Document and Entity Information
Document and Entity Information Statement - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 06, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NII HOLDINGS INC | |
Central Index Key | 1,037,016 | |
Entity Well-Known Seasoned issuer | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting status | Yes | |
Entity Volunteer Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, shares outstanding | 100,896,091 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 332,688 | $ 342,184 |
Short-term investments | 35,000 | 84,317 |
Accounts receivable, net of allowance for doubtful accounts of $49,298 and $39,033 | 155,153 | 144,629 |
Handset and accessory inventory | 18,456 | 24,358 |
Prepaid expenses and other | 145,668 | 132,534 |
Total current assets | 686,965 | 728,022 |
Property, plant and equipment, net | 582,172 | 555,023 |
Intangible assets, net | 962,907 | 892,622 |
Other assets | 471,816 | 554,241 |
Total assets | 2,703,860 | 2,729,908 |
Current liabilities | ||
Accounts payable | 55,984 | 43,765 |
Accrued expenses and other | 274,084 | 268,858 |
Deferred revenues | 9,479 | 10,386 |
Current portion of long-term debt | 581,448 | 582,420 |
Total current liabilities | 920,995 | 905,429 |
Long-term debt | 90,279 | 82,647 |
Other long-term liabilities | 99,635 | 197,837 |
Total liabilities | $ 1,110,909 | $ 1,185,913 |
Commitments and contingencies | ||
Stockholders' equity | ||
Undesignated preferred stock, par value $0.001, 10,000 shares authorized, no shares issued or outstanding | $ 0 | $ 0 |
Common stock, par value $0.001, 140,000 shares authorized, 100,006 shares issued and outstanding | 100 | 100 |
Paid-in capital | 2,072,537 | 2,070,497 |
Accumulated deficit | (317,471) | (280,883) |
Accumulated other comprehensive loss | (162,215) | (245,719) |
Total stockholders’ equity | 1,592,951 | 1,543,995 |
Total liabilities and stockholders’ equity | $ 2,703,860 | $ 2,729,908 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful Accounts | $ 49,298 | $ 39,033 |
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (shares) | 0 | 0 |
Preferred Stock, shares outstanding (shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common Stock, shares issued (shares) | 100,006,000 | 100,006,000 |
Common Stock, shares outstanding (shares) | 100,006,000 | 100,006,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Successor Company | ||
Operating revenues | ||
Service and other revenues | $ 220,602 | |
Handset and accessory revenues | 5,955 | |
Total operating revenues | 226,557 | |
Operating expenses | ||
Cost of service (exclusive of depreciation and amortization included below) | 90,024 | |
Cost of handsets and accessories | 11,166 | |
Selling, general and administrative | 133,411 | |
Impairment and restructuring charges | 5,915 | |
Depreciation | 30,110 | |
Amortization | 9,995 | |
Total operating expenses | 280,621 | |
Operating loss | (54,064) | |
Other (expense) income | ||
Interest expense, net | (25,222) | |
Interest income | 9,724 | |
Foreign currency transaction gains (losses), net | 39,642 | |
Other (expense) income, net | (2,496) | |
Total other expense | 21,648 | |
Loss from continuing operations before reorganization items and income tax provision | (32,416) | |
Reorganization items | (375) | |
Income tax provision | (16) | |
Net income (loss) from continuing operations | (32,807) | |
Income (loss) from discontinued operations, net of income taxes | (3,781) | |
Net income (loss) | $ (36,588) | |
Net (loss) income from continuing operations per common share, basic (in dollars per share) | $ (0.33) | |
Net income (loss) from discontinued operations per common share, basic (in dollars per share) | (0.04) | |
Net (loss) income per common share, basic (in dollars per share) | $ (0.37) | |
Weighted average number of common shares outstanding, basic (shares) | 100,005 | |
Comprehensive income (loss), net of income taxes | ||
Foreign currency translation adjustment | $ 83,504 | |
Other Comprehensive Income, Other, Net of Tax | 0 | |
Other comprehensive income | 83,504 | |
Net income (loss) | (36,588) | |
Total comprehensive income (loss) | $ 46,916 | |
Predecessor Company | ||
Operating revenues | ||
Service and other revenues | $ 340,682 | |
Handset and accessory revenues | 22,726 | |
Total operating revenues | 363,408 | |
Operating expenses | ||
Cost of service (exclusive of depreciation and amortization included below) | 130,102 | |
Cost of handsets and accessories | 55,774 | |
Selling, general and administrative | 195,878 | |
Impairment and restructuring charges | 7,296 | |
Depreciation | 66,086 | |
Amortization | 14,083 | |
Total operating expenses | 469,219 | |
Operating loss | (105,811) | |
Other (expense) income | ||
Interest expense, net | (35,273) | |
Interest income | 6,438 | |
Foreign currency transaction gains (losses), net | (78,508) | |
Other (expense) income, net | 9,237 | |
Total other expense | (98,106) | |
Loss from continuing operations before reorganization items and income tax provision | (203,917) | |
Reorganization items | (13,609) | |
Income tax provision | (881) | |
Net income (loss) from continuing operations | (218,407) | |
Income (loss) from discontinued operations, net of income taxes | (91,110) | |
Net income (loss) | $ (309,517) | |
Net (loss) income from continuing operations per common share, basic (in dollars per share) | $ (1.27) | |
Net income (loss) from discontinued operations per common share, basic (in dollars per share) | (0.53) | |
Net (loss) income per common share, basic (in dollars per share) | $ (1.80) | |
Weighted average number of common shares outstanding, basic (shares) | 172,363 | |
Comprehensive income (loss), net of income taxes | ||
Foreign currency translation adjustment | $ (235,248) | |
Other Comprehensive Income, Other, Net of Tax | 3,363 | |
Other comprehensive income | (231,885) | |
Net income (loss) | (309,517) | |
Total comprehensive income (loss) | $ (541,402) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - 3 months ended Mar. 31, 2016 - Successor Company - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning Balance (shares) at Dec. 31, 2015 | 100,001 | ||||
Beginning Balance at Dec. 31, 2015 | $ 1,543,995 | $ 100 | $ 2,070,497 | $ (280,883) | $ (245,719) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (36,588) | (36,588) | |||
Other comprehensive income | 83,504 | 83,504 | |||
Share-based compensation activity (shares) | 5 | ||||
Share-based compensation activity | 2,040 | $ 2,040 | |||
Ending Balance (shares) at Mar. 31, 2016 | 100,006 | ||||
Ending Balance at Mar. 31, 2016 | $ 1,592,951 | $ 100 | $ 2,072,537 | $ (317,471) | $ (162,215) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Successor Company | ||
Cash flows from operating activities: | ||
Net loss | $ (36,588) | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations | 3,781 | |
Amortization of debt (premiums) discounts and financing costs | (48) | |
Depreciation and amortization | 40,105 | |
Provision for losses on accounts receivable | 19,650 | |
Foreign currency transaction (gains) losses, net | (39,642) | |
Impairment charges, restructuring charges and losses on disposals of fixed assets | 920 | |
Share-based payment expense | 1,868 | |
Other, net | 2,688 | |
Change in assets and liabilities: | ||
Accounts receivable | (15,816) | |
Prepaid value-added taxes | 11,850 | |
Handset and accessory inventory | 7,597 | |
Prepaid expenses and other | (5,629) | |
Other long-term assets | (3,128) | |
Accrued value-added taxes | (2,248) | |
Increase (Decrease) in Other Operating Liabilities | 3,299 | |
Accounts payable, accrued expenses, deferred revenues and other | (6,819) | |
Total operating cash used in continuing operations | (18,160) | |
Total operating cash used in discontinued operations | 0 | |
Net cash used in operating activities | (18,160) | |
Cash flows from investing activities: | ||
Capital expenditures | (8,436) | $ (45,781) |
Purchases of investments | (216,488) | |
Proceeds from sales of investments | 271,106 | |
Change in restricted cash, escrow accounts and other deposits | (8,578) | |
Other, net | (1,781) | |
Total investing cash provided by (used in) continuing operations | 35,823 | |
Total investing cash used in discontinued operations | (2,163) | |
Net cash provided by (used in) investing activities | 33,660 | |
Cash flows from financing activities: | ||
Net proceeds from debtor-in-possession loan | 0 | |
Repayments Under Equipment Financing | (24,413) | |
Repayments under tower financing and other | (243) | |
Total financing cash (used in) provided by continuing operations | (24,656) | |
Total financing cash used in discontinued operations | 0 | |
Net cash (used in) provided by financing activities | (24,656) | |
Effect of exchange rate changes on cash and cash equivalents | (340) | |
Change in cash and cash equivalents related to discontinued operations | 0 | |
Net (decrease) increase in cash and cash equivalents | (9,496) | |
Cash and cash equivalents, beginning of period | 342,184 | |
Cash and cash equivalents, end of period | $ 332,688 | |
Predecessor Company | ||
Cash flows from operating activities: | ||
Net loss | (309,517) | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations | 91,110 | |
