Cogent Communications (CCOI) 10-K 25 Feb 22 2021 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2021	Jan. 31, 2022	Jun. 30, 2021
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Entity File Number	000-51829
Entity Registrant Name	COGENT COMMUNICATIONS HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-5706863
Entity Address, Address Line One	2450 N Street N.W.
Entity Address, Country	US
Entity Address, City or Town	Washington, D.C
Entity Address, Postal Zip Code	20037
City Area Code	(202)
Local Phone Number	295-4200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	CCOI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,928,016
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0001158324
Amendment Flag	false
ICFR Auditor Attestation Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 3.3
Auditor Name	Ernst & Young LLP
Auditor Firm ID	42
Auditor Location	Tysons, VA

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 319,609	$ 371,301
Restricted cash	9,015
Accounts receivable, net of allowance for credit losses of $1,510 and $1,921, respectively	41,938	44,185
Prepaid expenses and other current assets	39,015	40,851
Total current assets	409,577	456,337
Property and equipment	1,619,515	1,515,867
Accumulated depreciation and amortization	(1,161,635)	(1,085,532)
Total property and equipment, net	457,880	430,335
Right-of-use leased assets	101,687	99,666
Deposits and other assets	15,413	14,139
Total assets	984,557	1,000,477
Current liabilities:
Accounts payable	11,923	9,775
Accrued and other current liabilities	39,057	51,029
Current maturities, operating lease liabilities	12,197	11,151
Installment payment agreement, current portion, net of discount of $6 and $136, respectively	785	6,786
Finance lease obligations, current maturities	17,048	15,702
Total current liabilities	81,010	94,443
Operating lease liabilities, net of current maturities	111,794	111,318
Finance lease obligations, net of current maturities	228,822	203,438
Other long-term liabilities	44,609	14,792
Total liabilities	1,357,655	1,293,643
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 75,000,000 shares authorized; 47,674,189 and 47,214,077 shares issued and outstanding, respectively	48	47
Additional paid-in capital	547,734	515,867
Accumulated other comprehensive loss	(11,003)	(1,306)
Accumulated deficit	(909,877)	(807,774)
Total stockholders' deficit	(373,098)	(293,166)
Total liabilities and stockholders' equity	984,557	1,000,477
2022 Notes
Current liabilities:
Senior secured 2022 notes, net of unamortized debt costs of $1,052 and including premium of $544		444,492
Senior unsecured 2024 Notes
Current liabilities:
Senior unsecured 2024 Euro notes, net of unamortized debt costs of $2,121 and $2,961, respectively and net of discount of $772 and $1,142, respectively	394,112	$ 425,160
Senior secured 2026 Notes
Current liabilities:
Senior unsecured 2026 notes, net of unamortized debt costs of $1,156 and discount of $1,536	$ 497,308

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Accounts receivable, allowance for credit losses (in dollars)	$ 1,510	$ 1,921
Liabilities and stockholders' equity
Installment payment agreement, current portion, net of discounts	$ 6	$ 136
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	47,674,189	47,214,077
Common stock, shares outstanding	47,674,189	47,214,077
2022 Notes
Liabilities and stockholders' equity
Unamortized debt costs	$ 1,052
Unamortized debt premium	544
Senior unsecured 2024 Notes
Liabilities and stockholders' equity
Unamortized debt costs	2,121	$ 2,961
Unamortized debt premium noncurrent	772	$ 1,142
Senior secured 2026 Notes
Liabilities and stockholders' equity
Unamortized debt costs	1,156
Unamortized debt premium noncurrent	$ 1,536

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Service revenue	$ 589,797	$ 568,103	$ 546,159
Operating expenses:
Network operations (including $2,521, $1,219 and $994 of equity-based compensation expense, respectively), exclusive of amounts shown separately	226,337	219,157	219,801
Selling, general, and administrative (including $24,301, $22,306 and $17,466 of equity-based compensation expense, respectively)	162,380	158,476	146,913
Depreciation and amortization	89,240	83,477	80,247
Total operating expenses	477,957	461,110	446,961
Losses on lease terminations	7,400
Gains on equipment transactions	18	352	1,059
Gains (losses) on lease terminations	7,375	(423)
Operating income	119,233	106,922	100,257
Interest expense	(67,074)	(62,486)	(57,453)
Realized foreign exchange gain on 2024 Euro Notes		2,533
Unrealized foreign exchange gain (loss) on 2024 Euro Notes	32,522	(36,997)	2,271
Interest income and other	1,437	978	7,599
Income before income taxes	71,420	10,312	52,674
Income tax expense	(23,235)	(4,096)	(15,154)
Net income	48,185	6,216	37,520
Comprehensive income:
Net income	48,185	6,216	37,520
Foreign currency translation adjustment	(9,697)	11,020	(1,398)
Comprehensive income	$ 38,488	$ 17,236	$ 36,122
Net income (loss) per common share:
Basic net income per common share	$ 1.04	$ 0.14	$ 0.82
Diluted net income per common share	1.03	0.13	0.81
Dividends declared per common share	$ 3.17	$ 2.78	$ 2.44
Weighted-average common shares - basic (in shares)	46,419,180	45,947,772	45,542,315
Weighted-average common shares - diluted (in shares)	46,963,920	46,668,198	46,080,395
Senior notes
Operating expenses:
Loss on debt extinguishment and redemption - 2021 Notes		$ (638)
2022 Notes
Operating expenses:
Loss on debt extinguishment and redemption - 2021 Notes	$ (14,698)
Loss on debt extinguishment and redemption - 2022 Notes	$ (14,698)

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity-based compensation expense	$ 26,822	$ 23,525	$ 18,460
Network operations
Equity-based compensation expense	2,521	1,219	994
Selling, general and administrative
Equity-based compensation expense	$ 24,301	$ 22,306	$ 17,466

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 46	$ 471,331	$ (10,928)	$ (609,451)	$ (149,002)
Balance (in shares) at Dec. 31, 2018	46,336,499
Increase (Decrease) in Stockholders' Equity
Forfeitures of shares granted to employees (in shares)	(12,632)
Equity-based compensation		20,210			20,210
Foreign currency translation			(1,398)		(1,398)
Issuances of common stock	$ 1				1
Issuances of common stock (in shares)	473,550
Exercises of options		1,637			1,637
Exercises of options (in shares)	43,017
Dividends paid				112,647	112,647
Net income				37,520	37,520
Balance at December 31, 2019 at Dec. 31, 2019	$ 47	493,178	(12,326)	(684,578)	(203,679)
Balance at December 31, 2019 (in shares) at Dec. 31, 2019	46,840,434
Increase (Decrease) in Stockholders' Equity
Forfeitures of shares granted to employees (in shares)	(53,428)
Equity-based compensation		25,802			25,802
Foreign currency translation			11,020		11,020
Issuances of common stock (in shares)	476,030
Exercises of options		1,382			1,382
Exercises of options (in shares)	30,097
Dividends paid				129,412	129,412
Net income				6,216	6,216
Common stock purchases and retirement		4,495			4,495
Common stock purchases and retirement (in shares)	(79,056)
Balance at December 31, 2019 at Dec. 31, 2020	$ 47	515,867	(1,306)	(807,774)	$ (293,166)
Balance at December 31, 2019 (in shares) at Dec. 31, 2020	47,214,077				47,214,077
Increase (Decrease) in Stockholders' Equity
Forfeitures of shares granted to employees (in shares)	(47,436)
Equity-based compensation		30,044			$ 30,044
Foreign currency translation			(9,697)		(9,697)
Issuances of common stock	$ 1				1
Issuances of common stock (in shares)	471,080
Exercises of options		1,823			1,823
Exercises of options (in shares)	36,468
Dividends paid				150,288	150,288
Net income				48,185	48,185
Balance at December 31, 2019 at Dec. 31, 2021	$ 48	$ 547,734	$ (11,003)	$ (909,877)	$ (373,098)
Balance at December 31, 2019 (in shares) at Dec. 31, 2021	47,674,189				47,674,189

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 48,185	$ 6,216	$ 37,520
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	89,240	83,477	80,247
Amortization of debt discount and premium	1,759	1,894	1,807
Equity-based compensation expense (net of amounts capitalized)	26,822	23,525	18,460
Unrealized foreign currency exchange loss (gain) on 2024 Euro Notes	(32,522)	36,997	(2,271)
Realized foreign currency exchange gain on 2024 Euro Notes		(2,533)
Gain - lease termination	(7,375)
Gains-equipment transactions and other, net	69	(546)	(358)
Deferred income taxes	18,159	282	12,158
Changes in operating assets and liabilities:
Accounts receivable	1,385	(2,702)	1,067
Prepaid expenses and other current assets	(17)	(2,771)	(3,730)
Deposits and other assets	(12)	(873)	(1,131)
Accounts payable, accrued liabilities and other long-term liabilities	9,866	(3,284)	5,040
Net cash provided by operating activities	170,257	140,320	148,809
Cash flows from investing activities:
Purchases of property and equipment	(69,916)	(55,952)	(46,958)
Net cash used in investing activities	(69,916)	(55,952)	(46,958)
Cash flows from financing activities:
Net proceeds from issuance of 2026 Notes, net of debt costs of $1,317	496,933
Net proceeds from issuance of 2024 Euro Notes, net of debt costs of $2,137 and $1,556, respectively		240,285	152,134
Redemption and extinguishment of 2022 Notes	(459,317)
Redemption and extinguishment of 2021 Notes		(189,225)
Dividends paid	(150,288)	(129,412)	(112,647)
Principal payments of finance lease obligations	(23,054)	(23,990)	(9,097)
Principal payments of installment payment agreement	(6,922)	(10,547)	(10,007)
Purchases of common stock		(4,495)
Proceeds from exercises of common stock options	1,823	1,382	1,637
Net cash (used in) provided by financing activities	(140,825)	(116,002)	22,020
Effect of exchange rate changes on cash	(2,193)	3,513	(542)
Net (decrease) increase in cash and cash equivalents & restricted cash	(42,677)	(28,121)	123,329
Cash and cash equivalents & restricted cash, beginning of year	371,301	399,422	276,093
Cash and cash equivalents & restricted cash, end of year	328,624	371,301	399,422
Supplemental disclosures of cash flow information:
Cash paid for interest	59,497	62,917	56,022
Cash paid for income taxes	4,452	3,446	3,409
Non-cash investing and financing activities:
Finance lease obligations incurred	50,831	71,622	14,307
PP&E obtained for installment payment agreement		5,771	11,255
Fair value of equipment acquired in leases		536	1,207
Non-cash component of network equipment obtained in exchange transactions		320	$ 978
Senior notes
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment & redemption of 2022 notes		638
Loss on extinguishment & redemption of 2021 notes		$ 638
2022 Notes
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment & redemption of 2022 notes	14,698
Senior secured 2026 Notes
Cash flows from financing activities:
Net proceeds from issuance of 2026 Notes, net of debt costs of $1,317	$ 496,900

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Senior unsecured 2024 Notes
Cash flows from operating activities:
Debt costs	$ 2,137	$ 1,556
Senior notes
Cash flows from operating activities:
Debt costs		$ 1,317

