Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 22, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 51,339,605 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 22,248 | $ 36,001 |
Restricted cash | 1,811 | 1,824 |
Accounts receivable, net of allowance of $1,215 and $1,693 | 23,348 | 25,225 |
Materials and supplies | 4,984 | 4,674 |
Prepayments and other current assets | 4,280 | 8,068 |
Total current assets | 56,671 | 75,792 |
Property, plant and equipment | 1,346,470 | 1,337,098 |
Less: accumulated depreciation and amortization | (979,952) | (967,776) |
Property, plant and equipment, net | 366,518 | 369,322 |
Deferred income taxes | 16,063 | 16,660 |
Other assets | 1,762 | 1,827 |
Total assets | 441,014 | 463,601 |
Current liabilities: | ||
Current portion of long-term obligations | 4,018 | 3,671 |
Accounts payable, accrued and other current liabilities | 38,381 | 51,275 |
Advance billings and customer deposits | 4,052 | 4,513 |
Total current liabilities | 46,451 | 59,459 |
Long-term obligations, net of current portion | 175,483 | 185,018 |
Other long-term liabilities, net of current portion | 63,622 | 65,265 |
Total liabilities | 285,556 | 309,742 |
Commitments and contingencies | ||
Alaska Communications stockholders' equity: | ||
Common stock, $.01 par value; 145,000 authorized; 51,339 issued and outstanding at June 30, 2016; 50,530 issued and outstanding at December 31, 2015 | 513 | 505 |
Additional paid in capital | 157,954 | 156,971 |
Accumulated deficit | (1,231) | (1,634) |
Accumulated other comprehensive loss | (2,889) | (3,086) |
Total Alaska Communications stockholders' equity | 154,347 | 152,756 |
Noncontrolling interest | 1,111 | 1,103 |
Total stockholders' equity | 155,458 | 153,859 |
Total liabilities and stockholders' equity | $ 441,014 | $ 463,601 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,215 | $ 1,693 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, shares issued | 51,339,000 | 50,530,000 |
Common stock, shares outstanding | 51,339,000 | 50,530,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues: | ||||
Operating revenues, non-affiliates | $ 56,262 | $ 55,665 | $ 112,590 | $ 120,876 |
Operating revenues, affiliates | 575 | |||
Total operating revenues | 56,262 | 55,665 | 112,590 | 121,451 |
Operating expenses: | ||||
Cost of services and sales, non-affiliates | 25,543 | 30,078 | 51,671 | 56,383 |
Cost of services and sales, affiliates | 4,961 | |||
Selling, general and administrative | 17,586 | 22,611 | 34,926 | 50,595 |
Depreciation and amortization | 8,640 | 8,075 | 17,160 | 17,016 |
Loss (gain) on disposal of assets, net | 128 | (724) | 152 | (39,386) |
Earnings from equity method investments | (3,056) | |||
Total operating expenses | 51,897 | 60,040 | 103,909 | 86,513 |
Operating income (loss) | 4,365 | (4,375) | 8,681 | 34,938 |
Other income and (expense): | ||||
Interest expense | (3,852) | (4,257) | (7,721) | (11,676) |
Loss on extinguishment of debt | (336) | (2,628) | ||
Interest income | 6 | 17 | 11 | 42 |
Total other income and (expense) | (3,846) | (4,240) | (8,046) | (14,262) |
Income (loss) before income tax (expense) benefit | 519 | (8,615) | 635 | 20,676 |
Income tax (expense) benefit | (236) | 3,755 | (299) | (9,319) |
Net income (loss) | 283 | (4,860) | 336 | 11,357 |
Less net loss attributable to noncontrolling interest | (34) | (19) | (67) | (19) |
Net income (loss) attributable to Alaska Communications | 317 | (4,841) | 403 | 11,376 |
Other comprehensive income (loss): | ||||
Minimum pension liability adjustment | 14 | 21 | 28 | 42 |
Income tax effect | (6) | (9) | (15) | (18) |
Amortization of defined benefit plan loss | 217 | 273 | 434 | 546 |
Income tax effect | (89) | (112) | (178) | (224) |
Interest rate swap marked to fair value | (49) | 198 | (174) | 397 |
Income tax effect | 20 | (82) | 71 | (163) |
Reclassification to interest expense | 26 | 10 | 53 | 1,970 |
Income tax effect | (11) | (4) | (22) | (810) |
Total other comprehensive income | 122 | 295 | 197 | 1,740 |
Total comprehensive income (loss) attributable to Alaska Communications | 439 | (4,546) | 600 | 13,116 |
Net loss attributable to noncontrolling interest | (34) | (19) | (67) | (19) |
Total other comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Total comprehensive loss attributable to noncontrolling interest | (34) | (19) | (67) | (19) |
Total comprehensive income (loss) | $ 405 | $ (4,565) | $ 533 | $ 13,097 |
Net income (loss) per share attributable to Alaska Communications: | ||||
Basic | $ 0.01 | $ (0.10) | $ 0.01 | $ 0.23 |
Diluted | $ 0.01 | $ (0.10) | $ 0.01 | $ 0.22 |
Weighted average shares outstanding: | ||||
Basic | 51,231 | 50,252 | 50,986 | 50,085 |
Diluted | 52,138 | 50,252 | 52,006 | 51,082 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2016 - 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, 2015 | $ 153,859 | $ 505 | $ 156,971 | $ (1,634) | $ (3,086) | $ 1,103 |
Beginning Balance, Shares at Dec. 31, 2015 | 50,530 | |||||
Total comprehensive income (loss) | 533 | 403 | 197 | (67) | ||
Stock compensation | 1,447 | 1,447 | ||||
Extinguishment of convertible note options | (61) | (61) | ||||
Excess tax expense from share-based payments | (51) | (51) | ||||
Surrender of shares to cover minimum withholding taxes on stock-based compensation | (472) | (472) | ||||
Issuance of common stock, pursuant to stock plans, $.01 par | 128 | $ 8 | 120 | |||
Issuance of common stock, pursuant to stock plans, $.01 par, Shares | 809 | |||||
Contributions from noncontrolling interest | 75 | 75 | ||||
Ending Balance at Jun. 30, 2016 | $ 155,458 | $ 513 | $ 157,954 | $ (1,231) | $ (2,889) | $ 1,111 |
Ending Balance, Shares at Jun. 30, 2016 | 51,339 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 336 | $ 11,357 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 17,160 | 17,016 |
Gain on wireless sale | (41,140) | |
Loss on disposal of assets, net | 152 | 1,754 |
Unrealized gain on ineffective hedge | (542) | |
Amortization of debt issuance costs and debt discount | 2,021 | 2,043 |
Amortization of ineffective hedge | 1,970 | |
Loss on extinguishment of debt | 336 | 2,628 |
Amortization of deferred capacity revenue | (1,702) | (1,469) |
Stock-based compensation | 1,447 | 1,279 |
Deferred income tax expense (benefit) | 495 | (3,394) |
Charge for uncollectible accounts | 77 | 1,319 |
Cash distribution from equity method investments | 3,056 | |
Earnings from equity method investments | (3,056) | |
Other non-cash expense, net | 414 | 543 |
Income taxes (receivable) payable | (722) | 8,038 |
Changes in operating assets and liabilities | (1,077) | (9,648) |
Net cash provided (used) by operating activities | 18,937 | (8,246) |
Cash Flows from Investing Activities: | ||
Capital expenditures | (13,662) | (26,133) |
Capitalized interest | (548) | (788) |
Change in unsettled capital expenditures | (9,156) | 674 |
Proceeds on wireless sale | 278,068 | |
Proceeds on sale of assets | 2,663 | 3,126 |
Return of capital from equity investment | 1,875 | |
Net change in restricted cash | 13 | |
Net cash (used) provided by investing activities | (20,690) | 256,822 |
Cash Flows from Financing Activities: | ||
Repayments of long-term debt | (11,486) | (242,837) |
