2022 Q1 Form 10-K Financial Statement
#000002052022000004 Filed on February 25, 2022
Income Statement
| Concept | 2022 Q1 |
|---|---|
| Revenue | $1.447B |
| YoY Change | -13.66% |
| Cost Of Revenue | $553.0M |
| YoY Change | 179.29% |
| Gross Profit | $894.0M |
| YoY Change | -39.51% |
| Gross Profit Margin | 61.78% |
| Selling, General & Admin | $435.0M |
| YoY Change | 6.62% |
| % of Gross Profit | 48.66% |
| Research & Development | |
| YoY Change | |
| % of Gross Profit | |
| Depreciation & Amortization | $284.0M |
| YoY Change | -26.61% |
| % of Gross Profit | 31.77% |
| Operating Expenses | $719.0M |
| YoY Change | 76.23% |
| Operating Profit | $175.0M |
| YoY Change | -32.43% |
| Interest Expense | -$101.0M |
| YoY Change | -213.48% |
| % of Operating Profit | -57.71% |
| Other Income/Expense, Net | $75.00M |
| YoY Change | 7400.0% |
| Pretax Income | $95.00M |
| YoY Change | -35.37% |
| Income Tax | $30.00M |
| % Of Pretax Income | 31.58% |
| Net Earnings | $65.00M |
| YoY Change | 8.33% |
| Net Earnings / Revenue | 4.49% |
| Basic Earnings Per Share | $0.27 |
| Diluted Earnings Per Share | $265.0K |
| COMMON SHARES | |
| Basic Shares Outstanding | 244.4M |
| Diluted Shares Outstanding | 245.3M |
Balance Sheet
| Concept | 2022 Q1 |
|---|---|
| SHORT-TERM ASSETS | |
| Cash & Short-Term Investments | $2.200B |
| YoY Change | 4.41% |
| Cash & Equivalents | $1.300B |
| Short-Term Investments | $900.0M |
| Other Short-Term Assets | $31.00M |
| YoY Change | -27.91% |
| Inventory | |
| Prepaid Expenses | $60.00M |
| Receivables | $397.0M |
| Other Receivables | $31.00M |
| Total Short-Term Assets | $2.688B |
| YoY Change | -5.58% |
| LONG-TERM ASSETS | |
| Property, Plant & Equipment | $9.575B |
| YoY Change | -26.27% |
| Goodwill | |
| YoY Change | |
| Intangibles | $4.147B |
| YoY Change | |
| Long-Term Investments | |
| YoY Change | |
| Other Assets | $345.0M |
| YoY Change | -34.66% |
| Total Long-Term Assets | $14.07B |
| YoY Change | -0.33% |
| TOTAL ASSETS | |
| Total Short-Term Assets | $2.688B |
| Total Long-Term Assets | $14.07B |
| Total Assets | $16.76B |
| YoY Change | -1.21% |
| SHORT-TERM LIABILITIES | |
| YoY Change | |
| Accounts Payable | $694.0M |
| YoY Change | 36.88% |
| Accrued Expenses | $199.0M |
| YoY Change | 38.19% |
| Deferred Revenue | $27.00M |
| YoY Change | -53.45% |
| Short-Term Debt | $0.00 |
| YoY Change | |
| Long-Term Debt Due | $15.00M |
| YoY Change | -99.74% |
| Total Short-Term Liabilities | $1.713B |
| YoY Change | -76.05% |
| LONG-TERM LIABILITIES | |
| Long-Term Debt | $7.957B |
| YoY Change | |
| Other Long-Term Liabilities | $415.0M |
| YoY Change | -6.74% |
| Total Long-Term Liabilities | $8.372B |
| YoY Change | 1781.35% |
| TOTAL LIABILITIES | |
| Total Short-Term Liabilities | $1.713B |
| Total Long-Term Liabilities | $8.372B |
| Total Liabilities | $12.08B |
| YoY Change | -44.58% |
| SHAREHOLDERS EQUITY | |
| Retained Earnings | $479.0M |
| YoY Change | -105.37% |
| Common Stock | $4.141B |
| YoY Change | -14.51% |
| Preferred Stock | |
| YoY Change | |
| Treasury Stock (at cost) | |
| YoY Change | |
| Treasury Stock Shares | |
| Shareholders Equity | $4.678B |
| YoY Change | |
| Total Liabilities & Shareholders Equity | $16.76B |
| YoY Change | -1.21% |
Cashflow Statement
| Concept | 2022 Q1 |
|---|---|
| OPERATING ACTIVITIES | |
| Net Income | $65.00M |
| YoY Change | 8.33% |
| Depreciation, Depletion And Amortization | $284.0M |
| YoY Change | -26.61% |
| Cash From Operating Activities | $528.0M |
| YoY Change | -20.6% |
| INVESTING ACTIVITIES | |
| Capital Expenditures | -$447.0M |
| YoY Change | 16.41% |
| Acquisitions | |
| YoY Change | |
| Other Investing Activities | -$898.0M |
| YoY Change | 44800.0% |
| Cash From Investing Activities | -$1.345B |
| YoY Change | 253.95% |
| FINANCING ACTIVITIES | |
| Cash Dividend Paid | |
| YoY Change | |
| Common Stock Issuance & Retirement, Net | |
| YoY Change | |
| Debt Paid & Issued, Net | $3.000M |
| YoY Change | |
| Cash From Financing Activities | -12.00M |
| YoY Change | 71.43% |
| NET CHANGE | |
| Cash From Operating Activities | 528.0M |
| Cash From Investing Activities | -1.345B |
| Cash From Financing Activities | -12.00M |
| Net Change In Cash | -829.0M |
| YoY Change | -398.2% |