Description of the business and

Description of the business and recent developments:	12 Months Ended
	Dec. 31, 2021
Description of the business and recent developments:
Description of the business and recent developments:	1. Description of the business and summary of significant accounting policies: Reorganization and merger On May 15, 2014, pursuant to the Agreement and Plan of Reorganization (the “Merger Agreement”) by and among Cogent Communications Group, Inc. (“Group”), a Delaware corporation, Cogent Communications Holdings, Inc., a Delaware corporation (“Holdings”) and Cogent Communications Merger Sub, Inc., a Delaware corporation, Group adopted a new holding company organizational structure whereby Group is now a wholly owned subsidiary of Holdings. Holdings is a “successor issuer” to Group pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). References to the “Company” for events that occurred prior to May 15, 2014 refer to Cogent Communications Group, Inc. and its subsidiaries and on and after May 15, 2014 the “Company” refers to Cogent Communications Holdings, Inc. and its subsidiaries. Cogent Communications, Inc. is wholly owned by Group and the vast majority of Cogent’s assets, contractual arrangements, and operations are executed by Cogent Communications, Inc. Description of business The Company is a facilities-based provider of low-cost, high-speed Internet access, private network services, and data center colocation space and power. The Company’s network is specifically designed and optimized to transmit packet switched data. The Company delivers its services primarily to small and medium-sized businesses, communications service providers and other bandwidth-intensive organizations in 50 countries across North America, Europe, Asia, South America, Australia and Africa. The Company is a Delaware corporation and is headquartered in Washington, DC. The Company offers on-net Internet access services exclusively through its own facilities, which run from its network to its customers’ premises. The Company offers its on-net services to customers located in buildings that are physically connected to its network. As a result, the Company is not dependent on local telephone companies or cable TV companies to serve its customers for its on-net Internet access and private network services. The Company’s on- net service consists of high-speed Internet access and private network services offered at speeds ranging from 100 megabits per second to 400 gigabits per second. The Company provides its on-net Internet access and private network services to its corporate and net-centric customers. The Company’s corporate customers are located in multi-tenant office buildings and typically include law firms, financial services firms, advertising and marketing firms, as well as health care providers, educational institutions and other professional services businesses. The Company’s net-centric customers include bandwidth-intensive users that leverage its network to either deliver content to end users or to provide access to residential or commercial internet users. Content delivery customers include over the top (“OTT”) media service providers, content delivery networks, web hosting companies, and commercial content and application software providers. Access customers include access networks comprised of other Internet Service Providers (“ISPs”), telephone companies, mobile phone operators and cable television companies that collectively provide internet access to a substantial number of broadband subscribers and mobile phone subscribers across the world. These net-centric customers generally receive the Company’s services in carrier neutral colocation facilities and in the Company’s own data centers. The Company operates data centers throughout North America and Europe that allow its customers to collocate their equipment and access the Company’s network. In addition to providing on-net services, the Company provides Internet access and private network services to customers that are not located in buildings directly connected to its network. The Company provides these off-net services primarily to corporate customers using other carriers’ circuits to provide the “last mile” portion of the link from the customers’ premises to the Company’s network. The Company also provides certain non-core services that resulted from acquisitions. The Company continues to support but does not actively sell these non-core services. Principles of consolidation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles and include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Allowance for credit losses The Company establishes an allowance for credit losses and other sales credit adjustments related to its trade receivables. Trade receivables are recorded at the invoiced amount and can bear interest. Allowances for sales credits are established through a reduction of revenue, while allowances for credit losses are established through a charge to selling, general, and administrative expenses as bad debt expense. The Company assesses the adequacy of these reserves by evaluating factors, such as the length of time individual receivables are past due, historical collection experience, and changes in the credit worthiness of its customers. The Company also assesses the ability of specific customers to meet their financial obligations and establishes specific allowances related to these customers. If circumstances relating to specific customers change or economic conditions change such that the Company’s past collection experience and assessment of the economic environment are no longer appropriate, the Company’s estimate of the recoverability of its trade receivables could be impacted. Accounts receivable balances are written-off against the allowance for credit losses after all means of internal collection activities have been exhausted and the potential for recovery is considered remote. The Company uses third-party collection services to continue to seek collection for it’s written off accounts receivable. Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current-period ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Provision for ​ Write offs ​ Balance at ​ Beginning Expected Credit Charged Against End of Description of Period Losses Allowance Period Allowance for credit losses (deducted from accounts receivable) ​ ​ ​ ​ ​ ​ ​ ​ Year ending December 31, 2021 $ 1,921 ​ $ 5,595 ​ $ (6,006) ​ $ 1,510 Year ending December 31, 2020 $ 1,771 ​ $ 4,997 ​ $ (4,847) ​ $ 1,921 Year ending December 31, 2019 $ 1,263 ​ $ 6,190 ​ $ (5,682) ​ $ 1,771 ​ The current-period provision for expected credit losses is net of bad debt recoveries of $2.2 million, $1.2 million and $1.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ​ ​ Year ​ ​ ​ ​ Ended ​ ​ Ended ​ ​ December 31, 2021 December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost amortization of right-of-use assets ​ $ 26,424 ​ $ 22,850 ​ Interest expense on finance lease liabilities ​ ​ 19,419 ​ ​ 18,892 ​ Operating lease cost ​ ​ 18,382 ​ ​ 17,362 ​ Total lease costs ​ ​ 64,225 ​ ​ 59,104 ​ Other lease information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ Operating cash flows from finance leases ​ ​ (17,366) ​ ​ (19,121) ​ Operating cash flows from operating leases ​ ​ (20,194) ​ ​ (18,664) ​ Financing cash flows from finance leases ​ ​ (23,054) ​ ​ (23,990) ​ Right-of-use assets obtained in exchange for new finance lease liabilities ​ ​ 50,831 ​ ​ 71,622 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 17,853 ​ ​ 35,659 ​ Weighted-average remaining lease term — finance leases (in years) ​ ​ 12.6 ​ ​ 12.4 ​ Weighted-average remaining lease term — operating leases (in years) ​ ​ 18.7 ​ ​ 20.2 ​ Weighted average discount rate — finance leases ​ ​ 9.0 % ​ 10.3 % Weighted average discount rate — operating leases ​ ​ 5.4 % ​ 5.6 % ​ Finance leases—fiber lease agreements The Company has entered into lease agreements with numerous providers of dark fiber under indefeasible-right-of-use agreements (“IRUs”). These IRUs typically have initial terms of 15-20 years and include renewal options after the initial lease term. The Company establishes the number of renewal option periods used in determining the lease term based upon its assessment at the inception of the lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the dark fiber provider and the Company. Once the Company has accepted the related fiber route, leases that meet the criteria for treatment as finance leases are recorded as a finance lease obligation and an IRU asset. The interest rate used in determining the present value of the aggregate future minimum lease payments is the Company’s incremental borrowing rate for the reasonably certain lease term. The determination of the Company’s incremental borrowing rate requires some judgment. Finance lease assets are included in property and equipment in the Company’s consolidated balance sheets. As of December 31, 2021, the Company had committed to additional dark fiber IRU lease agreements totaling $24.7 million in future payments to be paid over periods of up to 20 years. These obligations begin when the related fiber is accepted, which is generally expected to occur in the next 12 months. Operating leases The Company leases office space and certain data center facilities under operating leases. In certain cases the Company also enters into short-term operating leases for dark fiber. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates within the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires some judgment. The Company determines its incremental borrowing rate for each lease using its current borrowing rate, adjusted for various factors including level of collateralization and term to align with the term of the lease. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal option periods used in determining the operating lease term based upon its assessment at the inception of the operating lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the landlord or dark fiber provider and the Company. Once the Company has accepted the related fiber route or the facility lease term has begun, the present value of the aggregate future minimum operating lease payments is recorded as an operating lease liability and a right-of-use leased asset. Lease incentives and deferred rent liabilities for facilities operating leases are presented with the right-of-use leased asset. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Finance For the twelve months ending December 31, ​ Leases ​ Leases 2022 $ 17,680 ​ $ 36,211 2023 ​ ​ 18,359 ​ ​ 35,417 2024 ​ ​ 17,057 ​ ​ 35,766 2025 ​ ​ 14,562 ​ ​ 30,519 2026 ​ ​ 12,585 ​ ​ 27,970 Thereafter ​ ​ 111,463 ​ ​ 252,880 Total minimum lease obligations ​ ​ 191,706 ​ ​ 418,763 Less—amounts representing interest ​ ​ (67,715) ​ ​ (172,893) Present value of minimum lease obligations ​ ​ 123,991 ​ ​ 245,870 Current maturities ​ ​ (12,197) ​ ​ (17,048) Lease obligations, net of current maturities ​ $ 111,794 ​ $ 228,822 ​ Revenue recognition The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers The Company’s service offerings consist of on-net and off-net telecommunications services. Fixed fees are billed monthly in advance and usage fees are billed monthly in arrears. Amounts billed are due upon receipt and contract lengths range from month to month to 60 months. The Company satisfies its performance obligations to provide services to customers over time as the services are rendered. In accordance with ASC 606, revenue is recognized when a customer obtains the promised service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company has adopted the practical expedient related to certain performance obligation disclosures since it has a right to consideration from its customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. To achieve this core principle, the Company follows the following five steps: 1) Identification of the contract, or contracts with a customer 2) Identification of the performance obligations in the contract 3) Determination of the transaction price 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Fees billed in connection with customer installations are deferred (as deferred revenue) and recognized as noted above. To the extent a customer contract is terminated prior to its contractual end the customer is subject to termination fees. The Company vigorously seeks payment of termination fees. The Company recognizes revenue for termination fees as they are collected. Service revenue recognized from amounts in deferred revenue (contract liabilities) at the beginning of the period during the years ended December 31, 2021, 2020 and 2019 was $4.6 million, $4.4 million and $4.4 million, respectively. Amortization expense for contract costs for the years ended December 31, 2021, 2020 and 2019 was $18.4 million, $17.1 million and $17.3 million, respectively. Gross receipts taxes, universal service fund and other surcharges Revenue recognition standards include guidance relating to taxes or surcharges assessed by a governmental authority that are directly imposed on a revenue-producing transaction between a seller and a customer and may include, but are not limited to, gross receipts taxes, excise taxes, Universal Service Fund fees and certain state regulatory fees. Such charges may be presented gross or net based upon the Company’s accounting policy election. The Company records certain excise taxes and surcharges on a gross basis and includes them in its revenues and costs of network operations. Excise taxes and surcharges billed to customers and recorded on a gross basis (as service revenue and network operations expense) were $18.5 million, $15.1 million, and $14.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Network operations Network operations expenses include the costs of personnel and related operating expenses associated with service delivery, network management, and customer support, network facilities costs, fiber and equipment maintenance fees, leased circuit costs, access fees paid to building owners and certain excise taxes and surcharges recorded on a gross basis. The Company estimates its accruals for any disputed leased circuit obligations based upon the nature and age of the dispute. Network operations costs are impacted by the timing and amounts of disputed circuit costs. The Company generally records these disputed amounts when billed by the vendor and reverses these amounts when the vendor credit has been received or the dispute has otherwise been resolved. The Company does not allocate depreciation and amortization expense to its network operations expense. Foreign currency translation adjustment and comprehensive income The consolidated financial statements of the Company’s non-US operations are translated into US dollars using the period-end foreign currency exchange rates for assets and liabilities and the average foreign currency exchange rates for revenues and expenses. Gains and losses on translation of the accounts are accumulated and reported as a component of other comprehensive income in stockholders’ equity. The Company’s only components of “other comprehensive income” are currency translation adjustments for all periods presented. The Company considers the majority of its investments in its foreign subsidiaries to be long-term in nature. The Company’s foreign exchange transaction gains (losses) are included within interest income and other on the consolidated statements of comprehensive income. Financial instruments The Company considers all highly liquid investments with an original maturity of three months or less at purchase to be cash equivalents. The Company determines the appropriate classification of its investments at the time of purchase and evaluates such designation at each balance sheet date. At December 31, 2021 and December 31, 2020, the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents and restricted cash at amortized cost, which approximates fair value based upon quoted market prices (Level 1). Based upon recent trading prices (Level 2—market approach) at December 31, 2021 the fair value of the Company’s $500.0 million senior secured notes due 2026 was $508.1 million, the fair value of the Company’s €350.0 million ($397.0 million) senior unsecured notes due 2024 was $402.0 million and the estimated fair value of the Company’s interest rate swap agreement was $9.0 million. Restricted cash and interest rate swap agreement Restricted cash represents amounts held in segregated bank accounts by our clearing broker as margin in support of our interest rate swap agreement as discussed in Note 4 and was $9.0 million as of December 31, 2021. Additional cash may be further restricted to maintain our interest rate swap instrument as interest rates fluctuate and margin requirements change. The Company does not use derivative financial instruments for trading purposes. Concentrations of credit risk The Company’s assets that are exposed to credit risk consist of its cash and cash equivalents, other assets and accounts receivable. As of December 31, 2021 and 2020, the Company’s cash equivalents were invested in demand deposit accounts, overnight investments and money market funds. The Company places its cash equivalents in instruments that meet high-quality credit standards as specified in the Company’s investment policy guidelines. Accounts receivable are due from customers located in major metropolitan areas in the United States, Europe, Canada, Mexico, Asia, South America, Australia and Africa. Receivables from the Company’s net-centric (wholesale) customers are generally subject to a higher degree of credit risk than the Company’s corporate customers. The Company relies upon an equipment vendor for the majority of its network equipment and is also dependent upon many third-party fiber providers for providing its services to its customers. Property and equipment Property and equipment are recorded at cost and depreciated once deployed using the straight-line method over the estimated useful lives of the assets. Useful lives are determined based on historical usage with consideration given to technological changes and trends in the industry that could impact the asset utilization. System infrastructure costs include the capitalized compensation costs of employees directly involved with construction activities and costs incurred by third-party contractors. Assets and liabilities under finance leases are recorded at the lesser of the present value of the aggregate future minimum lease payments or the fair value of the assets under lease. Leasehold improvements include costs associated with building improvements and customer installation costs. The Company determines the number of renewal option periods, if any, included in the lease term for purposes of amortizing leasehold improvements and the lease term of its finance leases based upon its assessment at the inception of the lease for which the failure to renew the lease imposes a penalty on the Company in such amount that a renewal appears to be reasonably assured. Expenditures for maintenance and repairs are expensed as incurred. Depreciation and amortization periods are as follows: ​ ​ ​ ​ Type of asset Depreciation or amortization period Indefeasible rights of use (IRUs) Shorter of useful life or the IRU lease agreement; generally 15 to 20 years Network equipment 3 to 8 years Leasehold improvements Shorter of lease term, including reasonably assured renewal periods, or useful life Software 5 years Owned buildings 40 years Office and other equipment 3 to 7 years System infrastructure 5 to 10 years ​ Long-lived assets The Company’s long-lived assets include property and equipment. These long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment is determined by comparing the carrying value of these long-lived assets to management’s probability weighted estimate of the future undiscounted cash flows expected to result from the use of the assets. In the event an impairment exists, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset, which would be determined by using quoted market prices or valuation techniques such as the discounted present value of expected future cash flows, appraisals, or other pricing models. In the event there are changes in the planned use of the Company’s long-term assets or the Company’s expected future undiscounted cash flows are reduced significantly, the Company’s assessment of its ability to recover the carrying value of these assets could change. Equity-based compensation The Company recognizes compensation expense for its share-based payments granted to its employees based on their grant date fair values with the expense being recognized on a straight-line basis over the requisite service period. The Company begins recording equity-based compensation expense related to performance awards when it is considered probable that the performance conditions will be met and for market-based awards compensation cost is recognized if the service condition is satisfied even if the market condition is not satisfied. Equity-based compensation expense is recognized in the statement of operations in a manner consistent with the classification of the employee’s salary and other compensation. Income taxes The Company’s deferred tax assets or liabilities are computed based upon the differences between financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate. Deferred income tax expenses or benefits are based upon the changes in the assets or liability from period to period. At each balance sheet date, the Company assesses the likelihood that it will be able to realize its deferred tax assets. Valuation allowances are established when management determines that it is “more likely than not” that some portion or all of the deferred tax asset may not be realized. The Company considers all available positive and negative evidence in assessing the need for a valuation allowance including its historical operating results, ongoing tax planning, and forecasts of future taxable income, on a jurisdiction by jurisdiction basis. The Company reduces its valuation allowance if the Company concludes that it is “more likely than not” that it would be able to realize its deferred tax assets. Management determines whether a tax position is more likely than not to be sustained upon examination based on the technical merits of the position. Once it is determined that a position meets this recognition threshold, the position is measured to determine the amount of benefit to be recognized in the financial statements. The Company adjusts its estimated liabilities for uncertain tax positions periodically because of ongoing examinations by, and settlements with, the various taxing authorities, as well as changes in tax laws, regulations and interpretations. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of its income tax expense. Basic and diluted net income per common share Basic earnings per share (“EPS”) excludes dilution for common stock equivalents and is computed by dividing net income or (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock outstanding during each period, adjusted for the effect of dilutive common stock equivalents. Shares of restricted stock are included in the computation of basic EPS as they vest and are included in diluted EPS, to the extent they are dilutive, determined using the treasury stock method. The following details the determination of the diluted weighted average shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ Year Ended ​ Year Ended ​ ​ ​ December 31, ​ December 31, ​ December 31, ​ ​ 2021 2020 2019 ​ Weighted average common shares—basic ​ 46,419,180 45,947,772 ​ 45,542,315 ​ Dilutive effect of stock options ​ 34,007 80,849 ​ 32,222 ​ Dilutive effect of restricted stock ​ 510,733 639,577 ​ 505,858 ​ Weighted average common shares—diluted ​ 46,963,920 46,668,198 ​ 46,080,395 ​ ​ The following details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, December 31, December 31, ​ 2021 ​ 2020 ​ 2019 ​ Unvested shares of restricted common stock ​ 1,253,321 ​ 1,339,596 ​ 1,283,281 ​ Anti-dilutive options for common stock ​ 45,809 ​ 32,324 ​ 39,608 ​ Anti-dilutive shares of restricted common stock ​ 86,619 ​ 223,118 ​ 348 ​ ​

Property and equipment_

Property and equipment:	12 Months Ended
	Dec. 31, 2021
Property and equipment:
Property and equipment:	2. Property and equipment: Property and equipment consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2021 2020 Owned assets: ​ ​ ​ ​ ​ ​ Network equipment ​ $ 650,634 ​ $ 611,265 Leasehold improvements ​ 250,623 ​ ​ 241,379 System infrastructure ​ 160,376 ​ ​ 148,533 Software ​ 11,028 ​ ​ 10,609 Office and other equipment ​ 20,999 ​ ​ 19,611 Building ​ 1,273 ​ ​ 1,376 Land ​ 107 ​ ​ 116 ​ ​ 1,095,040 ​ ​ 1,032,889 Less—Accumulated depreciation and amortization ​ (912,579) ​ ​ (856,859) ​ ​ 182,461 ​ ​ 176,030 Assets under finance leases: ​ ​ ​ ​ ​ ​ IRUs ​ 524,475 ​ ​ 482,978 Less—Accumulated depreciation and amortization ​ (249,056) ​ ​ (228,673) ​ ​ 275,419 ​ ​ 254,305 Property and equipment, net ​ $ 457,880 ​ $ 430,335 ​ Depreciation and amortization expense related to property and equipment and finance leases was $89.2 million, $83.5 million and $80.2 million, for 2021, 2020 and 2019, respectively. The Company capitalizes the compensation cost of employees directly involved with its construction activities. In 2021, 2020 and 2019, the Company capitalized compensation costs of $13.4 million, $12.1 million and $10.7 million, respectively. These amounts are included in system infrastructure costs. Exchange agreement In 2020 and 2019 the Company exchanged certain used network equipment and cash consideration for new network equipment. The fair value of the new network equipment received was estimated to be $1.1 million and $3.3 million, respectively, resulting in gains of $0.3 million and $1.0 million, respectively. The estimated fair value of the equipment received was based upon the cash consideration price the Company pays for the new network equipment on a standalone basis (Level 3). There were no exchange transactions in 2021. Installment payment agreement The Company has entered into an installment payment agreement (“IPA”) with a vendor. Under the IPA the Company was able to purchase network equipment in exchange for interest free note obligations each with a twenty-four month term. There are no payments under each note obligation for the first six months followed by eighteen equal installment payments for the remaining eighteen month term. As of December 31, 2021 and December 31, 2020, there was $0.8 million and $7.7 million, respectively, of note obligations outstanding under the IPA, secured by the related equipment. The Company recorded the assets purchased and the present value of the note obligation utilizing an imputed interest rate. The resulting discounts under the note obligations are being amortized over the note term using the effective interest rate method.

Accrued and other liabilities_

Accrued and other liabilities:	12 Months Ended
	Dec. 31, 2021
Accrued and other liabilities:
Accrued and other liabilities:	3. Accrued and other liabilities: Accrued and other current liabilities consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2021 2020 Operating accruals ​ $ 16,360 ​ $ 24,168 Deferred revenue—current portion ​ 4,894 ​ ​ 4,651 Payroll and benefits ​ 8,466 ​ ​ 8,024 Taxes—non-income based ​ 4,291 ​ ​ 5,918 Interest ​ 5,046 ​ ​ 8,268 Total ​ $ 39,057 ​ $ 51,029 ​

