ASC 606 Adoption And Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

ASC 606 Adoption And Revenue Recognition [Abstract]

Schedule Of Prior Period Impact Of New Accounting Pronouncement

			(Unaudited)
	As Reported		ASC 606		Adjusted
($ in millions)	December 31, 2017		Transition Adjustment		January 1, 2018
Assets
Accounts receivable, net	$	819	$	(32)	$	787
Contract acquisition costs	$	-	$	87	$	87
Other current assets	$	64	$	4	$	68
Property, plant and equipment, net	$	14,377	$	15	$	14,392
Other assets	$	97	$	127	$	224
Liabilities and Equity
Other current liabilities	$	330	$	5	$	335
Other liabilities	$	317	$	(9)	$	308
Deferred income taxes	$	1,139	$	51	$	1,190
Accumulated deficit	$	(2,263)	$	154	$	(2,109)

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

	June 30, 2018
			Impact of		Amounts Excluding
($ in millions)	As Reported		Adoption of ASC 606		Adoption of ASC 606
Assets
Accounts receivable, net	$	751	$	35	$	786
Contract acquisition costs	$	97	$	(97)	$	-
Prepaid expenses	$	90	$	6	$	96
Other current assets	$	106	$	(2)	$	104
Property, plant and equipment, net	$	14,282	$	(39)	$	14,243
Other assets	$	236	$	(137)	$	99
Liabilities and Equity
Other current liabilities	$	387	$	(12)	$	375
Other liabilities	$	274	$	5	$	279
Deferred income taxes	$	1,219	$	(54)	$	1,165
Accumulated deficit	$	(2,107)	$	(173)	$	(2,280)

The following tables summarize the impacts of adopting ASC 606 on Frontier’s statement of operations for the three and six months ended June 30, 2018.

	For the three months ended June 30, 2018
			Impact of		Amounts Excluding
	As Reported		Adoption of ASC 606		Adoption of ASC 606
($ in millions)
Revenue	$	2,162	$	(2)	$	2,160
Operating expenses:
Network access expenses		369		(3)		366
Network related expenses		478		-		478
Selling, general and administrative expenses		460		9		469
Other operating expenses		488		-		488
Total operating expenses		1,795		6		1,801
Operating income	$	367	$	(8)	$	359
	For the six months ended June 30, 2018
			Impact of		Amounts Excluding
	As Reported		Adoption of ASC 606		Adoption of ASC 606
($ in millions)
Revenue	$	4,361	$	(8)	$	4,353
Operating expenses:
Network access expenses		741		(6)		735
Network related expenses		961		-		961
Selling, general and administrative expenses		929		13		942
Other operating expenses		997		-		997
Total operating expenses		3,628		7		3,635
Operating income	$	733	$	(15)	$	718

Disaggregation Of Revenue

	For the three months ended June 30,
	2018
			Impact		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Data and Internet services	$	973	$	(25)	$	948	$	974
Voice services		682		(34)		648		724
Video services		270		27		297		329
Other		140		(54)		86		79
Revenue from contracts
with customers		2,065		(86)		1,979		2,106
Subsidy and other regulatory revenue		97		84		181		198
Total revenue	$	2,162	$	(2)	$	2,160	$	2,304
	For the three months ended June 30,
	2018
			Impact of		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Consumer	$	1,095	$	(27)	$	1,068	$	1,124
Commercial		970		(59)		911		982
Revenue from contracts
with customers		2,065		(86)		1,979		2,106
Subsidy and other regulatory revenue		97		84		181		198
Total revenue	$	2,162	$	(2)	$	2,160	$	2,304

	For the six months ended June 30,
	2018
			Impact		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Data and Internet services	$	1,958	$	(68)	$	1,890	$	1,967
Voice services		1,384		(66)		1,318		1,475
Video services		550		56		606		676
Other		275		(104)		171		147
Revenue from contracts
with customers		4,167		(182)		3,985		4,265
Subsidy and other regulatory revenue		194		174		368		395
Total revenue	$	4,361	$	(8)	$	4,353	$	4,660

	For the six months ended June 30,
	2018
			Impact of		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Consumer	$	2,223	$	(66)	$	2,157	$	2,288
Commercial		1,944		(116)		1,828		1,977
Revenue from contracts
with customers		4,167		(182)		3,985		4,265
Subsidy and other regulatory revenue		194		174		368		395
Total revenue	$	4,361	$	(8)	$	4,353	$	4,660

Changes In Contract Assets And Contract Liabilities

	Contract			Contract
($ in millions)	Assets			Liabilities
Balance January 1, 2018	$	77	(1)	$	(60)	(2)
Revenue recognized included
in opening contract balance		(21)			64
Cash received, excluding amounts
recognized as revenue		-			(86)
Credits granted, excluding amounts
recognized as revenue		27			-
Other		-			6
Balance June 30, 2018	$	83	(1)	$	(76)	(2)

(1) Includes $42 million and $40 million in other current assets and $41 million and$37 million in other assets as of June 30, 2018 and January 1, 2018, respectively.

(2) Includes $51 million and $41 million in other current liabilities and $25 million and $19 million in other liabilities as of June 30, 2018 and January 1, 2018, respectively.

Performance Obligations, Revenue

($ in millions)	Revenue from contracts with customers
2018 (remaining six months)	$	2,197
2019		2,396
2020		878
2021		367
2022		224
Thereafter		274
Total	$	6,336