Consolidated Communications (CNSL) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document and Entity Information
Entity Registrant Name	Consolidated Communications Holdings, Inc.
Entity Central Index Key	1,304,421
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		50,733,313
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 169,935	$ 188,846
Operating expenses:
Cost of services and products (exclusive of depreciation and amortization)	71,391	79,720
Selling, general and administrative expenses	36,433	40,676
Acquisition and other transaction costs	1,329
Depreciation and amortization	42,195	44,140
Income from operations	18,587	24,310
Other income (expense):
Interest expense, net of interest income	(29,671)	(18,646)
Investment income	5,278	7,197
Other, net	(73)	14
Income (loss) before income taxes	(5,879)	12,875
Income tax expense (benefit)	(2,174)	4,973
Net income (loss)	(3,705)	7,902
Less: net income (loss) attributable to noncontrolling interest	(20)	53
Net income (loss) attributable to common shareholders	$ (3,685)	$ 7,849
Net income (loss) per common share - basic and diluted
Net income (loss) per basic and diluted common share attributable to common shareholders (in dollars per share)	$ (0.07)	$ 0.15
Dividends declared per common share (in dollars per share)	$ 0.39	$ 0.39

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (3,705)	$ 7,902
Pension and post-retirement obligations:
Amortization of actuarial losses and prior service credit to earnings, net of tax	862	679
Derivative instruments designated as cash flow hedges:
Change in fair value of derivatives, net of tax	(56)	(430)
Reclassification of realized loss to earnings, net of tax	205	149
Comprehensive income (loss)	(2,694)	8,300
Less: comprehensive income (loss) attributable to noncontrolling interest	(20)	53
Total comprehensive income (loss) attributable to common shareholders	$ (2,674)	$ 8,247

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 26,629	$ 27,077
Accounts receivable, net of allowance for doubtful accounts	49,770	56,216
Income tax receivable	24,058	21,616
Prepaid expenses and other current assets	29,014	28,292
Total current assets	129,471	133,201
Property, plant and equipment, net	1,047,796	1,055,186
Investments	106,035	106,221
Goodwill	756,877	756,877
Other intangible assets	28,521	31,612
Other assets	9,540	9,661
Total assets	2,078,240	2,092,758
Current liabilities:
Accounts payable	6,436	6,766
Advance billings and customer deposits	26,544	26,438
Dividends payable	19,653	19,605
Accrued compensation	16,638	16,971
Accrued interest	24,726	11,260
Accrued expense	50,564	54,123
Current portion of long-term debt and capital lease obligations	15,830	14,922
Total current liabilities	160,391	150,085
Long-term debt and capital lease obligations	1,375,271	1,376,754
Deferred income taxes	242,725	244,298
Pension and other post-retirement obligations	128,978	130,793
Other long-term liabilities	14,121	14,573
Total liabilities	1,921,486	1,916,503
Commitments and contingencies (Note 11)
Shareholders' equity:
Common stock, par value $0.01 per share; 100,000,000 shares authorized, 50,734,486 and 50,612,362 shares outstanding as of March 31, 2017 and December 31, 2016, respectively	507	506
Additional paid-in capital	200,917	217,725
Retained earnings (deficit)	(3,685)
Accumulated other comprehensive loss, net	(46,266)	(47,277)
Noncontrolling interest	5,281	5,301
Total shareholders' equity	156,754	176,255
Total liabilities and shareholders' equity	$ 2,078,240	$ 2,092,758

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	50,734,486	50,612,362

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net cash provided by operating activities	$ 51,718	$ 59,541
Cash flows from investing activities:
Purchases of property, plant and equipment, net	(29,025)	(28,688)
Proceeds from sale of assets	43	14
Net cash used in investing activities	(28,982)	(28,674)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	7,000
Payment of capital lease obligations	(1,289)	(387)
Payment on long-term debt	(9,250)	(2,275)
Share repurchases for minimum tax withholding	(41)	(71)
Dividends on common stock	(19,604)	(19,551)
Net cash used in financing activities	(23,184)	(22,284)
Increase (decrease) in cash and cash equivalents	(448)	8,583
Cash and cash equivalents at beginning of period	27,077	15,878
Cash and cash equivalents at end of period	$ 26,629	$ 24,461

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Basis of Accounting Consolidated Communications Holdings, Inc. (the “Company”, “we” or “our”) is a holding company with operating subsidiaries (collectively “Consolidated”) that provide integrated communications services in consumer, commercial and carrier channels in California, Illinois, Iowa, Kansas, Minnesota, Missouri, North Dakota, Pennsylvania, South Dakota, Texas and Wisconsin. We operate as both an Incumbent Local Exchange Carrier (“ILEC”) and a Competitive Local Exchange Carrier (“CLEC”), dependent upon the territory served. We provide a wide range of services and products that include local and long-distance service, high-speed broadband Internet access, video services, Voice over Internet Protocol (“VoIP”), private line services, carrier grade access services, network capacity services over our regional fiber optic networks, cloud data services, data center and managed services, directory publishing and equipment sales. As of March 31, 2017, we had approximately 453 thousand voice connections, 477 thousand data connections and 103 thousand video connections. In the opinion of management, the accompanying unaudited condensed consolidated balance sheets and related condensed consolidated statements of operations, comprehensive income (loss) and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States (“US GAAP” or “GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying condensed consolidated financial statements through the date of issuance. Management believes that the disclosures made are adequate to make the information presented not misleading. Interim results are not necessarily indicative of results for a full year. The information presented in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and the accompanying notes to the financial statements (“Notes”) thereto included in our 2016 Annual Report on Form 10-K filed with the SEC. Recent Accounting Pronouncements Effective January 1, 2017, we adopted the Accounting Standards Update No. 2016-09 (“ASU 2016-09 ”), Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 amends several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, calculation of compensation expense and classification on the statement of cash flows. ASU 2016-09 requires excess tax benefits and deficiencies resulting from stock-based compensation awards vesting to be recognized as income tax expense or benefit in the income statement on a prospective basis. Previously, these amounts were recognized in additional paid-in capital. The impact of this change was not material for the quarter ended March 31, 2017. In addition, ASU 2016-09 requires excess tax benefits and deficiencies to be excluded from the assumed proceeds in the calculation of diluted shares. This requirement did not impact diluted loss per share for the quarter ended March 31, 2017 as the diluted shares were excluded from the computation of loss per share. Due to our net loss for the quarter ended March 31, 2017, the inclusion of these shares would have had an anti-dilutive impact. ASU 2016-09 removed the requirement to delay recognition of excess tax benefits until it reduces current income taxes payable. This update is required to be applied on a modified retrospective basis, which resulted in a cumulative effect adjustment of $2.2 million to increase opening retained earnings for the cumulative impact of excess tax benefits related to our net operating loss carryforwards. This amount was subsequently transferred into additional paid-in capital at March 31, 2017. ASU 2016-09 permits the election of an accounting policy for forfeitures of share-based payment awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. We have elected to recognize forfeitures as they occur and the cumulative impact of this change was not material to our condensed consolidated financial statements and related disclosures. In March 2017, the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update No. 2017-07 (“ASU 2017-07”), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires presentation of the service cost component of net periodic benefit cost within the same income statement line item as other compensation costs arising from services rendered by relevant employees during the period, and presentation of the other cost components of net periodic benefit cost separately and outside of the income from operations subtotal. In addition, only the service cost component is eligible for capitalization. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of the annual period and should be applied retrospectively for the presentation of the service cost and prospectively for the capitalization of the service cost component in assets. We will adopt this update effective January 1, 2018 and do not expect a material impact on our condensed consolidated financial statements and related disclosures. In February 2017, the FASB issued the Accounting Standards Update No. 2017-05 (“ASU 2017-05”), Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU 2017-05 provides additional guidance to (i) clarify the scope for recognizing gains and losses from the transfer of nonfinancial assets and in substance nonfinancial assets in contracts with non-customers, and (ii) clarify the accounting for partial sales of nonfinancial assets. ASU 2017-05 is effective for annual and interim periods beginning after December 15, 2017 and can be applied using the retrospective or modified retrospective approach. We plan to adopt ASU 2017-05 as of January 1, 2018 and are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In January 2017, FASB issued the Accounting Standards Update No. 2017-04 (“ASU 2017-04”), Simplifying the Accounting for Goodwill Impairment . ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under updated guidance, the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount and an impairment charge recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new guidance is effective for annual and interim goodwill tests in fiscal years beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted for annual and interim goodwill impairment testing performed after January 1, 2017. We are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued the Accounting Standards Update No. 2017-01 (“ASU 2017-01”), Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business and establishes a screening process to determine whether an integrated set of assets and activities acquired is deemed the acquisition of a business or the acquisition of assets. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017 and should be applied prospectively, with early adoption permitted. We do not expect that adoption of ASU 2017-01 will have a material impact on our condensed consolidated financial statements and related disclosures. In October 2016, the FASB issued the Accounting Standards Update No. 2016-16 (“ASU 2016-16”), Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 eliminates the existing exception prohibiting the recognition of the income tax consequences for intra-entity asset transfers until the asset has been sold to an outside party. Under ASU 2016-16, entities will be required to recognize the income tax consequences of intra-entity asset transfers other than inventory when the transfer occurs. ASU 2016-16 is effective on a modified retrospective basis for annual and interim periods beginning after December 15, 2017, with early adoption permitted. We currently anticipate adopting this update effective January 1, 2018 and do not expect a material impact on our condensed consolidated financial statements and related disclosures. In August 2016, the FASB issued the Accounting Standards Update No. 2016-15 (“ASU 2016-15”), Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 provides guidance concerning the classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and should be applied retrospectively, with early adoption permitted. We are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued the Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Measurement of Credit Losses on Financial Instruments . ASU 2016-13 establishes the new “current expected credit loss” model for measuring and recognizing credit losses on financial assets based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts. The new guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods beginning after December 15, 2018. We are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In February 2016, the FASB issued the Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases . ASU 2016-02 establishes a new lease accounting model for leases. Lessees will be required to recognize most leases on their balance sheets but lease expense will be recognized on the income statement in a manner similar to existing requirements. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the population of our leases and anticipate that most of our operating lease commitments will be recognized on our consolidated balance sheets. We have not yet made a decision on the timing and method of adoption and are continuing to assess all potential impacts of this update on our condensed consolidated financial statements and related disclosures. In May 2014, FASB issued the Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) , which will replace the current revenue recognition requirements in U.S. GAAP. The core principle of ASU 2014-09 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Two transition methods are permitted under ASU 2014-09, the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB issued the Accounting Standards Update No. 2015-14 (“ASU 2015-14”), Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 for all entities by one year. Accordingly, ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2017, at which point we plan to adopt the standard. In 2016, we established a cross-functional implementation team consisting of representatives from across all of our functional areas. We are using a bottoms-up approach to assess the impact of ASU 2014-09 on our revenue contracts by reviewing our current accounting policies and practices to identify potential differences that would result from applying the requirements of this update. While we are continuing to assess all potential impacts of this update, we currently believe that the most significant impact relates to the deferral of contract acquisition costs, which we currently expense as incurred but under ASU 2014-09 will generally be capitalized and amortized over the contract performance period. Currently, we anticipate adopting this update using the full retrospective method to restate each prior reporting period presented.