| FREE CASH FLOW | |
| Cash From Operating Activities | $528.0M |
| Capital Expenditures | -$447.0M |
| Free Cash Flow | $975.0M |
| YoY Change | -7.05% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2021 | dei |
Document Fiscal Year Focus
DocumentFiscalYearFocus
|
2021 | |
| CY2021 | dei |
Document Transition Report
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false | |
| CY2021 | dei |
Entity File Number
EntityFileNumber
|
001-11001 | |
| CY2021 | dei |
Entity Registrant Name
EntityRegistrantName
|
FRONTIER COMMUNICATIONS PARENT, INC. | |
| CY2021 | dei |
Entity Incorporation State Country Code
EntityIncorporationStateCountryCode
|
DE | |
| CY2021 | dei |
Entity Tax Identification Number
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|
06-0619596 | |
| CY2021 | dei |
Entity Address Address Line1
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401 Merritt 7 | |
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Entity Public Float
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6450000000 | |
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Entity Common Stock Shares Outstanding
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244421000 | |
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FY | |
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10-K | |
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Document Annual Report
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true | |
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Current Fiscal Year End Date
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--12-31 | |
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2021-12-31 | |
| CY2021 | dei |
Entity Address City Or Town
EntityAddressCityOrTown
|
Norwalk | |
| CY2021 | dei |
Entity Address State Or Province
EntityAddressStateOrProvince
|
CT | |
| CY2021 | dei |
Entity Address Postal Zip Code
EntityAddressPostalZipCode
|
06851 | |
| CY2021 | dei |
City Area Code
CityAreaCode
|
203 | |
| CY2021 | dei |
Local Phone Number
LocalPhoneNumber
|
614-5600 | |
| CY2021 | dei |
Security12b Title
Security12bTitle
|
Common Stock, par value $0.01 per share | |
| CY2021 | dei |
Trading Symbol
TradingSymbol
|
FYBR | |
| CY2021 | dei |
Security Exchange Name
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|
NASDAQ | |
| CY2021 | dei |
Entity Well Known Seasoned Issuer
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|
No | |
| CY2021 | dei |
Entity Voluntary Filers
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No | |
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Entity Current Reporting Status
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Yes | |
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Entity Interactive Data Current
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Large Accelerated Filer | |
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Auditor Firm
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185 | |
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Auditor Name
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|
KPMG LLP | |
| CY2021 | dei |
Auditor Location
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|
Stamford, Connecticut | |
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Number Of Subscribers
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2800000 | |
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Entity Number Of Employees
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|
15600 | |
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Number Of States In Which Entity Operates
NumberOfStatesInWhichEntityOperates
|
25 | |
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Use Of Estimates
UseOfEstimates
|