Long-term debt_

Long-term debt:	12 Months Ended
	Dec. 31, 2021
Long-term debt:
Long-term debt:	4. Long-term debt: As of December 31, 2021, the Company had outstanding $500.0 million aggregate principal amount of Senior Secured Notes due 2026 (the “2026 Notes”) and €350.0 million ($397.0 million USD) aggregate principal amount of Senior Unsecured Euro Notes due 2024 (the “2024 Notes”). The 2026 Notes are due on May 1, 2026 and bear interest at a rate of 3.50% per year. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year. The 2024 Notes are due on June 30, 2024 and bear interest at a rate of 4.375% per year. Interest on the 2024 Notes is paid semi-annually on June 30 and December 30 of each year. Interest rate swap agreement As of December 31, 2021, the Company was party to an interest rate swap agreement (the “Swap Agreement”) that has the economic effect of modifying the fixed interest rate obligation associated with its 2026 Notes to a variable interest rate obligation based on the Secured Overnight Financing Rate (“SOFR”) so that the interest payable on the 2026 Notes effectively became variable based on overnight SOFR. The critical terms of the Swap Agreement match the terms of the 2026 Notes, including the notional amount and the optional redemption date on February 1, 2026. The Company did not elect hedge accounting for the Swap Agreement. The Swap Agreement is recorded at its fair value at each reporting period, and the Company incurs gains and losses due to changes in market interest rates. By entering into the Swap Agreement, the Company has assumed the risk associated with variable interest rates. Changes in interest rates affect the interest expense that the Company recognizes in its consolidated statements of comprehensive income. The values that the Company reports for the Swap Agreement as of each reporting date are recognized as interest expense with the corresponding amounts included in assets or liabilities in the Company’s consolidated balance sheets. As of December 31, 2021 the fair value of the Swap Agreement was a net liability of $9.0 million of which $1.6 million is presented with prepaid expenses and $10.6 million is presented with other long-term liabilities. The Company recorded an unrealized loss related to the Swap Agreement of $9.0 million in 2021, which is presented in interest expense on the statement of comprehensive income. The Company has made a $20.0 million deposit with the counterparty to the Swap Agreement. If the fair value of the Swap Agreement exceeds a net liability of $20.0 million the Company will be required to deposit additional funds with the counterparty equal to the net liability fair value in excess of $20.0 million. As of December 31, 2021, $9.0 million of the $20.0 million deposit was restricted and $11.0 million was unrestricted. Issuance of the 2026 Notes On May 7, 2021 (the “Closing Date”), Group completed an offering of $500.0 million aggregate principal amount of its 2026 Notes for issuance in a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The 2026 Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States in compliance with Regulation S under the Securities Act. The net proceeds from the 2026 Notes offering were $496.9 million after deducting the $1.8 million discount and $1.3 million of offering expenses. In May 2021 and prior to the consummation of the offering of the 2026 Notes, Group completed the redemption of $45.0 million of its 5.375% Senior Secured Notes due 2022 (the “2022 Notes”), following which $284.1 million of its 2022 Notes remained outstanding. On the Closing Date, Group issued a notice of full redemption to holders of its remaining 2022 Notes, specifying December 1, 2021 as the redemption date. On the Closing Date, Group used the net proceeds from the offering of the 2026 Notes to satisfy and discharge its obligations under the remaining 2022 Notes by depositing with the trustee the funds necessary to pay the $284.1 million aggregate principal amount and $11.5 million of interest due on the 2022 Notes through December 1, 2021. Under the indenture governing the 2022 Notes (the “2022 Notes Indenture”), Group could redeem the 2022 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2022 Notes, plus accrued and unpaid interest beginning on December 1, 2021. Prior to December 1, 2021, any redemption of the 2022 Notes would have included a “make-whole” premium as set forth in the 2022 Notes Indenture. The Company expects to use the remaining net proceeds from the 2026 Notes offering for general corporate purposes, to repay debt obligations, to repurchase the Company’s common stock or for special or recurring dividends to the Company’s stockholders. The 2026 Notes were issued pursuant to, and are governed by, an indenture (the “2026 Notes Indenture”), dated the Closing Date by and among Group, Holdings, the other guarantors named therein, the trustee and the collateral agent. The 2026 Notes are guaranteed on a senior secured basis, jointly and severally, by Group’s material domestic subsidiaries, subject to certain exceptions (the “Subsidiary Guarantors”). In addition, the 2026 Notes are guaranteed on a senior unsecured basis by Holdings (together with the Subsidiary Guarantors, the “Guarantors”). Under certain circumstances, the Guarantors may be released from these guarantees without the consent of the holders of the 2026 Notes. The 2026 Notes and the guarantees of the Subsidiary Guarantors (the “subsidiary guarantees”) are Group’s and the Subsidiary Guarantors’ senior obligations, secured by a first priority lien on substantially all of Group’s and the Subsidiary Guarantors’ assets, subject to certain exceptions, limitations and permitted liens. The 2026 Notes and the subsidiary guarantees are effectively senior to any of Group’s and the Subsidiary Guarantors’ existing and future senior unsecured indebtedness and future indebtedness secured by liens on the collateral securing the 2026 Notes that are junior to the liens on the collateral securing the 2026 Notes, in each case, to the extent of the value of the collateral securing the 2026 Notes. The 2026 Notes and the subsidiary guarantees rank pari passu in right of payment with Group’s and the Subsidiary Guarantors’ existing and future indebtedness that is not subordinated in right of payment to the 2026 Notes or the subsidiary guarantees. The 2026 Notes and the subsidiary guarantees are effectively subordinated to any of Group’s and the Subsidiary Guarantors’ indebtedness that is secured by assets that do not constitute collateral or that is secured by liens on the collateral securing the 2026 Notes that are senior to the liens securing the 2026 Notes, in each case, to the extent of the value of the collateral securing such indebtedness. In addition, the 2026 Notes and the subsidiary guarantees thereof rank contractually senior in right of payment to all of Group’s and the Subsidiary Guarantors’ future subordinated indebtedness and are structurally subordinated to the liabilities of the non-guarantor subsidiaries. Holdings’ guarantee is its senior unsecured obligation, and ranks equally in right of payment with all of Holdings’ existing and future senior indebtedness and senior in right of payment to all of Holdings’ future subordinated indebtedness. Holdings’ guarantee is effectively subordinated to its secured indebtedness to the extent of the value of the collateral securing such indebtedness. The 2026 Notes bear interest at a rate of 3.50% per annum. Interest began to accrue on the 2026 Notes on May 7, 2021 and is paid semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2021. Unless earlier redeemed or repurchased, the 2026 Notes will mature on May 1, 2026. Group may redeem some or all of the 2026 Notes at any time prior to February 1, 2026 at a price equal to 100% of the principal amount of the 2026 Notes, plus a “make-whole” premium as set forth in the 2026 Notes Indenture, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. Thereafter, Group may redeem the 2026 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2026 Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. Debt extinguishment and redemption of 2022 Notes In March 2021, Group redeemed $115.9 million aggregate principal amount of its 2022 Notes at an average price of 103.2% of the principal amount plus $0.4 million of accrued and unpaid interest. As a result of this transaction, the Company incurred a loss on debt extinguishment and redemption of $3.9 million from the premium payment above par value, the amortization of the remaining unamortized notes cost and certain transaction expenses. On April 6, 2021, Group issued a notice of conditional partial redemption for $45.0 million of its 2022 Notes. Group redeemed the $45.0 million aggregate principal amount of its 2022 Notes on May 6, 2021 at par plus the “make-whole amount” as defined in the 2022 Notes Indenture of $1.9 million ($41.41533 per $1,000 aggregate principal amount) plus accrued interest to, but excluding, the redemption date of $0.4 million ($9.70486 per $1,000 aggregate principal amount). Following this $45.0 million redemption there was $284.1 million aggregate principal amount of 2022 Notes remaining. On the Closing Date of the issuance of the 2026 Notes, Group used the net proceeds from the offering of the 2026 Notes to satisfy and discharge its remaining obligations under its 2022 Notes. As a result of these transactions, the Company incurred a loss on debt extinguishment and redemption of $10.8 million from the payment of $11.5 million of interest on the 2022 Notes through December 1, 2021 and the amortization of the remaining unamortized notes costs and debt premium. Issuance of 2024 Notes In June 2020, Group completed an offering of €215.0 million of 4.375% senior unsecured notes due 2024 (“2024 Notes”). The net proceeds from the June 2020 offering, after deducting offering expenses, were $240.3 million. In June 2019, Group completed an offering of €135.0 million of 2024 Notes. The net proceeds from the June 2019 offering, after deducting offering expenses, were $152.1 million. The Company expects to use the proceeds from these offerings for general corporate purposes , to repay debt obligations, to repurchase the Company’s common stock or for special or recurring dividends to the Company’s stockholders. The 2024 Notes are guaranteed (the “Guarantees”) on a senior unsecured basis, jointly and severally, by the Company’s material domestic subsidiaries, subject to certain exceptions, and by the Company (collectively, the “Guarantors”). Under certain circumstances, the Guarantors may be released from these Guarantees without the consent of the holders of the 2024 Notes. The 2024 Notes and the Guarantees are Group’s and the Guarantors’ senior unsecured obligations. The 2024 Notes and the Guarantees are effectively subordinated to all of Group’s and the Guarantors’ existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, and are structurally subordinated to all indebtedness and other liabilities of subsidiaries that are not Guarantors. Without giving effect to collateral arrangements, the 2024 Notes and the Guarantees rank pari passu in right of payment with Group’s and the Guarantors’ existing and future senior indebtedness. The 2024 Notes and the Guarantees rank contractually senior in right of payment to all of Group’s and the Guarantors’ existing and future subordinated indebtedness. The 2024 Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers in an unregistered offering pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”), and to certain non-U.S. persons in transactions outside the United States in compliance with Regulation S under the Act. The 2024 Notes have not been registered under the Act, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The 2024 Notes are listed on the Official List of The International Stock Exchange; however, there can be no assurance that the listing will be maintained. The 2024 Notes bear interest at a rate of 4.375% per annum and is paid semi-annually in arrears on June 30 and December 30 of each year. Unless earlier redeemed, the 2024 Notes will mature on June 30, 2024. The 2024 Notes were issued in Euros and are reported in the Company’s reporting currency — US Dollars. As of December 31, 2019, the Company’s €135.0 million of 2024 Notes were valued at $151.4 million resulting in an unrealized gain on foreign exchange of $2.3 million for the year ended December 31, 2019. As of December 31, 2020, the Company’s €350.0 million of 2024 Notes were valued at $429.3 million resulting in an unrealized loss on foreign exchange of $37.0 million for the year ended December 31, 2020. As of December 31, 2021, the Company’s €350.0 million of 2024 Notes were valued at $397.0 million resulting in an unrealized gain on foreign exchange of $32.5 million for the year ended December 31, 2021. Group may redeem some or all of the 2024 Notes at any time prior to June 30, 2021 at a price equal to 100% of the principal amount of the 2024 Notes, plus a “make-whole” premium as set forth in the indenture, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. Thereafter, Group may redeem the 2024 Notes, in whole or in part, at a redemption price ranging from 102.188% to par (depending on the year), as set forth in the indenture. Group may also redeem up to 35% of the principal amount of the 2024 Notes using proceeds of certain equity offerings completed prior to June 30, 2021 at a redemption price equal to 104.375%, plus accrued and unpaid interest, if any, to, but not including, the date of redemption, subject to certain exceptions. Group may also redeem the 2024 Notes, in whole but not in part, in the event of certain changes in the tax laws of the United States (or any taxing authority in the United States). This redemption would be at 100% of the principal amount of the 2024 Notes to be redeemed (plus any accrued interest and additional amounts then payable with respect to the 2024 Notes to, but not including, the redemption date). If Group undergoes specific kinds of change in control accompanied by certain ratings events, it will be required to offer to repurchase the 2024 Notes from holders at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. Additionally, if Group or any of its restricted subsidiaries sells assets and does not apply the proceeds from such sale in a certain manner or certain other events have not occurred, under certain circumstances, Group will be required to use the excess net proceeds to make an offer to purchase the 2024 Notes at an offer price in cash equal to 100% of the principal amount of the 2024 Notes, plus accrued and unpaid interest, if any, to, but not including, the repurchase date. In connection with any offer to purchase all or any of the 2024 Notes (including a change of control offer, asset sale offer or any tender offer), if holders of no less than 90% of the aggregate principal amount of the 2024 Notes validly tender their 2024 Notes, Group or a third party is entitled to redeem any remaining 2024 Notes at the price offered to each holder. The 2024 Notes indenture includes covenants that restrict Group and its restricted subsidiaries’ ability to, among other things: incur indebtedness; issue certain preferred stock or similar equity securities; pay dividends or make other distributions in respect of, or repurchase or redeem, capital stock; make certain investments and other restricted payments, such as prepayment, redemption or repurchase of certain indebtedness; create liens; consolidate, merge, sell or otherwise dispose of all or substantially all of the assets of Group and its restricted subsidiaries taken as a whole; incur restrictions on the ability of a subsidiary to pay dividends or make other payments; and enter into transactions with affiliates. However, the covenants provide for certain exceptions to these restrictions and the Company is not subject to the covenants under the 2024 Notes indenture. Certain covenants will cease to apply to the 2024 Notes if, and for so long as, the 2024 Notes have investment grade ratings from any two of Moody’s Investors Service, Inc., Fitch Ratings, Inc. and S&P Global Ratings and so long as no default or event of default under the Indenture has occurred and is continuing. The principal amount of the 2024 Notes would become immediately due and payable upon the occurrence of certain bankruptcy or insolvency events involving Group or certain of its subsidiaries, and may be declared immediately due and payable by the trustee or the holders of at least 25% of the aggregate principal amount of the then-outstanding 2024 Notes upon the occurrence of certain events of default under the indenture. Senior secured notes - $445.0 million 2022 Notes In February 2015, Group issued $250.0 million of 5.375% senior secured notes due 2022 (the “2022 Notes”). In December 2016, the Company issued an additional $125.0 million par value of its 2022 Notes at a premium of 100.375% of par value. In August 2018, the Company issued an additional $70.0 million par value of its 2022 Notes at a premium of 101.75% of par value. The 2022 Notes were sold in private offerings for resale to qualified institutional buyers pursuant to SEC Rule 144A and were scheduled to mature on March 1, 2022. Interest accrued at 5.375% and was paid semi-annually in arrears on March 1 and September 1 of each year. The 2022 Notes were redeemable prior to December 1, 2021 (three months prior to the maturity date of the Notes) in whole or from time to time in part, at a redemption price equal to the sum of (1) 100% of the principal amount plus accrued and unpaid interest, if any, to, but not including, the redemption date, and (2) a make-whole premium, if any. The make-whole premium is the excess of (1) the net present value, on the redemption date, of the principal being redeemed or paid and the amount of interest (exclusive of interest accrued to the date of redemption) that would have been payable if such redemption had not been made, over (2) the aggregate principal amount of the notes being redeemed or paid. Net present value shall be determined by discounting, on a semi-annual basis, such principal and interest at the reinvestment rate (as determined in the indenture governing the 2022 Notes) from the respective dates on which such principal and interest would have been payable if such redemption had not been made. In May 2021, Group redeemed the 2022 Notes as noted above. Senior unsecured notes—$189.2 million 2021 Notes On April 9, 2014, Cogent Communications Finance, Inc. ( “Cogent Finance”), a newly formed financing subsidiary of Group, completed an offering at par of $200.0 million of 5.625% Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes were sold in private offerings for resale to qualified institutional buyers pursuant to SEC Rule 144A, accrued interest at a rate of 5.625% and were scheduled to mature on April 15, 2021. Interest was paid semi-annually on April 15 and October 15. Cogent Finance merged with Group, with Group continuing as the surviving corporation (the “Finance Merger”). At the time of consummation of the Finance Merger, Group assumed the obligations of Cogent Finance under the 2021 Notes and the indenture governing the 2021 Notes (the “Indenture”) and Group and each of Group’s domestic subsidiaries became party to the Indenture pursuant to a supplemental indenture to the Indenture and the obligations under the Indenture became obligations solely of Group and each of Group’s domestic subsidiaries. Holdings also provided a guarantee of the 2021 Notes but Holdings was not subject to the covenants under the Indenture. In the second quarter of 2016, the Company paid $10.9 million for the purchase of $10.8 million of par value and accrued interest on its 2021 Notes reducing the principal amount to $189.2 million. In June 2020, Group redeemed the 2021 Notes with the proceeds from its June 2020 issuance of its 2024 Notes. The Company redeemed the 2021 Notes at a redemption price of 100.00% of the $189.2 million principal amount plus $1.6 million of accrued interest. As a result of this transaction, the Company incurred a loss on debt extinguishment and redemption of $0.6 million from the amortization of the remaining unamortized notes cost and certain transaction expenses. Limitations under the indentures The indenture governing the 2024 Notes (the “2024 Notes Indenture”) and the 2026 Notes Indenture, among other things, limit the Company’s ability to incur indebtedness; to pay dividends or make other distributions; to make certain investments and other restricted payments; to create liens; to consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; to incur restrictions on the ability of a subsidiary to pay dividends or make other payments; and to enter into certain transactions with its affiliates. There are certain exceptions to the limitations on the Company’s ability to incur indebtedness under the 2024 Notes Indenture and the 2026 Notes Indenture, including IRU agreements incurred in the normal course of business and any additional indebtedness if (i) under the 2024 Notes Indenture, the Company’s consolidated leverage ratio, as defined in the 2024 Notes Indenture, is less than 6.0 to 1.0 and (ii) under the 2026 Notes Indenture, either the Company’s consolidated leverage ratio, as defined in the 2026 Notes Indenture, is less than 6.0 to 1.0 or the Company’s fixed charge coverage ratio, as defined in the 2026 Notes Indenture, is greater than 2.0 to 1.0. The Company can also incur unlimited liens (which can be used, together with capacity under the debt covenant, to incur additional secured indebtedness) if the Company’s consolidated secured leverage ratio, as defined in each of the 2024 Notes Indenture and the 2026 Notes Indenture, is less than 4.0 to 1.0. The 2024 Notes Indenture permits restricted payments, such as dividends and stock purchases, using accumulated consolidated cash flow, as defined in the 2024 Notes Indenture, when the Company’s consolidated leverage ratio, as defined by the 2024 Notes Indenture, is less than 4.25 to 1.00. Under the 2026 Notes Indenture, such accumulated consolidated cash flow, as defined therein, can be used to make such restricted payments if the Company is able to incur $1 of debt, as defined (i.e., either its consolidated leverage ratio is less than 6.0 to 1.0 or its fixed charge coverage ratio is greater than 2.0 to 1.0). The Company’s consolidated leverage ratio was above 4.25 as of December 31, 2021, and the Company’s fixed charge coverage ratio was above 2.0 as of December 31, 2021. As of December 31, 2021, a total of $185.5 million was unrestricted and permitted for restricted payments including dividends and stock purchases. The aggregate future contractual maturities of long-term debt were as follows as of December 31, 2021 (in thousands): ​ ​ ​ ​ ​ For the year ending December 31, ​ ​ 2022 ​ $ 791 2023 ​ — 2024 ​ 397,005 2025 ​ — 2026 ​ 500,000 Thereafter ​ — Total ​ $ 897,796 ​

