable)
First lien notes due 10/15/2027		1,150	5.875%		1,150	5.875%
First lien notes due 5/1/2028		1,550	5.000%		1,550	5.000%
First lien notes due 5/12/2030		1,200	8.750%		-	n/a
Second lien notes due 11/1/2029		750	5.875%		750	5.875%
Second lien notes due 5/1/2029		1,000	6.750%		1,000	6.750%
Second lien notes due 1/15/2030		1,000	6.000%		1,000	6.000%
IDRB due 5/1/2030		13	6.200%		13	6.200%
Secured debt issued by Frontier		8,120			6,927
Secured debt issued by subsidiaries
Debentures due 11/15/2031		100	8.500%		100	8.500%
Secured debt issued by subsidiaries		100			100
Unsecured debt issued by subsidiaries
Debentures due 5/15/2027		200	6.750%		200	6.750%
Debentures due 2/1/2028		300	6.860%		300	6.860%
Debentures due 2/15/2028		200	6.730%		200	6.730%
Debentures due 10/15/2029		50	8.400%		50	8.400%
Unsecured debt issued by subsidiaries		750			750
Principal outstanding	$	8,970	6.163% (1)	$	7,777	5.702% (1)

⁽¹⁾ Interest rate represents a weighted average of the stated interest rates of multiple issuances.

Credit Facilities and Term Loans

Summaries of our various credit and debt agreements, including our credit agreements and the indentures for our senior secured first lien notes and senior secured second lien notes, are contained in our Annual Report on Form 10-K. The summaries below and in our Form 10-K do not purport to be complete and are qualified in their entirety by reference to each agreement filed as an Exhibit to our Annual Report on Form 10-K.

Revolving Facility

On May 12, 2022, Frontier entered into an amendment (“Amendment No. 2”) to its Revolving Facility. The Amendment, among other things, increased the Revolving Facility by an additional $275 million, to a total of $900 million in aggregate principal amount of revolving credit commitments, and provided that the Revolving Facility be amended to reflect Secured Overnight Financing Rate “SOFR” based interest rates (including a customary spread adjustment).

The $900 million Revolving Facility will be available on a revolving basis until April 30, 2025.

At Frontier’s election, the determination of interest rates for the Revolving Facility is based on margins over the alternate base rate or over SOFR. The interest rate margin with respect to any SOFR loan under the Exit Revolving Facility is 3.50% or 2.50% with respect to any alternate base rate loans, with a 0% SOFR floor.

Subject to customary exceptions and thresholds, the security package under the Revolving Facility includes pledges of the equity interests in certain of our subsidiaries, which as of the issue date is limited to certain specified pledged entities and substantially all personal property of Frontier Video, which same assets also secure the First Lien Notes. The Revolving Facility is guaranteed by the same subsidiaries that guarantee the

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First Lien Notes. After giving effect to $133 million of letters of credit outstanding as of June 30, 2022, the Borrower has $767 million of available borrowing capacity under the Revolving Facility.

(9) Restructuring Costs and Other Charges:

Restructuring and other charges consists of severance and employee costs related to workforce reductions. It also includes professional fees related to our Chapter 11 Cases that were incurred after the emergence date as well as professional fees related to our restructuring and transformation that were incurred prior to the Petition Date.

During the six month period ended June 30, 2022, we incurred $84 million in restructuring charges and other costs consisting of $44 million of lease impairment costs from the strategic exit of certain facilities, $32 million of severance and employee costs resulting from workforce reductions, and $8 million of costs related to other restructuring activities. Of the $32 million in severance and employee costs, approximately $26 million related to the second quarter of 2022, as a result of larger workforce reductions.

As part of the Company's cost reduction strategy, certain real estate leases will not be retained, or will be marketed for sublease. The Company evaluated the related right-of-use assets and other lease related assets for impairment under ASC 360. In connection with this analysis, the Company reassessed its leased real estate asset groups and estimated the fair value of the office space to be subleased under current market conditions. Where the carrying values of individual asset groups exceeded their fair values, an impairment charge was recognized for the difference.

During the four months ended April 30, 2021, we incurred $7 million of severance and employee costs resulting from workforce reductions. During the two months ended June 30, 2021, we incurred $11 million in expenses consisting of $2 million of severance and employee costs resulting from workforce reductions and $9 million of professional fees related to our balance sheet restructuring.

The following is a summary of the changes in the liabilities established for restructuring and other related programs:

($ in millions)
Balance at January 1, 2022	$	7
Severance expense		32
Other costs		8
Cash payments during the period		(28)
Balance at June 30, 2022	$	19

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(10) Investment and Other Income:

The following is a summary of the components of Investment and Other Income:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Interest and dividend income	$	6	$	-	$	-
Pension benefit		25		13		2
OPEB costs		(5)		(17)		(1)
OPEB remeasurement gain		96		-		-
All other, net		-		2		(2)
Total investment and other income (loss), net	$	122	$	(2)	$	(1)

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Interest and dividend income	$	8	$	-	$	-
Pension benefit		50		13		6
OPEB costs		(8)		(17)		(4)
OPEB remeasurement gain		150		-		-
All other, net		(1)		2		(1)
Total investment and other income (loss), net	$	199	$	(2)	$	1

In the first half of 2022, Frontier amended the medical coverage for certain postretirement benefit plans, primarily due to discount rate changes, which resulted in remeasurement gains of $150 million. Refer to Note 15 for further details.

Pension and OPEB benefit (costs) consist of interest income (loss), expected return on plan assets, amortization of prior service costs (credit) and recognition of actuarial gain (loss).

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(11) Stock Plans:

Upon emergence, all outstanding stock-based compensation plans of Old Frontier were terminated and, in accordance with the Plan, the form of Frontier Communications Parent, Inc. 2021 Management Incentive Plan (the “2021 Incentive Plan”) was approved and adopted by the Board. The Incentive Plan permits stock-based awards to be made to employees, directors, or consultants of the Company or its affiliates, as determined by the Compensation and Human Capital Committee of the Board. Under the 2021 Incentive Plan, 15,600,000 shares of common stock have been reserved for issuance. As of June 30, 2022, unvested awards relating to approximately 2,327,000 shares were outstanding under the long-term equity award program or “Emergence LTI Program”.

Restricted Stock

The following summary presents information regarding unvested restricted stock under the 2021 Incentive Plan:

2021 Incentive Plan
		Weighted
		Average
	Number of	Grant Date		Aggregate
	Shares	Fair Value		Fair Value
	(in thousands)	(per share)		(in millions)
Balance at January 1, 2022	2,483	$	28.67	$	72
Restricted stock granted	941	$	25.87	$	25
Restricted stock vested	(817)	$	25.69	$	(22)
Restricted stock forfeited	(92)	$	25.91
Balance at June 30, 2022	2,515	$	25.84	$	67

For purposes of determining compensation expense, the fair value of each restricted stock grant is estimated based on the closing price of our common stock on the date of grant. The non-vested restricted stock units granted in 2021 generally vest, and are expensed, on a ratable basis over three years from the grant date of the award. Total remaining unrecognized compensation cost associated with unvested restricted stock awards that is deferred at June 30, 2022 was $62 million and the weighted average vesting period over which this cost is expected to be recognized is approximately 2 years.

None of the restricted stock awards may be sold, assigned, pledged, or otherwise transferred, voluntarily or involuntarily, by the employees until the restrictions lapse, subject to limited exceptions. The restrictions are time-based. Compensation expense, including compensation related to non-employee directors, recognized in “Selling, general and administrative expenses”, of $19 million for the six month-period ended June 30, 2022, has been recorded in connection with restricted stock.

Performance Stock Units

Under the 2021 Incentive Plan, a target number of performance units are awarded to each participant with respect to the three-year performance period (a “Measurement Period”). The performance metrics under the 2021 and 2022 PSU grants consist of targets for (1) Adjusted Fiber EBITDA, (2) Fiber Locations Constructed and (3) Expansion Fiber Penetration. In addition, there is an overall relative total shareholder return (“TSR”) modifier, which is based on Frontier’s total return to stockholders over the Measurement Period relative to the S&P 400 Mid Cap Index. Each performance metric is weighted 33.3%, and targets for each metric are set for each of the three years during the Measurement Period. Achievement of the metrics will be measured separately, and the number of awards earned will be determined based on actual performance relative to the targets of each performance metric, plus the effect of the TSR modifier. Achievement is measured on a cumulative basis for each performance metric individually at the end of the three-year Measurement Period. The payout of the 2021 PSUs can range from 0% to a maximum award payout of 300% of the target units. The payout of the 2022 PSUs

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can range from 0% to a maximum award payout of 200% of the target units. PSUs awards, to the extent earned, will be paid out in the form of common stock shortly following the end of the Measurement Period.

The number of shares of common stock or units earned at the end of the Measurement Period may be more or less than the number of target performance shares or units granted as a result of performance. An executive must maintain a satisfactory performance rating during the Measurement Period and must be employed by Frontier upon determination in order for the award to vest. The Compensation and Human Capital Committee will determine the number of shares earned for the Measurement Period in the first quarter of the year following the end of the Measurement Period.

Under ASC 718, Stock Based Compensation Expense, we establish a grant date and determine the fair value once the targets are finalized. All targets for the 2021 awards have been set and the fair value of the grants will be amortized over the vesting period. For the 2022 PSU awards, the targets related to two of the three performance metrics have not been established. As a result, as of June 30, 2022, we have recognized associated expense with respect to 1/3 of the aggregate outstanding 2022 PSU awards.

The following summary presents information regarding performance shares as of June 30, 2022 and changes during the six months then ended with regard to performance shares awarded under the 2021 Incentive Plan:

2021 Incentive Plan
			Weighted
			Average
	Number of		Grant Date	Aggregate
	Shares		Fair Value	Fair Value
	(in thousands)		(per share)	(in millions)
Balance at January 1, 2022	3,144	$	25.62	$	92
Target performance shares awarded, net	257	$	25.85	$	7
Target performance shares earned	-	$	-	$	-
Target performance shares forfeited	(9)	$	25.61
Balance at June 30, 2022	3,392	$	25.64	$	90

For purposes of determining compensation expense, the fair value of each performance share grant is estimated based on the closing price of a share of our common stock on the date of the grant, adjusted to reflect the fair value of the relative TSR modifier. For the six months ended June 30, 2022, we recognized net compensation expense, reflected in “Selling, general and administrative expenses,” of $16 million related PSU awards.

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(12) Income Taxes:

The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rate:

	Successor				Successor		Predecessor
	For the three months ended June 30,		For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
	2022		2022		2021		2021
Consolidated tax provision at federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income tax expense, net of federal
income tax benefit	15.0		12.0		3.7		0.5
Changes in certain deferred tax balances	1.7		1.1		-		-
Restructuring cost	-		-		-		0.3
Tax reserve adjustment	0.3		0.4		0.6		-
Fresh start and reorganization adjustments	-		-		-		(24.9)
Tax Credit	(0.6)		(0.8)		(1.3)		-
Sec.162(m) - nondeductible Executive Compensation	2.4		3.2		-		-
All other, net	0.8		0.5		6.1		-
Effective tax rate	40.6	%	37.4	%	30.1	%	(3.1)	%

Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the second quarter of 2022, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $41 million ($32 million net of federal benefit) was recorded as of June 30, 2022.

The effective rate for the three and six months ended June 30, 2022, increased as a result of increases to the state rate due to valuation allowances in certain states, arising from non-deductible interest expense primarily related to our $1.2 billion first lien note issuance.

The effective rate changes between the three and six months ended June 30, 2022, as compared to 2021 are primarily due to, as described more fully in Note 1, the Company emergence from bankruptcy on April 30, 2021, and consummation of a taxable disposition of substantially all of the assets and/or subsidiary stock of the Company and utilized substantially all of the Company’s Net Operating Losses (“NOLs”).

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(13) Net Earnings Per Share:

The reconciliation of the net earnings per share calculation is as follows:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2021
Net income used for basic and diluted earnings
per share:
Total basic net income
attributable to Frontier common shareholders	$	101	$	99	$	4,481
Effect of loss related to dilutive stock units		-		-		-
Total diluted net income
attributable to Frontier common shareholders	$	101	$	99	$	4,481
Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		244,723		244,401		104,816
Less: Weighted average unvested restricted stock awards		-		-		(154)
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Basic net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.81
Diluted earnings per share:
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Effect of dilutive stock units		-		-		340
Effect of dilutive restricted stock awards		-		-		-
Total weighted average shares outstanding - diluted		244,723		244,401		105,002
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.68

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	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2021
Net income used for basic and diluted earnings
per share:
Total basic net income
attributable to Frontier common shareholders	$	166	$	99	$	4,541
Effect of loss related to dilutive stock units		-		-		-
Total diluted net income
attributable to Frontier common shareholders	$	166	$	99	$	4,541
Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		244,592		244,401		104,799
Less: Weighted average unvested restricted stock awards		-		-		(215)
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Basic net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.42
Diluted earnings per share:
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Effect of dilutive stock units		-		-		340
Effect of dilutive restricted stock awards		239		-		-
Total weighted average shares outstanding - diluted		244,831		244,401		104,924
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.28

In calculating diluted net income per common share for the six months ended June 30, 2022, the effect of all performance stock units is excluded from the computation as their respective performance metrics have not been satisfied as of June 30, 2022.

Stock Units

At June 30, 2021, the dilutive common stock equivalents consisted of stock units issued under the Non-Employee Directors’ Deferred Fee Equity Plan (Deferred Fee Plan), the Non-Employee Directors’ Equity Incentive Plan (Directors’ Equity Plan), the 2013 Equity Incentive Plan and the 2017 Equity Incentive Plan.

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(14) Comprehensive Income (Loss):

Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting equity (deficit) and pension/postretirement benefit (OPEB) liabilities that, under GAAP, are excluded from net loss.

The components of accumulated other comprehensive income (loss), net of tax, and changes are as follows:

	Pension		OPEB
($ in millions)	Costs		Costs		Total
Balance at January 1, 2022 (Successor) (1)	$	-	$	60	$	60
Other comprehensive income
before reclassifications		-		6		6
Amounts reclassified from accumulated other
comprehensive income to net income		-		(4)		(4)
Net current-period other comprehensive
income		-		2		2
Balance at June 30, 2022 (Successor) (1)	$	-	$	62	$	62
	Pension		OPEB
($ in millions)	Costs		Costs		Total
Balance at January 1, 2021 (Predecessor) (1)	$	(699)	$	(56)	$	(755)
Other comprehensive income
before reclassifications		270		74		344
Amounts reclassified from accumulated other
comprehensive loss to net income		19		(4)		15
Net current-period other comprehensive
income		289		70		359
Cancellation of Predecessor equity		410		(14)		396
Balance at April 30, 2021 (Predecessor) (1)	$	-	$	-	$	-
Balance at April 30, 2021 (Successor) (1)	$	-	$	-	$	-
Other comprehensive income
before reclassifications		-		42		42
Amounts reclassified from accumulated other
comprehensive income to net income		-		(1)		(1)
Net current-period other comprehensive
income		-		41		41
Balance at June 30, 2021 (Successor) (1)	$	-	$	41	$	41

⁽¹⁾ Pension and OPEB amounts are net of tax of $15 million and $234 million as of January 1, 2022 and 2021, respectively and $17 million and $14 million as of June 30, 2022 and 2021, respectively.

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The significant items reclassified from components of accumulated other comprehensive loss are as follows:

	Successor		Successor		Predecessor
	Amount Reclassified from
	Accumulated Other
	Comprehensive Loss (1)
($ in millions)							Affected Line Item in
	For the three months		For the two months		For the one month		the Statement Where
Details about Accumulated Other	ended June 30,		ended June 30,		ended April 30,		Net Income (Loss)
Comprehensive Loss Components	2022		2021		2021		is Presented
Amortization of Pension Cost Items
Actuarial losses	$	-	$	-	$	(6)
One-time loss on disposal		-		-		-
		-		-		(6)	Income (Loss) before income taxes
Tax impact		-		-		1	Income tax benefit
	$	-	$	-	$	(5)	Net income (loss)
Amortization of OPEB Cost Items
Prior-service costs	$	3	$	1	$	3
Actuarial losses		-		-		(2)
		3		1		1	Income (Loss) before income taxes
Tax impact		(1)		-		-	Income tax benefit
	$	2	$	1	$	1	Net income (loss)

	Successor		Successor		Predecessor
	Amount Reclassified from
	Accumulated Other
	Comprehensive Loss (1)
($ in millions)							Affected Line Item in
	For the six months		For the two months		For the four months		the Statement Where
Details about Accumulated Other	ended June 30,		ended June 30,		ended April 30,		Net Income (Loss)
Comprehensive Loss Components	2022		2021		2021		is Presented
Amortization of Pension Cost Items
Actuarial losses	$	-	$	-	$	(24)
One-time loss on disposal		-		-		-
		-		-		(24)	Income (Loss) before income taxes
Tax impact		-		-		5	Income tax benefit
	$	-	$	-	$	(19)	Net income (loss)
Amortization of OPEB Cost Items
Prior-service costs	$	6	$	1	$	10
Actuarial losses		-		-		(5)
		6		1		5	Income (Loss) before income taxes
Tax impact		(2)		-		(1)	Income tax benefit
	$	4	$	1	$	4	Net income (loss)

⁽¹⁾ These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (See Note 15 - Retirement Plans for additional details).

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(15) Retirement Plans:

Frontier recognizes actuarial gains (losses) for our pension and postretirement plans in the period they occur. The components of net periodic benefit cost other than the service cost component for our plans as well as any actuarial gains or losses are included in “Investment and other income (loss)” on the consolidated statement of income.

The following tables provide the components of total pension benefit cost:

	Successor		Successor		Predecessor
	Pension Benefits
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Components of total pension benefit cost
Service cost	$	20	$	13	$	8
Interest cost on projected benefit obligation		25		18		8
Expected return on plan assets		(50)		(31)		(16)
Amortization of unrecognized loss		-		-		6
Total pension (benefit) cost	$	(5)	$	-	$	6
	Successor		Successor		Predecessor
	Pension Benefits
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Components of total pension benefit cost
Service cost	$	41	$	13	$	32
Interest cost on projected benefit obligation		49		18		31
Expected return on plan assets		(99)		(31)		(61)
Amortization of unrecognized loss		-		-		24
Total pension (benefit) cost	$	(9)	$	-	$	26

The components of net periodic benefit cost other than the service cost component are included in “Investment and other income” on the consolidated statement of income.

The value of our pension plan assets decreased $545 million from $2,655 million at December 31, 2021 to $2,110 million at June 30, 2022. This decrease primarily resulted from changes in the market value of investments of $506 million including plan expenses, and benefit payments to participants of $113 million, partially offset by contributions of $74 million.

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(Unaudited)

The following tables provide the components of total postretirement benefit cost:

	Successor		Successor		Predecessor
	Postretirement
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Components of net periodic postretirement benefit cost
Service cost	$	3	$	3	$	2
Interest cost on projected benefit obligation		8		5		2
Amortization of prior service (benefit)		(3)		(1)		(3)
Remeasurement (gain) loss		(96)		13		-
Amortization of unrecognized loss		-		-		2
Net periodic postretirement (benefit) cost	$	(88)	$	20	$	3
	Successor		Successor		Predecessor
	Postretirement
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Components of net periodic postretirement benefit cost
Service cost	$	7	$	3	$	7
Interest cost on projected benefit obligation		14		5		9
Amortization of prior service (benefit)		(6)		(1)		(10)
Remeasurement (gain) loss		(150)		13		-
Amortization of unrecognized loss		-		-		5
Net periodic postretirement (benefit) cost	$	(135)	$	20	$	11

In the first half of 2022, Frontier amended the medical coverage for certain postretirement benefit plans, which necessitated a remeasurement of its other postretirement benefit (OPEB) obligations. This remeasurement resulted in the recognition of a net actuarial gain of $150 million, which was driven primarily from a higher assumed discount rate relative to December 31, 2021. Upon emergence from bankruptcy, Frontier revised its accounting policy to recognize actuarial gains and losses in the period in which they occur. As such, this gain was recorded in “Investment and other income, net” on our consolidated statements of income.

During the six months ended June 30, 2022, we capitalized $11 million of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. During the one month and four months of April 30, 2021, we capitalized $1 million and $7 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. During the two months ended June 30, 2021, we capitalized $4 million of pension and OPEB expense.

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(16) Commitments and Contingencies:

Although from time to time we make short-term purchasing commitments to vendors with respect to capital expenditures, we generally do not enter into firm, written contracts for such activities. In connection with the accelerated fiber build, we have prioritized diversifying our vendor base and finalizing agreements with vendors for relevant labor and materials. Some of these agreements will have initial two-year terms with an option to extend for two years through 2025.

Frontier accepted the FCC’s CAF Phase II offer in 25 states, which provided $313 million in annual support through 2021, to make available 10 Mbps downstream/1 Mbps upstream broadband service to households across some of the 25 states where we operate.

The deployment deadline was December 31, 2021, and final review and audit of households is not complete. To the extent it is determined we did not enable the required number of households with 10 Mbps downstream/1 Mbps upstream broadband service or we were unable to satisfy other FCC CAF Phase II requirements, Frontier will be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual. 

On January 30, 2020, the FCC adopted an order establishing RDOF, a competitive reverse auction to provide support to serve high cost areas. The FCC announced the results of its RDOF Phase I auction on December 7, 2020. Frontier was awarded approximately $371 million over ten years to build gigabit-capable broadband over a fiber-to-the-premises network to approximately 127,000 locations in eight states (California, Connecticut, Florida, Illinois, New York, Pennsylvania, Texas, and West Virginia). The FCC approved Frontier’s Long Form application in March 2022 and Frontier began receiving funding in the second quarter of 2022. Frontier will be required to complete the buildout to these locations by December 31, 2028, with interim target milestones over this period.

On April 30, 2018, an amended consolidated class action complaint was filed in the United States District Court for the District of Connecticut on behalf of certain purported stockholders against Frontier, certain of its current and former directors and officers and the underwriters of certain Frontier securities offerings and in connection with certain disclosures relating to the CTF transaction. The complaint was brought on behalf of all persons who (1) acquired Frontier common stock between February 6, 2015 and February 28, 2018, inclusive, and/or (2) acquired Frontier common stock or Mandatory Convertible Preferred Stock. On March 8, 2019, the District Court granted in its entirety Frontier’s motion to dismiss the complaint and on March 24, 2020, the court denied plaintiffs’ motion for leave to amend. Plaintiffs appealed and prior to oral argument, the parties reached an agreement in principle to resolve the matter. The settlement, which has obtained final court approval, will be covered by insurance and will have no material financial impact on the Company.

On May 19, 2021, the FTC, joined by the attorneys general of Arizona, Indiana, Michigan, North Carolina, and Wisconsin, and two California District Attorneys, filed a complaint against Frontier in the Federal District Court for the Central District of California alleging that Frontier violated federal and state laws by knowingly misrepresenting in its advertisements the Internet speeds it was capable of delivering to DSL customers. On October 4, 2021, the court granted in part and denied in part Frontier’s motion dismiss by dismissing the non-California state claims, but permitting the FTC’s and California’s claims to proceed in the litigation. Frontier expressly denies any wrongdoing but, in the interest of resolving the matter, entered into a settlement with the FTC and California, which required Frontier to make a financial payment of approximately $9 million in costs and civil penalties, along with certain modifications to its DSL advertising and other practices. An accrual was established as of March 31, 2022 for the financial impact of this settlement, which is not material to these

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financial statements. The settlement was approved by the court and the financial payment was made in the second quarter of 2022.

On July 27, 2022, the Connecticut Public Utility Regulatory Authority (“PURA”) issued a Notice of Violation and Assessment of Civil Penalty Order to Cease and Desist (“NOV”) related to the underground excavation and placement of fiber facilities by Frontier and its contractors in Connecticut. The NOV alleges that Frontier and its contractors failed to comply with certain state excavation regulations which created public safety and compliance issues. The NOV prescribes a $5 million fine, which the Company will challenge in a contested proceeding. The NOV also orders Frontier to discontinue certain underground fiber deployment work until the Company submits a compliance plan to ensure compliance with the applicable regulations. Frontier is complying with the NOV and will seek relief from the underground fiber deployment restrictions. On August 1, 2022, the PURA responded to a Frontier motion, clarifying the restrictions and allowing certain underground construction activity to continue. While the Company does not believe that this matter will have a material impact on its fiber build or financial position, results of operations or cash flows, a prolonged ban on underground installations in Connecticut could adversely impact the Company’s ability to meet its build targets in a timely manner.

In addition, we are party to various legal proceedings (including individual actions, class and putative class actions, and governmental investigations) arising in the normal course of our business covering a wide range of matters and types of claims including, but not limited to, general contract disputes, billing disputes, rights of access, taxes and surcharges, consumer protection, advertising, sales and the provision of services, intellectual property, including, trademark, copyright, and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. Litigation is subject to uncertainty and the outcome of individual matters is not predictable. However, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our financial position, results of operations, or cash flows.

In October 2013, the California Attorney General’s Office notified certain Verizon companies, including one of the subsidiaries that we acquired in the CTF Acquisition, of potential violations of California state hazardous waste statutes primarily arising from the disposal of electronic components, batteries and aerosol cans at certain California facilities. We are cooperating with this investigation. We have accrued an amount for potential penalties that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual.

We accrue an expense for pending litigation when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of our existing accruals for pending matters, after considering insurance coverage, is material. We monitor our pending litigation for the purpose of adjusting our accruals and revising our disclosures accordingly, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. We will vigorously defend our interests in pending litigation, and as of this date, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our consolidated financial position, results of operations, or our cash flows.