Amortization of debt (premiums) discounts and financing costs | 4,545 | |
Depreciation and amortization | 80,169 | |
Provision for losses on accounts receivable | 20,461 | |
Foreign currency transaction (gains) losses, net | 78,508 | |
Impairment charges, restructuring charges and losses on disposals of fixed assets | 6,197 | |
Share-based payment expense | 1,116 | |
Other, net | (11,500) | |
Change in assets and liabilities: | ||
Accounts receivable | (21,550) | |
Prepaid value-added taxes | (9,341) | |
Handset and accessory inventory | (4,092) | |
Prepaid expenses and other | (1,409) | |
Other long-term assets | 19,703 | |
Accrued value-added taxes | 7,115 | |
Increase (Decrease) in Other Operating Liabilities | 3,506 | |
Accounts payable, accrued expenses, deferred revenues and other | (32,464) | |
Total operating cash used in continuing operations | (77,443) | |
Total operating cash used in discontinued operations | (93,412) | |
Net cash used in operating activities | (170,855) | |
Cash flows from investing activities: | ||
Capital expenditures | (45,781) | |
Purchases of investments | (342,867) | |
Proceeds from sales of investments | 333,055 | |
Change in restricted cash, escrow accounts and other deposits | (5,939) | |
Other, net | (3,990) | |
Total investing cash provided by (used in) continuing operations | (65,522) | |
Total investing cash used in discontinued operations | (51,344) | |
Net cash provided by (used in) investing activities | (116,866) | |
Cash flows from financing activities: | ||
Net proceeds from debtor-in-possession loan | 340,375 | |
Repayments Under Equipment Financing | 0 | |
Repayments under tower financing and other | (1,632) | |
Total financing cash (used in) provided by continuing operations | 338,743 | |
Total financing cash used in discontinued operations | (2,823) | |
Net cash (used in) provided by financing activities | 335,920 | |
Effect of exchange rate changes on cash and cash equivalents | (5,056) | |
Change in cash and cash equivalents related to discontinued operations | 88,079 | |
Net (decrease) increase in cash and cash equivalents | 131,222 | |
Cash and cash equivalents, beginning of period | 334,194 | |
Cash and cash equivalents, end of period | $ 465,416 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Unless the context requires otherwise, "NII Holdings, Inc.," "NII Holdings," "we," "our," "us" and "the Company" refer to the combined businesses of NII Holdings, Inc. and its consolidated subsidiaries. Our unaudited condensed consolidated financial statements have been prepared under the rules and regulations of the Securities and Exchange Commission, or the SEC. While these financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements, they reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for interim periods. In addition, the year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. We refer to our wholly-owned Brazilian operating company, Nextel Telecomunicações Ltda., as Nextel Brazil. You should read these condensed consolidated financial statements in conjunction with the consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2015 . You should not expect results of operations for interim periods to be an indication of the results for a full year. Our consolidated results from continuing operations in this quarterly report on Form 10-Q include the results of operations of Nextel Brazil and our corporate headquarters. Revision of Prior Period Financial Statements. In connection with the preparation of our condensed consolidated financial statements for the three months ended March 31, 2016, we determined that an error existed in our previously issued financial statements. Specifically, selling, general and administrative expenses for the six months ended December 31, 2015 were understated by $6.9 million as the result of a failure to properly accrue expenses for services Nextel Brazil received under a management consulting services arrangement. We evaluated this error under the SEC's authoritative guidance on materiality and the quantification of the effect of prior period misstatements on financial statements, and we have determined that the impact of this error on our prior period consolidated financial statements is immaterial. However, since the correction of this error in the first quarter of 2016 would have been material to our results of operations for the three months ended March 31, 2016 and may be material to our results of operations for the year ending December 31, 2016, we revised our prior period financial statements to correct this error herein. As a result of the correction of this error, as of December 31, 2015, accrued expenses and other increased by $6.8 million , accumulated deficit increased by $6.9 million and accumulated other comprehensive loss decreased by $0.1 million . Although not presented herein, for the six months ended December 31, 2015, this error resulted in a $6.9 million increase to selling, general and administrative expenses, operating loss, loss from continuing operations before reorganization items and income tax benefit, net loss from continuing operations and net loss. In addition, for the six months ended December 31, 2015, the correction of this error also resulted in a $0.07 increase in both net loss from continuing operations per basic and diluted common share and net loss per basic and diluted common share. This error did not relate to any periods prior to the six months ended December 31, 2015. Sales of Nextel Argentina and Nextel Mexico. On April 30, 2015, we completed the sale of our operations in Mexico to New Cingular Wireless, Inc., or New Cingular Wireless, an indirect subsidiary of AT&T, Inc., or AT&T. In addition, on September 11, 2015, two of our indirect subsidiaries entered into a binding agreement with Grupo Clarin S.A., or Grupo Clarin, relating to the sale of all of the outstanding equity interests of Nextel Argentina, which was completed on January 27, 2016. See Note 4 for more information on these sales. In connection with these transactions, we have presented Nextel Argentina's and Nextel Mexico's results for all periods as discontinued operations in this quarterly report on Form 10-Q. Reorganization Accounting. In accordance with the requirements of reorganization accounting, NII Holdings adopted the provisions of fresh start accounting as of June 30, 2015 and became a new entity for financial reporting purposes. References to the "Successor Company" relate to NII Holdings on or subsequent to June 30, 2015. References to the "Predecessor Company" relate to NII Holdings prior to June 30, 2015. See Note 2 for more information regarding the implementation of fresh start accounting. Going Concern. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments that might result from the occurrence of the uncertainties described below. We have an obligation to meet a net debt financial covenant in Nextel Brazil's local bank loans that will apply semiannually beginning on June 30, 2016. We have made a number of changes within our senior management team and modified our business plan to reflect our available cash resources and the impact of the current and expected economic and competitive conditions in Brazil on both our subscriber growth and revenues, and to align our costs with this revised outlook, but based on our current business plan, we believe that it is unlikely that we will satisfy the applicable financial covenant included in both of Nextel Brazil's local bank loan agreements at the June 30, 2016 measurement date. We will need to refinance or negotiate amendments to these financing arrangements or secure waivers from the lenders in order to avoid a potential default under the loan agreements. If a default occurs, the lenders could require us to repay the amounts outstanding under these arrangements, and if they were to do so, the lender of Nextel Brazil's equipment financing facility could accelerate the amount outstanding under that obligation as well. As of March 31, 2016, we had $256.5 million principal amount outstanding under Nextel Brazil's local bank loans and $318.0 million principal amount outstanding under Nextel Brazil’s equipment financing facility. See Note 6 for more information. Because it is unlikely that we will satisfy the applicable financial covenant included in both of Nextel Brazil's local bank loans and because of the cross-default provisions included in Nextel Brazil's equipment financing facility as described above, we concluded that the circumstances described above continue to raise substantial doubt about our ability to continue as a going concern as of March 31, 2016. Reclassifications. We have reclassified some prior period amounts in our condensed consolidated financial statements to conform to our current year presentation. New Accounting Pronouncements. In March 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. We early adopted this ASU in the first quarter of 2016. Under the new guidance, we made an accounting policy election to recognize the impact of forfeited awards on compensation expense when they occur, rather than initially reducing expense for an estimate of future forfeitures. This policy was applied using a modified retrospective approach and resulted in an immaterial cumulative effect adjustment to retained earnings. |