ACQUISITION AND DISPOSITIONS

ACQUISITION AND DISPOSITIONS	3 Months Ended
	Mar. 31, 2017
ACQUISITION AND DISPOSITIONS
ACQUISITION AND DISPOSITIONS	2. ACQUISITIONS AND DIVESTITURES Acquisitions FairPoint Communications, Inc. On December 3, 2016, we entered into a definitive agreement and plan of merger (the “Merger Agreement”) with FairPoint Communications, Inc. (“FairPoint”) to acquire all the issued and outstanding shares of FairPoint in exchange for shares of our common stock. FairPoint is an advanced communications provider to business, wholesale and residential customers within its service territory which spans across 17 states. FairPoint owns and operates a robust fiber-based network with more than 21,000 route miles of fiber, including 17,000 route miles of fiber in northern New England. At the effective time of the merger, each share of common stock, par value of $0.01 per share, of FairPoint issued and outstanding immediately prior to the effective time of the merger will be converted into and become the right to receive 0.7300 shares of common stock, par value $0.01 per share, of Consolidated and cash in lieu of fractional shares, as set forth in the Merger Agreement. Based on the closing price of our common stock as of the date of the Merger Agreement, the total value of the consideration to be exchanged is approximately $585.3 million, exclusive of debt of approximately $917.6 million. In connection with the merger, we secured committed debt financing through a $935.0 million incremental term loan facility, as described in Note 6, that, in addition to cash on hand and other sources of liquidity, will be used to repay the existing indebtedness of FairPoint and pay the fees and expenses in connection with the merger. The merger is subject to standard closing conditions including the approval of our stockholders and FairPoint’s stockholders, the approval of the listing of additional shares of Consolidated common stock to be issued to FairPoint’s stockholders, required federal and state regulatory approvals and other customary closing conditions. In March 2017, our stockholders approved the issuance of Company common stock to FairPoint’s stockholders pursuant to the Merger Agreement and FairPoint’s stockholders approved the adoption of the Merger Agreement by FairPoint. We have completed all required filings with the Federal Communications Commission and have received approval under the Hart-Scott-Rodino Act and are in the process of securing the necessary state and federal regulatory approvals necessary to complete the merger. We expect the merger to close by mid-2017. Champaign Telephone Company, Inc. On July 1, 2016, we acquired substantially all of the assets of Champaign Telephone Company, Inc. and its sister company, Big Broadband Services, LLC, a private business communications provider in the Champaign-Urbana, IL area. The aggregate purchase price, including customary working capital adjustments, consisted of cash consideration of $13.4 million, which was paid from our existing cash resources. The preliminary fair value of the acquired assets and liabilities assumed consists primarily of property, plant and equipment of $6.9 million, intangible assets of $1.0 million, working capital of $0.8 million and goodwill of $4.7 million. Goodwill and other intangible assets are expected to be amortizable and deductible for income tax purposes. We are in the process of finalizing the valuation of the net assets acquired, most notably, the completion of various tax related matters for the acquisition. Upon completion of the final fair value assessment, the fair values of the net assets acquired may differ from the preliminary assessment. We expect to finalize these valuations during the quarter ended June 30, 2017. Divestitures On December 6, 2016, we completed the sale of substantially all of the assets of the Company’s Enterprise Services equipment and IT Services business (“EIS”) to ePlus Technology inc. (“ePlus”) for cash proceeds of $9.2 million net of a customary working capital adjustment. As part of the transaction, we entered into a Co-Marketing Agreement with ePlus, a nationwide systems integrator of technology solutions, to cross-sell both broadband network services and IT services. The strategic partnership will provide our business customers access to a broader suite of IT solutions, and will also provide ePlus customers access to Consolidated’s business network services. On May 3, 2016, we entered into a definitive agreement to sell all of the issued and outstanding stock of our non-core, rural ILEC business located in northwest Iowa, Consolidated Communications of Iowa Company (“CCIC”), formerly Heartland Telecommunications Company of Iowa. CCIC provides telecommunications and data services to residential and business customers in 11 rural communities in northwest Iowa and surrounding areas. The sale was completed on September 1, 2016 for total cash proceeds of approximately $21.0 million, net of certain contractual and customary working capital adjustments.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2017
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE	3. EARNINGS (LOSS) PER SHARE Basic and diluted earnings (loss) per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s restricted stock awards are considered participating securities because holders are entitled to receive non-forfeitable dividends during the vesting term. Diluted EPS includes securities that could potentially dilute basic EPS during a reporting period. Dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive. The potentially dilutive impact of the Company’s restricted stock awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with the proceeds of exercise used to repurchase common stock at the average market price for the period. Any incremental difference between the assumed number of shares issued and repurchased is included in the diluted share computation. The computation of basic and diluted EPS attributable to common shareholders computed using the two‑class method is as follows: Quarter Ended March 31, (In thousands, except per share amounts) 2017 2016 Net income (loss) $ (3,705) $ 7,902 Less: net income (loss) attributable to noncontrolling interest (20) 53 Income (loss) attributable to common shareholders before allocation of earnings to participating securities (3,685) 7,849 Less: earnings allocated to participating securities 49 131 Net income (loss) attributable to common shareholders, after earnings allocated to participating securities $ (3,734) $ 7,718 Weighted-average number of common shares outstanding 50,410 50,289 Net income (loss) per common share attributable to common shareholders - basic and diluted $ (0.07) $ 0.15 Diluted earnings (loss) per common share attributable to common shareholders for each of the quarters ended March 31, 2017 and 2016 excludes 0.2 million potential common shares that could be issued under our share-based compensation plan, because the inclusion of the potential common shares would have an antidilutive effect.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2017
INVESTMENTS
INVESTMENTS	4. INVESTMENTS Our investments are as follows: March 31, December 31, (In thousands) 2017 2016 Cash surrender value of life insurance policies $ 2,336 $ 2,156 Cost method investments: GTE Mobilnet of South Texas Limited Partnership (2.34% interest) 21,450 21,450 Pittsburgh SMSA Limited Partnership (3.60% interest) 22,950 22,950 CoBank, ACB Stock 8,295 8,138 Other 200 200 Equity method investments: GTE Mobilnet of Texas RSA #17 Limited Partnership (20.51% interest) 16,400 17,160 Pennsylvania RSA 6(I) Limited Partnership (16.67% interest) 6,768 6,540 Pennsylvania RSA 6(II) Limited Partnership (23.67% interest) 27,636 27,627 Totals $ 106,035 $ 106,221 Cost Method We own 2.34% of GTE Mobilnet of South Texas Limited Partnership (the “Mobilnet South Partnership”). The principal activity of the Mobilnet South Partnership is providing cellular service in the Houston, Galveston and Beaumont, Texas metropolitan areas. We also own 3.60% of Pittsburgh SMSA Limited Partnership (“Pittsburgh SMSA”), which provides cellular service in and around the Pittsburgh metropolitan area. Because of our limited influence over these partnerships, we use the cost method to account for both of these investments. It is not practicable to estimate the fair value of these investments. No factors of impairment existed for any of the investments during the quarters ended March 31, 2017 or 2016. For the quarters ended March 31, 2017 and 2016, we received cash distributions from these partnerships totaling $1.6 million and $2.8 million, respectively. CoBank, ACB (“CoBank”) is a cooperative bank owned by its customers. On an annual basis, CoBank distributes patronage in the form of cash and stock in the cooperative based on the Company’s outstanding loan balance with CoBank, which has traditionally been a significant lender in the Company’s credit facility. The investment in CoBank represents the accumulation of the equity patronage paid by CoBank to the Company. Equity Method We own 20.51% of GTE Mobilnet of Texas RSA #17 Limited Partnership (“RSA #17”), 16.67% of Pennsylvania RSA 6(I) Limited Partnership (“RSA 6(I)”) and 23.67% of Pennsylvania RSA 6(II) Limited Partnership (“RSA 6(II)”). RSA #17 provides cellular service to a limited rural area in Texas. RSA 6(I) and RSA 6(II) provide cellular service in and around our Pennsylvania service territory. Because we have significant influence over the operating and financial policies of these three entities, we account for the investments using the equity method. For each of the quarters ended March 31, 2017 and 2016, we received cash distributions from these partnerships totaling $4.0 million. The combined unaudited results of operations and financial position of our three equity investments in the cellular limited partnerships are summarized below: Quarter Ended March 31, (In thousands) 2017 2016 Total revenues $ 80,020 $ 82,657 Income from operations 21,288 25,470 Net income before taxes 20,897 25,063 Net income 20,897 25,063 March 31, December 31, (In thousands) 2017 2016 Current assets $ 64,907 $ 64,083 Non-current assets 90,239 89,651 Current liabilities 21,814 21,985 Non-current liabilities 51,676 51,836 Partnership equity 81,656 79,913