Debt issuance costs | (44) | (1,042) |
Cash paid for debt extinguishment | (150) | |
Cash paid in acquisition of business | (291) | |
Cash proceeds from noncontrolling interest | 75 | 250 |
Payment of withholding taxes on stock-based compensation | (472) | (402) |
Excess tax (expense) benefit from share-based payments | (51) | 733 |
Proceeds from the issuance of common stock | 128 | 135 |
Net cash used by financing activities | (12,000) | (243,454) |
Change in cash and cash equivalents | (13,753) | 5,122 |
Cash and cash equivalents, beginning of period | 36,001 | 31,709 |
Cash and cash equivalents, end of period | 22,248 | 36,831 |
Supplemental Cash Flow Data: | ||
Interest paid | 6,359 | 8,941 |
Income taxes paid, net | $ 577 | $ 3,942 |
Description of Company and Summ
Description of Company and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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” and “Alaska Communications”), a Delaware corporation, through its operating subsidiaries, provides broadband telecommunication and managed information technology (“managed IT”) services to customers in the State of Alaska and beyond using its telecommunications network. The accompanying unaudited condensed consolidated financial statements represent the consolidated financial position, comprehensive income and cash flows of Alaska Communications Systems Group, Inc. and the following wholly-owned subsidiaries: • Alaska Communications Systems Holdings, Inc. (“ACS Holdings”) • Crest Communications Corporation • WCI Cable, Inc. • ACS of Alaska, LLC (“ACSAK”) • WCIC Hillsboro, LLC • ACS of the Northland, LLC (“ACSN”) • Alaska Northstar Communications, LLC • ACS of Fairbanks, LLC (“ACSF”) • WCI LightPoint, LLC • ACS of Anchorage, LLC (“ACSA”) • World Net Communications, Inc. • ACS Wireless, Inc. (“ACSW”) • Alaska Fiber Star, LLC • ACS Long Distance, LLC (“ACSLD”) • TekMate, LLC (“TekMate”) • ACS Internet, LLC (“ACSI”) • ACS Messaging, Inc. (“ACSM”) • ACS Cable Systems, LLC (“ACSC”) 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. See Note 3 “ Joint Venture Sale of Wireless Operations” Basis of Presentation The accompanying unaudited condensed consolidated financial statements and footnotes included in this Quarterly Report on Form 10-Q 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 percent ownership interest in the joint venture as a noncontrolling interest. See Note 3 “ Joint Venture In the opinion of management, the unaudited condensed consolidated financial statements contain all normal, recurring adjustments necessary to present fairly the consolidated financial position, comprehensive income and cash flows for all periods presented. Comprehensive income for the three and six months ended June 30, 2016, is not necessarily indicative of comprehensive income which might be expected for the entire year or any other interim periods. The balance sheet at December 31, 2015 has been derived from the audited financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes, including estimates of probable losses and expenses. Actual results could differ materially from those estimates. Recently Adopted Accounting Pronouncements In the first quarter of 2016, the Company adopted Accountings Standards Update (“ASU”) No. 2015-05, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Accounting Pronouncements Issued Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting |
Sale of Wireless Operations
Sale of Wireless Operations | 6 Months Ended |
Jun. 30, 2016 | |
Sale of Wireless Operations [Member] | |
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 “Wireless Sale”). The transaction was completed on February 2, 2015, and a gain of $41,140 was recorded in the six-month period ended June 30, 2015 subject to resolution of potential purchase price adjustments. The following table provides the calculation of the gain: Consideration: Cash $ 37,596 Cash held in escrow 9,000 Principal payment on 2010 Senior Credit Facility 240,472 Total consideration 287,068 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 Contingent gain (9,000 ) Gain on disposal of assets $ 41,140 Upon resolution of purchase price adjustments in the second and third quarters of 2015, the final gain on the sale recorded in 2015 was $48,232 as detailed in the following table: 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 Cash proceeds on the sale in the six-month period ended June 30, 2015 were $278,068, of which $240,472 was used to pay down the Company’s 2010 Senior Secured Credit Facility. Following final resolution of adjustments for certain working capital assets and liabilities, minimum subscriber levels, preferred distributions and other adjustments, cash proceeds on the sale totaled $285,160 in 2015. In connection with its decision to sell its wireless operations, the Company incurred a number of transaction related and wind-down costs in 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 Accounting Standards Codification (“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 ASU 420 and ASU 712, as of and for the six-month period ended June 30, 2016. No further charges under these plans are expected. Labor Contract Other Total Balance at December 31, 2015 $ 1,223 $ — $ — $ 1,223 Credited to expense (93 ) — — (93 ) Paid and/or settled (1,111 ) — — (1,111 ) Balance at June 30, 2016 $ 19 $ — $ — $ 19 The exit liability is included in “Accounts payable, accrued and other current liabilities” on the Company’s “Consolidated Balance Sheets”. |
Joint Venture
Joint Venture | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Joint Venture | 3. JOINT VENTURE In the second quarter of 2015, the Company entered into a series of transactions including the acquisition of a fiber optic network on the North Slope of Alaska and the establishment of a joint venture with QHL. The network enables commercially-available, high-speed connectivity where only high-cost microwave and satellite communications was previously available. Through the Alaska Communications and QHL joint venture, this network has been made available to other telecom carriers in the market. Acquisition of Fiber Optic Network The Company, through its wholly-owned subsidiary ACS Cable Systems, LLC, acquired a fiber optic cable system (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 was paid on April 7, 2016. The Company sold to the previous owner a 30 year IRU on certain fibers from the Fiber Optic System. The sales price was $400, all of which was paid at closing. The Company 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 to the Company by QHL at closing and the balance of which was paid on March 31, 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. In the first quarter of 2016, the Company and QHL executed an amendment to the operating agreement which provides the Company access to 50 percent of the Joint Venture’s initial in-field lit capacity in compensation for the Company’s contribution of the additional IRU at the Joint Venture’s formation. This amendment is effective as of the establishment date of the Joint Venture on April 2, 2015. In the second quarter of 2016, the Company and QHL each made an additional $75 capital contribution to the Joint Venture. The Company and QHL each hold a 50 percent voting interest in the Joint Venture. 