We conduct certain of our operations in leased premises and also lease certain equipment and other assets pursuant to operating leases. The lease arrangements have terms ranging from 1 to 99 years and several contain rent escalation clauses providing for increases in monthly rent at specific intervals. When rent escalation clauses exist, we record annual rental expense based on the total expected rent payments on a straight-line basis over the lease term. Certain leases also have renewal options. Renewal options that are reasonably assured are included in determining the lease term.

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(Unaudited)

We are party to contracts with several unrelated long-distance carriers. The contracts provide fees based on traffic they carry for us subject to minimum monthly fees.

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Forward-Looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" related to future events. Forward-looking statements address our expectations or beliefs concerning future events, including, without limitation, our future operating and financial performance, our ability to comply with the covenants in the agreements governing our indebtedness and other matters. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and performance and contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “may,” “will,” “would,” or “target.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. We do not intend, nor do we undertake any duty, to update any forward-looking statements.

A wide range of factors could materially affect future developments and performance, including but not limited to:

our significant indebtedness, our ability to incur substantially more debt in the future, and covenants in the agreements governing our current indebtedness that may reduce our operating and financial flexibility;

declines in Adjusted EBITDA relative to historical levels that we are unable to offset;

our ability to successfully implement strategic initiatives, including our fiber buildout and other initiatives to enhance revenue and realize productivity improvements;

our ability to secure necessary construction resources, materials and permits for our fiber buildout initiative in a timely and cost-effective manner;

potential disruptions in our supply chain and the effects of inflation resulting from the COVID-19 pandemic, the global microchip shortage, or otherwise, which could adversely impact our business and hinder our fiber expansion plans;

our ability to effectively manage our operations, operating expenses, capital expenditures, debt service requirement and cash paid for income taxes and liquidity;

competition from cable, wireless and wireline carriers, satellite, fiber “overbuilders” and over the top companies, and the risk that we will not respond on a timely or profitable basis;

our ability to successfully adjust to changes in the communications industry, including the effects of technological changes and competition on our capital expenditures, products and service offerings;

risks related to disruption in our networks, infrastructure and information technology that result in customer loss and/or incurrence of additional expenses;

the impact of potential information technology or data security breaches or other cyber-attacks or other disruptions;

our ability to retain or attract new customers and to maintain relationships with customers, including wholesale customers;

our reliance on a limited number of key supplies and vendors;

declines in revenue from our voice services, switched and nonswitched access and video and data services that we cannot stabilize or offset with increases in revenue from other products and services;

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our ability to secure, continue to use or renew intellectual property and other licenses used in our business;

our ability to hire or retain key personnel;

our ability to dispose of certain assets or asset groups or to make acquisition of certain assets on terms that are attractive to us, or at all;

the effects of changes in the availability of federal and state universal service funding or other subsidies to us and our competitors and our ability to obtain future subsidies;

our ability to meet our CAF II and RDOF obligations and the risk of penalties or obligations to return certain CAF II and RDOF funds;

our ability to defend against litigation and potentially unfavorable results from current pending and future litigation;

our ability to comply with applicable federal and state consumer protection requirements;

the effects of governmental legislation and regulation on our business, including costs, disruptions, possible limitations on operating flexibility and changes to the competitive landscape resulting from such legislation or regulation;

the impact of regulatory, investigative and legal proceedings and legal compliance risks;

our ability to effectively manage service quality in the states in which we operate and meet mandated service quality metrics;

the effects of changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments, including the risk that such changes may benefit our competitors more than us, as well as potential future decreases in the value of our deferred tax assets;

the effects of changes in accounting policies or practices;

our ability to successfully renegotiate union contracts;

the effects of increased medical expenses and pension and postemployment expenses;

changes in pension plan assumptions, interest rates, discount rates, regulatory rules and/or the value of our pension plan assets;

the likelihood that our historical financial information may no longer be indicative of our future performance;

the impact of adverse changes in economic, political and market conditions in the areas that we serve, the U.S. and globally, including but not limited to, disruption in our supply chain, inflation in pricing for key materials or labor, or other adverse changes resulting from epidemics, pandemics and outbreaks of contagious diseases, including the COVID-19 pandemic, natural disasters, economic or political instability or other adverse public health developments;

potential adverse impacts of the COVID-19 pandemic on our business and operations, including potential disruptions to the work of our employees arising from health and safety measures such as social distancing, working remotely and recent applicable federal, state and local mandates and prohibitions, our ability to

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effectively manage increased demand on our network, our ability to maintain relationships with our current or prospective customers and vendors and the ability of our vendors to perform under current or proposed arrangements with us;

potential adverse impacts of climate change and increasingly stringent environmental laws, rules and regulations, and customer expectations;

market overhang from the substantial common stock holdings by our former creditors;

certain provisions of Delaware law and our certificate of incorporation that may prevent efforts by our stockholders to change the direction or management of our company; and

certain other factors set forth in our other filings with the SEC.

Any of the foregoing events, or other events, could cause our results to vary from management’s forward-looking statements included in this report. You should consider these important factors, as well as the risks contained in our most recent Form 10-K and other filings with the SEC, in evaluating any statement in this report or otherwise made by us or on our behalf. We have no obligation to update or revise these forward-looking statements and do not undertake to do so.

Investors should also be aware that while we do, at various times, communicate with securities analysts, it is against our policy to disclose to them selectively any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by an analyst, irrespective of the content of the statement or report. To the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not our responsibility.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Frontier Communications Parent, Inc. is a provider of communications services in the United States, with approximately 2.8 million broadband customers and 15,074 employees, operating in 25 states as of June 30, 2022. We offer a broad portfolio of communications services for consumer and business customers. These services include data and Internet services, video services, voice services, access services, and advanced hardware and network solutions.  

Business Overview

Frontier’s purpose is to Build Gigabit America^TM by expanding and transforming our fiber network in order to meet the rapidly increasing demand for data from both our consumer and business customers. We believe that a fiber network has competitive advantages to be able to meet this growing demand, including faster download speeds, faster upload speeds, and lower latency levels than alternative broadband services.

In August 2021, we announced our plan to accelerate our fiber build to reach 10 million total fiber passings by December 31, 2025. We are prioritizing our fiber build activities to locations which we believe will provide the highest investment returns. Over time, we expect our business mix will shift significantly, with a larger percentage of revenue coming from fiber as we implement our expansion plan.

Our strategy focuses on four levers of value creation: fiber deployment, fiber broadband penetration, improving the customer experience, and operational efficiency. We accomplished the following objectives in the second quarter of 2022:

We built fiber to approximately 281,000 locations, resulting in approximately 4.4 million total locations passed with fiber as of June 30, 2022.

We accelerated our fiber build and announced that we expect to exceed our 2022 build target of 1 million locations by an additional 100,000 to 200,000 locations. Our plan remains on track, within our established cost parameters, and we have solidified our fiber build supply chain with multi-year agreements with key labor and equipment partners.

We added 54,000 fiber broadband customer net additions, resulting in fiber broadband customer growth of 13.4% versus the second quarter of 2021.

oIn our Base Fiber Network of 3.2 million locations, we achieved broadband penetration of 43%, an increase of 140bps from the second quarter of 2021 and approaching our terminal penetration target of 45%.

oFiber locations constructed in 2020 reached broadband penetration of 22% and 44% after 12 and 24 months, respectively.

oFiber locations constructed in 2021 reached penetration of 17% after 12 months.

Fiber broadband customer net additions continued to outpace copper broadband customer net losses, resulting in 8,000 total broadband customer net additions.

We achieved sequential growth in consumer revenue for the first time in more than three years, led by strong fiber broadband growth.

We realized $201 million of gross annualized cost savings as of June 30, 2022 and remain on track to exceed our goal of $250 million of gross annual cost savings by 2023.

We successfully completed an offering of $1.2 billion first lien notes, further strengthening our balance sheet and securing funding for our fiber build through mid-2024.

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During the first half of 2022, markets remained volatile and the economic outlook remains uncertain. We continue to closely monitor market factors including potential disruptions in our supply chain, tightening labor markets, actual or perceived inflation, the cost of borrowing, and evolution of the ongoing COVID-19 pandemic. We continuously evaluate the impact these and other factors may have on our business, including demand for our products and services, our ability to execute on our strategic priorities and our financial condition and results of operations. Through June 30, 2022 the overall operational and financial impacts to our business have not been significant.

Financial Overview

We reported operating income of $166 million and Non-GAAP operating income of $298 million for the three months ended June 30, 2022 and 2021, respectively, a decrease of $132 million. After adjusting for the impact of fresh start accounting, our Non-GAAP operating income would have decreased by $127 million, as compared to the prior year period.

We reported operating income of $287 million and Non-GAAP operating income of $557 million for the six months ended June 30, 2022 and 2021, respectively, a decrease of $270 million. After adjusting for the impact of fresh start accounting, our Non-GAAP operating income would have decreased by $250 million, as compared to the prior year period.

Our operating results decreased primarily due to decreases in subsidy and other revenue, and lease impairment charges, partially offset by a reduction in depreciation and amortization expense as a result of the lower asset bases established upon our implementation of fresh start accounting and lower video content costs as compared to the corresponding period in 2021.

Presentation of Results of Operations

The sections below include tables that present customer counts, average monthly consumer revenue per customer (“ARPC”) and consumer customer churn. We define churn as the number of consumer customer deactivations during the month divided by the number of consumer customers at the beginning of the month and utilize the average of each monthly churn in the period. Management believes that consumer customer counts and average monthly revenue per customer are important factors in evaluating our consumer customer trends. Among the key services we provide to consumer customers are voice service, data service and video service. We continue to explore the potential to provide additional services to our customer base, with the objective of meeting our customers’ communications needs.

The following section should be read in conjunction with the unaudited interim consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2021. The following charts present key customer metrics, disaggregation of revenue, and the results of operations of the consolidated company.

(a)Results of Operations

Unless otherwise indicated, the discussion of the customer metrics and components of operating income for the table that follows relates only to the Non-GAAP financial results for the three and six months ended June 30, 2022, as compared to the financial results for the three and six months ended June 30, 2021.

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Customer Trends

	As of or for the three months ended June 30,
(Customer and Employee Metrics in thousands)	2022		2021		% Change
Customers
Consumer		3,159		3,196	(1)	%
Consumer Customer Metrics
Net customer additions (losses)		(10)		(38)	(74)	%
ARPC	$	83.35	$	85.65	(3)	%
Customer Churn		1.53%		1.54%	(1)	%
Broadband Customer Metrics (1)
Fiber Broadband
Consumer customers		1,438		1,263	14	%
Business customers		102		95	7	%
Consumer net customer additions		50		12	317	%
Consumer customer churn		1.43%		1.53%	(6)	%
Consumer customer ARPU	$	63.35	$	63.10	0	%
Copper Broadband
Consumer customers		1,163		1,297	(10)	%
Business customers		124		143	(13)	%
Consumer net customer additions (losses)		(41)		(30)	37	%
Consumer customer churn		1.73%		1.67%	3	%
Consumer customer ARPU	$	48.47	$	44.80	8	%
Other Metrics
Employees		15,074		16,005	(6)	%

		For the six months ended June 30,
	(Customer and Employee Metrics in thousands)	2022		2021		% Change
	Consumer Customer Metrics
	Net customer additions (losses)		(6)		(68)	(91)	%
	ARPC	$	82.51	$	86.34	(4)	%
	Customer Churn		1.44%		1.49%	(3)	%
	Broadband Customer Metrics (1)
	Fiber Broadband
	Consumer net customer additions		102		25	308	%
	Consumer customer churn		1.31%		1.47%	(11)	%
	Consumer customer ARPU	$	62.76	$	61.88	1	%
	Copper Broadband
	Consumer net customer additions		(71)		(52)	37	%
	Consumer customer churn		1.63%		1.65%	(1)	%
	Consumer customer ARPU	$	47.09	$	43.98	7	%
(1)	Amounts presented exclude related metrics for our wholesale customers.

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Customers

We experienced a decrease in customers of approximately 1% as of June 30, 2022, as compared to the prior year period.

The average monthly consumer revenue per customer (“consumer ARPC”) decreased $2.30, or 3%, to $83.35 and $3.83, or 4%, to $82.51 for the three and six months ended June 30, 2022, compared to the three and six months ended June 30, 2021, respectively.

The decrease for the quarter ended June 30, 2022, was primarily a result of decreased video services and consumer voice services, slightly offset by increased fiber data as well as price adjustments and promotional roll-offs on our voice, data and video services. The moderate decline in ARPC is expected to continue as our customer mix becomes more weighted towards broadband service. We have de-emphasized the sale of low margin video products, which have been a material part of the overall ARPC. In our expansion markets, we expect 15% and 20% penetration within 12 months and 25% after 24 months.

Fiber Broadband Customers

The Company has initiated an investment strategy focused on expanding and improving its fiber network. In conjunction with this strategy, the Company is also working to improve its product positioning in both existing and new fiber markets.

Although still in the early stages of this fiber investment strategy, results are promising. The quarter ended June 30, 2022 represents the twelfth consecutive quarter of positive consumer fiber net adds. For the quarter ended June 30, 2022, Frontier added 50,000 consumer fiber broadband customers compared to 12,000 for the three months ended June 30, 2021. Customers who migrated from our copper base constituted a minor portion of these consumer fiber broadband customer net additions in the six months ended June 30, 2022.

For the three and six months ended June 30, 2022, Frontier added 4,000 and 6,000 business fiber broadband customers compared to zero net additions for both the three and six months ended June 30, 2021.

Our focus on expanding and improving our fiber network is contributing to improved customer retention. Our average monthly consumer fiber broadband churn was 1.43% and 1.31% for the three and six months ended June 30, 2022, compared to 1.53% and 1.47% for the three and six months ended June 30, 2021, respectively. The improvements in customer churn were driven partly by increased focus at key customer touchpoints such as installation, first bill, and end of promotion periods, and partly by improved retention associated with inflation-related pricing actions, which were implemented in first quarter of 2021 and second quarter of 2022.

In addition to our improvement in fiber net adds, we continue to see improvements in the average monthly consumer fiber broadband revenue per customer which increased $0.25 to $63.35 and $0.88 to $62.76 for the three and six months ended June 30, 2022, compared to the three and six months ended June 30, 2021, respectively. These increases are due to price increases and shifting mix towards higher speed tiers, a shift which has accelerated since the launch of our 2 gigabit offering on February 22, 2022.

Copper Broadband Customers

For the three and six months ended June 30, 2022, Frontier lost 41,000 and 71,000 consumer copper broadband customers compared to a loss of 30,000 and 52,000 for the three and six months ended June 30, 2021, respectively. Our fiber investment strategy has impacted these results as new fiber markets will not only cease selling the copper broadband product, but we will focus on converting existing copper broadband customers to a fiber product.

For the three and six months ended June 30, 2022, Frontier lost 5,000 and 9,000 business copper broadband customers compared to a loss of 4,000 and 9,000 in the three and six months ended June 30, 2021, respectively.

Our average monthly consumer copper broadband churn was 1.73% and 1.63% for the three and six months ended

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June 30, 2022, compared to 1.67% and 1.65% in the three and six months ended June 30, 2021. The reductions in customer churn were primarily driven by customer retention initiatives.

Financial Results

	Successor		Successor		Predecessor		Non-GAAP Combined
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,		For the three months ended June 30,
	2022		2021		2021		2021		% Change
Data and Internet services	$	847	$	556	$	283	$	839	1	%
Voice services		381		283		160		443	(14)	%
Video services		134		105		54		159	(16)	%
Other		80		62		30		92	(13)	%
Revenue from contracts ‎ with customers		1,442		1,006		527		1,533	(6)	%
Subsidy and other revenue		17		55		28		83	(80)	%
Revenue		1,459		1,061		555		1,616	(10)	%
Operating expenses:
Cost of Service		546		396		210		606	(10)	%
Selling, general and administrative expenses		427		269		129		398	7	%
Depreciation and amortization		290		179		119		298	(3)	%
Restructuring costs and other charges		30		11		5		16	88	%
Total operating expenses	$	1,293	$	855	$	463	$	1,318	(2)	%
Operating income		166		206		92		298	(44)	%
Consumer		791		543		283		826	(4)	%
Business and wholesale		651		463		244		707	(8)	%
Revenue from contracts ‎ with customers	$	1,442	$	1,006	$	527	$	1,533	(6)	%
Fiber revenue		685		455		225		680	1	%
Copper revenue		757		551		283		834	(9)	%
Non-network specific revenue		-		-		19		19	(100)	%
Revenue from contracts ‎ with customers	$	1,442	$	1,006	$	527	$	1,533	(6)	%

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	Successor		Successor		Predecessor		Non-GAAP Combined
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,		For the six months ended June 30,
	2022		2021		2021		2021		% Change
Data and Internet services	$	1,683	$	556	$	1,125	$	1,681	0	%
Voice services		767		283		647		930	(18)	%
Video services		271		105		223		328	(17)	%
Other		163		62		125		187	(13)	%
Revenue from contracts ‎ with customers		2,884		1,006		2,120		3,126	(8)	%
Subsidy and other revenue		22		55		111		166	(87)	%
Revenue		2,906		1,061		2,231		3,292	(12)	%
Operating expenses:
Cost of Service		1,099		396		830		1,226	(10)	%
Selling, general and administrative expenses		862		269		537		806	7	%
Depreciation and amortization		574		179		506		685	(16)	%
Restructuring costs and other charges		84		11		7		18	367	%
Total operating expenses	$	2,619	$	855	$	1,880	$	2,735	(4)	%
Operating income		287		206		351		557	(48)	%
Consumer		1,567		543		1,133		1,676	(7)	%
Business and wholesale		1,317		463		987		1,450	(9)	%
Revenue from contracts ‎ with customers	$	2,884	$	1,006	$	2,120	$	3,126	(8)	%
Fiber revenue		1,357		455		903		1,358	(0)	%
Copper revenue		1,527		551		1,140		1,691	(10)	%
Non-network specific revenue		-		-		77		77	(100)	%
Revenue from contracts ‎ with customers	$	2,884	$	1,006	$	2,120	$	3,126	(8)	%

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REVENUE

The table below presents our revenue by technology for the periods indicated:

	Successor		Non-GAAP Combined
	For the three months		For the three months
	ended June 30,		ended June 30,		$ Increase		% Increase
($ in millions)	2022		2021		(Decrease)		(Decrease)
Fiber	$	685	$	680	$	5	1	%
Copper		757		834		(77)	(9)	%
Other (2)		-		19		(19)	(100)	%
Revenue from contracts with customers (1)		1,442		1,533		(91)	(6)	%
Subsidy revenue		17		83		(66)	(80)	%
Total revenue	$	1,459	$	1,616	$	(157)	(10)	%

	Successor		Non-GAAP Combined
	For the six months		For the six months
	ended June 30,		ended June 30,		$ Increase		% Increase
($ in millions)	2022		2021		(Decrease)		(Decrease)
Fiber	$	1,357	$	1,358	$	(1)	(0)	%
Copper		1,527		1,691		(164)	(10)	%
Other (2)		-		77		(77)	(100)	%
Revenue from contracts with customers (1)		2,884		3,126		(242)	(8)	%
Subsidy revenue		22		166		(144)	(87)	%
Total revenue	$	2,906	$	3,292	$	(386)	(12)	%

⁽¹⁾Includes $16 million and $16 million, and $32 million and $37 million of lease revenue for the three and six months ended June 30, 2022 and 2021, respectively.

⁽²⁾Includes USF fees that, in conjunction with the application of fresh start accounting, are now recorded net.

Our revenue streams are primarily a result of recurring data, voice, and video services delivered over either our copper or fiber network. Revenues are considered copper or fiber based on the “last-mile” technology used to connect the customer location. With our investment strategy to expand and improve our fiber network and the corresponding fiber focus of our sales and marketing efforts, the company is experiencing growth in fiber broadband revenue and a decline in copper revenue. We expect this trend to continue due to strong fiber demand and the migration of customers from copper to fiber once the fiber network is available.

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Revenue for our consumer and business and wholesale customers was as follows:

	Successor		Non-GAAP Combined
	For the three months ended June 30,		For the three months ended June 30,		$ Increase		% Increase
($ in millions)	2022		2021		(Decrease)		(Decrease)
Consumer	$	791	$	826	$	(35)	(4)	%
Business and wholesale		651		707		(56)	(8)	%
Revenue from contracts with customers (1)		1,442		1,533		(91)	(6)	%
Subsidy and other revenue		17		83		(66)	(80)	%
Total revenue	$	1,459	$	1,616	$	(157)	(10)	%
	Successor		Non-GAAP Combined
	For the six months ended June 30,		For the six months ended June 30,		$ Increase		% Increase
($ in millions)	2022		2021		(Decrease)		(Decrease)
Consumer	$	1,567	$	1,676	$	(109)	(7)	%
Business and wholesale		1,317		1,450		(133)	(9)	%
Revenue from contracts with customers (1)		2,884		3,126		(242)	(8)	%
Subsidy and other revenue		22		166		(144)	(87)	%
Total revenue	$	2,906	$	3,292	$	(386)	(12)	%

⁽¹⁾Includes $16 million and $16 million, and $32 million and $37 million of lease revenue for the three and six months ended June 30, 2022 and 2021, respectively.

We conduct business with a range of consumer, business and wholesale customers and we generate both recurring and non-recurring revenues. Recurring revenues are primarily billed at fixed recurring rates, with some services billed based on usage. Revenue recognition is not dependent upon significant judgments by management, with the exception of a determination of the provision for expected credit losses.

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Consumer

Consumer customer losses were driven by reductions in our copper broadband and stand-alone voice customers, partially offset by net additions of fiber broadband customers. Customer preferences as well as our fiber investment initiative is resulting in a migration of the customer base to fiber.

For the three and six months ended June 30, 2022, Frontier lost 10,000 and 6,000 consumer customers compared to a loss of 38,000 and 68,000 for the three and six months ended June 30, 2021. This includes net gains of consumer broadband customers of 9,000 and 31,000 for the three and six months ended June 30, 2022, as compared to net losses of our consumer broadband customers of approximately 18,000 and 27,000 during the same periods in 2021. This improvement is a direct result of our fiber initiatives.

For the three and six months ended June 30, 2022, compared to the three and six months ended June 30, 2021:

we experienced 4% and 7% decline in consumer revenues for the three and six months ended June 30, 2022, respectively, driven by a 3% and 4% decrease in ARPC and 1% decline in the number of customers as compared to the same periods in 2021. This decline was driven predominantly a result of decreases in voice, video and copper broadband, offset by increases in fiber broadband. The Company’s fiber initiative will result in our revenue mix continuing to move to fiber broadband.

we experienced 13% and 12% improvement in consumer fiber broadband revenues for the three and six months ended June 30, 2022, respectively. This improvement is a result of our fiber initiative which resulted in net adds of 175,000 customers during the 12 month period, and our continued focus on product positioning in both new and existing markets which resulted in ARPU improvements of $0.25 and $0.88 for the three and six months ended June 30, 2022.

we experienced approximately 2% and 3% decline in consumer copper broadband revenues for the three and six months ended June 30, 2022. As our copper footprint is transitioned to fiber, we expect fewer copper sales opportunities, and will proactively migrate existing broadband customers from copper to fiber, both of which will reduce our copper net adds.

Business

For the three and six months ended June 30, 2022, we experienced an 8% and 9% decline in our business and wholesale revenues, respectively. Business revenues declined primarily due to the secular pressures in copper voice revenue as well as the loss of equipment revenue associated with the sale of our equipment subsidiary. Wholesale revenues declined primarily due to secular pressures in copper voice revenue, legacy circuit revenue, and lower rates for our network access services charged to our wholesale customers for the six months ended June 30, 2022.

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Revenue by product and service type was as follows:

	Successor		Non-GAAP Combined
	For the three months ended June 30,		For the three months ended June 30,		$ Increase		% Increase
($ in millions)	2022		2021		(Decrease)		(Decrease)
Data and Internet services	$	847	$	839	$	8	1	%
Voice services		381		443		(62)	(14)	%
Video services		134		159		(25)	(16)	%
Other		80		92		(12)	(13)	%
Revenue from contracts with customers (1)		1,442		1,533		(91)	(6)	%
Subsidy and other revenue		17		83		(66)	(80)	%
Total revenue	$	1,459	$	1,616	$	(157)	(10)	%
	Successor		Non-GAAP Combined
	For the six months ended June 30,		For the six months ended June 30,		$ Increase		% Increase
($ in millions)	2022		2021		(Decrease)		(Decrease)
Data and Internet services	$	1,683	$	1,681	$	2	0	%
Voice services		767		930		(163)	(18)	%
Video services		271		328		(57)	(17)	%
Other		163		187		(24)	(13)	%
Revenue from contracts with customers (1)		2,884		3,126		(242)	(8)	%
Subsidy and other revenue		22		166		(144)	(87)	%
Total revenue	$	2,906	$	3,292	$	(386)	(12)	%

⁽¹⁾Includes $16 million and $16 million, and $32 million and $37 million of lease revenue for the three and six months ended June 30, 2022 and 2021, respectively.

We categorize our products, services, and other revenues into the following five categories:

Data and Internet Services

We provide data and Internet services to our consumer, business and wholesale customers. Data and Internet services consist of fiber broadband services, copper broadband services and network access revenues.

Our fiber expansion strategy is expected to positively impact data and Internet services. This network expansion will provide faster, symmetrical broadband speeds and provide customer and revenue growth opportunities for fiber broadband and certain network access products like ethernet. This initiative will also create an opportunity for us to provide more fiber-based services to our customers.