Emergence From Chapter 11 Proce
Emergence From Chapter 11 Proceedings and Fresh Start Accounting | 3 Months Ended |
Mar. 31, 2016 | |
Reorganizations [Abstract] | |
Emergence from Chapter 11 Proceedings and Fresh Start Accounting | Emergence from Chapter 11 Proceedings and Fresh Start Accounting On September 15, 2014, we and eight of our U.S. and Luxembourg-domiciled subsidiaries, including NII Capital Corp. and NII International Telecom, S.C.A., or NIIT, filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code, which we refer to as Chapter 11, in the United States Bankruptcy Court for the Southern District of New York, which we refer to as the Bankruptcy Court. In addition, subsequent to September 15, 2014, five additional subsidiaries of NII Holdings, Inc. filed voluntary petitions seeking relief under Chapter 11 in the Bankruptcy Court. We refer to the companies that filed voluntary petitions seeking relief under Chapter 11 collectively as the Debtors. Nextel Brazil and our previous other operating subsidiaries in Latin America were not Debtors in these Chapter 11 cases. On June 19, 2015, the Bankruptcy Court entered an order approving and confirming the First Amended Joint Plan of Reorganization Proposed by the Plan Debtors and the Official Committee of Unsecured Creditors, dated April 20, 2015. We refer to this plan, as amended, as the Plan of Reorganization. On June 26, 2015, the conditions of the Bankruptcy Court's order and the Plan of Reorganization were satisfied, the Plan of Reorganization became effective, and we and the other Debtors emerged from the Chapter 11 proceedings. We refer to June 26, 2015 as the Emergence Date. The significant transactions that occurred on the Emergence Date in connection with the effectiveness of our Plan of Reorganization included the following: • NII Holdings canceled all shares of its common stock, preferred stock and other equity interests that existed prior to June 26, 2015; • NII Holdings amended and restated its Bylaws and filed an Amended and Restated Certificate of Incorporation authorizing the Company to issue up to 140,000,000 shares of common stock, par value $0.001 per share, and up to 10,000,000 shares of undesignated preferred stock, par value $0.001 per share; • NII Holdings issued 99,999,992 shares of new common stock, with a per share value of $20.68 , and distributed cash of $776.3 million to the holders of claims and service providers in comprehensive settlement of numerous integrated claims and disputes approved by the Bankruptcy Court in connection with the confirmation of the Plan of Reorganization; • In accordance with the Plan of Reorganization, all of the obligations of the Debtors with respect to the following indebtedness were canceled: • $700.0 million aggregate principal amount of 7.875% senior notes due 2019 issued by NIIT pursuant to an indenture, dated as of May 23, 2013, among NIIT (as issuer), the Company (as guarantor), and Wilmington Trust National Association (as trustee) and all amendments, supplements or modifications thereto and extensions thereof; • $900.0 million aggregate principal amount of 11.375% senior notes due 2019 issued by NIIT pursuant to an indenture, dated as of February 19, 2013, among NIIT (as issuer), the Company (as guarantor), and Wilmington Trust National Association (as trustee) and all amendments, supplements or modifications thereto and extensions thereof; • $1.45 billion aggregate principal amount of 7.625% senior notes due 2021 issued by NII Capital Corp. pursuant to an indenture, dated as of March 29, 2011, among NII Capital Corp. (as issuer), each of the guarantors party thereto and Wilmington Savings Fund Society, FSB (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof; • $500.0 million aggregate principal amount of 8.875% senior notes due 2019 issued by NII Capital Corp. pursuant to an indenture, dated as of December 15, 2009, among NII Capital Corp. (as issuer), each of the guarantors party thereto and U.S. Bank National Association (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof; and • $800.0 million aggregate principal amount of 10.0% senior notes due 2016 issued by NII Capital Corp. pursuant to an indenture, dated as of August 18, 2009, among NII Capital Corp. (as issuer), each of the guarantors party thereto and Wilmington Savings Fund Society, FSB (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof. In connection with our emergence from Chapter 11, we were required to apply the provisions of fresh start accounting to our financial statements. Because our results of operations during the period from June 26, 2015 to June 30, 2015 were not material, we applied fresh start accounting to our consolidated financial statements as of the close of business on June 30, 2015. Under the principles of fresh start accounting, a new reporting entity is considered to be created, and as a result, we allocated the reorganization value of NII Holdings as of June 30, 2015 to our individual assets based on their estimated fair values at the date we applied fresh start accounting. Reorganization items for the three months ended March 31, 2016 were immaterial. Reorganization items for the three months ended March 31, 2015 consisted of $13.6 million in Chapter 11-related professional fees and other costs. |
Supplemental Financial Statemen
Supplemental Financial Statement Information Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Financial Statement Information [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Prepaid Expenses and Other. The components of our prepaid expenses and other current assets are as follows: Successor Company March 31, December 31, (in thousands) Cash collateral related to performance bonds $ 61,174 $ 47,450 Value-added taxes 31,468 33,467 Other prepaid assets 15,867 11,934 Other current assets 37,159 39,683 $ 145,668 $ 132,534 Property, Plant and Equipment, Net. During the three months ended March 31, 2016 and 2015, we capitalized immaterial amounts of interest. The components of our property, plant and equipment, net are as follows: Successor Company March 31, December 31, (in thousands) Land $ 2,913 $ 2,655 Building and leasehold improvements 12,955 11,765 Network equipment, communication towers and network software 551,170 492,814 Software, office equipment, furniture and fixtures and other 75,336 65,747 Less: Accumulated depreciation (98,130 ) (59,987 ) 544,244 512,994 Construction in progress 37,928 42,029 $ 582,172 $ 555,023 Intangible Assets, Net. Our intangible assets include the following: Successor Company March 31, 2016 December 31, 2015 Average Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Amortizable intangible assets: Licenses 26 $ 931,659 $ (26,878 ) $ 904,781 $ 850,818 $ (16,314 ) $ 834,504 Tradename 26 38,700 (1,116 ) 37,584 38,700 (744 ) 37,956 Customer relationships 4 25,282 (4,740 ) 20,542 23,042 (2,880 ) 20,162 $ 995,641 $ (32,734 ) $ 962,907 $ 912,560 $ (19,938 ) $ 892,622 Based on the carrying amount of our intangible assets as of March 31, 2016 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands): Y ears Estimated Amortization Expense 2016 $ 42,727 2017 43,642 2018 43,642 2019 40,482 2020 37,321 Actual amortization expense to be reported in future periods could differ from these estimates as a result of additional acquisitions of intangibles, as well as changes in foreign currency exchange rates and other relevant factors. Restricted Cash. The components of our restricted cash, almost all of which were classified as other assets in our consolidated balance sheet as of March 31, 2016 and December 31, 2015, are as follows: Successor Company March 31, December 31, (in thousands) Cash in escrow — Nextel Mexico sale $ 186,617 $ 186,593 Brazil judicial deposits 67,009 54,289 Cash in escrow — Nextel Peru sale 34,356 34,353 Short-term cash in escrow — Nextel Argentina sale 6,000 6,000 $ 293,982 $ 281,235 Other Assets. The components of our other long-term assets are as follows: Successor Company March 31, December 31, (in thousands) Restricted cash $ 287,982 $ 275,235 Cash collateral related to performance bonds 99,491 94,236 Equity interest in Nextel Argentina — 108,148 Other 84,343 76,622 $ 471,816 $ 554,241 Accrued Expenses and Other. The components of our accrued expenses and other are as follows: Successor Company March 31, December 31, (in thousands) Network system and information technology $ 48,472 $ 32,079 Payroll related items and commissions 34,656 31,734 Non-income based taxes 32,333 33,097 Capital expenditures 18,336 25,182 Other 140,287 146,766 $ 274,084 $ 268,858 Accumulated Other Comprehensive Loss. As of March 31, 2016 and December 31, 2015 , the tax impact on our accumulated other comprehensive loss was not material. In addition, as of March 31, 2016 and December 31, 2015, all of our accumulated other comprehensive loss represented cumulative foreign currency translation adjustment. Supplemental Cash Flow Information. Successor Company Predecessor Company Three Months Ended March 31, Three Months Ended March 31, 2016 2015 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest on property, plant and equipment $ 8,436 $ 