Income taxes_

Income taxes:	12 Months Ended
	Dec. 31, 2021
Income taxes:
Income taxes:	5. Income taxes: The components of income before income taxes consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2021 2020 2019 Domestic ​ $ 73,753 ​ $ 23,808 ​ $ 72,773 Foreign ​ (2,333) ​ ​ (13,496) ​ ​ (20,099) Total income before income taxes ​ $ 71,420 ​ $ 10,312 ​ $ 52,674 ​ The income tax expense is comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2021 2020 2019 Current: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ $ — ​ $ 32 ​ $ — State ​ (3,116) ​ (2,908) ​ (2,647) Foreign ​ (1,833) ​ (947) ​ (370) Deferred: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ (17,959) ​ (1,867) ​ (10,899) State ​ (2,348) ​ 1,241 ​ (1,285) Foreign ​ 2,021 ​ 353 ​ 47 Total income tax expense ​ $ (23,235) ​ $ (4,096) ​ $ (15,154) ​ Our consolidated temporary differences comprising our net deferred tax assets are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2021 2020 Deferred Tax Assets: ​ ​ ​ ​ ​ ​ Net operating loss carry-forwards ​ $ 246,276 ​ $ 273,999 Tax credits ​ 2,119 ​ ​ 1,965 Equity-based compensation ​ ​ 3,976 ​ ​ 4,901 Operating leases ​ ​ 40,627 ​ ​ 40,081 Total gross deferred tax assets ​ 292,998 ​ ​ 320,946 Valuation allowance ​ ​ (132,800) ​ ​ (150,589) ​ ​ ​ 160,198 ​ ​ 170,357 Deferred Tax Liabilities: ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 46,642 ​ ​ 37,364 Accrued liabilities and other ​ 103,705 ​ ​ 105,554 Right-of-use assets ​ ​ 37,784 ​ ​ 37,097 Gross deferred tax liabilities ​ 188,131 ​ ​ 180,015 Net deferred tax liabilities ​ $ 27,933 ​ $ 9,658 ​ At each balance sheet date, the Company assesses the likelihood that it will be able to realize its deferred tax assets. The Company considers all available positive and negative evidence in assessing the need for a valuation allowance. The Company maintains a full valuation allowance against certain of its deferred tax assets consisting primarily of net operating loss carryforwards related to its foreign operations in Europe, Asia, South America, Australia and Africa and net operating losses in the United States that are limited for use under Section 382 of the Internal Revenue Code. As of December 31, 2021, the Company has combined net operating loss carry-forwards of $1.0 billion. This amount includes federal net operating loss carry-forwards in the United States of $39.5 million, net operating loss carry-forwards related to its European operations of $967.9 million and $7.3 million related to its other international operations. Section 382 of the Internal Revenue Code in the United States limits the utilization of net operating losses when ownership changes, as defined by that section, occur. The Company has performed an analysis of its Section 382 ownership changes and has determined that the utilization of certain of its net operating loss carryforwards in the United States is limited based on the annual Section 382 limitation and remaining carryforward period. Of the net operating losses available at December 31, 2021 in the United States $25.6 million are limited for use under Section 382. Net operating loss carryforwards outside of the United States totaling $1.0 billion are not subject to limitations similar to Section 382. The net operating loss carryforwards in the United States will expire, if unused, between 2026 and 2036. The net operating loss carry-forwards related to the Company’s European operations include $826.7 million that do not expire and $141.2 million that expire between 2022 and 2037. The Company has not provided for United States deferred income taxes or foreign withholding taxes on its undistributed earnings for certain non-US subsidiaries earnings or cumulative translation adjustments because these earnings and adjustments are intended to be permanently reinvested in operations outside the United States. It is not practical to determine the amount of the unrecognized deferred tax liability on such undistributed earnings or cumulative translation adjustments. In the normal course of business the Company takes positions on its tax returns that may be challenged by taxing authorities. The Company evaluates all uncertain tax positions to assess whether the position will more likely than not be sustained upon examination. If the Company determines that the tax position is not more likely than not to be sustained, the Company records a liability for the amount of the benefit that is not more likely than not to be realized when the tax position is settled. The Company does not have a material liability for uncertain tax positions at December 31, 2021 and does not expect that its liability for uncertain tax positions will materially increase during the twelve months ended December 31, 2022, however, actual changes in the liability for uncertain tax positions could be different than currently expected. If recognized, changes in the Company’s total unrecognized tax benefits would impact the Company’s effective income tax rate. The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction and various state and foreign jurisdictions. The Company is subject to US federal tax and state tax examinations for years 2004 to 2021. The Company is subject to tax examinations in its foreign jurisdictions generally for years 2005 to 2021. The following is a reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2021 2020 2019 Federal income tax expense at statutory rates ​ $ (14,999) ​ $ (2,166) ​ $ (11,061) Effect of: ​ ​ ​ ​ ​ ​ ​ ​ ​ State income taxes, net of federal benefit ​ (4,123) ​ ​ (1,091) ​ ​ (2,973) Impact of foreign operations ​ 715 ​ ​ (365) ​ ​ (505) Non-deductible expenses ​ (1,365) ​ ​ (411) ​ ​ (491) Tax effect of TCJA from foreign earnings ​ (389) ​ ​ (66) ​ ​ (28) Other ​ — ​ ​ 32 ​ ​ (32) Changes in valuation allowance ​ (3,074) ​ ​ (29) ​ ​ (64) Income tax expense ​ $ (23,235) ​ $ (4,096) ​ $ (15,154) ​

Commitments and contingencies_

Commitments and contingencies:	12 Months Ended
	Dec. 31, 2021
Commitments and contingencies:
Commitments and contingencies:	6. Commitments and contingencies: Current and potential litigation In accordance with the accounting guidance for contingencies, the Company accrues its estimate of a contingent liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Where it is probable that a liability has been incurred and there is a range of expected loss for which no amount in the range is more likely than any other amount, the Company accrues at the low end of the range. The Company reviews its accruals at least quarterly and adjusts them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. The Company has taken certain positions related to its obligations for leased circuits for which it is reasonably possible could result in a loss of up to $3.6 million in excess of the amount accrued at December 31, 2021. The Company is also engaged in litigation in Virginia in which a former provider of transoceanic capacity to the Company is seeking approximately $0.6 million for alleged unpaid fees and the Company’s early termination of the arrangement. The complaint was filed in December 2021 in the Circuit Court of Fairfax County, Virginia. The Company is contesting its obligation to pay these amounts. The Company was engaged in an arbitration proceeding in Spain in which a former provider of optical fiber to the Company was seeking approximately $9 million for the Company’s early termination of the optical fiber leases, which amount the Company accrued in 2015. The Company counterclaimed for damages and contested its obligation to pay the termination liability. The arbitration was being conducted by the Civil and Commercial Arbitration Court (CIMA) in Madrid, Spain. On October 25, 2021, CIMA issued its decision, awarding the former provider approximately $0.7 million and rejecting the Company’s counterclaims. Both parties had until (i) November 4, 2021 to request clarifications from CIMA regarding clerical or mathematical errors, unaddressed claims or other minor issues and (ii) two months from the later of the date of the award or a subsequent clarifying order from CIMA to file a court action before the High Court of Justice of Madrid to annul the award. The Company’s policy is to not record the impact of legal proceedings until all appeals have been exhausted or legal counsel has advised that any further appeal will likely not change the outcome of the matter. The appeal period has lapsed and the Company decided to pay the provider the $0.7 million award amount in the first quarter of 2022. As a result, the Company recorded a gain on lease termination of $7.4 million in the year ended December 31, 2021. In the ordinary course of business the Company is involved in other legal activities and claims. Because such matters are subject to many uncertainties and the outcomes are not predictable with assurance, the liability related to these legal actions and claims cannot be determined with certainty. Management does not believe that such claims and actions will have a material impact on the Company’s financial condition or results of operations. Judgment is required in estimating the ultimate outcome of any dispute resolution process, as well as any other amounts that may be incurred to conclude the negotiations or settle any litigation. Actual results may differ from these estimates under different assumptions or conditions and such differences could be material. Network equipment sites and data center facilities The Company enters into leases for network equipment sites and for space in data center facilities. Future minimum annual payments under these arrangements are as follows (in thousands): ​ ​ ​ ​ ​ For the year ending December 31, ​ ​ 2022 ​ $ 24,740 2023 ​ 12,225 2024 ​ 8,450 2025 ​ 6,112 2026 ​ 4,711 Thereafter ​ 1,872 ​ ​ $ 58,110 ​ Expenses related to these arrangements were $22.0 million in 2021, $21.0 million in 2020 and $20.6 million in 2019. Unconditional purchase obligations Unconditional purchase obligations for equipment and services totaled $19.4 million at December 31, 2021. As of December 31, 2021, the Company had also committed to additional dark fiber IRU finance and operating lease agreements totaling $24.7 million in future payments to be paid over periods of up to 20 years. These obligations begin when the related fiber is accepted, which is generally expected to occur in 2022. Future minimum payments under these obligations are $2.9 million, $1.0 million, $1.0 million, $1.0 million and $1.0 million for the years ending December 31, 2022 to December 31, 2026, respectively, and $17.8 million, thereafter. Defined contribution plan The Company sponsors a 401(k) defined contribution plan that provides for a Company matching payment. The Company matching payments were paid in cash and were $0.9 million for 2021, $0.9 million for 2020 and $0.8 million for 2019.

Stockholders equity_

Stockholders equity:	12 Months Ended
	Dec. 31, 2021
Stockholders' equity:
Stockholders' equity:	7. Stockholders’ equity: Authorized shares The Company has 75.0 million shares of authorized $0.001 par value common stock and 10,000 authorized but unissued shares of $0.001 par value preferred stock. The holders of common stock are entitled to one vote per common share and, subject to any rights of any series of preferred stock, dividends may be declared and paid on the common stock when determined by the Company’s Board of Directors. Common stock buybacks The Company’s Board of Directors has approved $50.0 million for purchases of the Company’s common stock under a buyback program (the “Buyback Program”). At December 31, 2021, there was $30.4 million remaining for purchases under the Buyback Program. During 2020 the Company purchased 79,056 shares of its common stock for $4.5 million. These shares of common stock were subsequently retired.There were no purchases of common stock in 2021 or 2019. Dividends on common stock Dividends are recorded as a reduction to retained earnings. Dividends on unvested restricted shares of common stock are paid as the awards vest. The payment of any future dividends and any other returns of capital, including stock buybacks, will be at the discretion of the Company’s Board of Directors and may be reduced, eliminated or increased and will be dependent upon the Company’s financial position, results of operations, available cash, cash flow, capital requirements, limitations under the Company’s debt indentures and other factors deemed relevant by the Company’s Board of Directors. The Company is a Delaware Corporation and under the General Corporate Law of the State of Delaware distributions may be restricted including a restriction that distributions, including stock purchases and dividends, do not result in an impairment of a corporation’s capital, as defined under Delaware Law. The indentures governing the Company’s notes limit the Company’s ability to return cash to its stockholders.

Stock option and award plan_

Stock option and award plan:	12 Months Ended
	Dec. 31, 2021
Stock option and award plan:
Stock option and award plan:	8. Stock option and award plan: Incentive award plan The Company grants restricted stock and options for common stock under its award plan, as amended (the “Award Plan”). Stock options granted under the Award Plan generally vest over a four-year period and have a term of ten years. Grants of shares of restricted stock granted under the Award Plan generally vest over periods ranging from three The accounting for equity-based compensation expense requires the Company to make estimates and judgments that affect its financial statements. These estimates for stock options include the following. Expected Dividend Yield—The Company uses an expected dividend yield based upon expected annual dividends and the Company’s stock price. Expected Volatility—The Company uses its historical volatility for a period commensurate with the expected term of the option. Risk-Free Interest Rate—The Company uses the zero coupon US Treasury rate during the quarter having a term that most closely resembles the expected term of the option. Expected Term of the Option—The Company estimates the expected life of the option term by analyzing historical stock option exercises. Forfeiture Rates—The Company estimates its forfeiture rate based on historical data with further consideration given to the class of employees to whom the options or shares were granted. The weighted-average per share grant date fair value of options was $12.22 in 2021, $13.21 in 2020 and $8.92 in 2019. The following assumptions were used for determining the fair value of options granted in the three years ended December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ ​ December 31, ​ Black-Scholes Assumptions 2021 2020 2019 Dividend yield 4.6 % 3.4 % 4.5 % Expected volatility 33.4 % 31.5 % 28.3 % Risk-free interest rate 0.6 % 1.1 % 2.5 % Expected life of the option term (in years) 4.2 ​ 4.2 ​ 4.3 ​ ​ Stock option activity under the Company’s Award Plan during the year ended December 31, 2021, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ Options Exercise Price Outstanding at December 31, 2020 159,880 ​ $ 54.09 Granted 76,768 ​ $ 69.54 Cancelled and expired (51,645) ​ $ 68.00 Exercised—intrinsic value $0.9 million; cash received $1.8 million (36,468) ​ $ 50.00 Outstanding at December 31, 2021—$2.4 million intrinsic value and 6.9 years weighted-average remaining contractual term 148,535 ​ $ 58.24 Exercisable at December 31, 2021—$2.1 million intrinsic value and 5.5 years weighted-average remaining contractual term 89,904 ​ $ 50.70 Expected to vest—$2.3 million intrinsic value and 6.6 years weighted-average remaining contractual term 131,701 ​ $ 56.55 ​ A summary of the Company’s non-vested restricted stock awards as of December 31, 2021 and the changes during the year ended December 31, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Grant Date Non-vested awards Shares Fair Value Non-vested at December 31, 2020 1,339,596 ​ $ 55.70 Granted 471,080 ​ $ 64.59 Vested (509,919) ​ $ 49.12 Forfeited (47,436) ​ $ 57.16 Non-vested at December 31, 2021 1,253,321 ​ $ 61.66 ​ The weighted average per share grant date fair value of restricted stock granted was $64.59 in 2021 (0.5 million shares), $75.18 in 2020 (0.5 million shares) and $53.53 in 2019 (0.5 million shares). The fair value was determined using the quoted market price of the Company’s common stock on the date of grant. Valuations were obtained to determine the fair value for the shares granted to the Company’s CEO that are subject to the total shareholder return of the Company’s common stock compared to the total shareholder return of the Nasdaq Telecommunications Index. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ December 31, Additional Award Plan Information – Related to Stock Options & Restricted Stock (thousands) 2021 2020 2019 Equity-based compensation expense ​ $ 26,822 ​ $ 23,525 ​ $ 18,460 Income tax benefit related to stock options and restricted stock ​ 6,314 ​ 4,211 ​ 3,026 Capitalized compensation expense related to stock options and restricted stock ​ 3,222 ​ 2,275 ​ 1,752 Intrinsic value of stock options exercised ​ 881 ​ 841 ​ 839 Fair value of shares of restricted stock vested ​ 35,749 ​ 25,439 ​ 20,779 ​ As of December 31, 2021, there was $39.4 million of total unrecognized compensation cost related to non-vested equity-based compensation awards. That cost is expected to be recognized over a weighted average period of 2.0 years.

Related party transactions_

Related party transactions:	12 Months Ended
	Dec. 31, 2021
Related party transactions:
Related party transactions:	9. Related party transactions: Office lease The Company’s headquarters is located in an office building owned by Sodium LLC whose owner is the Company’s Chief Executive Officer. The fixed annual rent for the headquarters building is $1.0 million per year plus an allocation of taxes and utilities. The lease began in May 2015 and the lease term was for five years . In February 2020 the lease term was extended to May 2025. The lease is cancellable at no cost by the Company upon 60 days ’ notice. The Company’s audit committee reviews and approves all transactions with related parties. The Company paid $1.7 million in 2021, $1.7 million in 2020 and $1.7 million in 2019 for rent and related costs (including taxes and utilities) for this lease.

Geographic information_

Geographic information:	12 Months Ended
	Dec. 31, 2021
Geographic information:
Geographic information	10. Geographic information: Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing the Company’s performance. The Company has one operating segment. Revenues are attributed to regions based on where the services are provided. Below are the Company’s service revenues and long lived assets by geographic region (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2021 On-net Off-net Non-core Total North America ​ $ 340,107 ​ $ 127,383 ​ $ 502 ​ $ 467,992 Europe ​ ​ 87,929 ​ ​ 17,729 ​ ​ 72 ​ ​ 105,730 Asia Pacific ​ 10,197 ​ ​ 1,094 ​ ​ 1 ​ ​ 11,292 South America ​ ​ 4,102 ​ ​ 173 ​ ​ 1 ​ ​ 4,276 Africa ​ ​ 503 ​ ​ 4 ​ ​ — ​ ​ 507 Total ​ $ 442,838 ​ $ 146,383 ​ $ 576 ​ $ 589,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2020 On-net Off-net Non-core Total North America ​ $ 330,924 ​ $ 129,879 ​ $ 474 ​ $ 461,277 Europe ​ 79,568 ​ ​ 17,252 ​ ​ 47 ​ ​ 96,867 Asia Pacific ​ 6,834 ​ ​ 949 ​ ​ — ​ ​ 7,783 South America ​ ​ 2,056 ​ ​ 48 ​ ​ — ​ ​ 2,104 Africa ​ ​ 72 ​ ​ — ​ ​ — ​ ​ 72 Total ​ $ 419,454 ​ $ 148,128 ​ $ 521 ​ $ 568,103 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2019 On-net Off-net Non-core Total North America ​ $ 319,330 ​ $ 131,815 ​ $ 422 ​ $ 451,567 Europe ​ 72,320 ​ ​ 16,323 ​ ​ 53 ​ ​ 88,696 Asia Pacific ​ 4,615 ​ ​ 778 ​ ​ — ​ ​ 5,393 South America ​ ​ 488 ​ ​ 15 ​ ​ — ​ ​ 503 Total ​ $ 396,753 ​ $ 148,931 ​ $ 475 ​ $ 546,159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ 2021 2020 Long lived assets, net ​ ​ ​ ​ ​ ​ North America ​ $ 331,537 ​ $ 306,652 Europe and other ​ 126,355 ​ ​ 123,699 Total ​ $ 457,892 ​ $ 430,351 ​

Quarterly financial information

Quarterly financial information (unaudited):	12 Months Ended
	Dec. 31, 2021
Quarterly financial information (unaudited):
Quarterly financial information (unaudited):	11. Quarterly financial information (unaudited): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, ​ 2021 2021 2021 2021 ​ ​ (in thousands, except share and per share amounts) Service revenue ​ $ 146,777 ​ $ 147,879 ​ $ 147,927 ​ $ 147,208 Network operations, including equity-based compensation expense ​ 57,092 ​ 56,180 ​ 56,645 ​ 56,418 Operating income ​ 26,291 ​ 28,211 ​ 28,556 ​ 36,165 Net income (loss) (1) ​ 18,851 ​ (2,493) ​ 13,320 ​ 18,507 Net income (loss) per common share - basic ​ 0.41 ​ (0.05) ​ 0.29 ​ 0.40 Net income (loss) per common share - diluted ​ 0.41 ​ (0.05) ​ 0.28 ​ 0.39 Weighted-average number of common shares—basic ​ ​ 46,067,096 ​ ​ 46,229,603 ​ ​ 46,293,524 ​ ​ 46,420,168 Weighted-average number of common shares—diluted ​ 46,507,258 ​ 46,229,603 ​ 46,866,929 ​ 46,992,639 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, ​ 2020 2020 2020 2020 ​ ​ (in thousands, except share and per share amounts) Service revenue ​ $ 140,915 ​ $ 140,990 ​ $ 142,302 ​ $ 143,901 Network operations, including equity-based compensation expense ​ 55,921 ​ ​ 53,886 ​ ​ 54,519 ​ ​ 54,829 Operating income ​ 25,850 ​ ​ 27,574 ​ ​ 26,036 ​ ​ 27,384 Net income ( loss) (2) ​ 9,227 ​ ​ 8,564 ​ ​ (6,555) ​ ​ (6,620) Net income (loss) per common share - basic ​ ​ 0.20 ​ ​ 0.19 ​ ​ (0.11) ​ ​ (0.14) Net income (loss) per common share - diluted ​ 0.20 ​ ​ 0.18 ​ ​ (0.11) ​ ​ (0.14) Weighted-average number of common shares—basic ​ ​ 45,658,565 ​ ​ 45,754,880 ​ ​ 45,815,718 ​ ​ 45,904,943 Weighted-average number of common shares—diluted ​ ​ 46,391,066 ​ 46,686,665 ​ 45,815,718 ​ 45,904,943 (1) Included in net income (loss) for the three months ended March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 are unrealized gains (losses) on foreign exchange on the Company’s 2024 Notes of $18.9 million, ($5.3) million, $10.2 million and $8.8 million, respectively. Included in net income (loss) for the three months ended March 31, 2021 and June 30, 2021, are losses on debt extinguishment and redemption on the Company’s 2022 Notes of $3.9 million and $10.8 million, respectively. Included in net income for the three months ended December 31, 2021 is a gain on lease termination of $7.4 million. (2) Included in net income (loss) for the three months ended March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020 are unrealized gains (losses) on foreign exchange on the Company’s 2024 Notes of $2.9 million, ( $3.4 ) million, ( $17.3 ) million and $( 19.2 ) million, respectively. Included in net income for the three months ended June 30, 2020 was a realized gain on foreign exchange on the Company’s 2024 Notes of $2.5 million.