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($ in millions)	For the three months ended		For the six months ended
Data and Internet services revenue, June 30, 2021	$	839	$	1,681
Change in fiber broadband revenue		34		63
Change in copper broadband revenue		(9)		(21)
Change in other data and Internet services		(16)		(38)
Impact of fresh start accounting		(1)		(2)
Data and Internet services revenue, June 30, 2022	$	847	$	1,683

Upon emergence from bankruptcy, the accumulated balances in deferred installation fee revenue were eliminated as part of fresh start accounting, which has resulted in a decline in revenue recognition.

The revenue growth was primarily driven by 4% improvement in our broadband revenue offset by declines in other data revenue for both the three and six months ended June 30, 2022, as compared to the corresponding periods in 2021. The increases in broadband revenue were driven by growth in fiber, offset somewhat by continued declines in copper. The other data revenues declines were the result of an ongoing migration of our carrier customers from legacy technology circuits to lower priced ethernet circuits. The period over period decrease in data and Internet services revenue continued to improve for the three and six months ended June 30, 2022, as a result of the Company’s initiatives.

Voice Services

The Company provides voice services consisting of traditional local and long-distance service and voice over Internet protocol (VoIP) service provided over our fiber and copper broadband products. It also includes enhanced features such as call waiting, caller identification and voice messaging services.

($ in millions)	For the three months ended		For the six months ended
Voice services revenue, June 30, 2021	$	443	$	930
Change in other voice services revenue		(43)		(87)
Impact of fresh start accounting		(19)		(76)
Voice services revenue, June 30, 2022	$	381	$	767

Upon implementation of fresh start accounting policies, Frontier is recording both revenue and expense related to Universal Service Fund (“USF”) surcharges on a net basis, as opposed to recording each on a gross basis prior to emergence. These declines were primarily due to net losses in business and consumer customers in addition to fewer customers bundling voice services with broadband.

Video Services

Video services include revenues generated from traditional television (TV) services provided directly to consumer customers as well as satellite TV services provide through Dish. Video services also includes pay-per-view revenues, video on demand, equipment rentals, and video advertising. The Company has made the strategic decision to limit sales of new traditional TV services, focusing on our broadband products and OTT video options. We are partnering with OTT video providers and expect this to grow as OTT options are offered with our broadband products.

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($ in millions)	For the three months ended		For the six months ended
Video services revenue, June 30, 2021	$	159	$	328
Change in video services revenue		(23)		(49)
Impact of fresh start accounting		(2)		(8)
Video services revenue, June 30, 2022	$	134	$	271

Under our fresh start accounting policies, Frontier is recording both revenue and expense related to certain surcharges and taxes on a net basis, as opposed to recording each on a gross basis prior to emergence. These declines were primarily driven by linear video customer losses, partially offset by price increases.

Other

Other customer revenue includes directory listing services and switched access revenue. Switched access revenue includes revenue derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic. These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies.

($ in millions)	For the three months ended		For the six months ended
Other revenue, June 30, 2021	$	92	$	187
Change in other services revenue		(14)		(32)
Impact of fresh start accounting		2		8
Other revenue, June 30, 2022	$	80	$	163

Under our fresh start accounting policies, Frontier has classified the provision for bad debt as expense, rather than a reduction of revenue as it was recorded prior to emergence, resulting in increases to other customer revenues of $4 million and $14 million for the three and six months ended June 30, 2022, respectively. Additionally, the accumulated balances in deferred installation fee revenue were eliminated as part of fresh start accounting, which has resulted in a $2 million and $6 million decline in revenue recognized for the three and six months ended June 30, 2022, as compared to the prior year periods. After adjusting for the impacts of these policy changes, other customer services revenue declined $14 million and $32 million for the three and six months ended June 30, 2022, respectively. These decreases were primarily driven by reductions in CPE sales, late payment fees, early termination fees and reconnect fees.

Subsidy and other revenue

Subsidy and other revenue decreased $66 million and $144 million for the three and six months ended June 30, 2022, compared to the prior year period, primarily due to the CAF II program which was completed in 2021.

($ in millions)	For the three months ended		For the six months ended
Subsidy and other revenue, June 30, 2021	$	83	$	166
Change in CAF II subsidies		(78)		(157)
Change in RDOF, subsidy, and other services revenue		11		8
Impact of fresh start accounting		1		5
Subsidy and other revenue, June 30, 2022	$	17	$	22

Upon implementation of new fresh start accounting policies, certain governmental grants that were historically presented on a net basis as part of capital expenditures, are presented on a gross basis and included in subsidy, resulting in increases to Subsidy and other revenue of $1 million and $5 million for the three and six months ended June 30, 2022.

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OPERATING EXPENSES

	Successor		Non-GAAP Combined
	For the three months		For the three months
($ in millions)	ended June 30,		ended June 30,		($)			%
	2022		2021		Variance			Variance
Operating expenses:
Cost of Service	$	546	$	606		$	(60)		(10)	%
Selling, general and administrative expenses		427		398			29		7	%
Depreciation and amortization		290		298			(8)		(3)	%
Restructuring costs and other charges		30		16			14		88	%
Total operating expenses	$	1,293	$	1,318		$	(25)		(2)	%

	Successor		Non-GAAP Combined
	For the six months		For the six months
($ in millions)	ended June 30,		ended June 30,			($)			%
	2022		2021			Variance			Variance
Operating expenses:
Cost of Service	$	1,099		$	1,226		$	(127)		(10)	%
Selling, general and administrative expenses		862			806			56		7	%
Depreciation and amortization		574			685			(111)		(16)	%
Restructuring costs and other charges		84			18			66		367	%
Total operating expenses	$	2,619		$	2,735		$	(116)		(4)	%

Cost of service

Cost of service expenses include access charges and other third-party costs directly attributable to connecting customer locations to our network, video content costs and certain promotional costs. Such access charges and other third-party costs exclude network related expenses, depreciation and amortization, and employee related expenses.

As a result of the fresh start accounting policy change to account for USF fees and certain other surcharges and taxes on a net basis instead of on a gross basis in both revenue and expense, cost of service decreased by $21 million and $84 million for the three and six months ended June 30, 2022, respectively. After adjusting for this fresh start change, cost of service declined $39 million and $43 million for the three and six months ended June 30, 2022, respectively. For the three and six months ended June 30, 2022, the decrease in cost of service expense was driven by lower video content costs as a result of declines in video customers, non-renewal of certain content agreements and decreased CPE costs. These decreases more than offset higher fuel and energy prices, and outside service rate increases resulting from increased inflation.

Selling, general, and administrative expenses

Selling, general, and administrative expenses (SG&A expenses) include the salaries, wages and related benefits and the related costs of corporate and sales personnel, travel, insurance, non-network related rent, advertising, and other administrative expenses.

As a result of the fresh start accounting policy change to classify the provision for bad debt as an expense rather than a reduction to revenue, SG&A expenses were $4 million and $14 million higher for the three and six months ended June 30, 2022, respectively. Additionally, as a result of fresh start accounting policy changes, we have expensed $4 million and $17 million of certain administrative items that were previously capitalized by the predecessor for the three and six months ended June 30, 2022. After adjusting for the fresh start impacts, SG&A expenses increased by $21 million and $25 million for the three and six months ended June 30, 2022. This increase was primarily a result of transformational investments that are non-recurring such as rebranding costs, higher professional services and recruiting fees, partially offset by a non-recurring $8 million sales tax refund in the current quarter.

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Pension and Other Postretirement Employee Benefit (OPEB) costs

Frontier allocates certain pension/OPEB expense to Cost of service and SG&A expenses. Total pension and OPEB service costs were as follows:

	Successor		Non-GAAP Combined
($ in millions)	For the three months ended June 30, 2022		For the three months ended June 30, 2021
Total pension/OPEB expenses	$	23	$	26
Less: costs capitalized into capital expenditures		(5)		(5)
Net pension/OPEB costs	$	18	$	21

	Successor		Non-GAAP Combined
($ in millions)	For the six months ended June 30, 2022		For the six months ended June 30, 2021
Total pension/OPEB expenses	$	48	$	55
Less: costs capitalized into capital expenditures		(11)		(11)
Net pension/OPEB costs	$	37	$	44

Depreciation and amortization

As a result of fresh start accounting, both Frontier’s fixed assets and intangible assets were adjusted to fair value as of the Effective Date. These changes, which decreased the carrying value of its fixed assets and increased the carrying value of its intangible assets. For the three and six months ended June 30, 2022, the decreased depreciation and amortization expense was driven by lower depreciation expense as a result of reduced fixed asset bases following the fresh start adjustment noted above.

Restructuring costs and other charges

Restructuring costs and other charges consist of consulting and advisory fees related to our balance sheet restructuring prior to filing our Chapter 11 Cases and subsequent to the Emergence Date, workforce reductions, transformation initiatives, lease impairment costs, and other restructuring expenses.

For the three months ended June 30, 2022, restructuring costs and other charges increased due to, $26 million of severance and employee costs resulting from workforce reductions, and $4 million of costs related to other restructuring activities.

For the six months ended June 30, 2022, restructuring costs and other charges increased due to $44 million of lease impairment costs from the strategic exit of certain facilities, $32 million of severance and employee costs resulting from workforce reductions, and $8 million of costs related to other restructuring activities. Of the $32 million in severance and employee costs, approximately $26 million related to the second quarter of 2022, as a result of larger workforce reductions.

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OTHER NON-OPERATING INCOME AND EXPENSE

	Successor		Successor		Predecessor		Non-GAAP Combined
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,		For the three months ended June 30,		$		%
($ in millions)	2022		2021		2021		2021		Variance		Variance
Investment and other income (loss), net	$	122	$	(2)	$	(1)	$	(3)	$	125	NM
Reorganization items, net	$	-	$	-	$	4,196	$	4,196	$	(4,196)	(100)	%
Interest expense	$	(118)	$	(62)	$	(29)	$	(91)	$	(27)	30	%
Income tax expense (benefit)	$	69	$	43	$	(223)	$	(180)	$	249	(138)	%
NM - Not meaningful
	Successor		Successor		Predecessor		Non-GAAP Combined
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,		For the six months ended June 30,		$		%
($ in millions)	2022		2021		2021		2021		Variance		Variance
Investment and other income (loss), net	$	199	$	(2)	$	1	$	(1)	$	200	NM
Reorganization items, net	$	-	$	-	$	4,171	$	4,171	$	(4,171)	(100)	%
Interest expense	$	(221)	$	(62)	$	(118)	$	(180)	$	(41)	23	%
Income tax expense (benefit)	$	99	$	43	$	(136)	$	(93)	$	192	(206)	%
NM - Not meaningful

Investment and other income, net

Investment and other income, net increased by $125 million and $200 million for the three and six months ended June 30, 2022, driven by a remeasurement gain related to our other postretirement benefit obligation of $96 million and $150 million. This was partially offset by an increase of $10 million and $31 million non-operating pension income, as a result of actuarial losses that are no longer being amortized from accumulated other comprehensive income (loss).

Reorganization items, net

The Company has incurred costs associated with the reorganization, primarily the write-off of certain debt issuance costs and net discounts, financing costs, and legal and professional fees and fresh start accounting adjustments. These include expenses incurred subsequent to the Petition Date. During the three and six months ended June 30, 2021, Frontier recognized $4,196 million and $4,171 million in reorganization items associated with the restructuring of our balance sheet.

Interest expense

For the three and six months ended June 30, 2022, interest expense increased $27 million and $41 million, as compared to the same period in 2021. The increase in interest expense was primarily driven by a higher debt balance, partially offset by lower interest rates. 

Income tax expense

During the three and six months ended June 30, 2022, the successor recorded income tax expense of $69 million and $99 million on pre-tax income of $170 million and $265 million, respectively. During the four months ended April 30, 2021, the Predecessor recorded an income tax benefit of $136 million on pre-tax income of $4,405 million. During the two months ended June 30, 2021, the successor recorded income tax expense of $43 million on pre-tax income

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of $142 million. Our effective tax rates for the three and six months ended June 30, 2022 were 40.6% and 37.4%, respectively. The effective rate increased as a result of increases to the state rate due to valuation allowances in certain states, arising from non-deductible interest expense primarily related to our $1.2 billion first lien note issuance. Our effective tax rates for the four months ended April 30, 2021 and the two months ended June 30, 2021 were (3.1%) and 30.3%, respectively.

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(b) Liquidity and Capital Resources

As of June 30, 2022, we had liquidity of approximately $3,745 million, comprised of cash and cash equivalents of $678 million, short-term investments consisting of $2,300 million of term deposits earning interest in excess of traditional bank deposit rates, and placed with banks with A-1/P-1 or equivalent credit quality, and undrawn revolving credit facility of $767 million.

Analysis of Cash Flows

As of June 30, 2022, we had unrestricted cash and cash equivalents aggregating $678 million. For the six months ended June 30, 2022, we used cash flow from operations, cash on hand, and cash from prior year borrowings principally to fund our cash investing and financing activities, which were primarily short-term investments and capital expenditures.

On May 12, 2022, our consolidated subsidiary Frontier Communications Holdings, LLC (“Frontier Holdings”), issued $1.2 billion aggregate principal amount of 8.750% first lien secured notes due 2030 in an offering pursuant to exemptions from the registration requirements of the Securities Act. We intend to use the net proceeds of this offering to fund capital investments and operating costs arising from our fiber build and expansion of its fiber customer base, and for other general corporate purposes.

As of June 30, 2022, we had a working capital surplus of $1,723 million compared to a $1,237 million surplus at December 31, 2021. The primary driver for the change in the working capital surplus at June 30, 2022 was an increase in short-term investments, accounts payable and accrued interest.

Cash Flows from Operating Activities

Cash flows provided from operating activities increased $1,031 million to $757 million for the six months ended June 30, 2022 as compared to the six months ended June 30, 2021. The overall increase in operating cash flows was primarily the result of changes in working capital.

We paid $9 million in net cash taxes during the six months ended June 30, 2022 and $33 million in Non-GAAP combined net cash taxes during the Non-GAAP combined six months ended June 30, 2021.

Cash Flows from Investing Activities

Cash flows used in investing activities were $3,385 million for the six months ended June 30, 2022, compared to Non-GAAP combined cash flows used in investing activities of $759 million for the corresponding period in 2021. Given the long-term nature of our fiber build, as of June 30, 2022, we have invested $2,300 million cash in short-term investments to improve interest income, while preserving funding flexibility.

Capital Expenditures

For the six months ended June 30, 2022 and 2021, our capital expenditures were $1,088 million and $769 million, respectively. Approximately 58% of our capital expenditures in the second quarter of 2022 related to fiber network projects. The driver for the increase in capital expenditure was increased spending for fiber upgrades to our existing copper network, a trend that we expect to continue as we execute our strategy of investing in our fiber network. In addition to the capital expenditures noted above, we had a balance of $250 million in “Accounts payable” on our consolidated balance sheet related to capital expenditures that had not been paid as of June 30, 2022.

Cash Flows from Financing Activities

Cash flows used by financing activities increased $968 million to $1,158 million for the six months ended June 30, 2022 as compared to the Non-GAAP combined corresponding period in 2021. The increase in financing activities were primarily driven by $1,200 million proceeds from long-term debt borrowings partially offset by financing costs,

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lease obligations payments, long-term debt principal payments and other costs.

Capital Resources

Our primary anticipated uses of liquidity are to fund the costs of operations, working capital and capital expenditures and to fund interest payments on our long-term debt. Our primary sources of liquidity are cash flows from operations, cash on hand and borrowing capacity under our $900 million Revolving Facility (as reduced by $133 million of Letters of Credit.)

On May 12, 2022, Frontier Holdings entered into an amendment to its Revolving Facility which, among other things, increased the Revolving Facility by an additional $275 million, to a total of $900 million in aggregate principal amount of revolving credit commitments. Our Amended and Restated Credit Agreement, including our $1,456 million Term Loan Facility and $900 million Revolving Facility, and the indentures governing our outstanding secured First Lien Notes and Second Lien Notes are described in detail in Note 8 to the financial statements contained in Part I of this report.

During the six months ended June 30, 2022, we paid $198 million of cash interest. Our long-term debt is described in detail in Note 8 to the financial statements contained in Part I of this report.

We have assessed our current and expected funding requirements and our current and expected sources of liquidity, and have determined, based on our forecasted financial results and financial condition as of June 30, 2022, that our operating cash flows and existing cash balances, will be adequate to finance our working capital requirements, fund capital expenditures, make required debt interest and principal payments, pay taxes and make other payments. A number of factors, including but not limited to, losses of customers, pricing pressure from increased competition, lower subsidy and switched access revenues, and the impact of economic conditions may negatively affect our cash generated from operations.

Net Operating Losses

In connection with the Company’s emergence from bankruptcy, we consummated a taxable disposition of substantially all of the assets and/or subsidiary stock of the Company. Certain of the NOLs were utilized in offsetting gains from the disposition, certain of the NOLS were extinguished as part of attribute reduction and certain subsidiary NOLS were carried over. Under Section 338(h)(10) of the Code, Predecessor and Successor made elections to step-up tax basis of certain subsidiary assets. Such Section 338(h)(10) elections will generate depreciation and amortization expense going forward, which may result in net operating losses on a go forward basis. Such net operating losses would be carried forward indefinitely but would be subject to an 80% limitation on U.S. taxable income.

Off-Balance Sheet Arrangements

We do not maintain any off-balance sheet arrangements, transactions, obligations or other relationships with unconsolidated entities that would be expected to have a material current or future effect upon our financial statements.

Contractual Obligations

Other than as disclosed elsewhere in this report with respect to the filing of the Chapter 11 Cases, the acceleration of substantially all of our debt, and the application of fresh start accounting, there have been no material changes outside the ordinary course of business to the information provided with respect to our contractual obligations, including indebtedness and purchase and lease obligations, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

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Future Commitments

Frontier participated in the FCC’s CAF Phase II program, which was intended to provide long-term support for broadband in high-cost unserved or underserved areas. We accepted the FCC’s CAF Phase II offer in 25 states, which provided $313 million in annual support through 2021, to make available 10 Mbps downstream/1 Mbps upstream broadband service to households across some of the 25 states where we operate.

The deployment deadline for CAF Phase II was December 31, 2021, and final review and audit of households is not complete. To the extent it is determined we did not enable the required number of households with 10 Mbps downstream/1 Mbps upstream broadband service or we were unable to satisfy other FCC CAF Phase II requirements, Frontier will be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual.

On January 30, 2020, the FCC adopted an order establishing RDOF, a competitive reverse auction to provide support to serve high cost areas. The FCC announced the results of its RDOF Phase I auction on December 7, 2020. Frontier was awarded approximately $371 million over ten years to build gigabit-capable broadband over a fiber-to-the-premises network to approximately 127,000 locations in eight states (California, Connecticut, Florida, Illinois, New York, Pennsylvania, Texas, and West Virginia). The FCC approved Frontier’s Long Form application in March 2022 and Frontier began receiving funding in the second quarter of 2022. Frontier will be required to complete the buildout to these locations by December 31, 2028, with interim target milestones over this period.

Critical Accounting Policies and Estimates

The preparation of our financial statements requires management to make estimates and assumptions. There are inherent uncertainties with respect to such estimates and assumptions; accordingly, it is possible that actual results could differ from those estimates and changes to estimates could occur in the near term. These critical accounting estimates have been reviewed with the Audit Committee of our Board of Directors.

There have been no material changes to our critical accounting policies and estimates from the information provided in Item 7. “Management Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Recent Accounting Pronouncements

See Note 2 of the Notes to Consolidated Financial Statements included in Part I of this report for additional information related to recent accounting literature.

Regulatory Developments

Connect America Fund (“CAF”)/ Rural Digital Opportunity Fund (“RDOF”): In 2015, Frontier accepted the FCC’s CAF Phase II offer in 29 states, which provided $332 million in annual support and in return the Company is committed to make broadband with at least 10 Mbps downstream/1 Mbps upstream speeds available to approximately 774,000 high-cost unserved or underserved locations within its footprint. This amount included approximately 41,000 locations and $19 million in annual support related to the four states of the Northwest Operations, which were disposed on May 1, 2020. The deployment deadline for the CAF phase II program was December 31, 2021 and funding ended on that date. Thereafter, the FCC has initiated a review of carriers’ CAF II program completion data, and if the FCC determines that the Company did not satisfy certain applicable CAF Phase II requirements, Frontier could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations.

On January 30, 2020, the FCC adopted an order establishing RDOF, a competitive reverse auction to provide support to serve high cost areas. The FCC announced the results of its RDOF Phase I auction on December 7, 2020. Frontier was awarded approximately $371 million over ten years to build gigabit-capable broadband over a fiber-to-the-premises network to approximately 127,000 locations in eight states (California, Connecticut, Florida,

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Illinois, New York, Pennsylvania, Texas, and West Virginia). The FCC approved Frontier’s Long Form application in March 2022 and Frontier began receiving funding in the second quarter of 2022. Frontier will be required to complete the buildout to these locations by December 31, 2028, with interim target milestones over this period.

As part of its RDOF order, the FCC indicated it would hold a follow-on auction for the unawarded funding following the Phase I auction. However, it remains uncertain whether any such follow-on auction will occur given the recent passage of significant federal funding for broadband infrastructure funding.

COVID-19 Initiatives: The Federal government has undertaken several measures to address the ongoing impacts of the COVID-19 pandemic and to facilitate enhanced access to high speed broadband, including through several new funding programs. As these large amounts of federal funding flow through the broadband ecosystem, we will evaluate and pursue funding opportunities that make sense for our business. Because of the severity, magnitude and duration of the COVID-19 pandemic and its economic consequences are uncertain and rapidly changing, the impact of the crisis and the governmental responses to the crisis on our business in 2022 and beyond remains uncertain and difficult to predict.

Current and Potential Internet Regulatory Obligations: On October 1, 2019, the D.C. Circuit Court largely upheld the FCC decision in its 2018 Restoring Internet Freedom Order to reclassify broadband as an “information service.” However, the Court invalidated the FCC’s preemption of a state’s ability to pass their own network neutrality rules and remanded back to the FCC other parts of the 2018 Order. California’s network neutrality provisions have gone into effect. It is unclear whether pending or future appeals will have any impact on the regulatory structure, and it is unclear what impact future federal and/or state legislative or regulatory actions will have on net neutrality issues.

Privacy: Privacy-related legislation has been considered in a number of states. Legislative and regulatory action could result in increased costs of compliance, claims against broadband Internet access service providers and others, and increased uncertainty in the value and availability of data. On June 28, 2018, the state of California enacted comprehensive privacy legislation that, effective as of January 1, 2020, gives California consumers the right to know what personal information is being collected about them, and whether and to whom it is sold or disclosed, and to access and request deletion of this information. Subject to certain exceptions, it also gives consumers the right to opt-out of the sale of personal information. The law applies the same rules to all companies that collect consumer information. On May 10, 2022, the state of Connecticut enacted privacy legislation that became effective on July 1, 2022. Frontier's privacy protections are consistent with this new legislation.

Video Programming: Federal, state, and local governments extensively regulate the video services industry. Our linear video services are subject to, among other things: subscriber privacy regulations; requirements that we carry a local broadcast station or obtain consent to carry a local or distant broadcast station; rules for franchise renewals and transfers; the manner in which program packages are marketed to subscribers; and program access requirements.

We provide video programming in some of our markets including California, Connecticut, Florida, Indiana, and Texas pursuant to franchises, permits and similar authorizations issued by state and local franchising authorities. Most franchises are subject to termination proceedings in the event of a material breach or expire in the ordinary course. In addition, most franchises require payment of a franchise fee as a requirement to the granting of authority.

Many franchises establish comprehensive facilities and service requirements, as well as specific customer service standards and monetary penalties for non-compliance. In many cases, franchises are terminable if the franchisee fails to comply with material provisions set forth in the franchise agreement governing system operations. We believe that we are in compliance and meeting all material standards and requirements. Franchises are generally granted for fixed terms and must be periodically renewed. Local franchising authorities may resist granting a renewal if either past performance or the prospective operating proposal is considered inadequate.

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Our agreement with Verizon for use of the FiOS brand and trademark in markets acquired from them expired on March 31, 2021 and was not renewed or extended. Frontier rebranded our related data and video services as Frontier FiberOptic Internet and Frontier TV, respectively.

Environmental Regulation: The local exchange carrier subsidiaries we operate are subject to federal, state, and local laws, and regulations governing the use, storage, disposal of, and exposure to hazardous materials, the release of pollutants into the environment and the remediation of contamination. As an owner and former owner of property, we are subject to environmental laws that could impose liability for the entire cost of cleanup at contaminated sites, including sites formerly owned by us, regardless of fault or the lawfulness of the activity that resulted in contamination. We believe that our operations are in substantial compliance with applicable environmental laws and regulations.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risk in the normal course of our business operations due to ongoing investing and funding activities, including those associated with our pension plan assets. Market risk refers to the potential change in fair value of a financial instrument as a result of fluctuations in interest rates and equity prices. We do not hold or issue derivative instruments, derivative commodity instruments or other financial instruments for trading purposes. As a result, we do not undertake any specific actions to cover our exposure to market risks, and we are not party to any market risk management agreements other than in the normal course of business. Our primary market risk exposures from interest rate risk and equity price risk are as follows:

Interest Rate Exposure

Our exposure to market risk for changes in interest rates relates primarily to the interest-bearing portion of our pension investment portfolio and the related actuarial liability for pension obligations, as well as our floating rate indebtedness. As of June 30, 2022, 84% of our total debt had fixed interest rates. We had no interest rate swap agreements in effect at June 30, 2022. We believe that our currently outstanding obligation exposure to interest rate changes is minimal.