45,781 Change in capital expenditures accrued and unpaid or financed, including interest capitalized (881 ) (30,863 ) $ 7,555 $ 14,918 In connection with the completion of the sale of Nextel Communications Argentina, S.R.L., or Nextel Argentina, to Grupo Clarin in January 2016, the promissory note that was initially issued in connection with this transaction was canceled. See Note 4 for more information. Other than the cancellation of this promissory note in the first quarter of 2016, we did not have any non-cash investing or financing activities during the three months ended March 31, 2016 or 2015. Revenue-Based Taxes. We record certain revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated financial statements. For the three months ended March 31, 2016 and 2015, we recognized $13.7 million and $17.8 million , respectively, in revenue-based taxes and other excise taxes, respectively. Diluted Net Loss Per Common Share. As presented for the three months ended March 31, 2016 and 2015, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. For the three months ended March 31, 2016, we did not include 3.7 million stock options and 0.9 million restricted common shares in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three months ended March 31, 2015, we did not include 5.3 million stock options and 0.7 million restricted common shares in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Sale of Nextel Argentina. On September 11, 2015, NII Mercosur Telecom, S.L.U. and NII Mercosur Moviles, S.L.U., both of which are indirect subsidiaries of NII Holdings, entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Argentina. This agreement provided for aggregate cash consideration of $178.0 million , of which $159.0 million was paid at signing in connection with the transfer of a 49% equity interest in Nextel Argentina and the grant of a call option that allowed Grupo Clarin or any of its affiliates to acquire the remaining 51% equity interest in Nextel Argentina upon receipt of required approvals from the regulatory authorities in Argentina. We received the remaining cash consideration in October 2015, including $6.0 million deposited in escrow to satisfy potential indemnification claims. On January 27, 2016, the agreement was amended to permit Grupo Clarin or any of it affiliates to exercise the right to acquire the remaining 51% equity interest prior to receiving regulatory approval, and Grupo Clarin and its affiliates immediately acquired the remaining 51% of Nextel Argentina for no additional proceeds. Sale of Nextel Mexico. On April 30, 2015, we, together with our wholly-owned subsidiary NIU Holdings LLC, completed the sale of our Mexican operations to New Cingular Wireless, an indirect subsidiary of AT&T. The transaction was structured as a sale of all of the outstanding stock of the parent company of Comunicaciones Nextel de Mexico, S.A. de C.V., or Nextel Mexico, for a purchase price of $1.875 billion , including $187.5 million deposited in escrow to satisfy potential indemnification claims. The net proceeds from this sale were $1.448 billion after deducting Nextel Mexico's outstanding indebtedness and applying other specified price adjustments. The amount held in escrow is available for the indemnification of defined claims through April 2017. As of March 31, 2016, we had received notification for one indemnification claim in the amount of $6.5 million . As of March 31, 2016, we accrued an immaterial amount related to the potential settlement of this claim. We intend to vigorously contest this claim. Sale of Nextel Chile. In August 2014, our wholly-owned subsidiaries NII Mercosur Telecom, S.L., NII Mercosur Moviles, S.L. and NII International Telecom S.C.A. completed the sale of all of the outstanding equity interests in our wholly-owned subsidiary, Nextel Chile, S.A., or Nextel Chile, to Fucata, S.A., a venture comprised of Grupo Veintitres and Optimum Advisors, for a de minimus amount. Sale of Nextel Peru. In August 2013, our wholly-owned subsidiaries NII Mercosur Telecom, S.L. and NII Mercosur Moviles, S.L., completed the sale of all of the outstanding equity interests of our wholly-owned subsidiary, Nextel del Peru, S.A., or Nextel Peru, to Empresa Nacional de Telecomunicaciones S.A. and one of its subsidiaries, Entel Inversiones, S.A., which we refer to collectively as Entel. Entel has provided notice of potential claims for amounts greater than the $34.4 million that remained in escrow as of March 31, 2016 to satisfy these claims. We believe that the requirements for payment of certain indemnification claims have not been met at this time, and we intend to vigorously contest these claims. As of March 31, 2016, we accrued an immaterial amount related to the potential settlement of these claims. The time period for additional claims against the amount held in escrow lapsed in February 2015. In connection with the sales of Nextel Argentina and Nextel Mexico, we have reported the results of these operating companies as discontinued operations in this quarterly report on Form 10-Q. Accordingly, we reclassified Nextel Argentina's and Nextel Mexico's results of operations for all periods presented to reflect these former operating companies as discontinued operations. Unless otherwise noted, amounts included in these notes to our condensed consolidated financial statements exclude amounts attributable to discontinued operations. The major components of loss from discontinued operations related to Nextel Argentina and Nextel Mexico were as follows (in thousands): Successor Company Predecessor Company Three Months Ended March 31, Three Months Ended March 31, 2016 2015 Operating revenues $ — $ 400,461 Operating expenses — (459,490 ) Other expense, net — (31,845 ) Loss before income tax provision — (90,874 ) Income tax provision — (207 ) — (91,081 ) Loss on sales of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru (3,781 ) (29 ) Loss from discontinued operations, net of income taxes $ (3,781 ) $ (91,110 ) |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges Impairment, Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges Asset Impairments. During the first quarter of 2016, we reviewed our Nextel Brazil segment for potential impairment using a probability-weighted cash flow analysis. Our estimation of undiscounted future cash flows was partially based on assumptions that we will be able to fund our business plan and that it is not probable that our Nextel Brazil segment will be disposed of. Based on our current estimated undiscounted future cash flows, we determined that the carrying value of our Nextel Brazil segment is recoverable. During the three months ended March 31, 2015, Nextel Brazil recognized $3.7 million in non-cash asset impairment charges, the majority of which related to the shutdown or abandonment of certain transmitter and receiver sites that are no longer required in its business. Restructuring Charges. During the three months ended March 31, 2016, we recognized $1.3 million in severance and other related costs at the corporate level as a result of the separation of employees in an effort to streamline our organizational structure and reduce general and administrative expenses. During the three months ended March 31, 2016, Nextel Brazil recognized $3.2 million in restructuring charges primarily related to future lease costs for certain transmitter and receiver sites that are no longer required in its business and certain office closures. Nextel Brazil recognized $2.0 million in restructuring charges during the three months ended March 31, 2015 related to similar streamlining and cost reduction efforts. Total impairment, restructuring and other charges for the three months ended March 31, 2016 and 2015 were as follows (in thousands): Successor Company Predecessor Company Three Months Ended March 31, Three Months Ended March 31, 2016 2015 Brazil $ 4,265 $ 5,654 Corporate 1,650 1,642 Total impairment, restructuring and other charges $ 5,915 $ 7,296 As of March 31, 2016, total accrued restructuring charges were as follows (in thousands): Balance, December 31, 2015 — Successor Company $ 16,859 Restructuring charges 4,936 Cash payments (11,370 ) Balance, March 31, 2016 — Successor Company $ 10,425 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt [Abstract] | |