Subsequent Events_

Subsequent Events:	12 Months Ended
	Dec. 31, 2021
Subsequent Events:
Subsequent Events:	12. Subsequent Events: Dividend On February 23, 2022, the Company’s Board of Directors approved the payment of a quarterly dividend of $0.855 per common share. The dividend for the first quarter of 2022 will be paid to holders of record on March 11, 2022. This estimated $39.7 million dividend payment is expected to be made on March 25, 2022.

Schedule II VALUATION AND QUALI

Schedule II VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2021
Schedule II VALUATION AND QUALIFYING ACCOUNTS
Schedule II VALUATION AND QUALIFYING ACCOUNTS	Schedule II COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (in thousands ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Charged to ​ ​ ​ ​ Balance at ​ ​ Beginning of ​ Costs and ​ ​ ​ ​ End of Description Period Expenses (Deductions) Period Deferred tax valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, 2019 $ 126,579 ​ $ 5,785 ​ $ (1,295) ​ $ 131,069 Year ended December 31, 2020 $ 131,069 ​ $ 20,599 ​ $ (1,079) ​ $ 150,589 Year ended December 31, 2021 $ 150,589 ​ $ 4,918 ​ $ (22,707) ​ $ 132,800 ​

Description of the business a_2

Description of the business and recent developments: (Policies)	12 Months Ended
	Dec. 31, 2021
Description of the business and recent developments:
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.
Financial instruments	Financial instruments The Company considers all highly liquid investments with an original maturity of three months or less at purchase to be cash equivalents. The Company determines the appropriate classification of its investments at the time of purchase and evaluates such designation at each balance sheet date. At December 31, 2021 and December 31, 2020, the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, prepaid and other current assets, accounts payable, and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents and restricted cash at amortized cost, which approximates fair value based upon quoted market prices (Level 1). Based upon recent trading prices (Level 2—market approach) at December 31, 2021 the fair value of the Company’s $500.0 million senior secured notes due 2026 was $508.1 million, the fair value of the Company’s €350.0 million ($397.0 million) senior unsecured notes due 2024 was $402.0 million and the estimated fair value of the Company’s interest rate swap agreement was $9.0 million. Restricted cash and interest rate swap agreement Restricted cash represents amounts held in segregated bank accounts by our clearing broker as margin in support of our interest rate swap agreement as discussed in Note 4 and was $9.0 million as of December 31, 2021. Additional cash may be further restricted to maintain our interest rate swap instrument as interest rates fluctuate and margin requirements change. The Company does not use derivative financial instruments for trading purposes.
Gross receipts taxes, universal service fund and other surcharges	Gross receipts taxes, universal service fund and other surcharges Revenue recognition standards include guidance relating to taxes or surcharges assessed by a governmental authority that are directly imposed on a revenue-producing transaction between a seller and a customer and may include, but are not limited to, gross receipts taxes, excise taxes, Universal Service Fund fees and certain state regulatory fees. Such charges may be presented gross or net based upon the Company’s accounting policy election. The Company records certain excise taxes and surcharges on a gross basis and includes them in its revenues and costs of network operations. Excise taxes and surcharges billed to customers and recorded on a gross basis (as service revenue and network operations expense) were $18.5 million, $15.1 million, and $14.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Basic and diluted net income per common share	Basic and diluted net income per common share Basic earnings per share (“EPS”) excludes dilution for common stock equivalents and is computed by dividing net income or (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock outstanding during each period, adjusted for the effect of dilutive common stock equivalents. Shares of restricted stock are included in the computation of basic EPS as they vest and are included in diluted EPS, to the extent they are dilutive, determined using the treasury stock method. The following details the determination of the diluted weighted average shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ Year Ended ​ Year Ended ​ ​ ​ December 31, ​ December 31, ​ December 31, ​ ​ 2021 2020 2019 ​ Weighted average common shares—basic ​ 46,419,180 45,947,772 ​ 45,542,315 ​ Dilutive effect of stock options ​ 34,007 80,849 ​ 32,222 ​ Dilutive effect of restricted stock ​ 510,733 639,577 ​ 505,858 ​ Weighted average common shares—diluted ​ 46,963,920 46,668,198 ​ 46,080,395 ​ ​ The following details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, December 31, December 31, ​ 2021 ​ 2020 ​ 2019 ​ Unvested shares of restricted common stock ​ 1,253,321 ​ 1,339,596 ​ 1,283,281 ​ Anti-dilutive options for common stock ​ 45,809 ​ 32,324 ​ 39,608 ​ Anti-dilutive shares of restricted common stock ​ 86,619 ​ 223,118 ​ 348 ​
Revenue recognition	Revenue recognition The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers The Company’s service offerings consist of on-net and off-net telecommunications services. Fixed fees are billed monthly in advance and usage fees are billed monthly in arrears. Amounts billed are due upon receipt and contract lengths range from month to month to 60 months. The Company satisfies its performance obligations to provide services to customers over time as the services are rendered. In accordance with ASC 606, revenue is recognized when a customer obtains the promised service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company has adopted the practical expedient related to certain performance obligation disclosures since it has a right to consideration from its customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. To achieve this core principle, the Company follows the following five steps: 1) Identification of the contract, or contracts with a customer 2) Identification of the performance obligations in the contract 3) Determination of the transaction price 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Fees billed in connection with customer installations are deferred (as deferred revenue) and recognized as noted above. To the extent a customer contract is terminated prior to its contractual end the customer is subject to termination fees. The Company vigorously seeks payment of termination fees. The Company recognizes revenue for termination fees as they are collected. Service revenue recognized from amounts in deferred revenue (contract liabilities) at the beginning of the period during the years ended December 31, 2021, 2020 and 2019 was $4.6 million, $4.4 million and $4.4 million, respectively. Amortization expense for contract costs for the years ended December 31, 2021, 2020 and 2019 was $18.4 million, $17.1 million and $17.3 million, respectively.
Leases	Leases In February 2016, the FASB issued ASU No. 2016-02, Leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ​ ​ Year ​ ​ ​ ​ Ended ​ ​ Ended ​ ​ December 31, 2021 December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost amortization of right-of-use assets ​ $ 26,424 ​ $ 22,850 ​ Interest expense on finance lease liabilities ​ ​ 19,419 ​ ​ 18,892 ​ Operating lease cost ​ ​ 18,382 ​ ​ 17,362 ​ Total lease costs ​ ​ 64,225 ​ ​ 59,104 ​ Other lease information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ Operating cash flows from finance leases ​ ​ (17,366) ​ ​ (19,121) ​ Operating cash flows from operating leases ​ ​ (20,194) ​ ​ (18,664) ​ Financing cash flows from finance leases ​ ​ (23,054) ​ ​ (23,990) ​ Right-of-use assets obtained in exchange for new finance lease liabilities ​ ​ 50,831 ​ ​ 71,622 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 17,853 ​ ​ 35,659 ​ Weighted-average remaining lease term — finance leases (in years) ​ ​ 12.6 ​ ​ 12.4 ​ Weighted-average remaining lease term — operating leases (in years) ​ ​ 18.7 ​ ​ 20.2 ​ Weighted average discount rate — finance leases ​ ​ 9.0 % ​ 10.3 % Weighted average discount rate — operating leases ​ ​ 5.4 % ​ 5.6 % ​ Finance leases—fiber lease agreements The Company has entered into lease agreements with numerous providers of dark fiber under indefeasible-right-of-use agreements (“IRUs”). These IRUs typically have initial terms of 15-20 years and include renewal options after the initial lease term. The Company establishes the number of renewal option periods used in determining the lease term based upon its assessment at the inception of the lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the dark fiber provider and the Company. Once the Company has accepted the related fiber route, leases that meet the criteria for treatment as finance leases are recorded as a finance lease obligation and an IRU asset. The interest rate used in determining the present value of the aggregate future minimum lease payments is the Company’s incremental borrowing rate for the reasonably certain lease term. The determination of the Company’s incremental borrowing rate requires some judgment. Finance lease assets are included in property and equipment in the Company’s consolidated balance sheets. As of December 31, 2021, the Company had committed to additional dark fiber IRU lease agreements totaling $24.7 million in future payments to be paid over periods of up to 20 years. These obligations begin when the related fiber is accepted, which is generally expected to occur in the next 12 months. Operating leases The Company leases office space and certain data center facilities under operating leases. In certain cases the Company also enters into short-term operating leases for dark fiber. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates within the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires some judgment. The Company determines its incremental borrowing rate for each lease using its current borrowing rate, adjusted for various factors including level of collateralization and term to align with the term of the lease. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal option periods used in determining the operating lease term based upon its assessment at the inception of the operating lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the landlord or dark fiber provider and the Company. Once the Company has accepted the related fiber route or the facility lease term has begun, the present value of the aggregate future minimum operating lease payments is recorded as an operating lease liability and a right-of-use leased asset. Lease incentives and deferred rent liabilities for facilities operating leases are presented with the right-of-use leased asset. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Finance For the twelve months ending December 31, ​ Leases ​ Leases 2022 $ 17,680 ​ $ 36,211 2023 ​ ​ 18,359 ​ ​ 35,417 2024 ​ ​ 17,057 ​ ​ 35,766 2025 ​ ​ 14,562 ​ ​ 30,519 2026 ​ ​ 12,585 ​ ​ 27,970 Thereafter ​ ​ 111,463 ​ ​ 252,880 Total minimum lease obligations ​ ​ 191,706 ​ ​ 418,763 Less—amounts representing interest ​ ​ (67,715) ​ ​ (172,893) Present value of minimum lease obligations ​ ​ 123,991 ​ ​ 245,870 Current maturities ​ ​ (12,197) ​ ​ (17,048) Lease obligations, net of current maturities ​ $ 111,794 ​ $ 228,822 ​
Allowance for credit losses	Allowance for credit losses The Company establishes an allowance for credit losses and other sales credit adjustments related to its trade receivables. Trade receivables are recorded at the invoiced amount and can bear interest. Allowances for sales credits are established through a reduction of revenue, while allowances for credit losses are established through a charge to selling, general, and administrative expenses as bad debt expense. The Company assesses the adequacy of these reserves by evaluating factors, such as the length of time individual receivables are past due, historical collection experience, and changes in the credit worthiness of its customers. The Company also assesses the ability of specific customers to meet their financial obligations and establishes specific allowances related to these customers. If circumstances relating to specific customers change or economic conditions change such that the Company’s past collection experience and assessment of the economic environment are no longer appropriate, the Company’s estimate of the recoverability of its trade receivables could be impacted. Accounts receivable balances are written-off against the allowance for credit losses after all means of internal collection activities have been exhausted and the potential for recovery is considered remote. The Company uses third-party collection services to continue to seek collection for it’s written off accounts receivable.
Principles of consolidation	Principles of consolidation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles and include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Recent accounting pronouncements-adopted	Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current-period ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Provision for ​ Write offs ​ Balance at ​ Beginning Expected Credit Charged Against End of Description of Period Losses Allowance Period Allowance for credit losses (deducted from accounts receivable) ​ ​ ​ ​ ​ ​ ​ ​ Year ending December 31, 2021 $ 1,921 ​ $ 5,595 ​ $ (6,006) ​ $ 1,510 Year ending December 31, 2020 $ 1,771 ​ $ 4,997 ​ $ (4,847) ​ $ 1,921 Year ending December 31, 2019 $ 1,263 ​ $ 6,190 ​ $ (5,682) ​ $ 1,771 ​ The current-period provision for expected credit losses is net of bad debt recoveries of $2.2 million, $1.2 million and $1.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Network operations	Network operations Network operations expenses include the costs of personnel and related operating expenses associated with service delivery, network management, and customer support, network facilities costs, fiber and equipment maintenance fees, leased circuit costs, access fees paid to building owners and certain excise taxes and surcharges recorded on a gross basis. The Company estimates its accruals for any disputed leased circuit obligations based upon the nature and age of the dispute. Network operations costs are impacted by the timing and amounts of disputed circuit costs. The Company generally records these disputed amounts when billed by the vendor and reverses these amounts when the vendor credit has been received or the dispute has otherwise been resolved. The Company does not allocate depreciation and amortization expense to its network operations expense.
Foreign currency translation adjustment and comprehensive income	Foreign currency translation adjustment and comprehensive income The consolidated financial statements of the Company’s non-US operations are translated into US dollars using the period-end foreign currency exchange rates for assets and liabilities and the average foreign currency exchange rates for revenues and expenses. Gains and losses on translation of the accounts are accumulated and reported as a component of other comprehensive income in stockholders’ equity. The Company’s only components of “other comprehensive income” are currency translation adjustments for all periods presented. The Company considers the majority of its investments in its foreign subsidiaries to be long-term in nature. The Company’s foreign exchange transaction gains (losses) are included within interest income and other on the consolidated statements of comprehensive income.
Concentrations of credit risk	Concentrations of credit risk The Company’s assets that are exposed to credit risk consist of its cash and cash equivalents, other assets and accounts receivable. As of December 31, 2021 and 2020, the Company’s cash equivalents were invested in demand deposit accounts, overnight investments and money market funds. The Company places its cash equivalents in instruments that meet high-quality credit standards as specified in the Company’s investment policy guidelines. Accounts receivable are due from customers located in major metropolitan areas in the United States, Europe, Canada, Mexico, Asia, South America, Australia and Africa. Receivables from the Company’s net-centric (wholesale) customers are generally subject to a higher degree of credit risk than the Company’s corporate customers. The Company relies upon an equipment vendor for the majority of its network equipment and is also dependent upon many third-party fiber providers for providing its services to its customers.
Property and equipment	Property and equipment Property and equipment are recorded at cost and depreciated once deployed using the straight-line method over the estimated useful lives of the assets. Useful lives are determined based on historical usage with consideration given to technological changes and trends in the industry that could impact the asset utilization. System infrastructure costs include the capitalized compensation costs of employees directly involved with construction activities and costs incurred by third-party contractors. Assets and liabilities under finance leases are recorded at the lesser of the present value of the aggregate future minimum lease payments or the fair value of the assets under lease. Leasehold improvements include costs associated with building improvements and customer installation costs. The Company determines the number of renewal option periods, if any, included in the lease term for purposes of amortizing leasehold improvements and the lease term of its finance leases based upon its assessment at the inception of the lease for which the failure to renew the lease imposes a penalty on the Company in such amount that a renewal appears to be reasonably assured. Expenditures for maintenance and repairs are expensed as incurred. Depreciation and amortization periods are as follows: ​ ​ ​ ​ Type of asset Depreciation or amortization period Indefeasible rights of use (IRUs) Shorter of useful life or the IRU lease agreement; generally 15 to 20 years Network equipment 3 to 8 years Leasehold improvements Shorter of lease term, including reasonably assured renewal periods, or useful life Software 5 years Owned buildings 40 years Office and other equipment 3 to 7 years System infrastructure 5 to 10 years
Long-lived assets	Long-lived assets The Company’s long-lived assets include property and equipment. These long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment is determined by comparing the carrying value of these long-lived assets to management’s probability weighted estimate of the future undiscounted cash flows expected to result from the use of the assets. In the event an impairment exists, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset, which would be determined by using quoted market prices or valuation techniques such as the discounted present value of expected future cash flows, appraisals, or other pricing models. In the event there are changes in the planned use of the Company’s long-term assets or the Company’s expected future undiscounted cash flows are reduced significantly, the Company’s assessment of its ability to recover the carrying value of these assets could change.
Equity-based compensation	Equity-based compensation The Company recognizes compensation expense for its share-based payments granted to its employees based on their grant date fair values with the expense being recognized on a straight-line basis over the requisite service period. The Company begins recording equity-based compensation expense related to performance awards when it is considered probable that the performance conditions will be met and for market-based awards compensation cost is recognized if the service condition is satisfied even if the market condition is not satisfied. Equity-based compensation expense is recognized in the statement of operations in a manner consistent with the classification of the employee’s salary and other compensation.
Income taxes	Income taxes The Company’s deferred tax assets or liabilities are computed based upon the differences between financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate. Deferred income tax expenses or benefits are based upon the changes in the assets or liability from period to period. At each balance sheet date, the Company assesses the likelihood that it will be able to realize its deferred tax assets. Valuation allowances are established when management determines that it is “more likely than not” that some portion or all of the deferred tax asset may not be realized. The Company considers all available positive and negative evidence in assessing the need for a valuation allowance including its historical operating results, ongoing tax planning, and forecasts of future taxable income, on a jurisdiction by jurisdiction basis. The Company reduces its valuation allowance if the Company concludes that it is “more likely than not” that it would be able to realize its deferred tax assets. Management determines whether a tax position is more likely than not to be sustained upon examination based on the technical merits of the position. Once it is determined that a position meets this recognition threshold, the position is measured to determine the amount of benefit to be recognized in the financial statements. The Company adjusts its estimated liabilities for uncertain tax positions periodically because of ongoing examinations by, and settlements with, the various taxing authorities, as well as changes in tax laws, regulations and interpretations. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of its income tax expense.