Our objectives in managing our interest rate risk are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, only our $1.456 billion term loan facility has a floating interest rate at June 30, 2022. The annual impact of a 100 basis point change in LIBOR would result in approximately $15 million of additional interest expense, provided that the LIBOR rate exceeds the LIBOR floor. An adverse change in interest rates would increase the amount that we pay on our variable rate obligations and could result in fluctuations in the fair value of our fixed rate obligations. Interest income from cash invested in term deposits offsets the impact of higher interest expense from floating rate debt. Based upon our overall interest rate exposure, a near-term change in interest rates would not materially affect our consolidated financial position, results of operations or cash flows.

Our discount rate assumption for our pension benefit obligation is determined at least annually, or whenever required, with assistance from our actuaries based on the pattern of expected future benefit payments and the prevailing rates available on long-term, high quality corporate bonds with durations approximate to that of our benefit obligation. As of June 30, 2022, our discount rate utilized in calculating our benefit plan obligation continues to reflect the December 31, 2021 discount rate of 2.90%.

Our discount rate assumption for our OPEB obligation is determined in a similar manner to the pension plan. As of December 31, 2021, the discount rate was 3.00%. The discount rate was updated in connection with the remeasurements in February and May of 2022. As of June 30, 2022, our discount rate utilized for purposes of calculating our OPEB plan obligation reflects the May 31, 2022 discount rate of 4.50%.

At June 30, 2022, the fair value of our debt was estimated to be approximately $8.0 billion, based on quoted market prices, our overall weighted average borrowing rate was 6.163% and our overall weighted average maturity was

60

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

(Unaudited)

approximately seven years. Refer to Note 8 for discussion of the impact of the Chapter 11 Cases on our debt obligations.

Equity Price Exposure

Our exposure to market risks for changes in equity security prices as of June 30, 2022 is primarily limited to our pension plan assets. We have no other security investments of any significant amount.

The value of our pension plan assets decreased $545 million from $2,655 million at December 31, 2021 to $2,110 million at June 30, 2022. This decrease primarily resulted from changes in the market value of investments of $506 million including plan expenses, benefit payments to participants of $113 million, partially offset by contributions of $74 million. While there is a significant reduction in the assets of the pension plan, the related liability is also expected to decrease due to increases in the related discount rate.

While there is a significant reduction in the assets of the pension plan, discount rates have also risen by approximately 190 basis points to about 4.80%, as of June 30, 2022. If these discount rates remain in effect through the end of 2022 our projected benefit obligation would decrease by about $650 million. On the funding side, a sustained pension asset loss could result in a reduced funding percentage and an increased minimum contribution for the 2023 plan year.

Item 4. Controls and Procedures

(a)Evaluation of disclosure controls and procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon this evaluation, our principal executive officer and principal financial officer concluded, as of the end of the period covered by this report, March 31, 2022, that our disclosure controls and procedures were effective in recording, processing, summarizing and reporting on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b)Changes in internal control over financial reporting

There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) identified in an evaluation thereof that occurred during the first six months of 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

61

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

On April 30, 2018, an amended consolidated class action complaint was filed in the United States District Court for the District of Connecticut on behalf of certain purported stockholders against Frontier, certain of its current and former directors and officers and the underwriters of certain Frontier securities offerings and in connection with certain disclosures relating to the acquisition of properties in California, Texas and Florida from Verizon on April 1, 2016 (“CTF transaction”). The complaint was brought on behalf of all persons who (1) acquired Frontier common stock between February 6, 2015 and February 28, 2018, inclusive, and/or (2) acquired Frontier common stock or Mandatory Convertible Preferred Stock. On March 8, 2019, the District Court granted in its entirety Frontier’s motion to dismiss the complaint and on March 24, 2020, the court denied plaintiffs’ motion for leave to amend. Plaintiffs appealed and prior to oral argument, the parties reached an agreement in principle to resolve the matter. The settlement, which has preliminary court approval, will be covered by insurance and will have no material financial impact on the Company.

On May 19, 2021, the FTC, joined by the attorneys general of Arizona, Indiana, Michigan, North Carolina, and Wisconsin, and two California District Attorneys, filed a complaint against Frontier in the Federal District Court for the Central District of California alleging that Frontier violated federal and state laws by knowingly misrepresenting in its advertisements the Internet speeds it was capable of delivering to DSL customers. On October 4, 2021, the court granted in part and denied in part Frontier’s motion dismiss by dismissing the non-California state claims, but permitting the FTC’s and California’s claims to proceed in the litigation. Frontier expressly denies any wrongdoing but, in the interest of resolving the matter, entered into a settlement with the FTC and California, which required Frontier to make a financial payment of approximately $9 million in costs and civil penalties, along with certain modifications to its DSL advertising and other practices. An accrual was established as of March 31, 2022 for the financial impact of this settlement, which is not material to these financial statements. The settlement was approved by the court and the financial payment was made in the second quarter of 2022.

On July 27, 2022, the Connecticut Public Utility Regulatory Authority (“PURA”) issued a Notice of Violation and Assessment of Civil Penalty Order to Cease and Desist (“NOV”) related to the underground excavation and placement of fiber facilities by Frontier and its contractors in Connecticut. The NOV alleges that Frontier and its contractors failed to comply with certain state excavation regulations which created public safety and compliance issues. The NOV prescribes a $5 million fine, which the Company will challenge in a contested proceeding. The NOV also orders Frontier to discontinue certain underground fiber deployment work until the Company submits a compliance plan to ensure compliance with the applicable regulations. Frontier is complying with the NOV and will seek relief from the underground fiber deployment restrictions. On August 1, 2022, the PURA responded to a Frontier motion, clarifying the restrictions and allowing certain underground construction activity to continue. While the Company does not believe that this matter will have a material impact on its fiber build or financial position, results of operations or cash flows, a prolonged ban on underground installations in Connecticut could adversely impact the Company’s ability to meet its build targets in a timely manner.

In addition, we are party to various other legal proceedings (including individual, class and putative class actions as well as federal and state governmental investigations) arising in the normal course of our business covering a wide range of matters and types of claims including, but not limited to, general contracts, billing disputes, rights of access, taxes and surcharges, consumer protection, trademark, copyright and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. Such matters are subject to uncertainty and the outcome of individual matters is not predictable. However, we believe that the ultimate resolution of these matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our financial position, results of operations, or cash flows.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors described in Part 1, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

62

PART II. OTHER INFORMATION

There were no unregistered sales of equity securities during the quarter ended June 30, 2022.

‎

63

PART II. OTHER INFORMATION

Item 6. Exhibits

(a)	Exhibits:
	Exhibit Number	Description
	4.1	Indenture, dated as of May 12, 2022, by and among Frontier Communications Holdings, LLC, the guarantors party thereto, the collateral grantor party thereto. Wilmington Trust, National Association, as trustee, and JPMorgan Chase Bank, N.A., as collateral agent (filed as Exhibit 4.1 to Frontier’s Current Report on Form 8-K filed on May 16, 2022).
	4.2	Form of 8.750% First Lien Secured Notes due 2030 (included in Exhibit 4.1 to Frontier’s Current Report on Form 8-K filed on May 16, 2022).
	10.1	Amendment No. 2 to Amended and Restated Credit Agreement, dated as of May 12, 2022, by and among Frontier Communications Holdings, LLC, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, Goldman Sachs Bank USA, as revolver agent, and the lenders party thereto (filed as Exhibit 10.1 to Frontier’s Current Report on Form 8-K filed on May 12, 2022).
	31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
	31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
	32	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101	The following materials from Frontier’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income; (iii) the Consolidated Statements of Comprehensive Loss; (iv) the Consolidated Statements of Equity (Deficit); (v) the Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements.
	104	Cover Page from Frontier’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in iXBRL and contained in Exhibit 101.

‎

64

PART II. OTHER INFORMATION

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FRONTIER COMMUNICATIONS PARENT, INC.
	By: /s/ William McGloin
	William McGloin
	Chief Accounting Officer and Controller
	(Principal Accounting Officer)
Date: August 5, 2022

65

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Nick Jeffery, certify that:

    1.  I have reviewed this quarterly report on Form 10-Q of Frontier Communications Parent, Inc.;

    2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

    3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

    4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

         a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

         b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

         c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

         d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

    5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

         a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

         b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

1
Date:  August 5, 2022	/s/ Nick Jeffery
	Nick Jeffery
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Scott Beasley, certify that:

    1.  I have reviewed this quarterly report on Form 10-Q of Frontier Communications Parent, Inc.;

    2. Based on my knowledge, this report does not contain any untrue statementof a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements weremade, not misleading with respect to the period covered by this report;

    3. Based on my knowledge, the financial statements, and other financialinformation included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant asof, and for, the periods presented in this report;

    4. The registrant's other certifying officer and I are responsible forestablishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financialreporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:

         a) Designed such disclosure controls and procedures, or caused suchdisclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

         b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

         c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

         d)  Disclosed in this report any change in the registrant's internalcontrol over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

    5. The registrant's other certifying officer and I have disclosed, based onour most recent evaluation of internal control over financial reporting, to theregistrant's auditors and the audit committee of the registrant's board ofdirectors (or persons performing the equivalent functions):

         a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

         b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 5, 2022	/s/ Scott Beasley
	Scott Beasley
	Executive Vice President, Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Frontier Communications Parent, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we,  Nick Jeffery,  President and Chief Executive Officer and Scott Beasley,  Executive Vice President, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

    (1)  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

    (2)  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Nick Jeffery	/s/ Scott Beasley
Nick Jeffery	Scott Beasley
President and Chief Executive Officer	Executive Vice President,Chief Financial Officer
August 5, 2022	August 5, 2022

This certification is made solely for purpose of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Frontier Communications Parent, Inc. and will be retained by Frontier Communications Parent, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 01, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-11001
Entity Registrant Name	FRONTIER COMMUNICATIONS PARENT, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-2359749
Entity Address, Address Line One	401 Merritt 7
Entity Address, City or Town	Norwalk
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06851
City Area Code	203
Local Phone Number	614-5600
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FYBR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		244,985,000
Entity Central Index Key	0000020520

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 678	$ 2,127
Short-term investments	2,300
Accounts receivable, less allowances of $45 and $57, respectively	420	458
Prepaid expenses	79	73
Income taxes and other current assets	25	30
Total current assets	3,502	2,688
Property, plant and equipment, net	10,108	9,199
Other intangibles, net	4,067	4,227
Other assets	358	367
Total assets	18,035	16,481
Current liabilities:
Long-term debt due within one year	15	15
Accounts payable	818	535
Advanced billings	199	197
Accrued other taxes	174	183
Accrued interest	120	76
Pension and other postretirement benefits	46	46
Other current liabilities	407	399
Total current liabilities	1,779	1,451
Deferred income taxes	481	387
Pension and other postretirement benefits	1,427	1,672
Other liabilities	422	403
Long-term debt	9,130	7,968
Total liabilities	13,239	11,881
Equity:
Common stock, $0.01 par value (1,750,000 authorized shares, 244,969 and 244,416 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively)	2	2
Additional paid-in capital	4,152	4,124
Retained earnings	580	414
Accumulated other comprehensive income, net of tax	62	60
Total equity	4,796	4,600
Total liabilities and equity	$ 18,035	$ 16,481

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Consolidated Balance Sheets [Abstract]
Allowances for accounts receivable, current	$ 45	$ 57
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,750,000	1,750,000
Common stock, shares issued (in shares)	244,969	244,416
Common stock, shares outstanding (in shares)	244,969	244,416

XML

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Operating expenses:
Restructuring costs and other charges		$ 11
Successor [Member]
Revenue		1,061	$ 1,459		$ 2,906
Operating expenses:
Cost of service		396	546		1,099
Selling, general and administrative expenses		269	427		862
Depreciation and amortization		179	290		574
Restructuring costs and other charges		11	30		84
Total operating expenses		855	1,293		2,619
Operating income		206	166		287
Investment and other income (loss), net		(2)	122		199
Interest expense (See Note 8)		(62)	(118)		(221)
Income before income taxes		142	170		265
Income tax expense (benefit)		43	69		99
Net income		$ 99	$ 101		$ 166
Basic net earnings per share attributable to Frontier common shareholders		$ 0.41	$ 0.41		$ 0.68
Diluted net earnings per share attributable to Frontier common shareholders		$ 0.41	$ 0.41		$ 0.68
Total weighted average shares outstanding - basic		244,401	244,723		244,592
Total weighted average shares outstanding - diluted		244,401	244,723		244,831
Predecessor [Member]
Revenue	$ 555			$ 2,231
Operating expenses:
Cost of service	210			830
Selling, general and administrative expenses	129			537
Depreciation and amortization	119			506
Restructuring costs and other charges	5			7
Total operating expenses	463			1,880
Operating income	92			351
Investment and other income (loss), net	(1)			1
Reorganization items, net	4,196			4,171
Interest expense (See Note 8)	(29)			(118)
Income before income taxes	4,258			4,405
Income tax expense (benefit)	(223)			(136)
Net income	$ 4,481			$ 4,541
Basic net earnings per share attributable to Frontier common shareholders	$ 42.81			$ 43.42
Diluted net earnings per share attributable to Frontier common shareholders	$ 42.68			$ 43.28
Total weighted average shares outstanding - basic	104,662			104,584
Total weighted average shares outstanding - diluted	105,002			104,924

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Net Income		$ 99	$ 101		$ 166
Other comprehensive income, net of tax		41	4		2
Comprehensive income		$ 140	$ 105		$ 168
Predecessor [Member]
Net Income	$ 4,481			$ 4,541
Other comprehensive income, net of tax	348			359
Comprehensive income	$ 4,829			$ 4,900

XML

Consolidated Statements Of Equity (Deficit) - USD ($) shares in Thousands, $ in Millions	Successor [Member] Common Stock [Member]	Successor [Member] Additional Paid-In Capital [Member]	Successor [Member] Retained Earnings (Accumulated Deficit) [Member]	Successor [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Successor [Member]	Predecessor [Member] Common Stock [Member]	Predecessor [Member] Additional Paid-In Capital [Member]	Predecessor [Member] Retained Earnings (Accumulated Deficit) [Member]	Predecessor [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Predecessor [Member] Treasury Common Stock [Member]	Predecessor [Member]
Balance at beginning at Dec. 31, 2020						$ 27	$ 4,817	$ (8,975)	$ (755)	$ (14)	$ (4,900)
Balance (in shares) at Dec. 31, 2020						106,025				(1,232)
Stock plans										$ (1)	(1)
Stock plans (in shares)										(122)
Net Income								60			60
Other comprehensive income, net of tax									11		11
Balance at ending at Mar. 31, 2021						$ 27	4,817	(8,915)	(744)	$ (15)	(4,830)
Balance (in shares) at Mar. 31, 2021						106,025				(1,354)
Balance at beginning at Dec. 31, 2020						$ 27	4,817	(8,975)	(755)	$ (14)	(4,900)
Balance (in shares) at Dec. 31, 2020						106,025				(1,232)
Net Income											4,541
Other comprehensive income, net of tax									359		359
Balance at ending at Apr. 30, 2021	$ 2	$ 4,106			$ 4,108	$ 2	4,106				4,108
Balance (in shares) at Apr. 30, 2021	244,401					244,401
Balance at beginning at Mar. 31, 2021						$ 27	4,817	(8,915)	(744)	$ (15)	(4,830)
Balance (in shares) at Mar. 31, 2021						106,025				(1,354)
Stock plans							1				1
Net Income								4,481			4,481
Other comprehensive income, net of tax									348		348
Cancellation of Predecessor equity						$ (27)	(4,818)	$ 4,434	$ 396	$ 15
Cancellation of Predecessor equity (in shares)						(106,025)				1,354
Issuance of Successor common stock						$ 2	4,106				4,108
Issuance of Successor common stock (in shares)						244,401
Balance at ending at Apr. 30, 2021	$ 2	4,106			4,108	$ 2	$ 4,106				$ 4,108
Balance (in shares) at Apr. 30, 2021	244,401					244,401
Net Income			$ 99		99
Other comprehensive income, net of tax				$ 41	41
Balance at ending at Jun. 30, 2021	$ 2	4,106	99	41	4,248
Balance (in shares) at Jun. 30, 2021	244,401
Balance at beginning at Dec. 31, 2021	$ 2	4,124	414	60	4,600
Balance (in shares) at Dec. 31, 2021	244,416
Stock plans		15			15
Stock plans (in shares)	60
Net Income			65		65
Other comprehensive income, net of tax				(2)	(2)
Balance at ending at Mar. 31, 2022	$ 2	4,139	479	58	4,678
Balance (in shares) at Mar. 31, 2022	244,476
Balance at beginning at Dec. 31, 2021	$ 2	4,124	414	60	4,600
Balance (in shares) at Dec. 31, 2021	244,416
Net Income					166
Other comprehensive income, net of tax				2	2
Balance at ending at Jun. 30, 2022	$ 2	4,152	580	62	4,796
Balance (in shares) at Jun. 30, 2022	244,969
Balance at beginning at Mar. 31, 2022	$ 2	4,139	479	58	4,678
Balance (in shares) at Mar. 31, 2022	244,476
Stock plans		13			13
Stock plans (in shares)	493
Net Income			101		101
Other comprehensive income, net of tax				4	4
Balance at ending at Jun. 30, 2022	$ 2	$ 4,152	$ 580	$ 62	$ 4,796
Balance (in shares) at Jun. 30, 2022	244,969

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	2 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2021	Apr. 30, 2021	Jun. 30, 2022
Adjustments to reconcile net income to net cash provided from (used by) operating activities:
Bad debt expense			$ 14
Cash flows provided from (used by) investing activities:
Capital expenditures			(1,088)
Successor [Member]
Cash flows provided from (used by) operating activities:
Net Income	$ 99		166
Adjustments to reconcile net income to net cash provided from (used by) operating activities:
Depreciation and amortization	179		574
Stock-based compensation expense			35
Lease Impairment			44
Bad debt expense	6		14
Other adjustments	(5)		(13)
Deferred income taxes	37		93
Change in accounts receivable	6		24
Change in pension and other post retirement liabilities	12		(242)
Change in accounts payable and other liabilities	39		77
Change in prepaid expenses, income taxes, and other assets	7		(15)
Net cash provided from (used by) operating activities	380		757
Cash flows provided from (used by) investing activities:
Capital expenditures	(269)		(1,088)
Proceeds on sale of assets			1
Purchase of short-term investments			(2,600)
Sale of short-term investments			300
Other			2
Net cash used by investing activities	(269)		(3,385)
Cash flows provided from (used by) financing activities:
Long-term debt principal payments	(4)		(7)
Proceeds from long-term debt borrowings			1,200
Financing costs paid			(17)
Finance lease obligation payments	(4)		(10)
Taxes paid on behalf of employees for shares withheld			(7)
Other	1		(1)
Net cash provided from (used by) financing activities	(7)		1,158
Increase (decrease) in cash, cash equivalents, and restricted cash	104		(1,470)
Cash, cash equivalents, and restricted cash at January 1,	940		2,178
Cash, cash equivalents, and restricted cash at June 30,	1,044	$ 940	708
Cash paid during the period for:
Interest	84		198
Income tax payments, net	24		$ 9
Predecessor [Member]
Cash flows provided from (used by) operating activities:
Net Income		4,541
Adjustments to reconcile net income to net cash provided from (used by) operating activities:
Depreciation and amortization		506
Stock-based compensation expense		(1)
Non-cash reorganization items, net		(5,467)
Bad debt expense		14
Other adjustments		1
Deferred income taxes		(148)
Change in accounts receivable		36
Change in pension and other post retirement liabilities		(12)
Change in accounts payable and other liabilities		(156)
Change in prepaid expenses, income taxes, and other assets		46
Net cash provided from (used by) operating activities		(654)
Cash flows provided from (used by) investing activities:
Capital expenditures		(500)
Proceeds on sale of assets		9
Other		1
Net cash used by investing activities		(490)
Cash flows provided from (used by) financing activities:
Long-term debt principal payments		(1)
Proceeds from long-term debt borrowings		225
Financing costs paid		(4)
Finance lease obligation payments		(7)
Other		(16)
Net cash provided from (used by) financing activities		197
Increase (decrease) in cash, cash equivalents, and restricted cash		(947)
Cash, cash equivalents, and restricted cash at January 1,	$ 940	1,887
Cash, cash equivalents, and restricted cash at June 30,		940
Cash paid during the period for:
Interest		84
Income tax payments, net		9
Reorganization items, net		$ 1,397