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 June 30, 2016 and December 31, 2015. Cash may be utilized only 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. 2016 2015 Cash $ 71 $ 359 Fiber and IRUs, net of accumulated depreciation of $77 and $26 $ 2,525 $ 2,278 The operating results and cash flows of the Joint Venture in the six-month period of 2016 were not material to the Company’s consolidated financial results. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | 4. EQUITY METHOD INVESTMENTS The Company had no equity method investments at June 30, 2016 and December 31, 2015. In the first quarter of 2015, the Company held a one-third interest in AWN through February 2, 2015. See Note 2 “ Sale of Wireless Operations” January 1 through February 2, 2015 Operating revenues $ 21,457 Gross profit $ 15,745 Operating income $ 9,757 Net income $ 9,722 Adjusted Free Cash Flow (1) $ 10,805 (1) Adjusted Free Cash Flow as defined in the Operating Agreement. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Financial Instruments | 5. FAIR VALUE MEASUREMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS 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 and 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 estimated fair value of the Company’s 6.25% Convertible Notes due 2018 (“6.25% Notes”) Notes of $86,222 at June 30, 2016, 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 June 30, 2016 was $90,760. The estimated fair value and carrying value of the Company’s 6.25% Notes were $97,769 and $99,359, respectively at December 31, 2015. The carrying values of the Company’s 2015 Senior Credit Facilities and other long-term obligations of $92,010 and $93,746 at June 30, 2016 and December 31, 2015, respectively, 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 following table presents the Company’s financial liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, at each hierarchical level: June 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Other long-term liabilities: Interest rate swaps $ (178 ) $ — $ (178 ) $ — $ (79 ) $ — $ (79 ) $ — Derivative Financial Instruments The Company currently 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, and are valued using models based on readily observable market parameters for all substantial terms of the contracts. 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 are recorded to accumulated other comprehensive loss and are reclassified to interest expense when the hedged transaction is recognized in earnings. See Note 9 “ Accumulated Other Comprehensive Loss The notional amounts of pay-fixed, receive-floating interest rate swaps at June 30, 2015 were $115,500 and $77,000 with interest rates of 7.220% and 7.225%, respectively, inclusive of a 4.75% LIBOR spread. These swaps 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 June 30, 2015, $541 was credited to interest expense for the ineffective portion. The following table presents the notional amount, fair value and balance sheet classification of the Company’s derivative financial instruments designated as cash flow hedges as of June 31, 2016 and December, 31, 2015: Notional Fair Balance Sheet Location Amount Value At June 30, 2016: Interest rate swaps Other long-term liabilities $ 43,788 $ 178 At December 31, 2015: Interest rate swaps Other long-term liabilities $ 44,827 $ 79 The following table presents gains and losses before income taxes on the Company’s interest rate swaps designated as cash flow hedges for the three and six-month periods ending June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (Loss) gain recognized in accumulated other comprehensive loss $ (49 ) $ 198 $ (174 ) $ 397 (Loss) gain reclassified from accumulated other comprehensive loss (effective portion) (26 ) 10 (53 ) 1,970 Gain recognized in interest expense (ineffective portion and amount excluded from effectiveness testing) — 274 — 541 |
Current Liabilities
Current Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Current Liabilities | 6. CURRENT LIABILITIES Accounts payable, accrued and other current liabilities consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 Accrued payroll, benefits, and related liabilities $ 13,676 $ 17,362 Accounts payable - trade 11,773 16,057 Note payable, non-interest bearing, due 2016 — 5,500 Deferred capacity and other revenue 5,396 4,292 Other 7,536 8,064 $ 38,381 $ 51,275 Advance billings and customer deposits consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 Advance billings $ 4,021 $ 4,482 Customer deposits 31 31 $ 4,052 $ 4,513 |
Long-Term Obligations
Long-Term Obligations | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | 7. LONG-TERM OBLIGATIONS Long-term obligations consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 2015 senior secured credit facilities due 2018 $ 88,250 $ 89,750 Debt issuance costs (2,584 ) (3,406 ) 6.25% convertible notes due 2018 94,000 104,000 Debt discount (3,240 ) (4,641 ) Debt issuance costs (685 ) (1,010 ) Capital leases and other long-term obligations 3,760 3,996 179,501 188,689 Less current portion (4,018 ) (3,671 ) Long-term obligations, net of current portion $ 175,483 $ 185,018 As of June 30, 2016, the aggregate maturities of long-term obligations were as follows: 2016 (July 1 - December 31) $ 1,935 2017 (January 1 - December 31) 4,323 2018 (January 1 - December 31) 176,986 2019 (January 1 - December 31) 39 2020 (January 1 - December 31) 52 2021 (January 1 - December 31) 67 Thereafter 2,608 $ 186,010 As of June 30, 2016, the Company had no amounts outstanding under the $10,000 revolving credit facility component of its 2015 Senior Credit Facilities. 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 $336, including the write off of unamortized discounts and debt issuance costs and the payment of third-party fees, and net of the repurchase discount of $250 and the amount attributable to the equity component. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Other Long-Term Liabilities | 8. OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 Deferred GCI capacity revenue, net of current portion $ 36,299 $ 37,338 Other deferred IRU capacity revenue, net of current portion 16,384 17,009 Other deferred revenue, net of current portion 2,316 2,224 Other long-term liabilities 8,623 8,694 $ 63,622 $ 65,265 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 9. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the activity in accumulated other comprehensive loss for the six-month period ended June 30, 2016: Defined Benefit Pension Interest Plan Rate Swaps Total Balance at December 31, 2015 $ (3,089 ) $ 3 $ (3,086 ) Other comprehensive income (loss) before reclassifications 13 (103 ) (90 ) Reclassifications from accumulated comprehensive loss to net income 256 31 287 Net other comprehensive income (loss) 269 (72 ) 197 Balance at June 30, 2016 $ (2,820 ) $ (69 ) $ (2,889 ) The following table summarizes the reclassifications from accumulated other comprehensive loss to net income (loss) for the three and six-month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended 2016 2015 2016 2015 Amortization of defined benefit plan pension items: Amortization of loss $ 217 $ 273 $ 434 $ 546 Income tax effect (89 ) (112 ) (178 ) (224 ) After tax 128 161 256 322 Loss on cash flow hedges - interest rate swaps: Reclassification to interest expense 26 10 53 1,970 Income tax effect (11 ) (4 ) (22 ) (810 ) After tax 15 6 31 1,160 Total reclassifications, net of income tax $ 143 $ 167 $ 287 $ 1,482 Amounts reclassified to net income from our defined benefit pension plan and interest rate swaps have been presented within “Selling, general and administrative expenses” and “Interest expense,” respectively, in the Condensed Consolidated Statements of Comprehensive Income. The estimated amount of accumulated other comprehensive loss to be reclassified to interest expense within the next twelve months is $103. See Note 5 “ Fair Value Measurements and Derivative Financial Instruments |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | 10. STOCK INCENTIVE PLANS Under the Company’s stock incentive plan, stock options, restricted stock, stock-settled stock appreciation rights, performance share units and other awards may be granted to officers, employees, consultants, and non-employee directors. The following table summarizes the restricted stock unit, long-term incentive award and non-employee director stock compensation activity for the six-month period ended June 30, 2016: Number Weighted Value Nonvested at December 31, 2015 1,186 $ 1.83 Granted 842 1.75 Vested (612 ) 1.83 Canceled or expired — — Nonvested at June 30, 2016 1,416 $ 1.79 The following table summarizes the performance share unit activity for the six-month period ended June 30, 2016: Number Weighted Value Nonvested at December 31, 2015 984 $ 1.78 Granted 802 1.74 Vested (432 ) 1.76 Canceled or expired (14 ) 1.85 Nonvested at June 30, 2016 1,340 $ 1.77 The following table provides selected information about the Company’s share-based compensation as of and for the three and six-month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended 2016 2015 2016 2015 Total compensation cost for share-based payments $ 642 $ 795 $ 1,447 $ 1,279 Weighted average grant-date fair value of equity instruments granted (per share) $ 1.70 $ 2.37 $ 1.74 $ 1.95 Total grant date fair value of shares vested during the period $ 70 $ 123 $ 1,884 $ 2,470 Expected annual forfeiture rate 9 % 9 % At June 30: Unamortized share-based payments $ 2,586 $ 3,648 Weighted average period (in years) to be recognized as expense 1.6 1.6 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares of common stock and dilutive potential common share equivalents outstanding. Basic earnings per share assumes no dilution and is computed by dividing net income attributable to Alaska Communications 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. Potential common share equivalents include restricted stock granted to employees and deferred shares granted to directors. The Company includes dilutive stock options based on the “treasury stock method.” Effective in 2015, the Company discontinued use of the “if converted” method in calculating diluted earnings per share in connection with its 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. Accordingly, 9,143 and 9,298 shares related to the 6.25% Notes have been excluded from the calculation of diluted earnings per share for the three and six-month periods ended June 30, 2016, respectively, and 11,088 shares related to the 6.25% Notes were excluded from the calculation of diluted earnings per share for the three and six-month periods ended June 30, 2015. The calculation of basic and diluted earnings per share for the three and six-month periods ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net income (loss) attributable to Alaska Communications $ 317 $ (4,841 ) $ 403 $ 11,376 Weighted average common shares outstanding: Basic shares 51,231 50,252 50,986 50,085 Effect of stock-based compensation 907 — 1,020 997 Diluted shares 52,138 50,252 52,006 51,082 Net income (loss) per share attributable to Alaska Communications: Basic $ 0.01 $ (0.10 ) $ 0.01 $ 0.23 Diluted $ 0.01 $ (0.10 ) $ 0.01 $ 0.22 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | 12. 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 to the AEPF. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. This plan was not in endangered or critical status during the plan year. 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, Inc.’s Alaska properties, whereby assets and liabilities of the CenturyTel Plan were transferred to the ACS Retirement Plan on September 1, 1999. As of June 30, 2016, this plan is not fully funded under the Employee Retirement Income Security Act of 1974, as amended. The following table presents the net periodic pension expense for the ACS Retirement Plan for the three and six-month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Interest cost $ 168 $ 165 $ 335 $ 331 Expected return on plan assets (181 ) (186 ) (362 ) (373 ) Amortization of loss 230 294 461 588 Net periodic pension expense $ 217 $ 273 $ 434 $ 546 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 13. SUPPLEMENTAL CASH FLOW INFORMATION The following table presents supplemental non-cash transaction information for the six-month periods ended June 30, 2016 and 2015: 2016 2015 Supplemental Non-cash Transactions: Capital expenditures incurred but not paid at June 30 $ 2,536 $ 8,106 Property acquired under capital leases $ — $ 20 Additions to ARO asset $ 141 $ 6 Accrued acquisition purchase price $ — $ (291 ) Contingent Wireless Sale proceeds held in escrow $ — $ 9,000 Net change in restricted cash $ — $ (9,000 ) 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 | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | 14. 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES The Company enters into purchase commitments with vendors in the ordinary course of business. 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. The Company establishes an accrual when a particular contingency is probable and estimable, and has recorded litigation accruals of $542 at June 30, 2016 against certain current claims and legal actions. The Company also faces contingencies that are reasonably possible to occur that 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. |
Description of Company and Su23
Description of Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements and footnotes included in this Quarterly Report on Form 10-Q 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 percent ownership interest in the joint venture as a noncontrolling interest. See Note 3 “ Joint Venture In the opinion of management, the unaudited condensed consolidated financial statements contain all normal, recurring adjustments necessary to present fairly the consolidated financial position, comprehensive income and cash flows for all periods presented. Comprehensive income for the three and six months ended June 30, 2016, is not necessarily indicative of comprehensive income which might be expected for the entire year or any other interim periods. The balance sheet at December 31, 2015 has been derived from the audited financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes, including estimates of probable losses and expenses. Actual results could differ materially from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In the first quarter of 2016, the Company adopted Accountings Standards Update (“ASU”) No. 2015-05, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement |
Accounting Pronouncements Issued Not Yet Adopted | Accounting Pronouncements Issued Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting |
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 and 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) | 6 Months Ended |
Jun. 30, 2016 | |
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 ASU 420 and ASU 712, as of and for the six-month period ended June 30, 2016. No further charges under these plans are expected. Labor Contract Other Total Balance at December 31, 2015 $ 1,223 $ — $ — $ 1,223 Credited to expense (93 ) — — (93 ) Paid and/or settled (1,111 ) — — (1,111 ) Balance at June 30, 2016 $ 19 $ — $ — $ 19 |
Sale of Wireless Operations [Member] | |
Components of Gain on Sale of Assets | The following table provides the calculation of the gain: Consideration: Cash $ 37,596 Cash held in escrow 9,000 Principal payment on 2010 Senior Credit Facility 240,472 Total consideration 287,068 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 Contingent gain (9,000 ) Gain on disposal of assets $ 41,140 Upon resolution of purchase price adjustments in the second and third quarters of 2015, the final gain on the sale recorded in 2015 was $48,232 as detailed in the following table: 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) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015. Cash may be utilized only 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. 2016 2015 Cash $ 71 $ 359 Fiber and IRUs, net of accumulated depreciation of $77 and $26 $ 2,525 $ 2,278 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information | The following table provides summarized financial information for AWN for the period January 1 through February 2, 2015: January 1 through February 2, 2015 Operating revenues $ 21,457 Gross profit $ 15,745 Operating income $ 9,757 Net income $ 9,722 Adjusted Free Cash Flow (1) $ 10,805 (1) Adjusted Free Cash Flow as defined in the Operating Agreement. |
Fair Value Measurements and D27
Fair Value Measurements and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, at each hierarchical level: June 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Other long-term liabilities: Interest rate swaps $ (178 ) $ — $ (178 ) $ — $ (79 ) $ — $ (79 ) $ — |
Schedule of Derivative Financial Instruments Designated as Cash Flow Hedges | The following table presents the notional amount, fair value and balance sheet classification of the Company’s derivative financial instruments designated as cash flow hedges as of June 31, 2016 and December, 31, 2015: Notional Fair Balance Sheet Location Amount Value At June 30, 2016: Interest rate swaps Other long-term liabilities $ 43,788 $ 178 At December 31, 2015: Interest rate swaps Other long-term liabilities $ 44,827 $ 79 |
Schedule of Gains and Losses Before Income Taxes Recognized on Interest Rate Swaps Designated as Cash Flow Hedges | The following table presents gains and losses before income taxes on the Company’s interest rate swaps designated as cash flow hedges for the three and six-month periods ending June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (Loss) gain recognized in accumulated other comprehensive loss $ (49 ) $ 198 $ (174 ) $ 397 (Loss) gain reclassified from accumulated other comprehensive loss (effective portion) (26 ) 10 (53 ) 1,970 Gain recognized in interest expense (ineffective portion and amount excluded from effectiveness testing) — 274 — 541 |
Current Liabilities (Tables)
Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued and Other Current Liabilities | Accounts payable, accrued and other current liabilities consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 Accrued payroll, benefits, and related liabilities $ 13,676 $ 17,362 Accounts payable - trade 11,773 16,057 Note payable, non-interest bearing, due 2016 — 5,500 Deferred capacity and other revenue 5,396 4,292 Other 7,536 8,064 $ 38,381 $ 51,275 |
Schedule of Advance Billings and Customer Deposits | Advance billings and customer deposits consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 Advance billings $ 4,021 $ 4,482 Customer deposits 31 31 $ 4,052 $ 4,513 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Obligations | Long-term obligations consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 2015 senior secured credit facilities due 2018 $ 88,250 $ 89,750 Debt issuance costs (2,584 ) (3,406 ) 6.25% convertible notes due 2018 94,000 104,000 Debt discount (3,240 ) (4,641 ) Debt issuance costs (685 ) (1,010 ) Capital leases and other long-term obligations 3,760 3,996 179,501 188,689 Less current portion (4,018 ) (3,671 ) Long-term obligations, net of current portion $ 175,483 $ 185,018 |
Schedule of Aggregate Maturities of Long-term Obligations | As of June 30, 2016, the aggregate maturities of long-term obligations were as follows: 2016 (July 1 - December 31) $ 1,935 2017 (January 1 - December 31) 4,323 2018 (January 1 - December 31) 176,986 2019 (January 1 - December 31) 39 2020 (January 1 - December 31) 52 2021 (January 1 - December 31) 67 Thereafter 2,608 $ 186,010 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities consist of the following at June 30, 2016 and December 31, 2015: 2016 2015 Deferred GCI capacity revenue, net of current portion $ 36,299 $ 37,338 Other deferred IRU capacity revenue, net of current portion 16,384 17,009 Other deferred revenue, net of current portion 2,316 2,224 Other long-term liabilities 8,623 8,694 $ 63,622 $ 65,265 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Activity in Accumulated Other Comprehensive Loss | The following table summarizes the activity in accumulated other comprehensive loss for the six-month period ended June 30, 2016: Defined Benefit Pension Interest Plan Rate Swaps Total Balance at December 31, 2015 $ (3,089 ) $ 3 $ (3,086 ) Other comprehensive income (loss) before reclassifications 13 (103 ) (90 ) Reclassifications from accumulated comprehensive loss to net income 256 31 287 Net other comprehensive income (loss) 269 (72 ) 197 Balance at June 30, 2016 $ (2,820 ) $ (69 ) $ (2,889 ) |
Summary of Reclassifications from Accumulated Other Comprehensive Loss to Net Income (Loss) | The following table summarizes the reclassifications from accumulated other comprehensive loss to net income (loss) for the three and six-month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended 2016 2015 2016 2015 Amortization of defined benefit plan pension items: Amortization of loss $ 217 $ 273 $ 434 $ 546 Income tax effect (89 ) (112 ) (178 ) (224 ) After tax 128 161 256 322 Loss on cash flow hedges - interest rate swaps: Reclassification to interest expense 26 10 53 1,970 Income tax effect (11 ) (4 ) (22 ) (810 ) After tax 15 6 31 1,160 Total reclassifications, net of income tax $ 143 $ 167 $ 287 $ 1,482 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 restricted stock unit, long-term incentive award and non-employee director stock compensation activity for the six-month period ended June 30, 2016: Number Weighted Value Nonvested at December 31, 2015 1,186 $ 1.83 Granted 842 1.75 Vested (612 ) 1.83 Canceled or expired — — Nonvested at June 30, 2016 1,416 $ 1.79 |