(b)Basis of Presentation and Use of Estimates:Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain reclassifications of amounts previously reported have been made to conform to the current presentation. In 2021, we recategorized our previous operating expenses categories (“Cost of service expense”, “Network related expense,” and “Selling, general, and administrative expense”) into two expense lines: “Cost of service” and “Selling, general, and administrative expenses”. All historical periods presented have been updated to conform to the new categorization. All significant intercompany balances and transactions have been eliminated in consolidation. For our financial statements as of and for the period ended December 31, 2021, we evaluated subsequent events and transactions for potential recognition or disclosure through the date that we filed this Form 10-K with the Securities and Exchange Commission (SEC). The preparation of our 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, business combinations, and pension and other postretirement benefits, among others. For information about our use of estimates as a result of fresh start accounting, see Note 4. Chapter 11 Bankruptcy Emergence On April 14, 2020 (the “Petition Date”), Frontier Communications Corporation, a Delaware corporation (“Old Frontier”), and its subsidiaries (collectively with Old Frontier, the “Debtors”), commenced cases under chapter 11 (the “Chapter 11 Cases”) of title 11 of the United States Code (the “Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). On August 27, 2020, the Bankruptcy Court confirmed the Fifth Amended Joint Plan of Reorganization of Frontier Communications Corporation and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (the “Plan” or the “Plan of Reorganization”), which was filed with the Bankruptcy Court on August 21, 2020, and on April 30, 2021 (the “Effective Date”), the Debtors satisfied the conditions precedent to consummation of the Plan as set forth in the Plan, and the Debtors emerged from the Chapter 11 Cases without any need for further action or order of the Bankruptcy Court. See Note 3 for additional information related to our emergence from Chapter 11 Cases. Fresh Start AccountingUpon 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 Old Frontier and its subsidiaries on or before the Effective Date. See Note 4 for additional information related to fresh start accounting. During the Predecessor period, ASC 852 was applied in preparing the consolidated financial statements. ASC 852 requires the financial statements, for periods subsequent to the commencement of the Chapter 11 Cases, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. ASC 852 requires certain additional reporting for financial statements prepared between the bankruptcy filing date and the date of emergence from bankruptcy, including: (i) Reclassification of pre-petition liabilities that are unsecured, under-secured or where it cannot be determined that the liabilities are fully secured, to a separate line item on the consolidated balance sheet called, "Liabilities subject to compromise"; and (ii) Segregation of “Reorganization items, net” as a separate line on the consolidated statements of comprehensive loss, included within income from continuing operations. Upon application of fresh start accounting, we allocated the reorganization value to our individual assets and liabilities, except for deferred income taxes, based on their estimated fair values in conformity with ASC Topic 805, Business Combinations. The amount of deferred taxes was determined in accordance with ASC Topic 740, Income Taxes. The Effective Date fair values of our assets and liabilities differed materially from their recorded values as reflected on the historical balance sheets, see Note 4. | |
| CY2021 | us-gaap |
Comparability Of Prior Year Financial Data
ComparabilityOfPriorYearFinancialData
|
(c) 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 operations, 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 operations. 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 operations. 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 operations. | |
| CY2021 | us-gaap |
Plan Of Reorganization Dates Plan Confirmed
PlanOfReorganizationDatesPlanConfirmed
|
2020-08-27 | |
| CY2021 | fybr |
Reconciliation Of Enterprise And Reorganization Value
ReconciliationOfEnterpriseAndReorganizationValue
|