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Summary Of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Summary Of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies: a) Basis of Presentation and Use of Estimates: Frontier Communications Parent, Inc. and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Our interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. All significant intercompany balances and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net income (loss), and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year. We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, business, and wholesale customers and is typically the incumbent voice services provider in its service areas. In 2021, we recategorized our previous operating expenses categories (“Network access expenses” and “Network related expense”) into one expense line: “Cost of service”. All historical periods presented have been updated to conform to the new categorization. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. For our interim financial statements as of and for the period ended June 30, 2022, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (“SEC”). The preparation of our interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the application of fresh start accounting, allowance for credit losses, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, and pension and other postretirement benefits, among others. Chapter 11 Bankruptcy Emergence As described in Note 3 Emergence from the Chapter 11 Cases, and Note 4 Fresh Start Accounting, to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2021, on April 30, 2021, (the “Effective Date”), the Company emerged from bankruptcy. Accordingly, the consolidated financial information has been prepared in conformity with Accounting Standards Codification Subtopic 852-10 (ASC 852), Reorganizations, for the Successor as a new entity with assets, liabilities, and a capital structure having carrying amounts not comparable with prior periods. ‎ Reorganization items incurred in the first four months of 2021 as a result of the Chapter 11 Cases included a gain on settlement of liabilities subject to compromise of $5,274 million, fresh start valuation adjustment charges of $1,038 million, debtor-in-possession financing costs of $15 million and $50 million in professional fees and other bankruptcy related costs presented separately in the accompanying consolidated statements of income. The Company incurred significant costs associated with the reorganization, primarily legal and professional fees. Subsequent to April 14, 2020 (the “Petition Date”), these costs were expensed as incurred and significantly affected our consolidated results of operations. From the Petition Date to the Effective date, these costs were included in “Reorganization items, net” on our consolidated statement of income. For the periods prior to the Petition date and following the Effective Date, these costs have been included in “Restructuring costs and other charges” on our consolidated statement of income. Refer to Note 9. Fresh Start Accounting Upon emergence from bankruptcy, we adopted fresh start accounting in accordance with Accounting Standards Codification (ASC) Topic 852 – Reorganizations (ASC 852) and became a new entity for financial reporting purposes. As a result, the consolidated financial statements after the Effective Date are not comparable with the consolidated financial statements on or before that date as indicated by the “black line” division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to the financial position and results of operations of Frontier Communications Corporation and its subsidiaries on or before the Effective Date (“Old Frontier”). b)Changes in Accounting Policies: The accounting policy differences between Predecessor and Successor include: Universal Service Fund and Other Surcharges - Frontier collects various taxes, Universal Service Fund (“USF”) surcharges (“primarily federal USF”), and certain other taxes, from its customers and subsequently remits them to governmental authorities. The Predecessor recorded USF and other taxes on a gross basis on the consolidated statement of income, included within “Revenue” and “Cost of service expense”. After emergence, the Successor records these USF and other taxes on a net basis. Provision for Bad Debt – The Predecessor reported the provision for bad debt as a reduction of revenue. After emergence, the Successor reports bad debt expense as an operating expense included in “Selling, general, and administrative expenses”. Contract Acquisition Costs - During the Predecessor period, certain commissions to obtain new customers were deferred and amortized over four years, which represented the estimated customer contract period. As a result of fresh start accounting, that assumption was reevaluated and the period of benefit for our retail customers was determined to be less than one year. As such, these costs are now expensed as incurred. Actuarial Losses on Defined Benefit Plans - Historically, actuarial gains (losses) were recognized as they occurred and included in “Accumulated other comprehensive income (loss)” and were subject to amortization over the estimated average remaining service period of participants. As part of fresh start accounting, Frontier has made an accounting policy election to recognize these gains and losses immediately in the period they occur as “Investment and other income (loss)” on the consolidated statement of income. Government Grants Revenue - Certain governmental grants that were historically presented on a net basis as part of capital expenditures, are now presented on a gross basis and included in ”Revenue” on the consolidated statement of income. Administrative Expenses – Historically, the Predecessor capitalized certain administrative expenses, that following emergence, are expensed during the period incurred and included in “Selling, general, and administrative expense” on the consolidated statement of income. c) Revenue Recognition: Revenue for data & Internet services, voice services, video services, and switched and non-switched access services is recognized as services are provided to customers. Services that are billed in advance include monthly recurring network access services (including data services), special access services, and monthly recurring voice, video, and related charges. Revenue is recognized by measuring progress toward the complete satisfaction of the Company’s performance obligations. The unearned portion of these fees is deferred as a component of “Advanced billings” on our consolidated balance sheet and recognized as revenue over the period that the services are provided. Services that are billed in arrears include non-recurring network access services (including data services), switched access services, and non-recurring voice and video services. The earned but unbilled portion of these fees is recognized as revenue in our consolidated statements of income and accrued in “Accounts receivable” on our consolidated balance sheet in the period that services are provided. Excise taxes are recognized as a liability when billed. Satisfaction of Performance Obligations Frontier satisfies its obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s satisfaction of the performance obligation may differ from the timing of the customer’s payment. Bundled Service and Allocation of Discounts When customers purchase more than one service, revenue for each is determined by allocating the total transaction price based upon the relative stand-alone selling price of each service. We frequently offer service discounts as an incentive to customers, which reduce the total transaction price. Any incentives which are considered cash equivalents (e.g. gift cards) that are granted will similarly result in a reduction of the total transaction price. Cash equivalent incentives are accounted for on a portfolio basis and are recognized in the month they are awarded to customers. Customer Incentives In the process of acquiring and/or retaining customers, we may issue a variety of incentives aside from service discounts or cash equivalent incentives. Those incentives that have stand-alone value (e.g., gift cards not considered cash equivalents or free goods/services) are considered separate performance obligations. While these incentives are free to the customer, a portion of the consideration received from the customer is ascribed to them based upon their relative stand-alone selling price. These types of incentives are accounted for on a portfolio basis with both revenue and expense recognized in the month they are awarded to the customer. The earned revenue associated with these incentives is reflected in “Other” revenue while the associated costs are reflected in “Cost of services”. Upfront Fees All non-refundable upfront fees assessed to our customers provide them with a material right to renew; therefore, they are deferred by creating a contract liability and amortized into “Data and Internet service” for fees charged to our wholesale customers and “Other revenue” for fees charged to all other customers, using a portfolio approach over the average customer life. Customer Acquisition Costs Sales commission expenses are recognized as incurred. According to ASC 606, incremental costs in obtaining a contract with a customer are deferred and recorded as a contract asset if the period of benefit is expected to be greater than one year. For our retail customers, this period of benefit has been determined to be less than one year. As such, the Company applies the practical expedient that allows such costs to be expensed as incurred. Taxes, Surcharges and Subsidies Frontier collects various taxes, Universal Service Fund (“USF”) surcharges (primarily federal USF), and certain other surcharges, from its customers and subsequently remits these taxes to governmental authorities. During the predecessor period, USF and other surcharges amounted to $83 million for the four months ended April 30, 2021. In June 2015, Frontier accepted the FCC offer of support to price cap carriers under the Connect America Fund (“CAF”) Phase II program, which was intended to provide long-term support for broadband build commitments in high cost unserved or underserved areas. We recognized FCC’s CAF Phase II subsidies into revenue on a straight-line basis over the seven-year funding term which ended on December 31, 2021. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual. In May 2022, Frontier accepted the FCC offer under the Rural Digital Opportunity Fund (“RDOF”) Phase I program, which provides funding over a ten-year period to support the construction of broadband networks in rural communities across the country. Frontier accepted $37 million in annual support through 2032 in return for the Company’s commitment to make broadband available to households within the RDOF eligible areas. We will recognize the FCC’s RDOF Phase I subsidies into revenue on a straight-line basis over the ten-year funding term which will end March 31, 2032. The Company is required to complete the RDOF deployment by December 31, 2028. Thereafter, the FCC will review carriers’ RDOF program completion data, and if the FCC determines that the Company did not satisfy applicable FCC RDOF requirements, Frontier could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We will accrue an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated. d)Cash Equivalents: We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $17 million is included in “Other current assets” as of December 31, 2021, and $30 million and $34 million are included in “Other assets” on our consolidated balance sheet as of June 30, 2022 and December 31, 2021, respectively. e) Short-Term Investments: Given the long-term nature of our fiber build, we have invested cash into short-term investments to improve interest income while preserving funding flexibility. We have classified these short-term deposits and other investments that have original maturities of greater than three months but less than one year as short-term investments. As of June 30, 2022, short-term investments of $2,300 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between July 15, 2022, and November 15, 2022, and placed with banks with A-1/P-1 or equivalent credit quality. These short-term investments are in scope of ASC 320, Investments - Debt Securities. The short-term investments’ original maturity is greater than 90 days but less than one year, and they are classified as held to maturity, recorded as current assets, and are accounted for at amortized cost. f)Definite and Indefinite Lived Intangible Assets: Intangible assets are initially recorded at estimated fair value. Old Frontier historically amortized its acquired customer lists and certain other finite-lived intangible assets over their estimated useful lives on an accelerated basis. Upon emergence from bankruptcy, customer relationship intangibles were established for business and wholesale customers. These intangibles are amortized on a straight-line basis over their assigned useful lives of between 11 and 16 years. Additionally, trademark and tradename assets established upon emergence are amortized on a straight-line basis over 5 years. We review such intangible assets annually, or more often if indicators of impairment arise, to determine whether there is evidence that indicates an impairment condition may exist that would necessitate a change in useful life and a different amortization period. g)Lease Accounting: We determine if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating and finance lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms used in accounting for leases may reflect options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. ROU assets for operating leases are recorded to “Other Assets”, and the related liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. Assets subject to finance leases are included in “Property, Plant & Equipment”, with corresponding liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. We assess potential impairments to our leases annually, or as indicators exist, if indicators of impairment arise to determine whether there is evidence that indicate an impairment condition may exist. We continue to review our real estate portfolio and, during the first quarter of 2022, determined to either terminate or market for sublease certain facilities leases, which triggered an impairment of $44 million for our finance and operating lease assets recorded as restructuring charges and other costs. See Note 9 for further details.

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Recent Accounting Literature

6 Months Ended

Jun. 30, 2022

Recent Accounting Literature [Abstract]

Recent Accounting Literature

(2) Recent Accounting Literature:

Recent Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard provides optional expedients, and allows for certain exceptions to existing GAAP, for contract modifications triggered by the expected market transition of certain benchmark interest rates to alternative reference rates. The standard applies to contracts and other arrangements that reference the London Interbank Offering Rate (LIBOR) or any other rates ending after December 31, 2022. Frontier is evaluating the impact of the adoption of this standard, including optional expedients, on our consolidated financial statements.

Government Assistance

In November 2021, the FASB issued ASU 2021-10, which requires business entities to disclose information about certain government assistance they receive. Such disclosure requirements include the nature of the transactions and the related accounting policy used, the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item and significant

terms and conditions of the transactions. ASU 2021-10 will be effective for annual periods beginning after December 15, 2021 (year ending December 31, 2022 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2021-10 will have on its disclosures.

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Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue Recognition

(3) Revenue Recognition:

We categorize our products, services and other revenues into the following categories:

Data and Internet services include broadband services for consumer and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (wireless backhaul);

Voice services include traditional local and long-distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our consumer and business customers. Voice services also include the long-distance voice origination and termination services that we provide to our business customers and other carriers;

Video services include revenues generated from services provided directly to consumer customers as linear terrestrial television services, through DISH® satellite TV service, and through partnerships with over-the-top (OTT) video providers. Video services also includes pay per view revenues, video on demand, equipment rentals, and video advertising. The Company has made the strategic decision to limit sales of new traditional TV services, focusing on our broadband products and OTT video options;

Other customer revenue includes switched access revenue, rents collected for colocation services, and revenue from other services and fees. Switched access revenue includes revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic. These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies; and

Subsidy and other regulatory revenue include revenues generated from cost subsidies from state and federal authorities, including CAF II and RDOF.

‎

The following tables provide a summary of revenues, by category:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Data and Internet services	$	847	$	556	$	283
Voice services		381		283		160
Video services		134		105		54
Other		80		62		30
Revenue from contracts with customers (1)		1,442		1,006		527
Subsidy and other revenue (2)		17		55		28
Total revenue	$	1,459	$	1,061	$	555
	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Consumer	$	791	$	543	$	283
Business and wholesale		651		463		244
Revenue from contracts with customers (1)		1,442		1,006		527
Subsidy and other revenue (2)		17		55		28
Total revenue	$	1,459	$	1,061	$	555

‎

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Data and Internet services	$	1,683	$	556	$	1,125
Voice services		767		283		647
Video services		271		105		223
Other		163		62		125
Revenue from contracts with customers (1)		2,884		1,006		2,120
Subsidy and other revenue (2)		22		55		111
Total revenue	$	2,906	$	1,061	$	2,231
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Consumer	$	1,567	$	543	$	1,133
Business and wholesale		1,317		463		987
Revenue from contracts with customers (1)		2,884		1,006		2,120
Subsidy and other revenue (2)		22		55		111
Total revenue	$	2,906	$	1,061	$	2,231

⁽¹⁾Lease revenue included in “Revenue from contracts with customers” was $16 million and $32 million for the three and six months ended June 30, 2022, respectively, $11 million for the two months ended June 30, 2021, and $5 million and $26 million for the one and four months ended April 30, 2021, respectively.

⁽²⁾Subsidy and other revenue for the three and six months ended June 30, 2022, does not include revenue from CAF II as the program ended in 2021. We began to receive funding for RDOF in the second quarter of 2022.

‎

The following is a summary of the changes in the contract assets and contract liabilities:

	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2021 (Successor)	$	-	$	-	$	27	$	11
Revenue recognized included
in opening contract balance		-		-		(20)		(5)
Credits granted, excluding amounts
recognized as revenue		-		-		18		11
Reclassified between current
and noncurrent		-		-		2		(2)
Balance at June 30, 2022 (Successor)	$	-	$	-	$	27	$	15
	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2020 (Predecessor)	$	6	$	9	$	58	$	20
Revenue recognized included
in opening contract balance		(4)		-		(23)		(3)
Cash received, excluding amounts
recognized as revenue		-		-		22		2
Balance at April 30, 2021 (Predecessor)	$	2	$	9	$	57	$	19
Fresh start accounting adjustments		(2)		(9)		(42)		(18)
Balance at April 30, 2021 (Predecessor)	$	-	$	-	$	15	$	1
Balance at April 30, 2021 (Successor)	$	-	$	-	$	15	$	1
Revenue recognized included
in opening contract balance		-		-		(4)		(1)
Cash received, excluding amounts
recognized as revenue		-		-		8		4
Reclassified between current
and noncurrent		-		-		(1)		1
Balance at June 30, 2021 (Successor)	$	-	$	-	$	18	$	5

The unsatisfied obligations for retail customers consist of amounts in advance billings, which are expected to be earned within the following monthly billing cycle. Unsatisfied obligations for wholesale customers are based on a point-in-time calculation and determined by the number of circuits provided and the contractual price. These wholesale customer obligations change from period to period based on new circuits added as well as circuits that are terminated.

‎

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period:

($ in millions)	Revenue from contracts with customers
2022 (remaining six months)	$	461
2023		407
2024		270
2025		135
2026		83
Thereafter		91
Total	$	1,447

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Accounts Receivable

6 Months Ended

Jun. 30, 2022

Accounts Receivable [Abstract]

Accounts Receivable

(4) Accounts Receivable:

The components of accounts receivable, net are as follows:

($ in millions)	June 30, 2022		December 31, 2021
Retail and wholesale	$	406	$	441
Other		59		74
Less: Allowance for doubtful accounts		(45)		(57)
Accounts receivable, net	$	420	$	458

We maintain an allowance for credit losses based on the estimated ability to collect accounts receivable. The allowance for credit losses is increased by recording an expense for the provision for bad debts for retail customers, and through decreases to revenue at the time of billing for wholesale customers. The allowance is decreased when customer accounts are written off, or when customers are given credits.

The provision for bad debts was $14 million for the six months ended June 30, 2022, $6 million for the two months ended June 30, 2021, and $4 million and $14 million for the one and four months ended April 30, 2021, respectively.

In accordance with ASC 326, Frontier performs its calculation to estimate expected credit losses, utilizing rates that are consistent with the Company’s write offs (net of recoveries) because such events affect the entity’s loss given default experience.

Activity in the allowance for credit losses for the six months ended June 30, 2022 was as follows:

($ in millions)
Balance at December 31, 2021	$	57
Provision for bad debt		14
Amounts charged to revenue		17
Write offs charged against the allowance		(43)
Balance at June 30, 2022	$	45

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Property, Plant And Equipment

6 Months Ended

Jun. 30, 2022

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

(5) Property, Plant and Equipment:

Property, plant and equipment, net is as follows:

($ in millions)	June 30, 2022		December 31, 2021
Property, plant and equipment	$	11,024	$	9,707
Less: Accumulated depreciation		(916)		(508)
Property, plant and equipment, net	$	10,108	$	9,199

Depreciation expense is principally based on the composite group method. Depreciation expense was as follows:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Depreciation expense	$	211	$	127	$	99
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Depreciation expense	$	414	$	127	$	407

As a result of applying fresh start accounting on the Effective Date, Frontier’s fixed assets were reduced from $13.0 billion to $8.5 billion. For the six months ended June 30, 2022, the decrease in depreciation expense was principally a result of the reduced asset base following this fresh start fair value adjustment. In July 2022, we sold a property that was subject to leaseback, generating approximately $70 million in proceeds.

During the six months ended June 30, 2022, our capital expenditures were $1,088 million. In addition, we had $250 million of capital expenditures that were received but not paid as of June 30, 2022.

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Other Intangibles

6 Months Ended

Jun. 30, 2022

Other Intangibles [Abstract]

Other Intangibles

(6) Other Intangibles:

The components of other intangibles as of June 30, 2022 and December 31, 2021 was follows:

	June 30, 2022						December 31, 2021
	Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
($ in millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Intangibles:
Customer Relationships - Business	$	800	$	(85)	$	715	$	800	$	(48)	$	752
Customer Relationships - Wholesale		3,491		(254)		3,237		3,491		(146)		3,345
Trademarks & Tradenames		150		(35)		115		150		(20)		130
Total other intangibles	$	4,441	$	(374)	$	4,067	$	4,441	$	(214)	$	4,227

Amortization expense was as follows:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Amortization expense	$	79	$	52	$	20
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Amortization expense	$	160	$	52	$	99

Following our emergence from bankruptcy, we amortize our intangible assets on a straight-line basis, over the assigned useful lives of 16 years for our wholesale customer relationships, 11 years for our business customer relationships, and 5 years for our trademarks and tradenames.

For the Predecessor, amortization expense was primarily for our customer base acquired as a result of our acquisitions in 2010, 2014, and 2016 with each based on a useful life of 8 to 12 years and amortized on an accelerated method. Our trade name was an indefinite-lived intangible asset that was not subject to amortization.

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Fair Value Of Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

(7) Fair Value of Financial Instruments:

The following table summarizes the carrying amounts and estimated fair values for total long-term debt at June 30, 2022 and December 31, 2021. For the other financial instruments including cash, short-term investments, accounts receivable, restricted cash, accounts payable and other current liabilities, the carrying amounts approximate fair value due to the relatively short maturities of those instruments.

The fair value of our total long-term debt is estimated based upon quoted market prices at the reporting date for those financial instruments.

	June 30, 2022				December 31, 2021
($ in millions)		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Total debt	$	8,970	$	7,995	$	7,777	$	7,996

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Long-Term Debt

6 Months Ended

Jun. 30, 2022

Long-Term Debt [Abstract]

Long-Term Debt

(8) Long-Term Debt:

Chapter 11 Restructuring

The filing of the Chapter 11 Cases constituted an event of default that accelerated substantially all then-outstanding obligations under Old Frontier’s debt agreements and notes as follows:

the amended and restated credit agreement, dated as of February 27, 2017 (as amended, the JPM Credit Agreement),

the 8.000% first lien secured notes due April 1, 2027 (the Original First Lien Notes),

the 8.500% second lien secured notes due April 1, 2026 (the Original Second Lien Notes),

the unsecured notes and debentures and the secured and unsecured debentures of the Company’s subsidiaries.

As of the Effective Date, amounts that were outstanding under the JPM Credit Agreement, the Original First Lien Notes, and the Original Second Lien Notes were repaid in full.

On the Effective Date, pursuant to the terms of the Plan, all of the obligations under Old Frontier’s unsecured senior note indentures were cancelled, and in connection with emergence, Frontier issued 244,401,000 shares of common stock that were transferred to holders of the allowed senior notes claims (as defined under the Plan).

Interest expense for the one and four months ended April 30, 2021 recorded on our Predecessor statements of income was lower than contractual interest of $112 million and $450 million, respectively, because we ceased accruing interest on the Petition Date in accordance with the terms of the Plan and ASC Topic 852.

‎

The activity in our long-term debt is summarized as follows:

			For the six months ended ‎June 30, 2022
			Principal
	January 1,		Payments		New		June 30,
($ in millions)	2022		and Retirements		Borrowings		2022
Secured debt issued by Frontier	$	6,927	$	(7)	$	1,200	$	8,120
Secured debt issued by subsidiaries		100		-		-		100
Unsecured debt issued by subsidiaries		750		-		-		750
Principal outstanding	$	7,777	$	(7)	$	1,200	$	8,970
Less: Debt Issuance Costs		(13)						(30)
Less: Current Portion		(15)						(15)
Plus: Unamortized fair value adjustments (1)		219						205
Total Long-term debt	$	7,968					$	9,130

⁽¹⁾ Upon emergence, we adjusted the carrying value of our debt to fair value. The adjustment consisted of the elimination of the existing unamortized debt issuance costs and unamortized discounts and recording a balance of $236 million as a fair value adjustment. The fair value accounting adjustment is being amortized into interest expense using the effective interest method.

‎

Additional information regarding our secured and unsecured total long-term debt as of June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022			December 31, 2021
	Principal		Interest	Principal		Interest
($ in millions)	Outstanding		Rate	Outstanding		Rate
Secured debt issued by Frontier
Term loan due 10/8/2027	$	1,457	4.813% (Variable)	$	1,464	4.500% (Variable)
First lien notes due 10/15/2027		1,150	5.875%		1,150	5.875%
First lien notes due 5/1/2028		1,550	5.000%		1,550	5.000%
First lien notes due 5/12/2030		1,200	8.750%		-	n/a
Second lien notes due 11/1/2029		750	5.875%		750	5.875%
Second lien notes due 5/1/2029		1,000	6.750%		1,000	6.750%
Second lien notes due 1/15/2030		1,000	6.000%		1,000	6.000%
IDRB due 5/1/2030		13	6.200%		13	6.200%
Secured debt issued by Frontier		8,120			6,927
Secured debt issued by subsidiaries
Debentures due 11/15/2031		100	8.500%		100	8.500%
Secured debt issued by subsidiaries		100			100
Unsecured debt issued by subsidiaries
Debentures due 5/15/2027		200	6.750%		200	6.750%
Debentures due 2/1/2028		300	6.860%		300	6.860%
Debentures due 2/15/2028		200	6.730%		200	6.730%
Debentures due 10/15/2029		50	8.400%		50	8.400%
Unsecured debt issued by subsidiaries		750			750
Principal outstanding	$	8,970	6.163% (1)	$	7,777	5.702% (1)

⁽¹⁾ Interest rate represents a weighted average of the stated interest rates of multiple issuances.

Credit Facilities and Term Loans

Summaries of our various credit and debt agreements, including our credit agreements and the indentures for our senior secured first lien notes and senior secured second lien notes, are contained in our Annual Report on Form 10-K. The summaries below and in our Form 10-K do not purport to be complete and are qualified in their entirety by reference to each agreement filed as an Exhibit to our Annual Report on Form 10-K.

Revolving Facility

On May 12, 2022, Frontier entered into an amendment (“Amendment No. 2”) to its Revolving Facility. The Amendment, among other things, increased the Revolving Facility by an additional $275 million, to a total of $900 million in aggregate principal amount of revolving credit commitments, and provided that the Revolving Facility be amended to reflect Secured Overnight Financing Rate “SOFR” based interest rates (including a customary spread adjustment).

The $900 million Revolving Facility will be available on a revolving basis until April 30, 2025.

At Frontier’s election, the determination of interest rates for the Revolving Facility is based on margins over the alternate base rate or over SOFR. The interest rate margin with respect to any SOFR loan under the Exit Revolving Facility is 3.50% or 2.50% with respect to any alternate base rate loans, with a 0% SOFR floor.

Subject to customary exceptions and thresholds, the security package under the Revolving Facility includes pledges of the equity interests in certain of our subsidiaries, which as of the issue date is limited to certain specified pledged entities and substantially all personal property of Frontier Video, which same assets also secure the First Lien Notes. The Revolving Facility is guaranteed by the same subsidiaries that guarantee the

First Lien Notes. After giving effect to $133 million of letters of credit outstanding as of June 30, 2022, the Borrower has $767 million of available borrowing capacity under the Revolving Facility.

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Restructuring Costs And Other Charges

6 Months Ended

Jun. 30, 2022

Restructuring Costs And Other Charges [Abstract]

Restructuring Costs And Other Charges

(9) Restructuring Costs and Other Charges:

Restructuring and other charges consists of severance and employee costs related to workforce reductions. It also includes professional fees related to our Chapter 11 Cases that were incurred after the emergence date as well as professional fees related to our restructuring and transformation that were incurred prior to the Petition Date.

During the six month period ended June 30, 2022, we incurred $84 million in restructuring charges and other costs consisting of $44 million of lease impairment costs from the strategic exit of certain facilities, $32 million of severance and employee costs resulting from workforce reductions, and $8 million of costs related to other restructuring activities. Of the $32 million in severance and employee costs, approximately $26 million related to the second quarter of 2022, as a result of larger workforce reductions.

As part of the Company's cost reduction strategy, certain real estate leases will not be retained, or will be marketed for sublease. The Company evaluated the related right-of-use assets and other lease related assets for impairment under ASC 360. In connection with this analysis, the Company reassessed its leased real estate asset groups and estimated the fair value of the office space to be subleased under current market conditions. Where the carrying values of individual asset groups exceeded their fair values, an impairment charge was recognized for the difference.

During the four months ended April 30, 2021, we incurred $7 million of severance and employee costs resulting from workforce reductions. During the two months ended June 30, 2021, we incurred $11 million in expenses consisting of $2 million of severance and employee costs resulting from workforce reductions and $9 million of professional fees related to our balance sheet restructuring.

The following is a summary of the changes in the liabilities established for restructuring and other related programs:

($ in millions)
Balance at January 1, 2022	$	7
Severance expense		32
Other costs		8
Cash payments during the period		(28)
Balance at June 30, 2022	$	19

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Investment And Other Income

6 Months Ended

Jun. 30, 2022

Investment And Other Income [Abstract]

Investment And Other Income

‎

(10) Investment and Other Income:

The following is a summary of the components of Investment and Other Income:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Interest and dividend income	$	6	$	-	$	-
Pension benefit		25		13		2
OPEB costs		(5)		(17)		(1)
OPEB remeasurement gain		96		-		-
All other, net		-		2		(2)
Total investment and other income (loss), net	$	122	$	(2)	$	(1)

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Interest and dividend income	$	8	$	-	$	-
Pension benefit		50		13		6
OPEB costs		(8)		(17)		(4)
OPEB remeasurement gain		150		-		-
All other, net		(1)		2		(1)
Total investment and other income (loss), net	$	199	$	(2)	$	1

In the first half of 2022, Frontier amended the medical coverage for certain postretirement benefit plans, primarily due to discount rate changes, which resulted in remeasurement gains of $150 million. Refer to Note 15 for further details.

Pension and OPEB benefit (costs) consist of interest income (loss), expected return on plan assets, amortization of prior service costs (credit) and recognition of actuarial gain (loss).

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Stock Plans

6 Months Ended

Jun. 30, 2022

Stock Plans [Abstract]

Stock Plans

‎

(11) Stock Plans:

Upon emergence, all outstanding stock-based compensation plans of Old Frontier were terminated and, in accordance with the Plan, the form of Frontier Communications Parent, Inc. 2021 Management Incentive Plan (the “2021 Incentive Plan”) was approved and adopted by the Board. The Incentive Plan permits stock-based awards to be made to employees, directors, or consultants of the Company or its affiliates, as determined by the Compensation and Human Capital Committee of the Board. Under the 2021 Incentive Plan, 15,600,000 shares of common stock have been reserved for issuance. As of June 30, 2022, unvested awards relating to approximately 2,327,000 shares were outstanding under the long-term equity award program or “Emergence LTI Program”.

Restricted Stock

The following summary presents information regarding unvested restricted stock under the 2021 Incentive Plan:

2021 Incentive Plan
		Weighted
		Average
	Number of	Grant Date		Aggregate
	Shares	Fair Value		Fair Value
	(in thousands)	(per share)		(in millions)
Balance at January 1, 2022	2,483	$	28.67	$	72
Restricted stock granted	941	$	25.87	$	25
Restricted stock vested	(817)	$	25.69	$	(22)
Restricted stock forfeited	(92)	$	25.91
Balance at June 30, 2022	2,515	$	25.84	$	67

For purposes of determining compensation expense, the fair value of each restricted stock grant is estimated based on the closing price of our common stock on the date of grant. The non-vested restricted stock units granted in 2021 generally vest, and are expensed, on a ratable basis over three years from the grant date of the award. Total remaining unrecognized compensation cost associated with unvested restricted stock awards that is deferred at June 30, 2022 was $62 million and the weighted average vesting period over which this cost is expected to be recognized is approximately 2 years.

None of the restricted stock awards may be sold, assigned, pledged, or otherwise transferred, voluntarily or involuntarily, by the employees until the restrictions lapse, subject to limited exceptions. The restrictions are time-based. Compensation expense, including compensation related to non-employee directors, recognized in “Selling, general and administrative expenses”, of $19 million for the six month-period ended June 30, 2022, has been recorded in connection with restricted stock.

