Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALSK | ||
Entity Registrant Name | ALASKA COMMUNICATIONS SYSTEMS GROUP INC | ||
Entity Central Index Key | 1,089,511 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 50,612,014 | ||
Entity Public Float | $ 116 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 36,001 | $ 31,709 |
Restricted cash | 1,824 | 467 |
Accounts receivable, non-affiliates, net | 25,225 | 30,900 |
Materials and supplies | 4,674 | 4,321 |
Prepayments and other current assets | 8,068 | 6,575 |
Current assets held-for-sale | 9,565 | |
Total current assets | 75,792 | 83,537 |
Property, plant and equipment | 1,337,098 | 1,333,134 |
Less: accumulated depreciation and amortization | (967,776) | (976,401) |
Property, plant and equipment, net | 369,322 | 356,733 |
Deferred income taxes | 16,660 | 22,978 |
Equity method investments | 0 | 252,067 |
Non-current assets held-for-sale | 14,664 | |
Other assets | 1,827 | 301 |
Total assets | 463,601 | 730,280 |
Current liabilities: | ||
Current portion of long-term obligations | 3,671 | 15,521 |
Accounts payable, accrued and other current liabilities, non-affiliates | 51,275 | 54,373 |
Accounts payable, accrued and other current liabilities, affiliates, net | 4,853 | |
Advance billings and customer deposits | 4,513 | 4,490 |
Current liabilities held-for-sale | 18,728 | |
Total current liabilities | 59,459 | 97,965 |
Long-term obligations, net of current portion | 185,018 | 413,978 |
Other long-term liabilities | 65,265 | 24,370 |
Non-current liabilities held-for-sale | 2,107 | |
Deferred AWN capacity revenue, net of current portion | 56,734 | |
Total liabilities | $ 309,742 | $ 595,154 |
Commitments and contingencies | ||
Alaska Communications stockholders' equity: | ||
Common stock, $0.01 par value; 145,000 authorized; 50,530 and 49,660 issued and outstanding at December 31, 2015 and 2014, respectively | $ 505 | $ 497 |
Additional paid in capital | 156,971 | 154,368 |
Accumulated deficit | (1,634) | (14,588) |
Accumulated other comprehensive loss | (3,086) | (5,151) |
Total Alaska Communications stockholders' equity | 152,756 | 135,126 |
Noncontrolling interest | 1,103 | |
Total stockholders' equity | 153,859 | 135,126 |
Total liabilities and stockholders' equity | $ 463,601 | $ 730,280 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, shares issued | 50,530,000 | 49,660,000 |
Common stock, shares outstanding | 50,530,000 | 49,660,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating revenues: | |||
Operating revenues, non-affiliates | $ 232,242 | $ 307,917 | $ 345,611 |
Operating revenues, affiliates | 575 | 6,946 | 3,313 |
Total operating revenues | 232,817 | 314,863 | 348,924 |
Operating expenses: | |||
Cost of services and sales, non-affiliates | 107,162 | 123,854 | 138,124 |
Cost of services and sales, affiliates | 4,961 | 57,116 | 25,158 |
Selling, general and administrative | 88,389 | 101,398 | 111,034 |
Depreciation and amortization | 33,867 | 32,583 | 42,191 |
(Gain) loss on disposal of assets, net | (46,252) | 126 | (207,755) |
Loss on impairment of goodwill | 5,986 | ||
Loss on impairment of equity investment | 1,267 | ||
Earnings from equity method investments | (3,056) | (35,960) | (18,056) |
Total operating expenses | 185,071 | 285,103 | 91,963 |
Operating income | 47,746 | 29,760 | 256,961 |
Other income and (expense): | |||
Interest expense | (19,841) | (34,410) | (40,497) |
Loss on extinguishment of debt | (4,878) | (1,663) | |
Interest income | 58 | 83 | 53 |
Other | (13) | ||
Total other income and (expense) | (24,661) | (34,327) | (42,120) |
Income (loss) before income tax (expense) benefit | 23,085 | (4,567) | 214,841 |
Income tax (expense) benefit | (10,200) | 1,787 | (56,370) |
Net income (loss) | 12,885 | (2,780) | 158,471 |
Less net loss attributable to noncontrolling interest | (69) | ||
Net income (loss) attributable to Alaska Communications | 12,954 | (2,780) | 158,471 |
Other comprehensive income (loss): | |||
Minimum pension liability adjustment | (7) | (2,829) | 1,412 |
Income tax effect | 3 | 1,162 | (580) |
Amortization of defined benefit plan loss | 936 | 451 | 717 |
Income tax effect | (382) | (185) | (296) |
Interest rate swap marked to fair value | 600 | 1,543 | 1,728 |
Income tax effect | (245) | (634) | (709) |
Reclassification of loss on ineffective hedge | 1,970 | 1,613 | 2,307 |
Income tax effect | (810) | (663) | (949) |
Total other comprehensive income | 2,065 | 458 | 3,630 |
Total comprehensive income (loss) attributable to Alaska Communications | 15,019 | (2,322) | 162,101 |
Net loss attributable to noncontrolling interest | (69) | ||
Total other comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 |
Total comprehensive loss attributable to noncontrolling interest | (69) | ||
Total comprehensive income (loss) | $ 14,950 | $ (2,322) | $ 162,101 |
Net income (loss) per share attributable to Alaska Communications: | |||
Basic | $ 0.26 | $ (0.06) | $ 3.37 |
Diluted | $ 0.25 | $ (0.06) | $ 2.78 |
Weighted average shares outstanding: | |||
Basic | 50,247 | 49,334 | 47,092 |
Diluted | 51,368 | 49,334 | 59,107 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2012 | $ (34,683) | $ 458 | $ 144,377 | $ (170,279) | $ (9,239) | |
Beginning Balance, Shares at Dec. 31, 2012 | 45,765 | |||||
Total comprehensive (loss) income | 162,101 | 158,471 | 3,630 | |||
Stock compensation | 2,860 | 2,860 | ||||
Tax benefit of convertible note call options | 16 | 16 | ||||
Surrender of shares to cover minimum withholding taxes on stock-based compensation | (638) | (638) | ||||
Issuance of common stock, pursuant to stock plans, $.01 par | 5,607 | $ 29 | 5,578 | |||
Issuance of common stock, pursuant to stock plans, $.01 par, Shares | 2,915 | |||||
Ending Balance at Dec. 31, 2013 | 135,263 | $ 487 | 152,193 | (11,808) | (5,609) | |
Ending Balance, Shares at Dec. 31, 2013 | 48,680 | |||||
Total comprehensive (loss) income | (2,322) | (2,780) | 458 | |||
Stock compensation | 2,511 | 2,511 | ||||
Surrender of shares to cover minimum withholding taxes on stock-based compensation | (593) | (593) | ||||
Issuance of common stock, pursuant to stock plans, $.01 par | 267 | $ 10 | 257 | |||
Issuance of common stock, pursuant to stock plans, $.01 par, Shares | 980 | |||||
Ending Balance at Dec. 31, 2014 | 135,126 | $ 497 | 154,368 | (14,588) | (5,151) | |
Ending Balance, Shares at Dec. 31, 2014 | 49,660 | |||||
Total comprehensive (loss) income | 14,950 | 12,954 | 2,065 | $ (69) | ||
Stock compensation | 2,008 | 2,008 | ||||
Excess tax benefit from share-based payments | 733 | 733 | ||||
Surrender of shares to cover minimum withholding taxes on stock-based compensation | (408) | (408) | ||||
Issuance of common stock, pursuant to stock plans, $.01 par | 278 | $ 8 | 270 | |||
Issuance of common stock, pursuant to stock plans, $.01 par, Shares | 870 | |||||
Contributions from noncontrolling interest | 1,172 | 1,172 | ||||
Ending Balance at Dec. 31, 2015 | $ 153,859 | $ 505 | $ 156,971 | $ (1,634) | $ (3,086) | $ 1,103 |
Ending Balance, Shares at Dec. 31, 2015 | 50,530 |
Consolidated Statement of Stoc6
Consolidated Statement of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 12,885 | $ (2,780) | $ 158,471 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 33,867 | 32,583 | 42,191 |
Gain on wireless sale | (48,232) | ||
Gain on sale/contribution of assets to AWN | (210,873) | ||
Loss on the disposal of assets | 1,980 | 126 | 3,118 |
Loss on impairment of goodwill | 5,986 | ||
Loss on impairment of equity investment | 1,267 | ||
Gain on ineffective hedge adjustment | (737) | (273) | (785) |
Amortization of debt issuance costs and debt discount | 4,114 | 5,104 | 5,293 |
Amortization of ineffective hedge | 1,970 | 1,613 | 2,307 |
Loss on extinguishment of debt | 4,878 | 1,663 | |
Amortization of deferred capacity revenue | (2,859) | (3,795) | (1,512) |
Stock-based compensation | 2,008 | 2,511 | 2,860 |
Deferred income tax expense (benefit) | 4,883 | (2,047) | 56,370 |
Provision for uncollectible accounts | 1,258 | 3,329 | 1,847 |
Cash distribution from equity method investments | 3,056 | 35,960 | 17,844 |
Earnings from equity method investments | (3,056) | (35,960) | (18,056) |
Other non-cash expense, net | 934 | 431 | 283 |
Changes in operating assets and liabilities | (4,368) | 8,381 | 5,419 |
Net cash provided by operating activities | 12,581 | 51,169 | 67,707 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (50,914) | (46,423) | (47,738) |
Capitalized interest | (1,558) | (2,810) | (1,926) |
Change in unsettled capital expenditures | 3,995 | (2,003) | 1,492 |
Cash received in the acquisition of a business | 68 | ||
Proceeds on wireless sale | 285,160 | ||
Proceeds on sale of assets | 3,140 | 136 | 4,747 |
Proceeds on sale/contribution of assets to AWN | 100,000 | ||
Return of capital from equity investment | 1,875 | 14,073 | |
Change in unsettled acquisition costs | (3,345) | ||
Net change in short-term investments | 2,037 | ||
Net change in restricted cash | (1,357) | 3,408 | |
Net cash provided (used) by investing activities | 240,341 | (36,959) | 58,675 |
Cash Flows from Financing Activities: | |||
Repayments of long-term debt | (333,961) | (24,419) | (99,565) |
Proceeds from the issuance of long-term debt | 90,061 | ||
Debt issuance costs | (4,901) | (206) | |
Cash paid for debt extinguishment | (391) | ||
Cash paid in acquisition of business | (291) | (795) | |
Cash proceeds from noncontrolling interest | 250 | ||
Payment of withholding taxes on stock-based compensation | (408) | (593) | (638) |
Excess tax benefit from share-based payments | 733 | ||
Proceeds from the issuance of common stock | 278 | 267 | 227 |
Net cash used by financing activities | (248,630) | (25,540) | (100,182) |
Change in cash and cash equivalents | 4,292 | (11,330) | 26,200 |
Cash and cash equivalents, beginning of period | 31,709 | 43,039 | 16,839 |
Cash and cash equivalents, end of period | 36,001 | 31,709 | 43,039 |
Supplemental Cash Flow Data: | |||
Interest paid | 16,101 | 31,562 | 35,187 |
Cash paid on extinguishment of hedging instrument | 4,073 | ||
Income taxes paid, net | $ 4,936 | $ 260 | $ 6 |
Description of Company and Summ
Description of Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Company and Summary of Significant Accounting Policies | 1. DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Alaska Communications Systems Group, Inc. (“we”, “our”, “us”, the “Company”, or “Alaska Communications”), a Delaware corporation, through its operating subsidiaries, provides integrated communication services to business, wholesale and consumer customers in the state of Alaska and beyond using its statewide and interstate telecommunications network. The accompanying consolidated financial statements are as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013. They represent the consolidated financial position, results of operations and cash flows of Alaska Communications and the following wholly-owned subsidiaries: • Alaska Communications Systems Holdings, Inc. (“ACS Holdings”) • ACS of Alaska, LLC (“ACSAK”) • ACS of the Northland, LLC (“ACSN”) • ACS of Fairbanks, LLC (“ACSF”) • ACS of Anchorage, LLC (“ACSA”) • ACS Wireless, Inc. (“ACSW”) • ACS Long Distance, LLC (“ACSLD”) • ACS Internet, LLC (“ACSI”) • ACS Messaging, Inc. (“ACSM”) • ACS Cable Systems, LLC (“ACSC”) • Crest Communications Corporation (“Crest”) • WCI Cable, Inc. • WCIC Hillsboro, LLC • Alaska Northstar Communications, LLC • WCI Lightpoint, LLC • Worldnet Communications, Inc. • Alaska Fiber Star, LLC • TekMate, LLC (“TekMate”) In addition to the wholly-owned subsidiaries, the Company has a fifty percent interest in ACS-Quintillion JV, LLC, a joint venture formed by its wholly-owned subsidiary ACS Cable Systems, LLC and Quintillion Holdings, LLC (“QHL”) in connection with the North Slope fiber optic network transactions. See Note 3 “ Joint Venture Sale of Wireless Operations” A summary of significant accounting policies followed by the Company is set forth below. Basis of Presentation The consolidated financial statements and footnotes include all accounts and subsidiaries of the Company in which it maintains a controlling financial interest. Intercompany accounts and transactions have been eliminated. Investments in entities where the Company is able to exercise significant influence, but not control, are accounted for by the equity method. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within either the Company’s investment account or the account balance to which the transaction specifically relates (e.g., construction of fixed assets). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by the Company. The Company has consolidated the financial results of the joint venture with QHL based on its determination that, for accounting purposes, it holds a controlling financial interest in the joint venture and is the primary beneficiary of this variable interest entity. The Company has accounted for and reported QHL’s 50% ownership interest in the joint venture as a noncontrolling interest. See Note 3 “ Joint Venture Use of Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among the significant estimates affecting the financial statements are those related to the realizable value of accounts receivable, assets held-for-sale, and long-lived assets, the value of derivative instruments, deferred capacity revenue, legal contingencies, stock-based compensation and income taxes. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes is reasonable under the circumstances. Assumptions are adjusted as facts and circumstances dictate. More volatile capital markets, uncertainty on interest rates, and declines in crude oil pricing have combined to increase the uncertainty in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results may differ significantly from those estimates. Changes in those estimates will be reflected in the financial statements of future periods. Cash and Cash Equivalents For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, the Company generally considers all highly liquid investments with a maturity at acquisition of three months or less to be cash equivalents. Restricted Cash Restricted cash as of December 31, 2015 consists of $1,824 held in certificates of deposits as required under the terms of certain contracts to which the Company is a party. When the restrictions are lifted, the Company will transfer these funds into its operating accounts. Trade Accounts Receivable and Bad Debt Reserves Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company does not have any off-balance sheet credit exposure related to its customers. The Company evaluates its bad debt as a single portfolio since most of its subsidiaries primarily operate within Alaska and are subject to the same economic and risk conditions across industry segments and geographic locations. Bad debt reserves against uncollectible receivables are established and incurred during the period. These estimates are derived through an analysis of account aging profiles and a review of historical recovery experience. Receivables are charged off against the allowance when management confirms it is probable amounts will not be collected. Subsequent recoveries, if any, are credited to the allowance. The Company records bad debt expense as a component of “Selling, general and administrative expense” in the Consolidated Statements of Comprehensive Income (Loss). Materials and Supplies Materials and supplies are carried in inventory at the lower of moving average cost or market. Cash flows related to the sale of inventory are included in operating activities in the Company’s Consolidated Statements of Cash Flows. Assets and Liabilities Held-for-Sale Assets and liabilities held-for-sale represented the assets and liabilities that were sold in connection with the Company’s sale of its wireless operations. At December 31, 2014, these assets and liabilities were recorded at the lower of carrying value or net realizable value which approximated the consideration expected to be received from the sale of those assets and liabilities. Impairment, if applicable, on property, plant and equipment classified as held-for-sale was recorded to reduce the carrying value to its fair value less cost to sell. Depreciation expense on the property, plant and equipment and capital leases identified as held-for-sale was discontinued on December 4, 2014, with the exception of certain buildings accounted for as capital leases which were in use beyond that date. Exit Obligations In connection with the decision to sell its wireless operations, the Company incurred certain costs associated with the wind-down of its retail wireless operations that met the criteria for reporting as exit obligations. These costs were incurred in the fourth quarter of 2014 through 2015. The accounting policies for these costs were as follows: • Employee termination costs associated with reductions in retail stores, contact center, and other support organizations, and termination costs associated with synergies and future cost reductions resulting from the Company becoming a more focused broadband and managed IT services company were accrued equal to the payout amount, undiscounted due to the short duration, and amortized over the remaining required service period. These termination benefits included costs accounted for under both Accounting Standards Codification (“ASC”) 420, “Exit or Disposal Costs Obligations (“ASC 420”) and ASC 712, “Compensation – Nonretirement Postemployment Benefits” (“ASC 712”). • Contract termination costs were accrued for retail store leases and a software contract where we incurred a charge to terminate the contract prior to their stated maturity. These costs were measured equal to the actual cost to terminate the contract and were recognized at the date the contract was terminated. • For retail store leases that were vacated, the costs were measured equal to the fair value of the remaining lease payments and recognized when the Company had ceased to use the property. • Costs associated with marking wireless handset and accessory inventory held for sale to fair value were expensed in the fourth quarter of 2014 and are included in “Cost of service and sales, non-affiliate” in the Company’s Consolidated Statement of Comprehensive Income (Loss). • Other associated costs that met the criteria of an exit activity were accrued when incurred. Property, Plant and Equipment Telephone property, plant and equipment are stated at historical cost of construction including certain capitalized overhead and interest charges. Renewals and betterments of telephone plant are capitalized, while repairs and renewals of minor items are charged to cost of services and sales as incurred. The Company uses a group composite depreciation method in accordance with industry practice. Under this method, telephone plant, with the exception of land and capital leases, retired in the ordinary course of business, less salvage, is charged to accumulated depreciation with no gain or loss recognized. Non-telephone plant is stated at historical cost including certain capitalized overhead and interest charges, and when sold or retired, a gain or loss is recognized. Depreciation of property is provided on the straight-line method over estimated service lives ranging from 3 to 50 years. The Company is the lessee of equipment and buildings under capital leases expiring in various years through 2034. The assets and liabilities under capital leases are initially recorded at the lower of the present value of the minimum lease payments or the fair value of the assets at the inception of the lease. The assets are amortized over the shorter of their related lease terms or the estimated productive lives. Amortization of assets under capital leases is included in depreciation and amortization expense. The Company is also the lessee of various land, building and personal property under operating lease agreements for which expense is recognized on a monthly basis. Increases in rental rates are recorded as incurred which approximates the straight-line method. The Company capitalizes interest charges associated with construction in progress based on a weighted average interest cost calculated on the Company’s outstanding debt. Asset Retirement Obligations The Company records liabilities for obligations related to the retirement and removal of long-lived assets, consisting primarily of batteries. The Company records, as liabilities, the estimated fair value of asset retirement obligations on a discounted cash flow basis when incurred, which is typically at the time the asset is installed or acquired. The obligations are conditional on the occurrence of future events. Uncertainty about the timing or settlement of the obligation is factored into the measurement of the liability. Amounts recorded for the related assets are increased by the amount of these obligations. Over time, the liabilities increase due to the change in their present value, the potential changes in assumptions or inputs, and the initial capitalized assets decline as they are depreciated over the useful life of the related assets. The liabilities are eventually extinguished when the asset is taken out of service. Indefeasible Rights of Use Indefeasible rights of use (“IRU”) consist of agreements between the Company and a third party whereby one party grants access to a portion of its fiber network to the other party, or receives access to a portion of the fiber network of the other party. The access may consist of individually specified fibers or a specified number of fibers on the network. Certain of the Company’s IRU agreements consist of like kind exchanges for which the value of the access given up is determined to be equal to the value received. Cash may or may not be exchanged depending on the terms of the agreement. For IRU agreements in which an equal amount of cash is received and paid and the transaction is determined to not have commercial substance, revenue and expense is not recognized in connection with the cash exchanged. For IRU agreements that are not like kind exchanges and for which the Company receives or pays cash, revenue and expense are recognized over the term of the agreement. Non-operating Assets The Company periodically evaluates the fair value of its non-current investments and other non-operating assets against their carrying value whenever market conditions indicate a change in that fair value. Any changes relating to declines in the fair value of non-operating assets are charged to non-operating expense under the caption “ Other Variable Interest Entities The Company’s ownership interest in ACS-Quintillion JV, LLC is a variable interest entity as defined in ASC 810, “Consolidation.” The Company consolidated the financial results of this entity based on its determination that, for accounting purposes, it holds a controlling financial interest in, and is the primary beneficiary of, the entity. The Company has accounted for and reported the interest of this entity’s other owner as a noncontrolling interest. Note 3 “ Joint Venture Equity Method of Accounting Investments in entities where the Company is able to exercise significant influence, but not control, are accounted for by the equity method. Under this method, our equity investments are carried at acquisition cost, increased by the Company’s proportionate share of the investee’s comprehensive income, and decreased by the investee’s comprehensive losses up to our proportional ownership interest and cash distributions. The Company evaluates its investments in equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. At December 31, 2015, the Company had no equity method investments. Deferred Capacity Revenue Deferred capacity liabilities are established for usage rights on the Company’s network provided to third parties. These liabilities are established at fair value and amortized to revenue on a straight line basis over the contractual life of the relevant contract. These liabilities included certain network usage rights necessary for AWN to operate the Alaska network that were eliminated in connection with the Company’s sale of its wireless operations. A new deferred capacity revenue liability for future services to be provided to GCI was established and will be amortized over the contract life of up to 30 years. Goodwill Goodwill is assessed for impairment annually, or more frequently if events or changes in circumstances indicate potential impairment. The Company may first assess qualitative factors to determine whether it is more-likely-than-not that the carrying value of its single reporting unit exceeds its fair value. If this assessment indicates that it is more-likely-than-not that the carrying value of the reporting unit exceeds its fair value, a two-step quantitative assessment will be completed. The first step consists of comparing the carrying value of the reporting unit with its estimated fair value. The Company determines the estimated fair value of its reporting unit utilizing a discounted cash flow valuation technique. Significant estimates used in the valuation include estimates of future cash flows, both future short-term and long-term growth rates and the estimated cost of capital for purposes of determining a discount factor. If the carrying value of the reporting unit exceeds its estimated fair value, the Company will determine the implied fair value of its goodwill and an impairment loss will be recognized to the extent the carrying value of goodwill exceeds the implied fair value. The carrying value of the Company’s goodwill, net of accumulated impairment, was zero at December 31, 2015. Long-lived Asset Impairment Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company will compare undiscounted cash flows expected to be generated by that asset to its carrying amount. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals. Impairment is displayed in the caption “Operating expenses” in the Company’s Consolidated Statements of Comprehensive Income (Loss). Debt Issuance Costs and Discounts Debt issuance costs are capitalized and amortized to interest expense using the effective interest method over the term of the related instruments. Debt discounts are accreted to interest expense using the effective interest method. Debt issuance costs and debt discounts are presented as a direct deduction from the carrying amount of debt on the Company’s Consolidated Balance Sheet. Preferred Stock The Company has 5,000 shares of $0.01 par value preferred stock authorized, none of which were issued or outstanding at December 31, 2015 and 2014. Revenue Recognition Substantially all recurring non-usage sensitive service revenues are billed one month in advance and are deferred until earned. Non-recurring and usage sensitive revenues are billed in arrears and are recognized when earned. Revenue is recognized on the sale of equipment when the equipment is installed. Certain of the Company’s bundled products and services have been determined to be revenue arrangements with multiple deliverables. Total consideration received in these arrangements is allocated and measured using units of accounting within the arrangement based on relative fair values. Prior to February 2, 2015, wireless offerings included wireless devices and service contracts sold together in the Company’s stores and agent locations. The revenue for the device and accessories associated with these direct and indirect sales channels were recognized at the time the related wireless device was sold and was classified as equipment sales. Monthly service revenue from the majority of the Company’s customer base is recognized as services are rendered. Revenue earned from the Company’s wireless Lifeline customer base was less certain and was therefore recognized on the cash basis as payments were received. Concentrations of Risk Cash is maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits and the Company enters into arrangements to collateralize these amounts with securities of the underlying financial institutions. Generally, these deposits may be redeemed upon demand. The Company has not experienced any losses on such deposits. The Company also depends on a limited number of suppliers and vendors for equipment and services for its network. The Company’s subscriber base and operating results could be adversely affected if these suppliers experience financial or credit difficulties, service interruptions, or other problems. As of December 31, 2015, approximately 56% of the Company’s employees are represented by the International Brotherhood of Electrical Workers, Local 1547 (“IBEW”). The Master Collective Bargaining Agreement (“CBA”) between the Company and the IBEW expires on December 31, 2016. The CBA provides the terms and conditions of employment for all IBEW represented employees working for the Company in the state of Alaska and has significant economic impacts on the Company as it relates to wage and benefit costs and work rules that affect our ability to provide superior service to our customers. The Company considered relations with the IBEW to be stable in 2015; however any deterioration in the relationship with the IBEW would have a negative impact on the Company’s operations. The Company provides voice, broadband and managed IT services to its customers throughout Alaska. Accordingly, the Company’s financial performance is directly influenced by the competitive environment in Alaska, and by economic factors specifically in Alaska. The most significant economic factor is the level of Alaskan oil production and the per barrel price of relevant crude oil. A significant majority of the state’s unrestricted revenue comes from taxes assessed upon the production of this resource, and the price of crude oil impacts the level of investment by resource development companies. The recent drop in crude oil prices is resulting in the State of Alaska reducing its spending, which is expected to have a dampening impact on the overall state economy. Other important factors influencing the Alaskan economy include the level of tourism, government spending, and the movement of United States military personnel. Any deterioration in these factors, particularly over a sustained period of time, would likely have a negative impact on the Company’s performance. As an entity that relies on the Federal Communications Commission (“FCC”) and state regulatory agencies to provide stable funding sources to provide services in high cost areas, the Company is also impacted by any changes in regulations or future funding mechanisms that are being established by these regulatory agencies. In 2015, 9.0% of the Company’s total service and other revenues were derived from high cost support. Funding mechanisms for high cost loop support are undergoing substantial changes with the FCC that will impact our level of funding as well as future obligations we must meet as a condition to that funding. Additionally, the Company considers the vulnerabilities of its network and IT systems to various cyber threats. While the Company has implemented several mitigating policies, technological safeguards and some insurance coverage, it is not possible to prevent every possible threat to its network and IT systems from deliberate cyber related attacks. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense totaled $4,065, $4,741 and $5,918 in 2015, 2014 and 2013, respectively and is included in “Selling, general and administrative expense” in the Company’s Consolidated Statements of Comprehensive Income (Loss). Income Taxes The Company utilizes the asset-liability method of accounting for income taxes. Under the asset-liability method, deferred taxes reflect the temporary differences between the financial and tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that management believes it is more-likely-than-not that such deferred tax assets will not be realized. The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. The Company records interest and penalties for underpayment of income taxes as income tax expense. Taxes Collected from Customers and Remitted to Government Authorities The Company excludes taxes collected from customers and payable to government authorities from revenue. Taxes payable to government authorities are presented as a liability on the Consolidated Balance Sheets. Regulatory Accounting and Regulation Certain activities of the Company are subject to rate regulation by the FCC for interstate telecommunication service and the Regulatory Commission of Alaska (“RCA”) for intrastate and local exchange telecommunication service. The Company, as required by the FCC, accounts for such activity separately. Long distance services of the Company are subject to regulation as a non-dominant interexchange carrier by the FCC for interstate telecommunication services and the RCA for intrastate telecommunication services. Wireless, Internet and other non-common carrier services are not subject to rate regulation. Derivative Financial Instruments The Company does not enter into derivative contracts for speculative purposes. The Company recognizes all asset or liability derivatives at fair value. The accounting for changes in fair value is contingent on the intended use of the derivative and its designation as a hedge. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in fair value either offset the change in fair value of the hedged assets, liabilities or firm commitments through earnings, or are recognized in “Other comprehensive income (loss)” until the hedged transaction is recognized in earnings. On the date a derivative contract is entered into, the Company designates the derivative as either a fair value or cash flow hedge. The Company formally assesses, both at the hedge’s inception and on an on-going basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of hedged items. If the Company determines that a derivative is not highly effective as a hedge or that it has ceased to be highly effective, the Company discontinues hedge accounting prospectively. The change in a derivative’s fair value related to the ineffective portion of a hedge is immediately recognized in earnings. Amounts recorded to accumulated other comprehensive loss from the date of the derivative’s inception to the date of ineffectiveness are amortized to earnings over the remaining term of the hedged item. If the hedged item is settled prior to its originally scheduled date, any remaining accumulated comprehensive loss associated with the derivative instrument is reclassified to earnings. Termination of a derivative instrument prior to its scheduled settlement date may result in charges for termination fees. Dividend Policy The Company’s dividend policy is set by the Company’s Board of Directors and is subject to the terms of its 2015 Senior Credit Facilities and the continued current and future performance and liquidity needs of the Company. Dividends on the Company’s common stock are not cumulative to the extent they are declared. The Board has not authorized the payment of a dividend since 2012, and has not updated its dividend policy. Share-based Payments Restricted Stock The Company determines the fair value of restricted stock based on the number of shares granted and the quoted market price of the Company’s common stock on the date of grant, discounted for estimated dividend payments that do not accrue to the employee during the vesting period. Compensation expense is recognized over the vesting period and adjustments are charged or credited to expense. Performance Share Units (“PSUs”) The Company measures the fair value of each new PSU at the grant date. Adjustments each reporting period are based on changes to the expected achievement of the performance goals or if the PSUs otherwise vest, expire, or are determined by the Compensation Committee of the Company’s Board of Directors to be unlikely to vest prior to expiration. Adjustments are charged or credited to expense. Compensation expense is recorded over the expected performance period. Employee Stock Purchase Plan (“ESPP”) The Company makes payroll deductions of from 1% to 15% of compensation from employees who elect to participate in the ESPP. A liability accretes during the 6-month offering period and at the end of the offering period (June 30 and December 31), the Company issues the shares from the 2012 Employee Stock Purchase Plan (“2012 ESPP”). Compensation expense is recorded based upon the estimated number of shares to be purchased multiplied by the discount rate per share. Tax Treatment Stock-based compensation is treated as a temporary difference for income tax purposes and increases deferred tax assets until the compensation is realized for income tax purposes. To the extent that realized tax benefits exceed the book based compensation, the excess tax benefit is credited to additional paid in capital. Pension Benefits Multi-employer Defined Benefit Plan Pension benefits for substantially all of the Company’s Alaska-based employees are provided through the Alaska Electrical Pension Fund. The Company pays a contractual hourly amount based on employee classification or base compensation. The accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. Defined Benefit Plan The ACS Retirement Plan, which is the Company’s sole single-employer defined benefit plan and covers a limited number of employees previously employed by a predecessor to one of our subsidiaries, is frozen. The Company recognizes the under-funded status of this plan as a liability on its balance sheet and recognizes changes in that funded status in the year in which the changes occur. The ACS Retirement Plan’s accumulated benefit obligation is the actuarial present value, as of the Company’s December 31 measurement date, of all benefits attributed by the pension benefit formula. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees or survivors and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels. Unrecognized prior service credits and costs and net actuarial gains and losses are recognized as a component of other comprehensive income (loss), net of tax. Defined Contribution Plan The Company provides a 401(k) retirement savings plan covering substantially all of it employees. Discretionary company-matching contributions are determined by the Board of Directors. Earnings per Share The Company computes earnings per share based on the weighted number of shares of common stock and dilutive potential common share equivalents outstanding. This includes all issued and outstanding share-based payments. Recently Adopted Accounting Pronouncements In the third quarter of 2015, the Company adopted the provisions of Accounting Standards Update (“ASU”) No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs Long-Term Obligations In the fourth quarter of 2015, the Company adopted the provisions of ASU No. 2015-17, “ Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes Income Taxes Accounting Pronouncements Issued Not Yet Adopted In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, “ Consolidation (Topic 810), Amendments to the Consolidation Analysis” In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date” In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. |
Sale of Wireless Operations
Sale of Wireless Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Wireless Operations | 2. SALE OF WIRELESS OPERATIONS On December 4, 2014, the Company entered into a Purchase and Sale Agreement to sell to General Communication, Inc. (“GCI”), ACSW’s interest in AWN and substantially all the assets and subscribers used primarily in the wireless business of Alaska Communications and its affiliates (the “Acquired Assets”), as described below, for a cash payment of $300,000, which amount was subject to adjustment for certain working capital assets and liabilities as well as minimum subscriber levels and preferred distributions (the “Wireless Sale”). The Acquired Assets included, without limitation, all the equity interests of AWN owned or held by ACSW, substantially all of Alaska Communication’s wireless subscriber assets, including subscriber contracts, and certain network assets at predetermined demarcation points to the cell site locations, including certain fiber strands and associated cell site electronics and microwave facilities and associated electronics. This transaction also includes a capacity agreement with GCI that is similar to the capacity agreement provided in the July 23, 2013 transaction with AWN, whereby Alaska Communications provides certain capacity from the predetermined demarcation points to a central switch location and, if required, to points outside of Alaska. The transaction was completed on February 2, 2015, subject to resolution of potential additional purchase price adjustments. After final resolution in the third quarter of 2015 (as described below) of adjustments for certain working capital assets and liabilities, minimum subscriber levels, preferred distributions and other adjustments totaling $14,840, cash proceeds on the sale were $285,160, of which $240,472 was used to pay down the Company’s 2010 Senior Secured Credit Facility (“2010 Senior Credit Facility”). The Company recorded a gain before income tax of $48,232 in the twelve-month period ended December 31, 2015. The two companies entered into a service transition plan in which Alaska Communications continued to provide certain retail and back office services to its previous wireless customers for an interim period, which was completed on April 17, 2015. This arrangement did not cover the full cost of providing the service. The fair value of these services was $4,769 and was reported as operating revenue. The fair value of the services exceeded the consideration received for this service by approximately $522. The $522 loss was included in the calculation of the gain on the sale. In May 2015, the Company received a cash payment from GCI of $1,680 for timely completion of a transition support agreement. The services provided by the Company in connection with this agreement were not consistent with services rendered in the normal course of business. Accordingly, this amount was included in cash proceeds and gain on the sale. On August 4, 2015, the Company and GCI entered into an agreement to resolve all outstanding issues between the parties associated with the Wireless Sale including finalization of the purchase price adjustments. Final resolution of escrow disbursements was originally scheduled for February 2016. In the third quarter of 2015, $7,092 of $9,000 cash placed in escrow at closing pending resolution of potential additional purchase price adjustments was disbursed to the Company and $1,680 was disbursed to GCI. The gain on and proceeds from the Wireless Sale described above include the $7,092 received from escrow in the third quarter of 2015. The remaining $228 of cash placed in escrow was disbursed to the Company upon timely completion of certain backhaul orders during the fourth quarter of 2015. These backhaul orders consisted of services rendered by the Company in the normal course of business, and the resulting margin was consistent with that typically generated from such services. Accordingly, the $228 was recorded as revenue. The following table provides the calculation of the gain: Consideration: Cash $ 44,688 Principal payment on 2010 Senior Credit Facility 240,472 Total consideration 285,160 Carrying value of assets and liabilities sold: Equity investment in AWN 250,192 Assets and liabilities, net 5,121 Net change in deferred capacity revenue (18,385 ) Total carrying value of assets and liabilities sold 236,928 Gain on disposal of assets $ 48,232 In addition to the major elements discussed above, Alaska Communications and its controlled affiliates are restricted from operating a wireless network or providing wireless products or services in Alaska for a period of four years after closing, except for: (a) fixed wireless replacement, (b) WiFi, (c) wireless backhaul and transport, (d) cell site leases and (e) acting as a wireless internet service provider. As part of the transaction, the Company initiated a plan to sell certain assets associated with realigning operations. These assets included certain handset inventory, which was sold, and retail store leases which were actively marketed for sale to third parties. Upon completion of the service transition plan, the Company accelerated its plan to achieve cost savings related to the wind-down of the wireless business and from the synergies derived from becoming a more focused broadband and managed IT services company. As of December 31, 2015, key cost avoidance milestones have been achieved, including completing the exit from all retail store locations. The Company considered the sale of assets to GCI under the guidance of ASC 205-20, “ Discontinued Operations The following table provides a reconciliation of the major classes of assets and liabilities included on the Consolidated Balance Sheet under the captions “Current assets held-for-sale,” “Non-current assets held-for-sale,” “Current liabilities held-for-sale” and “Non-current liabilities held-for-sale” at December 31, 2014. There were no assets or liabilities held for sale at December 31, 2015. Current assets: Accounts receivable, non-affiliates, net $ 7,607 Materials and supplies 1,958 Total current assets held-for-sale $ 9,565 Property, plant and equipment, net of accumulated depreciation of $8,835 14,664 Total non-current assets held-for-sale $ 14,664 Current liabilities: Current portion of long-term obligations $ 287 Accounts payable, accrued and other current liabilities, non-affiliates 301 Accounts payable, accrued and other current liabilities, affiliates, net 14,411 Advance billings and customer deposits 3,729 Total current liabilities held-for-sale $ 18,728 Long-term obligations, net of current portion 2,107 Total non-current liabilities held-for-sale $ 2,107 Although they did not meet the criteria for classification as held-for-sale, certain other assets and liabilities were impacted by the transaction as follows: • The equity method investment in AWN, valued at $250,192, was sold to GCI on February 2, 2015. • The remaining Deferred AWN capacity revenue, which was created during the AWN transaction in 2013 and was being amortized over the 20-year contract life, was removed. This capacity had a carrying value of $59,672 on February 2, 2015. It was replaced with a new service obligation in the amount of $41,287 which was recorded at the estimated fair value of the services to be provided to GCI in the future and will be amortized over the new contract life of up to 30 years. • On February 2, 2015, the Company’s 2010 Senior Credit Facility was amended resulting in $240,472 in principal payments and the write-off of associated debt discount and debt issuance costs of $721 and $1,907, respectively, in 2015. For additional information on this amendment, see Note 11 “ Long-term Obligations. • Current deferred tax assets of $84,233 representing Federal and state net operating loss carry forwards and state alternative minimum tax credit carry forwards, and non-current deferred tax liabilities of $70,577 related to the Company’s investment in AWN reversed in 2015 as a result of the Wireless Sale. In connection with its decision to sell its wireless operations, the Company incurred a number of transaction related and wind-down costs throughout 2015. In addition, costs were incurred in connection with plans associated with synergies and future cost reductions resulting from the Company becoming a more focused broadband and managed IT services company. The costs incurred for wind-down and synergy activities include those associated with workforce reductions, termination of retail store and other contracts, and other associated obligations that meet the criteria for reporting as exit obligations under ASC 420, “ Exit or Disposal Cost Obligations Compensation – Nonretirement Postemployment Benefits The following table summarizes the Company’s current obligations for exit activities, including costs accounted for under both ASC 420 and ASC 712, as of and for the twelve month periods ended December 31, 2015 and 2014: Labor Contract Other Total Balance at December 31, 2013 $ — $ — $ — $ — Charged to expense 490 — 634 1,124 Paid and/or settled — — (634 ) (634 ) Balance at December 31, 2014 $ 490 $ — $ — $ 490 Charged to expense 6,485 3,966 294 10,745 Paid and/or settled (5,752 ) (3,966 ) (294 ) (10,012 ) Balance at December 31, 2015 $ 1,223 $ — $ — $ 1,223 The exit liability is included in “Accounts payable, accrued and other current liabilities, non-affiliates” on the Company’s Consolidated Balance Sheets. |
Joint Venture
Joint Venture | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Joint Venture | 3. JOINT VENTURE In the second quarter of 2015, the Company entered into a series of transactions with ConocoPhillips Alaska, Inc. (“CPAI”) and QHL which included the acquisition of a fiber optic network on the North Slope of Alaska from CPAI and the establishment of a joint venture with QHL. The network will enable commercially-available, high-speed connectivity where only high-cost microwave and satellite communications were available. Through the Alaska Communications and QHL joint venture, this network will be made available to other telecom carriers in the market. The transactions described below were all entered into concurrently on April 2, 2015 and in contemplation of each of the other transactions. Transactions with CPAI The Company, through its wholly-owned subsidiary ACS Cable Systems, LLC, acquired from CPAI a fiber optic cable (including conduit, licenses, permits and right-of-ways) running from the Kuparuk Operating Center to the Trans-Alaska Pipeline System Pump Station #1 (the “Fiber Optic System”). The purchase price was $11,000, $5,500 of which was paid by the Company at closing and the balance of which is payable on or before April 4, 2016. The Company sold to CPAI a 30 year IRU on certain fibers from the Fiber Optic System. The sales price was $400, all of which was paid by CPAI at closing. The Company and CPAI also entered into agreements for the exchange of IRUs, pipeline access, conduit and future capacity, and the prepayment of certain fees and services. Transactions with QHL The Company sold certain fiber strands from the Fiber Optic System to QHL for $5,300, $2,650 of which was paid by QHL at closing and the balance of which is payable on or before April 1, 2016. The Company and QHL also exchanged 30 year IRU agreements. Formation of Joint Venture On April 2, 2015, the Company, through its wholly-owned subsidiary ACS Cable Systems, LLC, entered into a joint venture agreement with QHL to form ACS-Quintillion JV, LLC (the “Joint Venture”) for the purpose of expanding the fiber optic network, and making the network available to other telecom carriers. The Joint Venture may also participate in and facilitate other capital and service initiatives in the telecom industry. The Company and QHL each contributed to the Joint Venture IRUs with a combined value of $1,844 ($922 by each party). Each party also contributed cash of $250. The Company contributed an additional IRU with a value of $461. The Company and QHL each hold a 50% voting interest in the Joint Venture. Accounting Treatment The transactions in which no cash was exchanged are considered to be nonmonetary transactions. These nonmonetary transactions have also been determined to be reciprocal transfers because, for each individual transaction, or combination of transactions, an asset or obligation was received for an asset or obligation relinquished. The transactions have been determined to have commercial substance based on the Company’s expectations regarding the future cash flow streams from the assets received. The nonmonetary transactions, including both assets and services, have been recorded at fair value which was equivalent to carrying value. There were no gains or losses recorded by the Company in connection with these exchanges. The Company determined that the transactions described above do not constitute a business combination as defined in ASC 805, “ Business Combinations The Company determined that the Joint Venture is a Variable Interest Entity as defined in ASC 810, “ Consolidation The table below provides certain financial information about the Joint Venture included on the Company’s consolidated balance sheet at December 31, 2015. Cash may only be utilized to settle obligations of the Joint Venture. Because the Joint Venture is an LLC, its creditors do not have recourse to the general credit of the Company. December 31, Cash $ 359 Fiber and IRUs, net of accumulated depreciation of $26 $ 2,278 The operating results and cash flows of the Joint Venture in the twelve month period of 2015 were not material to the Company’s consolidated financial results. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | 4. ACCOUNTS RECEIVABLE Accounts receivable, non-affiliates, net consists of the following at December 31, 2015 and 2014: 2015 2014 Retail customers $ 17,291 $ 20,070 Wholesale carriers 3,086 3,867 Other 6,541 9,301 26,918 33,238 Less: allowance for doubtful accounts (1,693 ) (2,338 ) Accounts receivable, non-affiliates net $ 25,225 $ 30,900 Allowance for doubtful accounts consists of the following at December 31, 2015, 2014 and 2013. 2015 2014 2013 Balance at January 1 $ 2,338 $ 6,193 $ 6,231 Provision for uncollectible accounts 1,258 3,329 1,847 Charged to other accounts 8 (2 ) (2 ) Deductions (1,911 ) (7,182 ) (1,883 ) Balance at December 31 $ 1,693 $ 2,338 $ 6,193 |
Current Liabilities
Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Current Liabilities | 5. CURRENT LIABILITIES Accounts payable, accrued and other current liabilities, non-affiliates consist of the following at December 31, 2015 and 2014: 2015 2014 Accrued payroll, benefits, and related liabilities $ 17,362 $ 18,086 Accounts payable - trade 16,057 25,672 Note payable, non-interest bearing, due 2016 5,500 — Other 12,356 10,615 $ 51,275 $ 54,373 Advance billings and customer deposits consist of the following at December 31, 2015 and 2014: 2015 2014 Advance billings $ 4,482 $ 4,449 Customer deposits 31 41 $ 4,513 $ 4,490 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | 6. EQUITY METHOD INVESTMENTS The Company had no equity method investments at December 31, 2015. See Note 2 “ Sale of Wireless Operations Ownership Interest Investment In December 31, December 31, December 31, December 31, TekMate, LLC 0.00 % 100.00 % $ — $ — Alaska Wireless Network, LLC 0.00 % 33.33 % $ — $ 252,067 TekMate On August 31, 2010, the Company acquired a 49% interest in TekMate for $2,060. On January 31, 2014, the Company purchased the remaining 51% interest in TekMate for $1,573, of which $894 was paid in 2014 and $679 was paid in 2015. The Company accounted for the purchase of the remaining 51% interest in TekMate at fair value using the acquisition method. On January 31, 2014, the Company ceased to report TekMate as an equity method investment and consolidated its operations into Alaska Communications Systems Group, Inc. The following table represents the fair value of the assets acquired and liabilities assumed on January 31, 2014: Current assets $ 1,020 Non-current assets $ 370 Current liabilities $ 467 Non-current liabilities $ 247 Net assets acquired and liabilities assumed $ 676 Goodwill on the acquisition, which is 100% deductible for tax purposes, was as follows: Consideration provided (including fair value of contingent consideration) $ 1,181 Fair value of equity method investment 831 Total consideration 2,012 Fair value of assets acquired 1,390 Fair value of liabilities assumed (714 ) Total net assets 676 Goodwill $ 1,336 In the period January 1, 2014 to January 31, 2014 TekMate’s net income was $12 and it made cash distributions of $33 to the Company. At January 31, 2014, undistributed earnings of TekMate were $0. Pro forma financial information has been omitted because the acquisition was not material to the Company’s historical consolidated financial statements. AWN FORMATION On February 2, 2015, the Company sold its one-third interest in AWN to GCI. See Note 2 “ Sale of Wireless Operations On July 22, 2013, the Company and GCI completed the transactions contemplated by the June 4, 2012 Asset Purchase and Contribution Agreement for the purpose of combining their wireless networks into AWN. Pursuant to the Contribution Agreement, Alaska Communications sold certain wireless assets to GCI for a cash payment of $100,000. GCI then contributed these assets, together with GCI’s wireless assets, to AWN in exchange for a two-thirds membership interest in AWN. The Alaska Communications Member contributed the Company’s wireless assets that were not sold to GCI to AWN in exchange for a one-third membership interest in AWN. At the closing, the parties entered into the First Amended and Restated Operating Agreement of The Alaska Wireless Network, LLC (the “Operating Agreement”) and other related agreements which governed the ongoing relationship among the parties. Under the terms of the Operating Agreement, AWN was managed by its majority owner, GCI, subject to certain protective rights retained by the Company and representation of one of three seats on AWN’s Board. Accordingly, Alaska Communications had the ability to exercise significant influence over AWN and accounted for its investment under the equity method in accordance with ASC 323, Investments - Equity Method and Joint Ventures The Operating Agreement provided that Alaska Communications was entitled to a cumulative preferred cash distribution of up to $12,500 of Adjusted Free Cash Flow, as defined in the agreement, in each of the first eight quarters after closing and $11,250 in each of the eight quarters thereafter (Alaska Communications’ preference period). A national valuation firm was engaged by the parties to assist in the determination of the fair value of AWN including the preferred distribution and the allocation of the purchase price to the assets and liabilities. This valuation was completed in the second quarter of 2014 and assigned a valuation to the AWN Equity Investment of $266,000 and to the Deferred AWN Capacity Revenue of $64,627. The effects of the final valuation were applied retrospectively and, accordingly, the previously reported December 31, 2013 amounts were revised to reflect the amounts that would have been reported if the final valuation had been completed at the July 23, 2013 acquisition date. See the Company’s 2014 second quarter filing on Form 10-Q for a summary of these revised amounts. The carrying value of the AWN Equity Investment and Deferred AWN Capacity Revenue at December 31, 2014 were $252,067 and $59,964, respectively. The “ Deferred AWN capacity revenue” In the second quarter of 2014, the Company received the final valuation report and as a result trued up the value of its capacity contribution to AWN and its pre-tax gain of $210,873. The following table represents the calculation of the gain: Consideration received: Investment $ 266,000 Cash 100,000 Total consideration received 366,000 Consideration provided: Net intangible and tangible assets 90,500 Deferred AWN capacity revenue 64,627 Total consideration provided 155,127 Gain on disposal of assets $ 210,873 In the period January 1 through February 2, 2015, the Company’s share of AWN’s adjusted free cash flow was $764 which was received in the first quarter of 2015. In the twelve-month period ended December 31, 2014, the Company’s share of AWN’s adjusted free cash flow was $50,000, of which $45,833 was received during the period and $4,167 was paid within the subsequent 12-day contractual period. In the period July 23, 2013 through December 31, 2013, the Company’s share of AWN’s adjusted free cash flow was $22,011, of which $17,844 was received during the period and $4,167 was paid within the subsequent 12-day contractual period. The Company’s equity in the earnings of AWN for the twelve months ended December 31, 2015 and 2014 and from July 23, 2013 to December 31, 2013 were $3,056, $35,948 and $17,963, respectively. Summarized financial information on AWN is as follows: December 31, December 31, Current assets $ — $ 139,237 Non-current assets $ — $ 554,608 Current liabilities $ — $ 91,247 Non-current liabilities $ — $ 21,505 Equity $ — $ 581,093 January 1 Twelve Inception to Operating revenues $ 21,457 $ 252,864 $ 118,918 Gross profit $ 15,745 $ 179,243 $ 86,201 Operating income $ 9,757 $ 113,772 $ 56,543 Net income $ 9,722 $ 113,404 $ 56,342 Adjusted free cash flow (1) $ 10,805 $ 106,937 $ 53,978 (1) Adjusted free cash flow is defined in the Operating Agreement. The excess of Alaska Communications’ investment in AWN over the Company’s share of net assets in AWN was estimated to be $13,810 at December 31, 2014. This difference represented the increase in basis of the GCI Member’s contribution to AWN, as AWN accounted for the GCI member’s contribution at carryover basis and Alaska Communications was accounting for it at estimated fair value. AWN was organized as a limited liability corporation and was a flow-through entity for income tax purposes. The following table provides a reconciliation AWN’s total equity and Alaska Communications’ equity method investment as of December 31, 2014: AWN total equity as reported $ 581,093 Less amount attributed to GCI (342,836 ) Amount attributed to ACS 238,257 Plus: Step-up in basis of GCI contribution, net 30,702 Cumulative differences in distributions 4,167 Less: Cumulative differences in income allocation method (21,059 ) Alaska Communications investment in AWN $ 252,067 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS The Company has developed valuation techniques based upon observable and unobservable inputs to calculate the fair value of non-current monetary assets and liabilities. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1- Quoted prices for identical instruments in active markets. • Level 2- Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3- Significant inputs to the valuation model are unobservable. Financial assets and liabilities are classified within the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured, as well as their level within the fair value hierarchy. The fair values of cash equivalents, restricted cash, other short-term monetary assets and liabilities and capital leases approximate carrying values due to their nature. The fair value of the Company’s 6.25% Notes of $97,769 at December 31, 2015, was estimated based on quoted market prices for identical instruments on dates different from the market trade date value (Level 2). The carrying value of the 6.25% Notes at December 31, 2015 was $99,359. The carrying values of the Company’s 2015 Senior Credit Facilities and other long-term obligations of $93,746 at December 31, 2015 approximate fair value primarily as a result of the stated interest rates of the 2015 Senior Credit Facilities approximating current market rates (Level 2). The fair value of the Company’s 2010 Senior Credit Facility, convertible notes and other long-term obligations of $430,729 at December 31, 2014, were estimated based primarily on quoted market prices (Level 1). The carrying values of these liabilities totaled $436,362 at December 31, 2014. Fair Value Measurements on a Recurring Basis The following table presents the liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 at each hierarchical level. There were no transfers into or out of Levels 1 and 2 during 2015. December 31, 2015 December 31, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Other long-term liabilities: Interest rate swaps $ (79 ) $ — $ (79 ) $ — $ (1,416 ) $ — $ (1,416 ) $ — Derivative Financial Instruments The Company, from time to time, uses interest rate swaps to manage variable interest rate risk. At low LIBOR rates, payments under the swaps increase the Company’s cash interest expense. The outstanding amount of the swaps as of a period end are reported on the balance sheet at fair value, represented by the estimated amount the Company would receive or pay to terminate the swaps. They are valued using models based on readily observable market parameters for all substantial terms of the contracts and are classified within Level 2 of the fair value hierarchy. As a component of the Company’s cash flow hedging strategy and to comply with the terms of the 2015 Senior Credit Facilities, on November 27, 2015, the Company entered into a pay-fixed, receive-floating interest rate swap in the notional amount of $44,827 with an interest rate of 5.833%, inclusive of a 4.5% LIBOR spread, and a maturity date of December 31, 2017. Hedge designation for this swap was established on December 18, 2015. The change in fair value between the swap’s acquisition date and designation date of $83 was charged to interest expense. Changes in fair value subsequent to the designation date were recorded to accumulated other comprehensive income (loss). In connection with the Company’s 2010 Senior Credit Facility, swaps in the notional amounts of $115,500 and $77,000 with interest rates of 7.220% and 7.225%, inclusive of a 4.75% LIBOR spread, began on June 30, 2012 and expired on September 30, 2015. On December 4, 2014, upon the announcement of the sale of its wireless operations, $240,472 of the Company’s 2010 Senior Credit Facility was expected to be repaid. Hedge accounting treatment on the interest rate swap in the notional amount of $115,500 was discontinued because it became “possible” that the interest payments on which the swap were intended to hedge would not occur. At February 2, 2015, 95.5% or $110,268 of the $115,500 swap was deemed ineffective and, therefore, changes in fair value through the swap’s expiration on September 30, 2015 were recorded to interest expense. Through December 31, 2015, $820 was credited to interest expense for the ineffective portion of these swaps. The following table presents information about the Company’s interest rate swaps, which are included in “Other long-term liabilities” on the balance sheet, as of and for the twelve-month periods ending December 31, 2015 and 2014: 2015 2014 Balance at January 1 $ 1,416 $ 3,234 Reclassified from other long-term liabilities to accumulated other comprehensive loss (600 ) (1,545 ) Change in fair value credited to interest expense (737 ) (273 ) Balance at December 31 $ 79 $ 1,416 Fair Value Measurements on a Non-recurring Basis Deferred Capacity Revenue As discussed in Note 2 “ Sale of Wireless Operations,” The following table describes the valuation techniques used to measure the fair value of the service obligation at February 2, 2015 and the significant unobservable inputs and values for those inputs: Description Estimated Valuation Technique Level 3 Unobservable Inputs Significant Deferred Capacity Revenue $ 41,287 Cost/Replacement Weighted Average Cost of Capital 11.00% Cost trend factor 1% - Estimated % used by GCI 1% - Historical cost of underlying assets Actual cost Other Items As discussed in Note 3 “ Joint Venture The following table provides the fair value and describes the valuation techniques used to measure the fair value of the assets and liabilities recorded by the Company as of April 2, 2015, including those recognized through consolidation of the Joint Venture, and the significant unobservable inputs: Description Estimated Valuation Level 3 Unobservable Inputs IRU Assets $ 2,304 Cost Historical cost of underlying assets IRU Obligations $ 4,153 Cost Historical cost of underlying assets The carrying value of these items at December 31, 2015 was as follows: IRU Assets $ 2,278 IRU Obligations $ 4,112 Other than as described below and in Note 9 “ Goodwill and Other Intangible Assets, TekMate Impairment The Company recorded an impairment charge of $1,267 on its equity method investment in TekMate in the fourth quarter of 2013 which is included in the caption “ Loss on impairment of equity investment |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following at December 31, 2015 and 2014: 2015 2014 Useful Lives Land, buildings and support assets* $ 198,485 $ 209,349 3 - 42 Central office switching and transmission 381,511 385,016 4 - 12 Outside plant cable and wire facilities 722,582 674,914 16 - 50 Other 5,207 3,606 3 - 5 Construction work in progress 29,313 60,249 1,337,098 1,333,134 Less: accumulated depreciation and amortization (967,776 ) (976,401 ) Property, plant and equipment, net $ 369,322 $ 356,733 * No depreciation charges are recorded for land. Capitalized interest associated with construction in progress for the years ended December 31, 2015, 2014, and 2013 was $1,558, $2,810, and $1,926, respectively. The capitalization rate used was based on a weighted average of the Company’s long term debt outstanding and for the years ended December 31, 2015, 2014, and 2013 was 6.78%, 8.28%, and 8.07%, respectively. The following is a summary of property, including leasehold improvements, held under capital leases included in the above property, plant and equipment at December 31, 2015 and 2014: 2015 2014 Land, buildings and support assets $ 14,694 $ 15,426 Less: accumulated depreciation and amortization (6,674 ) (6,698 ) Property held under capital leases, net $ 8,020 $ 8,728 Amortization of assets under capital leases included in depreciation expense for the years ended December 31, 2015, 2014, and 2013 was $1,316, $1,832 and $1,827, respectively. Future minimum lease payments, including interest, under these leases for the next five years and thereafter are as follows: 2016 $ 1,028 2017 634 2018 525 2019 310 2020 318 Thereafter 4,835 7,650 Interest (3,654 ) $ 3,996 The Company leases various land, buildings, right-of-ways and personal property under operating lease agreements. Rental expense under operating leases for the years ended December 31, 2015, 2014 and 2013 was $11,439, $8,782 and $9,785, respectively. Rental expense in 2015 included termination charges of $3,966 for leases terminated in connection with the Company’s sale of its Wireless operations. See Note 2 “ Sale of Wireless Operations Future minimum payments under these leases, including month to month rentals which are probable of renewal, for the next five years and thereafter are as follows: 2016 $ 7,134 2017 6,383 2018 5,744 2019 5,308 2020 4,728 Thereafter 31,431 $ 60,728 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is assessed for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. In the fourth quarter of 2014 the Company conducted two assessments of goodwill – its annual assessment and an assessment upon the announcement of its sale of Wireless operations which constituted a triggering event. The Company utilized reports from third party valuation experts to determine the estimated fair value of its reporting unit. These reports utilized many methodologies, but primarily relied on a discounted cash flow valuation technique. Significant estimates used in the valuation included estimates of future cash flows, both future short-term and long-term growth rates and the estimated cost of capital for purposes of determining a discount factor. The Company compared the results of the estimated fair value to other market approaches and comparable public and private company analysis and found the estimated fair value to be reasonable. The Company also performed a reconciliation of its estimated fair value to its market capitalization, based on its recently publically traded stock price. This analysis indicated a potential impairment as the calculated value was less than the book value. For accounting purposes the Company utilized the fair value indicated by market capitalization, thereby resulting in the conclusion that the carrying value of its single reporting unit exceeded its fair value. Accordingly, the Company performed step two of the goodwill impairment analysis. After measuring the fair value of the reporting unit’s assets and liabilities, the implied fair value of goodwill was determined to be zero. Consequently, the Company determined that the goodwill was fully impaired and recorded an impairment charge of $5,986 for the year ended December 31, 2014. In the first quarter of 2014, the Company purchased the remaining 51% interest in TekMate and recorded $1,336 of goodwill. In the third quarter of 2013 as part of the AWN transaction the Company performed an assessment of its goodwill and bifurcated the balance between the business being sold to AWN and the business being retained resulting in the retirement of $4,200 in goodwill. As part of the AWN transaction in 2013, all of the Company’s other intangible assets were sold or contributed to AWN. The Company no longer holds any indefinite-lived intangible assets. The Company’s wireless spectrum licenses had contract terms of ten years, and were renewable indefinitely through a routine process involving a nominal fee. These fees were expensed as incurred. The original carrying value and accumulated impairment of the Company’s goodwill at December 31, 2015, 2014 and 2013 was as follows: 2015 2014 2013 Original carrying value $ — $ 38,403 $ 38,403 Accumulated impairment — (29,553 ) (29,553 ) Retirement due to AWN transaction — (4,200 ) (4,200 ) TekMate acquisition — 1,336 — Current year impairment — (5,986 ) — Balance $ — $ — $ 4,650 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 10. ASSET RETIREMENT OBLIGATIONS The Company’s asset retirement obligation is included in “Other long-term liabilities” on the Consolidated Balance Sheets and represents the estimated obligation related to the removal and disposal of certain property and equipment in both leased and owned properties. The following table provides the changes in the asset retirement obligation: 2015 2014 Balance at January 1 $ 4,055 $ 3,657 Asset retirement obligation 254 369 Accretion expense 179 328 Settlement of obligations (106 ) (299 ) Revisions in estimated cash flows (953 ) — Balance at December 31 $ 3,429 $ 4,055 |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | 11. LONG-TERM OBLIGATIONS Long-term obligations consist of the following at December 31, 2015 and 2014: 2015 2014 2015 senior secured credit facilities due 2018 $ 89,750 $ — Debt issuance costs (3,406 ) — 2010 senior credit facility term loan due 2016 — 322,700 Debt discount — (1,014 ) Debt issuance costs — (2,810 ) 6.25% convertible notes due 2018 104,000 114,000 Debt discount (4,641 ) (7,242 ) Debt issuance costs (1,010 ) (1,659 ) Revolving credit facility loan — — Capital leases and other long-term obligations 3,996 5,524 Total debt 188,689 429,499 Less current portion (3,671 ) (15,521 ) Long-term obligations, net of current portion $ 185,018 $ 413,978 The above table reflects the Company’s refinancing activities described below and adoption of ASU 2015-03 in 2015. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt. Unamortized debt issuance costs totaling $4,469 at December 31, 2014 were reclassified from “Assets” to “Long-term obligations, net of current portion,” to conform to the current presentation as required by the update. The aggregate maturities of long-term obligations for each of the next five years and thereafter, at December 31, 2015, are as follows: 2016 $ 3,671 2017 4,323 2018 186,986 2019 39 2020 52 Thereafter 2,675 $ 197,746 2015 Senior Credit Facilities On September 14, 2015 (the “Closing Date”), the Company entered into a combined $100,000 of senior secured financing, including term loans totaling $90,000 and a $10,000 revolving credit facility (the “2015 Senior Credit Facilities”). The facilities consist of a $65,000 first lien term loan and a $10,000 revolving credit facility (the “First Lien Facility”) and a $25,000 second lien term loan (the “Second Lien Facility”) (together the “2015 Senior Credit Agreements” or “Agreements”). The Company utilized proceeds from the 2015 Senior Credit Facilities and cash on hand to repay in full its 2010 Senior Credit Facility, repurchase a portion of its 6.25% Convertible Notes due 2018 (the “6.25% Notes”) and fund transaction fees and expenses associated with the 2015 Senior Credit Facilities totaling $3,907, which were deferred and will be charged to interest expense over the terms of the Agreements. The term loan component of the First Lien Facility bears interest at LIBOR plus 4.5% per annum, with a LIBOR minimum of 1.0%. Draws on the revolving credit component of the First Lien Facility bear interest at LIBOR plus 4.5%, with a LIBOR minimum of 1.0% and a commitment fee of 0.25% on the average daily unused portion. The revolving credit component of the First Lien Facility was undrawn as of December 31, 2015. The Second Lien Facility bears interest at LIBOR plus 8.5% per annum, with a LIBOR minimum of 1.0%. At current LIBOR rates, the weighted interest rate on the term loan components of the 2015 Senior Credit Facilities is 6.64%. Unless extended as described below, quarterly principal payments on the term loan component of the First Lien Facility were $250 in the fourth quarter of 2015, and are $750 in each quarter of 2016, and $1,000 in each quarter of 2017. The remaining principal balance, including any amounts outstanding under the revolving credit facility, is due in its entirety on January 2, 2018. Unless extended as described below, the Second Lien Facility is due in its entirety on March 3, 2018, and may be prepaid in whole or in part at the Company’s option prior to maturity. The First Lien Facility may be extended to June 30, 2020 and the Second Lien Facility may be extended to September 30, 2020 if the Company (i) has refinanced or repurchased its 6.25% Notes such that no more than $30,000 of principal amount is outstanding (with cash available for their repayment at maturity) and any replacement notes have a maturity date not earlier than December 31, 2020, (ii) has achieved certain liquidity requirements, and (iii) is otherwise compliant with the terms of the 2015 Senior Credit Facilities. In the event the 2015 Senior Credit Facilities are extended, the quarterly principal payments on the term loan component of the First Lien Facility subsequent to 2017 would be $1,250 in each quarter of 2018, and $1,500 in each quarter of 2019 and the first quarter of 2020. The remaining principal balance, including any amounts outstanding under the revolving credit facility, would be due in its entirety on June 30, 2020. The Second Lien Facility would be due in its entirety on September 30, 2020, and may be prepaid in whole or in part at the Company’s option prior to maturity. The obligations under the 2015 Senior Credit Facilities are secured by perfected first and second line priority security interests in substantially all of the Company’s and its direct and indirect subsidiary’s tangible and intangible assets, subject to certain agreed exceptions. The 2015 Senior Credit Facilities contain customary representations, warranties and covenants, including covenants limiting the incurrence of debt and the payment of dividends. Financial covenants (i) impose maximum net total leverage and senior leverage to annual Consolidated EBITDA ratios, and (ii) require a minimum annual Consolidated EBITDA to debt service coverage obligations ratio. All terms are defined in the Agreements. Payment of cash dividends and repurchase of the Company’s common stock is not permitted until such time that the Company’s net total leverage ratio is not greater than 2.75 to 1.00. As of December 31, 2015, the Company’s net total leverage ratio was higher than 2.75 to 1.00. The 2015 Senior Credit Facilities provide for events of default customary for credit facilities of this type, including non-payment defaults on other debt, misrepresentation, breach of covenants, representations and warranties, change of control, and insolvency and bankruptcy. Upon the occurrence of an event of default, and for so long as it continues, the Administrative Agent upon request of the Required Lenders (both as defined in the Agreements) may increase the interest rate then in effect on all outstanding obligations by 2.0%. Upon an event of default relating to insolvency, bankruptcy or receivership, the amounts outstanding under the 2015 Senior Credit Facilities will become immediately due and payable. Upon the occurrence and continuation of any other event of default, the Administrative Agent, upon request of the Required Lenders, may accelerate payment of all obligations. As a component of the Company’s cash flow hedging strategy and to comply with the terms of the 2015 Senior Credit Facilities, on November 27, 2015, the Company entered into a pay-fixed, receive-floating interest rate swap in the notional amount of $44,827 with an interest rate of 5.833%, inclusive of a 4.5% LIBOR spread, and a maturity date of December 31, 2017. Hedge designation for this swap was established on December 18, 2015. The change in fair value between the swap’s acquisition date and designation date of $83 was charged to interest expense. Changes in fair value subsequent to the designation date were recorded to accumulated other comprehensive income (loss). See Note 7 “ Fair Value Measurements 2010 Senior Secured Credit Facility In the third quarter of 2015, the Company utilized proceeds from its 2015 Senior Credit Facilities described above and cash on hand to repay, in full, its 2010 Senior Credit Facility, including accrued interest and fees, of $81,526. The Company recorded a loss of $1,312 on the extinguishment of debt associated with the repayment of the 2010 Senior Credit Facility. The loss included the write off of unamortized discounts and debt issuance costs, and third-party fees. The 2010 Senior Credit Facility was due in 2016. In the fourth quarter of 2010, the Company completed a transaction whereby it entered into its $470,000, 2010 Senior Credit Facility. The 2010 Senior Credit Facility was amended effective November 1, 2012. As discussed below, certain terms of the amendment were effective immediately and certain terms were effective upon consummation of the AWN Transaction. The $440,000 term loan outstanding under the 2010 Senior Credit Facility was recorded net of a 1.0% discount, or $4,400, of the debt issuance. Quarterly principal payments equal to 0.25% of the original principal balance, or $1,100, were due beginning in the first quarter of 2011. Quarterly principal payments increased to $1,825, $3,300 and $3,675 in the quarters beginning January 1, 2013, 2014 and 2015, respectively, and were scheduled to decrease to $3,300 in the quarter beginning January 1, 2016. The 2010 Senior Credit Facility also included a $30,000 revolving credit agreement, which was undrawn as of December 31, 2014 and at the date of extinguishment. Outstanding letters of credit totaling $2,212 were committed against this amount as of December 31, 2014. In accordance with the November 1, 2012 amendment, the interest rates of LIBOR plus 4.0% increased 25 basis points every other month during the period March 31, 2013 through July 22, 2013. Upon consummation of the AWN Transaction, the Company made a $65,000 principal payment and the interest rate of the term loan and revolving credit agreement increased to LIBOR plus 4.75% with a LIBOR floor of 1.5%. The 2010 Senior Credit Facility contained a number of restrictive covenants and events of default, including financial covenants limiting capital expenditures, incurrence of debt and payment of cash dividends. Payment of cash dividends were not permitted until such time that the Company’s total leverage ratio (as defined in the 2010 Senior Credit Facility) was not more than 3.50 to 1.00. In connection with the 2010 Senior Credit Facility, the Company entered into forward floating-to-fixed interest rate swaps and a buy back of the 1.5% LIBOR floor, as a component of its cash flow hedging strategy. The notional amounts of the swaps were $192,500, $115,500 and $77,000 with interest rates of 6.463%, 6.470% and 6.475%, respectively, inclusive of a 4.0% LIBOR spread. The swaps began on June 30, 2012 and were expected to continue through September 30, 2015. On November 1, 2012, the effective date of the amendment to the Company’s 2010 Senior Credit Facility, and as a result of the incremental $65,000 AWN transaction principal payment on the term loan required by this amendment, it was determined that the swap in the notional amount of $192,500 no longer met the hedge effectiveness criteria. The $192,500 swap was extinguished and settled on August 1, 2013 for $4,073 in cash. Unrealized losses on this swap recorded to accumulated other comprehensive loss from the swap’s inception through the date hedge accounting treatment was discontinued (November 1, 2012), and amounts associated with the variable rate interest payments underlying the accelerated $65,000 principal payment, were reclassified to interest expense. The amount of this reclassification was $707. The remaining balance of amounts recorded to accumulated other comprehensive loss associated with this hedge was to be amortized to interest expense over the period of the remaining originally designated hedged variable rate interest payments. The notional amounts of the two remaining swaps were $115,500 and $77,000 with interest rates of 7.220% and 7.225%, respectively, inclusive of a 4.75% LIBOR spread. On December 4, 2014, the Company announced the sale of its wireless operations and, upon consummation of the sale on February 2, 2015, the planned significant pay down of debt. At that time hedge accounting was discontinued because it became “possible” that the interest payments on which the swaps were intended to hedge would not occur. This trigger resulted in $109,800 of the $115,500 swap to become ineffective and the Company reclassified $31 in Other Comprehensive Income (Loss) to interest expense. Future changes in fair value were charged to interest expense. On February 2, 2015 the sale closed and the 2010 Senior Credit Facility was amended, which resulted in the release of certain collateral and a principal repayment of $240,472. Debt discount and debt issuance costs related to the repayment of the $240,472 were $721 and $1,907, respectively. Substantially all of the Company’s assets, including those of its subsidiaries, were pledged as collateral for the 2010 Senior Credit Facility. 6.25% Convertible Notes due 2018 On May 10, 2011, the Company closed the sale of $120,000 aggregate principal amount of its 6.25% Notes to certain initial purchasers in a private placement. The 6.25% Notes are fully and unconditionally guaranteed (“Note Guarantees”), on a joint and several unsecured basis, by all of the Company’s existing subsidiaries, other than its license subsidiaries, and certain of the Company’s future domestic subsidiaries (“Guarantors”). The 6.25% Notes pay interest semi-annually on May 1 and November 1 at a rate of 6.25% per year and will mature on May 1, 2018. The 6.25% Notes will be convertible at an initial conversion rate of 97.2668 shares of common stock per $1,000 principal amount of the 6.25% Notes, which is equivalent to an initial conversion price of approximately $10.28 per share of common stock. The Company may not redeem the 6.25% Notes prior to maturity. Beginning on February 1, 2018, the 6.25% Notes will be convertible by the holder at any time until 5:00 p.m., New York City time, on the second scheduled trading-day immediately preceding the stated maturity date. Given that the Company’s current share price is well below $10.28, we do not anticipate that there will be a conversion into equity. Prior to February 1, 2018, the holder may convert the 6.25% Notes: • During any fiscal quarter beginning after June 30, 2011 following any previous fiscal quarter in which the trading price of the Company’s common stock equals or exceeds 130% of the conversion price of the 6.25% Notes for at least 20 trading-days during the last 30 trading-days of the previous fiscal quarter; • During any five business day period following any five trading-day period in which the trading price of the 6.25% Notes is less than 98% of parity value on each day of that five trading-day period; and • Upon the occurrence of certain significant corporate transactions, holders who convert their 6.25% Notes, in connection with a change of control, may be entitled to a make-whole premium in the form of an increase in the conversion rate. In addition, upon a change in control, liquidation, dissolution or delisting, the holders of the 6.25% Notes may require the Company to repurchase for cash all or any portion of their 6.25% Notes for 100% of the principal amount plus accrued and unpaid interest. As of December 31, 2015, none of the conditions allowing holders of the 6.25% Notes to convert, or requiring the Company to repurchase the 6.25% Notes, had been met. Additionally, the 6.25% Notes contain events of default which, if they occur, entitle the holders of the 6.25% Notes to declare them to be immediately due and payable. Those events of default include: (i) payment defaults on either the notes themselves or other large obligations; (ii) failure to comply with the terms of the notes; and (iii) most bankruptcy proceedings. The 6.25% Notes are unsecured obligations, subordinated in right of payment to the Company’s obligations under its 2015 Senior Credit Facilities as well as certain hedging agreements within the meaning of the Company’s 2015 Senior Credit Facilities. The 6.25% Notes also rank equally in right of payment with all of the Company’s other existing and future senior indebtedness and are senior in right of payment to all of the Company’s future subordinated obligations. The Note Guarantees are subordinated in right of payment to the Guarantors’ obligations under the Company’s 2015 Senior Credit Facilities as well as certain hedging agreements within the meaning of the Company’s 2015 Senior Credit Facilities. Convertible debt instruments that may be settled in cash upon conversion at the Company’s option, including partial cash settlement, must be accounted for by bifurcating the liability and equity components of the instruments in a manner that reflects the entity’s non-convertible debt borrowing rate when interest cost is recognized in subsequent periods. The Company applied this rate to the $120,000 6.25% Notes, bifurcating the notes into the liability portion and the equity portion attributable to the conversion feature of the notes. In doing so, the Company used the discounted cash flow approach to value the debt portion of the notes. The cash flow stream from the coupon interest payments and the final principal payment were discounted at 8.61% to arrive at the valuations. The Company used 8.61% as the appropriate discount rate after examining the interest rates for similar instruments issued in the same time frame for similar companies without the conversion feature. The equity component of the 6.25% Notes was $8,500, net of a tax benefit of $5,931. The Company’s Board of Directors has authorized the issuance of up to 4,700 common shares for the repurchase of its convertible notes. In the third quarter of 2013, the Company delivered and issued 698 and 1,203 common shares in exchange for the retirement of $2,500 and $3,500, respectively, aggregate principal amount of 6.25% convertible notes due 2018. This Board of Directors’ authorization expired December 31, 2013. In the third quarter of 2015, the Company utilized proceeds from its 2015 Senior Credit Facilities described above and cash on hand to repurchase a portion of its 6.25% Notes in the total principal amount of $10,000. The total cash settlement of $10,572 included accrued interest, transaction fees and premium. The Company recorded a loss of $938 on the extinguishment of this debt, including the write off of unamortized discounts and debt issuance costs, third-party fees and premium. The following table includes selected data regarding the 6.25% Notes as of December 31, 2015 and 2014: 2015 2014 Net carrying amount of the equity component $ 7,099 $ 7,782 Principal amount of the convertible notes $ 104,000 $ 114,000 Unamortized debt discount $ 4,641 $ 7,242 Amortization period remaining 28 months 40 months Net carrying amount of the convertible notes $ 99,359 $ 106,758 The following table details the interest components of the 6.25% Notes contained in the Company’s Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2015 and 2014: 2015 2014 Coupon interest expense $ 6,947 $ 7,125 Amortization of the debt discount 2,601 1,971 Total included in interest expense $ 9,548 $ 9,096 On January 29, 2016, the Company repurchased 6.25% Notes in the total principal amount of $10,000. See Note 22 “ Subsequent Events.” 5.75% Convertible Notes Paid/Extinguished 2013 On April 8, 2008 the Company closed the sale of $125,000 aggregate principal 5.75% Notes due March 1, 2013. The 5.75% Notes were sold in a private placement pursuant to Rule 144A under the Securities Act of 1933. The Company received net proceeds from the offering of $110,053 after underwriter fees, the convertible note hedge, proceeds from the warrant and other associated costs. In May 2011, the Company utilized proceeds from the sale of its 6.25% Notes to repurchase $98,340 principal amount of the 5.75% Notes. The outstanding balance of the 5.75% Notes was paid in cash in the first quarter of 2013. The following table details the interest components of the 5.75% Notes contained in the Company’s Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2013: Coupon interest expense $ 122 Amortization of the debt discount 114 Total included in interest expense $ 236 Capital Leases and Other Long-term Obligations The Company is a lessee under various capital leases and other financing agreements totaling $3,996 and $7,918 with a weighted average interest rate of 8.36% and 8.57% at December 31, 2015 and 2014, respectively and have maturities through 2043. Debt Issuance Costs The Company incurred debt issuance costs totaling $3,907 associated with its 2015 Senior Credit Facilities which were deferred and will be amortized to interest expense over the terms of the Agreements. Amortization of debt issuance costs were $3,960, $2,460 and $3,836 in the twelve month periods ended December 31, 2015, 2014 and 2013, respectively. Amortization of debt issuance costs included $2,446 and $1,305 classified as loss on extinguishment of debt in 2015 and 2013, respectively. Debt Discounts Accretion of debt discounts charged to interest expense or loss on extinguishment of debt in 2015, 2014 and 2013, totaled $4,641, $2,644 and $3,096, respectively. Accretion of debt discounts included $2,041 and $436 classified as loss on extinguishment of debt in 2015 and 2013, respectively. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Long-Term Liabilities | 12. OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following at December 31, 2015 and 2014: 2015 2014 Deferred GCI capacity revenue, net of current portion $ 37,338 $ — Other deferred IRU capacity revenue, net of current portion 4,420 3,335 Other deferred revenue, net of current portion 14,445 9,091 Other 9,062 11,944 $ 65,265 $ 24,370 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | 13. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table summarizes the activity in accumulated other comprehensive (loss) income for the twelve months ended December 31, 2015 and 2014: Defined Benefit Pension Interest Plans Rate Swaps Total Balance at December 31, 2013 $ (2,238 ) $ (3,371 ) $ (5,609 ) Other comprehensive (loss) income before reclassifications (1,667 ) 909 (758 ) Reclassifications from accumulated comprehensive loss to net loss 266 950 1,216 Net other comprehensive (loss) income (1,401 ) 1,859 458 Balance at December 31, 2014 (3,639 ) (1,512 ) (5,151 ) Other comprehensive (loss) income before reclassifications (4 ) 355 351 Reclassifications from accumulated comprehensive loss to net income 554 1,160 1,714 Net other comprehensive income 550 1,515 2,065 Balance at December 31, 2015 $ (3,089 ) $ 3 $ (3,086 ) The following table summarizes the reclassifications from accumulated other comprehensive (loss) income to net income (loss) for the twelve months ended December 31, 2015, 2014, and 2013, respectively: 2015 2014 2013 Amortization of defined benefit plan pension items: (1) Amortization of loss (3) $ 936 $ 451 $ 717 Income tax effect (382 ) (185 ) (296 ) After tax 554 266 421 Amortization of loss on ineffective interest rate swap: (2) Reclassification to interest expense 1,970 1,613 2,307 Income tax effect (810 ) (663 ) (949 ) After tax 1,160 950 1,358 Total reclassifications net of income tax $ 1,714 $ 1,216 $ 1,779 (1) See Note 14 “ Retirement Plans” (2) See Note 7 “ Fair Value Measurements” (3) Included in “Selling, general and administrative expense” on the Company’s Consolidated Statements of Comprehensive Income (Loss). The estimated amount of accumulated other comprehensive loss to be reclassified to interest expense within the next twelve months is zero. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 14. RETIREMENT PLANS Multi-employer Defined Benefit Plan Pension benefits for substantially all of the Company’s Alaska-based employees are provided through the Alaska Electrical Pension Fund (“AEPF”). The Company pays a contractual hourly amount based on employee classification or base compensation. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. The following table provides additional information about the AEPF multi-employer pension plan. Plan name Alaska Electrical Pension Plan Employer Identification Number 92-6005171 Pension plan number 001 Pension Protection Act zone status at the plan’s year-end: December 31, 2015 Green December 31, 2014 Green Plan subject to funding improvement plan No Plan subject to rehabilitation plan No Employer subject to contribution surcharge No Greater than 5% of Total Contributions to the Plan Company contributions to the plan for the year ended: December 31, 2015 $ 7,968 Yes December 31, 2014 $ 8,626 Yes December 31, 2013 $ 9,174 Yes Name and expiration date of collective bargaining agreements requiring contributions to the plan: Collective Bargaining Agreement Between Alaska Communications Systems and Local Union 1547 IBEW December 31, 2016 Outside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. September 30, 2016 Inside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. October 31, 2016 Special Agreement Providing for the Coverage of Certain Non-bargaining Unit Employees December 31, 2016 The Company cannot accurately project any change in the plan status in future years given the uncertainty of economic conditions or the effect of actuarial valuations versus actual performance in the market. Minimum required future contributions to the AEPF are subject to the number of employees in each classification and/or base compensation of employees in future years. Defined Contribution Plan The Company provides a 401(k) retirement savings plan covering substantially all of its employees. The plan allows for discretionary contributions as determined by the Board of Directors, subject to Internal Revenue Code limitations. The Company made a $187, $213 and $174 matching contribution in 2015, 2014 and 2013 respectively. Defined Benefit Plan The Company has a separate defined benefit plan that covers certain employees previously employed by Century Telephone Enterprise, Inc. (“CenturyTel Plan”). This plan was transferred to the Company in connection with the acquisition of CenturyTel’s Alaska properties, whereby assets and liabilities of the CenturyTel Plan were transferred to the ACS Retirement Plan (“Plan”) on September 1, 1999. Accrued benefits under the Plan were determined in accordance with the provisions of the CenturyTel Plan and upon completion of the transfer, covered employees ceased to accrue benefits under the CenturyTel Plan. On November 1, 2000, the Plan was amended to conform early retirement reduction factors and various other terms to those provided by the AEPF. The Company uses the traditional unit credit method for the determination of pension cost for financial reporting and funding purposes and complies with the funding requirements under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Company uses a December 31 measurement date for the Plan. The Plan is not adequately funded under ERISA at December 31, 2015. The Company contributed $779 to the Plan in 2015, $898 in 2014 and $360 in 2013. The Company plans to contribute approximately $782 to the Plan in 2016 and management is also estimating what additional contributions the Company may be required to make in subsequent years in the event the value of the Plan’s assets remain volatile or decline. The following is a calculation of the funded status of the ACS Retirement Plan using beginning and ending balances for 2015 and 2014 for the projected benefit obligation and the plan assets: 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 17,234 $ 15,284 Interest cost 666 674 Actuarial (gain) loss (754 ) 2,283 Benefits paid (1,052 ) (1,007 ) Benefit obligation at end of year 16,094 17,234 Change in plan assets: Fair value of plan assets at beginning of year 11,570 11,548 Actual return on plan assets (95 ) 131 Employer contribution 779 898 Benefits paid (1,052 ) (1,007 ) Fair value of plan assets at end of year 11,202 11,570 Funded status $ (4,892 ) $ (5,664 ) The Plan’s projected benefit obligation equals its accumulated benefit obligation. The 2015 and 2014 liability balance of $4,892 and $5,664 respectively, is recorded on the Consolidated Balance Sheets in “Other long-term liabilities.” The following table presents the net periodic pension expense for the Plan for 2015, 2014 and 2013: 2015 2014 2013 Interest cost $ 666 $ 664 $ 635 Expected return on plan assets (659 ) (749 ) (706 ) Amortization of loss 929 536 788 Net periodic pension expense $ 936 $ 451 $ 717 In 2016, the Company expects amortization of net gains and losses of $921. 2015 2014 Loss recognized as a component of accumulated other comprehensive loss: $ 5,249 $ 6,178 The assumptions used to account for the Plan as of December 31, 2015 and 2014 are as follows: 2015 2014 Discount rate for benefit obligation 4.30 % 3.97 % Discount rate for pension expense 3.97 % 4.49 % Expected long-term rate of return on assets 6.53 % 6.53 % Rate of compensation increase 0.00 % 0.00 % The discount rate for December 31, 2015 and 2014 was calculated using a proprietary yield curve based on above median AA rated corporate bonds. The expected long-term rate-of-return on assets rate is the best estimate of future expected return for the asset pool, given the expected returns and allocation targets for the various classes of assets. Based on risk and return history for capital markets along with asset allocation risk and return projections, the following asset allocation guidelines were developed for the Plan: Minimum Maximum Asset Category Equity securities 50 % 80 % Fixed income 20 % 50 % Cash equivalents 0 % 5 % The Plan’s asset allocations at December 31, 2015 and 2014 by asset category are as follows: 2015 2014 Asset Category Equity securities* 64 % 65 % Debt securities* 34 % 34 % Other/Cash 2 % 1 % * May include mutual funds comprised of both stocks and bonds. The fundamental investment objective of the Plan is to generate a consistent total investment return sufficient to pay Plan benefits to retired employees while minimizing the long-term cost to the Company. The long-term (10 years and beyond) Plan asset growth objective is to achieve a rate of return that exceeds the actuarial interest assumption after fees and expenses. Because of the Company’s long-term investment objectives, the Plan administrator is directed to resist being reactive to short-term capital market developments and to maintain an asset mix that is continuously rebalanced to adhere to the plan investment mix guidelines. The Plan’s investment goal is to protect the assets’ long-term purchasing power. The Plan’s assets are managed in a manner that emphasizes a higher exposure to equity markets versus other asset classes. It is expected that such a strategy will provide a higher probability of meeting the plan’s actuarial rate of return assumption over time. The following table presents major categories of plan assets as of December 31, 2015, and inputs and valuation techniques used to measure the fair value of plan assets regarding the ACS Retirement Plan: Fair Value Measurement at Reporting Date Using Total Quoted Prices Level 1 Significant Significant Asset Category Money market/cash $ 220 $ 220 $ — $ — Equity securities (Investment Funds)* International growth 1,709 1,709 — — U.S. small cap 1,458 1,458 — — U.S. medium cap 1,134 1,134 — — U.S. large cap 2,867 2,867 — — Debt securities (Investment Funds)* Certificate of deposits 1,738 1,738 — — Fixed income 2,076 2,076 — — $ 11,202 $ 11,202 $ — $ — * May include mutual funds comprised of both stocks and bonds. The benefits expected to be paid in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows: 2016 $1,046 2017 1,089 2018 1,106 2019 1,077 2020 1,088 2021-2025 5,364 Post-retirement Health Benefit Plan The Company has a separate executive post-retirement health benefit plan. On December 31, 2015, the plan was underfunded by $167 with plan assets of $119. The net periodic post-retirement cost for 2015 and 2014 was $9 and $7, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares of common stock and dilutive potential common shares equivalents outstanding. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. The Company includes dilutive stock options based on the “treasury stock method.” Due to the Company’s reported net loss for the year ended December 31, 2014, 2,345 potential common share equivalents outstanding, which consisted of restricted stock and deferred shares granted to directors, were anti dilutive. Excluded from the calculations for the year ended December 31, 2013 were options and SSARs totaling 24 which were out-of-the-money and therefore anti-dilutive. Also excluded from the calculations were shares related to the Company’s 5.75% Notes which were anti-dilutive for the twelve month period ended December 31, 2013 and shares related to the Company’s 6.25% Notes which were anti-dilutive for the twelve month period ended December 31, 2014. While it is the Company’s intent to settle the principal portion of its 6.25% Notes in cash, the Company used the “if converted” method in calculating the diluted earnings per share effect of the assumed conversion of the contingently convertible debt through December 31, 2014. Under the “if converted” method, the after tax effect of interest expense related to the convertible securities is added back to net income and the convertible debt is assumed to have been converted into common stock at the earlier of the debt issuance date or the beginning of the period. The Company’s 6.25% Notes were anti-dilutive for the twelve month period ended December 31, 2014 and were dilutive and included in the computation of dilutive EPS for the twelve months ended December 31, 2013. Effective in 2015, the Company discontinued use of the “if converted” method in calculating the diluted earnings per share in connection with the contingently convertible debt. The Company’s 6.25% Notes are convertible by the holder beginning February 1, 2018 at an initial conversion rate of 97.2668 shares of common stock per one thousand dollars principal amount of the 6.25% Notes. This is equivalent to an initial conversion price of approximately $10.28 per share of common stock. Given that the Company’s current share price is well below $10.28, the Company does not anticipate that there will be a conversion of the 6.25% Notes into equity. Effective in the first quarter of 2015, the Company determined that it has the intent and ability to settle the principal and interest payments on its 6.25% Notes in cash over time. This determination was based on (i) the Company’s improved liquidity position subsequent to the Wireless Sale, including its performance against the financial ratios defined under the terms of its then in effect 2010 Senior Credit Facility, reduced levels of debt and increased availability under its revolving credit facility; (ii) its intention to refinance its term loan facility to provide additional borrowing flexibility; and (iii) its expectations of future operating performance. In the third quarter of 2015, the Company successfully completed the aforementioned refinancing transactions which resulted in a reduction in total borrowings and provided for maturities on the Company’s term loan facilities in 2018 compared with 2016 under the 2010 Senior Credit Facility. See Note 11 “ Long-Term Obligations. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Net income (loss) attributable to Alaska Communications $ 12,954 $ (2,780 ) $ 158,471 Tax-effected interest expense attributable to convertible notes — — 5,813 Net income (loss) attributable to ACS assuming dilution $ 12,954 $ (2,780 ) $ 164,284 Weighted average common shares outstanding: Basic shares 50,247 49,334 47,092 Effect of stock-based compensation 1,121 — 530 Effect of 6.25% convertible notes — — 11,485 Diluted shares 51,368 49,334 59,107 Income (loss) per share attributable to Alaska Communications: Basic $ 0.26 $ (0.06 ) $ 3.37 Diluted $ 0.25 $ (0.06 ) $ 2.78 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. INCOME TAXES Consolidated income (loss) before income tax was as follows: 2015 2014 2013 Income (loss) before income tax $ 23,085 $ (4,567 ) $ 214,841 The income tax provision for the years ended December 31, 2015, 2014 and 2013 was comprised of the following: 2015 2014 2013 Current: Federal income tax $ 4,320 $ 217 $ — State income tax 693 43 — Total current expense 5,013 260 — Deferred: Federal, excluding operating loss carry forwards 69,774 (1,620 ) 43,301 State, excluding operating loss carry forwards 19,725 (427 ) 14,969 Change in valuation allowance — — (1,900 ) Tax benefit of operating loss carry forwards: Federal (66,285 ) — — State (18,027 ) — — Total deferred expense (benefit) 5,187 (2,047 ) 56,370 Total income tax expense (benefit) $ 10,200 $ (1,787 ) $ 56,370 The following table provides a reconciliation of the Federal statutory tax at 35% to the recorded tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013, respectively: 2015 2014 2013 Computed federal income taxes at the statutory rate $ 8,080 $ (1,598 ) $ 75,194 Expense (benefit) in tax resulting from: State income taxes (net of Federal benefit) 1,408 (278 ) 13,104 Other 263 58 (178 ) Stock-based compensation 449 31 44 Change in valuation allowance — — (1,900 ) Crest examination settlement — — (29,894 ) Total income tax expense (benefit) $ 10,200 $ (1,787 ) $ 56,370 The Company accounts for income taxes under the asset-liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided when it is “more likely than not” that the benefits of existing deferred tax assets will not be realized in a future period. At December 31, 2015, it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. Therefore, no valuation allowance is necessary. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014, respectively, are as follows: 2015 2014 Deferred tax assets: Net operating loss carry forwards $ 16,863 $ 94,435 Deferred capacity revenue 22,654 — Reserves and accruals 6,522 8,158 Intangibles and goodwill 1,765 6,694 Fair value on interest rate swaps — 1,055 Pension liability 2,010 2,304 Allowance for doubtful accounts 696 1,164 Alternative minimum tax carry forward 9,668 5,308 Other 277 1,032 Deferred tax assets after valuation allowance 60,455 120,150 Deferred tax liabilities: Debt issuance costs (1,907 ) (2,596 ) Property, plant and equipment (41,886 ) (23,999 ) AWN investment — (70,577 ) Fair value on interest rate swaps (2 ) — Total deferred tax liabilities (43,795 ) (97,172 ) Net deferred tax asset $ 16,660 $ 22,978 The Company adopted the provisions of ASU 2015-17 in 2015. ASU 2015-17 requires that all deferred tax assets and liabilities be classified as non-current on the balance sheet. In accordance with ASU 2015-17, the Company’s balance sheet at December 31, 2014 reflects the reclassification of current deferred tax assets of $104,245 and non-current deferred tax liabilities of $81,267 to non-current deferred tax assets. As of December 31, 2015, the Company has available Federal and state alternative minimum tax credits of $8,932 and $1,132, respectively. As of December 31, 2015, the Company has available Federal and state net operating loss carry forwards of $45,122 and $17,533, respectively, which have various expiration dates beginning in 2031 through 2035. In 2008, the Company acquired Crest. In June 2009, the IRS commenced an audit of Crest’s tax returns for the years ended December 31, 2006, December 31, 2007 and October 30, 2008. In April and November of 2010, the IRS issued Notices of Proposed Adjustment (“NOPAs”) with respect to the 2006, 2007 and 2008 taxable years of Crest. The NOPAs assess the Company for additional taxable income on cancellation of debt and related attribute reduction, for accuracy related penalties and for adjustments to the tax treatment of optical cables, fibers and related conduit. In accordance with the guidance in ASC 740 in the second quarter of 2010, the Company recorded $29,678 in additional income tax expense and $2,781 receivable pending resolution of the matter. The Company did not recognize any interest or penalties on the deferred tax liability. During June 2013, the Company received a “no change” letter from the IRS covering all of the issues and tax years of Crest. As a result, the Company reversed the prior recorded items and recognized a tax benefit of $29,894 during the quarter ending June 30, 2013. The Company files consolidated income tax returns for Federal and state purposes in addition to separate tax returns of certain subsidiaries in multiple state jurisdictions. As of December 31, 2015, the Company is not under examination by any income tax jurisdiction. The Company is no longer subject to examination for years prior to 2012. The Company accounts for income tax uncertainties using a threshold of “more-likely-than-not” in accordance with the provisions of ASC Topic 740, Income Taxes |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | 17. STOCK INCENTIVE PLANS Under the Company’s stock incentive plan, Alaska Communications, through the Compensation and Personnel Committee of its Board of Directors, may grant stock options, restricted stock, stock appreciation rights and other awards to officers, employees, consultants, and non-employee directors. Upon the effective date of the Alaska Communications Systems Group, Inc. 2011 Incentive Award Plan, as amended and restated on June 30, 2014, (“2011 Incentive Award Plan”), the Alaska Communications Systems Group, Inc. 1999 Stock Incentive Plan and the ACS Group, Inc. 1999 Non-Employee Director Stock Compensation Plan, (together the “Prior Plans”) were retired. All future awards will be granted from the 2011 Incentive Award Plan. The Alaska Communications Systems Group, Inc. 2012 Employee Stock Purchase Plan (“2012 ESPP”) was approved by the Company’s shareholders in June 2012 and the ACS 1999 Employee Stock Purchase Plan (“1999 ESPP”) was retired on June 30, 2012. References to “stock incentive plans” include, as applicable, the 2011 Incentive Award Plan, the 2012 ESPP, the 1999 ESPP and the Prior Plans. An aggregate of 19,210 shares of the Company’s common stock have been authorized for issuance under its stock incentive plans. Stock-based compensation expense is charged to “Selling, general and administrative” expense in the Consolidated Statements of Comprehensive Income (Loss). 2011 Incentive Award Plan On June 10, 2011, Alaska Communications shareholders approved the 2011 Incentive Award Plan, which was amended and restated on June 30, 2014 and which terminates in 2021. Following termination, all shares granted under this plan, prior to termination, will continue to vest under the terms of the grant when awarded. All remaining unencumbered shares of common stock previously allocated to the Prior Plans were transferred to the 2011 Incentive Award Plan. In addition, to the extent that any outstanding awards under the Prior Plans are forfeited or expire or such awards are settled in cash, such shares will again be available for future grants under the 2011 Incentive Award Plan. The Company grants Restricted Stock Units and Performance Stock Units as the primary equity based incentive for executive and certain non-union represented employees. Stock-Settled Stock Appreciation Rights and Stock Options (SSARs) SSARs were issued to certain former named executive officers in 2008 and 2009. The SSARs vested ratably through April 2011 and had a term of five years. All SSARs have fully vested and have been exercised or expired as of December 2013. No SSARs have been issued since 2009 and no stock options have been granted to employees since 2005. All remaining SSARs and options have expired and the Company had no option or SSAR grants outstanding at December 31, 2015. Restricted Stock Units, Long-term Incentive Awards and Non-employee Director Stock Compensation Restricted Stock Units (“RSU”) issued prior to December 31, 2010 vest ratably over three, four or five years, RSUs issued in 2011 vest ratably over three years, and RSUs granted in 2012 vest in one year or ratably over three years. Long-term incentive awards (“LTIP”) were granted to executive management annually through 2010. The LTIP awards cliff vest in five years with accelerated vesting in three years if cumulative three year profitability criteria are met. Since January 2008, the Company has maintained a policy which requires that non-employee directors receive a portion of their annual retainer in the form of Alaska Communications stock. Non-employee director stock compensation vests when granted. The directors make an annual election on whether to have the stock issued or to have it deferred. The following table summarizes the RSU, LTIP and non-employee director stock compensation activity for the year ended December 31, 2015: Number of Weighted Grant-Date Value Nonvested at December 31, 2014 1,299 $ 2.30 Granted 1,224 1.84 Vested (704 ) 2.66 Canceled or expired (633 ) 1.89 Nonvested at December 31, 2015 1,186 $ 1.83 Performance Based Units PSUs vest ratably over three years beginning at the grant date, subject to certain Company financial targets being met and approval of the Compensation and Personnel Committee of the Board of Directors. The following table summarizes PSU activity for the year ended December 31, 2015: Number of Weighted Grant-Date Value Nonvested at December 31, 2014 790 $ 1.78 Granted 1,118 1.80 Vested (257 ) 1.70 Canceled or expired (667 ) 1.84 Nonvested at December 31, 2015 984 $ 1.78 Valuation Assumptions Assumptions used for valuation of equity instruments awarded during the twelve months ended December 31, 2015, 2014 and 2013 are as follows: 2015 2014 2013 Restricted stock: Risk free rate 0% 0.0% - 0.23% 0.03% - 0.18% Quarterly dividend $— $— $— Expected, per annum, forfeiture rate 9% 9% 0% - 9% Selected Information on Equity Instruments and Share-Based Compensation Selected information on equity instruments and share-based compensation under the plan for the years ended December 31, 2015, 2014 and 2013 is as follows: Years Ended December 31, 2015 2014 2013 Total compensation cost for share-based payments $ 2,008 $ 2,511 $ 2,860 Weighted average grant-date fair value of equity instruments granted $ 1.82 $ 1.87 $ 1.77 Total fair value of shares vested during the period $ 2,615 $ 2,935 $ 5,011 Unamortized share-based payments $ 1,421 $ 1,392 $ 1,748 Weighted average period in years to be recognized as expense 1.39 1.45 1.75 Share-based compensation expense is classified as “Selling, general and administrative expense” in the Company’s Consolidated Statements of Comprehensive Income (Loss). The Company purchases, from shares authorized under the 2011 Incentive Award Plan, sufficient vested shares to cover minimum employee payroll tax withholding requirements upon the vesting of restricted stock. From time to time the Company also purchases sufficient vested shares to cover minimum employee payroll tax withholding requirements. The Company expects to repurchase approximately 286 shares in 2016. This amount is based upon an estimation of the number of shares of restricted stock awards expected to vest during 2016. Alaska Communications Systems Group, Inc. 2012 Employee Stock Purchase Plan The Alaska Communications Systems Group, Inc. 2012 Employee Stock Purchase Plan was approved by the Company’s shareholders in June 2012 and replaced the Alaska Communications Systems Group, Inc. 1999 Employee Stock Purchase Plan, as amended. The 2012 ESPP will terminate upon the earlier of (i) the last exercise date prior to the tenth anniversary of the adoption date, unless sooner terminated in accordance with the 2012 ESPP; or (ii) the date on which all purchase rights are exercised in connection with a change in ownership of the Company. The terms of the 2012 ESPP are similar to those of the 1999 ESPP. Under the terms of the 2012 ESPP, all Alaska Communications employees and all employees of designated subsidiaries generally will be eligible to participate in the 2012 ESPP, other than employees whose customary employment is not more than 20 hours per week and five months in a calendar year, or who are ineligible to participate due to restrictions under the Internal Revenue Code. A participant in the 2012 ESPP will be granted a purchase right to acquire shares of common stock at six-month intervals on an ongoing basis, subject to the continuing availability of shares under the 2012 ESPP. Each participant may authorize periodic payroll deductions in any multiple of 1% (up to a maximum of 15%) of eligible compensation to be applied to the acquisition of common stock at semiannual intervals. The 2012 ESPP imposes certain limitations upon a participant’s rights to acquire common stock, including (i) purchase rights granted to a participant may not permit the individual to purchase more than $25 worth of common stock for each calendar year in which those purchase rights are outstanding at any time; (ii) purchase rights may not be granted to any individual if the individual would, immediately after the grant, own or hold outstanding options or other rights to purchase, stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or any of its subsidiaries; and (iii) no participant may purchase more than 10 shares of common stock during any six month offering period. The offering dates are January 1 and July 1 and the purchase dates are June 30 and December 31. The initial purchase date under the 2012 ESPP was December 31, 2012. Shares are purchased on the open market or issued from authorized but unissued shares on behalf of the participant on the purchase date. No participant will have any shareholder rights with respect to the shares covered by their purchase rights until the shares are actually purchased on the participant’s behalf. No adjustments will be made for dividends, distributions or other rights for which the record date is prior to the date of the actual purchase. The Company reserved 1,500 shares of its common stock for issuance under the 2012 ESPP, which were also available for issuance for the January 1, 2012 through June 30, 2012 offering period under the 1999 ESPP. Any shares issued to employees in respect to the January 1, 2012 through June 30, 2012 offering period under the 1999 ESPP reduced (on a one for one basis) the aggregate number of shares available for issuance thereafter under the 2012 ESPP. The fair value of each purchase right under the 2012 ESPP is charged to compensation expense over the offering period to which the right pertains, and is reflected in total compensation cost for share-based payments in the above table. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 18. SUPPLEMENTAL CASH FLOW INFORMATION The following table presents supplemental non-cash transaction and nonmonetary exchange information for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Supplemental Non-cash Transactions: Capital expenditures incurred but not paid at December 31 $ 11,600 $ 6,678 $ 8,612 Property acquired under capital leases $ 20 $ 1,877 $ 171 Additions to ARO asset $ 254 $ 369 $ 229 Accrued acquisition purchase price $ — $ 291 $ — Exchange of debt with common stock $ — $ — $ 6,000 Non-cash acquisition, net of cash received $ — $ 956 $ — Assets contributed to joint venture by noncontrolling interest $ 922 $ — $ — Note receivable on sale of asset $ 2,650 $ — $ — Nonmonetary Exchanges: Property, plant and equipment $ 710 $ — $ — Deferred revenue $ (2,310 ) $ — $ — Prepaid expenses $ 1,600 $ — $ — IRUs received $ 2,765 $ — $ — IRUs relinquished $ (2,765 ) $ — $ — |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | 19. BUSINESS SEGMENTS The Company operates its business under a single reportable segment. The Company’s chief operating decision maker assesses the financial performance of the business as follows: (i) revenues are managed on the basis of specific customers and customer groups; (ii) costs are managed and assessed by function and generally support the organization across all customer groups or revenue streams; (iii) profitability is assessed at the consolidated level; and (iv) investment decisions and the assessment of existing assets are based on the support they provide to all revenue streams. The following table presents service and product revenues from external customers for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Service Revenue Business and wholesale customers Voice $ 21,969 $ 22,499 $ 22,947 Broadband 50,007 43,783 40,027 Managed IT services 3,316 3,492 — Other 8,089 7,104 7,659 Wholesale 36,792 33,043 30,047 Business and wholesale service revenue 120,173 109,921 100,680 Consumer customers Voice 13,530 14,932 16,818 Broadband 25,050 24,841 22,108 Other 1,341 1,563 1,739 Consumer service revenue 39,921 41,336 40,665 Total Service Revenue 160,094 151,257 141,345 Growth in Service Revenue 5.8 % 7.0 % Growth in Broadband Service Revenue 9.4 % 10.4 % Other Revenue Equipment sales and installations 6,382 5,321 2,083 Access 33,644 35,323 37,033 High cost support 19,682 23,192 18,776 Total Service and Other Revenue 219,802 215,093 199,237 Growth in service and other revenue 2.2 % 8.0 % Growth excluding equipment sales 1.7 % 6.4 % Wireless and AWN related Revenue Service revenue, equipment sales and other 6,300 77,054 81,093 Foreign roaming and wireless backhaul — — 46,064 Transition services 4,769 — — CETC 1,654 19,565 21,019 Amortization of deferred AWN capacity revenue 292 3,151 1,511 Total Wireless and AWN Related Revenue 13,015 99,770 149,687 Total Revenue $ 232,817 $ 314,863 $ 348,924 The Company’s revenues are derived entirely from external customers in the United States and its long-lived assets are held entirely in the United States. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. COMMITMENTS AND CONTINGENCIES The Company enters into purchase commitments with vendors in the ordinary course of business, including minimum purchase agreements. The Company also has long-term purchase contracts with vendors to support the on-going needs of its business. These purchase commitments and contracts have varying terms and in certain cases may require the Company to buy goods and services in the future at predetermined volumes and at fixed prices. The Company is involved in various claims, legal actions and regulatory proceedings arising in the ordinary course of business and has recorded a liability for estimated litigation costs of $647 at December 31, 2015 against certain current claims and legal actions. The Company also faces contingencies that are reasonably possible to occur, however, they cannot currently be estimated. The Company believes that the disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, comprehensive income or cash flows. It is the Company’s policy to expense costs associated with loss contingencies, including any related legal fees, as they are incurred. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | 21. SELECTED QUARTERLY FINANCIAL INFORMATION (Unaudited – See accompanying accountant’s report) First Second Third Fourth Total Quarter Quarter Quarter Quarter Year 2015 Operating revenues $ 65,786 $ 55,665 $ 54,735 $ 56,631 $ 232,817 Gross profit 34,520 25,587 30,062 30,525 120,694 Operating income (loss) 39,313 (4,375 ) 8,178 4,630 47,746 Net income (loss) 16,217 (4,860 ) 1,202 326 12,885 Net income (loss) attributable to Alaska Communications 16,217 (4,841 ) 1,239 339 12,954 Net income (loss) per share attributable to Alaska Communications: Basic 0.32 (0.10 ) 0.02 0.01 0.26 Diluted 0.32 (0.10 ) 0.02 0.01 0.25 2014 Operating revenues $ 78,331 $ 80,558 $ 78,465 $ 77,509 $ 314,863 Gross profit 33,513 35,757 33,515 31,108 133,893 Operating income (loss) 8,250 10,726 11,668 (884 ) 29,760 Net (loss) income (385 ) 1,085 1,878 (5,358 ) (2,780 ) Net (loss) income attributable Alaska Communications (385 ) 1,085 1,878 (5,358 ) (2,780 ) Net (loss) income per share attributable to Alaska Communications: Basic (0.01 ) 0.02 0.04 (0.11 ) (0.06 ) Diluted (0.01 ) 0.02 0.04 (0.11 ) (0.06 ) Operating income (loss), net income (loss), net income (loss) attributable to Alaska Communications and per share amounts in 2015 reflect the gain before income taxes on the Wireless Sale of $39,719, $1,421, $7,092 and $48,232 in the first quarter, second quarter, third quarter and total year, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. SUBSEQUENT EVENTS On January 29, 2016, the Company repurchased a portion of its 6.25% Notes in the total principal amount of $10,000 for cash consideration of $9,750. The net cash settlement of $10,053 included accrued interest and transaction fees totaling $303. The Company recorded a loss on extinguishment of debt of $374, including the write off of unamortized discounts, the equity component, debt issuance costs and the payment of third-party fees, net of the $250 discount. |
Description of Company and Su30
Description of Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and footnotes include all accounts and subsidiaries of the Company in which it maintains a controlling financial interest. Intercompany accounts and transactions have been eliminated. Investments in entities where the Company is able to exercise significant influence, but not control, are accounted for by the equity method. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within either the Company’s investment account or the account balance to which the transaction specifically relates (e.g., construction of fixed assets). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by the Company. The Company has consolidated the financial results of the joint venture with QHL based on its determination that, for accounting purposes, it holds a controlling financial interest in the joint venture and is the primary beneficiary of this variable interest entity. The Company has accounted for and reported QHL’s 50% ownership interest in the joint venture as a noncontrolling interest. See Note 3 “ Joint Venture |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among the significant estimates affecting the financial statements are those related to the realizable value of accounts receivable, assets held-for-sale, and long-lived assets, the value of derivative instruments, deferred capacity revenue, legal contingencies, stock-based compensation and income taxes. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes is reasonable under the circumstances. Assumptions are adjusted as facts and circumstances dictate. More volatile capital markets, uncertainty on interest rates, and declines in crude oil pricing have combined to increase the uncertainty in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results may differ significantly from those estimates. Changes in those estimates will be reflected in the financial statements of future periods. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, the Company generally considers all highly liquid investments with a maturity at acquisition of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash as of December 31, 2015 consists of $1,824 held in certificates of deposits as required under the terms of certain contracts to which the Company is a party. When the restrictions are lifted, the Company will transfer these funds into its operating accounts. |