The following table reconciles the enterprise value to the estimated fair value of the Successor common stock as of the Effective Date: ($ in millions and shares in thousands, except per share data) Enterprise value $ 12,500 Plus: Cash and cash equivalents and restricted cash 940 Less: Fair value of debt and other liabilities (7,267)Less: Pension and other postretirement benefits (1,774)Less: Deferred tax liability (291)Fair value of Successor stockholders’ equity $ 4,108 Shares issued upon emergence 244,401 Per share value $ 17 The reconciliation of the Company’s enterprise value to reorganization value as of the Effective Date is as follows: ($ in millions) Enterprise value $ 12,500 Plus: Cash and cash equivalents and restricted cash 940 Plus: Current liabilities (excluding debt, finance leases, and non-operating liabilities) 1,179 Plus: Long term liabilities (excluding debt, finance leases, deferred tax liability) 307 Reorganization value $ 14,926 | |
| CY2021Q2 | fybr |
Fresh Start Adjustment Increase Decrease Operating Leases Right Of Use Assets
FreshStartAdjustmentIncreaseDecreaseOperatingLeasesRightOfUseAssets
|
4000000 | |
| CY2021Q2 | fybr |
Fresh Start Adjustment Increase Decrease Deferred Tax Assets Gross
FreshStartAdjustmentIncreaseDecreaseDeferredTaxAssetsGross
|
1500000000 | |
| CY2018 | fybr |
Pension Building Contribution Aggregate Annual Rent
PensionBuildingContributionAggregateAnnualRent
|
5000000 | |
| CY2021 | fybr |
Gain Loss On Contribution Of Property To Defined Benefit
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|
0 | |
| CY2021Q4 | fybr |
Line Of Credit Facility Maximum Permitted Leverage Ratio
LineOfCreditFacilityMaximumPermittedLeverageRatio
|
0.0300 | |
| CY2018 | fybr |
Defined Benefit Plan Lease Term Of Contributed Property
DefinedBenefitPlanLeaseTermOfContributedProperty
|
P20Y | |
| CY2019 | us-gaap |
Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
|
0 | |
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Impairment Of Intangible Assets Finitelived
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0 | |
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Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
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0 | |
| CY2021Q4 | fybr |
Line Of Credit Facility Maximum Permitted Leverage Ratio
LineOfCreditFacilityMaximumPermittedLeverageRatio
|
0.0275 | |
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Finance Lease Liability Obligation
FinanceLeaseLiabilityObligation
|
54000000 | |
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Lessee Operating And Finance Lease Option To Terminate Period
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|
P1Y | |
| CY2021 | fybr |
Lessor Operating Lease Option To Terminate Period
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|
P1Y | |
| CY2021 | fybr |
Tax Credit Carryforward Percentage Of Limitations On Use
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|
0.80 | |
| CY2021 | fybr |
Deferred Income Tax Payment Period
DeferredIncomeTaxPaymentPeriod
|
P2Y | |
| CY2021Q4 | us-gaap |
Income Tax Receivable
IncomeTaxReceivable
|
13000000 | |
| CY2021Q4 | fybr |
Unrecognized Tax Benefits Including Interests
UnrecognizedTaxBenefitsIncludingInterests
|
1000000 | |
| CY2021Q4 | us-gaap |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible Amount Of Unrecorded Benefit
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|
0 | |
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Number Of Operating Segments
NumberOfOperatingSegments
|
1 | |
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Number Of Reportable Segments
NumberOfReportableSegments
|
1 | |
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Defined Benefit Plan Weighted Average Asset Allocations
DefinedBenefitPlanWeightedAverageAssetAllocations
|
1 | |
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Defined Benefit Plan Weighted Average Asset Allocations
DefinedBenefitPlanWeightedAverageAssetAllocations
|
1 | |
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Assets Fair Value Disclosure
AssetsFairValueDisclosure
|
32000000 | |
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Fair Value Equity Between Levels One Two Or Three Amount
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|
0 | |
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Fair Value Equity Between Levels One Two Or Three Amount
FairValueEquityBetweenLevelsOneTwoOrThreeAmount
|
0 | |
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Annual Support Offered By Federal Communications Commission
AnnualSupportOfferedByFederalCommunicationsCommission
|
11200000000 |