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS Our derivative instruments related to interest rate swap agreements are required to be measured at fair value on a recurring basis. The fair values of the interest rate swaps are determined using valuation models and are categorized within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and observable market data of similar instruments. See Note 7 for further discussion regarding our interest rate swap agreements. Our interest rate swap agreements measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 were as follows: As of March 31, 2017 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Long-term interest rate swap assets $ 433 $ - $ 433 $ - Current interest rate swap liabilities (350) - (350) - Long-term interest rate swap liabilities (154) - (154) - Total $ (71) $ - $ (71) $ - As of December 31, 2016 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Long-term interest rate swap assets $ 398 $ - $ 398 $ - Current interest rate swap liabilities (453) - (453) - Long-term interest rate swap liabilities (216) - (216) - Total $ (271) $ - $ (271) $ - We have not elected the fair value option for any of our financial assets or liabilities. The carrying value of other financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities or variable-rate nature of the respective balances. The following table presents the other financial instruments that are not carried at fair value but which require fair value disclosure as of March 31, 2017 and December 31, 2016 . As of March 31, 2017 As of December 31, 2016 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Investments, equity basis $ n/a $ n/a Investments, at cost $ n/a $ n/a Long-term debt, excluding capital leases $ $ $ $ Cost & Equity Method Investments Our investments as of March 31, 2017 and December 31, 2016 accounted for under both the equity and cost methods consisted primarily of minority positions in various cellular telephone limited partnerships and our investment in CoBank. It is impracticable to determine the fair value of these investments. Long-term Debt The fair value of our senior notes was based on quoted market prices, and the fair value of borrowings under our credit facility was determined using current market rates for similar types of borrowing arrangements. We have categorized the long-term debt as Level 2 within the fair value hierarchy.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2017
LONG-TERM DEBT
LONG-TERM DEBT	6. LONG-TERM DEBT Long-term debt, presented net of unamortized discounts, consisted of the following: March 31, December 31, (In thousands) 2017 2016 Senior secured credit facility: Term loan 5, net of discount of $4,505 and $4,662 at March 31, 2017 and December 31, 2016, respectively $ 890,995 $ 893,088 Revolving loan — — 6.50% Senior notes due 2022, net of discount of $4,147 and $4,302 at March 31, 2017 and December 31, 2016, respectively 495,853 495,698 Capital leases 17,638 16,857 1,404,486 1,405,643 Less: current portion of long-term debt and capital leases (15,830) (14,922) Less: deferred debt issuance costs (13,385) (13,967) Total long-term debt $ 1,375,271 $ 1,376,754 Credit Agreement In October 2016, the Company, through certain of its wholly owned subsidiaries, entered into a Third Amended and Restated Credit Agreement with various financial institutions (the “Credit Agreement”). The Credit Agreement consists of a $110.0 million revolving credit facility and initial term loans in the aggregate amount of $900.0 million (“Term 5”). The Credit Agreement also includes an incremental term loan facility which provides the ability to borrow up to $300.0 million of incremental term loans subject to certain terms and conditions and to borrow more than $300.0 million provided that its senior secured leverage ratio would not exceed 3.00:1.00. Borrowings under the senior secured credit facility are secured by substantially all of the assets of the Company and its subsidiaries, with the exception of Consolidated Communications of Illinois Company and our majority-owned subsidiary, East Texas Fiber Line Incorporated. The Term 5 loan was issued in an original aggregate principal amount of $900.0 million with a maturity date of October 5, 2023, but is subject to earlier maturity on March 31, 2022 if the Company’s unsecured Senior Notes due in October 2022 are repaid in full or redeemed in full on or prior to March 31, 2022. The Term 5 loan contains an original issuance discount of 0.25% or $2.3 million, which is being amortized over the term of the loan. The Term 5 loan requires quarterly principal payments of $2.25 million and has an interest rate of 3.00% plus the London Interbank Offered Rate (“LIBOR“) subject to a 1.00% LIBOR floor. Our revolving credit facility has a maturity date of October 5, 2021 and an applicable margin (at our election) of between 2.50% and 3.25% for LIBOR-based borrowings or between 1.50% and 2.25% for alternate base rate borrowings, depending on our total net leverage ratio. Based on our leverage ratio as of March 31, 2017, the borrowing margin for the three month period ending June 30, 2017 will be at a weighted-average margin of 3.25% f or a LIBOR-based loan or 2.25% for an alternate base rate loan. The applicable borrowing margin for the revolving credit facility is adjusted quarterly to reflect the leverage ratio from the prior quarter-end. As of March 31, 2017 and December 31, 2016, there were no outstanding borrowings under the revolving credit facility. A stand-by letter of credit of $1.6 million, issued primarily in connection with the Company’s insurance coverage, was outstanding under our revolving credit facility as of March 31, 2017. The stand-by letter of credit is renewable annually and reduces the borrowing availability under the revolving credit facility. As of March 31, 2017, $108.4 million was available for borrowing under the revolving credit facility. The weighted-average interest rate on outstanding borrowings under our credit facility was 4.00% as of March 31, 2017 and December 31, 2016. Interest is payable at least quarterly . Credit Agreement Covenant Compliance The Credit Agreement contains various provisions and covenants, including, among other items, restrictions on the ability to pay dividends, incur additional indebtedness and issue capital stock. We have agreed to maintain certain financial ratios, including interest coverage and total net leverage ratios, all as defined in the Credit Agreement. As of March 31, 2017, we were in compliance with the Credit Agreement covenants . In general, our Credit Agreement restricts our ability to pay dividends to the amount of our available cash as defined in our Credit Agreement. As of March 31, 2017, and including the $19.7 million dividend declared in February 2017 and paid on May 1, 2017, we had $269.8 million in dividend availability under the credit facility covenant. Under our Credit Agreement, if our total net leverage ratio, as defined in the Credit Agreement, as of the end of any fiscal quarter is greater than 5.10:1.00, we will be required to suspend dividends on our common stock unless otherwise permitted by an exception for dividends that may be paid from the portion of proceeds of any sale of equity not used to fund acquisitions or make other investments. During any dividend suspension period, we will be required to repay debt in an amount equal to 50.0% of any increase in available cash, among other things. In addition, we will not be permitted to pay dividends if an event of default under the Credit Agreement has occurred and is continuing. Among other things, it will be an event of default if our total net leverage ratio or interest coverage ratio as of the end of any fiscal quarter is greater than 5.25:1.00 and less than 2.25:1.00, respectively. As of March 31, 2017, our total net leverage ratio under the Credit Agreement was 4.60:1.00, and our interest coverage ratio was 3.73:1.00. Committed Financing In connection with the execution of the Merger Agreement, in December 2016, the Company entered into two amendments to its Credit Agreement to secure committed financing related to the acquisition of FairPoint. On December 14, 2016, we entered into Amendment No. 1 to the Credit Agreement, to increase the senior secured incremental term loan credit facility under the Credit Agreement from $865.0 million to an aggregate amount of $935.0 million. Fees of $2.5 million paid to the lenders in connection with Amendment No. 1 are reflected as an additional discount on the Term 5 loan and are being amortized over the term of the debt as interest expense. On December 21, 2016, the Company entered into Amendment No. 2 to the Credit Agreement in which a syndicate of lenders has agreed to provide an incremental term loan in an aggregate principal amount of up to $935.0 million under the Credit Agreement (the “Incremental Term Loan”), subject to the satisfaction of certain conditions. The proceeds of the Incremental Term Loan may be used, in part, to repay and redeem certain existing indebtedness of FairPoint and to pay certain fees and expenses in connection with the Merger and the related financing. The terms, conditions and covenants of the Incremental Term Loan are materially consistent with those in the existing Credit Agreement, as described above. The Incremental Term Loan included an original issue discount of 0.50% and has an interest rate of 3.00% plus LIBOR based on the three-month adjusted rate subject to a 1.00% LIBOR floor. Ticking fees began accruing on the Incremental Term Loan commitments on January 15, 2017 at the rate equal to the interest rate of the Incremental Term Loan. In connection with entering into the committed financing, commitment fees of $14.0 million were capitalized in December 2016 and are being amortized to interest expense over the term of the commitment period of one year. Senior Notes 6.50% Senior Notes due 2022 In September 2014, we completed an offering of $200.0 million aggregate principal amount of 6.50% Senior Notes due in October 2022 (the “Existing Notes”). The Existing Notes were priced at par, which resulted in total gross proceeds of $200.0 million. On June 8, 2015, we completed an additional offering of $300.0 million in aggregate principal amount of 6.50% Senior Notes due 2022 (the “New Notes” and together with the Existing Notes, the “Senior Notes”). The New Notes were issued as additional notes under the same indenture pursuant to which the Existing Notes were previously issued on in September 2014. The New Notes were priced at 98.26% of par with a yield to maturity of 6.80% and resulted in total gross proceeds of approximately $294.8 million, excluding accrued interest. The discount is being amortized using the effective interest method over the term of the notes. The Senior Notes mature on October 1, 2022 and interest is payable semi-annually on April 1 and October 1 of each year. Consolidated Communications, Inc. (“CCI”) is the primary obligor under the Senior Notes, and we and certain of our wholly‑owned subsidiaries have fully and unconditionally guaranteed the Senior Notes. The Senior Notes are senior unsecured obligations of the Company. In October 2015, we completed an exchange offer to register all of the Senior Notes under the Securities Act of 1933 (“Securities Act”). The terms of the registered Senior Notes are substantially identical to those of the Senior Notes prior to the exchange, except that the Senior Notes are now registered under the Securities Act and the transfer restrictions and registration rights previously applicable to the Senior Notes no longer apply to the registered Senior Notes. The exchange offer did not impact the aggregate principal amount or the remaining terms of the Senior Notes outstanding. Senior Notes Covenant Compliance Subject to certain exceptions and qualifications, the indenture governing the Senior Notes contains customary covenants that, among other things, limits CCI’s and its restricted subsidiaries’ ability to: incur additional debt or issue certain preferred stock; pay dividends or make other distributions on capital stock or prepay subordinated indebtedness; purchase or redeem any equity interests; make investments; create liens; sell assets; enter into agreements that restrict dividends or other payments by restricted subsidiaries; consolidate, merge or transfer all or substantially all of its assets; engage in transactions with its affiliates; or enter into any sale and leaseback transactions. The indenture also contains customary events of default. Among other matters, the Senior Notes indenture provides that CCI may not pay dividends or make other restricted payments, as defined in the indenture, if its total net leverage ratio is 4.75:1.00 or greater. This ratio is calculated differently than the comparable ratio under the Credit Agreement; among other differences, it takes into account, on a pro forma basis, synergies expected to be achieved as a result of certain acquisitions not yet reflected in historical results. As of March 31, 2017, this ratio was 4.64:1.00. If this ratio is met, dividends and other restricted payments may be made from cumulative consolidated cash flow since April 1, 2012, less 1.75 times fixed charges, less dividends and other restricted payments made since May 30, 2012. Dividends may be paid and other restricted payments may also be made from a “basket” of $50.0 million, none of which has been used to date, and pursuant to other exceptions identified in the indenture. Since dividends of $351.2 million have been paid since May 30, 2012, including the quarterly dividend declared in February 2017 and paid on May 1, 2017, there was $402.6 million of the $753.8 million of cumulative consolidated cash flow since May 30, 2012 available to pay dividends as of March 31, 2017. As of March 31, 2017, the Company was in compliance with all terms, conditions and covenants under the indenture governing the Senior Notes. Capital Leases We lease certain facilities and equipment under various capital leases which expire between 2017 and 2021. As of March 31, 2017, the present value of the minimum remaining lease commitments was approximately $17.6 million, of which $6.8 million was due and payable within the next twelve months. The leases require total remaining rental payments of $19.6 million as of March 31, 2017, of which $3.4 million will be paid to LATEL LLC, a related party entity.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	7. DERIVATIVE FINANCIAL INSTRUMENTS We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in interest rates. Our interest rate swap agreements effectively convert a portion of our floating-rate debt to a fixed‑rate basis, thereby reducing the impact of interest rate changes on future cash interest payments. Derivative financial instruments are recorded at fair value in our condensed consolidated balance sheets. We may designate certain of our interest rate swaps as cash flow hedges of our expected future interest payments. For derivative instruments designated as a cash flow hedge, the effective portion of the change in the fair value is recognized as a component of accumulated other comprehensive income (loss) (“AOCI”) and is recognized as an adjustment to earnings over the period in which the hedged item impacts earnings. When an interest rate swap agreement terminates, any resulting gain or loss is recognized over the shorter of the remaining original term of the hedging instrument or the remaining life of the underlying debt obligation. If a derivative instrument is de-designated, the remaining gain or loss in AOCI on the date of de-designation is amortized to earnings over the remaining term of the hedging instrument. For derivative financial instruments that are not designated as a hedge, including those that have been de-designated, changes in fair value are recognized on a current basis in earnings. The ineffective portion of the change in fair value of any hedging derivative is recognized immediately in earnings. Cash flows from hedging activities are classified under the same category as the cash flows from the hedged items in our condensed consolidated statements of cash flows. The following interest rate swaps were outstanding as of March 31, 2017: Notional (In thousands) Amount 2017 Balance Sheet Location Fair Value Cash Flow Hedges: Fixed to 1-month floating LIBOR (with floor) $ Other assets $ Fixed to 1-month floating LIBOR (with floor) $ Accrued expense Fixed to 1-month floating LIBOR (with floor) $ Other long-term liabilities Total Fair Values $ The following interest rate swaps were outstanding as of December 31, 2016: Notional (In thousands) Amount 2016 Balance Sheet Location Fair Value Cash Flow Hedges: Fixed to 1-month floating LIBOR (with floor) $ Other assets $ Fixed to 1-month floating LIBOR (with floor) $ Accrued expense Fixed to 1-month floating LIBOR (with floor) $ Other long-term liabilities Total Fair Values $ The counterparties to our various swaps are highly rated financial institutions. None of the swap agreements provide for either us or the counterparties to post collateral nor do the agreements include any covenants related to the financial condition of Consolidated or the counterparties. The swaps of any counterparty that is a lender, as defined in our credit facility, are secured along with the other creditors under the credit facility. Each of the swap agreements provides that, in the event of a bankruptcy filing by either Consolidated or the counterparty, any amounts owed between the two parties would be offset in order to determine the net amount due between parties. In conjunction with the refinancing of our Credit Agreement in October 2016 as discussed in Note 6, the interest rate swaps were simultaneously de-designated and re-designated as cash flow hedges of future anticipated interest payments associated with our variable rate debt. The balance of the unrealized loss included in AOCI as of the date the swaps were de-designated is being amortized to earnings over the remaining terms of the respective interest rate swap agreements. The interest rate swap agreements mature on various dates through September 2019. As of March 31, 2017 and December 31, 2016, the total pre-tax deferred gain (loss) related to our interest rate swap agreements included in AOCI was less than $0.1 million and $(0.2) million, respectively. The estimated amount of losses included in AOCI as of March 31, 2017 that will be recognized in earnings in the next twelve months is approximately $0.9 million. Information regarding our cash flow hedge transactions is as follows: Quarter Ended March 31, (In thousands) 2017 2016 Unrealized loss recognized in AOCI, pretax $ (91) $ (700) Deferred losses reclassified from AOCI to interest expense $ (333) $ (243) Gain recognized in interest expense from ineffectiveness $ 235 $ —

