ASC 606 Adoption And Revenue Recognition (Tables)

9 Months Ended

Sep. 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

	September 30, 2018
			Impact of		Amounts Excluding
($ in millions)	As Reported		Adoption of ASC 606		Adoption of ASC 606
Assets
Accounts receivable, net	$	744	$	38	$	782
Contract acquisition costs	$	102	$	(102)	$	-
Prepaid expenses	$	95	$	5	$	100
Other current assets	$	103	$	4	$	107
Property, plant and equipment, net	$	14,268	$	(47)	$	14,221
Other assets	$	233	$	(132)	$	101
Liabilities and Equity
Other current liabilities	$	324	$	(4)	$	320
Other liabilities	$	296	$	3	$	299
Deferred income taxes	$	1,204	$	(52)	$	1,152
Accumulated deficit	$	(2,533)	$	(181)	$	(2,714)

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

	For the three months ended September 30, 2018
			Impact of		Amounts Excluding
	As Reported		Adoption of ASC 606		Adoption of ASC 606
($ in millions)
Revenue	$	2,126	$	(6)	$	2,120
Operating expenses:
Network access expenses		353		1		354
Network related expenses		476		-		476
Selling, general and administrative expenses		445		2		447
Other operating expenses		885		-		885
Total operating expenses		2,159		3		2,162
Operating loss	$	(33)	$	(9)	$	(42)
	For the nine months ended September 30, 2018
			Impact of		Amounts Excluding
	As Reported		Adoption of ASC 606		Adoption of ASC 606
($ in millions)
Revenue	$	6,487	$	(14)	$	6,473
Operating expenses:
Network access expenses		1,094		(5)		1,089
Network related expenses		1,437		-		1,437
Selling, general and administrative expenses		1,374		15		1,389
Other operating expenses		1,882		-		1,882
Total operating expenses		5,787		10		5,797
Operating income (loss)	$	700	$	(24)	$	676

Disaggregation Of Revenue

	For the three months ended September 30,
	2018
			Impact of		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Data and Internet services	$	961	$	(23)	$	938	$	956
Voice services		669		(35)		634		702
Video services		260		27		287		318
Other		141		(53)		88		84
Revenue from contracts
with customers		2,031		(84)		1,947		2,060
Subsidy and other regulatory revenue		95		78		173		191
Total revenue	$	2,126	$	(6)	$	2,120	$	2,251
	For the three months ended September 30,
	2018
			Impact of		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Consumer	$	1,069	$	(22)	$	1,047	$	1,102
Commercial		962		(62)		900		958
Revenue from contracts
with customers		2,031		(84)		1,947		2,060
Subsidy and other regulatory revenue		95		78		173		191
Total revenue	$	2,126	$	(6)	$	2,120	$	2,251

	For the nine months ended September 30,
	2018
			Impact of		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Data and Internet services	$	2,919	$	(91)	$	2,828	$	2,923
Voice services		2,053		(101)		1,952		2,177
Video services		810		83		893		994
Other		416		(157)		259		231
Revenue from contracts
with customers		6,198		(266)		5,932		6,325
Subsidy and other regulatory revenue		289		252		541		586
Total revenue	$	6,487	$	(14)	$	6,473	$	6,911

	For the nine months ended September 30,
	2018
			Impact of		Amounts Excluding
			Adoption of		Adoption of
($ in millions)	As reported		ASC 606		ASC 606		2017
Consumer	$	3,292	$	(88)	$	3,204	$	3,390
Commercial		2,906		(178)		2,728		2,935
Revenue from contracts
with customers		6,198		(266)		5,932		6,325
Subsidy and other regulatory revenue		289		252		541		586
Total revenue	$	6,487	$	(14)	$	6,473	$	6,911

Changes In Contract Assets And Contract Liabilities

	Contract			Contract
($ in millions)	Assets			Liabilities
Balance January 1, 2018	$	77	(1)	$	(60)	(3)
Revenue recognized included
in opening contract balance		(38)			90
Cash received, excluding amounts
recognized as revenue		-			(109)
Credits granted, excluding amounts
recognized as revenue		36			-
Other		-			6
Balance September 30, 2018	$	75	(2)	$	(73)	(4)

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

(2) Includes $38 million in other current assets and $37 million in other assets.

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

(4) Includes $45 million in other current liabilities and $28 million in other liabilities.

Performance Obligations, Revenue

($ in millions)	Revenue from contracts with customers
2018 (remaining three months)	$	1,359
2019		2,713
2020		1,001
2021		386
2022		220
Thereafter		262
Total	$	5,941