Description of the business a_3

Description of the business and recent developments: (Tables)	12 Months Ended
	Dec. 31, 2021
Description of the business and recent developments:
Schedule of diluted weighted average shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ Year Ended ​ Year Ended ​ ​ ​ December 31, ​ December 31, ​ December 31, ​ ​ 2021 2020 2019 ​ Weighted average common shares—basic ​ 46,419,180 45,947,772 ​ 45,542,315 ​ Dilutive effect of stock options ​ 34,007 80,849 ​ 32,222 ​ Dilutive effect of restricted stock ​ 510,733 639,577 ​ 505,858 ​ Weighted average common shares—diluted ​ 46,963,920 46,668,198 ​ 46,080,395 ​ ​
Schedule of unvested and anti-dilutive shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, December 31, December 31, ​ 2021 ​ 2020 ​ 2019 ​ Unvested shares of restricted common stock ​ 1,253,321 ​ 1,339,596 ​ 1,283,281 ​ Anti-dilutive options for common stock ​ 45,809 ​ 32,324 ​ 39,608 ​ Anti-dilutive shares of restricted common stock ​ 86,619 ​ 223,118 ​ 348 ​
Schedule of lease cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ​ ​ Year ​ ​ ​ ​ Ended ​ ​ Ended ​ ​ December 31, 2021 December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost amortization of right-of-use assets ​ $ 26,424 ​ $ 22,850 ​ Interest expense on finance lease liabilities ​ ​ 19,419 ​ ​ 18,892 ​ Operating lease cost ​ ​ 18,382 ​ ​ 17,362 ​ Total lease costs ​ ​ 64,225 ​ ​ 59,104 ​ Other lease information ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ ​ Operating cash flows from finance leases ​ ​ (17,366) ​ ​ (19,121) ​ Operating cash flows from operating leases ​ ​ (20,194) ​ ​ (18,664) ​ Financing cash flows from finance leases ​ ​ (23,054) ​ ​ (23,990) ​ Right-of-use assets obtained in exchange for new finance lease liabilities ​ ​ 50,831 ​ ​ 71,622 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 17,853 ​ ​ 35,659 ​ Weighted-average remaining lease term — finance leases (in years) ​ ​ 12.6 ​ ​ 12.4 ​ Weighted-average remaining lease term — operating leases (in years) ​ ​ 18.7 ​ ​ 20.2 ​ Weighted average discount rate — finance leases ​ ​ 9.0 % ​ 10.3 % Weighted average discount rate — operating leases ​ ​ 5.4 % ​ 5.6 % ​
Schedule of future minimum payments under operating lease agreements	The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Finance For the twelve months ending December 31, ​ Leases ​ Leases 2022 $ 17,680 ​ $ 36,211 2023 ​ ​ 18,359 ​ ​ 35,417 2024 ​ ​ 17,057 ​ ​ 35,766 2025 ​ ​ 14,562 ​ ​ 30,519 2026 ​ ​ 12,585 ​ ​ 27,970 Thereafter ​ ​ 111,463 ​ ​ 252,880 Total minimum lease obligations ​ ​ 191,706 ​ ​ 418,763 Less—amounts representing interest ​ ​ (67,715) ​ ​ (172,893) Present value of minimum lease obligations ​ ​ 123,991 ​ ​ 245,870 Current maturities ​ ​ (12,197) ​ ​ (17,048) Lease obligations, net of current maturities ​ $ 111,794 ​ $ 228,822
Schedule of impact on financial statement line items from adopting ASC 326	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current-period ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ Provision for ​ Write offs ​ Balance at ​ Beginning Expected Credit Charged Against End of Description of Period Losses Allowance Period Allowance for credit losses (deducted from accounts receivable) ​ ​ ​ ​ ​ ​ ​ ​ Year ending December 31, 2021 $ 1,921 ​ $ 5,595 ​ $ (6,006) ​ $ 1,510 Year ending December 31, 2020 $ 1,771 ​ $ 4,997 ​ $ (4,847) ​ $ 1,921 Year ending December 31, 2019 $ 1,263 ​ $ 6,190 ​ $ (5,682) ​ $ 1,771
Schedule of depreciation and amortization periods	​ ​ ​ ​ Type of asset Depreciation or amortization period Indefeasible rights of use (IRUs) Shorter of useful life or the IRU lease agreement; generally 15 to 20 years Network equipment 3 to 8 years Leasehold improvements Shorter of lease term, including reasonably assured renewal periods, or useful life Software 5 years Owned buildings 40 years Office and other equipment 3 to 7 years System infrastructure 5 to 10 years

Property and equipment_ (Tables

Property and equipment: (Tables)	12 Months Ended
	Dec. 31, 2021
Property and equipment:
Schedule of property and equipment	Property and equipment consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2021 2020 Owned assets: ​ ​ ​ ​ ​ ​ Network equipment ​ $ 650,634 ​ $ 611,265 Leasehold improvements ​ 250,623 ​ ​ 241,379 System infrastructure ​ 160,376 ​ ​ 148,533 Software ​ 11,028 ​ ​ 10,609 Office and other equipment ​ 20,999 ​ ​ 19,611 Building ​ 1,273 ​ ​ 1,376 Land ​ 107 ​ ​ 116 ​ ​ 1,095,040 ​ ​ 1,032,889 Less—Accumulated depreciation and amortization ​ (912,579) ​ ​ (856,859) ​ ​ 182,461 ​ ​ 176,030 Assets under finance leases: ​ ​ ​ ​ ​ ​ IRUs ​ 524,475 ​ ​ 482,978 Less—Accumulated depreciation and amortization ​ (249,056) ​ ​ (228,673) ​ ​ 275,419 ​ ​ 254,305 Property and equipment, net ​ $ 457,880 ​ $ 430,335

Accrued and other liabilities_

Accrued and other liabilities: (Tables)	12 Months Ended
	Dec. 31, 2021
Accrued and other liabilities:
Schedule of accrued and other current liabilities	Accrued and other current liabilities consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2021 2020 Operating accruals ​ $ 16,360 ​ $ 24,168 Deferred revenue—current portion ​ 4,894 ​ ​ 4,651 Payroll and benefits ​ 8,466 ​ ​ 8,024 Taxes—non-income based ​ 4,291 ​ ​ 5,918 Interest ​ 5,046 ​ ​ 8,268 Total ​ $ 39,057 ​ $ 51,029

Long-term debt_ (Tables)

Long-term debt: (Tables)	12 Months Ended
	Dec. 31, 2021
Long-term debt:
Schedule of aggregate future contractual maturities of long-term debt	The aggregate future contractual maturities of long-term debt were as follows as of December 31, 2021 (in thousands): ​ ​ ​ ​ ​ For the year ending December 31, ​ ​ 2022 ​ $ 791 2023 ​ — 2024 ​ 397,005 2025 ​ — 2026 ​ 500,000 Thereafter ​ — Total ​ $ 897,796

Income taxes_ (Tables)

Income taxes: (Tables)	12 Months Ended
	Dec. 31, 2021
Income taxes:
Schedule of components of (loss) income before income taxes	The components of income before income taxes consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2021 2020 2019 Domestic ​ $ 73,753 ​ $ 23,808 ​ $ 72,773 Foreign ​ (2,333) ​ ​ (13,496) ​ ​ (20,099) Total income before income taxes ​ $ 71,420 ​ $ 10,312 ​ $ 52,674
Schedule of income tax expense	The income tax expense is comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2021 2020 2019 Current: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ $ — ​ $ 32 ​ $ — State ​ (3,116) ​ (2,908) ​ (2,647) Foreign ​ (1,833) ​ (947) ​ (370) Deferred: ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal ​ (17,959) ​ (1,867) ​ (10,899) State ​ (2,348) ​ 1,241 ​ (1,285) Foreign ​ 2,021 ​ 353 ​ 47 Total income tax expense ​ $ (23,235) ​ $ (4,096) ​ $ (15,154)
Schedule of net deferred tax assets	Our consolidated temporary differences comprising our net deferred tax assets are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2021 2020 Deferred Tax Assets: ​ ​ ​ ​ ​ ​ Net operating loss carry-forwards ​ $ 246,276 ​ $ 273,999 Tax credits ​ 2,119 ​ ​ 1,965 Equity-based compensation ​ ​ 3,976 ​ ​ 4,901 Operating leases ​ ​ 40,627 ​ ​ 40,081 Total gross deferred tax assets ​ 292,998 ​ ​ 320,946 Valuation allowance ​ ​ (132,800) ​ ​ (150,589) ​ ​ ​ 160,198 ​ ​ 170,357 Deferred Tax Liabilities: ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 46,642 ​ ​ 37,364 Accrued liabilities and other ​ 103,705 ​ ​ 105,554 Right-of-use assets ​ ​ 37,784 ​ ​ 37,097 Gross deferred tax liabilities ​ 188,131 ​ ​ 180,015 Net deferred tax liabilities ​ $ 27,933 ​ $ 9,658
Schedule of reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements	The following is a reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2021 2020 2019 Federal income tax expense at statutory rates ​ $ (14,999) ​ $ (2,166) ​ $ (11,061) Effect of: ​ ​ ​ ​ ​ ​ ​ ​ ​ State income taxes, net of federal benefit ​ (4,123) ​ ​ (1,091) ​ ​ (2,973) Impact of foreign operations ​ 715 ​ ​ (365) ​ ​ (505) Non-deductible expenses ​ (1,365) ​ ​ (411) ​ ​ (491) Tax effect of TCJA from foreign earnings ​ (389) ​ ​ (66) ​ ​ (28) Other ​ — ​ ​ 32 ​ ​ (32) Changes in valuation allowance ​ (3,074) ​ ​ (29) ​ ​ (64) Income tax expense ​ $ (23,235) ​ $ (4,096) ​ $ (15,154)

Commitments and contingencies_

Commitments and contingencies: (Tables)	12 Months Ended
	Dec. 31, 2021
Commitments and contingencies:
Schedule of future minimum annual payments under operating leases, other facility leases and building access agreements	The Company enters into leases for network equipment sites and for space in data center facilities. Future minimum annual payments under these arrangements are as follows (in thousands): ​ ​ ​ ​ ​ For the year ending December 31, ​ ​ 2022 ​ $ 24,740 2023 ​ 12,225 2024 ​ 8,450 2025 ​ 6,112 2026 ​ 4,711 Thereafter ​ 1,872 ​ ​ $ 58,110

Stock option and award plan_ (T

Stock option and award plan: (Tables)	12 Months Ended
	Dec. 31, 2021
Stock option and award plan:
Schedule of assumptions used for determining the fair value of options granted	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ ​ December 31, ​ Black-Scholes Assumptions 2021 2020 2019 Dividend yield 4.6 % 3.4 % 4.5 % Expected volatility 33.4 % 31.5 % 28.3 % Risk-free interest rate 0.6 % 1.1 % 2.5 % Expected life of the option term (in years) 4.2 ​ 4.2 ​ 4.3 ​
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-Average ​ Options Exercise Price Outstanding at December 31, 2020 159,880 ​ $ 54.09 Granted 76,768 ​ $ 69.54 Cancelled and expired (51,645) ​ $ 68.00 Exercised—intrinsic value $0.9 million; cash received $1.8 million (36,468) ​ $ 50.00 Outstanding at December 31, 2021—$2.4 million intrinsic value and 6.9 years weighted-average remaining contractual term 148,535 ​ $ 58.24 Exercisable at December 31, 2021—$2.1 million intrinsic value and 5.5 years weighted-average remaining contractual term 89,904 ​ $ 50.70 Expected to vest—$2.3 million intrinsic value and 6.6 years weighted-average remaining contractual term 131,701 ​ $ 56.55
Schedule of non-vested restricted stock awards	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average ​ ​ ​ ​ Grant Date Non-vested awards Shares Fair Value Non-vested at December 31, 2020 1,339,596 ​ $ 55.70 Granted 471,080 ​ $ 64.59 Vested (509,919) ​ $ 49.12 Forfeited (47,436) ​ $ 57.16 Non-vested at December 31, 2021 1,253,321 ​ $ 61.66 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ December 31, Additional Award Plan Information – Related to Stock Options & Restricted Stock (thousands) 2021 2020 2019 Equity-based compensation expense ​ $ 26,822 ​ $ 23,525 ​ $ 18,460 Income tax benefit related to stock options and restricted stock ​ 6,314 ​ 4,211 ​ 3,026 Capitalized compensation expense related to stock options and restricted stock ​ 3,222 ​ 2,275 ​ 1,752 Intrinsic value of stock options exercised ​ 881 ​ 841 ​ 839 Fair value of shares of restricted stock vested ​ 35,749 ​ 25,439 ​ 20,779

Geographic information_ (Tables

Geographic information: (Tables)	12 Months Ended
	Dec. 31, 2021
Geographic information:
Schedule of service revenue by geographic region and product class and long lived assets by geographic region	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2021 On-net Off-net Non-core Total North America ​ $ 340,107 ​ $ 127,383 ​ $ 502 ​ $ 467,992 Europe ​ ​ 87,929 ​ ​ 17,729 ​ ​ 72 ​ ​ 105,730 Asia Pacific ​ 10,197 ​ ​ 1,094 ​ ​ 1 ​ ​ 11,292 South America ​ ​ 4,102 ​ ​ 173 ​ ​ 1 ​ ​ 4,276 Africa ​ ​ 503 ​ ​ 4 ​ ​ — ​ ​ 507 Total ​ $ 442,838 ​ $ 146,383 ​ $ 576 ​ $ 589,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2020 On-net Off-net Non-core Total North America ​ $ 330,924 ​ $ 129,879 ​ $ 474 ​ $ 461,277 Europe ​ 79,568 ​ ​ 17,252 ​ ​ 47 ​ ​ 96,867 Asia Pacific ​ 6,834 ​ ​ 949 ​ ​ — ​ ​ 7,783 South America ​ ​ 2,056 ​ ​ 48 ​ ​ — ​ ​ 2,104 Africa ​ ​ 72 ​ ​ — ​ ​ — ​ ​ 72 Total ​ $ 419,454 ​ $ 148,128 ​ $ 521 ​ $ 568,103 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2019 On-net Off-net Non-core Total North America ​ $ 319,330 ​ $ 131,815 ​ $ 422 ​ $ 451,567 Europe ​ 72,320 ​ ​ 16,323 ​ ​ 53 ​ ​ 88,696 Asia Pacific ​ 4,615 ​ ​ 778 ​ ​ — ​ ​ 5,393 South America ​ ​ 488 ​ ​ 15 ​ ​ — ​ ​ 503 Total ​ $ 396,753 ​ $ 148,931 ​ $ 475 ​ $ 546,159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ 2021 2020 Long lived assets, net ​ ​ ​ ​ ​ ​ North America ​ $ 331,537 ​ $ 306,652 Europe and other ​ 126,355 ​ ​ 123,699 Total ​ $ 457,892 ​ $ 430,351

Quarterly financial informati_2

Quarterly financial information (unaudited): (Tables)	12 Months Ended
	Dec. 31, 2021
Quarterly financial information (unaudited):
Schedule of quarterly financial information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, ​ 2021 2021 2021 2021 ​ ​ (in thousands, except share and per share amounts) Service revenue ​ $ 146,777 ​ $ 147,879 ​ $ 147,927 ​ $ 147,208 Network operations, including equity-based compensation expense ​ 57,092 ​ 56,180 ​ 56,645 ​ 56,418 Operating income ​ 26,291 ​ 28,211 ​ 28,556 ​ 36,165 Net income (loss) (1) ​ 18,851 ​ (2,493) ​ 13,320 ​ 18,507 Net income (loss) per common share - basic ​ 0.41 ​ (0.05) ​ 0.29 ​ 0.40 Net income (loss) per common share - diluted ​ 0.41 ​ (0.05) ​ 0.28 ​ 0.39 Weighted-average number of common shares—basic ​ ​ 46,067,096 ​ ​ 46,229,603 ​ ​ 46,293,524 ​ ​ 46,420,168 Weighted-average number of common shares—diluted ​ 46,507,258 ​ 46,229,603 ​ 46,866,929 ​ 46,992,639 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ June 30, ​ September 30, ​ December 31, ​ 2020 2020 2020 2020 ​ ​ (in thousands, except share and per share amounts) Service revenue ​ $ 140,915 ​ $ 140,990 ​ $ 142,302 ​ $ 143,901 Network operations, including equity-based compensation expense ​ 55,921 ​ ​ 53,886 ​ ​ 54,519 ​ ​ 54,829 Operating income ​ 25,850 ​ ​ 27,574 ​ ​ 26,036 ​ ​ 27,384 Net income ( loss) (2) ​ 9,227 ​ ​ 8,564 ​ ​ (6,555) ​ ​ (6,620) Net income (loss) per common share - basic ​ ​ 0.20 ​ ​ 0.19 ​ ​ (0.11) ​ ​ (0.14) Net income (loss) per common share - diluted ​ 0.20 ​ ​ 0.18 ​ ​ (0.11) ​ ​ (0.14) Weighted-average number of common shares—basic ​ ​ 45,658,565 ​ ​ 45,754,880 ​ ​ 45,815,718 ​ ​ 45,904,943 Weighted-average number of common shares—diluted ​ ​ 46,391,066 ​ 46,686,665 ​ 45,815,718 ​ 45,904,943 (1) Included in net income (loss) for the three months ended March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 are unrealized gains (losses) on foreign exchange on the Company’s 2024 Notes of $18.9 million, ($5.3) million, $10.2 million and $8.8 million, respectively. Included in net income (loss) for the three months ended March 31, 2021 and June 30, 2021, are losses on debt extinguishment and redemption on the Company’s 2022 Notes of $3.9 million and $10.8 million, respectively. Included in net income for the three months ended December 31, 2021 is a gain on lease termination of $7.4 million. (2) Included in net income (loss) for the three months ended March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020 are unrealized gains (losses) on foreign exchange on the Company’s 2024 Notes of $2.9 million, ( $3.4 ) million, ( $17.3 ) million and $( 19.2 ) million, respectively. Included in net income for the three months ended June 30, 2020 was a realized gain on foreign exchange on the Company’s 2024 Notes of $2.5 million.