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
EQUITY
EQUITY	8. EQUITY Share-Based Compensation The following table summarizes total compensation costs recognized for share-based payments during the quarters ended March 31, 2017 and 2016: Quarter Ended March 31, (In thousands) 2017 2016 Restricted stock $ $ Performance shares Total $ $ Share-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations . As of March 31, 2017, total unrecognized compensation cost related to non-vested Restricted Stock Awards (“RSAs”) and Performance Share Awards (“PSAs”) was $6.9 million and will be recognized over a weighted-average period of approximately 1.9 years. The following table summarizes the RSA and PSA activity for the three-month period ended March 31, 2017: RSAs PSAs Weighted Weighted Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Non-vested shares outstanding - January 1, 2017 93,662 $ 22.34 109,160 $ 20.12 Shares granted 124,100 $ 23.12 5,204 $ 24.00 Shares vested (4,708) $ 22.30 — $ — Shares forfeited, cancelled or retired (1,838) $ 22.58 (3,507) $ 20.68 Non-vested shares outstanding - March 31, 2017 211,216 $ 22.99 110,857 $ 20.94 Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, net of tax, by component for the quarter ended March 31, 2017: Pension and Post-Retirement Derivative (In thousands) Obligations Instruments Total Balance at December 31, 2016 $ (47,150) $ (127) $ (47,277) Other comprehensive income before reclassifications — (56) (56) Amounts reclassified from accumulated other comprehensive loss 862 205 1,067 Net current period other comprehensive income 862 149 1,011 Balance at March 31, 2017 $ (46,288) $ 22 $ (46,266) The following table summarizes reclassifications from accumulated other comprehensive loss for the quarters ended March 31, 2017 and 2016: Quarter Ended March 31, Affected Line Item in the (In thousands) 2017 2016 Statement of Income Amortization of pension and post-retirement items: Prior service credit $ $ (a) Actuarial loss (a) Total before tax Tax benefit $ $ Net of tax Loss on cash flow hedges: Interest rate derivatives $ $ Interest expense Tax benefit $ $ Net of tax (a) These items are included in the components of net periodic benefit cost for our pension and other post-retirement benefit plans. See Note 9 for further discussion regarding our pension and other post-retirement benefit plans.