Debt | Debt As a result of the implementation of fresh start accounting in connection with our emergence from Chapter 11, we remeasured the components of our debt to their fair values as of June 30, 2015. As a result, the carrying values of our bank loans and equipment financing facility do not represent their respective outstanding principal balances. The components of our debt are as follows: Successor Company March 31, 2016 December 31, 2015 (in thousands) Brazil equipment financing facility $ 315,565 $ 339,850 Brazil bank loans 262,948 240,396 Brazil capital lease and tower financing obligations 92,637 84,295 Other 577 526 Total debt 671,727 665,067 Less: current portion (581,448 ) (582,420 ) $ 90,279 $ 82,647 Brazil Bank Loans. In February 2015, Nextel Brazil and the lenders providing its local bank loans entered into standstill amendments which provided for a "covenant holiday" through December 31, 2015, during which time we were not required to comply with the financial covenants outlined in Nextel Brazil's local bank loan agreements. Going forward, Nextel Brazil must maintain a net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, ratio over the trailing 12 months of no greater than 4.0 as of June 30, 2016, 3.5 as of December 31, 2016 and 2.5 as of June 30, 2017 and on each six-month anniversary thereafter. In connection with our emergence from Chapter 11, we made a number of changes within our senior management team and modified our business plan to reflect our available cash resources and the impact of the current and expected economic and competitive conditions in Brazil on both our subscriber growth and revenues, and to align our costs with this revised outlook. Based on our current business plan, we believe that it is unlikely that we will satisfy the applicable financial covenant included in both of Nextel Brazil's local bank loan agreements at the June 30, 2016 measurement date. We will need to refinance or negotiate amendments to these financing arrangements or secure waivers from the lenders in order to avoid a potential default under the loan agreements. If a default occurs, the lenders could require us to repay the amounts outstanding under these arrangements. As a result of this uncertainty, we have continued to classify the amounts outstanding under Nextel Brazil's local bank loans as current liabilities in our condensed consolidated balance sheet as of March 31, 2016. As of March 31, 2016, we had $256.5 million principal amount outstanding under Nextel Brazil's local bank loans. Brazil Equipment Financing Facility. In December 2014, Nextel Brazil and the lender under its equipment financing facility agreed to amend this facility to remove all financial covenants beginning with the December 31, 2014 measurement date through the June 30, 2017 measurement date so that the first measurement date under the amended facility will be December 31, 2017. Because of the uncertainty regarding our ability to meet the financial covenant contained in Nextel Brazil's local bank loans discussed above and certain cross-default provisions that are included in the loan agreement under Nextel Brazil's equipment financing facility, we have continued to classify the amount outstanding under this facility as a current liability in our condensed consolidated balance sheet as of March 31, 2016. As of March 31, 2016, we had $318.0 million in principal amount outstanding under Nextel Brazil's equipment financing facility. We do not have the ability to borrow additional amounts under this equipment financing facility. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Nextel Argentina. On September 11, 2015, two of our indirect subsidiaries entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Argentina. In connection with the initial agreement, we issued a non-recourse promissory note in the amount of $85.0 million and pledged the remaining 51% of the equity interests in Nextel Argentina to Grupo Clarin. As of December 31, 2015, we recorded our retained 51% interest in Nextel Argentina as an equity method investment under the fair value option, which was included as a component of other assets in our consolidated balance sheet. As of December 31, 2015, we estimated the fair value of this investment to be $108.1 million . In addition, as of December 31, 2015, we recorded the non-recourse promissory note as a component of other long-term liabilities in our consolidated balance sheet at its estimated fair value of $108.1 million . This fair value estimate was based on the $178.0 million purchase price paid by Grupo Clarin, as adjusted for changes in excess cash from September 11, 2015 through December 31, 2015. On January 27, 2016, the agreement was amended to permit Grupo Clarin or any of its affiliates to exercise the right to acquire the remaining 51% equity interest prior to receiving regulatory approval, and Grupo Clarin and its affiliate immediately acquired the remaining 51% of Nextel Argentina for no additional proceeds. In connection with the completion of this transaction, the promissory note was canceled on January 27, 2016. Financial Instruments. Available-for-Sale Securities. As of March 31, 2016 and December 31, 2015 , available-for-sale securities held by Nextel Brazil included $23.7 million and $56.2 million , respectively, in investment funds and $10.5 million and $9.3 million , respectively, in certificates of deposit with a Brazilian bank. These funds invest primarily in Brazilian government bonds, long-term, low-risk bank certificates of deposit and Brazilian corporate debentures. During the three months ended March 31, 2016 and 2015, we did not have any material unrealized gains or losses associated with these investments. We account for our available-for-sale securities at fair value. The fair value of our Brazilian certificates of deposit is based on their current redemption amount, and we classify these certificates of deposit within Level 2 of the fair value hierarchy. The fair value of Nextel Brazil's investment funds is measured based on the funds' net asset value as a practical expedient, which is excluded from the fair value hierarchy. Held-to-Maturity Investments. We periodically invest some of our cash holdings in certain securities that we intend to hold to maturity. As of December 31, 2015, held-to-maturity investments included $18.1 million in short-term investments held by NIIT in U.S. treasury notes. We account for held-to-maturity securities at amortized cost, which approximates the fair value observed in the market. As of December 31, 2015, the fair value of our held-to-maturity investments was $18.0 million . These securities matured in February 2016. Debt Instruments. The carrying amounts and estimated fair values of our debt instruments are as follows: Successor Company March 31, 2016 December 31, 2015 Principal Amount Outstanding Carrying Amount Estimated Fair Value Principal Amount Outstanding Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 318,012 $ 315,565 $ 316,129 $ 342,475 $ 339,850 $ 340,189 Brazil bank loans and other 257,062 263,525 264,553 234,320 240,922 229,366 $ 575,074 $ 579,090 $ 580,682 $ 576,795 $ 580,772 $ 569,555 Bank loans and other consists primarily of loans with certain banks in Brazil. We estimated the fair value of these bank loans, as well as the fair value of our equipment financing facility in Brazil, utilizing inputs such as U.S. Treasury security yield curves, prices of comparable bonds, LIBOR, U.S. Treasury bond rates and credit spreads on comparable publicly traded bonds. We consider both Nextel Brazil's equipment financing facility and its bank loans and other to be Level 3 in the fair value hierarchy. Derivative Instruments. We occasionally enter into derivative transactions for risk management purposes. We have not and will not enter into any derivative transactions for speculative or profit generating purposes. We record all derivative instruments as either assets or liabilities on our condensed consolidated balance sheet at their fair value. As of March 31, 2016 and December 31, 2015, Nextel Brazil had an immaterial amount of derivative instruments that were classified as short-term investments on our condensed consolidated balance sheet. We consider this measurement to be Level 3 in the fair value hierarchy. Nextel Brazil entered into foreign currency option agreements to manage the foreign currency exposures associated with the forecasted purchase of handsets and other U.S. dollar-denominated payments. We do not apply hedge accounting to these derivative instruments. As a result, we have included all changes in the fair value of these instruments as a component of other (expense) income, net in our condensed consolidated statement of comprehensive income (loss). The gains and losses recognized in the three months ended March 31, 2016 were not material. For the three months ended March 31, 2015, Nextel Brazil recognized $9.9 million in unrealized gains resulting from the changes in the estimated fair value of these derivative instruments. Other Financial Instruments. The carrying values of cash and cash equivalents, accounts receivable and accounts payable contained in our condensed consolidated balance sheets approximate their fair values due to the short-term nature of these instruments. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Handset, Equipment and Other Commitments. We are a party to purchase agreements with various suppliers under which we have committed to purchase handsets, equipment and network services that will be used or sold in the ordinary course of business. As of March 31, 2016, we are committed to purchase $171.6 million under a handset purchase agreement with one of our handset suppliers by the end of 2016. We do not expect that we will purchase all of the committed devices, but we have not recorded a liability for this contract because we do not believe it is probable that we will incur a loss under this handset purchase agreement. Brazil Spectrum Commitment. In December 2015, Nextel Brazil participated in a spectrum auction and was the successful bidder for 30 megahertz, or MHz, of spectrum in the 1.8 gigahertz, or GHz, band for 455.0 million Brazilian reais, or approximately $116.7 million based on foreign currency exchange rates at the time. Nextel Brazil received the license agreement on February 16, 2016 and is committed to pay 10% of the total acquisition price when this license agreement is signed. Contingencies. Nextel Brazil has received various assessment notices from state and federal Brazilian authorities asserting deficiencies in payments related primarily to value-added taxes, excise taxes on imported equipment and other non-income based taxes. Nextel Brazil has filed various administrative and legal petitions disputing these assessments. In some cases, Nextel Brazil has received favorable decisions, which are currently being appealed by the respective governmental authority. In other cases, Nextel Brazil's petitions have been denied, and Nextel Brazil is currently appealing those decisions. Nextel Brazil also had contingencies related to certain regulatory, civil and labor-related matters as of March 31, 2016 and December 31, 2015. As of March 31, 2016 and December 31, 2015 , Nextel Brazil had accrued liabilities of $58.5 million and $57.7 million , respectively, related to contingencies, of which $4.6 million and $5.4 million related to unasserted claims, respectively. We currently estimate the reasonably possible losses related to matters for which Nextel Brazil has not accrued liabilities, as they are not deemed probable, to be approximately $305.0 million as of March 31, 2016 . We continue to evaluate the likelihood of probable and reasonably possible losses, if any, related to all known contingencies. As a result, future increases or decreases to our accrued liabilities may be necessary and will be recorded in the period when such amounts are determined to be probable and reasonably estimable. In addition, as of March 31, 2016, we estimated the reasonably possible losses related to potential indemnification claims in connection with the sales of Nextel Mexico and Nextel Peru for which we have not accrued liabilities, as they are not deemed probable, to be approximately $41.0 million . Legal Proceedings. We are subject to claims and legal actions that may arise in the ordinary course of business. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The realization of deferred tax assets is dependent on the generation of future taxable income sufficient to realize our tax loss carryforwards and other tax deductions. Valuation allowances are required to be recognized on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. In 2015, w e recorded full valuation allowances on the deferred tax assets of our foreign operating companies, our U.S. parent company and subsidiaries and our foreign holding companies due to substantial negative evidence such as the recent history of cumulative losses and the projected losses for 2016 and subsequent years. We maintained this same valuation allowance position through the first three months of 2016 . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We have determined our reportable segment based on our method of internal reporting, which disaggregates our business by geographic location. We evaluate performance and provide resources to it based on operating income before depreciation, amortization and impairment, restructuring and other charges, which we refer to as segment earnings. Nextel Brazil is our only reportable operating segment. Nextel Brazil Corporate and Eliminations Consolidated (in thousands) Three Months Ended March 31, 2016 — Successor Company Operating revenues $ 226,503 $ 54 $ 226,557 Segment earnings (losses) $ 3,760 $ (11,804 ) $ (8,044 ) Less: Impairment, restructuring and other charges (5,915 ) Depreciation and amortization (40,105 ) Foreign currency transaction gains, net 39,642 Interest expense and other, net (17,994 ) Loss from continuing operations before reorganization items and income tax provision $ (32,416 ) Capital expenditures $ 7,555 $ — $ 7,555 Three Months Ended March 31, 2015 — Predecessor Company Operating revenues $ 363,356 $ 52 $ 363,408 Segment earnings (losses) $ 3,523 $ (21,869 ) $ (18,346 ) Less: Impairment, restructuring and other charges (7,296 ) Depreciation and amortization (80,169 ) Foreign currency transaction losses, net (78,508 ) Interest expense and other, net (19,598 ) Loss from continuing operations before reorganization items and income tax provision $ (203,917 ) Capital expenditures $ 14,828 $ 90 $ 14,918 March 31, 2016 — Successor Company Identifiable assets $ 2,099,708 $ 604,152 $ 2,703,860 December 31, 2015 — Successor Company Identifiable assets $ 1,989,753 $ 740,155 $ 2,729,908 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue-Based Taxes | Revenue-Based Taxes. We record certain revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated financial statements. For the three months ended March 31, 2016 and 2015, we recognized $13.7 million and $17.8 million , respectively, in revenue-based taxes and other excise taxes, respectively. |
Diluted Net (Loss) Income Per Common Share | Diluted Net Loss Per Common Share. As presented for the three months ended March 31, 2016 and 2015, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. For the three months ended March 31, 2016, we did not include 3.7 million stock options and 0.9 million restricted common shares in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three months ended March 31, 2015, we did not include 5.3 million stock options and 0.7 million restricted common shares in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. |
Supplemental Financial Statem18
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Financial Statement Information [Abstract] | |
Schedule of Prepaid Expenses and Other | The components of our prepaid expenses and other current assets are as follows: Successor Company March 31, December 31, (in thousands) Cash collateral related to performance bonds $ 61,174 $ 47,450 Value-added taxes 31,468 33,467 Other prepaid assets 15,867 11,934 Other current assets 37,159 39,683 $ 145,668 $ 132,534 |
Schedule of Property, Plant and Equipment, Net | The components of our property, plant and equipment, net are as follows: Successor Company March 31, December 31, (in thousands) Land $ 2,913 $ 2,655 Building and leasehold improvements 12,955 11,765 Network equipment, communication towers and network software 551,170 492,814 Software, office equipment, furniture and fixtures and other 75,336 65,747 Less: Accumulated depreciation (98,130 ) (59,987 ) 544,244 512,994 Construction in progress 37,928 42,029 $ 582,172 $ 555,023 |
Schedule of Intangible Assets, Net | Our intangible assets include the following: Successor Company March 31, 2016 December 31, 2015 Average Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Amortizable intangible assets: Licenses 26 $ 931,659 $ (26,878 ) $ 904,781 $ 850,818 $ (16,314 ) $ 834,504 Tradename 26 38,700 (1,116 ) 37,584 38,700 (744 ) 37,956 Customer relationships 4 25,282 (4,740 ) 20,542 23,042 (2,880 ) 20,162 $ 995,641 $ (32,734 ) $ 962,907 $ 912,560 $ (19,938 ) $ 892,622 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying amount of our intangible assets as of March 31, 2016 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands): Y ears Estimated Amortization Expense 2016 $ 42,727 2017 43,642 2018 43,642 2019 40,482 2020 37,321 |
Schedule of Restricted Cash | The components of our restricted cash, almost all of which were classified as other assets in our consolidated balance sheet as of March 31, 2016 and December 31, 2015, are as follows: Successor Company March 31, December 31, (in thousands) Cash in escrow — Nextel Mexico sale $ 186,617 $ 186,593 Brazil judicial deposits 67,009 54,289 Cash in escrow — Nextel Peru sale 34,356 34,353 Short-term cash in escrow — Nextel Argentina sale 6,000 6,000 $ 293,982 $ 281,235 |
Schedule of Other Assets | The components of our other long-term assets are as follows: Successor Company March 31, December 31, (in thousands) Restricted cash $ 287,982 $ 275,235 Cash collateral related to performance bonds 99,491 94,236 Equity interest in Nextel Argentina — 108,148 Other 84,343 76,622 $ 471,816 $ 554,241 |
Schedule of Accrued Expenses and Other | The components of our accrued expenses and other are as follows: Successor Company March 31, December 31, (in thousands) Network system and information technology $ 48,472 $ 32,079 Payroll related items and commissions 34,656 31,734 Non-income based taxes 32,333 33,097 Capital expenditures 18,336 25,182 Other 140,287 146,766 $ 274,084 $ 268,858 |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information. Successor Company Predecessor Company Three Months Ended March 31, Three Months Ended March 31, 2016 2015 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest on property, plant and equipment $ 8,436 $ 45,781 Change in capital expenditures accrued and unpaid or financed, including interest capitalized (881 ) (30,863 ) $ 7,555 $ 14,918 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Major Components of Income (Loss) from Discontinued Operations | The major components of loss from discontinued operations related to Nextel Argentina and Nextel Mexico were as follows (in thousands): Successor Company Predecessor Company Three Months Ended March 31, Three Months Ended March 31, 2016 2015 Operating revenues $ — $ 400,461 Operating expenses — (459,490 ) Other expense, net — (31,845 ) Loss before income tax provision — (90,874 ) Income tax provision — (207 ) — (91,081 ) Loss on sales of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru (3,781 ) (29 ) Loss from discontinued operations, net of income taxes $ (3,781 ) $ (91,110 ) |