Summary of Activity for Performance Share Units | The following table summarizes the performance share unit activity for the six-month period ended June 30, 2016: Number Weighted Value Nonvested at December 31, 2015 984 $ 1.78 Granted 802 1.74 Vested (432 ) 1.76 Canceled or expired (14 ) 1.85 Nonvested at June 30, 2016 1,340 $ 1.77 |
Share-Based Compensation | The following table provides selected information about the Company’s share-based compensation as of and for the three and six-month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended 2016 2015 2016 2015 Total compensation cost for share-based payments $ 642 $ 795 $ 1,447 $ 1,279 Weighted average grant-date fair value of equity instruments granted (per share) $ 1.70 $ 2.37 $ 1.74 $ 1.95 Total grant date fair value of shares vested during the period $ 70 $ 123 $ 1,884 $ 2,470 Expected annual forfeiture rate 9 % 9 % At June 30: Unamortized share-based payments $ 2,586 $ 3,648 Weighted average period (in years) to be recognized as expense 1.6 1.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted earnings per share for the three and six-month periods ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net income (loss) attributable to Alaska Communications $ 317 $ (4,841 ) $ 403 $ 11,376 Weighted average common shares outstanding: Basic shares 51,231 50,252 50,986 50,085 Effect of stock-based compensation 907 — 1,020 997 Diluted shares 52,138 50,252 52,006 51,082 Net income (loss) per share attributable to Alaska Communications: Basic $ 0.01 $ (0.10 ) $ 0.01 $ 0.23 Diluted $ 0.01 $ (0.10 ) $ 0.01 $ 0.22 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Net Periodic Pension Expense for ACS Retirement Plan | The following table presents the net periodic pension expense for the ACS Retirement Plan for the three and six-month periods ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Interest cost $ 168 $ 165 $ 335 $ 331 Expected return on plan assets (181 ) (186 ) (362 ) (373 ) Amortization of loss 230 294 461 588 Net periodic pension expense $ 217 $ 273 $ 434 $ 546 |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Non-Cash Transaction and Nonmonetary Exchange Information | The following table presents supplemental non-cash transaction information for the six-month periods ended June 30, 2016 and 2015: 2016 2015 Supplemental Non-cash Transactions: Capital expenditures incurred but not paid at June 30 $ 2,536 $ 8,106 Property acquired under capital leases $ — $ 20 Additions to ARO asset $ 141 $ 6 Accrued acquisition purchase price $ — $ (291 ) Contingent Wireless Sale proceeds held in escrow $ — $ 9,000 Net change in restricted cash $ — $ (9,000 ) 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 ) |
Description of Company and Su36
Description of Company and Summary of Significant Accounting Policies - Additional Information (Detail) | Apr. 02, 2015 | Feb. 02, 2015 | Jun. 30, 2016 | Feb. 01, 2015 |
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest sold in wireless operation | 33.33% | |||
Percentage ownership interest in joint venture | 50.00% | |||
Noncontrolling Interests [Member] | Quintillion Holdings, LLC [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage ownership interest in joint venture | 50.00% | |||
Alaska Wireless Network, LLC [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage ownership interest in equity method investment | 33.33% | 33.33% | ||
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% |
Sale of Wireless Operations - A
Sale of Wireless Operations - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on disposal of assets | $ 41,140 | |
Cash proceeds from sale of one or more of its affiliates | $ 278,068 | $ 285,160 |
After Purchase Price Adjustments [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on disposal of assets | $ 48,232 |
Sale of Wireless Operations - C
Sale of Wireless Operations - Components of Gain on Sale of Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2015 | |
Consideration: | ||
Cash | $ 37,596 | |
Cash held in escrow | 9,000 | |
Total consideration | 287,068 | |
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 | |
Contingent gain | (9,000) | |
Gain on disposal of assets | 41,140 | |
After Purchase Price Adjustments [Member] | ||
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 | 48,232 | |
2010 Senior Credit Facility Term Loan Due 2016 [Member] | ||
Consideration: | ||
Principal payment on 2010 Senior Credit Facility | 240,472 | |
2010 Senior Credit Facility Term Loan Due 2016 [Member] | After Purchase Price Adjustments [Member] | ||
Consideration: | ||
Principal payment on 2010 Senior Credit Facility | 240,472 | |
Alaska Wireless Network, LLC [Member] | ||
Carrying value of assets and liabilities sold: | ||
Equity investment | $ 250,192 | |
Alaska Wireless Network, LLC [Member] | After Purchase Price Adjustments [Member] | ||
Carrying value of assets and liabilities sold: | ||
Equity investment | $ 250,192 |
Sale of Wireless Operations - S
Sale of Wireless Operations - Schedule of Company's Current Obligations for Exit Activities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Balance at December 31, 2015 | $ 1,223 |
Credited to expense | (93) |
Paid and/or settled | (1,111) |
Balance at June 30, 2016 | 19 |
Labor Obligations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balance at December 31, 2015 | 1,223 |
Credited to expense | (93) |
Paid and/or settled | (1,111) |
Balance at June 30, 2016 | $ 19 |
Joint Venture - Additional Info
Joint Venture - Additional Information (Detail) - USD ($) | Apr. 07, 2016 | Mar. 31, 2016 | Apr. 02, 2015 | Jun. 30, 2016 | Jun. 30, 2016 |
Investment [Line Items] | |||||
Additional Contribution to Joint Venture | $ 75,000 | $ 461,000 | |||
Voting interest in joint venture | 50.00% | ||||
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 | $ 5,300,000 | |||
Payment received in connection with sale of 46 fiber strands from the Fiber Optic System at closing date | $ 2,650,000 | ||||
Additional Contribution to Joint Venture | $ 75,000 | ||||
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 | ||||
Fiber Optic Network [Member] | |||||
Investment [Line Items] | |||||
Purchase price of fiber strand optic cable | $ 11,000,000 | ||||
Purchase price paid at closing | $ 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"). | ||||
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) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Cash | $ 71 | $ 359 |
Fiber and IRUs, net of accumulated depreciation of $77 and $26 | $ 2,525 | $ 2,278 |
Joint Venture - Schedule of C42
Joint Venture - Schedule of Certain Financial Information about Joint Venture Included on Company's Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Accumulated depreciation of IRU Assets, net | $ 77 | $ 26 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Feb. 02, 2015 | Feb. 01, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 0 | $ 0 | ||