Description of the business a_4

Description of the business and recent developments: (Details)	12 Months Ended
	Dec. 31, 2021countryMBGB
Number of countries entity operates | country	50
Minimum
On-net service speed range | MB	100
Maximum
On-net service speed range | GB	400

Description of the business a_5

Description of the business and recent developments: Allowance for credit losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Description of the business and recent developments:
Balance at Beginning of Period	$ 1,921	$ 1,771	$ 1,263
Current-period Provision for Expected Credit Losses	5,595	4,997	6,190
Write offs Charged Against Allowance	(6,006)	(4,847)	(5,682)
Balance at End of Period	1,510	1,921	1,771
Bad debt recoveries	$ 2,200	$ 1,200	$ 1,900

Description of the business a_6

Description of the business and recent developments: Recent Accounting Pronouncements - to be adopted (Details) $ in Millions	Jan. 01, 2019USD ($)
Description of the business and recent developments:
Asset and lease liability	$ 97.3

Description of the business a_7

Description of the business and recent developments: Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finance leases-fiber lease agreements
Additional finance lease future payments due	$ 24,700
Cash paid for amounts included in the measurement of lease liabilities
Finance lease cost, Amortization of right-of-use assets	26,424	$ 22,850
Interest expense on finance lease liabilities	19,419	18,892
Operating lease cost	18,382	17,362
Total lease costs	64,225	59,104
Operating cash flows from finance leases	(17,366)	(19,121)
Operating cash flows from operating leases	(20,194)	(18,664)
Financing cash flows from finance leases	(23,054)	(23,990)	$ (9,097)
Right-of-use assets obtained in exchange for new finance lease liabilities	50,831	71,622
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 17,853	$ 35,659
Weighted-average remaining lease term - finance leases (in years)	12 years 7 months 6 days	12 years 4 months 24 days
Weighted-average remaining lease term - operating leases (in years)	18 years 8 months 12 days	20 years 2 months 12 days
Weighted average discount rate - finance leases	9.00%	10.30%
Weighted average discount rate - operating leases	5.40%	5.60%
Future minimum payments (principal and interest) under these finance leases
2022	$ 36,211
2023	35,417
2024	35,766
2025	30,519
2026	27,970
Thereafter	252,880
Total minimum lease obligations	418,763
Less-amounts representing interest	(172,893)
Present value of minimum lease obligations	245,870
Current maturities	(17,048)	$ (15,702)
Finance lease obligations, net of current maturities	228,822	203,438
Future minimum payments under these operating lease agreements
2022	17,680
2023	18,359
2024	17,057
2025	14,562
2026	12,585
Thereafter	111,463
Total minimum lease obligations	191,706
Less-amounts representing interest	(67,715)
Present value of minimum lease obligations	123,991
Current maturities	(12,197)	(11,151)
Lease obligations, net of current maturities	$ 111,794	$ 111,318
Minimum
Finance leases-fiber lease agreements
Initial terms	15 years
Maximum
Finance leases-fiber lease agreements
Initial terms	20 years

Description of the business a_8

Description of the business and recent developments: Revenue recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Recent accounting pronouncements- adopted
Maximum contract lengths for billing due upon receipts (in months)	60 months
Contract costs	$ 21.4	$ 20.6
ASU 2014-09
Recent accounting pronouncements- adopted
Service revenue recognized	4.6	4.4	$ 4.4
Amortization expense for contract costs	$ 18.4	$ 17.1	$ 17.3

Description of the business a_9

Description of the business and recent developments: Gross receipts taxes, universal service fund and other surcharges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Description of the business and recent developments:
Excise taxes and surcharge	$ 18.5	$ 15.1	$ 14.9

Description of the business _10

Description of the business and recent developments: Financial instruments (Details) - Dec. 31, 2021 € in Millions, $ in Millions	USD ($)	EUR (€)
Level 2 | Interest Rate Swap
Financial instruments
Fair value of interest rate swaps	$ 9
Senior unsecured 2024 Notes
Financial instruments
Senior notes	397	€ 350
Senior unsecured 2024 Notes | Level 2
Financial instruments
Senior notes, fair value	402
2021 Notes
Financial instruments
Senior notes	500
2021 Notes | Level 2
Financial instruments
Senior notes, fair value	$ 508.1

Description of the business _11

Description of the business and summary of significant accounting policies: Property and equipment (Details)	12 Months Ended
	Dec. 31, 2021
Indefeasible rights of use (IRUs) | Minimum
Property and equipment
Depreciation or amortization period (in years)	15 years
Indefeasible rights of use (IRUs) | Maximum
Property and equipment
Depreciation or amortization period (in years)	20 years
Network equipment | Minimum
Property and equipment
Depreciation or amortization period (in years)	3 years
Network equipment | Maximum
Property and equipment
Depreciation or amortization period (in years)	8 years
Software
Property and equipment
Depreciation or amortization period (in years)	5 years
Owned buildings
Property and equipment
Depreciation or amortization period (in years)	40 years
Office and other equipment | Minimum
Property and equipment
Depreciation or amortization period (in years)	3 years
Office and other equipment | Maximum
Property and equipment
Depreciation or amortization period (in years)	7 years
System infrastructure | Minimum
Property and equipment
Depreciation or amortization period (in years)	5 years
System infrastructure | Maximum
Property and equipment
Depreciation or amortization period (in years)	10 years

Description of the business _12

Description of the business and recent developments: Basic and diluted net income per common share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Diluted weighted average shares
Weighted average common shares - basic (in shares)	46,419,180	45,947,772	45,542,315
Weighted average common shares - diluted	46,963,920	46,668,198	46,080,395
Stock options
Diluted weighted average shares
Dilutive effect (options or restricted stock)	34,007	80,849	32,222
Anti-dilutive effects
Anti-dilutive (options or restricted stock)	45,809	32,324	39,608
Restricted stock
Diluted weighted average shares
Dilutive effect (options or restricted stock)	510,733	639,577	505,858
Anti-dilutive effects
Unvested shares of restricted common stock	1,253,321	1,339,596	1,283,281
Anti-dilutive (options or restricted stock)	86,619	223,118	348

Property and equipment_ (Detail

Property and equipment: (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property and equipment
Property and equipment, gross	$ 1,619,515	$ 1,515,867
Accumulated depreciation and amortization	(1,161,635)	(1,085,532)
Total property and equipment, net	457,880	430,335
Depreciation and amortization	89,240	83,477	$ 80,247
Owned assets
Property and equipment
Property and equipment, gross	1,095,040	1,032,889
Accumulated depreciation and amortization	(912,579)	(856,859)
Total property and equipment, net	182,461	176,030
Network equipment | Owned assets
Property and equipment
Property and equipment, gross	650,634	611,265
Leasehold improvements | Owned assets
Property and equipment
Property and equipment, gross	250,623	241,379
System infrastructure | Owned assets
Property and equipment
Property and equipment, gross	160,376	148,533
Capitalized salaries and related benefits of employees	13,400	12,100	$ 10,700
Software | Owned assets
Property and equipment
Property and equipment, gross	11,028	10,609
Office and other equipment | Owned assets
Property and equipment
Property and equipment, gross	20,999	19,611
Owned buildings | Owned assets
Property and equipment
Property and equipment, gross	1,273	1,376
Land | Owned assets
Property and equipment
Property and equipment, gross	107	116
Indefeasible rights of use (IRUs)
Property and equipment
Property and equipment, gross	524,475	482,978
Accumulated depreciation and amortization	(249,056)	(228,673)
Total property and equipment, net	$ 275,419	$ 254,305

Property and equipment_ - Amort

Property and equipment: - Amortization expense & cost of employees (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property and equipment
Depreciation and amortization	$ 89,240	$ 83,477	$ 80,247
System infrastructure | Owned assets
Property and equipment
Capitalized salaries and related benefits of employees	$ 13,400	$ 12,100	$ 10,700

Property and equipment_ Exchang

Property and equipment: Exchange agreement (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property and equipment
Cash component of network equipment obtained in exchange transactions	$ 0.3	$ 1
Exchange agreement | Level 3 | Network equipment
Property and equipment
Fair value of new equipment	$ 1.1	$ 3.3

Property and equipment_ Install

Property and equipment: Installment payment agreement (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)payment	Dec. 31, 2020USD ($)
Installment payment agreement
Unamortized discount | $	$ 6	$ 136
Network equipment | Note obligations
Installment payment agreement
Term of debt (in months)	24 months
Number of payments first six months | payment	0
Number of equal payments | payment	18
Outstanding obligation | $	$ 800	$ 7,700

Accrued and other liabilities_2

Accrued and other liabilities: (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued and other liabilities:
Operating accruals	$ 16,360	$ 24,168
Deferred revenue - current portion	4,894	4,651
Payroll and benefits	8,466	8,024
Taxes-non-income based	4,291	5,918
Interest	5,046	8,268
Total	$ 39,057	$ 51,029

Long-term debt_ (Details)

Long-term debt: (Details) € in Millions	Dec. 01, 2021USD ($)	Apr. 06, 2021USD ($)	May 31, 2021USD ($)	Mar. 31, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Aug. 31, 2018USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2021EUR (€)	Jul. 05, 2021USD ($)	Dec. 31, 2020EUR (€)	Jun. 30, 2020EUR (€)	Dec. 31, 2019EUR (€)	Jun. 30, 2019EUR (€)	Feb. 28, 2015USD ($)	Apr. 09, 2014USD ($)
Long-term debt
Margin deposits										$ 20,000,000
Proceeds from Issuance of Secured Debt										496,933,000
Senior secured debt outstanding										897,796,000
Interest Payable, Current										5,046,000	$ 8,268,000
Unrealized foreign exchange gain (loss) on 2024 Euro Notes										32,522,000	(36,997,000)	$ 2,271,000
Restricted Cash
Long-term debt
Margin deposits										9,000,000
Unrestricted Cash
Long-term debt
Margin deposits										11,000,000
Interest Rate Swap
Long-term debt
Interest expense										9,000,000
Interest Rate Swap | Cash
Long-term debt
Margin deposits										20,000,000
Senior secured 2026 Notes
Long-term debt
Face amount										$ 500,000,000				$ 500,000,000
Interest rate (as a percent)										3.50%			3.50%
Proceeds from Issuance of Secured Debt										$ 496,900,000
Discount on issuance of debt										1,800,000
Debt costs										$ 1,300,000
Redemption price percentage of principal amount redeemed										100.00%
Senior secured notes due 2022
Long-term debt
Face amount				$ 115,900,000						$ 284,100,000
Interest rate (as a percent)			5.375%
Senior secured debt outstanding			$ 284,100,000
Redemption of debt			$ 45,000,000
Redemption price percentage of principal amount redeemed										100.00%
Interest Payable, Current	$ 11,500,000			400,000
Gain (Loss) on Repurchase of Debt Instrument	$ 10,800,000			$ 3,900,000
Debt Instrument, Redemption Price, Percentage				103.20%
Principal amount deposited with trustee										$ 11,500,000
Redemption for debt, notice issued		$ 45,000,000
Redemption Value		$ 1,900,000
Redemption price per $1,000 aggregate principal amount		41.41533
Accrued Interest Value		$ 400,000
Accrued interest per $1,000 aggregate principal amount		9.70486
Extinguishment of Debt, Amount		$ 45,000,000
Long-term Debt, Gross		$ 284,100,000
Principal amount plus accrued and unpaid interest (as a percent)				103.20%
Senior secured notes due 2022 | Interest Rate Swap
Long-term debt
Face amount										9,000,000
Net Liability, Prepaid expenses										1,600,000
Net liability, other long term										10,600,000
2021 Notes
Long-term debt
Face amount					$ 189,200,000				$ 189,200,000											$ 200,000,000
Interest rate (as a percent)																				5.625%
Interest expense									$ 10,900,000
Interest Payable, Current					$ 1,600,000
Long-term Debt, Gross										500,000,000
Senior unsecured 2024 Notes
Long-term debt
Face amount										$ 397,000,000			€ 350		€ 350	€ 215	€ 135	€ 135
Interest rate (as a percent)					4.375%					4.375%			4.375%			4.375%
Net proceeds					$ 240,300,000	$ 152,100,000
Debt fair value										$ 397,000,000	429,300,000	151,400,000
Debt costs											2,137,000	1,556,000
Gain (Loss) on Repurchase of Debt Instrument					$ 600,000
Debt Instrument, Redemption Price, Percentage										100.00%
Long-term Debt, Gross										$ 397,000,000			€ 350
Principal amount plus accrued and unpaid interest (as a percent)										100.00%
Unrealized foreign exchange gain (loss) on 2024 Euro Notes										$ (32,500,000)	$ 37,000,000	2,300,000
Senior unsecured 2024 Notes | Prior to June 30, 2021
Long-term debt
Debt Instrument, Redemption Price, Percentage										104.375%
Premium percentage (as a percent)										35.00%
Principal amount plus accrued and unpaid interest (as a percent)										104.375%
Senior unsecured 2024 Notes | After June 30, 2021
Long-term debt
Debt Instrument, Redemption Price, Percentage										102.188%
Principal amount plus accrued and unpaid interest (as a percent)										102.188%
Senior notes
Long-term debt
Face amount							$ 70,000,000	$ 125,000,000											$ 250,000,000
Interest rate (as a percent)																			5.375%
Debt costs												$ 1,317,000
Premium percentage (as a percent)							101.75%	100.375%
Senior notes | Prior to December 1, 2021
Long-term debt
Debt Instrument, Redemption Price, Percentage										100.00%
Principal amount plus accrued and unpaid interest (as a percent)										100.00%

Long-term debt_ Debt extinguish

Long-term debt: Debt extinguishment and redemptions of 2022 Notes (Details) € in Millions	Dec. 01, 2021USD ($)	Apr. 06, 2021USD ($)	Mar. 31, 2021USD ($)	Jun. 30, 2020USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2021EUR (€)	Dec. 31, 2020USD ($)	Dec. 31, 2020EUR (€)	Jun. 30, 2020EUR (€)	Dec. 31, 2019EUR (€)	Jun. 30, 2019EUR (€)	Aug. 31, 2018USD ($)	Dec. 31, 2016USD ($)	Feb. 28, 2015USD ($)
Long-term debt
Interest					$ 5,046,000		$ 8,268,000
Senior secured notes due 2022
Long-term debt
Principal amount plus accrued and unpaid interest (as a percent)			103.20%
Face amount			$ 115,900,000		$ 284,100,000
Interest	$ 11,500,000		400,000
Loss on debt purchase	$ 10,800,000		$ 3,900,000
Notice issued for redemption of debt		$ 45,000,000
Amount of debt redeemed		45,000,000
Redemption value		$ 1,900,000
Redemption price per $1,000 aggregate principal amount		41.41533
Accrued interest value		$ 400,000
Accrued interest per $1,000 aggregate principal amount		9.70486
Senior notes outstanding		$ 284,100,000
Senior unsecured 2024 Notes
Long-term debt
Principal amount plus accrued and unpaid interest (as a percent)					100.00%
Face amount					$ 397,000,000	€ 350		€ 350	€ 215	€ 135	€ 135
Loss on debt purchase				$ 600,000
Senior notes outstanding					$ 397,000,000	€ 350
Senior unsecured 2024 Notes | Prior to June 30, 2021
Long-term debt
Principal amount plus accrued and unpaid interest (as a percent)					104.375%
Senior unsecured 2024 Notes | After June 30, 2021
Long-term debt
Principal amount plus accrued and unpaid interest (as a percent)					102.188%
Senior notes
Long-term debt
Face amount												$ 70,000,000	$ 125,000,000	$ 250,000,000
Senior notes | Prior to December 1, 2021
Long-term debt
Principal amount plus accrued and unpaid interest (as a percent)					100.00%