Impairment, Restructuring and20
Impairment, Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Total Impairment and Restructuring Charges | Total impairment, restructuring and other charges for the three months ended March 31, 2016 and 2015 were as follows (in thousands): Successor Company Predecessor Company Three Months Ended March 31, Three Months Ended March 31, 2016 2015 Brazil $ 4,265 $ 5,654 Corporate 1,650 1,642 Total impairment, restructuring and other charges $ 5,915 $ 7,296 |
Schedule of Total Accrued Restructuring Charges | As of March 31, 2016, total accrued restructuring charges were as follows (in thousands): Balance, December 31, 2015 — Successor Company $ 16,859 Restructuring charges 4,936 Cash payments (11,370 ) Balance, March 31, 2016 — Successor Company $ 10,425 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt [Abstract] | |
Summary of Debt | The components of our debt are as follows: Successor Company March 31, 2016 December 31, 2015 (in thousands) Brazil equipment financing facility $ 315,565 $ 339,850 Brazil bank loans 262,948 240,396 Brazil capital lease and tower financing obligations 92,637 84,295 Other 577 526 Total debt 671,727 665,067 Less: current portion (581,448 ) (582,420 ) $ 90,279 $ 82,647 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amounts and estimated fair values of debt | The carrying amounts and estimated fair values of our debt instruments are as follows: Successor Company March 31, 2016 December 31, 2015 Principal Amount Outstanding Carrying Amount Estimated Fair Value Principal Amount Outstanding Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 318,012 $ 315,565 $ 316,129 $ 342,475 $ 339,850 $ 340,189 Brazil bank loans and other 257,062 263,525 264,553 234,320 240,922 229,366 $ 575,074 $ 579,090 $ 580,682 $ 576,795 $ 580,772 $ 569,555 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Nextel Brazil Corporate and Eliminations Consolidated (in thousands) Three Months Ended March 31, 2016 — Successor Company Operating revenues $ 226,503 $ 54 $ 226,557 Segment earnings (losses) $ 3,760 $ (11,804 ) $ (8,044 ) Less: Impairment, restructuring and other charges (5,915 ) Depreciation and amortization (40,105 ) Foreign currency transaction gains, net 39,642 Interest expense and other, net (17,994 ) Loss from continuing operations before reorganization items and income tax provision $ (32,416 ) Capital expenditures $ 7,555 $ — $ 7,555 Three Months Ended March 31, 2015 — Predecessor Company Operating revenues $ 363,356 $ 52 $ 363,408 Segment earnings (losses) $ 3,523 $ (21,869 ) $ (18,346 ) Less: Impairment, restructuring and other charges (7,296 ) Depreciation and amortization (80,169 ) Foreign currency transaction losses, net (78,508 ) Interest expense and other, net (19,598 ) Loss from continuing operations before reorganization items and income tax provision $ (203,917 ) Capital expenditures $ 14,828 $ 90 $ 14,918 March 31, 2016 — Successor Company Identifiable assets $ 2,099,708 $ 604,152 $ 2,703,860 December 31, 2015 — Successor Company Identifiable assets $ 1,989,753 $ 740,155 $ 2,729,908 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Dec. 31, 2015USD ($)$ / shares | Mar. 31, 2016USD ($) | Sep. 11, 2015subsidiary | |
Prior Period Reclassification Adjustment | $ 6.9 | ||
Argentina | |||
Number of indirect subsidiaries who entered into binding agreement | subsidiary | 2 | ||
Brazil | |||
Brazil equipment financing facility | $ 318 | ||
Successor Company | |||
Prior Period Reclassification Adjustment | 6.9 | ||
Prior Period Reclassification Adjustment, Accumulated Other Comprehensive Loss | 0.1 | ||
Prior Period Reclassification Adjustment, Accumulated Deficit | $ 6.8 | ||
Change in Prior Period Earnings Per Share | $ / shares | $ 0.07 | ||
Brazil bank loans | 256.5 | ||
Successor Company | Brazil | |||
Brazil equipment financing facility | $ 318 |
Emergence from Chapter 11 Pro25
Emergence from Chapter 11 Proceedings and Fresh Start Accounting (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Jun. 26, 2015USD ($)$ / sharesshares | Sep. 16, 2014subsidiary | Sep. 15, 2014subsidiary | |
Fresh-Start Adjustment [Line Items] | |||||
Number of subsidiaries that filed | subsidiary | 5 | 8 | |||
Reorganization items in Chapter 11 professional fees and other costs | $ 13.6 | ||||
Senior Notes | 7.875% Senior Notes Due 2019 | |||||
Fresh-Start Adjustment [Line Items] | |||||
Senior Notes | $ 700 | ||||
Stated interest rate | 7.875% | ||||
Senior Notes | 11.375% Senior Notes Due 2019 | |||||
Fresh-Start Adjustment [Line Items] | |||||
Senior Notes | $ 900 | ||||
Stated interest rate | 11.375% | ||||
Senior Notes | 7.625% Percent Senior Notes Due 2021 | |||||
Fresh-Start Adjustment [Line Items] | |||||
Senior Notes | $ 1,450 | ||||
Stated interest rate | 7.625% | ||||
Senior Notes | 8.875% Senior Notes Due 2019 | |||||
Fresh-Start Adjustment [Line Items] | |||||
Senior Notes | $ 500 | ||||
Stated interest rate | 8.875% | ||||
Senior Notes | 10.0% Senior Notes 2016 | |||||
Fresh-Start Adjustment [Line Items] | |||||
Senior Notes | $ 800 | ||||
Stated interest rate | 10.00% | ||||
Successor | |||||
Fresh-Start Adjustment [Line Items] | |||||
Common Stock, shares authorized (shares) | shares | 140,000,000 | 140,000,000 | 140,000,000 | ||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred Stock, shares authorized (shares) | shares | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred Stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common Stock, shares issued (shares) | shares | 100,006,000 | 100,006,000 | 99,999,992 | ||
Shares issued (usd per share) | $ / shares | $ 20.68 | ||||
Cash payments to settle claims | $ 776.3 |
Supplemental Financial Statem26
Supplemental Financial Statement Information - Prepaid and Other Assets (Details) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash collateral related to performance bonds | $ 61,174 | $ 47,450 |
Value-added taxes | 31,468 | 33,467 |
Other current assets | 15,867 | 11,934 |
Other prepaid assets | 37,159 | 39,683 |
Other Assets, Current | $ 145,668 | $ 132,534 |
Supplemental Financial Statem27
Supplemental Financial Statement Information - Property, Plant and Equipment (Details) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 2,913 | $ 2,655 |
Building and leasehold improvements | 12,955 | 11,765 |
Network equipment, communication towers and network software | 551,170 | 492,814 |
Software, office equipment, furniture and fixtures and other | 75,336 | 65,747 |
Less: Accumulated depreciation | 98,130 | 59,987 |
Property, Plant and Equipment, Gross | 544,244 | 512,994 |
Construction in Progress, Gross | 37,928 | 42,029 |
Property, plant and equipment, net | $ 582,172 | $ 555,023 |
Supplemental Financial Statem28
Supplemental Financial Statement Information - Intangible Assets, Net (Details) - Successor Company - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 995,641 | $ 912,560 |
Accumulated Amortization | (32,734) | (19,938) |
Net Carrying Value | $ 962,907 | 892,622 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 931,659 | 850,818 |
Accumulated Amortization | (26,878) | (16,314) |
Net Carrying Value | $ 904,781 | 834,504 |
Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 38,700 | 38,700 |
Accumulated Amortization | (1,116) | (744) |
Net Carrying Value | $ 37,584 | 37,956 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 4 years | |
Gross Carrying Value | $ 25,282 | 23,042 |
Accumulated Amortization | (4,740) | (2,880) |
Net Carrying Value | $ 20,542 | $ 20,162 |
Supplemental Financial Statem29
Supplemental Financial Statement Information - Future Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 42,727 |
2,017 | 43,642 |
2,018 | 43,642 |
2,019 | 40,482 |
2,020 | $ 37,321 |
Supplemental Financial Statem30
Supplemental Financial Statement Information - Restricted Cash (Details) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow Deposit | $ 6,000 | |
Deposit Assets | $ 67,009 | 54,289 |
Restricted Cash and Cash Equivalents | 293,982 | 281,235 |
Nextel Mexico | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow Deposit | 186,617 | 186,593 |
Nextel Peru | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow Deposit | 34,356 | $ 34,353 |
Argentina | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow Deposit | $ 6,000 |
Supplemental Financial Statem31
Supplemental Financial Statement Information - Other Assets (Details) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Restricted cash | $ 287,982 | $ 275,235 |
Cash collateral related to performance bonds | 99,491 | 94,236 |
Equity interest in Nextel Argentina | 0 | 108,148 |
Other | 84,343 | 76,622 |
Other assets | $ 471,816 | $ 554,241 |
Supplemental Financial Statem32
Supplemental Financial Statement Information - Accrued Expenses and Other (Details) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities [Line Items] | ||