Trade Accounts Receivable and Bad Debt Reserves | Trade Accounts Receivable and Bad Debt Reserves Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company does not have any off-balance sheet credit exposure related to its customers. The Company evaluates its bad debt as a single portfolio since most of its subsidiaries primarily operate within Alaska and are subject to the same economic and risk conditions across industry segments and geographic locations. Bad debt reserves against uncollectible receivables are established and incurred during the period. These estimates are derived through an analysis of account aging profiles and a review of historical recovery experience. Receivables are charged off against the allowance when management confirms it is probable amounts will not be collected. Subsequent recoveries, if any, are credited to the allowance. The Company records bad debt expense as a component of “Selling, general and administrative expense” in the Consolidated Statements of Comprehensive Income (Loss). |
Materials and Supplies | Materials and Supplies Materials and supplies are carried in inventory at the lower of moving average cost or market. Cash flows related to the sale of inventory are included in operating activities in the Company’s Consolidated Statements of Cash Flows. |
Assets and Liabilities Held-for-Sale | Assets and Liabilities Held-for-Sale Assets and liabilities held-for-sale represented the assets and liabilities that were sold in connection with the Company’s sale of its wireless operations. At December 31, 2014, these assets and liabilities were recorded at the lower of carrying value or net realizable value which approximated the consideration expected to be received from the sale of those assets and liabilities. Impairment, if applicable, on property, plant and equipment classified as held-for-sale was recorded to reduce the carrying value to its fair value less cost to sell. Depreciation expense on the property, plant and equipment and capital leases identified as held-for-sale was discontinued on December 4, 2014, with the exception of certain buildings accounted for as capital leases which were in use beyond that date. |
Exit Obligations | Exit Obligations In connection with the decision to sell its wireless operations, the Company incurred certain costs associated with the wind-down of its retail wireless operations that met the criteria for reporting as exit obligations. These costs were incurred in the fourth quarter of 2014 through 2015. The accounting policies for these costs were as follows: • Employee termination costs associated with reductions in retail stores, contact center, and other support organizations, and termination costs associated with synergies and future cost reductions resulting from the Company becoming a more focused broadband and managed IT services company were accrued equal to the payout amount, undiscounted due to the short duration, and amortized over the remaining required service period. These termination benefits included costs accounted for under both Accounting Standards Codification (“ASC”) 420, “Exit or Disposal Costs Obligations (“ASC 420”) and ASC 712, “Compensation – Nonretirement Postemployment Benefits” (“ASC 712”). • Contract termination costs were accrued for retail store leases and a software contract where we incurred a charge to terminate the contract prior to their stated maturity. These costs were measured equal to the actual cost to terminate the contract and were recognized at the date the contract was terminated. • For retail store leases that were vacated, the costs were measured equal to the fair value of the remaining lease payments and recognized when the Company had ceased to use the property. • Costs associated with marking wireless handset and accessory inventory held for sale to fair value were expensed in the fourth quarter of 2014 and are included in “Cost of service and sales, non-affiliate” in the Company’s Consolidated Statement of Comprehensive Income (Loss). • Other associated costs that met the criteria of an exit activity were accrued when incurred. |
Property, Plant and Equipment | Property, Plant and Equipment Telephone property, plant and equipment are stated at historical cost of construction including certain capitalized overhead and interest charges. Renewals and betterments of telephone plant are capitalized, while repairs and renewals of minor items are charged to cost of services and sales as incurred. The Company uses a group composite depreciation method in accordance with industry practice. Under this method, telephone plant, with the exception of land and capital leases, retired in the ordinary course of business, less salvage, is charged to accumulated depreciation with no gain or loss recognized. Non-telephone plant is stated at historical cost including certain capitalized overhead and interest charges, and when sold or retired, a gain or loss is recognized. Depreciation of property is provided on the straight-line method over estimated service lives ranging from 3 to 50 years. The Company is the lessee of equipment and buildings under capital leases expiring in various years through 2034. The assets and liabilities under capital leases are initially recorded at the lower of the present value of the minimum lease payments or the fair value of the assets at the inception of the lease. The assets are amortized over the shorter of their related lease terms or the estimated productive lives. Amortization of assets under capital leases is included in depreciation and amortization expense. The Company is also the lessee of various land, building and personal property under operating lease agreements for which expense is recognized on a monthly basis. Increases in rental rates are recorded as incurred which approximates the straight-line method. The Company capitalizes interest charges associated with construction in progress based on a weighted average interest cost calculated on the Company’s outstanding debt. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records liabilities for obligations related to the retirement and removal of long-lived assets, consisting primarily of batteries. The Company records, as liabilities, the estimated fair value of asset retirement obligations on a discounted cash flow basis when incurred, which is typically at the time the asset is installed or acquired. The obligations are conditional on the occurrence of future events. Uncertainty about the timing or settlement of the obligation is factored into the measurement of the liability. Amounts recorded for the related assets are increased by the amount of these obligations. Over time, the liabilities increase due to the change in their present value, the potential changes in assumptions or inputs, and the initial capitalized assets decline as they are depreciated over the useful life of the related assets. The liabilities are eventually extinguished when the asset is taken out of service. |
Indefeasible Rights of Use | Indefeasible Rights of Use Indefeasible rights of use (“IRU”) consist of agreements between the Company and a third party whereby one party grants access to a portion of its fiber network to the other party, or receives access to a portion of the fiber network of the other party. The access may consist of individually specified fibers or a specified number of fibers on the network. Certain of the Company’s IRU agreements consist of like kind exchanges for which the value of the access given up is determined to be equal to the value received. Cash may or may not be exchanged depending on the terms of the agreement. For IRU agreements in which an equal amount of cash is received and paid and the transaction is determined to not have commercial substance, revenue and expense is not recognized in connection with the cash exchanged. For IRU agreements that are not like kind exchanges and for which the Company receives or pays cash, revenue and expense are recognized over the term of the agreement. |
Non-operating Assets | Non-operating Assets The Company periodically evaluates the fair value of its non-current investments and other non-operating assets against their carrying value whenever market conditions indicate a change in that fair value. Any changes relating to declines in the fair value of non-operating assets are charged to non-operating expense under the caption “ Other |
Variable Interest Entities | Variable Interest Entities The Company’s ownership interest in ACS-Quintillion JV, LLC is a variable interest entity as defined in ASC 810, “Consolidation.” The Company consolidated the financial results of this entity based on its determination that, for accounting purposes, it holds a controlling financial interest in, and is the primary beneficiary of, the entity. The Company has accounted for and reported the interest of this entity’s other owner as a noncontrolling interest. Note 3 “ Joint Venture |
Equity Method of Accounting | Equity Method of Accounting Investments in entities where the Company is able to exercise significant influence, but not control, are accounted for by the equity method. Under this method, our equity investments are carried at acquisition cost, increased by the Company’s proportionate share of the investee’s comprehensive income, and decreased by the investee’s comprehensive losses up to our proportional ownership interest and cash distributions. The Company evaluates its investments in equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. At December 31, 2015, the Company had no equity method investments. |
Deferred Capacity Revenue | Deferred Capacity Revenue Deferred capacity liabilities are established for usage rights on the Company’s network provided to third parties. These liabilities are established at fair value and amortized to revenue on a straight line basis over the contractual life of the relevant contract. These liabilities included certain network usage rights necessary for AWN to operate the Alaska network that were eliminated in connection with the Company’s sale of its wireless operations. A new deferred capacity revenue liability for future services to be provided to GCI was established and will be amortized over the contract life of up to 30 years. |
Goodwill | Goodwill Goodwill is assessed for impairment annually, or more frequently if events or changes in circumstances indicate potential impairment. The Company may first assess qualitative factors to determine whether it is more-likely-than-not that the carrying value of its single reporting unit exceeds its fair value. If this assessment indicates that it is more-likely-than-not that the carrying value of the reporting unit exceeds its fair value, a two-step quantitative assessment will be completed. The first step consists of comparing the carrying value of the reporting unit with its estimated fair value. The Company determines the estimated fair value of its reporting unit utilizing a discounted cash flow valuation technique. Significant estimates used in the valuation include estimates of future cash flows, both future short-term and long-term growth rates and the estimated cost of capital for purposes of determining a discount factor. If the carrying value of the reporting unit exceeds its estimated fair value, the Company will determine the implied fair value of its goodwill and an impairment loss will be recognized to the extent the carrying value of goodwill exceeds the implied fair value. The carrying value of the Company’s goodwill, net of accumulated impairment, was zero at December 31, 2015. |
Long-lived Asset Impairment | Long-lived Asset Impairment Long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company will compare undiscounted cash flows expected to be generated by that asset to its carrying amount. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals. Impairment is displayed in the caption “Operating expenses” in the Company’s Consolidated Statements of Comprehensive Income (Loss). |
Debt Issuance Costs and Discounts | Debt Issuance Costs and Discounts Debt issuance costs are capitalized and amortized to interest expense using the effective interest method over the term of the related instruments. Debt discounts are accreted to interest expense using the effective interest method. Debt issuance costs and debt discounts are presented as a direct deduction from the carrying amount of debt on the Company’s Consolidated Balance Sheet. |
Preferred Stock | Preferred Stock The Company has 5,000 shares of $0.01 par value preferred stock authorized, none of which were issued or outstanding at December 31, 2015 and 2014. |
Revenue Recognition | Revenue Recognition Substantially all recurring non-usage sensitive service revenues are billed one month in advance and are deferred until earned. Non-recurring and usage sensitive revenues are billed in arrears and are recognized when earned. Revenue is recognized on the sale of equipment when the equipment is installed. Certain of the Company’s bundled products and services have been determined to be revenue arrangements with multiple deliverables. Total consideration received in these arrangements is allocated and measured using units of accounting within the arrangement based on relative fair values. Prior to February 2, 2015, wireless offerings included wireless devices and service contracts sold together in the Company’s stores and agent locations. The revenue for the device and accessories associated with these direct and indirect sales channels were recognized at the time the related wireless device was sold and was classified as equipment sales. Monthly service revenue from the majority of the Company’s customer base is recognized as services are rendered. Revenue earned from the Company’s wireless Lifeline customer base was less certain and was therefore recognized on the cash basis as payments were received. |
Concentrations of Risk | Concentrations of Risk Cash is maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits and the Company enters into arrangements to collateralize these amounts with securities of the underlying financial institutions. Generally, these deposits may be redeemed upon demand. The Company has not experienced any losses on such deposits. The Company also depends on a limited number of suppliers and vendors for equipment and services for its network. The Company’s subscriber base and operating results could be adversely affected if these suppliers experience financial or credit difficulties, service interruptions, or other problems. As of December 31, 2015, approximately 56% of the Company’s employees are represented by the International Brotherhood of Electrical Workers, Local 1547 (“IBEW”). The Master Collective Bargaining Agreement (“CBA”) between the Company and the IBEW expires on December 31, 2016. The CBA provides the terms and conditions of employment for all IBEW represented employees working for the Company in the state of Alaska and has significant economic impacts on the Company as it relates to wage and benefit costs and work rules that affect our ability to provide superior service to our customers. The Company considered relations with the IBEW to be stable in 2015; however any deterioration in the relationship with the IBEW would have a negative impact on the Company’s operations. The Company provides voice, broadband and managed IT services to its customers throughout Alaska. Accordingly, the Company’s financial performance is directly influenced by the competitive environment in Alaska, and by economic factors specifically in Alaska. The most significant economic factor is the level of Alaskan oil production and the per barrel price of relevant crude oil. A significant majority of the state’s unrestricted revenue comes from taxes assessed upon the production of this resource, and the price of crude oil impacts the level of investment by resource development companies. The recent drop in crude oil prices is resulting in the State of Alaska reducing its spending, which is expected to have a dampening impact on the overall state economy. Other important factors influencing the Alaskan economy include the level of tourism, government spending, and the movement of United States military personnel. Any deterioration in these factors, particularly over a sustained period of time, would likely have a negative impact on the Company’s performance. As an entity that relies on the Federal Communications Commission (“FCC”) and state regulatory agencies to provide stable funding sources to provide services in high cost areas, the Company is also impacted by any changes in regulations or future funding mechanisms that are being established by these regulatory agencies. In 2015, 9.0% of the Company’s total service and other revenues were derived from high cost support. Funding mechanisms for high cost loop support are undergoing substantial changes with the FCC that will impact our level of funding as well as future obligations we must meet as a condition to that funding. Additionally, the Company considers the vulnerabilities of its network and IT systems to various cyber threats. While the Company has implemented several mitigating policies, technological safeguards and some insurance coverage, it is not possible to prevent every possible threat to its network and IT systems from deliberate cyber related attacks. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense totaled $4,065, $4,741 and $5,918 in 2015, 2014 and 2013, respectively and is included in “Selling, general and administrative expense” in the Company’s Consolidated Statements of Comprehensive Income (Loss). |
Income Taxes | Income Taxes The Company utilizes the asset-liability method of accounting for income taxes. Under the asset-liability method, deferred taxes reflect the temporary differences between the financial and tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that management believes it is more-likely-than-not that such deferred tax assets will not be realized. The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. The Company records interest and penalties for underpayment of income taxes as income tax expense. |
Taxes Collected from Customers and Remitted to Government Authorities | Taxes Collected from Customers and Remitted to Government Authorities The Company excludes taxes collected from customers and payable to government authorities from revenue. Taxes payable to government authorities are presented as a liability on the Consolidated Balance Sheets. |
Regulatory Accounting and Regulation | Regulatory Accounting and Regulation Certain activities of the Company are subject to rate regulation by the FCC for interstate telecommunication service and the Regulatory Commission of Alaska (“RCA”) for intrastate and local exchange telecommunication service. The Company, as required by the FCC, accounts for such activity separately. Long distance services of the Company are subject to regulation as a non-dominant interexchange carrier by the FCC for interstate telecommunication services and the RCA for intrastate telecommunication services. Wireless, Internet and other non-common carrier services are not subject to rate regulation. |
Derivative Financial Instruments | Derivative Financial Instruments The Company does not enter into derivative contracts for speculative purposes. The Company recognizes all asset or liability derivatives at fair value. The accounting for changes in fair value is contingent on the intended use of the derivative and its designation as a hedge. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in fair value either offset the change in fair value of the hedged assets, liabilities or firm commitments through earnings, or are recognized in “Other comprehensive income (loss)” until the hedged transaction is recognized in earnings. On the date a derivative contract is entered into, the Company designates the derivative as either a fair value or cash flow hedge. The Company formally assesses, both at the hedge’s inception and on an on-going basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair values or cash flows of hedged items. If the Company determines that a derivative is not highly effective as a hedge or that it has ceased to be highly effective, the Company discontinues hedge accounting prospectively. The change in a derivative’s fair value related to the ineffective portion of a hedge is immediately recognized in earnings. Amounts recorded to accumulated other comprehensive loss from the date of the derivative’s inception to the date of ineffectiveness are amortized to earnings over the remaining term of the hedged item. If the hedged item is settled prior to its originally scheduled date, any remaining accumulated comprehensive loss associated with the derivative instrument is reclassified to earnings. Termination of a derivative instrument prior to its scheduled settlement date may result in charges for termination fees. |
Dividend Policy | Dividend Policy The Company’s dividend policy is set by the Company’s Board of Directors and is subject to the terms of its 2015 Senior Credit Facilities and the continued current and future performance and liquidity needs of the Company. Dividends on the Company’s common stock are not cumulative to the extent they are declared. The Board has not authorized the payment of a dividend since 2012, and has not updated its dividend policy. |
Share-based Payments | Share-based Payments Restricted Stock The Company determines the fair value of restricted stock based on the number of shares granted and the quoted market price of the Company’s common stock on the date of grant, discounted for estimated dividend payments that do not accrue to the employee during the vesting period. Compensation expense is recognized over the vesting period and adjustments are charged or credited to expense. Performance Share Units (“PSUs”) The Company measures the fair value of each new PSU at the grant date. Adjustments each reporting period are based on changes to the expected achievement of the performance goals or if the PSUs otherwise vest, expire, or are determined by the Compensation Committee of the Company’s Board of Directors to be unlikely to vest prior to expiration. Adjustments are charged or credited to expense. Compensation expense is recorded over the expected performance period. Employee Stock Purchase Plan (“ESPP”) The Company makes payroll deductions of from 1% to 15% of compensation from employees who elect to participate in the ESPP. A liability accretes during the 6-month offering period and at the end of the offering period (June 30 and December 31), the Company issues the shares from the 2012 Employee Stock Purchase Plan (“2012 ESPP”). Compensation expense is recorded based upon the estimated number of shares to be purchased multiplied by the discount rate per share. Tax Treatment Stock-based compensation is treated as a temporary difference for income tax purposes and increases deferred tax assets until the compensation is realized for income tax purposes. To the extent that realized tax benefits exceed the book based compensation, the excess tax benefit is credited to additional paid in capital. |
Pension Benefits | Pension Benefits Multi-employer Defined Benefit Plan Pension benefits for substantially all of the Company’s Alaska-based employees are provided through the Alaska Electrical Pension Fund. The Company pays a contractual hourly amount based on employee classification or base compensation. The accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. Defined Benefit Plan The ACS Retirement Plan, which is the Company’s sole single-employer defined benefit plan and covers a limited number of employees previously employed by a predecessor to one of our subsidiaries, is frozen. The Company recognizes the under-funded status of this plan as a liability on its balance sheet and recognizes changes in that funded status in the year in which the changes occur. The ACS Retirement Plan’s accumulated benefit obligation is the actuarial present value, as of the Company’s December 31 measurement date, of all benefits attributed by the pension benefit formula. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees or survivors and average years of service rendered. It is measured based on assumptions concerning future interest rates and future employee compensation levels. Unrecognized prior service credits and costs and net actuarial gains and losses are recognized as a component of other comprehensive income (loss), net of tax. Defined Contribution Plan The Company provides a 401(k) retirement savings plan covering substantially all of it employees. Discretionary company-matching contributions are determined by the Board of Directors. |
Earnings per Share | Earnings per Share The Company computes earnings per share based on the weighted number of shares of common stock and dilutive potential common share equivalents outstanding. This includes all issued and outstanding share-based payments. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In the third quarter of 2015, the Company adopted the provisions of Accounting Standards Update (“ASU”) No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs Long-Term Obligations In the fourth quarter of 2015, the Company adopted the provisions of ASU No. 2015-17, “ Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes Income Taxes |
Accounting Pronouncements Issued Not Yet Adopted | Accounting Pronouncements Issued Not Yet Adopted In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, “ Consolidation (Topic 810), Amendments to the Consolidation Analysis” In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date” In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. |
Fair Value Measurements | The Company has developed valuation techniques based upon observable and unobservable inputs to calculate the fair value of non-current monetary assets and liabilities. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1- Quoted prices for identical instruments in active markets. • Level 2- Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3- Significant inputs to the valuation model are unobservable. |
Sale of Wireless Operations (Ta
Sale of Wireless Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Gain on Sale of Assets | The following table represents the calculation of the gain: Consideration received: Investment $ 266,000 Cash 100,000 Total consideration received 366,000 Consideration provided: Net intangible and tangible assets 90,500 Deferred AWN capacity revenue 64,627 Total consideration provided 155,127 Gain on disposal of assets $ 210,873 |
Schedule of Reconciliation of Major Classes of Assets and Liabilities Held for Sale | The following table provides a reconciliation of the major classes of assets and liabilities included on the Consolidated Balance Sheet under the captions “Current assets held-for-sale,” “Non-current assets held-for-sale,” “Current liabilities held-for-sale” and “Non-current liabilities held-for-sale” at December 31, 2014. There were no assets or liabilities held for sale at December 31, 2015. Current assets: Accounts receivable, non-affiliates, net $ 7,607 Materials and supplies 1,958 Total current assets held-for-sale $ 9,565 Property, plant and equipment, net of accumulated depreciation of $8,835 14,664 Total non-current assets held-for-sale $ 14,664 Current liabilities: Current portion of long-term obligations $ 287 Accounts payable, accrued and other current liabilities, non-affiliates 301 Accounts payable, accrued and other current liabilities, affiliates, net 14,411 Advance billings and customer deposits 3,729 Total current liabilities held-for-sale $ 18,728 Long-term obligations, net of current portion 2,107 Total non-current liabilities held-for-sale $ 2,107 |
Schedule of Company's Current Obligations for Exit Activities | The following table summarizes the Company’s current obligations for exit activities, including costs accounted for under both ASC 420 and ASC 712, as of and for the twelve month periods ended December 31, 2015 and 2014: Labor Contract Other Total Balance at December 31, 2013 $ — $ — $ — $ — Charged to expense 490 — 634 1,124 Paid and/or settled — — (634 ) (634 ) Balance at December 31, 2014 $ 490 $ — $ — $ 490 Charged to expense 6,485 3,966 294 10,745 Paid and/or settled (5,752 ) (3,966 ) (294 ) (10,012 ) Balance at December 31, 2015 $ 1,223 $ — $ — $ 1,223 |
Sale of Wireless Operations [Member] | |
Components of Gain on Sale of Assets | The following table provides the calculation of the gain: Consideration: Cash $ 44,688 Principal payment on 2010 Senior Credit Facility 240,472 Total consideration 285,160 Carrying value of assets and liabilities sold: Equity investment in AWN 250,192 Assets and liabilities, net 5,121 Net change in deferred capacity revenue (18,385 ) Total carrying value of assets and liabilities sold 236,928 Gain on disposal of assets $ 48,232 |
Joint Venture (Tables)
Joint Venture (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Schedule of Certain Financial Information about Joint Venture Included on Company's Consolidated Balance Sheet | The table below provides certain financial information about the Joint Venture included on the Company’s consolidated balance sheet at December 31, 2015. Cash may only be utilized to settle obligations of the Joint Venture. Because the Joint Venture is an LLC, its creditors do not have recourse to the general credit of the Company. December 31, Cash $ 359 Fiber and IRUs, net of accumulated depreciation of $26 $ 2,278 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Allowance for Doubtful Accounts [Member] | |
Schedule of Accounts Receivable and Allowance for Doubtful Accounts | Allowance for doubtful accounts consists of the following at December 31, 2015, 2014 and 2013. 2015 2014 2013 Balance at January 1 $ 2,338 $ 6,193 $ 6,231 Provision for uncollectible accounts 1,258 3,329 1,847 Charged to other accounts 8 (2 ) (2 ) Deductions (1,911 ) (7,182 ) (1,883 ) Balance at December 31 $ 1,693 $ 2,338 $ 6,193 |
Non-affiliates [Member] | |
Schedule of Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable, non-affiliates, net consists of the following at December 31, 2015 and 2014: 2015 2014 Retail customers $ 17,291 $ 20,070 Wholesale carriers 3,086 3,867 Other 6,541 9,301 26,918 33,238 Less: allowance for doubtful accounts (1,693 ) (2,338 ) Accounts receivable, non-affiliates net $ 25,225 $ 30,900 |
Current Liabilities (Tables)
Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued and Other Current Liabilities, Non-Affiliates | Accounts payable, accrued and other current liabilities, non-affiliates consist of the following at December 31, 2015 and 2014: 2015 2014 Accrued payroll, benefits, and related liabilities $ 17,362 $ 18,086 Accounts payable - trade 16,057 25,672 Note payable, non-interest bearing, due 2016 5,500 — Other 12,356 10,615 $ 51,275 $ 54,373 |
Schedule of Advance Billings and Customer Deposits | Advance billings and customer deposits consist of the following at December 31, 2015 and 2014: 2015 2014 Advance billings $ 4,482 $ 4,449 Customer deposits 31 41 $ 4,513 $ 4,490 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Company's Ownership Interest and Investment | The following table provides the Company’s ownership interest and investment in AWN and TekMate at the dates indicated: Ownership Interest Investment In December 31, December 31, December 31, December 31, TekMate, LLC 0.00 % 100.00 % $ — $ — Alaska Wireless Network, LLC 0.00 % 33.33 % $ — $ 252,067 |
Fair Value of the Assets Acquired and Liabilities Assumed | The following table represents the fair value of the assets acquired and liabilities assumed on January 31, 2014: Current assets $ 1,020 Non-current assets $ 370 Current liabilities $ 467 Non-current liabilities $ 247 Net assets acquired and liabilities assumed $ 676 |
Goodwill on the Acquisition | Goodwill on the acquisition, which is 100% deductible for tax purposes, was as follows: Consideration provided (including fair value of contingent consideration) $ 1,181 Fair value of equity method investment 831 Total consideration 2,012 Fair value of assets acquired 1,390 Fair value of liabilities assumed (714 ) Total net assets 676 Goodwill $ 1,336 |
Summarized Financial Information | Summarized financial information on AWN is as follows: December 31, December 31, Current assets $ — $ 139,237 Non-current assets $ — $ 554,608 Current liabilities $ — $ 91,247 Non-current liabilities $ — $ 21,505 Equity $ — $ 581,093 January 1 Twelve Inception to Operating revenues $ 21,457 $ 252,864 $ 118,918 Gross profit $ 15,745 $ 179,243 $ 86,201 Operating income $ 9,757 $ 113,772 $ 56,543 Net income $ 9,722 $ 113,404 $ 56,342 Adjusted free cash flow (1) $ 10,805 $ 106,937 $ 53,978 (1) Adjusted free cash flow is defined in the Operating Agreement. |