Alaska Wireless Network, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in equity method investment | 33.33% | 33.33% |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 02, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Operating revenues | $ 56,262 | $ 55,665 | $ 112,590 | $ 121,451 | |
Operating income | 4,365 | (4,375) | 8,681 | 34,938 | |
Net income | $ 317 | $ (4,841) | $ 403 | $ 11,376 | |
Alaska Wireless Network, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating revenues | $ 21,457 | ||||
Gross profit | 15,745 | ||||
Operating income | 9,757 | ||||
Net income | 9,722 | ||||
Adjusted Free Cash Flow | $ 10,805 |
Fair Value Measurements and D45
Fair Value Measurements and Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Nov. 27, 2015 | Feb. 02, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jan. 29, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Interest rate of convertible notes | 6.25% | ||||||
Long-term obligations | $ 179,501,000 | $ 188,689,000 | |||||
LIBOR spread | 4.75% | ||||||
Commencing swap date | Jun. 30, 2012 | ||||||
Expiration Date | Sep. 30, 2015 | ||||||
Change in fair value credited to interest expense | $ 541,000 | ||||||
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% | ||||||
Interest rate of floating-to-fixed interest rate swaps, two | 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 Value [Member] | Level 2 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of long-term obligations | $ 86,222,000 | ||||||
2010 Senior Credit Facility Term Loan Due 2016 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Amount of Senior Credit Facility to be paid related to sale | $ 240,472,000 | ||||||
2015 Senior Credit Facilities [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term obligations | $ 92,010,000 | 93,746,000 | |||||
6.25% Convertible Notes Due 2018 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Interest rate of convertible notes | 6.25% | 6.25% | |||||
Long-term obligations | $ 90,760,000 | ||||||
Estimated carrying value of notes | 99,359,000 | ||||||
Estimated fair value of notes | $ 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 and D46
Fair Value Measurements and Derivative Financial Instruments - Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term liabilities | $ (178) | $ (79) |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term liabilities | $ (178) | $ (79) |
Fair Value Measurements and D47
Fair Value Measurements and Derivative Financial Instruments - Schedule of Derivative Financial Instruments Designated as Cash Flow Hedges (Detail) - Interest Rate Swaps [Member] - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 178,000 | $ 79,000 |
Designated as Hedging Instrument [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 43,788,000 | 44,827,000 |
Fair Value | $ 178,000 | $ 79,000 |
Fair Value Measurements and D48
Fair Value Measurements and Derivative Financial Instruments - Schedule of Gains and Losses Before Income Taxes Recognized on Interest Rate Swaps Designated as Cash Flow Hedges (Detail) - Interest Rate Swaps [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) gain recognized in accumulated other comprehensive loss | $ (49) | $ 198 | $ (174) | $ 397 |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) gain reclassified from accumulated other comprehensive loss (effective portion) | $ (26) | 10 | $ (53) | 1,970 |
Gain recognized in interest expense (ineffective portion and amount excluded from effectiveness testing) | $ 274 | $ 541 |
Current Liabilities - Schedule
Current Liabilities - Schedule of Accounts Payable, Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued payroll, benefits, and related liabilities | $ 13,676 | $ 17,362 |
Accounts payable - trade | 11,773 | 16,057 |
Note payable, non-interest bearing, due 2016 | 5,500 | |
Deferred capacity and other revenue | 5,396 | 4,292 |
Other | 7,536 | 8,064 |
Total accounts payable, accrued and other current liabilities | $ 38,381 | $ 51,275 |
Current Liabilities - Schedul50
Current Liabilities - Schedule of Advance Billings and Customer Deposits (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Advance billings | $ 4,021 | $ 4,482 |
Customer deposits | 31 | 31 |
Advance billings and customer deposits | $ 4,052 | $ 4,513 |
Long-Term Obligations - Schedul
Long-Term Obligations - Schedule of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Jan. 29, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Capital leases and other long-term obligations | $ 3,760 | $ 3,996 | |
Long-term obligations | 179,501 | 188,689 | |
Long-term obligations | 179,501 | 188,689 | |
Less current portion | (4,018) | (3,671) | |
Long-term obligations, net of current portion | 175,483 | 185,018 | |
2015 Senior Secured Credit Facilities Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term obligations | 88,250 | 89,750 | |
Debt issuance costs | (2,584) | (3,406) | |
6.25% Convertible Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Convertible notes | 94,000 | 104,000 | |
Debt instrument unamortized discount | (3,240) | $ (250) | (4,641) |
Debt issuance costs | (685) | $ (1,010) | |
Long-term obligations | 90,760 | ||
Long-term obligations | $ 90,760 |
Long-Term Obligations - Sched52
Long-Term Obligations - Schedule of Long-Term Obligations (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2016 | Jan. 29, 2016 | |
Debt Instrument [Line Items] | ||
Interest rate of convertible notes | 6.25% | |
2015 Senior Secured Credit Facilities Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity year of senior secured credit facilities - start | Sep. 14, 2015 | |
Maturity date | Mar. 3, 2018 | |
6.25% Convertible Notes Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of convertible notes | 6.25% | 6.25% |
Maturity date | May 1, 2018 |
Long-Term Obligations - Sched53
Long-Term Obligations - Schedule of Aggregate Maturities of Long-term Obligations (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2016 (July 1 - December 31) | $ 1,935 |
2017 (January 1 - December 31) | 4,323 |
2018 (January 1 - December 31) | 176,986 |
2019 (January 1 - December 31) | 39 |
2020 (January 1 - December 31) | 52 |
2021 (January 1 - December 31) | 67 |
Thereafter | 2,608 |
Total | $ 186,010 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Detail) - USD ($) | Jan. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Interest rate of convertible notes | 6.25% | |||
Loss on extinguishment of debt | $ 336,000 | $ 2,628,000 | ||
6.25% Convertible Notes Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate of convertible notes | 6.25% | 6.25% | ||
Principal amount of debt instrument repurchased | $ 10,000,000 | |||
Debt instrument, Date of repurchase | Jan. 29, 2016 | |||
Cash consideration of debt instrument repurchased | $ 9,750,000 | |||
Cash settlement on repurchase of notes | 10,053,000 | |||
Accrued interest and transaction fees paid | 303,000 | |||
Loss on extinguishment of debt | 336,000 | |||
Debt instrument, repurchase discount | $ 250,000 | $ 3,240,000 | $ 4,641,000 | |
2015 Senior Secured Credit Facilities Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | 10,000,000 | |||
Amount outstanding under revolving credit facility | $ 0 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | $ 63,622 | $ 65,265 |