Network system and information technology | $ 48,472 | $ 32,079 |
Payroll related items and commissions | 34,656 | 31,734 |
Non-income based taxes | 32,333 | 33,097 |
Capital expenditures | 18,336 | 25,182 |
Other | 140,287 | 146,766 |
Accrued expenses and other | $ 274,084 | $ 268,858 |
Supplemental Financial Statem33
Supplemental Financial Statement Information - Supplemental Cash Flow Disclosures (Details) - Successor Company - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash paid for capital expenditures, including capitalized interest on property, plant and equipment | $ 8,436 | $ 45,781 |
Capital Expenditures Incurred but Not yet Paid | (881) | (30,863) |
Capital Expenditures Plus Accrued Unpaid Including Accreted Interest Capitalized | $ 7,555 | $ 14,918 |
Supplemental Financial Statem34
Supplemental Financial Statement Information - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Revenue Based Taxes And Other Excise Taxes | $ 13.7 | $ 17.8 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.7 | 5.3 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 0.7 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands | Sep. 11, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 31, 2015USD ($) | Mar. 31, 2016USD ($)claim | Mar. 31, 2015USD ($) | Jan. 27, 2016 |
Successor | Nextel Peru and Nextel Chile | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Operating revenues | $ 0 | |||||
Operating expenses | 0 | |||||
Other expense, net | 0 | |||||
Loss before income tax provision | 0 | |||||
Income tax (provision) benefit | 0 | |||||
Income (loss) from discontinued operation, before tax | 0 | |||||
Loss on sales of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru | (3,781) | |||||
Income (loss) from discontinued operations, net of income taxes | $ (3,781) | |||||
Predecessor | Nextel Peru and Nextel Chile | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Operating revenues | $ 400,461 | |||||
Operating expenses | (459,490) | |||||
Other expense, net | (31,845) | |||||
Loss before income tax provision | (90,874) | |||||
Income tax (provision) benefit | (207) | |||||
Income (loss) from discontinued operation, before tax | (91,081) | |||||
Loss on sales of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru | (29) | |||||
Income (loss) from discontinued operations, net of income taxes | $ (91,110) | |||||
Argentina | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale Price of Business Segment | $ 178,000 | |||||
Cash Paid Upon Transfer of Equity | $ 159,000 | |||||
Transfer of Equity Interest | 49.00% | |||||
Remaining Held Equity Interest | 51.00% | 51.00% | ||||
Proceeds From Sale of Business Segment Placed Into Escrow | $ 6,000 | |||||
Argentina | Successor | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale Price of Business Segment | $ 178,000 | |||||
Mexico | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale Price of Business Segment | $ 1,875,000 | |||||
Proceeds From Sale of Business Segment Placed Into Escrow | 187,500 | |||||
Proceeds from Divestiture of Businesses | $ 1,448,000 | |||||
Number of indemnification claims | claim | 1 | |||||
Potential Claims Related to Sale of Nextel Mexico | $ 6,500 | |||||
PERU | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Potential Claims Against Escrow | $ 34,400 |
Impairment, Restructuring and36
Impairment, Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Brazil | ||
Impairment of Long-Lived Assets [Line Items] | ||
Asset impairment charges | $ 3.7 | |
Restructuring charges | 3.2 | |
Corporate | ||
Impairment of Long-Lived Assets [Line Items] | ||
Restructuring charges | $ 1.3 | $ 2 |
Impairment, Restructuring and37
Impairment, Restructuring and Other Charges - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Brazil | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 3,200 | |
Corporate | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 1,300 | $ 2,000 |
Successor | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment and restructuring charges | 5,915 | |
Restructuring Reserve [Roll Forward] | ||
Accrued Restructuring Charges | 16,859 | |
Restructuring charges | 4,936 | |
Cash payments | (11,370) | |
Accrued Restructuring Charges | 10,425 | |
Successor | Brazil | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment and restructuring charges | 4,265 | |
Successor | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment and restructuring charges | $ 1,650 | |
Predecessor | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment and restructuring charges | 7,296 | |
Predecessor | Brazil | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment and restructuring charges | 5,654 | |
Predecessor | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment and restructuring charges | $ 1,642 |
Debt (Details)
Debt (Details) - Successor Company - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Brazil bank loans | $ 262,948 | $ 240,396 |
Other | 577 | 526 |
Total debt | 671,727 | 665,067 |
Less: current portion | (581,448) | (582,420) |
Total debt, excluding current portion | 90,279 | 82,647 |
Nextel Brazil | ||
Debt Instrument [Line Items] | ||
Brazil equipment financing facility | 315,565 | 339,850 |
Brazil capital lease and tower financing obligations | $ 92,637 | $ 84,295 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016USD ($) |
Brazil | ||||
Loans Payable to Bank, Current | $ 256.5 | |||
Brazil equipment financing facility | $ 318 | |||
Forecast | ||||
Net Debt To Earnings Ratio - Minimum | 2.5 | 3.5 | 4 |
Fair Value Measurements - Nexte
Fair Value Measurements - Nextel Argentina Sale (Details) - Argentina - USD ($) $ in Millions | Sep. 11, 2015 | Jan. 27, 2016 | Dec. 31, 2015 |
Remaining Held Equity Interest | 51.00% | 51.00% | |
Sale Price of Business Segment | $ 178 | ||
Successor Company | |||
Notes Issued | 85 | ||
Equity Method Investments, Fair Value Disclosure | $ 108.1 | ||
Sale Price of Business Segment | $ 178 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Held-to-maturity Securities | $ 18 | |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ (9.9) | |
Brazil | ||
Short-term investments | 23.7 | 56.2 |
Certificates of Deposit, at Carrying Value | $ 10.5 | 9.3 |
NIIT | ||
Held-to-maturity Securities | $ 18.1 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Long-Term Debt Instrument (Details) - Successor - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Principal Amount Outstanding | $ 575,074 | $ 576,795 |
Carrying Amount | 579,090 | 580,772 |
Estimated Fair Value | 580,682 | 569,555 |
Brazil equipment financing | ||
Principal Amount Outstanding | 318,012 | 342,475 |
Carrying Amount | 315,565 | 339,850 |
Estimated Fair Value | 316,129 | 340,189 |
Brazil bank loans and other | ||
Principal Amount Outstanding | 257,062 | 234,320 |
Carrying Amount | 263,525 | 240,922 |
Estimated Fair Value | $ 264,553 | $ 229,366 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) BRL in Millions, $ in Millions | Mar. 31, 2016USD ($) | Dec. 31, 2015BRL | Dec. 31, 2015USD ($) |
Handset Purchase Commitment | $ 171.6 | ||
Acquisition Price Commitment of License Award Date | 10.00% | 10.00% | |
Loss Contingency, Estimate of Possible Loss | 305 | ||
Indemnification Claims, Not Deemed Possible | 41 | ||
Nextel Brazil | |||
Accrued Liabilities | 58.5 | $ 57.7 | |
Unasserted Claims | $ 4.6 | 5.4 | |
Brazil | |||
Spectrum Purchase Price | BRL 455 | $ 116.7 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Predecessor Company | |||
Operating revenues | $ 363,408 | ||
Segment earnings (losses) | (18,346) | ||
Less: | |||
Impairment, restructuring and other charges | (7,296) | ||
Depreciation and amortization | (80,169) | ||
Foreign currency transaction gains (losses), net | (78,508) | ||
Interest expense and other, net | (19,598) | ||
Loss from continuing operations before reorganization items and income tax provision | (203,917) | ||
Capital expenditures | 14,918 | ||
Predecessor Company | Nextel Brazil | |||
Operating revenues | 363,356 | ||
Segment earnings (losses) | 3,523 | ||
Less: | |||
Capital expenditures | 14,828 | ||
Predecessor Company | Corporate and Eliminations | |||
Operating revenues | 52 | ||
Segment earnings (losses) | (21,869) | ||
Less: | |||
Capital expenditures | 90 | ||
Successor Company | |||
Operating revenues | $ 226,557 | ||
Segment earnings (losses) | (8,044) | ||
Less: | |||
Impairment, restructuring and other charges | (5,915) | ||
Depreciation and amortization | (40,105) | ||
Foreign currency transaction gains (losses), net | 39,642 | ||
Interest expense and other, net | (17,994) | ||
Loss from continuing operations before reorganization items and income tax provision | (32,416) | ||
Capital expenditures | 7,555 | $ 14,918 | |
Identifiable assets | 2,703,860 | $ 2,729,908 | |
Successor Company | Nextel Brazil | |||
Operating revenues | 226,503 | ||
Segment earnings (losses) | 3,760 | ||
Less: | |||
Capital expenditures | 7,555 | ||
Identifiable assets | 2,099,708 | 1,989,753 | |
Successor Company | Corporate and Eliminations | |||
Operating revenues | 54 | ||
Segment earnings (losses) | (11,804) | ||
Less: | |||
Capital expenditures | 0 | ||
Identifiable assets | $ 604,152 | $ 740,155 |