PENSION PLAN AND OTHER POST-RET

PENSION PLAN AND OTHER POST-RETIREMENT BENEFITS	3 Months Ended
	Mar. 31, 2017
PENSION PLAN AND OTHER POST-RETIREMENT BENEFITS
PENSION PLAN AND OTHER POST-RETIREMENT BENEFITS	9. PENSION PLAN AND OTHER POST-RETIREMENT BENEFITS Defined Benefit Plans We sponsor a qualified defined benefit pension plan (“Retirement Plan”) that is non-contributory covering certain of our hourly employees under collective bargaining agreements who fulfill minimum age and service requirements. Certain salaried employees are also covered by the Retirement Plan, although these benefits have previously been frozen. The Retirement Plan is closed to all new entrants. Benefits for eligible participants under collective bargaining agreements are accrued based on a cash balance benefit plan. We also have two non-qualified supplemental retirement plans (the “Supplemental Plans” and, together with the Retirement Plan, the “Pension Plans”). The Supplemental Plans provide supplemental retirement benefits to certain former employees by providing for incremental pension payments to partially offset the reduction of the amount that would have been payable under the qualified defined benefit pension plans if it were not for limitations imposed by federal income tax regulations. The Supplemental Plans have previously been frozen so that no person is eligible to become a new participant. These plans are unfunded and have no assets. The benefits paid under the Supplemental Plans are paid from the general operating funds of the Company. The following table summarizes the components of net periodic pension cost for our Pension Plans for the quarters ended March 31, 2017 and 2016: Quarter Ended March 31, (In thousands) 2017 2016 Service cost $ $ 86 Interest cost 4,073 Expected return on plan assets (5,159) Net amortization loss 1,355 Net prior service credit amortization (114) Net periodic pension cost $ $ 241 Other Non-qualified Deferred Compensation Agreements We are also liable for deferred compensation agreements with former members of the board of directors and certain other former employees of acquired companies. Depending on the plan, benefits are payable in monthly or annual installments for a period of time based on the terms of the agreement, which range from five years up to the life of the participant or to the beneficiary upon the death of the participant, and may begin as early as age 55. Participants accrue no new benefits as these plans had previously been frozen. Payments related to the deferred compensation agreements totaled approximately $0.1 million for each of the quarters ended March 31, 2017 and 2016 . The net present value of the remaining obligations was approximately $1.9 million and $2.0 million as of March 31, 2017 and December 31, 2016, respectively, and is included in pension and other post-retirement benefit obligations in the accompanying condensed consolidated balance sheets . We also maintain 25 life insurance policies on certain of the participating former directors and employees. We recognized $0.2 million in life insurance proceeds as other non-operating income in the quarter ended March 31, 2016. We did not recognize any life insurance proceeds during the quarter ended March 31, 2017. The excess of the cash surrender value of the remaining life insurance policies over the notes payable balances related to these policies totaled $2.3 million and $2.2 million as of March 31, 2017 and December 31, 2016, respectively. These amounts are included in investments in the accompanying condensed consolidated balance sheets. Cash principal payments for the policies and any proceeds from the policies are classified as operating activities in the condensed consolidated statements of cash flows. Post-retirement Benefit Obligations We sponsor various healthcare and life insurance plans (“Post-retirement Plans”) that provide post-retirement medical and life insurance benefits to certain groups of retired employees. Certain plans have previously been frozen so that no person is eligible to become a new participant. Retirees share in the cost of healthcare benefits, making contributions that are adjusted periodically—either based upon collective bargaining agreements or because total costs of the program have changed. Covered expenses for retiree health benefits are paid as they are incurred. Post-retirement life insurance benefits are fully insured. A majority of the healthcare plans are unfunded and have no assets, and benefits are paid from the general operating funds of the Company. However, a plan acquired in the purchase of another company is funded by assets that are separately designated within the Retirement Plan for the sole purpose of providing payments of retiree medical benefits for this specific plan. The following table summarizes the components of the net periodic cost for our Post-retirement Plans for the quarters ended March 31, 2017 and 2016: Quarter Ended March 31, (In thousands) 2017 2016 Service cost $ $ 150 Interest cost 505 Expected return on plan assets (37) Net amortization gain (43) — Net prior service credit amortization (130) Net periodic post-retirement benefit cost $ $ 488 Contributions We expect to contribute approximately $6.4 million to our Pension Plans and $3.9 million to our Post-retirement Plans in 2017. As of March 31, 2017, we have contributed $0.1 million and $1.0 million of the annual contribution to the Pension Plans and Post-retirement Plans, respectively.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
INCOME TAXES
INCOME TAXES	10. INCOME TAXES During the three months ended March 31, 2017, we recorded a decrease of $0.1 million to our unrecognized tax benefits, which reduced our tax expense by less than $0.1 million due to reductions for tax positions in prior years. As of March 31, 2017, we did not have any unrecognized tax benefits. As of December 31, 2016, the amount of unrecognized tax benefits was $0.1 million. We do not expect any material changes in our unrecognized tax benefits during the remainder of 2017. Our practice is to recognize interest and penalties related to income tax matters in interest expense and selling, general and administrative expenses, respectively. As of March 31, 2017, we did not have a liability for interest or penalties and had no material interest or penalty expense. The periods subject to examination for our federal return are years 2013 through 2015. The periods subject to examination for our state returns are years 2012 through 2015. We are not currently under examination by federal or state taxing authorities. Our effective tax rate was 37.0 % and 38.6% for the quarters ended March 31, 2017 and 2016, respectively . The effective tax rate differed from the federal and state statutory rates primarily due to various permanent income tax differences and differences in allocable income for the Company’s state tax filings.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES Litigation, Regulatory Proceedings and Other Contingencies FairPoint On February 7, 2017, an alleged class action complaint was filed by a purported stockholder of FairPoint in the United States District Court for the Western District of North Carolina (Case No. 3:17-cv-51) against us, FairPoint and its directors. Among other things, the complaint alleges that the disclosures in our Form S-4 Registration Statement filed with the SEC on January 26, 2017, in connection with the Merger Agreement, are materially incomplete and misleading in violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended. The plaintiff sought to enjoin us from consummating the merger with FairPoint on the agreed-upon terms or, alternatively, to rescind the merger in the event that we consummate the merger, in addition to damages and attorney fees and costs. On March 7, 2017, the plaintiff filed a motion for preliminary injunction to enjoin FairPoint’s special meeting of stockholders to approve the proposed Merger. On March 17, 2017, the plaintiff voluntarily dismissed the action with prejudice as to his individual claims and without prejudice as to the claims of the putative class. No payment, promise of payment, or other consideration has been offered or made to the plaintiff or his attorneys. On March 3, 2017, an alleged class action complaint was filed by a purported stockholder of the Company in the Court of Chancery of the State of Delaware captioned Vento v. Currey, et al. (Case No. 2017-0157) against the members of the Company’s board of directors. The lawsuit related to our Merger Agreement with FairPoint. Among other things, the lawsuit alleged that the members of the Company’s board of directors breached their fiduciary duties in connection with soliciting approval of the Company’s stockholders of the issuance of the Company’s common stock to stockholders of FairPoint in the merger (the “Merger”) contemplated by the Merger Agreement (the “Stockholder Vote”) because Amendment No. 1 to the Registration Statement on Form S-4 filed by the Company on February 24, 2017 failed to disclose allegedly material information relating to the retention, compensation and financial incentives of a financial advisor to the Company in connection with the proposed Merger. The plaintiff sought, among other relief, to enjoin the Stockholder Vote. On March 14, 2017, the plaintiff filed a motion for preliminary injunction to enjoin the Stockholder Vote until such time as certain information concerning the financial interests of the Company’s financial advisor in the proposed Merger were fully disclosed. On March 22, 2017, the Court of Chancery of the State of Delaware issued a letter decision stating that it would preliminarily enjoin the Stockholder Vote (the “Injunction”) until five days after such time as the Company had supplemented its disclosures to include a clear and direct explanation of the amount of financing-related fees that the Company’s financial advisor, Morgan Stanley & Co. LLC, or any of its affiliates stands to receive in connection with the Merger if the Merger is consummated. In response to the Injunction, in order to provide a clear and direct explanation of the amount of financing-related fees that Morgan Stanley & Co. LLC or any of its affiliates stands to receive in connection with the Merger, and to provide additional information to its stockholders, the Company supplemented the Joint Proxy Statement/Prospectus filed in connection with the Merger Agreement as described in the Company’s Current Report on Form 8-K filed on March 22, 2017 at a time and in a manner that would not cause any delay of the special meeting of the Company’s stockholders, which was scheduled to held on March 28, 2017, or the Merger. Subsequently on March 22, 2017, the Injunction was vacated, and the lawsuit was dismissed in a timely manner that did not cause any delay of the special meeting of the Company’s stockholders, which was held on March 28, 2017, as scheduled. Access Charges In 2014, Sprint Communications Company L.P. (“Sprint”) along with MCI Communications Services, Inc. and Verizon Select Services Inc. (collectively, “Verizon”) filed lawsuits against us and many other Local Exchange Carriers (“LECs”) throughout the country challenging the switched access charges LECs assessed Sprint and Verizon, as interexchange carriers (“IXCs”), for certain calls originating from or terminating to mobile devices that are routed to or from us through these IXCs. The plaintiffs’ position is based on their interpretation of federal law, among other things, and they are seeking refunds of past access charges paid for such calls. The disputed amounts total $2.4 million and cover periods dating back to 2006. CenturyLink, Inc. and its LEC subsidiaries (collectively “CenturyLink”), requested that the U.S. Judicial Panel on Multidistrict Litigation (the “Panel”), which has the authority to transfer the pretrial proceedings to a single court for multiple civil cases involving common questions of fact, transfer and consolidate these cases in one court. The Panel granted CenturyLink’s request and ordered that these cases be transferred to and centralized in the U.S. District Court for the Northern District of Texas (the “Court”). On November 17, 2015, the Court dismissed these complaints based on its interpretation of federal law and held that LECs could assess switched access charges for the calls at issue (the “November 2015 Order”). The November 2015 Order also allowed the plaintiffs to amend their complaints to assert claims that arise under state laws independent of the dismissed claims asserted under federal law. While Verizon did not make such a filing, on May 16, 2016, Sprint filed amended complaints and on June 30, 2016, the LEC defendants named in such complaints filed, among other things, a Joint Motion to Dismiss them, which the Court granted on May 3, 2017. Relatedly, in 2015, numerous LECs across the country, including a number of our LEC entities, filed complaints in various U.S. district courts against Level 3 Communications, LLC and certain of its affiliates (collectively, “Level 3”) for its failure to pay access charges for certain calls that the November 2015 Order held could be assessed by LECs. The total amount our LEC entities seek from Level 3 in this proceeding is at least approximately $0.3 million, excluding late payment charges/penalties and attorneys’ fees. These complaint cases were transferred to and included in the above-referenced consolidated proceeding before the Court. Level 3 filed a Motion to Dismiss these complaints that, in part, repeated arguments the November 2015 Order rejected. On March 22, 2017, the Court denied Level 3’s Motion to Dismiss (“March 2017 Order”). While the Court adopted a scheduling order on July 19, 2016 for the remaining proceedings in the consolidated cases (including, among other things, dates for the parties to informally resolve damage claims, i.e., the amounts in dispute and late payment charges), the scheduling order was stayed, on January 11, 2017. However, by May 23, 2017, the parties are required to submit a joint status report proposing the appropriate procedures and deadlines for the case. Once the proceedings before the Court become final, including resolution of any counterclaims, Sprint, Verizon, and Level 3 are expected to appeal the Court’s November 2015 and March 2017 Orders. Absent a decision by an appellate court that overturns these Orders, it will be difficult for Sprint and Verizon to succeed on any claims against us or for Level 3 to avoid paying the access charges it disputes in this litigation. Therefore, we do not expect any potential settlement or judgment to have an adverse material impact on our financial results or cash flows. Gross Receipts Tax Two of our subsidiaries, Consolidated Communications of Pennsylvania Company LLC (“CCPA”) and Consolidated Communications Enterprise Services Inc. (“CCES”), have, at various times, received assessment notices from the Commonwealth of Pennsylvania Department of Revenue (“DOR”) increasing the amounts owed for Pennsylvania Gross Receipts Tax, and/or have had audits performed for the tax years of 2008 through 2013. In addition, a re-audit was performed on CCPA for the 2010 calendar year. Pennsylvania generally imposes tax on the gross receipts received from telephone messages transmitted wholly within the state and telephone messages transmitted in interstate commerce where such messages originate or terminate in Pennsylvania, and the charges for such messages are billed to a service address in the state. In a 2013 decision involving Verizon Pennsylvania, Inc. (“Verizon Pennsylvania”), the Commonwealth Court of Pennsylvania held that the gross receipts tax applies to Verizon Pennsylvania’s installation of private phone lines because the sole purpose of private lines is to transmit messages. Similarly, the court held that directory assistance is subject to the gross receipts tax because it makes the transmission of messages more effective and satisfactory. However, the court did not find Verizon Pennsylvania’s nonrecurring charges for the installation of telephone lines, moves of and changes to telephone lines and services and repairs of telephone lines to be subject to the gross receipts tax as no telephone messages are transmitted when Verizon Pennsylvania performs these nonrecurring services. In November 2015, on appeal, the Supreme Court of Pennsylvania held in Verizon Pennsylvania, Inc. v. Commonwealth of Pennsylvania , 127 A.3d 745 (Pa. 2015), that charges for the installation of private phone lines, charges for directory assistance and certain nonrecurring charges were all subject to the state’s gross receipt tax. The Supreme Court of Pennsylvania found that all of the services, including those related to nonrecurring charges, in some way made transmission more effective or communication more satisfactory even though such services did not involve actual transmission. This is a partial reversal of the 2013 Commonwealth Court of Pennsylvania decision described above, which had ruled that while the charges for the installation of private phone lines and directory assistance were subject to the state’s gross receipts tax, the nonrecurring charges in question were not. As neither reargument nor reconsideration was sought, the case is now final. For the CCES subsidiary, the total additional tax liability calculated by the auditors for the calendar years 2008 through 2013 is approximately $4.1 million. In May 2016, the Commonwealth of Pennsylvania Board of Finance and Revenue reviewed our appeals of cases for the audits in calendar years 2008 through 2013 and held that the charges in question were subject to the state’s gross receipts tax. In June 2016, we filed appeals with the Pennsylvania Commonwealth Court for the audits in calendar years 2008 through 2013. These appeals are presently awaiting fact development, and no action is expected to occur until second quarter 2017. For the CCPA subsidiary, the total additional tax liability calculated by the DOR auditors for the calendar years 2008 through 2013 (using the re-audited 2010 number) is approximately $5.0 million. In May 2016, the Commonwealth of Pennsylvania Board of Finance and Revenue reviewed our appeals of cases for the audits in calendar years 2008 through 2013 and held that the charges in question were subject to the state’s gross receipts tax. In June 2016, we filed appeals with the Pennsylvania Commonwealth Court for the audits in calendar years 2008 through 2013. These appeals are presently awaiting fact development, and no action is expected to occur until second quarter 2017. In October and December 2016, CCPA and CCES received Audit Assessment Notices from the DOR increasing the amounts owed for Pennsylvania Gross Receipts Tax for the 2014 tax year. The total additional tax liability calculated by the DOR auditors for CCPA and CCES for 2014 is approximately $0.7 million and $0.9 million, respectively. We filed Petitions for Reassessment with the DOR’s Board of Appeals in January 2017 for CCPA and in March 2017 for CCES, contesting the audit assessments. By Interlocutory Orders issued in April 2017, the DOR’s Board of Appeals stayed the matters pending final action of the Commonwealth Court in litigation involving the same issues related to CCPA’s and CCES’s 2008 through 2013 tax periods. We believe that certain of the DOR’s findings regarding the Company’s additional tax liability for the calendar years 2008 through 2014, for which we have filed appeals, continue to lack merit. However, in light of the Supreme Court of Pennsylvania’s decision, we have accrued $1.4 million and $1.2 million for our CCES and CCPA subsidiaries, respectively. These accruals also include the Company’s best estimate of the potential 2014 and 2015 additional tax liabilities. We do not believe that the outcome of these claims will have a material adverse impact on our financial results or cash flows. From time to time we may be involved in litigation that we believe is of the type common to companies in our industry, including regulatory issues. While the outcome of these claims cannot be predicted with certainty, we do not believe that the outcome of any of these legal matters will have a material adverse impact on our business, results of operations, financial condition or cash flows.