Schedule of Reconciliation of Total Equity to Equity Method Investment | The following table provides a reconciliation AWN’s total equity and Alaska Communications’ equity method investment as of December 31, 2014: AWN total equity as reported $ 581,093 Less amount attributed to GCI (342,836 ) Amount attributed to ACS 238,257 Plus: Step-up in basis of GCI contribution, net 30,702 Cumulative differences in distributions 4,167 Less: Cumulative differences in income allocation method (21,059 ) Alaska Communications investment in AWN $ 252,067 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Balances of Liabilities Measured at Fair Value on Recurring Basis | The following table presents the liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 at each hierarchical level. There were no transfers into or out of Levels 1 and 2 during 2015. December 31, 2015 December 31, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Other long-term liabilities: Interest rate swaps $ (79 ) $ — $ (79 ) $ — $ (1,416 ) $ — $ (1,416 ) $ — |
Schedule of Floating-to-Fixed Interest Rate Swaps | The following table presents information about the Company’s interest rate swaps, which are included in “Other long-term liabilities” on the balance sheet, as of and for the twelve-month periods ending December 31, 2015 and 2014: 2015 2014 Balance at January 1 $ 1,416 $ 3,234 Reclassified from other long-term liabilities to accumulated other comprehensive loss (600 ) (1,545 ) Change in fair value credited to interest expense (737 ) (273 ) Balance at December 31 $ 79 $ 1,416 |
Schedule of Valuation Techniques to Measure Fair Value of Service Obligation and Significant Unobservable Inputs and Values | The following table describes the valuation techniques used to measure the fair value of the service obligation at February 2, 2015 and the significant unobservable inputs and values for those inputs: Description Estimated Valuation Technique Level 3 Unobservable Inputs Significant Deferred Capacity Revenue $ 41,287 Cost/Replacement Weighted Average Cost of Capital 11.00% Cost trend factor 1% - Estimated % used by GCI 1% - Historical cost of underlying assets Actual cost |
Schedule of Valuation Techniques to Measure Fair Value of Assets and Liabilities | The following table provides the fair value and describes the valuation techniques used to measure the fair value of the assets and liabilities recorded by the Company as of April 2, 2015, including those recognized through consolidation of the Joint Venture, and the significant unobservable inputs: Description Estimated Valuation Level 3 Unobservable Inputs IRU Assets $ 2,304 Cost Historical cost of underlying assets IRU Obligations $ 4,153 Cost Historical cost of underlying assets |
Schedule of Carrying Value of Assets and Liabilities | The carrying value of these items at December 31, 2015 was as follows: IRU Assets $ 2,278 IRU Obligations $ 4,112 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following at December 31, 2015 and 2014: 2015 2014 Useful Lives Land, buildings and support assets* $ 198,485 $ 209,349 3 - 42 Central office switching and transmission 381,511 385,016 4 - 12 Outside plant cable and wire facilities 722,582 674,914 16 - 50 Other 5,207 3,606 3 - 5 Construction work in progress 29,313 60,249 1,337,098 1,333,134 Less: accumulated depreciation and amortization (967,776 ) (976,401 ) Property, plant and equipment, net $ 369,322 $ 356,733 * No depreciation charges are recorded for land. |
Summary of Property, Including Leasehold Improvements, Held under Capital Leases | The following is a summary of property, including leasehold improvements, held under capital leases included in the above property, plant and equipment at December 31, 2015 and 2014: 2015 2014 Land, buildings and support assets $ 14,694 $ 15,426 Less: accumulated depreciation and amortization (6,674 ) (6,698 ) Property held under capital leases, net $ 8,020 $ 8,728 |
Future Minimum Lease Payments, Including Interest for Next Five Years | Future minimum lease payments, including interest, under these leases for the next five years and thereafter are as follows: 2016 $ 1,028 2017 634 2018 525 2019 310 2020 318 Thereafter 4,835 7,650 Interest (3,654 ) $ 3,996 |
Summary of Future Minimum Payments Under Leases | Future minimum payments under these leases, including month to month rentals which are probable of renewal, for the next five years and thereafter are as follows: 2016 $ 7,134 2017 6,383 2018 5,744 2019 5,308 2020 4,728 Thereafter 31,431 $ 60,728 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | The original carrying value and accumulated impairment of the Company’s goodwill at December 31, 2015, 2014 and 2013 was as follows: 2015 2014 2013 Original carrying value $ — $ 38,403 $ 38,403 Accumulated impairment — (29,553 ) (29,553 ) Retirement due to AWN transaction — (4,200 ) (4,200 ) TekMate acquisition — 1,336 — Current year impairment — (5,986 ) — Balance $ — $ — $ 4,650 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Asset Retirement Obligation | The following table provides the changes in the asset retirement obligation: 2015 2014 Balance at January 1 $ 4,055 $ 3,657 Asset retirement obligation 254 369 Accretion expense 179 328 Settlement of obligations (106 ) (299 ) Revisions in estimated cash flows (953 ) — Balance at December 31 $ 3,429 $ 4,055 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Long-term Obligations | Long-term obligations consist of the following at December 31, 2015 and 2014: 2015 2014 2015 senior secured credit facilities due 2018 $ 89,750 $ — Debt issuance costs (3,406 ) — 2010 senior credit facility term loan due 2016 — 322,700 Debt discount — (1,014 ) Debt issuance costs — (2,810 ) 6.25% convertible notes due 2018 104,000 114,000 Debt discount (4,641 ) (7,242 ) Debt issuance costs (1,010 ) (1,659 ) Revolving credit facility loan — — Capital leases and other long-term obligations 3,996 5,524 Total debt 188,689 429,499 Less current portion (3,671 ) (15,521 ) Long-term obligations, net of current portion $ 185,018 $ 413,978 |
Schedule of Aggregate Maturities of Long-term Obligations | The aggregate maturities of long-term obligations for each of the next five years and thereafter, at December 31, 2015, are as follows: 2016 $ 3,671 2017 4,323 2018 186,986 2019 39 2020 52 Thereafter 2,675 $ 197,746 |
6.25% Convertible Notes [Member] | |
Schedule of Long-term Obligations | The following table includes selected data regarding the 6.25% Notes as of December 31, 2015 and 2014: 2015 2014 Net carrying amount of the equity component $ 7,099 $ 7,782 Principal amount of the convertible notes $ 104,000 $ 114,000 Unamortized debt discount $ 4,641 $ 7,242 Amortization period remaining 28 months 40 months Net carrying amount of the convertible notes $ 99,359 $ 106,758 |
Schedule of Interest Components of 6.25% and 5.75% Notes Contained in Company's "Consolidated Statements of Comprehensive (Loss) Income" | The following table details the interest components of the 6.25% Notes contained in the Company’s Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2015 and 2014: 2015 2014 Coupon interest expense $ 6,947 $ 7,125 Amortization of the debt discount 2,601 1,971 Total included in interest expense $ 9,548 $ 9,096 |
5.75% Convertible Notes [Member] | |
Schedule of Interest Components of 6.25% and 5.75% Notes Contained in Company's "Consolidated Statements of Comprehensive (Loss) Income" | The following table details the interest components of the 5.75% Notes contained in the Company’s Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2013: Coupon interest expense $ 122 Amortization of the debt discount 114 Total included in interest expense $ 236 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities consist of the following at December 31, 2015 and 2014: 2015 2014 Deferred GCI capacity revenue, net of current portion $ 37,338 $ — Other deferred IRU capacity revenue, net of current portion 4,420 3,335 Other deferred revenue, net of current portion 14,445 9,091 Other 9,062 11,944 $ 65,265 $ 24,370 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Activity in Accumulated Other Comprehensive (Loss) Income | The following table summarizes the activity in accumulated other comprehensive (loss) income for the twelve months ended December 31, 2015 and 2014: Defined Benefit Pension Interest Plans Rate Swaps Total Balance at December 31, 2013 $ (2,238 ) $ (3,371 ) $ (5,609 ) Other comprehensive (loss) income before reclassifications (1,667 ) 909 (758 ) Reclassifications from accumulated comprehensive loss to net loss 266 950 1,216 Net other comprehensive (loss) income (1,401 ) 1,859 458 Balance at December 31, 2014 (3,639 ) (1,512 ) (5,151 ) Other comprehensive (loss) income before reclassifications (4 ) 355 351 Reclassifications from accumulated comprehensive loss to net income 554 1,160 1,714 Net other comprehensive income 550 1,515 2,065 Balance at December 31, 2015 $ (3,089 ) $ 3 $ (3,086 ) |
Summary of Reclassifications from Accumulated Other Comprehensive (Loss) Income to Net Income (Loss) | The following table summarizes the reclassifications from accumulated other comprehensive (loss) income to net income (loss) for the twelve months ended December 31, 2015, 2014, and 2013, respectively: 2015 2014 2013 Amortization of defined benefit plan pension items: (1) Amortization of loss (3) $ 936 $ 451 $ 717 Income tax effect (382 ) (185 ) (296 ) After tax 554 266 421 Amortization of loss on ineffective interest rate swap: (2) Reclassification to interest expense 1,970 1,613 2,307 Income tax effect (810 ) (663 ) (949 ) After tax 1,160 950 1,358 Total reclassifications net of income tax $ 1,714 $ 1,216 $ 1,779 (1) See Note 14 “ Retirement Plans” (2) See Note 7 “ Fair Value Measurements” (3) Included in “Selling, general and administrative expense” on the Company’s Consolidated Statements of Comprehensive Income (Loss). |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Additional Information about AEPF Multi-Employer Pension Plan | The following table provides additional information about the AEPF multi-employer pension plan. Plan name Alaska Electrical Pension Plan Employer Identification Number 92-6005171 Pension plan number 001 Pension Protection Act zone status at the plan’s year-end: December 31, 2015 Green December 31, 2014 Green Plan subject to funding improvement plan No Plan subject to rehabilitation plan No Employer subject to contribution surcharge No Greater than 5% of Total Contributions to the Plan Company contributions to the plan for the year ended: December 31, 2015 $ 7,968 Yes December 31, 2014 $ 8,626 Yes December 31, 2013 $ 9,174 Yes Name and expiration date of collective bargaining agreements requiring contributions to the plan: Collective Bargaining Agreement Between Alaska Communications Systems and Local Union 1547 IBEW December 31, 2016 Outside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. September 30, 2016 Inside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. October 31, 2016 Special Agreement Providing for the Coverage of Certain Non-bargaining Unit Employees December 31, 2016 |
Funded Status of ACS Retirement Plan Using Beginning and Ending Balances for Projected Benefit Obligation and Plan Assets | The following is a calculation of the funded status of the ACS Retirement Plan using beginning and ending balances for 2015 and 2014 for the projected benefit obligation and the plan assets: 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 17,234 $ 15,284 Interest cost 666 674 Actuarial (gain) loss (754 ) 2,283 Benefits paid (1,052 ) (1,007 ) Benefit obligation at end of year 16,094 17,234 Change in plan assets: Fair value of plan assets at beginning of year 11,570 11,548 Actual return on plan assets (95 ) 131 Employer contribution 779 898 Benefits paid (1,052 ) (1,007 ) Fair value of plan assets at end of year 11,202 11,570 Funded status $ (4,892 ) $ (5,664 ) |
Summary of Net Periodic Pension Expense for ACS Retirement Plan | The following table presents the net periodic pension expense for the Plan for 2015, 2014 and 2013: 2015 2014 2013 Interest cost $ 666 $ 664 $ 635 Expected return on plan assets (659 ) (749 ) (706 ) Amortization of loss 929 536 788 Net periodic pension expense $ 936 $ 451 $ 717 |
Loss Recognized As Component of Accumulated Other Comprehensive Loss | 2015 2014 Loss recognized as a component of accumulated other comprehensive loss: $ 5,249 $ 6,178 |
Assumptions Used to Account for Plan | The assumptions used to account for the Plan as of December 31, 2015 and 2014 are as follows: 2015 2014 Discount rate for benefit obligation 4.30 % 3.97 % Discount rate for pension expense 3.97 % 4.49 % Expected long-term rate of return on assets 6.53 % 6.53 % Rate of compensation increase 0.00 % 0.00 % |
Asset Allocation Guidelines for Plan | Based on risk and return history for capital markets along with asset allocation risk and return projections, the following asset allocation guidelines were developed for the Plan: Minimum Maximum Asset Category Equity securities 50 % 80 % Fixed income 20 % 50 % Cash equivalents 0 % 5 % |
Plan's Asset Allocations by Asset Category | The Plan’s asset allocations at December 31, 2015 and 2014 by asset category are as follows: 2015 2014 Asset Category Equity securities* 64 % 65 % Debt securities* 34 % 34 % Other/Cash 2 % 1 % * May include mutual funds comprised of both stocks and bonds. |
Schedule of Measuring Fair Value of Plan Assets Regarding ACS Retirement Plan | The following table presents major categories of plan assets as of December 31, 2015, and inputs and valuation techniques used to measure the fair value of plan assets regarding the ACS Retirement Plan: Fair Value Measurement at Reporting Date Using Total Quoted Prices Level 1 Significant Significant Asset Category Money market/cash $ 220 $ 220 $ — $ — Equity securities (Investment Funds)* International growth 1,709 1,709 — — U.S. small cap 1,458 1,458 — — U.S. medium cap 1,134 1,134 — — U.S. large cap 2,867 2,867 — — Debt securities (Investment Funds)* Certificate of deposits 1,738 1,738 — — Fixed income 2,076 2,076 — — $ 11,202 $ 11,202 $ — $ — * May include mutual funds comprised of both stocks and bonds. |
Summary of Benefits Expected to be Paid for Plan | The benefits expected to be paid in each of the next five years and in the aggregate for the five fiscal years thereafter are as follows: 2016 $1,046 2017 1,089 2018 1,106 2019 1,077 2020 1,088 2021-2025 5,364 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Net income (loss) attributable to Alaska Communications $ 12,954 $ (2,780 ) $ 158,471 Tax-effected interest expense attributable to convertible notes — — 5,813 Net income (loss) attributable to ACS assuming dilution $ 12,954 $ (2,780 ) $ 164,284 Weighted average common shares outstanding: Basic shares 50,247 49,334 47,092 Effect of stock-based compensation 1,121 — 530 Effect of 6.25% convertible notes — — 11,485 Diluted shares 51,368 49,334 59,107 Income (loss) per share attributable to Alaska Communications: Basic $ 0.26 $ (0.06 ) $ 3.37 Diluted $ 0.25 $ (0.06 ) $ 2.78 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Consolidated Income (Loss) Before Income Tax | Consolidated income (loss) before income tax was as follows: 2015 2014 2013 Income (loss) before income tax $ 23,085 $ (4,567 ) $ 214,841 |
Schedule of Income Tax Provision | The income tax provision for the years ended December 31, 2015, 2014 and 2013 was comprised of the following: 2015 2014 2013 Current: Federal income tax $ 4,320 $ 217 $ — State income tax 693 43 — Total current expense 5,013 260 — Deferred: Federal, excluding operating loss carry forwards 69,774 (1,620 ) 43,301 State, excluding operating loss carry forwards 19,725 (427 ) 14,969 Change in valuation allowance — — (1,900 ) Tax benefit of operating loss carry forwards: Federal (66,285 ) — — State (18,027 ) — — Total deferred expense (benefit) 5,187 (2,047 ) 56,370 Total income tax expense (benefit) $ 10,200 $ (1,787 ) $ 56,370 |
Summary of Reconciliation of Federal Statutory Tax to Recorded Tax Expense (Benefit) | The following table provides a reconciliation of the Federal statutory tax at 35% to the recorded tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013, respectively: 2015 2014 2013 Computed federal income taxes at the statutory rate $ 8,080 $ (1,598 ) $ 75,194 Expense (benefit) in tax resulting from: State income taxes (net of Federal benefit) 1,408 (278 ) 13,104 Other 263 58 (178 ) Stock-based compensation 449 31 44 Change in valuation allowance — — (1,900 ) Crest examination settlement — — (29,894 ) Total income tax expense (benefit) $ 10,200 $ (1,787 ) $ 56,370 |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014, respectively, are as follows: 2015 2014 Deferred tax assets: Net operating loss carry forwards $ 16,863 $ 94,435 Deferred capacity revenue 22,654 — Reserves and accruals 6,522 8,158 Intangibles and goodwill 1,765 6,694 Fair value on interest rate swaps — 1,055 Pension liability 2,010 2,304 Allowance for doubtful accounts 696 1,164 Alternative minimum tax carry forward 9,668 5,308 Other 277 1,032 Deferred tax assets after valuation allowance 60,455 120,150 Deferred tax liabilities: Debt issuance costs (1,907 ) (2,596 ) Property, plant and equipment (41,886 ) (23,999 ) AWN investment — (70,577 ) Fair value on interest rate swaps (2 ) — Total deferred tax liabilities (43,795 ) (97,172 ) Net deferred tax asset $ 16,660 $ 22,978 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity for Restricted Stock Units, Long-Term Incentive Awards and Non-Employee Director Stock Compensation | The following table summarizes the RSU, LTIP and non-employee director stock compensation activity for the year ended December 31, 2015: Number of Weighted Grant-Date Value Nonvested at December 31, 2014 1,299 $ 2.30 Granted 1,224 1.84 Vested (704 ) 2.66 Canceled or expired (633 ) 1.89 Nonvested at December 31, 2015 1,186 $ 1.83 |
Summary of Activity for Performance Share Units | The following table summarizes PSU activity for the year ended December 31, 2015: Number of Weighted Grant-Date Value Nonvested at December 31, 2014 790 $ 1.78 Granted 1,118 1.80 Vested (257 ) 1.70 Canceled or expired (667 ) 1.84 Nonvested at December 31, 2015 984 $ 1.78 |
Summary of Assumptions Used for Valuation of Equity Instruments Granted | Assumptions used for valuation of equity instruments awarded during the twelve months ended December 31, 2015, 2014 and 2013 are as follows: 2015 2014 2013 Restricted stock: Risk free rate 0% 0.0% - 0.23% 0.03% - 0.18% Quarterly dividend $— $— $— Expected, per annum, forfeiture rate 9% 9% 0% - 9% |
Share-Based Compensation | Selected information on equity instruments and share-based compensation under the plan for the years ended December 31, 2015, 2014 and 2013 is as follows: Years Ended December 31, 2015 2014 2013 Total compensation cost for share-based payments $ 2,008 $ 2,511 $ 2,860 Weighted average grant-date fair value of equity instruments granted $ 1.82 $ 1.87 $ 1.77 Total fair value of shares vested during the period $ 2,615 $ 2,935 $ 5,011 Unamortized share-based payments $ 1,421 $ 1,392 $ 1,748 Weighted average period in years to be recognized as expense 1.39 1.45 1.75 |
Supplemental Cash Flow Inform47
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Non-Cash Transaction and Nonmonetary Exchange Information | The following table presents supplemental non-cash transaction and nonmonetary exchange information for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Supplemental Non-cash Transactions: Capital expenditures incurred but not paid at December 31 $ 11,600 $ 6,678 $ 8,612 Property acquired under capital leases $ 20 $ 1,877 $ 171 Additions to ARO asset $ 254 $ 369 $ 229 Accrued acquisition purchase price $ — $ 291 $ — Exchange of debt with common stock $ — $ — $ 6,000 Non-cash acquisition, net of cash received $ — $ 956 $ — Assets contributed to joint venture by noncontrolling interest $ 922 $ — $ — Note receivable on sale of asset $ 2,650 $ — $ — Nonmonetary Exchanges: Property, plant and equipment $ 710 $ — $ — Deferred revenue $ (2,310 ) $ — $ — Prepaid expenses $ 1,600 $ — $ — IRUs received $ 2,765 $ — $ — IRUs relinquished $ (2,765 ) $ — $ — |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Service and Product Revenues from External Customers | The following table presents service and product revenues from external customers for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Service Revenue Business and wholesale customers Voice $ 21,969 $ 22,499 $ 22,947 Broadband 50,007 43,783 40,027 Managed IT services 3,316 3,492 — Other 8,089 7,104 7,659 Wholesale 36,792 33,043 30,047 Business and wholesale service revenue 120,173 109,921 100,680 Consumer customers Voice 13,530 14,932 16,818 Broadband 25,050 24,841 22,108 Other 1,341 1,563 1,739 Consumer service revenue 39,921 41,336 40,665 Total Service Revenue 160,094 151,257 141,345 Growth in Service Revenue 5.8 % 7.0 % Growth in Broadband Service Revenue 9.4 % 10.4 % Other Revenue Equipment sales and installations 6,382 5,321 2,083 Access 33,644 35,323 37,033 High cost support 19,682 23,192 18,776 Total Service and Other Revenue 219,802 215,093 199,237 Growth in service and other revenue 2.2 % 8.0 % Growth excluding equipment sales 1.7 % 6.4 % Wireless and AWN related Revenue Service revenue, equipment sales and other 6,300 77,054 81,093 Foreign roaming and wireless backhaul — — 46,064 Transition services 4,769 — — CETC 1,654 19,565 21,019 Amortization of deferred AWN capacity revenue 292 3,151 1,511 Total Wireless and AWN Related Revenue 13,015 99,770 149,687 Total Revenue $ 232,817 $ 314,863 $ 348,924 |
Selected Quarterly Financial 49
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | First Second Third Fourth Total Quarter Quarter Quarter Quarter Year 2015 Operating revenues $ 65,786 $ 55,665 $ 54,735 $ 56,631 $ 232,817 Gross profit 34,520 25,587 30,062 30,525 120,694 Operating income (loss) 39,313 (4,375 ) 8,178 4,630 47,746 Net income (loss) 16,217 (4,860 ) 1,202 326 12,885 Net income (loss) attributable to Alaska Communications 16,217 (4,841 ) 1,239 339 12,954 Net income (loss) per share attributable to Alaska Communications: Basic 0.32 (0.10 ) 0.02 0.01 0.26 Diluted 0.32 (0.10 ) 0.02 0.01 0.25 2014 Operating revenues $ 78,331 $ 80,558 $ 78,465 $ 77,509 $ 314,863 Gross profit 33,513 35,757 33,515 31,108 133,893 Operating income (loss) 8,250 10,726 11,668 (884 ) 29,760 Net (loss) income (385 ) 1,085 1,878 (5,358 ) (2,780 ) Net (loss) income attributable Alaska Communications (385 ) 1,085 1,878 (5,358 ) (2,780 ) Net (loss) income per share attributable to Alaska Communications: Basic (0.01 ) 0.02 0.04 (0.11 ) (0.06 ) Diluted (0.01 ) 0.02 0.04 (0.11 ) (0.06 ) |
Description of Company and Su50
Description of Company and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Apr. 02, 2015 | Feb. 02, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2015 | Mar. 31, 2014 | Jan. 31, 2014 | Aug. 31, 2010 |
Significant Accounting Policies [Line Items] | ||||||||||
Percentage of ownership interest sold in wireless operation | 33.33% | |||||||||
Percentage of remaining ownership interest | 51.00% | |||||||||
Restricted cash | $ 1,824 | $ 1,824 | $ 467 | |||||||
Equipment and buildings under capital leases expiration period | 2,034 | |||||||||
Equity method investments | 0 | $ 0 | $ 252,067 | |||||||
Goodwill, net of accumulated impairment | $ 0 | $ 0 | $ 4,650 | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||||
Company total expense for advertisement | $ 4,065 | $ 4,741 | $ 5,918 | |||||||
Periodic payroll deduction minimum for acquisition of common stock | 1.00% | |||||||||
Periodic payroll deduction maximum for acquisition of common stock | 15.00% | |||||||||
GCI [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Remaining contract life | 30 years | |||||||||
Noncontrolling Interests [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Reclassified debt issuance costs from assets to long-term obligations, net of current portion | $ 4,469 | |||||||||
Noncontrolling Interests [Member] | Quintillion Holdings, LLC [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage ownership interest in joint venture | 50.00% | |||||||||
Unionized Employees IBEW [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage of concentration | 56.00% | |||||||||
Minimum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Depreciation of property | 3 years | |||||||||
Maximum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Depreciation of property | 50 years | |||||||||
Revenue [Member] | High Cost Support [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage of concentration | 9.00% | |||||||||
Certificate of Deposits [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Restricted cash | $ 1,824 | $ 1,824 | ||||||||
Alaska Wireless Network, LLC [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage ownership interest in equity method investment | 0.00% | 0.00% | 33.33% | 33.33% | ||||||
Equity method investments | $ 250,192 | $ 252,067 | ||||||||
Remaining contract life | 20 years | |||||||||
ACS Cable Systems LLC and Quintillion Holdings, LLC Joint Venture [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage ownership interest in joint venture | 50.00% | 50.00% | ||||||||
TekMate, LLC [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage ownership interest in equity method investment | 49.00% | |||||||||
Percentage of remaining ownership interest | 51.00% | |||||||||
Business purchase date | Aug. 31, 2010 | Aug. 31, 2010 | ||||||||
Equity method investments | $ 0 | $ 0 |
Sale of Wireless Operations - A
Sale of Wireless Operations - Additional Information (Detail) | Feb. 02, 2015USD ($) | Dec. 04, 2014USD ($) | May. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)SegmentsReporting_Unit | Aug. 04, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash proceeds from sale of one or more of its affiliates | $ 285,160,000 | $ 300,000,000 | |||||||||
Adjustments for working capital assets and liabilities, minimum subscriber levels and preferred distributions | 14,840,000 | ||||||||||
Amount of gain on sale, pre-tax | $ 7,092,000 | $ 1,421,000 | $ 39,719,000 | $ 48,232,000 | |||||||
Estimated amount of fair value of services | 4,769,000 | ||||||||||
Estimated amount of loss on sale | 522,000 | ||||||||||
Cash held in escrow | $ 228,000 | ||||||||||
Escrow disbursement released related to sale of wireless operations | 7,092,000 | ||||||||||
Revenues | $ 228,000 | ||||||||||
Number of operating segment | Segments | 1 | ||||||||||
Number of reporting unit | Reporting_Unit | 1 | ||||||||||
Assets held for sale | 0 | $ 0 | |||||||||
Liabilities held for sale | 0 | 0 | |||||||||
Equity method investments | 0 | 0 | $ 252,067,000 | ||||||||
Deferred AWN capacity revenue | 59,672,000 | ||||||||||
Estimated fair value services | $ 41,287,000 | ||||||||||
Federal and state net operating loss and state alternative minimum tax credits carry forwards | 84,233,000 | 84,233,000 | |||||||||
Non current deferred tax liabilities related to investment in AWN | 70,577,000 | 70,577,000 | |||||||||
Operating leases remaining terms | 11 years | ||||||||||
Operating lease remaining contract value | 60,728,000 | 60,728,000 | |||||||||
Transaction related costs | 13,272,000 | ||||||||||
Exit costs | 10,745,000 | ||||||||||
Alaska Wireless Network, LLC [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Transaction and certain transition costs | 2,527,000 | ||||||||||
Cost of services and sales, non-affiliates | 4,893,000 | ||||||||||
Selling, general and administrative | $ 8,379,000 | ||||||||||
GCI [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash payment received for completion of transition support service | $ 1,680,000 | ||||||||||
Escrow disbursement released related to sale of wireless operations | $ 1,680,000 | ||||||||||
Remaining contract life | 30 years | ||||||||||
Estimated fair value services | 41,287,000 | $ 41,287,000 | |||||||||
2010 Senior Credit Facility Term Loan Due 2016 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Long term debt repayment of principal amount | $ 240,472,000 | 240,472,000 | |||||||||
Debt discount | $ 721,000 | 721,000 | |||||||||
Debt issuance costs | 1,907,000 | ||||||||||
Wireless Operations [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Operating lease remaining contract value | 2,797,000 | ||||||||||
Alaska Wireless Network, LLC [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash proceeds from sale of one or more of its affiliates | 100,000,000 | ||||||||||
Amount of gain on sale, pre-tax | $ 210,873,000 | ||||||||||
Equity method investments | $ 250,192,000 | 252,067,000 | |||||||||
Remaining contract life | 20 years | ||||||||||
Deferred AWN capacity revenue | $ 59,964,000 | $ 64,627,000 |
Sale of Wireless Operations - C
Sale of Wireless Operations - Components of Gain on Sale of Assets (Detail) - USD ($) $ in Thousands | Feb. 02, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 |
Consideration: | |||||
Cash | $ 44,688 | ||||
Total consideration | 285,160 | ||||
Carrying value of assets and liabilities sold: | |||||
Assets and liabilities, net | 5,121 | ||||
Net change in deferred capacity revenue | (18,385) | ||||
Total carrying value of assets and liabilities sold | 236,928 | ||||
Gain on disposal of assets | $ 7,092 | $ 1,421 | $ 39,719 | 48,232 | |
2010 Senior Credit Facility Term Loan Due 2016 [Member] | |||||
Consideration: | |||||
Principal payment on 2010 Senior Credit Facility | $ 240,472 | 240,472 | |||
Alaska Wireless Network, LLC [Member] | |||||
Consideration: | |||||
Cash | 100,000 | ||||
Total consideration | 366,000 | ||||
Carrying value of assets and liabilities sold: | |||||
Equity investment | 250,192 | ||||
Gain on disposal of assets | $ 210,873 |
Sale of Wireless Operations - S
Sale of Wireless Operations - Schedule of Reconciliation of Major Classes of Assets and Liabilities Held for Sale (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Current assets: | |
Accounts receivable, non-affiliates, net | $ 7,607 |
Materials and supplies | 1,958 |
Total current assets held-for-sale | 9,565 |
Property, plant and equipment, net of accumulated depreciation of $8,835 | 14,664 |
Total non-current assets held-for-sale | 14,664 |
Current liabilities: | |
Current portion of long-term obligations | 287 |
Advance billings and customer deposits | 3,729 |
Total current liabilities held-for-sale | 18,728 |
Total non-current liabilities held-for-sale | 2,107 |
Total non-current liabilities held-for-sale | 2,107 |
Non-affiliates [Member] | |
Current liabilities: | |
Accounts payable, accrued and other current liabilities | 301 |
Affiliates [Member] | |
Current liabilities: | |
Accounts payable, accrued and other current liabilities | $ 14,411 |
Sale of Wireless Operations -54
Sale of Wireless Operations - Schedule of Reconciliation of Major Classes of Assets and Liabilities Held for Sale (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Discontinued Operations and Disposal Groups [Abstract] | |
Accumulated depreciation of property, plant and equipment, net | $ 8,835 |
Sale of Wireless Operations -55
Sale of Wireless Operations - Schedule of Company's Current Obligations for Exit Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance at December 31, 2013 | $ 490 | |
Charged to expense | 10,745 | $ 1,124 |
Paid and/or settled | (10,012) | (634) |
Balance at December 31, 2014 | 1,223 | 490 |
Labor Obligations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance at December 31, 2013 | 490 | |
Charged to expense | 6,485 | 490 |
Paid and/or settled | (5,752) | |
Balance at December 31, 2014 | 1,223 | 490 |
Contract Terminations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | 3,966 | |
Paid and/or settled | (3,966) | |
Other Associated Obligations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | 294 | 634 |
Paid and/or settled | $ (294) | $ (634) |
Joint Venture - Additional Info
Joint Venture - Additional Information (Detail) - USD ($) | Apr. 02, 2015 | Apr. 01, 2015 | Dec. 31, 2015 |
Investment [Line Items] | |||
Note receivable on sale of asset | $ 2,650,000 | ||
Gain or loss recorded on initial consolidation of Joint Venture | $ 0 | ||
IRU [Member] | |||
Investment [Line Items] | |||
Contribution to Joint Venture | $ 1,844,000 | ||
Cash Contribution to Joint Venture | 250,000 | ||
Quintillion Holdings, LLC [Member] | |||
Investment [Line Items] | |||
Term of indefeasible right of use | 30 years | ||
Sale price of fiber strands | $ 5,300,000 | ||
Payment received in connection with sale of 46 fiber strands from the Fiber Optic System at closing date | 2,650,000 | ||
Note receivable on sale of asset | $ 2,650,000 | ||
Quintillion Holdings, LLC [Member] | IRU [Member] | |||
Investment [Line Items] | |||
Contribution to Joint Venture | 922,000 | ||
Cash Contribution to Joint Venture | 250,000 | ||
ACS [Member] | IRU [Member] | |||
Investment [Line Items] | |||
Contribution to Joint Venture | 922,000 | ||
Additional Contribution to Joint Venture | 461,000 | ||
ConocoPhillips Alaska, Inc. [Member] | |||
Investment [Line Items] | |||
Purchase price of fiber strand optic cable | 11,000,000 | ||
Purchase price paid at closing | 5,500,000 | ||
Note payable on asset purchase | $ 5,500,000 | ||