Long-term debt_ Senior unsecure

Long-term debt: Senior unsecured notes (Details) € in Millions, $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2021EUR (€)	Dec. 31, 2020EUR (€)	Jun. 30, 2020EUR (€)	Dec. 31, 2019EUR (€)	Jun. 30, 2019EUR (€)	Apr. 09, 2014USD ($)
2021 Notes
Senior unsecured notes- $189.2 million 2021 Notes
Principal amount	$ 189.2	$ 189.2							$ 200
Interest rate (as a percent)									5.625%
Interest expense on original debt		10.9
Interest expense on repurchased debt		$ 10.8
2021 Notes | On or After April 15, 2017
Senior unsecured notes- $189.2 million 2021 Notes
Principal amount plus accrued and unpaid interest (as a percent)			100.00%
Senior unsecured 2024 Notes
Senior unsecured notes- $189.2 million 2021 Notes
Principal amount			$ 397	€ 350	€ 350	€ 215	€ 135	€ 135
Interest rate (as a percent)	4.375%		4.375%	4.375%		4.375%
Loss on extinguishment debt purchases	$ 0.6
Principal amount plus accrued and unpaid interest (as a percent)			100.00%
Debt Instrument, Redemption Price Due to Change of Control as Percentage of Principal Amount			101.00%

Long-term debt_ Limitations und

Long-term debt: Limitations under the Indentures (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021USD ($)
Long-term debt
Consolidated leverage ratio	4.25
Amount unrestricted and permitted for investment payments	$ 185.5
Fixed charge coverage ratio	2
Minimum
Long-term debt
Percentage Of Principal Amount By Debt Holders Entitled To Redeem Remaining 2024 Notes	90.00%
Restriction on incurring additional indebtedness | Senior notes | Minimum
Long-term debt
Consolidated secured leverage ratio	1
Restriction on incurring additional indebtedness | Senior unsecured 2024 Notes | Minimum
Long-term debt
Consolidated leverage ratio	1
Restriction on incurring additional indebtedness | Senior unsecured 2024 Notes | Maximum
Long-term debt
Consolidated leverage ratio	6
Consolidated secured leverage ratio	4
Restriction on incurring additional indebtedness | Senior secured 2026 Notes | Minimum
Long-term debt
Consolidated leverage ratio	6
Consolidated secured leverage ratio	1
Fixed charge coverage ratio	2
Restriction on incurring additional indebtedness | Senior secured 2026 Notes | Maximum
Long-term debt
Consolidated leverage ratio	1
Consolidated secured leverage ratio	4
Fixed charge coverage ratio	1
Restriction on dividends and stock purchases | Senior unsecured 2024 Notes | Minimum
Long-term debt
Consolidated leverage ratio	1
Restriction on dividends and stock purchases | Senior unsecured 2024 Notes | Maximum
Long-term debt
Consolidated leverage ratio	4.25
Restriction on dividends and stock purchases | Senior secured 2026 Notes
Long-term debt
Fixed charge coverage ratio	1
Restriction on dividends and stock purchases | Senior secured 2026 Notes | Minimum
Long-term debt
Consolidated leverage ratio	1
Fixed charge coverage ratio	1
Restriction on dividends and stock purchases | Senior secured 2026 Notes | Maximum
Long-term debt
Consolidated leverage ratio	6
Fixed charge coverage ratio	2

Long-term debt_ Long-term debt

Long-term debt: Long-term debt maturities (Details) $ in Thousands	Dec. 31, 2021USD ($)
Long-term debt:
2022	$ 791
2024	397,005
2026	500,000
Total	$ 897,796

Income taxes_ Components of (lo

Income taxes: Components of (loss) income before income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Components of income before income taxes
Domestic	$ 73,753	$ 23,808	$ 72,773
Foreign	(2,333)	(13,496)	(20,099)
Total income before income taxes	$ 71,420	$ 10,312	$ 52,674

Income taxes_ Income tax expens

Income taxes: Income tax expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal		$ 32
State	$ (3,116)	(2,908)	$ (2,647)
Foreign	(1,833)	(947)	(370)
Deferred:
Federal	(17,959)	(1,867)	(10,899)
State	(2,348)	1,241	(1,285)
Foreign	2,021	353	47
Total income tax expense	$ (23,235)	$ (4,096)	$ (15,154)

Income taxes_ Temporary differe

Income taxes: Temporary differences (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets:
Net operating loss carry-forwards	$ 246,276	$ 273,999
Tax credits	2,119	1,965
Equity-based compensation	3,976	4,901
Operating leases	40,627	40,081
Total gross deferred tax assets	292,998	320,946
Valuation allowance	(132,800)	(150,589)
Net deferred tax assets	160,198	170,357
Deferred Tax Liabilities:
Depreciation and amortization	46,642	37,364
Accrued liabilities and other	103,705	105,554
Right-of-use assets	37,784	37,097
Gross deferred tax liabilities	188,131	180,015
Net deferred tax liabilities	$ 27,933	$ 9,658

Income taxes_ Loss carry-forwar

Income taxes: Loss carry-forwards (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021USD ($)
Net operating loss carry-forwards
Net operating loss carry-forwards	$ 1,000
United States
Net operating loss carry-forwards
Net operating loss carry-forwards	39.5
Carry-forwards limited for use	25.6
Europe
Net operating loss carry-forwards
Net operating loss carry-forwards	967,900
Carry-forwards limited for use	141.2
Carry-forwards not limited for use	826.7
Mexico
Net operating loss carry-forwards
Net operating loss carry-forwards	7.3
Other than United States
Net operating loss carry-forwards
Carry-forwards not limited for use	$ 1,000

Income taxes_ Effective Income

Income taxes: Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of the Federal statutory income taxes to the amounts reported in the financial statements
Federal income tax expense at statutory rates	$ (14,999)	$ (2,166)	$ (11,061)
State income tax, net of federal benefit	(4,123)	(1,091)	(2,973)
Impact of foreign operations	715	(365)	(505)
Non-deductible expenses	(1,365)	(411)	(491)
Tax effect of TCJA from foreign earnings	(389)	(66)	(28)
Other		32	(32)
Change in valuation allowance	(3,074)	(29)	(64)
Total income tax expense	$ (23,235)	$ (4,096)	$ (15,154)

Commitments and contingencies_2

Commitments and contingencies: Current and potential litigation (Details) - USD ($) $ in Millions	Oct. 25, 2021	Dec. 31, 2021	Mar. 31, 2015
Commitments and contingencies
Estimate of possible loss in excess of accrual		$ 3.6
Alleged unpaid fees		$0.6
Loss contingency, damages awarded, value		$ 0.7
Losses on lease terminations		$ 7.4
Spain
Commitments and contingencies
Estimate of possible loss			$ 9
CIMA
Commitments and contingencies
Loss contingency, damages awarded, value	$ 0.7

Commitments and contingencies_3

Commitments and contingencies: Capital leases - future minimum payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Future minimum annual payments
Total minimum lease obligations	$ 418,763
Amount of lease expenses	22,000	$ 21,000	$ 20,600
Network Equipment Sites And Data Center Facilities [Member]
Future minimum annual payments
2022	24,740
2023	12,225
2024	8,450
2025	6,112
2026	4,711
Thereafter	1,872
Total minimum lease obligations	$ 58,110

Commitments and contingencies_4

Commitments and contingencies: Unconditional purchase obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Unconditional purchase obligations
2021	$ 2,900
2022	1,000
2023	1,000
2024	1,000
2025	1,000
Thereafter	17,800
Unconditional purchase obligation	785	$ 6,786
Equipment and services
Unconditional purchase obligations
Unconditional purchase obligation	19,400
IRU
Unconditional purchase obligations
Unconditional purchase obligation	$ 24,700
Maximum period of maintenance payment (in years)	20 years

Commitments and contingencies_5

Commitments and contingencies: Defined contribution plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Commitments and contingencies:
Matching cash payments towards defined contribution plan	$ 0.9	$ 0.9	$ 0.8

Stockholders' equity_ Authorize

Stockholders' equity: Authorized shares (Details)	12 Months Ended
	Dec. 31, 2021Vote / shares$ / sharesshares	Dec. 31, 2020$ / sharesshares
Stockholders' equity:
Common stock, shares authorized | shares	75,000,000	75,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
Preferred stock, authorized but unissued shares (in shares) | shares	10,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.001
Voting rights per common share | Vote / shares	1

Stockholders' equity_ Common st

Stockholders' equity: Common stock buyback program (Details) - USD ($) $ in Millions	12 Months Ended	36 Months Ended
	Dec. 31, 2020	Dec. 31, 2021
Stockholders' equity:
Authorized amount for common stock repurchases		$ 50
Remaining authorized amount for common stock repurchases		$ 30.4
Repurchase of common stock (in shares)	79,056	0
Cost of shares of common stock	$ 4.5

Stock option and award plan_ In

Stock option and award plan: Incentive award plan (Details)	12 Months Ended
	Dec. 31, 2021
Stock options
Incentive award plan
Vesting period	4 years
Expiration period	10 years
Exercise period of options vested, when an employee is terminated prior to full vesting	90 days
Restricted stock | Minimum
Incentive award plan
Vesting period	3 years
Restricted stock | Maximum
Incentive award plan
Vesting period	4 years

Stock option and award plan_ _2

Stock option and award plan: Incentive award plan fair value assumptions (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Incentive award plan
Weighted-average per share grant date fair value (in dollars per share)	$ 12.22	$ 13.21	$ 8.92
Assumptions used for determining the fair value of options granted
Dividend yield (as a percent)	4.60%	3.40%	4.50%
Expected volatility (as a percent)	33.40%	31.50%	28.30%
Risk-free interest rate (as a percent)	0.60%	1.10%	2.50%
Expected life of the option term (in years)	4 years 2 months 12 days	4 years 2 months 12 days	4 years 3 months 18 days

Stock option and award plan_ _3

Stock option and award plan: Incentive award plan - activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock option activity parenthetical
Proceeds from exercises of common stock options	$ 1,823	$ 1,382	$ 1,637
Stock options
Stock option activity
Outstanding at the beginning of the period (in shares)	159,880
Granted (in shares)	76,768
Cancelled and expired (in shares)	(51,645)
Exercised (in shares)	(36,468)
Outstanding at the end of the period (in shares)	148,535	159,880
Exercisable at the end of the period (in shares)	89,904
Expected to vest (in shares)	131,701
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 54.09
Granted (in dollars per share)	69.54
Cancelled and expired (in dollars per share)	68
Exercised (in dollars per share)	50
Outstanding at the end of the period (in dollars per share)	58.24	$ 54.09
Exercisable at the end of the period (in dollars per share)	50.70
Expected to vest (in dollars per share)	$ 56.55
Stock option activity parenthetical
Exercised - intrinsic value	$ 900
Proceeds from exercises of common stock options	1,800
Outstanding end of period - intrinsic value	$ 2,400
Outstanding - weighted-average term	6 years 10 months 24 days
Exercisable - intrinsic value	$ 2,100
Exercisable - weighted average term	5 years 6 months
Expected to vest - intrinsic value	$ 2,300
Expected to vest - weighted average term	6 years 7 months 6 days

Stock option and award plan_ No

Stock option and award plan: Non-vested restricted stock (Details) - Restricted stock - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of shares
Non-vested at the beginning of the period (in shares)	1,339,596
Granted (in shares)	471,080	500,000	500,000
Vested (in shares)	(509,919)
Forfeited (in shares)	(47,436)
Non-vested at the end of the period (in shares)	1,253,321	1,339,596
Weighted-Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 55.70
Granted (in dollars per share)	64.59	$ 75.18	$ 53.53
Vested (in dollars per share)	49.12
Forfeited (in dollars per share)	57.16
Non-vested at the end of the period (in dollars per share)	$ 61.66	$ 55.70

Stock option and award plan_ _4

Stock option and award plan: Incentive award plan, additional information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Incentive Award Plan, additional information
Equity-based compensation expense	$ 26,822	$ 23,525	$ 18,460
Total unrecognized compensation cost	$ 39,400
Weighted-average period to recognize unrecognized compensation cost	2 years
Restricted stock
Incentive Award Plan, additional information
Granted (in dollars per share)	$ 64.59	$ 75.18	$ 53.53
Granted (in shares)	471,080	500,000	500,000
Equity-based compensation expense	$ 26,822	$ 23,525	$ 18,460
Income tax benefit related to stock options and restricted stock	6,314	4,211	3,026
Capitalized compensation expense related to stock options and restricted stock	3,222	2,275	1,752
Intrinsic value of stock options exercised	881	841	839
Fair value of shares of restricted stock vested	$ 35,749	$ 25,439	$ 20,779

Related party transactions_ (De

Related party transactions: (Details) - CEO - Lease - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2015	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Office lease
Fixed annual rent		$ 1
Lease term (in years)	5 years
Notice period for cancellation of lease	60 days
Payment for rent and related costs (in dollars)		$ 1.7	$ 1.7	$ 1.7

Geographic information_ (Detail

Geographic information: (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)segment	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Geographic information
Number of operating segments | segment	1
Revenues	$ 589,797	$ 568,103	$ 546,159
Long-lived assets, net	457,892	430,351
On-net
Geographic information
Revenues	442,838	419,454	396,753
Off-net
Geographic information
Revenues	146,383	148,128	148,931
Non-core
Geographic information
Revenues	576	521	475
North America
Geographic information
Revenues	467,992	461,277	451,567
Long-lived assets, net	331,537	306,652
North America | On-net
Geographic information
Revenues	340,107	330,924	319,330
North America | Off-net
Geographic information
Revenues	127,383	129,879	131,815
North America | Non-core
Geographic information
Revenues	502	474	422
Europe
Geographic information
Revenues	105,730	96,867	88,696
Europe | On-net
Geographic information
Revenues	87,929	79,568	72,320
Europe | Off-net
Geographic information
Revenues	17,729	17,252	16,323
Europe | Non-core
Geographic information
Revenues	72	47	53
Asia Pacific
Geographic information
Revenues	11,292	7,783	5,393
Asia Pacific | On-net
Geographic information
Revenues	10,197	6,834	4,615
Asia Pacific | Off-net
Geographic information
Revenues	1,094	949	778
Asia Pacific | Non-core
Geographic information
Revenues	1
Europe and other
Geographic information
Long-lived assets, net	126,355	123,699
Africa
Geographic information
Revenues	507	72
Africa | On-net
Geographic information
Revenues	503	72
Africa | Off-net
Geographic information
Revenues	4
South America
Geographic information
Revenues	4,276	2,104	503
South America | On-net
Geographic information
Revenues	4,102	2,056	488
South America | Off-net
Geographic information
Revenues	173	$ 48	$ 15
South America | Non-core
Geographic information
Revenues	$ 1

Quarterly financial informati_3

Quarterly financial information (unaudited): (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Service revenue									$ 589,797	$ 568,103	$ 546,159
Network operations, including equity-based compensation expense									226,337	219,157	219,801
Operating income									119,233	106,922	100,257
Net income (loss)									$ 48,185	$ 6,216	$ 37,520
Net income (loss) per common share - basic									$ 1.04	$ 0.14	$ 0.82
Net income (loss) per common share - diluted									$ 1.03	$ 0.13	$ 0.81
Weighted-average number of common shares-basic									46,419,180	45,947,772	45,542,315
Weighted-average number of common shares-diluted									46,963,920	46,668,198	46,080,395
Unrealized foreign exchange gain (loss) on 2024 Euro Notes									$ 32,522	$ (36,997)	$ 2,271
Unrealized foreign currency exchange gain (loss)	$ 8,800	$ 10,200	$ (5,300)	$ 18,900	$ (19,200)	$ (17,300)	$ (3,400)	$ 2,900	$ 32,522	(36,997)	$ 2,271
Realized foreign exchange gain on 2024 Euro Notes			2,500							$ 2,533
Loss on debt extinguishment and redemption - 2021 Notes			10,800	3,900
Gain on lease termination	7,400
Unaudited
Service revenue	147,208	147,927	147,879	146,777	143,901	142,302	140,990	140,915
Network operations, including equity-based compensation expense	56,418	56,645	56,180	57,092	54,829	54,519	53,886	55,921
Operating income	36,165	28,556	28,211	26,291	27,384	26,036	27,574	25,850
Net income (loss)	$ 18,507	$ 13,320	$ (2,493)	$ 18,851	$ (6,620)	$ (6,555)	$ 8,564	$ 9,227
Net income (loss) per common share - basic	$ 0.40	$ 0.29	$ (0.05)	$ 0.41	$ (0.14)	$ (0.11)	$ 0.18	$ 0.20
Net income (loss) per common share - diluted	$ 0.39	$ 0.28	$ (0.05)	$ 0.41
Net income per common share-basic and diluted					$ (0.14)	$ (0.11)	$ 0.19	$ 0.20
Weighted-average number of common shares-basic	46,420,168	46,293,524	46,229,603	46,067,096	45,904,943	45,815,718	45,754,880	45,658,565
Weighted-average number of common shares-diluted	46,992,639	46,866,929	46,229,603	46,507,258	45,904,943	45,815,718	46,686,665	46,391,066

Subsequent Events_ (Details)

Subsequent Events: (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 25, 2022	Feb. 23, 2022	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Subsequent events
Dividends paid					$ 150,288	$ 129,412	$ 112,647
Gains (Losses) on Extinguishment of Debt			$ 10,800	$ 3,900
Subsequent Event
Subsequent events
Quarterly dividend payment approved (per share)		$ 0.855
Dividends paid	$ 39,700

Schedule II VALUATION AND QUA_2

Schedule II VALUATION AND QUALIFYING ACCOUNTS (Details) - Deferred tax valuation allowance - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Movement in valuation and qualifying accounts
Balance at Beginning of Period	$ 150,589	$ 131,069	$ 126,579
Charged to Costs and Expenses	4,918	20,599	5,785
Deductions	(22,707)	(1,079)	(1,295)
Balance at End of Period	$ 132,800	$ 150,589	$ 131,069