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL INFORMATION	3 Months Ended
	Mar. 31, 2017
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
CONDENSED CONSOLIDATING FINANCIAL INFORMATION	12. CONDENSED CONSOLIDATING FINANCIAL INFORMATION Consolidated Communications, Inc. is the primary obligor under the unsecured Senior Notes. We and substantially all of our subsidiaries, excluding Consolidated Communications of Illinois Company, have jointly and severally guaranteed the Senior Notes. All of the subsidiary guarantors are 100% direct or indirect wholly owned subsidiaries of the parent, and all guarantees are full, unconditional and joint and several with respect to principal, interest and liquidated damages, if any. As such, we present condensed consolidating balance sheets as of March 31, 2017 and December 31, 2016 and condensed consolidating statements of operations and cash flows for the quarters ended March 31, 2017 and 2016 for each of the Company (Parent), Consolidated Communications, Inc. (Subsidiary Issuer), guarantor subsidiaries and other non-guarantor subsidiaries with any consolidating adjustments. See Note 6 for more information regarding our Senior Notes. Condensed Consolidating Balance Sheets (In thousands) March 31, 2017 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 26,616 $ 13 $ — $ — $ 26,629 Accounts receivable, net — — 43,354 6,488 (72) 49,770 Income taxes receivable 21,399 4,570 — — (1,911) 24,058 Prepaid expenses and other current assets — 9,350 19,442 222 — 29,014 Total current assets 21,399 40,536 62,809 6,710 (1,983) 129,471 Property, plant and equipment, net — — 991,632 56,164 — 1,047,796 Intangibles and other assets: Investments — 8,495 97,540 — — 106,035 Investments in subsidiaries 2,191,263 2,028,324 14,224 — (4,233,811) — Goodwill — — 690,696 66,181 — 756,877 Other intangible assets — — 19,434 9,087 — 28,521 Advances due to/from affiliates, net — 1,525,822 441,658 93,333 (2,060,813) — Deferred income taxes 19,175 — — — (19,175) — Other assets 147 1,564 7,789 40 — 9,540 Total assets $ 2,231,984 $ 3,604,741 $ 2,325,782 $ 231,515 $ (6,315,782) $ 2,078,240 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ — $ 6,436 $ — $ — $ 6,436 Advance billings and customer deposits — — 25,023 1,521 — 26,544 Dividends payable 19,653 — — — — 19,653 Accrued compensation — — 15,557 1,081 — 16,638 Accrued interest — 24,291 435 — — 24,726 Accrued expense 45 14,492 35,057 1,042 (72) 50,564 Income tax payable — — 333 1,578 (1,911) — Current portion of long term debt and capital lease obligations — 9,000 6,637 193 — 15,830 Total current liabilities 19,698 47,783 89,478 5,415 (1,983) 160,391 Long-term debt and capital lease obligations — 1,364,463 10,257 551 — 1,375,271 Advances due to/from affiliates, net 2,060,813 — — — (2,060,813) — Deferred income taxes — 1,077 232,927 27,896 (19,175) 242,725 Pension and postretirement benefit obligations — — 107,750 21,228 — 128,978 Other long-term liabilities — 154 13,495 472 — 14,121 Total liabilities 2,080,511 1,413,477 453,907 55,562 (2,081,971) 1,921,486 Shareholders’ equity: Common Stock 507 — 17,411 30,000 (47,411) 507 Other shareholders’ equity 150,966 2,191,264 1,849,183 145,953 (4,186,400) 150,966 Total Consolidated Communications Holdings, Inc. shareholders’ equity 151,473 2,191,264 1,866,594 175,953 (4,233,811) 151,473 Noncontrolling interest — — 5,281 — — 5,281 Total shareholders’ equity 151,473 2,191,264 1,871,875 175,953 (4,233,811) 156,754 Total liabilities and shareholders’ equity $ 2,231,984 $ 3,604,741 $ 2,325,782 $ 231,515 $ (6,315,782) $ 2,078,240 Condensed Consolidating Balance Sheet (In thousands) December 31, 2016 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 27,064 $ 13 $ — $ — $ 27,077 Accounts receivable, net — — 48,911 7,347 (42) 56,216 Income taxes receivable 20,756 — 885 (25) — 21,616 Prepaid expenses and other current assets — 12,856 15,310 126 — 28,292 Total current assets 20,756 39,920 65,119 7,448 (42) 133,201 Property, plant and equipment, net — — 999,416 55,770 — 1,055,186 Intangibles and other assets: Investments — 8,338 97,883 — — 106,221 Investments in subsidiaries 2,192,556 2,019,692 14,279 — (4,226,527) — Goodwill — — 690,696 66,181 — 756,877 Other intangible assets — — 22,525 9,087 — 31,612 Advances due to/from affiliates, net — 1,524,906 427,720 87,171 (2,039,797) — Deferred income taxes 17,150 — — — (17,150) — Other assets — 1,562 8,058 41 — 9,661 Total assets $ 2,230,462 $ 3,594,418 $ 2,325,696 $ 225,698 $ (6,283,516) $ 2,092,758 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ — $ 6,766 $ — $ — $ 6,766 Advance billings and customer deposits — — 24,981 1,457 — 26,438 Dividends payable 19,605 — — — — 19,605 Accrued compensation — — 16,002 969 — 16,971 Accrued interest — 10,824 436 — — 11,260 Accrued expense 36 15,057 38,192 880 (42) 54,123 Current portion of long term debt and capital lease obligations — 9,000 5,735 187 — 14,922 Total current liabilities 19,641 34,881 92,112 3,493 (42) 150,085 Long-term debt and capital lease obligations — 1,365,820 10,332 602 — 1,376,754 Advances due to/from affiliates, net 2,039,797 — — — (2,039,797) — Deferred income taxes — 984 232,668 27,796 (17,150) 244,298 Pension and postretirement benefit obligations — — 109,185 21,608 — 130,793 Other long-term liabilities 70 216 13,807 480 — 14,573 Total liabilities 2,059,508 1,401,901 458,104 53,979 (2,056,989) 1,916,503 Shareholders’ equity: Common Stock 506 — 17,411 30,000 (47,411) 506 Other shareholders’ equity 170,448 2,192,517 1,844,880 141,719 (4,179,116) 170,448 Total Consolidated Communications Holdings, Inc. shareholders’ equity 170,954 2,192,517 1,862,291 171,719 (4,226,527) 170,954 Noncontrolling interest — — 5,301 — — 5,301 Total shareholders’ equity 170,954 2,192,517 1,867,592 171,719 (4,226,527) 176,255 Total liabilities and shareholders’ equity $ 2,230,462 $ 3,594,418 $ 2,325,696 $ 225,698 $ (6,283,516) $ 2,092,758 Condensed Consolidating Statements of Operations (In thousands) Quarter Ended March 31, 2017 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated Net revenues $ — $ — $ 158,832 $ 14,289 $ (3,186) $ 169,935 Operating expenses: Cost of services and products (exclusive of depreciation and amortization) — — 71,921 2,549 (3,079) 71,391 Selling, general and administrative expenses 745 10 32,658 3,127 (107) 36,433 Acquisition and other transaction costs 1,329 — — — — 1,329 Depreciation and amortization — — 39,520 2,675 — 42,195 Operating income (loss) (2,074) (10) 14,733 5,938 — 18,587 Other income (expense): Interest expense, net of interest income 6 (29,487) (206) 16 — (29,671) Intercompany interest income (expense) — 14,727 (14,708) (19) — — Investment income — 157 5,121 — — 5,278 Equity in earnings of subsidiaries, net (2,305) 7,738 (55) — (5,378) — Other, net — 1 (66) (8) — (73) Income (loss) before income taxes (4,373) (6,874) 4,819 5,927 (5,378) (5,879) Income tax expense (benefit) (688) (4,569) 1,230 1,853 — (2,174) Net income (loss) (3,685) (2,305) 3,589 4,074 (5,378) (3,705) Less: net income (loss) attributable to noncontrolling interest — — (20) — — (20) Net income (loss) attributable to Consolidated Communications Holdings, Inc. $ (3,685) $ (2,305) $ 3,609 $ 4,074 $ (5,378) $ (3,685) Total comprehensive income (loss) attributable to common shareholders $ $ $ $ $ $ Quarter Ended March 31, 2016 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated Net revenues $ — $ (23) $ 177,255 $ 14,887 $ (3,273) $ 188,846 Operating expenses: Cost of services and products (exclusive of depreciation and amortization) — — 79,714 3,173 (3,167) 79,720 Selling, general and administrative expenses 896 — 36,600 3,286 (106) 40,676 Depreciation and amortization — — 41,861 2,279 — 44,140 Operating income (loss) (896) (23) 19,080 6,149 — 24,310 Other income (expense): Interest expense, net of interest income 39 (18,435) (248) (2) — (18,646) Intercompany interest income (expense) (31,887) 33,824 (2,699) 762 — — Investment income — 166 7,031 — — 7,197 Equity in earnings of subsidiaries, net 28,719 18,822 142 — (47,683) — Other, net — — 26 (12) — 14 Income (loss) before income taxes (4,025) 34,354 23,332 6,897 (47,683) 12,875 Income tax expense (benefit) (11,874) 5,635 8,711 2,501 — 4,973 Net income (loss) 7,849 28,719 14,621 4,396 (47,683) 7,902 Less: net income attributable to noncontrolling interest — — 53 — — 53 Net income (loss) attributable to Consolidated Communications Holdings, Inc. $ 7,849 $ 28,719 $ 14,568 $ 4,396 $ (47,683) $ 7,849 Total comprehensive income (loss) attributable to common shareholders $ $ $ $ $ $ Condensed Consolidating Statements of Cash Flows (In thousands) Three Months Ended March 31, 2017 Parent Subsidiary Issuer Guarantors Non-Guarantors Consolidated Net cash (used in) provided by operating activities $ (1,476) $ 2,710 $ 41,366 $ 9,118 $ 51,718 Cash flows from investing activities: Purchases of property, plant and equipment — — (26,089) (2,936) (29,025) Proceeds from sale of assets — — 18 25 43 Net cash provided by (used in) investing activities — — (26,071) (2,911) (28,982) Cash flows from financing activities: Proceeds from issuance of long-term debt — 7,000 — — 7,000 Payment of capital lease obligation — — (1,244) (45) (1,289) Payment on long-term debt — (9,250) — — (9,250) Share repurchases for minimum tax withholding (41) — — — (41) Dividends on common stock (19,604) — — — (19,604) Transactions with affiliates, net 21,121 (908) (14,051) (6,162) — Net cash provided by (used in) financing activities 1,476 (3,158) (15,295) (6,207) (23,184) Increase (decrease) in cash and cash equivalents — (448) — — (448) Cash and cash equivalents at beginning of period — 27,064 13 — 27,077 Cash and cash equivalents at end of period $ — $ 26,616 $ 13 $ — $ 26,629 Three Months Ended March 31, 2016 Parent Subsidiary Issuer Guarantors Non-Guarantors Consolidated Net cash (used in) provided by operating activities $ (31,790) $ 24,290 $ 58,162 $ 8,879 $ 59,541 Cash flows from investing activities: Purchases of property, plant and equipment — — (26,033) (2,655) (28,688) Proceeds from sale of assets — — 7 7 14 Net cash used in investing activities — — (26,026) (2,648) (28,674) Cash flows from financing activities: Payment of capital lease obligation — — (365) (22) (387) Payment on long-term debt — (2,275) — — (2,275) Share repurchases for minimum tax withholding (71) — — — (71) Dividends on common stock (19,551) — — — (19,551) Transactions with affiliates, net 51,412 (4,314) (38,518) (8,580) — Net cash provided by (used in) financing activities 31,790 (6,589) (38,883) (8,602) (22,284) Increase (decrease) in cash and cash equivalents — 17,701 (6,747) (2,371) 8,583 Cash and cash equivalents at beginning of period — 5,877 7,629 2,372 15,878 Cash and cash equivalents at end of period $ — $ 23,578 $ 882 $ 1 $ 24,461