Term of fibers indefeasible right of use sold to CPAI | The Company, through its wholly-owned subsidiary ACS Cable Systems, LLC, acquired from CPAI a fiber optic cable (including conduit, licenses, permits and right-of-ways) running from the Kuparuk Operating Center to the Trans-Alaska Pipeline System Pump Station #1 (the “Fiber Optic System”). The purchase price was $11,000, $5,500 of which was paid by the Company at closing and the balance of which is payable on or before April 4, 2016. The Company sold to CPAI a 30 year IRU on certain fibers from the Fiber Optic System. The sales price was $400, all of which was paid by CPAI at closing. The Company and CPAI also entered into agreements for the exchange of IRUs, pipeline access, conduit and future capacity, and the prepayment of certain fees and services. | ||
Term of indefeasible right of use | 30 years | ||
Sale price of indefeasible right of use of fibers to CPAI | $ 400,000 | ||
ACS Cable Systems LLC and Quintillion Holdings, LLC Joint Venture [Member] | |||
Investment [Line Items] | |||
Voting interest in joint venture | 50.00% | 50.00% | |
ACS Cable Systems LLC and Quintillion Holdings, LLC Joint Venture [Member] | Quintillion Holdings, LLC [Member] | |||
Investment [Line Items] | |||
Voting interest in joint venture | 50.00% |
Joint Venture - Schedule of Cer
Joint Venture - Schedule of Certain Financial Information about Joint Venture Included on Company's Consolidated Balance Sheet (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Cash | $ 359 |
Fiber and IRUs, net of accumulated depreciation of $26 | $ 2,278 |
Joint Venture - Schedule of C58
Joint Venture - Schedule of Certain Financial Information about Joint Venture Included on Company's Consolidated Balance Sheet (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Accumulated depreciation of IRU Assets, net | $ 26 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable, Non-affiliates, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non-affiliates net | $ 25,225 | $ 30,900 |
Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non-affiliates, gross | 26,918 | 33,238 |
Less: allowance for doubtful accounts | (1,693) | (2,338) |
Accounts receivable, non-affiliates net | 25,225 | 30,900 |
Accounts Receivable [Member] | Retail Customers [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non-affiliates, gross | 17,291 | 20,070 |
Accounts Receivable [Member] | Wholesale Carriers [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non-affiliates, gross | 3,086 | 3,867 |
Accounts Receivable [Member] | Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, non-affiliates, gross | $ 6,541 | $ 9,301 |
Accounts Receivable - Schedul60
Accounts Receivable - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for uncollectible accounts | $ 1,258 | $ 3,329 | $ 1,847 |
Allowance for Doubtful Accounts [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | 2,338 | 6,193 | 6,231 |
Provision for uncollectible accounts | 1,258 | 3,329 | 1,847 |
Charged to other accounts | 8 | (2) | (2) |
Deductions | (1,911) | (7,182) | (1,883) |
Ending Balance | $ 1,693 | $ 2,338 | $ 6,193 |
Current Liabilities - Schedule
Current Liabilities - Schedule of Accounts Payable, Accrued and Other Current Liabilities, Non-Affiliates (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued payroll, benefits, and related liabilities | $ 17,362 | $ 18,086 |
Accounts payable - trade | 16,057 | 25,672 |
Note payable, non-interest bearing, due 2016 | 5,500 | |
Other | 12,356 | 10,615 |
Total accounts payable, accrued and other current liabilities | $ 51,275 | $ 54,373 |
Current Liabilities - Schedul62
Current Liabilities - Schedule of Advance Billings and Customer Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Advance billings | $ 4,482 | $ 4,449 |
Customer deposits | 31 | 41 |
Advance billings and customer deposits | $ 4,513 | $ 4,490 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Feb. 02, 2015 | Dec. 31, 2014 | Dec. 04, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity method investments | $ 0 | $ 252,067,000 | $ 252,067,000 | $ 0 | $ 252,067,000 | ||||||||||
Percentage ownership interest in equity method investment in TekMate, LLC | 51.00% | ||||||||||||||
Percentage of goodwill on acquisition, deductible for tax purposes | 100.00% | 100.00% | |||||||||||||
Earnings of equity method investment | $ 3,056,000 | 35,960,000 | $ 18,056,000 | ||||||||||||
Cash proceeds from sale of one or more of its affiliates | $ 285,160,000 | $ 300,000,000 | |||||||||||||
Deferred AWN capacity revenue | 59,672,000 | ||||||||||||||
Deferred revenue expected recognition period | 20 years | ||||||||||||||
Amortization of deferred AWN capacity revenue | $ 2,859,000 | 3,795,000 | 1,512,000 | ||||||||||||
Gain on sale of assets | 48,232,000 | ||||||||||||||
TekMate, LLC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity method investments | $ 0 | $ 0 | |||||||||||||
Percentage ownership interest in equity method investment in TekMate, LLC | 49.00% | 49.00% | |||||||||||||
Business purchase date | Aug. 31, 2010 | Aug. 31, 2010 | |||||||||||||
Purchase of equity investment | $ 2,060,000 | $ 2,060,000 | |||||||||||||
Percentage ownership interest in equity method investment in TekMate, LLC | 51.00% | 51.00% | |||||||||||||
Consideration payable for acquisition | $ 1,573,000 | ||||||||||||||
Consideration paid in cash | $ 679,000 | 894,000 | 894,000 | 679,000 | 894,000 | ||||||||||
Earnings of equity method investment | $ 12,000 | ||||||||||||||
Cash distributions | 33,000 | ||||||||||||||
Undistributed earnings | $ 0 | ||||||||||||||
Alaska Wireless Network, LLC [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity method investments | $ 250,192,000 | 252,067,000 | 252,067,000 | 252,067,000 | |||||||||||
Cash proceeds from sale of one or more of its affiliates | $ 100,000,000 | ||||||||||||||
Percentage ownership owned by subsidiaries in AWN | 66.67% | 66.67% | |||||||||||||
Representation of GCI on AWN's Board | Representation of one of three seats on AWN's Board. | ||||||||||||||
Operating Agreement, cumulative annual distribution in each of first eight quarters | $ 12,500,000 | $ 12,500,000 | |||||||||||||
Operating Agreement, cumulative annual distribution in second eight quarters | 11,250,000 | 11,250,000 | |||||||||||||
Deferred AWN capacity revenue | 59,964,000 | $ 64,627,000 | 59,964,000 | 59,964,000 | |||||||||||
Estimated fair value | $ 266,000,000 | 266,000,000 | 266,000,000 | ||||||||||||
Amortization of deferred AWN capacity revenue | $ 1,511,000 | 292,000 | 3,151,000 | ||||||||||||
Gain on sale of assets | $ 210,873,000 | ||||||||||||||
Interest in equity method investee's adjusted free cash flow | 4,167,000 | $ 4,167,000 | $ 764,000 | 45,833,000 | 17,844,000 | 50,000,000 | $ 22,011,000 | ||||||||
Equity earnings | $ 17,963,000 | $ 3,056,000 | 35,948,000 | ||||||||||||
Excess of ACS' investment over the Company's share of net assets | $ 13,810,000 | $ 13,810,000 | $ 13,810,000 | ||||||||||||
Alaska Wireless Network, LLC [Member] | ACS Member [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Percentage ownership owned by subsidiaries in AWN | 33.33% | 33.33% |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Company's Ownership Interest and Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Feb. 02, 2015 | Feb. 01, 2015 | Dec. 31, 2014 | Aug. 31, 2010 |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 0 | $ 252,067 | |||
TekMate, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Noncontrolling interest ownership percentage by Parent | 100.00% | ||||
Percentage ownership interest in equity method investment | 49.00% | ||||
Equity method investments | $ 0 | ||||
Alaska Wireless Network, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage ownership interest in equity method investment | 0.00% | 33.33% | 33.33% | ||
Equity method investments | $ 250,192 | $ 252,067 |
Equity Method Investments - Fai
Equity Method Investments - Fair Value of the Assets Acquired and Liabilities Assumed (Detail) - TekMate, LLC [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Jan. 31, 2014 |
Business Acquisition [Line Items] | ||
Current assets | $ 1,020 | |
Non-current assets | 370 | |
Current liabilities | 467 | |
Non-current liabilities | 247 | |
Net assets acquired and liabilities assumed | $ 676 | $ 676 |
Equity Method Investments - Goo
Equity Method Investments - Goodwill on the Acquisition (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jan. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | $ 0 | $ 4,650 | |
TekMate, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Consideration provided (including fair value of contingent consideration) | 1,181 | ||
Fair value of equity method investment | 831 | ||
Total consideration | 2,012 | ||
Fair value of assets acquired | 1,390 | ||
Fair value of liabilities assumed | (714) | ||
Total net assets | 676 | $ 676 | |
Goodwill | $ 1,336 |
Equity Method Investments - Com
Equity Method Investments - Components of Gain on Sale of Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2014 | |
Consideration received: | |||||
Cash | $ 44,688 | ||||
Total consideration received | 285,160 | ||||
Consideration provided: | |||||
Gain on disposal of assets | $ 7,092 | $ 1,421 | $ 39,719 | 48,232 | |
Alaska Wireless Network, LLC [Member] | |||||
Consideration received: | |||||
Investment | 266,000 | $ 266,000 | |||
Cash | 100,000 | ||||
Total consideration received | 366,000 | ||||
Consideration provided: | |||||
Net intangible and tangible assets | 90,500 | ||||
Deferred AWN capacity revenue | 64,627 | ||||
Total consideration provided | 155,127 | ||||
Gain on disposal of assets | $ 210,873 |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Current assets | $ 75,792 | $ 83,537 | $ 75,792 | $ 83,537 | |||||||
Current liabilities | 59,459 | 97,965 | 59,459 | 97,965 | |||||||
Equity | 152,756 | 135,126 | 152,756 | 135,126 | |||||||
Operating revenues | 56,631 | $ 54,735 | $ 55,665 | $ 65,786 | 77,509 | $ 78,465 | $ 80,558 | $ 78,331 | 232,817 | 314,863 | $ 348,924 |
Gross profit | 30,525 | 30,062 | 25,587 | 34,520 | 31,108 | 33,515 | 35,757 | 33,513 | 120,694 | 133,893 | |
Operating income | 4,630 | 8,178 | (4,375) | 39,313 | (884) | 11,668 | 10,726 | 8,250 | 47,746 | 29,760 | 256,961 |
Net income | $ 339 | $ 1,239 | $ (4,841) | $ 16,217 | (5,358) | $ 1,878 | $ 1,085 | $ (385) | 12,954 | (2,780) | 158,471 |
Alaska Wireless Network, LLC [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Current assets | 139,237 | 139,237 | |||||||||
Non-current assets | 554,608 | 554,608 | |||||||||
Current liabilities | 91,247 | 91,247 | |||||||||
Non-current liabilities | 21,505 | 21,505 | |||||||||
Equity | $ 581,093 | 581,093 | |||||||||
Operating revenues | 21,457 | 252,864 | 118,918 | ||||||||
Gross profit | 15,745 | 179,243 | 86,201 | ||||||||
Operating income | 9,757 | 113,772 | 56,543 | ||||||||
Net income | 9,722 | 113,404 | 56,342 | ||||||||
Adjusted free cash flow | $ 10,805 | $ 106,937 | $ 53,978 |
Equity Method Investments - S69
Equity Method Investments - Schedule of Reconciliation of Total Equity to Equity Method Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Feb. 02, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |||
Equity | $ 152,756 | $ 135,126 | |
Alaska Communications investment in AWN | $ 0 | 252,067 | |
ACS [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity | 238,257 | ||
Alaska Wireless Network, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity | 581,093 | ||
Step-up in basis of GCI contribution, net | 30,702 | ||
Cumulative differences in distributions | 4,167 | ||
Cumulative differences in income allocation method | (21,059) | ||
Alaska Communications investment in AWN | $ 250,192 | 252,067 | |
GCI [Member] | Affiliates [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity | $ (342,836) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Nov. 27, 2015 | Feb. 02, 2015 | Dec. 31, 2014 | Dec. 04, 2014 | Nov. 01, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Long-term obligations | $ 188,689,000 | $ 429,499,000 | $ 188,689,000 | $ 429,499,000 | |||||
LIBOR spread | 4.75% | 4.75% | |||||||
Commencing swap date | Jun. 30, 2012 | ||||||||
Expiration Date | Sep. 30, 2012 | ||||||||
Change in fair value credited to interest expense | $ 820,000 | ||||||||
Notional amounts of floating-to-fixed interest rate swaps, one | $ 115,500,000 | ||||||||
Notional amounts of floating-to-fixed interest rate swaps, two | $ 77,000,000 | ||||||||
Interest rate of floating-to-fixed interest rate swaps, one | 7.22% | 7.22% | |||||||
Interest rate of floating-to-fixed interest rate swaps, two | 7.225% | 7.225% | |||||||
Notional amounts of floating-to-fixed interest rate swaps, over-hedged | $ 110,268,000 | ||||||||
Notional amounts of floating-to-fixed interest rate swaps, over-hedged percentage | 95.50% | ||||||||
Estimated Fair Value | $ 41,287,000 | ||||||||
Service obligation | $ 39,409,000 | $ 39,409,000 | |||||||
Impairment charge of long-lived assets recognized | 0 | 0 | $ 0 | ||||||
Inventory held for sale adjustment | 435,000 | ||||||||
Impairment of equity method investment | $ 1,267,000 | ||||||||
TekMate, LLC [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Impairment of equity method investment | $ 1,267,000 | ||||||||
Minimum [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Amortized to revenue contract lives | 10 years | ||||||||
Maximum [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Amortized to revenue contract lives | 30 years | ||||||||
2010 Senior Credit Facility Term Loan Due 2016 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Interest rate of floating-to-fixed interest rate swaps | 6.463% | 7.22% | 6.463% | ||||||
LIBOR spread | 4.75% | ||||||||
Notional amounts of floating-to-fixed interest rate swaps, one | $ 115,500,000 | $ 115,500,000 | |||||||
Notional amounts of floating-to-fixed interest rate swaps, two | $ 77,000,000 | $ 77,000,000 | |||||||
Interest rate of floating-to-fixed interest rate swaps, one | 6.47% | 7.225% | 6.47% | ||||||
Interest rate of floating-to-fixed interest rate swaps, two | 6.475% | 6.475% | |||||||
Amount of Senior Credit Facility to be paid related to sale | 240,472,000 | ||||||||
Notional amounts of floating-to-fixed interest rate swaps, over-hedged | $ 109,800,000 | ||||||||
2015 Senior Credit Facilities [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Long-term obligations | $ 93,746,000 | $ 93,746,000 | |||||||
2010 Senior Credit Facilities [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Long-term obligations | 436,362,000 | 436,362,000 | |||||||
2010 Senior Credit Facilities [Member] | Estimated Value [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Fair value of long-term obligations | $ 430,729,000 | $ 430,729,000 | |||||||
6.25% Convertible Notes Due 2018 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Long-term obligations | $ 99,359,000 | $ 99,359,000 | |||||||
Interest rate of convertible notes | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | ||||
6.25% Convertible Notes Due 2018 [Member] | Estimated Value [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Fair value of long-term obligations | $ 97,769,000 | $ 97,769,000 | |||||||
2015 Senior Secured Credit Facilities Due 2018 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Notional amounts of floating-to-fixed interest rate swaps | $ 44,827,000 | ||||||||
Interest rate of floating-to-fixed interest rate swaps | 5.833% | ||||||||
LIBOR spread | 4.50% | ||||||||
Commencing swap date | Dec. 18, 2015 | ||||||||
Expiration Date | Dec. 31, 2017 | ||||||||
Change in fair value credited to interest expense | $ 83,000 |
Fair Value Measurements - Balan
Fair Value Measurements - Balances of Liabilities Measured at Fair Value on Recurring Basis (Detail) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other long-term liabilities | $ (79) | $ (1,416) | $ (3,234) |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other long-term liabilities | $ (79) | $ (1,416) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Floating-to-Fixed Interest Rate Swaps (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Change in fair value credited to interest expense | $ 820 | ||
Interest Rate Swaps [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Beginning balance | $ 1,416 | $ 3,234 | |
Reclassified from other long-term liabilities to accumulated other comprehensive loss | (600) | (1,545) | |
Change in fair value credited to interest expense | (737) | (273) | |
Ending balance | $ 79 | $ 79 | $ 1,416 |
Fair Value Measurements - Sch73
Fair Value Measurements - Schedule of Valuation Techniques to Measure Fair Value of Service Obligation and Significant Unobservable Inputs and Values (Detail) $ in Thousands | Feb. 02, 2015USD ($) |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Estimated Fair Value | $ 41,287 |
Level 3 [Member] | Deferred Capacity Revenue [Member] | Cost/Replacement Value and Discounted Cash Flow [Member] | Weighted Average Cost of Capital [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Estimated Fair Value | $ 41,287 |
Valuation Technique | Cost/Replacement Value and Discounted Cash Flow |
Significant Input Values, rate | 11.00% |
Level 3 [Member] | Deferred Capacity Revenue [Member] | Cost/Replacement Value and Discounted Cash Flow [Member] | Cost trend factor [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Significant Input Values, rate | 1.00% |
Level 3 [Member] | Deferred Capacity Revenue [Member] | Cost/Replacement Value and Discounted Cash Flow [Member] | Cost trend factor [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Significant Input Values, rate | 4.00% |
Level 3 [Member] | Deferred Capacity Revenue [Member] | Cost/Replacement Value and Discounted Cash Flow [Member] | Estimated % used by GCI [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Significant Input Values, rate | 1.00% |
Level 3 [Member] | Deferred Capacity Revenue [Member] | Cost/Replacement Value and Discounted Cash Flow [Member] | Estimated % used by GCI [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Significant Input Values, rate | 100.00% |
Level 3 [Member] | Deferred Capacity Revenue [Member] | Cost/Replacement Value and Discounted Cash Flow [Member] | Historical cost of underlying assets [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Significant Input Values, description | Actual cost |
Fair Value Measurements - Sch74
Fair Value Measurements - Schedule of Valuation Techniques to Measure Fair Value of Assets and Liabilities (Detail) - Level 3 [Member] - Valuation Technique Replacement Value [Member] - Historical cost of underlying assets [Member] $ in Thousands | Apr. 02, 2015USD ($) |
Estimated Value [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
IRU Assets | $ 2,304 |
IRU Obligations | $ 4,153 |
IRU Obligations [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Valuation Technique | Cost |
IRU Assets [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Valuation Technique | Cost |
Fair Value Measurements - Sch75
Fair Value Measurements - Schedule of Carrying Value of Assets and Liabilities (Detail) - Carrying Values [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
IRU Assets | $ 2,278 |
IRU Obligations | $ 4,112 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,337,098,000 | $ 1,333,134,000 |
Less: accumulated depreciation and amortization | (967,776,000) | (976,401,000) |
Property, plant and equipment, net | $ 369,322,000 | 356,733,000 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 50 years | |
Land, Buildings and Support Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 198,485,000 | 209,349,000 |
Less: accumulated depreciation and amortization | $ 0 | 0 |
Land, Buildings and Support Assets [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 3 years | |
Land, Buildings and Support Assets [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 42 years | |
Central Office Switching and Transmission [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 381,511,000 | 385,016,000 |
Central Office Switching and Transmission [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 4 years | |
Central Office Switching and Transmission [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 12 years | |
Outside Plant Cable and Wire Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 722,582,000 | 674,914,000 |
Outside Plant Cable and Wire Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 16 years | |
Outside Plant Cable and Wire Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 50 years | |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,207,000 | 3,606,000 |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 3 years | |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 5 years | |
Construction Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 29,313,000 | $ 60,249,000 |
Property, Plant and Equipment77
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Parenthetical) (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Depreciation charges | $ 967,776,000 | $ 976,401,000 |
Land, Buildings and Support Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation charges | $ 0 | $ 0 |
Property, Plant and Equipment78
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized interest | $ 1,558 | $ 2,810 | $ 1,926 |
Amortization of assets under capital leases included in depreciation expense | 1,316 | 1,832 | 1,827 |
Rental expense under operating leases | 11,439 | 8,782 | 9,785 |
Termination charges | 10,745 | 1,124 | |
Contract Terminations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Termination charges | 3,966 | ||
Construction Work in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized interest | $ 1,558 | $ 2,810 | $ 1,926 |
Capitalized interest, rate | 6.78% | 8.28% | 8.07% |
Property, Plant and Equipment79
Property, Plant and Equipment - Summary of Property, Including Leasehold Improvements, Held under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land, buildings and support assets | $ 14,694 | $ 15,426 |
Less: accumulated depreciation and amortization | (6,674) | (6,698) |
Property held under capital leases, net | $ 8,020 | $ 8,728 |
Property, Plant and Equipment80
Property, Plant and Equipment - Future Minimum Lease Payments, Including Interest for Next Five Years (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Capital Leases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract] | |
2,016 | $ 1,028 |
2,017 | 634 |
2,018 | 525 |
2,019 | 310 |
2,020 | 318 |
Thereafter | 4,835 |
Future minimum payments, including interest | 7,650 |
Interest | (3,654) |
Total minimum capital lease payments | $ 3,996 |
Property, Plant and Equipment81
Property, Plant and Equipment - Summary of Future Minimum Payments Under Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 7,134 |
2,017 | 6,383 |
2,018 | 5,744 |
2,019 | 5,308 |
2,020 | 4,728 |
Thereafter | 31,431 |
Future minimum payments due | $ 60,728 |
Goodwill and Other Intangible82
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Implied fair value of goodwill | $ 0 | ||||
Goodwill impairment charge | $ 5,986,000 | ||||
Percentage of remaining ownership interest | 51.00% | ||||
Amount of additional goodwill acquired from TekMate | $ 1,336,000 | 1,336,000 | |||
Retirement due to AWN transaction | $ (4,200,000) | $ (4,200,000) | $ (4,200,000) | ||
License renewable period | 10 years |
Goodwill and Other Intangible83
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Original carrying value | $ 38,403 | $ 38,403 | |||
Accumulated impairment | (29,553) | (29,553) | |||
Retirement due to AWN transaction | $ (4,200) | (4,200) | (4,200) | ||
TekMate acquisition | $ 1,336 | 1,336 | |||
Current year impairment | $ (5,986) | ||||
Balance | $ 4,650 | $ 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Beginning Balance | $ 4,055 | $ 3,657 | |
Asset retirement obligation | 254 | 369 | $ 229 |
Accretion expense | 179 | 328 | |
Settlement of obligations | (106) | (299) | |
Revisions in estimated cash flows | (953) | ||
Ending Balance | $ 3,429 | $ 4,055 | $ 3,657 |
Long-Term Obligations - Schedul
Long-Term Obligations - Schedule of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 14, 2015 | Feb. 02, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ (4,469) | |||
Capital leases and other long-term obligations | $ 3,996 | 5,524 | ||
Long-term obligations | 188,689 | 429,499 | ||
Long-term obligations | 188,689 | 429,499 | ||
Less current portion | (3,671) | (15,521) | ||
Long-term obligations, net of current portion | 185,018 | 413,978 | ||
2015 Senior Secured Credit Facilities Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term obligations | 89,750 | $ 90,000 | ||
Debt issuance costs | (3,406) | |||
2010 Senior Credit Facility Term Loan Due 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term obligations | 322,700 | |||
Debt instrument unamortized discount | $ (721) | (1,014) | ||
Debt issuance costs | (2,810) | |||
6.25% Convertible Notes Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible notes | 104,000 | 114,000 | ||
Debt instrument unamortized discount | (4,641) | (7,242) | ||
Debt issuance costs | (1,010) | $ (1,659) | ||
Long-term obligations | 99,359 | |||
Long-term obligations | $ 99,359 |
Long-Term Obligations - Sched86
Long-Term Obligations - Schedule of Long-Term Obligations (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
2015 Senior Secured Credit Facilities Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity year of senior credit facility term loan - start | Sep. 14, 2015 | ||
Maturity date | Mar. 3, 2018 | ||
2010 Senior Credit Facility Term Loan Due 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity year of senior credit facility term loan - start | Oct. 21, 2010 | ||
Maturity date | Oct. 21, 2016 | ||
6.25% Convertible Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of convertible notes | 6.25% | 6.25% | 6.25% |
Maturity date | May 1, 2018 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Debt Disclosure [Abstract] | |
Unamortized debt issuance costs | $ 4,469 |
Long-Term Obligations - Sched88
Long-Term Obligations - Schedule of Aggregate Maturities of Long-term Obligations (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 3,671 |
2,017 | 4,323 |
2,018 | 186,986 |
2,019 | 39 |
2,020 | 52 |
Thereafter | 2,675 |
Total | $ 197,746 |
Long Term Obligations - 2015 Se
Long Term Obligations - 2015 Senior Credit Facilities - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Nov. 27, 2015 | Sep. 14, 2015 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
LIBOR spread | 4.75% | 4.75% | ||
Commencing swap date | Jun. 30, 2012 | |||
Expiration Date | Sep. 30, 2012 | |||
Change in fair value credited to interest expense | $ 820,000 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Combined senior secured financing | $ 100,000,000 | |||
Term loan facility, amount outstanding | $ 89,750,000 | 90,000,000 | $ 89,750,000 | |
Fund transaction fees and expenses | $ 3,907,000 | |||
Weighted interest rate on term loan portion | 6.64% | 6.64% | ||
Maturity date | Mar. 3, 2018 | |||
Total Leverage Ratio defined | 2.75 | 2.75 | ||
Rate of increase the interest rate outstanding obligations | 2.00% | |||
Notional amounts of floating-to-fixed interest rate swaps | $ 44,827,000 | |||
Interest rate of floating-to-fixed interest rate swaps | 5.833% | |||
LIBOR spread | 4.50% | |||
Commencing swap date | Dec. 18, 2015 | |||
Expiration Date | Dec. 31, 2017 | |||
Change in fair value credited to interest expense | $ 83,000 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Company's Total Leverage Ratio | 2.75 | 2.75 | ||
2015 Senior Secured Credit Facilities Due 2018 [Member] | First Lien Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan facility, amount outstanding | $ 65,000,000 | |||
Revolving credit facility | 10,000,000 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | First Lien Revolving Credit Facility Due January 2, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Availability under line of credit facility | 10,000,000 | |||
Percentage of commitment fee on average daily unused portion | 0.25% | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | First Lien Revolving Credit Facility Due January 2, 2018 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR interest rate | 1.00% | 1.00% | ||
2015 Senior Secured Credit Facilities Due 2018 [Member] | Second Lien Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan facility, amount outstanding | 25,000,000 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | First Lien Term Loan Facility Due January 2, 2018 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR interest rate | 1.00% | 1.00% | ||
2015 Senior Secured Credit Facilities Due 2018 [Member] | Second Lien Term Loan Facility Due March 3, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Mar. 3, 2018 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | Second Lien Term Loan Facility Due March 3, 2018 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR interest rate | 1.00% | 1.00% | ||
2015 Senior Secured Credit Facilities Due 2018 [Member] | Revolving Credit Facility Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Jan. 2, 2018 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | First Lien Facility Due January 2, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Quarterly principal payments fourth quarter of 2015 | 250,000 | |||
Quarterly principal payments 2016 | 750,000 | |||
Quarterly principal payments 2017 | 1,000,000 | |||
Maturity date | Jan. 2, 2018 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | First Lien Facility Extended To June 30, 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Jun. 30, 2020 | |||
Quarterly principal payments 2018 | 1,250,000 | |||
Quarterly principal payments 2019 | 1,500,000 | |||
Quarterly principal payments first quarter of 2020 | 1,500,000 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | Second Lien Term Loan Facility Extended To September 30, 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Sep. 30, 2020 | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR spread | 4.50% | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | LIBOR [Member] | First Lien Revolving Credit Facility Due January 2, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate over LIBOR | 4.50% | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | LIBOR [Member] | First Lien Term Loan Facility Due January 2, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate over LIBOR | 4.50% | |||
2015 Senior Secured Credit Facilities Due 2018 [Member] | LIBOR [Member] | Second Lien Term Loan Facility Due March 3, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate over LIBOR | 8.50% | |||
6.25% Convertible Notes Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Dec. 31, 2020 | |||
6.25% Convertible Notes Due 2020 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible notes, maximum amount outstanding | $ 30,000,000 |
Long Term Obligations - 2010 Se
Long Term Obligations - 2010 Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | Feb. 02, 2015 | Dec. 04, 2014 | Jul. 22, 2013 | Nov. 01, 2012 | Jul. 31, 2012 | Sep. 30, 2015 | Mar. 31, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 |
Debt Instrument [Line Items] | |||||||||||
Loss on extinguishment of debt | $ 4,878,000 | $ 1,663,000 | |||||||||
Notional amounts of forward floating-to-fixed interest rate swaps, one | 115,500,000 | ||||||||||
Notional amounts of forward floating-to-fixed interest rate swaps, two | $ 77,000,000 | ||||||||||
Interest rate of forward floating-to-fixed interest rate swaps, one | 7.22% | ||||||||||
Interest rate of forward floating-to-fixed interest rate swaps, two | 7.225% | ||||||||||
Accumulated other comprehensive loss, amount of reclassification | $ (1,160,000) | $ (950,000) | (1,358,000) | ||||||||
LIBOR spread | 4.75% | ||||||||||
Notional amounts of floating-to-fixed interest rate swaps, over-hedged | $ 110,268,000 | ||||||||||
Other Comprehensive Income (loss) to interest expense | $ (1,970,000) | (1,613,000) | (2,307,000) | ||||||||
Principal payment on the term loan | 333,961,000 | 24,419,000 | 99,565,000 | ||||||||
Debt issuance costs related to repayment | $ 4,901,000 | $ 206,000 | |||||||||
2010 Senior Credit Facility Term Loan Due 2016 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount including accrued interest and fees | $ 81,526,000 | ||||||||||
Loss on extinguishment of debt | $ 1,312,000 | ||||||||||
Transaction to enter into senior credit facility | $ 470,000,000 | ||||||||||
Term loan borrowings | 440,000,000 | ||||||||||
Term loan discount | $ 4,400,000 | ||||||||||
Term loan discount percentage | 1.00% | ||||||||||
Percentage of quarterly principal payments | 0.25% | ||||||||||
Quarterly principal payments | $ 1,100,000 | $ 1,825,000 | |||||||||
Quarter principal payments 2014 | 3,300,000 | ||||||||||
Quarterly principal payments 2015 | 3,675,000 | ||||||||||
Quarterly principal payments 2016 | 3,300,000 | ||||||||||
Revolving credit agreement | 30,000,000 | ||||||||||
Letters of credit outstanding, amount | $ 2,212,000 | ||||||||||
Debt instrument interest rate increase | 0.25% | ||||||||||
Interest rate over LIBOR | 4.00% | ||||||||||
Increased interest rate over LIBOR | 4.75% | ||||||||||
LIBOR floor rate | 1.50% | ||||||||||
Principal payment on the term loan | $ 65,000,000 | ||||||||||
Total Leverage Ratio defined | 3.50 | ||||||||||
Notional amounts of forward floating-to-fixed interest rate swaps | $ 192,500,000 | ||||||||||
Notional amounts of forward floating-to-fixed interest rate swaps, one | $ 115,500,000 | 115,500,000 | |||||||||