Performance Stock Units

Under the 2021 Incentive Plan, a target number of performance units are awarded to each participant with respect to the three-year performance period (a “Measurement Period”). The performance metrics under the 2021 and 2022 PSU grants consist of targets for (1) Adjusted Fiber EBITDA, (2) Fiber Locations Constructed and (3) Expansion Fiber Penetration. In addition, there is an overall relative total shareholder return (“TSR”) modifier, which is based on Frontier’s total return to stockholders over the Measurement Period relative to the S&P 400 Mid Cap Index. Each performance metric is weighted 33.3%, and targets for each metric are set for each of the three years during the Measurement Period. Achievement of the metrics will be measured separately, and the number of awards earned will be determined based on actual performance relative to the targets of each performance metric, plus the effect of the TSR modifier. Achievement is measured on a cumulative basis for each performance metric individually at the end of the three-year Measurement Period. The payout of the 2021 PSUs can range from 0% to a maximum award payout of 300% of the target units. The payout of the 2022 PSUs

can range from 0% to a maximum award payout of 200% of the target units. PSUs awards, to the extent earned, will be paid out in the form of common stock shortly following the end of the Measurement Period.

The number of shares of common stock or units earned at the end of the Measurement Period may be more or less than the number of target performance shares or units granted as a result of performance. An executive must maintain a satisfactory performance rating during the Measurement Period and must be employed by Frontier upon determination in order for the award to vest. The Compensation and Human Capital Committee will determine the number of shares earned for the Measurement Period in the first quarter of the year following the end of the Measurement Period.

Under ASC 718, Stock Based Compensation Expense, we establish a grant date and determine the fair value once the targets are finalized. All targets for the 2021 awards have been set and the fair value of the grants will be amortized over the vesting period. For the 2022 PSU awards, the targets related to two of the three performance metrics have not been established. As a result, as of June 30, 2022, we have recognized associated expense with respect to 1/3 of the aggregate outstanding 2022 PSU awards.

The following summary presents information regarding performance shares as of June 30, 2022 and changes during the six months then ended with regard to performance shares awarded under the 2021 Incentive Plan:

2021 Incentive Plan
			Weighted
			Average
	Number of		Grant Date	Aggregate
	Shares		Fair Value	Fair Value
	(in thousands)		(per share)	(in millions)
Balance at January 1, 2022	3,144	$	25.62	$	92
Target performance shares awarded, net	257	$	25.85	$	7
Target performance shares earned	-	$	-	$	-
Target performance shares forfeited	(9)	$	25.61
Balance at June 30, 2022	3,392	$	25.64	$	90

For purposes of determining compensation expense, the fair value of each performance share grant is estimated based on the closing price of a share of our common stock on the date of the grant, adjusted to reflect the fair value of the relative TSR modifier. For the six months ended June 30, 2022, we recognized net compensation expense, reflected in “Selling, general and administrative expenses,” of $16 million related PSU awards.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Income Taxes

‎

(12) Income Taxes:

The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rate:

	Successor				Successor		Predecessor
	For the three months ended June 30,		For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
	2022		2022		2021		2021
Consolidated tax provision at federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income tax expense, net of federal
income tax benefit	15.0		12.0		3.7		0.5
Changes in certain deferred tax balances	1.7		1.1		-		-
Restructuring cost	-		-		-		0.3
Tax reserve adjustment	0.3		0.4		0.6		-
Fresh start and reorganization adjustments	-		-		-		(24.9)
Tax Credit	(0.6)		(0.8)		(1.3)		-
Sec.162(m) - nondeductible Executive Compensation	2.4		3.2		-		-
All other, net	0.8		0.5		6.1		-
Effective tax rate	40.6	%	37.4	%	30.1	%	(3.1)	%

Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the second quarter of 2022, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $41 million ($32 million net of federal benefit) was recorded as of June 30, 2022.

The effective rate for the three and six months ended June 30, 2022, increased as a result of increases to the state rate due to valuation allowances in certain states, arising from non-deductible interest expense primarily related to our $1.2 billion first lien note issuance.

The effective rate changes between the three and six months ended June 30, 2022, as compared to 2021 are primarily due to, as described more fully in Note 1, the Company emergence from bankruptcy on April 30, 2021, and consummation of a taxable disposition of substantially all of the assets and/or subsidiary stock of the Company and utilized substantially all of the Company’s Net Operating Losses (“NOLs”).

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Net Earnings Per Share

6 Months Ended

Jun. 30, 2022

Net Earnings Per Share [Abstract]

Net Earnings Per Share

‎

(13) Net Earnings Per Share:

The reconciliation of the net earnings per share calculation is as follows:

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2021
Net income used for basic and diluted earnings
per share:
Total basic net income
attributable to Frontier common shareholders	$	101	$	99	$	4,481
Effect of loss related to dilutive stock units		-		-		-
Total diluted net income
attributable to Frontier common shareholders	$	101	$	99	$	4,481
Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		244,723		244,401		104,816
Less: Weighted average unvested restricted stock awards		-		-		(154)
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Basic net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.81
Diluted earnings per share:
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Effect of dilutive stock units		-		-		340
Effect of dilutive restricted stock awards		-		-		-
Total weighted average shares outstanding - diluted		244,723		244,401		105,002
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.68

‎

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2021
Net income used for basic and diluted earnings
per share:
Total basic net income
attributable to Frontier common shareholders	$	166	$	99	$	4,541
Effect of loss related to dilutive stock units		-		-		-
Total diluted net income
attributable to Frontier common shareholders	$	166	$	99	$	4,541
Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		244,592		244,401		104,799
Less: Weighted average unvested restricted stock awards		-		-		(215)
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Basic net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.42
Diluted earnings per share:
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Effect of dilutive stock units		-		-		340
Effect of dilutive restricted stock awards		239		-		-
Total weighted average shares outstanding - diluted		244,831		244,401		104,924
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.28

In calculating diluted net income per common share for the six months ended June 30, 2022, the effect of all performance stock units is excluded from the computation as their respective performance metrics have not been satisfied as of June 30, 2022.

Stock Units

At June 30, 2021, the dilutive common stock equivalents consisted of stock units issued under the Non-Employee Directors’ Deferred Fee Equity Plan (Deferred Fee Plan), the Non-Employee Directors’ Equity Incentive Plan (Directors’ Equity Plan), the 2013 Equity Incentive Plan and the 2017 Equity Incentive Plan.

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Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss)

‎

(14) Comprehensive Income (Loss):

Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting equity (deficit) and pension/postretirement benefit (OPEB) liabilities that, under GAAP, are excluded from net loss.

The components of accumulated other comprehensive income (loss), net of tax, and changes are as follows:

	Pension		OPEB
($ in millions)	Costs		Costs		Total
Balance at January 1, 2022 (Successor) (1)	$	-	$	60	$	60
Other comprehensive income
before reclassifications		-		6		6
Amounts reclassified from accumulated other
comprehensive income to net income		-		(4)		(4)
Net current-period other comprehensive
income		-		2		2
Balance at June 30, 2022 (Successor) (1)	$	-	$	62	$	62
	Pension		OPEB
($ in millions)	Costs		Costs		Total
Balance at January 1, 2021 (Predecessor) (1)	$	(699)	$	(56)	$	(755)
Other comprehensive income
before reclassifications		270		74		344
Amounts reclassified from accumulated other
comprehensive loss to net income		19		(4)		15
Net current-period other comprehensive
income		289		70		359
Cancellation of Predecessor equity		410		(14)		396
Balance at April 30, 2021 (Predecessor) (1)	$	-	$	-	$	-
Balance at April 30, 2021 (Successor) (1)	$	-	$	-	$	-
Other comprehensive income
before reclassifications		-		42		42
Amounts reclassified from accumulated other
comprehensive income to net income		-		(1)		(1)
Net current-period other comprehensive
income		-		41		41
Balance at June 30, 2021 (Successor) (1)	$	-	$	41	$	41

⁽¹⁾ Pension and OPEB amounts are net of tax of $15 million and $234 million as of January 1, 2022 and 2021, respectively and $17 million and $14 million as of June 30, 2022 and 2021, respectively.

‎

The significant items reclassified from components of accumulated other comprehensive loss are as follows:

	Successor		Successor		Predecessor
	Amount Reclassified from
	Accumulated Other
	Comprehensive Loss (1)
($ in millions)							Affected Line Item in
	For the three months		For the two months		For the one month		the Statement Where
Details about Accumulated Other	ended June 30,		ended June 30,		ended April 30,		Net Income (Loss)
Comprehensive Loss Components	2022		2021		2021		is Presented
Amortization of Pension Cost Items
Actuarial losses	$	-	$	-	$	(6)
One-time loss on disposal		-		-		-
		-		-		(6)	Income (Loss) before income taxes
Tax impact		-		-		1	Income tax benefit
	$	-	$	-	$	(5)	Net income (loss)
Amortization of OPEB Cost Items
Prior-service costs	$	3	$	1	$	3
Actuarial losses		-		-		(2)
		3		1		1	Income (Loss) before income taxes
Tax impact		(1)		-		-	Income tax benefit
	$	2	$	1	$	1	Net income (loss)

	Successor		Successor		Predecessor
	Amount Reclassified from
	Accumulated Other
	Comprehensive Loss (1)
($ in millions)							Affected Line Item in
	For the six months		For the two months		For the four months		the Statement Where
Details about Accumulated Other	ended June 30,		ended June 30,		ended April 30,		Net Income (Loss)
Comprehensive Loss Components	2022		2021		2021		is Presented
Amortization of Pension Cost Items
Actuarial losses	$	-	$	-	$	(24)
One-time loss on disposal		-		-		-
		-		-		(24)	Income (Loss) before income taxes
Tax impact		-		-		5	Income tax benefit
	$	-	$	-	$	(19)	Net income (loss)
Amortization of OPEB Cost Items
Prior-service costs	$	6	$	1	$	10
Actuarial losses		-		-		(5)
		6		1		5	Income (Loss) before income taxes
Tax impact		(2)		-		(1)	Income tax benefit
	$	4	$	1	$	4	Net income (loss)

⁽¹⁾ These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (See Note 15 - Retirement Plans for additional details).

   

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Retirement Plans

6 Months Ended

Jun. 30, 2022

Retirement Plans [Abstract]

Retirement Plans

(15) Retirement Plans:

Frontier recognizes actuarial gains (losses) for our pension and postretirement plans in the period they occur. The components of net periodic benefit cost other than the service cost component for our plans as well as any actuarial gains or losses are included in “Investment and other income (loss)” on the consolidated statement of income.

The following tables provide the components of total pension benefit cost:

	Successor		Successor		Predecessor
	Pension Benefits
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Components of total pension benefit cost
Service cost	$	20	$	13	$	8
Interest cost on projected benefit obligation		25		18		8
Expected return on plan assets		(50)		(31)		(16)
Amortization of unrecognized loss		-		-		6
Total pension (benefit) cost	$	(5)	$	-	$	6
	Successor		Successor		Predecessor
	Pension Benefits
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Components of total pension benefit cost
Service cost	$	41	$	13	$	32
Interest cost on projected benefit obligation		49		18		31
Expected return on plan assets		(99)		(31)		(61)
Amortization of unrecognized loss		-		-		24
Total pension (benefit) cost	$	(9)	$	-	$	26

The components of net periodic benefit cost other than the service cost component are included in “Investment and other income” on the consolidated statement of income.

The value of our pension plan assets decreased $545 million from $2,655 million at December 31, 2021 to $2,110 million at June 30, 2022. This decrease primarily resulted from changes in the market value of investments of $506 million including plan expenses, and benefit payments to participants of $113 million, partially offset by contributions of $74 million.

‎

The following tables provide the components of total postretirement benefit cost:

	Successor		Successor		Predecessor
	Postretirement
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Components of net periodic postretirement benefit cost
Service cost	$	3	$	3	$	2
Interest cost on projected benefit obligation		8		5		2
Amortization of prior service (benefit)		(3)		(1)		(3)
Remeasurement (gain) loss		(96)		13		-
Amortization of unrecognized loss		-		-		2
Net periodic postretirement (benefit) cost	$	(88)	$	20	$	3
	Successor		Successor		Predecessor
	Postretirement
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Components of net periodic postretirement benefit cost
Service cost	$	7	$	3	$	7
Interest cost on projected benefit obligation		14		5		9
Amortization of prior service (benefit)		(6)		(1)		(10)
Remeasurement (gain) loss		(150)		13		-
Amortization of unrecognized loss		-		-		5
Net periodic postretirement (benefit) cost	$	(135)	$	20	$	11

In the first half of 2022, Frontier amended the medical coverage for certain postretirement benefit plans, which necessitated a remeasurement of its other postretirement benefit (OPEB) obligations. This remeasurement resulted in the recognition of a net actuarial gain of $150 million, which was driven primarily from a higher assumed discount rate relative to December 31, 2021. Upon emergence from bankruptcy, Frontier revised its accounting policy to recognize actuarial gains and losses in the period in which they occur. As such, this gain was recorded in “Investment and other income, net” on our consolidated statements of income.

During the six months ended June 30, 2022, we capitalized $11 million of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. During the one month and four months of April 30, 2021, we capitalized $1 million and $7 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. During the two months ended June 30, 2021, we capitalized $4 million of pension and OPEB expense.

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Commitments And Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments And Contingencies [Abstract]
Commitments And Contingencies	(16) Commitments and Contingencies: Although from time to time we make short-term purchasing commitments to vendors with respect to capital expenditures, we generally do not enter into firm, written contracts for such activities. In connection with the accelerated fiber build, we have prioritized diversifying our vendor base and finalizing agreements with vendors for relevant labor and materials. Some of these agreements will have initial two-year terms with an option to extend for two years through 2025. Frontier accepted the FCC’s CAF Phase II offer in 25 states, which provided $313 million in annual support through 2021, to make available 10 Mbps downstream/1 Mbps upstream broadband service to households across some of the 25 states where we operate. The deployment deadline was December 31, 2021, and final review and audit of households is not complete. To the extent it is determined we did not enable the required number of households with 10 Mbps downstream/1 Mbps upstream broadband service or we were unable to satisfy other FCC CAF Phase II requirements, Frontier will be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual.  On January 30, 2020, the FCC adopted an order establishing RDOF, a competitive reverse auction to provide support to serve high cost areas. The FCC announced the results of its RDOF Phase I auction on December 7, 2020. Frontier was awarded approximately $371 million over ten years to build gigabit-capable broadband over a fiber-to-the-premises network to approximately 127,000 locations in eight states (California, Connecticut, Florida, Illinois, New York, Pennsylvania, Texas, and West Virginia). The FCC approved Frontier’s Long Form application in March 2022 and Frontier began receiving funding in the second quarter of 2022. Frontier will be required to complete the buildout to these locations by December 31, 2028, with interim target milestones over this period. On April 30, 2018, an amended consolidated class action complaint was filed in the United States District Court for the District of Connecticut on behalf of certain purported stockholders against Frontier, certain of its current and former directors and officers and the underwriters of certain Frontier securities offerings and in connection with certain disclosures relating to the CTF transaction. The complaint was brought on behalf of all persons who (1) acquired Frontier common stock between February 6, 2015 and February 28, 2018, inclusive, and/or (2) acquired Frontier common stock or Mandatory Convertible Preferred Stock. On March 8, 2019, the District Court granted in its entirety Frontier’s motion to dismiss the complaint and on March 24, 2020, the court denied plaintiffs’ motion for leave to amend. Plaintiffs appealed and prior to oral argument, the parties reached an agreement in principle to resolve the matter. The settlement, which has obtained final court approval, will be covered by insurance and will have no material financial impact on the Company. On May 19, 2021, the FTC, joined by the attorneys general of Arizona, Indiana, Michigan, North Carolina, and Wisconsin, and two California District Attorneys, filed a complaint against Frontier in the Federal District Court for the Central District of California alleging that Frontier violated federal and state laws by knowingly misrepresenting in its advertisements the Internet speeds it was capable of delivering to DSL customers. On October 4, 2021, the court granted in part and denied in part Frontier’s motion dismiss by dismissing the non-California state claims, but permitting the FTC’s and California’s claims to proceed in the litigation. Frontier expressly denies any wrongdoing but, in the interest of resolving the matter, entered into a settlement with the FTC and California, which required Frontier to make a financial payment of approximately $9 million in costs and civil penalties, along with certain modifications to its DSL advertising and other practices. An accrual was established as of March 31, 2022 for the financial impact of this settlement, which is not material to these financial statements. The settlement was approved by the court and the financial payment was made in the second quarter of 2022. On July 27, 2022, the Connecticut Public Utility Regulatory Authority (“PURA”) issued a Notice of Violation and Assessment of Civil Penalty Order to Cease and Desist (“NOV”) related to the underground excavation and placement of fiber facilities by Frontier and its contractors in Connecticut. The NOV alleges that Frontier and its contractors failed to comply with certain state excavation regulations which created public safety and compliance issues. The NOV prescribes a $5 million fine, which the Company will challenge in a contested proceeding. The NOV also orders Frontier to discontinue certain underground fiber deployment work until the Company submits a compliance plan to ensure compliance with the applicable regulations. Frontier is complying with the NOV and will seek relief from the underground fiber deployment restrictions. On August 1, 2022, the PURA responded to a Frontier motion, clarifying the restrictions and allowing certain underground construction activity to continue. While the Company does not believe that this matter will have a material impact on its fiber build or financial position, results of operations or cash flows, a prolonged ban on underground installations in Connecticut could adversely impact the Company’s ability to meet its build targets in a timely manner. In addition, we are party to various legal proceedings (including individual actions, class and putative class actions, and governmental investigations) arising in the normal course of our business covering a wide range of matters and types of claims including, but not limited to, general contract disputes, billing disputes, rights of access, taxes and surcharges, consumer protection, advertising, sales and the provision of services, intellectual property, including, trademark, copyright, and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. Litigation is subject to uncertainty and the outcome of individual matters is not predictable. However, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our financial position, results of operations, or cash flows. In October 2013, the California Attorney General’s Office notified certain Verizon companies, including one of the subsidiaries that we acquired in the CTF Acquisition, of potential violations of California state hazardous waste statutes primarily arising from the disposal of electronic components, batteries and aerosol cans at certain California facilities. We are cooperating with this investigation. We have accrued an amount for potential penalties that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual. We accrue an expense for pending litigation when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of our existing accruals for pending matters, after considering insurance coverage, is material. We monitor our pending litigation for the purpose of adjusting our accruals and revising our disclosures accordingly, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. We will vigorously defend our interests in pending litigation, and as of this date, we believe that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which we are entitled, will not have a material adverse effect on our consolidated financial position, results of operations, or our cash flows. We conduct certain of our operations in leased premises and also lease certain equipment and other assets pursuant to operating leases. The lease arrangements have terms ranging from 1 to 99 years and several contain rent escalation clauses providing for increases in monthly rent at specific intervals. When rent escalation clauses exist, we record annual rental expense based on the total expected rent payments on a straight-line basis over the lease term. Certain leases also have renewal options. Renewal options that are reasonably assured are included in determining the lease term. We are party to contracts with several unrelated long-distance carriers. The contracts provide fees based on traffic they carry for us subject to minimum monthly fees. ‎

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Summary Of Significant Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2022

Summary Of Significant Accounting Policies [Abstract]

Basis Of Presentation And Use Of Estimates

Basis of Presentation and Use of Estimates:

Frontier Communications Parent, Inc. and its subsidiaries are referred to as “we,” “us,” “our,” “Frontier,” or the “Company” in this report. Our interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021. All significant intercompany balances and transactions have been eliminated in consolidation. These interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary, in the opinion of Frontier’s management, to present fairly the results for the interim periods shown. Revenues, net income (loss), and cash flows for any interim periods are not necessarily indicative of results that may be expected for the full year.

We operate in one reportable segment. Frontier provides both regulated and unregulated voice, data and video services to consumer, business, and wholesale customers and is typically the incumbent voice services provider in its service areas.

In 2021, we recategorized our previous operating expenses categories (“Network access expenses” and “Network related expense”) into one expense line: “Cost of service”. All historical periods presented have been updated to conform to the new categorization. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation. For our interim financial statements as of and for the period ended June 30, 2022, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-Q with the Securities and Exchange Commission (“SEC”).

The preparation of our interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are used when accounting for the application of fresh start accounting, allowance for credit losses, asset impairments, indefinite-lived intangibles, depreciation and amortization, income taxes, and pension and other postretirement benefits, among others.

Chapter 11 Bankruptcy Emergence

As described in Note 3 Emergence from the Chapter 11 Cases, and Note 4 Fresh Start Accounting, to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2021, on April 30, 2021, (the “Effective Date”), the Company emerged from bankruptcy. Accordingly, the consolidated financial information has been prepared in conformity with Accounting Standards Codification Subtopic 852-10 (ASC 852), Reorganizations, for the Successor as a new entity with assets, liabilities, and a capital structure having carrying amounts not comparable with prior periods.

‎

Reorganization items incurred in the first four months of 2021 as a result of the Chapter 11 Cases included a gain on settlement of liabilities subject to compromise of $5,274 million, fresh start valuation adjustment charges of $1,038 million, debtor-in-possession financing costs of $15 million and $50 million in professional fees and other bankruptcy related costs presented separately in the accompanying consolidated statements of income.

The Company incurred significant costs associated with the reorganization, primarily legal and professional fees. Subsequent to April 14, 2020 (the “Petition Date”), these costs were expensed as incurred and significantly affected our consolidated results of operations. From the Petition Date to the Effective date, these costs were included in “Reorganization items, net” on our consolidated statement of income. For the periods prior to the Petition date and following the Effective Date, these costs have been included in “Restructuring costs and other charges” on our consolidated statement of income. Refer to Note 9.

Fresh Start Accounting

Upon emergence from bankruptcy, we adopted fresh start accounting in accordance with Accounting Standards Codification (ASC) Topic 852 – Reorganizations (ASC 852) and became a new entity for financial reporting purposes. As a result, the consolidated financial statements after the Effective Date are not comparable with the consolidated financial statements on or before that date as indicated by the “black line” division in the financial statements and footnote tables, which emphasizes the lack of comparability between amounts presented. References to “Successor” relate to our financial position and results of operations after the Effective Date. References to “Predecessor” refer to the financial position and results of operations of Frontier Communications Corporation and its subsidiaries on or before the Effective Date (“Old Frontier”).

Changes In Accounting Policies

Changes in Accounting Policies:

The accounting policy differences between Predecessor and Successor include:

Universal Service Fund and Other Surcharges - Frontier collects various taxes, Universal Service Fund (“USF”) surcharges (“primarily federal USF”), and certain other taxes, from its customers and subsequently remits them to governmental authorities. The Predecessor recorded USF and other taxes on a gross basis on the consolidated statement of income, included within “Revenue” and “Cost of service expense”. After emergence, the Successor records these USF and other taxes on a net basis.

Provision for Bad Debt – The Predecessor reported the provision for bad debt as a reduction of revenue. After emergence, the Successor reports bad debt expense as an operating expense included in “Selling, general, and administrative expenses”.

Contract Acquisition Costs - During the Predecessor period, certain commissions to obtain new customers were deferred and amortized over four years, which represented the estimated customer contract period. As a result of fresh start accounting, that assumption was reevaluated and the period of benefit for our retail customers was determined to be less than one year. As such, these costs are now expensed as incurred.

Actuarial Losses on Defined Benefit Plans - Historically, actuarial gains (losses) were recognized as they occurred and included in “Accumulated other comprehensive income (loss)” and were subject to amortization over the estimated average remaining service period of participants. As part of fresh start accounting, Frontier has made an accounting policy election to recognize these gains and losses immediately in the period they occur as “Investment and other income (loss)” on the consolidated statement of income.

Government Grants Revenue - Certain governmental grants that were historically presented on a net basis as part of capital expenditures, are now presented on a gross basis and included in ”Revenue” on the consolidated statement of income.

Administrative Expenses – Historically, the Predecessor capitalized certain administrative expenses, that following emergence, are expensed during the period incurred and included in “Selling, general, and administrative expense” on the consolidated statement of income.

Revenue Recognition

Revenue Recognition:

Revenue for data & Internet services, voice services, video services, and switched and non-switched access services is recognized as services are provided to customers. Services that are billed in advance include monthly recurring network access services (including data services), special access services, and monthly recurring voice, video, and related charges. Revenue is recognized by measuring progress toward the complete satisfaction of the Company’s performance obligations. The unearned portion of these fees is deferred as a component of “Advanced billings” on our consolidated balance sheet and recognized as revenue over the period that the services are provided. Services that are billed in arrears include non-recurring network access services (including data services), switched access services, and non-recurring voice and video services. The earned but unbilled portion of these fees is recognized as revenue in our consolidated statements of income and accrued in “Accounts receivable” on our consolidated balance sheet in the period that services are provided. Excise taxes are recognized as a liability when billed.

Satisfaction of Performance Obligations

Frontier satisfies its obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s satisfaction of the performance obligation may differ from the timing of the customer’s payment.

Bundled Service and Allocation of Discounts

When customers purchase more than one service, revenue for each is determined by allocating the total transaction price based upon the relative stand-alone selling price of each service. We frequently offer service discounts as an incentive to customers, which reduce the total transaction price. Any incentives which are considered cash equivalents (e.g. gift cards) that are granted will similarly result in a reduction of the total transaction price. Cash equivalent incentives are accounted for on a portfolio basis and are recognized in the month they are awarded to customers.

Customer Incentives

In the process of acquiring and/or retaining customers, we may issue a variety of incentives aside from service discounts or cash equivalent incentives. Those incentives that have stand-alone value (e.g., gift cards not considered cash equivalents or free goods/services) are considered separate performance obligations. While these incentives are free to the customer, a portion of the consideration received from the customer is ascribed to them based upon their relative stand-alone selling price. These types of incentives are accounted for on a portfolio basis with both revenue and expense recognized in the month they are awarded to the customer. The earned revenue associated with these incentives is reflected in “Other” revenue while the associated costs are reflected in “Cost of services”.