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business and Basis of Accounting	Business and Basis of Accounting Consolidated Communications Holdings, Inc. (the “Company”, “we” or “our”) is a holding company with operating subsidiaries (collectively “Consolidated”) that provide integrated communications services in consumer, commercial and carrier channels in California, Illinois, Iowa, Kansas, Minnesota, Missouri, North Dakota, Pennsylvania, South Dakota, Texas and Wisconsin. We operate as both an Incumbent Local Exchange Carrier (“ILEC”) and a Competitive Local Exchange Carrier (“CLEC”), dependent upon the territory served. We provide a wide range of services and products that include local and long-distance service, high-speed broadband Internet access, video services, Voice over Internet Protocol (“VoIP”), private line services, carrier grade access services, network capacity services over our regional fiber optic networks, cloud data services, data center and managed services, directory publishing and equipment sales. As of March 31, 2017, we had approximately 453 thousand voice connections, 477 thousand data connections and 103 thousand video connections. In the opinion of management, the accompanying unaudited condensed consolidated balance sheets and related condensed consolidated statements of operations, comprehensive income (loss) and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States (“US GAAP” or “GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying condensed consolidated financial statements through the date of issuance. Management believes that the disclosures made are adequate to make the information presented not misleading. Interim results are not necessarily indicative of results for a full year. The information presented in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and the accompanying notes to the financial statements (“Notes”) thereto included in our 2016 Annual Report on Form 10-K filed with the SEC.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Effective January 1, 2017, we adopted the Accounting Standards Update No. 2016-09 (“ASU 2016-09 ”), Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 amends several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, calculation of compensation expense and classification on the statement of cash flows. ASU 2016-09 requires excess tax benefits and deficiencies resulting from stock-based compensation awards vesting to be recognized as income tax expense or benefit in the income statement on a prospective basis. Previously, these amounts were recognized in additional paid-in capital. The impact of this change was not material for the quarter ended March 31, 2017. In addition, ASU 2016-09 requires excess tax benefits and deficiencies to be excluded from the assumed proceeds in the calculation of diluted shares. This requirement did not impact diluted loss per share for the quarter ended March 31, 2017 as the diluted shares were excluded from the computation of loss per share. Due to our net loss for the quarter ended March 31, 2017, the inclusion of these shares would have had an anti-dilutive impact. ASU 2016-09 removed the requirement to delay recognition of excess tax benefits until it reduces current income taxes payable. This update is required to be applied on a modified retrospective basis, which resulted in a cumulative effect adjustment of $2.2 million to increase opening retained earnings for the cumulative impact of excess tax benefits related to our net operating loss carryforwards. This amount was subsequently transferred into additional paid-in capital at March 31, 2017. ASU 2016-09 permits the election of an accounting policy for forfeitures of share-based payment awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. We have elected to recognize forfeitures as they occur and the cumulative impact of this change was not material to our condensed consolidated financial statements and related disclosures. In March 2017, the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update No. 2017-07 (“ASU 2017-07”), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires presentation of the service cost component of net periodic benefit cost within the same income statement line item as other compensation costs arising from services rendered by relevant employees during the period, and presentation of the other cost components of net periodic benefit cost separately and outside of the income from operations subtotal. In addition, only the service cost component is eligible for capitalization. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of the annual period and should be applied retrospectively for the presentation of the service cost and prospectively for the capitalization of the service cost component in assets. We will adopt this update effective January 1, 2018 and do not expect a material impact on our condensed consolidated financial statements and related disclosures. In February 2017, the FASB issued the Accounting Standards Update No. 2017-05 (“ASU 2017-05”), Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU 2017-05 provides additional guidance to (i) clarify the scope for recognizing gains and losses from the transfer of nonfinancial assets and in substance nonfinancial assets in contracts with non-customers, and (ii) clarify the accounting for partial sales of nonfinancial assets. ASU 2017-05 is effective for annual and interim periods beginning after December 15, 2017 and can be applied using the retrospective or modified retrospective approach. We plan to adopt ASU 2017-05 as of January 1, 2018 and are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In January 2017, FASB issued the Accounting Standards Update No. 2017-04 (“ASU 2017-04”), Simplifying the Accounting for Goodwill Impairment . ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Under updated guidance, the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount and an impairment charge recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new guidance is effective for annual and interim goodwill tests in fiscal years beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted for annual and interim goodwill impairment testing performed after January 1, 2017. We are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued the Accounting Standards Update No. 2017-01 (“ASU 2017-01”), Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business and establishes a screening process to determine whether an integrated set of assets and activities acquired is deemed the acquisition of a business or the acquisition of assets. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017 and should be applied prospectively, with early adoption permitted. We do not expect that adoption of ASU 2017-01 will have a material impact on our condensed consolidated financial statements and related disclosures. In October 2016, the FASB issued the Accounting Standards Update No. 2016-16 (“ASU 2016-16”), Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 eliminates the existing exception prohibiting the recognition of the income tax consequences for intra-entity asset transfers until the asset has been sold to an outside party. Under ASU 2016-16, entities will be required to recognize the income tax consequences of intra-entity asset transfers other than inventory when the transfer occurs. ASU 2016-16 is effective on a modified retrospective basis for annual and interim periods beginning after December 15, 2017, with early adoption permitted. We currently anticipate adopting this update effective January 1, 2018 and do not expect a material impact on our condensed consolidated financial statements and related disclosures. In August 2016, the FASB issued the Accounting Standards Update No. 2016-15 (“ASU 2016-15”), Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 provides guidance concerning the classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and should be applied retrospectively, with early adoption permitted. We are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued the Accounting Standards Update No. 2016-13 (“ASU 2016-13”), Measurement of Credit Losses on Financial Instruments . ASU 2016-13 establishes the new “current expected credit loss” model for measuring and recognizing credit losses on financial assets based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts. The new guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods beginning after December 15, 2018. We are currently evaluating the impact this update will have on our condensed consolidated financial statements and related disclosures. In February 2016, the FASB issued the Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases . ASU 2016-02 establishes a new lease accounting model for leases. Lessees will be required to recognize most leases on their balance sheets but lease expense will be recognized on the income statement in a manner similar to existing requirements. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the population of our leases and anticipate that most of our operating lease commitments will be recognized on our consolidated balance sheets. We have not yet made a decision on the timing and method of adoption and are continuing to assess all potential impacts of this update on our condensed consolidated financial statements and related disclosures. In May 2014, FASB issued the Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) , which will replace the current revenue recognition requirements in U.S. GAAP. The core principle of ASU 2014-09 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 requires disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Two transition methods are permitted under ASU 2014-09, the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, the FASB issued the Accounting Standards Update No. 2015-14 (“ASU 2015-14”), Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 for all entities by one year. Accordingly, ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2017, at which point we plan to adopt the standard. In 2016, we established a cross-functional implementation team consisting of representatives from across all of our functional areas. We are using a bottoms-up approach to assess the impact of ASU 2014-09 on our revenue contracts by reviewing our current accounting policies and practices to identify potential differences that would result from applying the requirements of this update. While we are continuing to assess all potential impacts of this update, we currently believe that the most significant impact relates to the deferral of contract acquisition costs, which we currently expense as incurred but under ASU 2014-09 will generally be capitalized and amortized over the contract performance period. Currently, we anticipate adopting this update using the full retrospective method to restate each prior reporting period presented.