Notional amounts of forward floating-to-fixed interest rate swaps, two | $ 77,000,000 | $ 77,000,000 | |||||||||
Interest rate of forward floating-to-fixed interest rate swaps | 7.22% | 6.463% | |||||||||
Interest rate of forward floating-to-fixed interest rate swaps, one | 7.225% | 6.47% | |||||||||
Interest rate of forward floating-to-fixed interest rate swaps, two | 6.475% | ||||||||||
Credit Facility, as a result of potential increment | $ 65,000,000 | ||||||||||
Termination charges | $ 4,073,000 | ||||||||||
Accumulated other comprehensive loss, amount of reclassification | $ 707,000 | ||||||||||
LIBOR spread | 4.75% | ||||||||||
Notional amounts of floating-to-fixed interest rate swaps, over-hedged | $ 109,800,000 | ||||||||||
Other Comprehensive Income (loss) to interest expense | $ (31,000) | ||||||||||
Principal payment on the term loan | 240,472,000 | ||||||||||
Debt instrument unamortized discount | 721,000 | $ 1,014,000 | |||||||||
Debt issuance costs related to repayment | $ 1,907,000 |
Long Term Obligations - 6.25% C
Long Term Obligations - 6.25% Convertible Notes due 2018 - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 29, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Aug. 29, 2013 | May. 10, 2011 |
Debt Instrument [Line Items] | ||||||||
Common stock, conversion features | Company's common stock equals or exceeds 130% of the conversion price of the 6.25% Notes for at least 20 trading-days during the last 30 trading-days of the previous fiscal quarter | |||||||
Common stock, shares authorized | 145,000,000 | 145,000,000 | ||||||
Common shares issued | 50,530,000 | 49,660,000 | ||||||
Loss on extinguishment of debt | $ 4,878 | $ 1,663 | ||||||
6.25% Convertible Notes Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of convertible notes | $ 120,000 | $ 120,000 | ||||||
Interest rate of convertible notes | 6.25% | 6.25% | 6.25% | |||||
Maturity year of convertible notes | May 1, 2018 | |||||||
Shares received upon conversion | 97.2668 | |||||||
Principal amount for initial conversion | $ 1,000 | |||||||
Initial conversion price | $ 10.28 | |||||||
Conversion price percentage of company's common stock | 130.00% | |||||||
Debt instrument conversion condition trading days minimum | 20 days | |||||||
Debt instrument conversion condition trading days | 30 days | |||||||
Trading-day period | 5 days | |||||||
Parity value of trading-day period | 98.00% | |||||||
Debt instrument repurchase condition principal percentage | 100.00% | |||||||
Discounted percentage of interest payments | 8.61% | |||||||
Net carrying amount of equity component | $ 8,500 | |||||||
Net of tax benefit | $ 5,931 | |||||||
Common shares issued | 1,203,000 | 698,000 | ||||||
Principal payment on the term loan | $ 3,500 | $ 2,500 | ||||||
Principal amount of debt instrument repurchased | $ 10,000 | |||||||
Cash settlement on repurchase of notes | 10,572 | |||||||
Loss on extinguishment of debt | $ 938 | |||||||
6.25% Convertible Notes Due 2018 [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of convertible notes | 6.25% | |||||||
Principal amount of debt instrument repurchased | $ 10,000 | |||||||
Cash settlement on repurchase of notes | 10,053 | |||||||
Loss on extinguishment of debt | $ 374 | |||||||
Debt instrument, Date of repurchase | Jan. 29, 2016 | |||||||
6.25% Convertible Notes Due 2018 [Member] | Maximum [Member] | Board of Directors [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock, shares authorized | 4,700,000 |
Long-Term Obligations - Sched92
Long-Term Obligations - Schedule of Data Regarding 6.25% and 5.75% Notes (Detail) - 6.25% Convertible Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Net carrying amount of the equity component | $ 7,099 | $ 7,782 |
Principal amount of the convertible notes | 104,000 | 114,000 |
Unamortized debt discount | $ 4,641 | $ 7,242 |
Amortization period remaining | 28 months | 40 months |
Net carrying amount of the convertible notes | $ 99,359 | $ 106,758 |
Long-Term Obligations - Sched93
Long-Term Obligations - Schedule of Interest Components of 6.25% and 5.75% Notes Contained in Company's "Consolidated Statements of Comprehensive (Loss) Income" (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
6.25% Convertible Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Coupon interest expense | $ 6,947 | $ 7,125 | |
Amortization of the debt discount | 2,601 | 1,971 | |
Total included in interest expense | $ 9,548 | $ 9,096 | |
5.75% Convertible Notes Paid/Extinguished 2013 [Member] | |||
Debt Instrument [Line Items] | |||
Coupon interest expense | $ 122 | ||
Amortization of the debt discount | 114 | ||
Total included in interest expense | $ 236 |
Long Term Obligations - 5.75% C
Long Term Obligations - 5.75% Convertible Notes Paid/Extinguished 2013 - Additional Information (Detail) - 5.75% Convertible Notes Paid/Extinguished 2013 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Apr. 08, 2008 | |
Debt Instrument [Line Items] | ||
Principal amount of convertible notes | $ 125,000 | |
Net proceeds from offering | $ 110,053 | |
Repurchase of convertible notes | $ 98,340 |
Long Term Obligations - Capital
Long Term Obligations - Capital Leases and Other Long-term Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term obligations | $ 188,689 | $ 429,499 |
Capital Leases and Other Long-term Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 8.36% | 8.57% |
Agreement maturity period | 2,043 | 2,043 |
Long-term obligations | $ 3,996 | $ 7,918 |
Long Term Obligations - Debt Is
Long Term Obligations - Debt Issuance Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 3,960 | $ 2,460 | $ 3,836 |
Loss on Extinguishment of Debt [Member] | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | 2,446 | $ 1,305 | |
Senior Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 3,907 |
Long Term Obligations - Debt Di
Long Term Obligations - Debt Discounts - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Accretion of debt discounts | $ 4,641 | $ 2,644 | $ 3,096 |
Loss on Extinguishment of Debt [Member] | |||
Debt Instrument [Line Items] | |||
Accretion of debt discounts | $ 2,041 | $ 436 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | $ 65,265 | $ 24,370 |
Deferred GCI Capacity Revenue, Net of Current Portion [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | 37,338 | |
Other Deferred IRU Capacity Revenue, Net of Current Portion [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | 4,420 | 3,335 |
Other Deferred Revenue, Net of Current Portion [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | 14,445 | 9,091 |
Other [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | $ 9,062 | $ 11,944 |
Accumulated Other Comprehensi99
Accumulated Other Comprehensive (Loss) Income - Summary of Activity in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ (5,151) | $ (5,609) | |
Other comprehensive (loss) income before reclassifications | 351 | (758) | |
Reclassifications from accumulated comprehensive loss to net income (loss) | 1,714 | 1,216 | $ 1,779 |
Total other comprehensive income | 2,065 | 458 | 3,630 |
Ending Balance | (3,086) | (5,151) | (5,609) |
Interest Rate Swaps [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1,512) | (3,371) | |
Other comprehensive (loss) income before reclassifications | 355 | 909 | |
Reclassifications from accumulated comprehensive loss to net income (loss) | 1,160 | 950 | |
Total other comprehensive income | 1,515 | 1,859 | |
Ending Balance | 3 | (1,512) | (3,371) |
Defined Benefit Pension Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (3,639) | (2,238) | |
Other comprehensive (loss) income before reclassifications | (4) | (1,667) | |
Reclassifications from accumulated comprehensive loss to net income (loss) | 554 | 266 | |
Total other comprehensive income | 550 | (1,401) | |
Ending Balance | $ (3,089) | $ (3,639) | $ (2,238) |
Accumulated Other Comprehens100
Accumulated Other Comprehensive (Loss) Income - Summary of Reclassifications from Accumulated Other Comprehensive (Loss) Income to Net Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortization of defined benefit plan pension items: | |||
Amortization of loss | $ 936 | $ 451 | $ 717 |
Income tax effect | (382) | (185) | (296) |
After tax | 554 | 266 | 421 |
Amortization of loss on ineffective interest rate swap: | |||
Reclassification to interest expense | 1,970 | 1,613 | 2,307 |
Income tax effect | (810) | (663) | (949) |
After tax | 1,160 | 950 | 1,358 |
Total reclassifications net of income tax | $ 1,714 | $ 1,216 | $ 1,779 |
Accumulated Other Comprehens101
Accumulated Other Comprehensive (Loss) Income - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Interest Expense [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Accumulated other comprehensive loss to be reclassified to interest expense | $ 0 |
Retirement Plans - Additional I
Retirement Plans - Additional Information about AEPF Multi-Employer Pension Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Plan name | Alaska Electrical Pension Plan | ||
Employer Identification Number | 926,005,171 | ||
Pension plan number | 1 | ||
Pension Protection Act zone status at the plan's year-end: | Green | Green | |
Plan subject to funding improvement plan | No | ||
Plan subject to rehabilitation plan | No | ||
Employer subject to contribution surcharge | No | ||
Greater than 5% of Total Contributions to the Plan | Yes | Yes | Yes |
Collective Bargaining Agreement [Member] | |||
Multiemployer Plans [Line Items] | |||
Expiration date of collective bargaining agreements | Dec. 31, 2016 | ||
Outside Agreement [Member] | |||
Multiemployer Plans [Line Items] | |||
Expiration date of collective bargaining agreements | Sep. 30, 2016 | ||
Inside Agreement [Member] | |||
Multiemployer Plans [Line Items] | |||
Expiration date of collective bargaining agreements | Oct. 31, 2016 | ||
Special Agreement [Member] | |||
Multiemployer Plans [Line Items] | |||
Expiration date of collective bargaining agreements | Dec. 31, 2016 | ||
AEPF Multi-Employer Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 7,968 | $ 8,626 | $ 9,174 |
Retirement Plans - Additiona103
Retirement Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contribution to the plan | $ 779 | $ 898 | |
Expectation of amortization of net gains and losses | 921 | ||
Defined Benefit ACS Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contribution to the plan | 779 | 898 | $ 360 |
Company's expected contribution to the plan in 2016 | 782 | ||
Liability balance recorded on balance sheets in "other long term liabilities" | 4,892 | 5,664 | |
ACS Health Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount by which plan was underfunded | 167 | ||
Plan overfunded with plan assets | 119 | ||
Net periodic post-retirement cost | 9 | 7 | |
Defined Contribution Plan 401K [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contribution to retirement savings plan | $ 187 | $ 213 | $ 174 |
Retirement Plans - Funded Statu
Retirement Plans - Funded Status of ACS Retirement Plan Using Beginning and Ending Balances for Projected Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 17,234 | $ 15,284 | |
Interest cost | 666 | 674 | $ 635 |
Actuarial (gain) loss | (754) | 2,283 | |
Benefits paid | (1,052) | (1,007) | |
Benefit obligation at end of year | 16,094 | 17,234 | 15,284 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 11,570 | 11,548 | |
Actual return on plan assets | (95) | 131 | |
Employer contribution | 779 | 898 | |
Benefits paid | (1,052) | (1,007) | |
Fair value of plan assets at end of year | 11,202 | 11,570 | $ 11,548 |
Funded status | $ (4,892) | $ (5,664) |
Retirement Plans - Summary of N
Retirement Plans - Summary of Net Periodic Pension Expense for ACS Retirement Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Interest cost | $ 666 | $ 674 | $ 635 |
Expected return on plan assets | (659) | (749) | (706) |
Amortization of loss | 929 | 536 | 788 |
Net periodic pension expense | $ 936 | $ 451 | $ 717 |
Retirement Plans - Loss Recogni
Retirement Plans - Loss Recognized As Component of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pension and Other Postretirement Benefit Expense [Abstract] | ||
Loss recognized as a component of accumulated other comprehensive loss | $ 5,249 | $ 6,178 |
Retirement Plans - Assumptions
Retirement Plans - Assumptions Used to Account for Plan (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Discount rate for benefit obligation | 4.30% | 3.97% |
Discount rate for pension expense | 3.97% | 4.49% |
Expected long-term rate of return on assets | 6.53% | 6.53% |
Rate of compensation increase | 0.00% | 0.00% |
Retirement Plans - Asset Alloca
Retirement Plans - Asset Allocation Guidelines for Plan (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset Category, Minimum | 50.00% |
Asset Category, Maximum | 80.00% |
Fixed Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset Category, Minimum | 20.00% |
Asset Category, Maximum | 50.00% |
Cash Equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset Category, Minimum | 0.00% |
Asset Category, Maximum | 5.00% |
Retirement Plans - Plan's Asset
Retirement Plans - Plan's Asset Allocations by Asset Category (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category, Plan asset allocations | 64.00% | 65.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category, Plan asset allocations | 34.00% | 34.00% |
Other/Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Category, Plan asset allocations | 2.00% | 1.00% |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Measuring Fair Value of Plan Assets Regarding ACS Retirement Plan (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | $ 11,202 | $ 11,570 | $ 11,548 |
Money Market [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 220 | ||
International Growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,709 | ||
U.S Small Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,458 | ||
U.S. Medium Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,134 | ||
U.S. Large Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 2,867 | ||
Certificate of Deposits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,738 | ||
Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 2,076 | ||
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 11,202 | ||
Level 1 [Member] | Money Market [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 220 | ||
Level 1 [Member] | International Growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,709 | ||
Level 1 [Member] | U.S Small Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,458 | ||
Level 1 [Member] | U.S. Medium Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,134 | ||
Level 1 [Member] | U.S. Large Cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 2,867 | ||
Level 1 [Member] | Certificate of Deposits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | 1,738 | ||
Level 1 [Member] | Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets regarding ACS Retirement Plan | $ 2,076 |
Retirement Plans - Summary of B
Retirement Plans - Summary of Benefits Expected to be Paid for Plan (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 1,046 |
2,017 | 1,089 |
2,018 | 1,106 |
2,019 | 1,077 |
2,020 | 1,088 |
2021-2025 | $ 5,364 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
6.25% Convertible Notes Due 2018 [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate of convertible notes | 6.25% | 6.25% | 6.25% |
Maturity year of convertible notes | May 1, 2018 | ||
Shares received upon conversion | 97.2668 | ||
Principal amount for initial conversion | $ 1,000 | ||
Initial conversion price | $ 10.28 | ||
Convertible note, convertible beginning date | Feb. 1, 2018 | ||
5.75% Convertible Notes Paid/Extinguished 2013 [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate of convertible notes | 5.75% | ||
Convertible Notes Payable [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from calculation | 10,809,000 | ||
Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from calculation | 24,000 | ||
Restricted Stock and Deferred Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from calculation | 2,345,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Net income (loss) attributable to Alaska Communications | $ 339 | $ 1,239 | $ (4,841) | $ 16,217 | $ (5,358) | $ 1,878 | $ 1,085 | $ (385) | $ 12,954 | $ (2,780) | $ 158,471 |
Tax-effected interest expense attributable to convertible notes | 5,813 | ||||||||||
Net income (loss) attributable to ACS assuming dilution | $ 12,954 | $ (2,780) | $ 164,284 | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic shares | 50,247 | 49,334 | 47,092 | ||||||||
Effect of stock-based compensation | 1,121 | 530 | |||||||||
Effect of 6.25% convertible notes | 11,485 | ||||||||||
Diluted shares | 51,368 | 49,334 | 59,107 | ||||||||
Income (loss) per share attributable to Alaska Communications: | |||||||||||
Basic | $ 0.01 | $ 0.02 | $ (0.10) | $ 0.32 | $ (0.11) | $ 0.04 | $ 0.02 | $ (0.01) | $ 0.26 | $ (0.06) | $ 3.37 |
Diluted | $ 0.01 | $ 0.02 | $ (0.10) | $ 0.32 | $ (0.11) | $ 0.04 | $ 0.02 | $ (0.01) | $ 0.25 | $ (0.06) | $ 2.78 |
Earnings Per Share - Calcula114
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
6.25% Convertible Notes Due 2018 [Member] | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Percentage of Convertible Notes, Anti-dilutive | 6.25% | 6.25% | 6.25% |
Income Taxes - Schedule of Cons
Income Taxes - Schedule of Consolidated Income (Loss) Before Income Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income tax | $ 23,085 | $ (4,567) | $ 214,841 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | ||||
Federal income tax | $ 4,320 | $ 217 | ||
State income tax | 693 | 43 | ||
Total current expense | 5,013 | 260 | ||
Deferred: | ||||
Federal, excluding operating loss carry forwards | 69,774 | (1,620) | $ 43,301 | |
State, excluding operating loss carry forwards | 19,725 | (427) | 14,969 | |
Change in valuation allowance | (1,900) | |||
Tax benefit of operating loss carry forwards: | ||||
Federal | (66,285) | |||
State | (18,027) | |||
Total deferred expense (benefit) | 4,883 | (2,047) | 56,370 | |
Total income tax expense (benefit) | $ (29,894) | $ 10,200 | $ (1,787) | $ 56,370 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||||
Reconciliation of the federal statutory tax rate | 35.00% | 35.00% | 35.00% | ||
Valuation allowance | $ 0 | ||||
Current deferred tax assets | $ 104,245,000 | ||||
Non-current deferred tax liabilities | 81,267,000 | ||||
Alternative minimum tax carry forward | $ 9,668,000 | 5,308,000 | |||
Net operating loss carry forwards, expiration dates | Expiration dates beginning in 2031 through 2035. | ||||
Recognized tax benefit | $ 29,894,000 | $ (10,200,000) | $ 1,787,000 | $ (56,370,000) | |
Crest [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Additional income tax expense | $ 29,678,000 | ||||
Additional income tax receivable | $ 2,781,000 | ||||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Alternative minimum tax carry forward | 8,932,000 | ||||
Net operating loss carry forwards subject to expiration | 45,122,000 | ||||
State [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Alternative minimum tax carry forward | 1,132,000 | ||||
Net operating loss carry forwards subject to expiration | $ 17,533,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Federal Statutory Tax to Recorded Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Computed federal income taxes at the statutory rate | $ 8,080 | $ (1,598) | $ 75,194 | |
Expense (benefit) in tax resulting from: | ||||
State income taxes (net of Federal benefit) | 1,408 | (278) | 13,104 | |
Other | 263 | 58 | (178) | |
Stock-based compensation | 449 | 31 | 44 | |
Change in valuation allowance | (1,900) | |||
Crest examination settlement | (29,894) | |||
Total income tax expense (benefit) | $ (29,894) | $ 10,200 | $ (1,787) | $ 56,370 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 16,863 | $ 94,435 |
Deferred capacity revenue | 22,654 | |
Reserves and accruals | 6,522 | 8,158 |
Intangibles and goodwill | 1,765 | 6,694 |
Fair value on interest rate swaps | 1,055 | |
Pension liability | 2,010 | 2,304 |
Allowance for doubtful accounts | 696 | 1,164 |
Alternative minimum tax carry forward | 9,668 | 5,308 |
Other | 277 | 1,032 |
Deferred tax assets after valuation allowance | 60,455 | 120,150 |
Deferred tax liabilities: | ||
Debt issuance costs | (1,907) | (2,596) |
Property, plant and equipment | (41,886) | (23,999) |
Fair value on interest rate swaps | (2) | |
Total deferred tax liabilities | (43,795) | (97,172) |
Net deferred tax asset | $ 16,660 | 22,978 |
Alaska Wireless Network, LLC [Member] | ||
Deferred tax liabilities: | ||
AWN investment | $ (70,577) |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2009 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
2011 Incentive Award Plan termination year | 2,021 | ||
Number of stock option granted | 0 | ||
Number of stock option outstanding | 0 | ||
Number of shares expected to be repurchased in 2016 | 286,000 | ||
Periodic payroll deduction maximum for acquisition of common stock | 15.00% | ||
Periodic payroll deduction minimum for acquisition of common stock | 1.00% | ||
2012 ESPP [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Eligible working hours for ESPP per week | 20 hours | ||
Eligible working months for ESPP | 5 months | ||
Maximum purchase amount of common stock per individual per calendar year | $ 25,000 | ||
Maximum common stock ownership for participation in ESSP | 5.00% | ||
Maximum number of shares that an individual employee can purchase during six month offering | 10 | ||
Company reserved common stock for issuance | 1,500,000 | ||
Share Based Incentive Plans All [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Company authorized common stock for issuance | 19,210,000 | ||
Restricted Stock Unit [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Options vesting period | 3 years | ||
Restricted Stock Unit [Member] | Minimum [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Options vesting period | 1 year | ||
Restricted Stock Unit [Member] | Maximum [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Options vesting period | 5 years | ||
LTIP [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Options vesting period | 5 years | ||
Performance Share Units [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Options vesting period | 3 years | ||
Stock Appreciation Rights (SARs) [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Options vesting period | 5 years | ||
Number of stock options issued | 0 | ||
Number of stock option outstanding | 0 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Activity for Restricted Stock Units, Long-Term Incentive Awards and Non-Employee Director Stock Compensation (Detail) - Restricted Stock Unit [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Summary of activity for restricted stock units, long-term incentive awards and non-employee director stock compensation | |
Number of Shares - Nonvested at December 31, 2014 | shares | 1,299 |
Number of Shares - Granted | shares | 1,224 |
Number of Shares - Vested | shares | (704) |
Number of Shares - Canceled or expired | shares | (633) |
Number of Shares - Nonvested at December 31, 2015 | shares | 1,186 |
Weighted Average Grant Date Fair Value - Nonvested at December 31, 2014 | $ / shares | $ 2.30 |
Weighted Average Grant Date Fair Value - Granted | $ / shares | 1.84 |
Weighted Average Grant Date Fair Value - Vested | $ / shares | 2.66 |
Weighted Average Grant Date Fair Value - Canceled or expired | $ / shares | 1.89 |
Weighted Average Grant Date Fair Value - Nonvested at December 31, 2015 | $ / shares | $ 1.83 |
Stock Incentive Plans - Summ122
Stock Incentive Plans - Summary of Activity for Performance Share Units (Detail) - Performance Share Units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Summary of activity for performance share units | |
Number of Shares - Nonvested at December 31, 2014 | shares | 790 |
Number of Shares - Granted | shares | 1,118 |
Number of Shares - Vested | shares | (257) |
Number of Shares - Canceled or expired | shares | (667) |
Number of Shares - Nonvested at December 31, 2015 | shares | 984 |
Weighted Average Grant Date Fair Value - Nonvested at December 31, 2014 | $ / shares | $ 1.78 |
Weighted Average Grant Date Fair Value - Granted | $ / shares | 1.80 |
Weighted Average Grant Date Fair Value - Vested | $ / shares | 1.70 |
Weighted Average Grant Date Fair Value - Canceled or expired | $ / shares | 1.84 |
Weighted Average Grant Date Fair Value - Nonvested at December 31, 2015 | $ / shares | $ 1.78 |
Stock Incentive Plans - Summ123
Stock Incentive Plans - Summary of Assumptions Used for Valuation of Equity Instruments Granted (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted stock: | |||
Risk free rate, minimum | 0.00% | 0.00% | 0.03% |
Risk free rate, maximum | 0.23% | 0.18% | |
Quarterly dividend | $ 0 | $ 0 | $ 0 |
Expected, per annum, forfeiture rate | 9.00% | 9.00% | |
Minimum [Member] | |||
Restricted stock: | |||
Expected, per annum, forfeiture rate | 0.00% | ||
Maximum [Member] | |||
Restricted stock: | |||
Expected, per annum, forfeiture rate | 9.00% |
Stock Incentive Plans - Share-B
Stock Incentive Plans - Share-Based Compensation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total compensation cost for share-based payments | $ 2,008 | $ 2,511 | $ 2,860 |
Weighted average grant-date fair value of equity instruments granted | $ 1.82 | $ 1.87 | $ 1.77 |
Total fair value of shares vested during the period | $ 2,615 | $ 2,935 | $ 5,011 |
Unamortized share-based payments | $ 1,421 | $ 1,392 | $ 1,748 |
Weighted average period in years to be recognized as expense | 1 year 4 months 21 days | 1 year 5 months 12 days | 1 year 9 months |
Supplemental Cash Flow Infor125
Supplemental Cash Flow Information - Schedule of Supplemental Non-Cash Transaction and Nonmonetary Exchange Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Non-cash Transactions: | |||
Capital expenditures incurred but not paid at December 31 | $ 11,600 | $ 6,678 | $ 8,612 |
Property acquired under capital leases | 20 | 1,877 | 171 |
Additions to ARO asset | 254 | 369 | 229 |
Accrued acquisition purchase price | 0 | 0 | 0 |
Accrued acquisition purchase price | 291 | ||
Exchange of debt with common stock | $ 6,000 | ||
Non-cash acquisition, net of cash received | $ 956 | ||
Note receivable on sale of asset | 2,650 | ||
Property, plant and equipment [Member] | |||
Nonmonetary Exchanges: | |||
Nonmonetary Exchanges | 710 | ||
Deferred revenue [Member] | |||
Nonmonetary Exchanges: | |||
Nonmonetary Exchanges | (2,310) | ||
Prepaid expenses [Member] | |||
Nonmonetary Exchanges: | |||
Nonmonetary Exchanges | 1,600 | ||
IRUs received [Member] | |||
Nonmonetary Exchanges: | |||
Nonmonetary Exchanges | 2,765 | ||
IRUs relinquished [Member] | |||
Nonmonetary Exchanges: | |||
Nonmonetary Exchanges | (2,765) | ||
Noncontrolling Interests [Member] | |||
Supplemental Non-cash Transactions: | |||
Assets contributed to joint venture | $ 922 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments in which business operates | 1 |
Business Segments - Service and
Business Segments - Service and Product Revenues from External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Growth in Service Revenue | 5.80% | 7.00% | |||||||||
Growth in Broadband Service Revenue | 9.40% | 10.40% | 9.40% | 10.40% | |||||||
Growth in service and other revenue | 2.20% | 8.00% | |||||||||
Growth excluding equipment sales | 1.70% | 6.40% | 1.70% | 6.40% | |||||||
Revenues | $ 56,631 | $ 54,735 | $ 55,665 | $ 65,786 | $ 77,509 | $ 78,465 | $ 80,558 | $ 78,331 | $ 232,817 | $ 314,863 | $ 348,924 |
Other Revenue [Member] | Equipment Sales and Installations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,382 | 5,321 | 2,083 | ||||||||
Other Revenue [Member] | Access [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 33,644 | 35,323 | 37,033 | ||||||||
Other Revenue [Member] | High Cost Support [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19,682 | 23,192 | 18,776 | ||||||||
Wireless and AWN Related Revenue: [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,015 | 99,770 | 149,687 | ||||||||
Wireless and AWN Related Revenue: [Member] | Service Revenue Equipment Sales and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,300 | 77,054 | 81,093 | ||||||||
Wireless and AWN Related Revenue: [Member] | Foreign Roaming and Wireless Backhaul [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 46,064 | ||||||||||
Wireless and AWN Related Revenue: [Member] | Transition Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,769 | ||||||||||
Wireless and AWN Related Revenue: [Member] | CETC [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,654 | 19,565 | 21,019 | ||||||||
Wireless and AWN Related Revenue: [Member] | Amortization of Deferred AWN Capacity Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 292 | 3,151 | 1,511 | ||||||||
Services Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 160,094 | 151,257 | 141,345 | ||||||||
Services Revenues [Member] | Business and Wholesale Service Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 120,173 | 109,921 | 100,680 | ||||||||
Services Revenues [Member] | Business and Wholesale Service Revenue [Member] | Voice [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 21,969 | 22,499 | 22,947 | ||||||||
Services Revenues [Member] | Business and Wholesale Service Revenue [Member] | Broadband [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 50,007 | 43,783 | 40,027 | ||||||||
Services Revenues [Member] | Business and Wholesale Service Revenue [Member] | Managed IT Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,316 | 3,492 | |||||||||
Services Revenues [Member] | Business and Wholesale Service Revenue [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 8,089 | 7,104 | 7,659 | ||||||||
Services Revenues [Member] | Business and Wholesale Service Revenue [Member] | Wholesale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 36,792 | 33,043 | 30,047 | ||||||||
Services Revenues [Member] | Consumer Service Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 39,921 | 41,336 | 40,665 | ||||||||
Services Revenues [Member] | Consumer Service Revenue [Member] | Voice [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,530 | 14,932 | 16,818 | ||||||||
Services Revenues [Member] | Consumer Service Revenue [Member] | Broadband [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 25,050 | 24,841 | 22,108 | ||||||||
Services Revenues [Member] | Consumer Service Revenue [Member] | Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,341 | 1,563 | 1,739 | ||||||||
Service and Other Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 219,802 | $ 215,093 | $ 199,237 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation costs | $ 647 |
Selected Quarterly Financial129
Selected Quarterly Financial Information - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 56,631 | $ 54,735 | $ 55,665 | $ 65,786 | $ 77,509 | $ 78,465 | $ 80,558 | $ 78,331 | $ 232,817 | $ 314,863 | $ 348,924 |
Gross profit | 30,525 | 30,062 | 25,587 | 34,520 | 31,108 | 33,515 | 35,757 | 33,513 | 120,694 | 133,893 | |
Operating income (loss) | 4,630 | 8,178 | (4,375) | 39,313 | (884) | 11,668 | 10,726 | 8,250 | 47,746 | 29,760 | 256,961 |
Net (loss) income | 326 | 1,202 | (4,860) | 16,217 | (5,358) | 1,878 | 1,085 | (385) | 12,885 | (2,780) | 158,471 |
Net (loss) income attributable Alaska Communications | $ 339 | $ 1,239 | $ (4,841) | $ 16,217 | $ (5,358) | $ 1,878 | $ 1,085 | $ (385) | $ 12,954 | $ (2,780) | $ 158,471 |
Net (loss) income per share attributable to Alaska Communications: | |||||||||||
Basic | $ 0.01 | $ 0.02 | $ (0.10) | $ 0.32 | $ (0.11) | $ 0.04 | $ 0.02 | $ (0.01) | $ 0.26 | $ (0.06) | $ 3.37 |
Diluted | $ 0.01 | $ 0.02 | $ (0.10) | $ 0.32 | $ (0.11) | $ 0.04 | $ 0.02 | $ (0.01) | $ 0.25 | $ (0.06) | $ 2.78 |
Selected Quarterly Financial130
Selected Quarterly Financial Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Gain on sale of Wireless assets, pre-tax | $ 7,092 | $ 1,421 | $ 39,719 | $ 48,232 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 29, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||||
Loss on extinguishment of debt | $ 4,878 | $ 1,663 | |||
6.25% Convertible Notes Due 2018 [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest rate of convertible notes | 6.25% | 6.25% | 6.25% | ||
Principal amount of debt instrument repurchased | $ 10,000 | ||||
Cash settlement on repurchase of notes | 10,572 | ||||
Loss on extinguishment of debt | $ 938 | ||||
Debt instrument, unamortized discount | $ 4,641 | $ 7,242 | |||
6.25% Convertible Notes Due 2018 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest rate of convertible notes | 6.25% | ||||
Principal amount of debt instrument repurchased | $ 10,000 | ||||
Debt instrument, Date of repurchase | Jan. 29, 2016 | ||||
Cash consideration of debt instrument repurchased | $ 9,750 | ||||
Cash settlement on repurchase of notes | 10,053 | ||||
Accrued interest and transaction fees paid | 303 | ||||
Loss on extinguishment of debt | 374 | ||||
Debt instrument, unamortized discount | $ 250 |