Upfront Fees

All non-refundable upfront fees assessed to our customers provide them with a material right to renew; therefore, they are deferred by creating a contract liability and amortized into “Data and Internet service” for fees charged to our wholesale customers and “Other revenue” for fees charged to all other customers, using a portfolio approach over the average customer life.

Customer Acquisition Costs

Sales commission expenses are recognized as incurred. According to ASC 606, incremental costs in obtaining a contract with a customer are deferred and recorded as a contract asset if the period of benefit is expected to be greater than one year. For our retail customers, this period of benefit has been determined to be less than one year. As such, the Company applies the practical expedient that allows such costs to be expensed as incurred.

Taxes, Surcharges and Subsidies

Frontier collects various taxes, Universal Service Fund (“USF”) surcharges (primarily federal USF), and certain other surcharges, from its customers and subsequently remits these taxes to governmental authorities. During the predecessor period, USF and other surcharges amounted to $83 million for the four months ended April 30, 2021.

In June 2015, Frontier accepted the FCC offer of support to price cap carriers under the Connect America Fund (“CAF”) Phase II program, which was intended to provide long-term support for broadband build commitments in high cost unserved or underserved areas. We recognized FCC’s CAF Phase II subsidies into revenue on a straight-line basis over the seven-year funding term which ended on December 31, 2021. We have accrued an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated, and we do not expect that any potential penalties, if ultimately incurred, will be material in comparison to the established accrual.

In May 2022, Frontier accepted the FCC offer under the Rural Digital Opportunity Fund (“RDOF”) Phase I program, which provides funding over a ten-year period to support the construction of broadband networks in rural communities across the country. Frontier accepted $37 million in annual support through 2032 in return for the Company’s commitment to make broadband available to households within the RDOF eligible areas. We will recognize the FCC’s RDOF Phase I subsidies into revenue on a straight-line basis over the ten-year funding term which will end March 31, 2032. The Company is required to complete the RDOF deployment by December 31, 2028. Thereafter, the FCC will review carriers’ RDOF program completion data, and if the FCC determines that the Company did not satisfy applicable FCC RDOF requirements, Frontier could be required to return a portion of the funds previously received and may be subject to certain other requirements and obligations. We will accrue an amount for any potential shortfall in the household build commitment that we deem to be probable and reasonably estimated.

Cash Equivalents

Cash Equivalents:

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash of $17 million is included in “Other current assets” as of December 31, 2021, and $30 million and $34 million are included in “Other assets” on our consolidated balance sheet as of June 30, 2022 and December 31, 2021, respectively.

Short-Term Investments

Short-Term Investments:

Given the long-term nature of our fiber build, we have invested cash into short-term investments to improve interest income while preserving funding flexibility. We have classified these short-term deposits and other investments that have original maturities of greater than three months but less than one year as short-term investments.

As of June 30, 2022, short-term investments of $2,300 million are comprised of term deposits earning interest in excess of traditional bank deposit rates, maturing between July 15, 2022, and November 15, 2022, and placed with banks with A-1/P-1 or equivalent credit quality. These short-term investments are in scope of ASC 320, Investments - Debt Securities. The short-term investments’ original maturity is greater than 90 days but less than one year, and they are classified as held to maturity, recorded as current assets, and are accounted for at amortized cost.

Definite And Indefinite Lived Intangible Assets

Definite and Indefinite Lived Intangible Assets:

Intangible assets are initially recorded at estimated fair value. Old Frontier historically amortized its acquired customer lists and certain other finite-lived intangible assets over their estimated useful lives on an accelerated basis. Upon emergence from bankruptcy, customer relationship intangibles were established for business and wholesale customers. These intangibles are amortized on a straight-line basis over their assigned useful lives of between 11 and 16 years. Additionally, trademark and tradename assets established upon emergence are amortized on a straight-line basis over 5 years. We review such intangible assets annually, or more often if indicators of impairment arise, to determine whether there is evidence that indicates an impairment condition may exist that would necessitate a change in useful life and a different amortization period.

Lease Accounting

Lease Accounting:

We determine if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and Finance lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating and finance lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms used in accounting for leases may reflect options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. ROU assets for operating leases are recorded to “Other Assets”, and the related liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets. Assets subject to finance leases are included in “Property, Plant & Equipment”, with corresponding liabilities recorded to “Other current liabilities”, and “Other liabilities” on our consolidated balance sheets.

We assess potential impairments to our leases annually, or as indicators exist, if indicators of impairment arise to determine whether there is evidence that indicate an impairment condition may exist. We continue to review our real estate portfolio and, during the first quarter of 2022, determined to either terminate or market for sublease certain facilities leases, which triggered an impairment of $44 million for our finance and operating lease assets recorded as restructuring charges and other costs. See Note 9 for further details.

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Recent Accounting Literature (Policy)

6 Months Ended

Jun. 30, 2022

Recent Accounting Literature [Abstract]

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard provides optional expedients, and allows for certain exceptions to existing GAAP, for contract modifications triggered by the expected market transition of certain benchmark interest rates to alternative reference rates. The standard applies to contracts and other arrangements that reference the London Interbank Offering Rate (LIBOR) or any other rates ending after December 31, 2022. Frontier is evaluating the impact of the adoption of this standard, including optional expedients, on our consolidated financial statements.

Government Assistance

In November 2021, the FASB issued ASU 2021-10, which requires business entities to disclose information about certain government assistance they receive. Such disclosure requirements include the nature of the transactions and the related accounting policy used, the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item and significant

terms and conditions of the transactions. ASU 2021-10 will be effective for annual periods beginning after December 15, 2021 (year ending December 31, 2022 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2021-10 will have on its disclosures.

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Disaggregation Of Revenue

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Data and Internet services	$	847	$	556	$	283
Voice services		381		283		160
Video services		134		105		54
Other		80		62		30
Revenue from contracts with customers (1)		1,442		1,006		527
Subsidy and other revenue (2)		17		55		28
Total revenue	$	1,459	$	1,061	$	555
	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Consumer	$	791	$	543	$	283
Business and wholesale		651		463		244
Revenue from contracts with customers (1)		1,442		1,006		527
Subsidy and other revenue (2)		17		55		28
Total revenue	$	1,459	$	1,061	$	555

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	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Data and Internet services	$	1,683	$	556	$	1,125
Voice services		767		283		647
Video services		271		105		223
Other		163		62		125
Revenue from contracts with customers (1)		2,884		1,006		2,120
Subsidy and other revenue (2)		22		55		111
Total revenue	$	2,906	$	1,061	$	2,231
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Consumer	$	1,567	$	543	$	1,133
Business and wholesale		1,317		463		987
Revenue from contracts with customers (1)		2,884		1,006		2,120
Subsidy and other revenue (2)		22		55		111
Total revenue	$	2,906	$	1,061	$	2,231

⁽¹⁾Lease revenue included in “Revenue from contracts with customers” was $16 million and $32 million for the three and six months ended June 30, 2022, respectively, $11 million for the two months ended June 30, 2021, and $5 million and $26 million for the one and four months ended April 30, 2021, respectively.

⁽²⁾Subsidy and other revenue for the three and six months ended June 30, 2022, does not include revenue from CAF II as the program ended in 2021. We began to receive funding for RDOF in the second quarter of 2022.

Changes In Contract Assets And Contract Liabilities

	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2021 (Successor)	$	-	$	-	$	27	$	11
Revenue recognized included
in opening contract balance		-		-		(20)		(5)
Credits granted, excluding amounts
recognized as revenue		-		-		18		11
Reclassified between current
and noncurrent		-		-		2		(2)
Balance at June 30, 2022 (Successor)	$	-	$	-	$	27	$	15
	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2020 (Predecessor)	$	6	$	9	$	58	$	20
Revenue recognized included
in opening contract balance		(4)		-		(23)		(3)
Cash received, excluding amounts
recognized as revenue		-		-		22		2
Balance at April 30, 2021 (Predecessor)	$	2	$	9	$	57	$	19
Fresh start accounting adjustments		(2)		(9)		(42)		(18)
Balance at April 30, 2021 (Predecessor)	$	-	$	-	$	15	$	1
Balance at April 30, 2021 (Successor)	$	-	$	-	$	15	$	1
Revenue recognized included
in opening contract balance		-		-		(4)		(1)
Cash received, excluding amounts
recognized as revenue		-		-		8		4
Reclassified between current
and noncurrent		-		-		(1)		1
Balance at June 30, 2021 (Successor)	$	-	$	-	$	18	$	5

Performance Obligations, Revenue

($ in millions)	Revenue from contracts with customers
2022 (remaining six months)	$	461
2023		407
2024		270
2025		135
2026		83
Thereafter		91
Total	$	1,447

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Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2022

Accounts Receivable [Abstract]

Accounts Receivable

($ in millions)	June 30, 2022		December 31, 2021
Retail and wholesale	$	406	$	441
Other		59		74
Less: Allowance for doubtful accounts		(45)		(57)
Accounts receivable, net	$	420	$	458

Activity In The Allowance For Credit Losses

($ in millions)
Balance at December 31, 2021	$	57
Provision for bad debt		14
Amounts charged to revenue		17
Write offs charged against the allowance		(43)
Balance at June 30, 2022	$	45

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Property, Plant And Equipment (Tables)

6 Months Ended

Jun. 30, 2022

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment, Net

($ in millions)	June 30, 2022		December 31, 2021
Property, plant and equipment	$	11,024	$	9,707
Less: Accumulated depreciation		(916)		(508)
Property, plant and equipment, net	$	10,108	$	9,199

Schedule Of Depreciation Expense

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Depreciation expense	$	211	$	127	$	99
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Depreciation expense	$	414	$	127	$	407

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Other Intangibles (Tables)

6 Months Ended

Jun. 30, 2022

Other Intangibles [Abstract]

Schedule Of Intangible Assets

The components of other intangibles as of June 30, 2022 and December 31, 2021 was follows:

	June 30, 2022						December 31, 2021
	Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
($ in millions)	Amount		Amortization		Amount		Amount		Amortization		Amount
Intangibles:
Customer Relationships - Business	$	800	$	(85)	$	715	$	800	$	(48)	$	752
Customer Relationships - Wholesale		3,491		(254)		3,237		3,491		(146)		3,345
Trademarks & Tradenames		150		(35)		115		150		(20)		130
Total other intangibles	$	4,441	$	(374)	$	4,067	$	4,441	$	(214)	$	4,227

Schedule Of Amortization Expense

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Amortization expense	$	79	$	52	$	20
	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Amortization expense	$	160	$	52	$	99

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Fair Value Of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Long-Term Debt

	June 30, 2022				December 31, 2021
($ in millions)		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Total debt	$	8,970	$	7,995	$	7,777	$	7,996

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2022

Long-Term Debt [Abstract]

Long-Term Debt

			For the six months ended ‎June 30, 2022
			Principal
	January 1,		Payments		New		June 30,
($ in millions)	2022		and Retirements		Borrowings		2022
Secured debt issued by Frontier	$	6,927	$	(7)	$	1,200	$	8,120
Secured debt issued by subsidiaries		100		-		-		100
Unsecured debt issued by subsidiaries		750		-		-		750
Principal outstanding	$	7,777	$	(7)	$	1,200	$	8,970
Less: Debt Issuance Costs		(13)						(30)
Less: Current Portion		(15)						(15)
Plus: Unamortized fair value adjustments (1)		219						205
Total Long-term debt	$	7,968					$	9,130

⁽¹⁾ Upon emergence, we adjusted the carrying value of our debt to fair value. The adjustment consisted of the elimination of the existing unamortized debt issuance costs and unamortized discounts and recording a balance of $236 million as a fair value adjustment. The fair value accounting adjustment is being amortized into interest expense using the effective interest method.

Schedule Of Secured And Unsecured Debt

	June 30, 2022			December 31, 2021
	Principal		Interest	Principal		Interest
($ in millions)	Outstanding		Rate	Outstanding		Rate
Secured debt issued by Frontier
Term loan due 10/8/2027	$	1,457	4.813% (Variable)	$	1,464	4.500% (Variable)
First lien notes due 10/15/2027		1,150	5.875%		1,150	5.875%
First lien notes due 5/1/2028		1,550	5.000%		1,550	5.000%
First lien notes due 5/12/2030		1,200	8.750%		-	n/a
Second lien notes due 11/1/2029		750	5.875%		750	5.875%
Second lien notes due 5/1/2029		1,000	6.750%		1,000	6.750%
Second lien notes due 1/15/2030		1,000	6.000%		1,000	6.000%
IDRB due 5/1/2030		13	6.200%		13	6.200%
Secured debt issued by Frontier		8,120			6,927
Secured debt issued by subsidiaries
Debentures due 11/15/2031		100	8.500%		100	8.500%
Secured debt issued by subsidiaries		100			100
Unsecured debt issued by subsidiaries
Debentures due 5/15/2027		200	6.750%		200	6.750%
Debentures due 2/1/2028		300	6.860%		300	6.860%
Debentures due 2/15/2028		200	6.730%		200	6.730%
Debentures due 10/15/2029		50	8.400%		50	8.400%
Unsecured debt issued by subsidiaries		750			750
Principal outstanding	$	8,970	6.163% (1)	$	7,777	5.702% (1)

⁽¹⁾ Interest rate represents a weighted average of the stated interest rates of multiple issuances.

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Restructuring And Other Charges (Tables)

6 Months Ended

Jun. 30, 2022

Restructuring Costs And Other Charges [Abstract]

Changes In Restructuring Reserve

($ in millions)
Balance at January 1, 2022	$	7
Severance expense		32
Other costs		8
Cash payments during the period		(28)
Balance at June 30, 2022	$	19

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Investment And Other Income (Tables)

6 Months Ended

Jun. 30, 2022

Investment And Other Income [Abstract]

Components Of Investment And Other Income (Loss)

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Interest and dividend income	$	6	$	-	$	-
Pension benefit		25		13		2
OPEB costs		(5)		(17)		(1)
OPEB remeasurement gain		96		-		-
All other, net		-		2		(2)
Total investment and other income (loss), net	$	122	$	(2)	$	(1)

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Interest and dividend income	$	8	$	-	$	-
Pension benefit		50		13		6
OPEB costs		(8)		(17)		(4)
OPEB remeasurement gain		150		-		-
All other, net		(1)		2		(1)
Total investment and other income (loss), net	$	199	$	(2)	$	1

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Stock Plans (Tables)

6 Months Ended

Jun. 30, 2022

Stock Plans [Abstract]

Restricted Shares Outstanding

2021 Incentive Plan
		Weighted
		Average
	Number of	Grant Date		Aggregate
	Shares	Fair Value		Fair Value
	(in thousands)	(per share)		(in millions)
Balance at January 1, 2022	2,483	$	28.67	$	72
Restricted stock granted	941	$	25.87	$	25
Restricted stock vested	(817)	$	25.69	$	(22)
Restricted stock forfeited	(92)	$	25.91
Balance at June 30, 2022	2,515	$	25.84	$	67

Target Performance Shares

2021 Incentive Plan
			Weighted
			Average
	Number of		Grant Date	Aggregate
	Shares		Fair Value	Fair Value
	(in thousands)		(per share)	(in millions)
Balance at January 1, 2022	3,144	$	25.62	$	92
Target performance shares awarded, net	257	$	25.85	$	7
Target performance shares earned	-	$	-	$	-
Target performance shares forfeited	(9)	$	25.61
Balance at June 30, 2022	3,392	$	25.64	$	90

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Reconciliation Of Provision For Income Taxes

	Successor				Successor		Predecessor
	For the three months ended June 30,		For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
	2022		2022		2021		2021
Consolidated tax provision at federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income tax expense, net of federal
income tax benefit	15.0		12.0		3.7		0.5
Changes in certain deferred tax balances	1.7		1.1		-		-
Restructuring cost	-		-		-		0.3
Tax reserve adjustment	0.3		0.4		0.6		-
Fresh start and reorganization adjustments	-		-		-		(24.9)
Tax Credit	(0.6)		(0.8)		(1.3)		-
Sec.162(m) - nondeductible Executive Compensation	2.4		3.2		-		-
All other, net	0.8		0.5		6.1		-
Effective tax rate	40.6	%	37.4	%	30.1	%	(3.1)	%

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Net Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Net Earnings Per Share [Abstract]

Reconciliation Of Net Loss Per Share

	Successor		Successor		Predecessor
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2021
Net income used for basic and diluted earnings
per share:
Total basic net income
attributable to Frontier common shareholders	$	101	$	99	$	4,481
Effect of loss related to dilutive stock units		-		-		-
Total diluted net income
attributable to Frontier common shareholders	$	101	$	99	$	4,481
Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		244,723		244,401		104,816
Less: Weighted average unvested restricted stock awards		-		-		(154)
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Basic net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.81
Diluted earnings per share:
Total weighted average shares outstanding - basic		244,723		244,401		104,662
Effect of dilutive stock units		-		-		340
Effect of dilutive restricted stock awards		-		-		-
Total weighted average shares outstanding - diluted		244,723		244,401		105,002
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.41	$	0.41	$	42.68

‎

	Successor		Successor		Predecessor
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2021
Net income used for basic and diluted earnings
per share:
Total basic net income
attributable to Frontier common shareholders	$	166	$	99	$	4,541
Effect of loss related to dilutive stock units		-		-		-
Total diluted net income
attributable to Frontier common shareholders	$	166	$	99	$	4,541
Basic earnings per share:
Total weighted average shares and unvested restricted stock
awards outstanding - basic		244,592		244,401		104,799
Less: Weighted average unvested restricted stock awards		-		-		(215)
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Basic net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.42
Diluted earnings per share:
Total weighted average shares outstanding - basic		244,592		244,401		104,584
Effect of dilutive stock units		-		-		340
Effect of dilutive restricted stock awards		239		-		-
Total weighted average shares outstanding - diluted		244,831		244,401		104,924
Diluted net earnings per share
attributable to Frontier common shareholders	$	0.68	$	0.41	$	43.28

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Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2022

Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss), Net Of Tax

	Pension		OPEB
($ in millions)	Costs		Costs		Total
Balance at January 1, 2022 (Successor) (1)	$	-	$	60	$	60
Other comprehensive income
before reclassifications		-		6		6
Amounts reclassified from accumulated other
comprehensive income to net income		-		(4)		(4)
Net current-period other comprehensive
income		-		2		2
Balance at June 30, 2022 (Successor) (1)	$	-	$	62	$	62
	Pension		OPEB
($ in millions)	Costs		Costs		Total
Balance at January 1, 2021 (Predecessor) (1)	$	(699)	$	(56)	$	(755)
Other comprehensive income
before reclassifications		270		74		344
Amounts reclassified from accumulated other
comprehensive loss to net income		19		(4)		15
Net current-period other comprehensive
income		289		70		359
Cancellation of Predecessor equity		410		(14)		396
Balance at April 30, 2021 (Predecessor) (1)	$	-	$	-	$	-
Balance at April 30, 2021 (Successor) (1)	$	-	$	-	$	-
Other comprehensive income
before reclassifications		-		42		42
Amounts reclassified from accumulated other
comprehensive income to net income		-		(1)		(1)
Net current-period other comprehensive
income		-		41		41
Balance at June 30, 2021 (Successor) (1)	$	-	$	41	$	41

⁽¹⁾ Pension and OPEB amounts are net of tax of $15 million and $234 million as of January 1, 2022 and 2021, respectively and $17 million and $14 million as of June 30, 2022 and 2021, respectively.

Reclassification Out Of AOCI

	Successor		Successor		Predecessor
	Amount Reclassified from
	Accumulated Other
	Comprehensive Loss (1)
($ in millions)							Affected Line Item in
	For the three months		For the two months		For the one month		the Statement Where
Details about Accumulated Other	ended June 30,		ended June 30,		ended April 30,		Net Income (Loss)
Comprehensive Loss Components	2022		2021		2021		is Presented
Amortization of Pension Cost Items
Actuarial losses	$	-	$	-	$	(6)
One-time loss on disposal		-		-		-
		-		-		(6)	Income (Loss) before income taxes
Tax impact		-		-		1	Income tax benefit
	$	-	$	-	$	(5)	Net income (loss)
Amortization of OPEB Cost Items
Prior-service costs	$	3	$	1	$	3
Actuarial losses		-		-		(2)
		3		1		1	Income (Loss) before income taxes
Tax impact		(1)		-		-	Income tax benefit
	$	2	$	1	$	1	Net income (loss)

	Successor		Successor		Predecessor
	Amount Reclassified from
	Accumulated Other
	Comprehensive Loss (1)
($ in millions)							Affected Line Item in
	For the six months		For the two months		For the four months		the Statement Where
Details about Accumulated Other	ended June 30,		ended June 30,		ended April 30,		Net Income (Loss)
Comprehensive Loss Components	2022		2021		2021		is Presented
Amortization of Pension Cost Items
Actuarial losses	$	-	$	-	$	(24)
One-time loss on disposal		-		-		-
		-		-		(24)	Income (Loss) before income taxes
Tax impact		-		-		5	Income tax benefit
	$	-	$	-	$	(19)	Net income (loss)
Amortization of OPEB Cost Items
Prior-service costs	$	6	$	1	$	10
Actuarial losses		-		-		(5)
		6		1		5	Income (Loss) before income taxes
Tax impact		(2)		-		(1)	Income tax benefit
	$	4	$	1	$	4	Net income (loss)

⁽¹⁾ These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (See Note 15 - Retirement Plans for additional details).

 

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Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2022

Pension [Member]

Net Periodic Benefit Cost

	Successor		Successor		Predecessor
	Pension Benefits
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Components of total pension benefit cost
Service cost	$	20	$	13	$	8
Interest cost on projected benefit obligation		25		18		8
Expected return on plan assets		(50)		(31)		(16)
Amortization of unrecognized loss		-		-		6
Total pension (benefit) cost	$	(5)	$	-	$	6
	Successor		Successor		Predecessor
	Pension Benefits
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Components of total pension benefit cost
Service cost	$	41	$	13	$	32
Interest cost on projected benefit obligation		49		18		31
Expected return on plan assets		(99)		(31)		(61)
Amortization of unrecognized loss		-		-		24
Total pension (benefit) cost	$	(9)	$	-	$	26

OPEB [Member]

Net Periodic Benefit Cost

	Successor		Successor		Predecessor
	Postretirement
	For the three months ended June 30,		For the two months ended June 30,		For the one month ended April 30,
($ in millions)	2022		2021		2021
Components of net periodic postretirement benefit cost
Service cost	$	3	$	3	$	2
Interest cost on projected benefit obligation		8		5		2
Amortization of prior service (benefit)		(3)		(1)		(3)
Remeasurement (gain) loss		(96)		13		-
Amortization of unrecognized loss		-		-		2
Net periodic postretirement (benefit) cost	$	(88)	$	20	$	3
	Successor		Successor		Predecessor
	Postretirement
	For the six months ended June 30,		For the two months ended June 30,		For the four months ended April 30,
($ in millions)	2022		2021		2021
Components of net periodic postretirement benefit cost
Service cost	$	7	$	3	$	7
Interest cost on projected benefit obligation		14		5		9
Amortization of prior service (benefit)		(6)		(1)		(10)
Remeasurement (gain) loss		(150)		13		-
Amortization of unrecognized loss		-		-		5
Net periodic postretirement (benefit) cost	$	(135)	$	20	$	11

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Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions	1 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021 USD ($)	Mar. 31, 2022 USD ($)	Apr. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Annual support accepted for commitment for RDOF				$ 37
Number of reportable segments | segment				1
Restricted cash, current					$ 17
Restricted cash, noncurrent				$ 30	$ 34
Short-term Investments				$ 2,300
Business And Wholesale [Member] | Minimum [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Useful life				11 years
Business And Wholesale [Member] | Maximum [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Useful life				16 years
Trademarks and Tradenames [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Useful life				5 years
Successor [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Lease Impairment		$ 44		$ 44
Predecessor [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Gain on settlement of liabilities			$ 5,274
Fresh start valuation adjustment charges			1,038
Debtor-in-possession financing costs			15
Reorganization item, professional fees and other bankruptcy related costs			50
Reorganization Items	$ (4,196)		(4,171)
Customer surcharges			$ 83

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Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, Remaining Performance Obligation, Amount			$ 1,447		$ 1,447
Successor [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease revenue		$ 11	$ 16		$ 32
Predecessor [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease revenue	$ 5			$ 26

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Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		$ 1,006	$ 1,442		$ 2,884
Subsidy and other revenue		55	17		22
Total revenue		1,061	1,459		2,906
Successor [Member] | Data And Internet Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		556	847		1,683
Successor [Member] | Voice Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		283	381		767
Successor [Member] | Video Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		105	134		271
Successor [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		62	80		163
Successor [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		543	791		1,567
Successor [Member] | Business And Wholesale [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers		$ 463	$ 651		$ 1,317
Predecessor [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 527			$ 2,120
Subsidy and other revenue	28			111
Total revenue	555			2,231
Predecessor [Member] | Data And Internet Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	283			1,125
Predecessor [Member] | Voice Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	160			647
Predecessor [Member] | Video Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	54			223
Predecessor [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	30			125
Predecessor [Member] | Consumer [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	283			1,133
Predecessor [Member] | Business And Wholesale [Member]
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 244			$ 987