Deferred GCI Capacity Revenue, Net of Current Portion [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | 36,299 | 37,338 |
Other Deferred IRU Capacity Revenue, Net of Current Portion [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | 16,384 | 17,009 |
Other Deferred Revenue, Net of Current Portion [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | 2,316 | 2,224 |
Other Long-Term Liabilities [Member] | ||
Other Long Term Liabilities [Line Items] | ||
Other long-term liabilities | $ 8,623 | $ 8,694 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss - Summary of Activity in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (3,086) | |||
Other comprehensive income (loss) before reclassifications | (90) | |||
Reclassifications from accumulated comprehensive loss to net income | $ 143 | $ 167 | 287 | $ 1,482 |
Total other comprehensive income | 122 | $ 295 | 197 | $ 1,740 |
Ending Balance | (2,889) | (2,889) | ||
Interest Rate Swaps [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 3 | |||
Other comprehensive income (loss) before reclassifications | (103) | |||
Reclassifications from accumulated comprehensive loss to net income | 31 | |||
Total other comprehensive income | (72) | |||
Ending Balance | (69) | (69) | ||
Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (3,089) | |||
Other comprehensive income (loss) before reclassifications | 13 | |||
Reclassifications from accumulated comprehensive loss to net income | 256 | |||
Total other comprehensive income | 269 | |||
Ending Balance | $ (2,820) | $ (2,820) |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss - Summary of Reclassifications from Accumulated Other Comprehensive Loss to Net Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amortization of defined benefit plan pension items: | ||||
Amortization of loss | $ 217 | $ 273 | $ 434 | $ 546 |
Income tax effect | (89) | (112) | (178) | (224) |
After tax | 128 | 161 | 256 | 322 |
Loss on cash flow hedges - interest rate swaps: | ||||
Reclassification to interest expense | 26 | 10 | 53 | 1,970 |
Income tax effect | (11) | (4) | (22) | (810) |
After tax | 15 | 6 | 31 | 1,160 |
Total reclassifications, net of income tax | $ 143 | $ 167 | $ 287 | $ 1,482 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Loss - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Interest Expense [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Accumulated other comprehensive loss to be reclassified to interest expense | $ 103 |
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 | 6 Months Ended |
Jun. 30, 2016$ / 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, 2015 | shares | 1,186 |
Number of Shares - Granted | shares | 842 |
Number of Shares - Vested | shares | (612) |
Number of Shares - Canceled or expired | shares | 0 |
Number of Shares - Nonvested at June 30, 2016 | shares | 1,416 |
Weighted Average Grant Date Fair Value - Nonvested at December 31, 2015 | $ / shares | $ 1.83 |
Weighted Average Grant Date Fair Value - Granted | $ / shares | 1.75 |
Weighted Average Grant Date Fair Value - Vested | $ / shares | 1.83 |
Weighted Average Grant Date Fair Value - Canceled or expired | $ / shares | 0 |
Weighted Average Grant Date Fair Value - Nonvested at June 30, 2016 | $ / shares | $ 1.79 |
Stock Incentive Plans - Summa60
Stock Incentive Plans - Summary of Activity for Performance Share Units (Detail) - Performance Share Units [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Summary of activity for performance share units | |
Number of Shares - Nonvested at December 31, 2015 | shares | 984 |
Number of Shares - Granted | shares | 802 |
Number of Shares - Vested | shares | (432) |
Number of Shares - Canceled or expired | shares | (14) |
Number of Shares - Nonvested at June 30, 2016 | shares | 1,340 |
Weighted Average Grant Date Fair Value - Nonvested at December 31, 2015 | $ / shares | $ 1.78 |
Weighted Average Grant Date Fair Value - Granted | $ / shares | 1.74 |
Weighted Average Grant Date Fair Value - Vested | $ / shares | 1.76 |
Weighted Average Grant Date Fair Value - Canceled or expired | $ / shares | 1.85 |
Weighted Average Grant Date Fair Value - Nonvested at June 30, 2016 | $ / shares | $ 1.77 |
Stock Incentive Plans - Share-B
Stock Incentive Plans - Share-Based Compensation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Total compensation cost for share-based payments | $ 642 | $ 795 | $ 1,447 | $ 1,279 |
Weighted average grant-date fair value of equity instruments granted (per share) | $ 1.70 | $ 2.37 | $ 1.74 | $ 1.95 |
Total grant date fair value of shares vested during the period | $ 70 | $ 123 | $ 1,884 | $ 2,470 |
Expected annual forfeiture rate | 9.00% | 9.00% | ||
Unamortized share-based payments | $ 2,586 | $ 3,648 | ||
Weighted average period (in years) to be recognized as expense | 1 year 7 months 6 days | 1 year 7 months 6 days |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Six point two five percent convertible notes due two thousand eighteen excluded from computation of earnings per share [Member] | ||||
Number of shares excluded from computation of earnings per share [Line Items] | ||||
Interest rate of convertible notes | 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 | $ 1,000 | ||
Initial conversion price | $ 10.28 | $ 10.28 | ||
Convertible note, convertible beginning date | Feb. 1, 2018 | |||
Convertible Notes Payable [Member] | ||||
Number of shares excluded from computation of earnings per share [Line Items] | ||||
Anti-dilutive shares excluded from calculation | 9,143,000 | 11,088,000 | 9,298,000 | 11,088,000 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income (loss) attributable to Alaska Communications | $ 317 | $ (4,841) | $ 403 | $ 11,376 |
Weighted average common shares outstanding: | ||||
Basic shares | 51,231 | 50,252 | 50,986 | 50,085 |
Effect of stock-based compensation | 907 | 1,020 | 997 | |
Diluted shares | 52,138 | 50,252 | 52,006 | 51,082 |
Net income (loss) per share attributable to Alaska Communications: | ||||
Basic | $ 0.01 | $ (0.10) | $ 0.01 | $ 0.23 |
Diluted | $ 0.01 | $ (0.10) | $ 0.01 | $ 0.22 |
Retirement Plans - Summary of N
Retirement Plans - Summary of Net Periodic Pension Expense for ACS Retirement Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Interest cost | $ 168 | $ 165 | $ 335 | $ 331 |
Expected return on plan assets | (181) | (186) | (362) | (373) |
Amortization of loss | 230 | 294 | 461 | 588 |
Net periodic pension expense | $ 217 | $ 273 | $ 434 | $ 546 |
Supplemental Cash Flow Inform65
Supplemental Cash Flow Information - Schedule of Supplemental Non-Cash Transaction and Nonmonetary Exchange Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental Non-cash Transactions: | ||
Capital expenditures incurred but not paid at June 30 | $ 2,536 | $ 8,106 |
Property acquired under capital leases | 20 | |
Additions to ARO asset | $ 141 | 6 |
Accrued acquisition purchase price | (291) | |
Contingent Wireless Sale proceeds held in escrow | 9,000 | |
Net change in restricted cash | (9,000) | |
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) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments in which business operates | 1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation costs | $ 542 |