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Revenue Recognition (Changes In Contract Assets And Contract Liabilities) (Details) - USD ($) $ in Millions	2 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2021	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Contract current liabilities, Beginning balance	$ 15		$ 27
Contract current liabilities, Revenue recognized included in opening contract balance	(4)		(20)
Contract current liabilities, Cash received, excluding amounts recognized as revenue	8
Contract current liabilities, Credits granted, excluding amounts recognized as revenue			18
Contract current liabilities, Reclassified between current and concurrent	(1)		2
Contract current liabilities, Ending balance	18	$ 15	27
Contract noncurrent liabilities, Beginning balance	1		11
Contract noncurrent liabilities, Revenue recognized included in opening contract balance	(1)		(5)
Contract noncurrent liabilities, Cash received, excluding amounts recognized as revenue	4
Contract noncurrent liabilities, Credits granted, excluding amounts recognized as revenue			11
Contract noncurrent liabilities, Reclassified between current and concurrent	1		(2)
Contract noncurrent liabilities, Ending balance	5	1	$ 15
Predecessor [Member]
Contract current assets, Beginning balance	2	6
Contract current assets, Revenue recognized included in opening contract balance		(4)
Contract current assets, Ending balance		2
Contract noncurrent assets, Beginning balance	9	9
Contract noncurrent assets, Ending balance		9
Contract current liabilities, Beginning balance	57	58
Contract current liabilities, Revenue recognized included in opening contract balance		(23)
Contract current liabilities, Cash received, excluding amounts recognized as revenue		22
Contract current liabilities, Ending balance		57
Contract noncurrent liabilities, Beginning balance	19	20
Contract noncurrent liabilities, Revenue recognized included in opening contract balance		(3)
Contract noncurrent liabilities, Cash received, excluding amounts recognized as revenue		2
Contract noncurrent liabilities, Ending balance		19
Fresh Start Adjustments [Member] | Predecessor [Member]
Contract current assets, Beginning balance	(2)
Contract current assets, Ending balance		(2)
Contract noncurrent assets, Beginning balance	(9)
Contract noncurrent assets, Ending balance		(9)
Contract current liabilities, Beginning balance	(42)
Contract current liabilities, Ending balance		(42)
Contract noncurrent liabilities, Beginning balance	(18)
Contract noncurrent liabilities, Ending balance		(18)
After Fresh Start Accounting Adjustments [Member] | Predecessor [Member]
Contract current liabilities, Beginning balance	15
Contract current liabilities, Ending balance		15
Contract noncurrent liabilities, Beginning balance	$ 1
Contract noncurrent liabilities, Ending balance		$ 1

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Revenue Recognition (Performance Obligations, Revenue) (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 1,447
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 461
Performance obligation satisfaction period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 407
Performance obligation satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 270
Performance obligation satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 135
Performance obligation satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 83
Performance obligation satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue from remaining performance obligations	$ 91
Performance obligation satisfaction period	1 year

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Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Apr. 30, 2021	Jun. 30, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Bad debt expense				$ 14
Successor [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Bad debt expense		$ 6		$ 14
Predecessor [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Bad debt expense	$ 4		$ 14

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Accounts Receivable (Accounts Receivable) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less: Allowance for doubtful accounts	$ (45)	$ (57)
Accounts receivable, net	420	458
Retail And Wholesale [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	406	441
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 59	$ 74

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Accounts Receivable (Activity In The Allowance For Credit Losses) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Accounts Receivable [Abstract]
Allowance for credit losses, Beginning Balance	$ 57
Provision for bad debt	14
Amounts charged to revenue	17
Write offs charged against the allowance	(43)
Allowance for credit losses, Ending Balance	$ 45

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Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	4 Months Ended	6 Months Ended
	Jul. 31, 2022	Jun. 30, 2021	Apr. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Mar. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment				$ 11,024	$ 9,707
Capital expenditures				1,088
Capital expenditures incurred but not yet paid				250
Subsequent Event [Member]
Property, Plant and Equipment [Line Items]
Proceeds from sale of property	$ 70
Successor [Member]
Property, Plant and Equipment [Line Items]
Capital expenditures		$ 269		1,088
Successor [Member] | Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment				$ 8,500
Predecessor [Member]
Property, Plant and Equipment [Line Items]
Capital expenditures			$ 500
Predecessor [Member] | Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment						$ 13,000

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Property, Plant, And Equipment (Property, Plant And Equipment, Net) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Property, Plant And Equipment [Abstract]
Property, plant and equipment	$ 11,024	$ 9,707
Less: Accumulated depreciation	(916)	(508)
Property, plant and equipment, net	$ 10,108	$ 9,199

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Property, Plant, And Equipment (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Depreciation expense		$ 127	$ 211		$ 414
Predecessor [Member]
Depreciation expense	$ 99			$ 407

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Other Intangibles (Narrative) (Details)	6 Months Ended
	Jun. 30, 2022
Customer Relationships - Wholesale [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	16 years
Customer Relationships - Business [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	11 years
Trademarks and Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years
Predecessor [Member] | Customer Base [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	8 years
Predecessor [Member] | Customer Base [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life	12 years

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Other Intangibles (Schedule Of Intangible Assets) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,441	$ 4,441
Accumulated Amortization	(374)	(214)
Net Carrying Amount	4,067	4,227
Customer Relationships - Business [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	800	800
Accumulated Amortization	(85)	(48)
Net Carrying Amount	715	752
Customer Relationships - Wholesale [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	3,491	3,491
Accumulated Amortization	(254)	(146)
Net Carrying Amount	3,237	3,345
Trademarks and Tradenames [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	150	150
Accumulated Amortization	(35)	(20)
Net Carrying Amount	$ 115	$ 130

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Other Intangibles (Schedule Of Amortization Expense) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Amortization expense		$ 52	$ 79		$ 160
Predecessor [Member]
Amortization expense	$ 20			$ 99

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Fair Value Of Financial Instruments (Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Carrying Amount [Member]
Long-term debt [Abstract]
Total debt	$ 8,970	$ 7,777
Fair Value [Member]
Long-term debt [Abstract]
Total debt	$ 7,995	$ 7,996

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Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions		1 Months Ended	4 Months Ended	6 Months Ended
	May 12, 2022	Apr. 30, 2021	Apr. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Feb. 27, 2017
First Lien Notes Due 4/1/2027 [Member]
Debt Instrument [Line Items]
Interest rate				8.00%
Maturity date				Apr. 01, 2027
Second Lien Notes Due 4/1/2026 [Member]
Debt Instrument [Line Items]
Interest rate				8.50%
Maturity date				Apr. 01, 2026
Revolving Facility [Member]
Debt Instrument [Line Items]
Letters of credit outstanding				$ 133
Available borrowing capacity				$ 767
Maturity date				Apr. 30, 2025
Line of credit facility maximum borrowing capacity	$ 900			$ 900
Line of credit facility, borrowing capacity increase	$ 275
Revolving Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Interest rate margin				3.50%
Revolving Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Interest rate margin				2.50%
Revolving Facility [Member] | LIBOR Floor Rate [Member]
Debt Instrument [Line Items]
Interest rate margin				0.00%
Successor [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 8,970	$ 7,777
Successor [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Common stock shares issued						244,401,000
Successor [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 8,120
Successor [Member] | Secured Debt [Member] | First Lien Notes Due 5/12/2030 [Member]
Debt Instrument [Line Items]
Interest rate				8.75%
Long-term Debt, Gross				$ 1,200
Predecessor [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross					7,777
Interest expense		$ 112	$ 450
Predecessor [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross					$ 6,927

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Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Less: Current Portion		$ (15)	$ (15)
Long-term debt		9,130	7,968
Long-term debt, fair value adjustment		236
Successor [Member]
Debt Instrument [Line Items]
Principal debt outstanding, beginning		7,777
Principal Payments and Retirements		(7)
New Borrowings		1,200
Principal debt outstanding, ending		8,970
Less: Debt Issuance Costs		(30)	(13)
Less: Current Portion		(15)	(15)
Plus: Unamortized fair value adjustments		205	219
Long-term debt		9,130	$ 7,968
Successor [Member] | Secured Debt Issued By Frontier [Member]
Debt Instrument [Line Items]
Principal debt outstanding, beginning		6,927
Principal Payments and Retirements		(7)
New Borrowings		1,200
Principal debt outstanding, ending		8,120
Successor [Member] | Secured Debt Issued By Subsidiaries [Member]
Debt Instrument [Line Items]
Principal debt outstanding, beginning		100
Principal debt outstanding, ending		100
Successor [Member] | Unsecured Debt Issued By Subsidiaries [Member]
Debt Instrument [Line Items]
Principal debt outstanding, beginning		750
Principal debt outstanding, ending		750
Predecessor [Member]
Debt Instrument [Line Items]
Principal debt outstanding, beginning		$ 7,777
New Borrowings	$ 225

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Long-Term Debt (Schedule Of Secured And Unsecured Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Successor [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 8,970	$ 7,777
Successor [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Principal outstanding	8,120
Successor [Member] | Secured Debt [Member] | Term Loan Due 10/8/2027 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 1,457
Interest rate	4.813%
Successor [Member] | Secured Debt [Member] | First Lien Notes Due 10/15/2027 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 1,150
Interest rate	5.875%
Successor [Member] | Secured Debt [Member] | First Lien Notes Due 5/1/2028 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 1,550
Interest rate	5.00%
Successor [Member] | Secured Debt [Member] | First Lien Notes Due 5/12/2030 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 1,200
Interest rate	8.75%
Successor [Member] | Secured Debt [Member] | Second Lien Notes Due 11/1/2029 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 750
Interest rate	5.875%
Successor [Member] | Secured Debt [Member] | Second Lien Notes Due 5/1/2029 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 1,000
Interest rate	6.75%
Successor [Member] | Secured Debt [Member] | Second Lien Notes Due 1/15/2030 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 1,000
Interest rate	6.00%
Successor [Member] | Secured Debt [Member] | IDRB Due 5/1/2030 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 13
Interest rate	6.20%
Successor [Member] | Secured Subsidiary Debt [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 100
Successor [Member] | Secured Subsidiary Debt [Member] | Debentures Due 11/15/2031 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 100
Interest rate	8.50%
Successor [Member] | Unsecured Subsidiary Debt [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 750
Successor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 5/15/2027 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 200
Interest rate	6.75%
Successor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 2/1/2028 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 300
Interest rate	6.86%
Successor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 2/15/2028 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 200
Interest rate	6.73%
Successor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 10/15/2029 [Member]
Debt Instrument [Line Items]
Principal outstanding	$ 50
Interest rate	8.40%
Successor [Member] | Total Debt [Member]
Debt Instrument [Line Items]
Weighted average interest rate	6.163%
Predecessor [Member]
Debt Instrument [Line Items]
Principal outstanding		7,777
Predecessor [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Principal outstanding		6,927
Predecessor [Member] | Secured Debt [Member] | Term Loan Due 10/8/2027 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 1,464
Interest rate		4.50%
Predecessor [Member] | Secured Debt [Member] | First Lien Notes Due 10/15/2027 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 1,150
Interest rate		5.875%
Predecessor [Member] | Secured Debt [Member] | First Lien Notes Due 5/1/2028 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 1,550
Interest rate		5.00%
Predecessor [Member] | Secured Debt [Member] | Second Lien Notes Due 11/1/2029 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 750
Interest rate		5.875%
Predecessor [Member] | Secured Debt [Member] | Second Lien Notes Due 5/1/2029 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 1,000
Interest rate		6.75%
Predecessor [Member] | Secured Debt [Member] | Second Lien Notes Due 1/15/2030 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 1,000
Interest rate		6.00%
Predecessor [Member] | Secured Debt [Member] | IDRB Due 5/1/2030 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 13
Interest rate		6.20%
Predecessor [Member] | Secured Subsidiary Debt [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 100
Predecessor [Member] | Secured Subsidiary Debt [Member] | Debentures Due 11/15/2031 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 100
Interest rate		8.50%
Predecessor [Member] | Unsecured Subsidiary Debt [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 750
Predecessor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 5/15/2027 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 200
Interest rate		6.75%
Predecessor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 2/1/2028 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 300
Interest rate		6.86%
Predecessor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 2/15/2028 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 200
Interest rate		6.73%
Predecessor [Member] | Unsecured Subsidiary Debt [Member] | Debentures Due 10/15/2029 [Member]
Debt Instrument [Line Items]
Principal outstanding		$ 50
Interest rate		8.40%
Predecessor [Member] | Total Debt [Member]
Debt Instrument [Line Items]
Weighted average interest rate		5.702%

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Restructuring Costs And Other Charges (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Restructuring costs and other charges		$ 11
Severance Costs		2	$ 26	$ 7	$ 32
Professional Fees		9
Lease Impairment Costs [Member]
Restructuring costs and other charges					44
Severance And Employee Costs [Member]
Restructuring costs and other charges					32
Other Restructuring [Member]
Restructuring costs and other charges					8
Successor [Member]
Restructuring costs and other charges		$ 11	$ 30		$ 84
Predecessor [Member]
Restructuring costs and other charges	$ 5			$ 7

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Restructuring Costs And Other Charges (Changes In Restructuring Reserve) (Details) - USD ($) $ in Millions	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Restructuring Costs And Other Charges [Abstract]
Restructuring Reserve, Beginning Balance				$ 7
Severance expense	$ 2	$ 26	$ 7	32
Other costs				8
Cash payments during the period				(28)
Restructuring Reserve, Ending Balance		$ 19		$ 19

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Investment And Other Income (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Successor [Member]
OPEB Remeasurement	$ 96	$ 150

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Investment And Other Income (Components Of Investment And Other Income (Loss)) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Interest and dividend income			$ 6		$ 8
Pension benefit		$ 13	25		50
OPEB costs		(17)	(5)		(8)
OPEB remeasurement gain			96		150
All other, net		2			(1)
Investment and other income (loss), net		$ (2)	$ 122		$ 199
Predecessor [Member]
Pension benefit	$ 2			$ 6
OPEB costs	(1)			(4)
All other, net	(2)			(1)
Investment and other income (loss), net	$ (1)			$ 1

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Stock Plans (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) shares
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Remaining unrecognized compensation cost associated with unvested restricted stock awards	$ 62
Weighted average period over which unvested restricted stock awards unrecognized compensation cost is expected to be recognized (in years)	2 years
Compensation expense	$ 19
Performance Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Measurement period	3 years
Performance metric percent	33.30%
Compensation expense	$ 16
Minimum [Member] | Performance Stock [Member] | PSUs 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout range, percent of target units	0.00%
Minimum [Member] | Performance Stock [Member] | PSUs 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout range, percent of target units	0.00%
Maximum [Member] | Performance Stock [Member] | PSUs 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout range, percent of target units	300.00%
Maximum [Member] | Performance Stock [Member] | PSUs 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payout range, percent of target units	200.00%
Successor [Member] | Frontier Communications Parent, Inc. 2021 Management Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (in shares) | shares	15,600,000
Unvested outstanding | shares	2,327,000

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Stock Plans (Restricted Shares Outstanding) (Details) - 2021 Incentive Plan [Member] $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at beginning of period (in shares) | shares	3,144
Restricted stock granted (in shares) | shares	257
Restricted stock forfeited (in shares) | shares	(9)
Balance at end of period (in shares) | shares	3,392
Balance at beginning of period (in dollars per shares) | $ / shares	$ 25.62
Restricted stock granted (in dollars per shares) | $ / shares	25.85
Restricted stock forfeited (in dollars per shares) | $ / shares	25.61
Balance at end of period (in dollars per shares) | $ / shares	$ 25.64
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at beginning of period (in shares) | shares	2,483
Restricted stock granted (in shares) | shares	941
Restricted stock vested (in shares) | shares	(817)
Restricted stock forfeited (in shares) | shares	(92)
Balance at end of period (in shares) | shares	2,515
Balance at beginning of period (in dollars per shares) | $ / shares	$ 28.67
Restricted stock granted (in dollars per shares) | $ / shares	25.87
Restricted stock vested (in dollars per shares) | $ / shares	25.69
Restricted stock forfeited (in dollars per shares) | $ / shares	25.91
Balance at end of period (in dollars per shares) | $ / shares	$ 25.84
Balance at beginning of period | $	$ 72
Restricted stock granted | $	25
Restricted stock vested | $	(22)
Restricted stock forfeited | $
Balance at end of period | $	$ 67

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Stock Plans (Target Performance Shares) (Details) - 2021 Incentive Plan [Member] $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at beginning of period (in shares) | shares	3,144
Target performance shares awarded, net (in shares) | shares	257
Target performance shares forfeited (in shares) | shares	(9)
Balance at end of period (in shares) | shares	3,392
Balance at beginning of period (in dollars per shares) | $ / shares	$ 25.62
Target performance shares awarded, net (in dollars per shares) | $ / shares	25.85
Target performance shares forfeited (in dollars per shares) | $ / shares	25.61
Balance at end of period (in dollars per shares) | $ / shares	$ 25.64
Balance at beginning of period | $	$ 92
Target performance shares awarded, net | $	7
Balance at end of period | $	$ 90

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Income Taxes (Narrative) (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)
Income Tax Contingency [Line Items]
Valuation allowance	$ 41	$ 41
Valuation allowance, net of federal benefit	32	32
First Lien Notes Due 5/12/2030 [Member]
Income Tax Contingency [Line Items]
New Borrowings	$ 1,200	$ 1,200

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Income Taxes (Reconciliation Of Provision For Income Taxes) (Details)	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Consolidated tax provision at federal statutory rate	21.00%	21.00%		21.00%
State income tax expense, net of federal income tax benefit	3.70%	15.00%		12.00%
Changes in certain deferred tax balances		1.70%		1.10%
Tax reserve adjustment	0.60%	0.30%		0.40%
Tax Credit	(1.30%)	(0.60%)		(0.80%)
Sec. 162(m) - nondeductible Executive Compensation		2.40%		3.20%
All other, net	6.10%	0.80%		0.50%
Effective tax rate	30.10%	40.60%		37.40%
Predecessor [Member]
Consolidated tax provision at federal statutory rate			21.00%
State income tax expense, net of federal income tax benefit			0.50%
Restructuring cost			0.30%
Fresh start and reorganization adjustments			(24.90%)
Effective tax rate			(3.10%)

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Net Earnings Per Share (Reconciliation Of Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total basic net income attributable to Frontier common shareholders		$ 99	$ 101		$ 166
Total diluted net income attributable to Frontier common shareholders		$ 99	$ 101		$ 166
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares)		244,401	244,723		244,592
Total weighted average shares outstanding - basic		244,401	244,723		244,592
Basic net earnings per share attributable to Frontier common shareholders		$ 0.41	$ 0.41		$ 0.68
Total weighted average shares outstanding - basic		244,401	244,723		244,592
Total weighted average shares outstanding - diluted		244,401	244,723		244,831
Diluted net earnings per share attributable to Frontier common shareholders		$ 0.41	$ 0.41		$ 0.68
Successor [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Effect of dilutive awards (in shares)					239
Predecessor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total basic net income attributable to Frontier common shareholders	$ 4,481			$ 4,541
Total diluted net income attributable to Frontier common shareholders	$ 4,481			$ 4,541
Total weighted average shares and unvested restricted stock awards outstanding - basic (in shares)	104,816			104,799
Less: Weighted average unvested restricted stock awards	(154)			(215)
Total weighted average shares outstanding - basic	104,662			104,584
Basic net earnings per share attributable to Frontier common shareholders	$ 42.81			$ 43.42
Total weighted average shares outstanding - basic	104,662			104,584
Total weighted average shares outstanding - diluted	105,002			104,924
Diluted net earnings per share attributable to Frontier common shareholders	$ 42.68			$ 43.28
Predecessor [Member] | Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Effect of dilutive awards (in shares)	340			340

XML

Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss), Net Of Tax) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended			4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2021	Apr. 30, 2021	Jun. 30, 2022	Jan. 01, 2022	Jan. 01, 2021
Successor [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning		$ 4,108	$ 4,678	$ 4,600			$ 4,600
Net current-period other comprehensive income (loss)		41	4	(2)			2
Balance at ending	$ 4,108	4,248	4,796	4,678		$ 4,108	4,796
Successor [Member] | Pension And OPEB [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax			17				17
Successor [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning			58	60			60
Other comprehensive income (loss) before reclassifications		42					6
Amounts reclassified from accumulated other comprehensive income (loss) to net loss		(1)					(4)
Net current-period other comprehensive income (loss)		41	4	(2)			2
Balance at ending		41	62	58			62
Successor [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | OPEB [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning				$ 60			60
Other comprehensive income (loss) before reclassifications		42					6
Amounts reclassified from accumulated other comprehensive income (loss) to net loss		(1)					(4)
Net current-period other comprehensive income (loss)		41					2
Balance at ending		41	$ 62				$ 62
Predecessor [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning	(4,830)	4,108			$ (4,900)	(4,900)
Net current-period other comprehensive income (loss)	348				11	359
Balance at ending	4,108				(4,830)	4,108
Predecessor [Member] | Pension And OPEB [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), net of tax		$ 14						$ 15	$ 234
Predecessor [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning	(744)				(755)	(755)
Other comprehensive income (loss) before reclassifications						344
Amounts reclassified from accumulated other comprehensive income (loss) to net loss						15
Net current-period other comprehensive income (loss)	$ 348				11	359
Cancellation of Predecessor equity						396
Balance at ending					(744)
Predecessor [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Pension [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning					(699)	(699)
Other comprehensive income (loss) before reclassifications						270
Amounts reclassified from accumulated other comprehensive income (loss) to net loss						19
Net current-period other comprehensive income (loss)						289
Cancellation of Predecessor equity						410
Predecessor [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | OPEB [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning					$ (56)	(56)
Other comprehensive income (loss) before reclassifications						74
Amounts reclassified from accumulated other comprehensive income (loss) to net loss						(4)
Net current-period other comprehensive income (loss)						70
Cancellation of Predecessor equity						$ (14)

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Comprehensive Income (Loss) (Reclassification Out Of AOCI) (Details) - Reclassification Out Of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member] | OPEB [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax		$ 1			$ 6
Tax impact					(2)
Reclassifications, net of tax		1			4
Successor [Member] | OPEB [Member] | Amortization Of Defined Benefit Cost Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax		1	$ 3
Tax impact			(1)
Reclassifications, net of tax		1	2
Successor [Member] | OPEB [Member] | Prior-Service Credits (Costs) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax		$ 1	$ 3		$ 6
Predecessor [Member] | Pension [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax				$ (24)
Tax impact				5
Reclassifications, net of tax				(19)
Predecessor [Member] | Pension [Member] | Amortization Of Defined Benefit Cost Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax	$ (6)
Tax impact	1
Reclassifications, net of tax	(5)
Predecessor [Member] | Pension [Member] | Actuarial Gains (Losses) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax	(6)			(24)
Predecessor [Member] | OPEB [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax				5
Tax impact				(1)
Reclassifications, net of tax				4
Predecessor [Member] | OPEB [Member] | Amortization Of Defined Benefit Cost Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax	1
Reclassifications, net of tax	1
Predecessor [Member] | OPEB [Member] | Prior-Service Credits (Costs) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax	3			10
Predecessor [Member] | OPEB [Member] | Actuarial Gains (Losses) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, pretax	$ (2)			$ (5)

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Retirement Plans (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022	Dec. 31, 2021
Successor [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Capitalization of pension and OPEB expense		$ 4			$ 11
OPEB Remeasurement			$ 96		150
Predecessor [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Capitalization of pension and OPEB expense	$ 1			$ 7
Pension [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions to plans					74
Decrease in plan assets					(545)
Investment returns					506
Plan assets			$ 2,110		2,110	$ 2,655
Benefit payments					$ 113

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Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	4 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2022	Apr. 30, 2021	Jun. 30, 2022
Successor [Member] | Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		$ 13	$ 20		$ 41
Interest cost on projected benefit obligation		18	25		49
Expected return on plan assets		(31)	(50)		(99)
Net periodic (benefit) cost			(5)		(9)
Successor [Member] | OPEB [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		3	3		7
Interest cost on projected benefit obligation		5	8		14
Amortization of prior service (benefit)		(1)	(3)		(6)
Remeasurement gains		13	(96)		(150)
Net periodic (benefit) cost		$ 20	$ (88)		$ (135)
Predecessor [Member] | Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8			$ 32
Interest cost on projected benefit obligation	8			31
Expected return on plan assets	(16)			(61)
Amortization of unrecognized loss	6			24
Net periodic (benefit) cost	6			26
Predecessor [Member] | OPEB [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	2			7
Interest cost on projected benefit obligation	2			9
Amortization of prior service (benefit)	(3)			(10)
Amortization of unrecognized loss	2			5
Net periodic (benefit) cost	$ 3			$ 11

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Commitments And Contingencies (Narrative) (Details) $ in Millions				6 Months Ended
	Jul. 27, 2022 USD ($)	Oct. 04, 2021 USD ($)	Dec. 07, 2020 USD ($) item	Jun. 30, 2022 USD ($) state
Commitments And Contingencies [Line Items]
Short-term purchase commitment, period				2 years
Short-term purchase commitment, extension period				2 years
FTC And California [Member]
Commitments And Contingencies [Line Items]
Litigation payment		$ 9
NOV [Member]
Commitments And Contingencies [Line Items]
Prescribed fine	$ 5
CAF Phase II [Member]
Commitments And Contingencies [Line Items]
Number of states of operation | state				25
Annual support offered by the Federal Communications Commission				$ 313
RDOF Program, Phase I [Member]
Commitments And Contingencies [Line Items]
Awarded amount			$ 371
Period to build gigabit capable broadband			10 years
Number of location to build gigabit capable broadband | item			127,000
Number of states to build gigabit capable broadband | item			8
Minimum [Member]
Commitments And Contingencies [Line Items]
Terms of lease arrangements				1 year
Maximum [Member]
Commitments And Contingencies [Line Items]
Terms of lease arrangements				99 years