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
EARNINGS (LOSS) PER SHARE
Schedule of basic and diluted EPS	Quarter Ended March 31, (In thousands, except per share amounts) 2017 2016 Net income (loss) $ (3,705) $ 7,902 Less: net income (loss) attributable to noncontrolling interest (20) 53 Income (loss) attributable to common shareholders before allocation of earnings to participating securities (3,685) 7,849 Less: earnings allocated to participating securities 49 131 Net income (loss) attributable to common shareholders, after earnings allocated to participating securities $ (3,734) $ 7,718 Weighted-average number of common shares outstanding 50,410 50,289 Net income (loss) per common share attributable to common shareholders - basic and diluted $ (0.07) $ 0.15

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
INVESTMENTS
Schedule of investments	March 31, December 31, (In thousands) 2017 2016 Cash surrender value of life insurance policies $ 2,336 $ 2,156 Cost method investments: GTE Mobilnet of South Texas Limited Partnership (2.34% interest) 21,450 21,450 Pittsburgh SMSA Limited Partnership (3.60% interest) 22,950 22,950 CoBank, ACB Stock 8,295 8,138 Other 200 200 Equity method investments: GTE Mobilnet of Texas RSA #17 Limited Partnership (20.51% interest) 16,400 17,160 Pennsylvania RSA 6(I) Limited Partnership (16.67% interest) 6,768 6,540 Pennsylvania RSA 6(II) Limited Partnership (23.67% interest) 27,636 27,627 Totals $ 106,035 $ 106,221
Summary of combined unaudited results of operations and financial position of our three equity investments in the cellular limited partnerships	Quarter Ended March 31, (In thousands) 2017 2016 Total revenues $ 80,020 $ 82,657 Income from operations 21,288 25,470 Net income before taxes 20,897 25,063 Net income 20,897 25,063 March 31, December 31, (In thousands) 2017 2016 Current assets $ 64,907 $ 64,083 Non-current assets 90,239 89,651 Current liabilities 21,814 21,985 Non-current liabilities 51,676 51,836 Partnership equity 81,656 79,913

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
FAIR VALUE MEASUREMENTS
Schedule of interest rate swap liabilities measured at fair value on a recurring basis	As of March 31, 2017 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Long-term interest rate swap assets $ 433 $ - $ 433 $ - Current interest rate swap liabilities (350) - (350) - Long-term interest rate swap liabilities (154) - (154) - Total $ (71) $ - $ (71) $ - As of December 31, 2016 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (In thousands) Total (Level 1) (Level 2) (Level 3) Long-term interest rate swap assets $ 398 $ - $ 398 $ - Current interest rate swap liabilities (453) - (453) - Long-term interest rate swap liabilities (216) - (216) - Total $ (271) $ - $ (271) $ -
Schedule of other financial instruments that are not carried at fair value but which require fair value disclosure	As of March 31, 2017 As of December 31, 2016 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Investments, equity basis $ n/a $ n/a Investments, at cost $ n/a $ n/a Long-term debt, excluding capital leases $ $ $ $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2017
LONG-TERM DEBT
Schedule of components of long-term debt, presented net of unamortized discounts	March 31, December 31, (In thousands) 2017 2016 Senior secured credit facility: Term loan 5, net of discount of $4,505 and $4,662 at March 31, 2017 and December 31, 2016, respectively $ 890,995 $ 893,088 Revolving loan — — 6.50% Senior notes due 2022, net of discount of $4,147 and $4,302 at March 31, 2017 and December 31, 2016, respectively 495,853 495,698 Capital leases 17,638 16,857 1,404,486 1,405,643 Less: current portion of long-term debt and capital leases (15,830) (14,922) Less: deferred debt issuance costs (13,385) (13,967) Total long-term debt $ 1,375,271 $ 1,376,754

DERIVATIVE FINANCIAL INSTRUME24

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of outstanding interest rate swaps	The following interest rate swaps were outstanding as of March 31, 2017: Notional (In thousands) Amount 2017 Balance Sheet Location Fair Value Cash Flow Hedges: Fixed to 1-month floating LIBOR (with floor) $ Other assets $ Fixed to 1-month floating LIBOR (with floor) $ Accrued expense Fixed to 1-month floating LIBOR (with floor) $ Other long-term liabilities Total Fair Values $ The following interest rate swaps were outstanding as of December 31, 2016: Notional (In thousands) Amount 2016 Balance Sheet Location Fair Value Cash Flow Hedges: Fixed to 1-month floating LIBOR (with floor) $ Other assets $ Fixed to 1-month floating LIBOR (with floor) $ Accrued expense Fixed to 1-month floating LIBOR (with floor) $ Other long-term liabilities Total Fair Values $
Schedule of gains and losses on cash flow hedge transactions	Quarter Ended March 31, (In thousands) 2017 2016 Unrealized loss recognized in AOCI, pretax $ (91) $ (700) Deferred losses reclassified from AOCI to interest expense $ (333) $ (243) Gain recognized in interest expense from ineffectiveness $ 235 $ —

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
EQUITY
Summary of RSA and PSA activity	RSAs PSAs Weighted Weighted Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Non-vested shares outstanding - January 1, 2017 93,662 $ 22.34 109,160 $ 20.12 Shares granted 124,100 $ 23.12 5,204 $ 24.00 Shares vested (4,708) $ 22.30 — $ — Shares forfeited, cancelled or retired (1,838) $ 22.58 (3,507) $ 20.68 Non-vested shares outstanding - March 31, 2017 211,216 $ 22.99 110,857 $ 20.94
Summary of total compensation costs recognized for share-based payments	Quarter Ended March 31, (In thousands) 2017 2016 Restricted stock $ $ Performance shares Total $ $
Schedule of changes in accumulated other comprehensive loss, net of tax, by component	Pension and Post-Retirement Derivative (In thousands) Obligations Instruments Total Balance at December 31, 2016 $ (47,150) $ (127) $ (47,277) Other comprehensive income before reclassifications — (56) (56) Amounts reclassified from accumulated other comprehensive loss 862 205 1,067 Net current period other comprehensive income 862 149 1,011 Balance at March 31, 2017 $ (46,288) $ 22 $ (46,266)
Summary of reclassifications from accumulated other comprehensive loss	Quarter Ended March 31, Affected Line Item in the (In thousands) 2017 2016 Statement of Income Amortization of pension and post-retirement items: Prior service credit $ $ (a) Actuarial loss (a) Total before tax Tax benefit $ $ Net of tax Loss on cash flow hedges: Interest rate derivatives $ $ Interest expense Tax benefit $ $ Net of tax

PENSION PLAN AND OTHER POST-R26

PENSION PLAN AND OTHER POST-RETIREMENT BENEFITS (Tables)	3 Months Ended
	Mar. 31, 2017
Defined Benefit Plans
Post-retirement benefit obligation
Schedule of the components of net periodic pension cost recognized in the consolidated statements of income	Quarter Ended March 31, (In thousands) 2017 2016 Service cost $ $ 86 Interest cost 4,073 Expected return on plan assets (5,159) Net amortization loss 1,355 Net prior service credit amortization (114) Net periodic pension cost $ $ 241
Post-retirement Benefit Obligations
Post-retirement benefit obligation
Schedule of the components of net periodic pension cost recognized in the consolidated statements of income	Quarter Ended March 31, (In thousands) 2017 2016 Service cost $ $ 150 Interest cost 505 Expected return on plan assets (37) Net amortization gain (43) — Net prior service credit amortization (130) Net periodic post-retirement benefit cost $ $ 488

CONDENSED CONSOLIDATING FINAN27

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Schedule of condensed consolidating balance sheets	Condensed Consolidating Balance Sheets (In thousands) March 31, 2017 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 26,616 $ 13 $ — $ — $ 26,629 Accounts receivable, net — — 43,354 6,488 (72) 49,770 Income taxes receivable 21,399 4,570 — — (1,911) 24,058 Prepaid expenses and other current assets — 9,350 19,442 222 — 29,014 Total current assets 21,399 40,536 62,809 6,710 (1,983) 129,471 Property, plant and equipment, net — — 991,632 56,164 — 1,047,796 Intangibles and other assets: Investments — 8,495 97,540 — — 106,035 Investments in subsidiaries 2,191,263 2,028,324 14,224 — (4,233,811) — Goodwill — — 690,696 66,181 — 756,877 Other intangible assets — — 19,434 9,087 — 28,521 Advances due to/from affiliates, net — 1,525,822 441,658 93,333 (2,060,813) — Deferred income taxes 19,175 — — — (19,175) — Other assets 147 1,564 7,789 40 — 9,540 Total assets $ 2,231,984 $ 3,604,741 $ 2,325,782 $ 231,515 $ (6,315,782) $ 2,078,240 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ — $ 6,436 $ — $ — $ 6,436 Advance billings and customer deposits — — 25,023 1,521 — 26,544 Dividends payable 19,653 — — — — 19,653 Accrued compensation — — 15,557 1,081 — 16,638 Accrued interest — 24,291 435 — — 24,726 Accrued expense 45 14,492 35,057 1,042 (72) 50,564 Income tax payable — — 333 1,578 (1,911) — Current portion of long term debt and capital lease obligations — 9,000 6,637 193 — 15,830 Total current liabilities 19,698 47,783 89,478 5,415 (1,983) 160,391 Long-term debt and capital lease obligations — 1,364,463 10,257 551 — 1,375,271 Advances due to/from affiliates, net 2,060,813 — — — (2,060,813) — Deferred income taxes — 1,077 232,927 27,896 (19,175) 242,725 Pension and postretirement benefit obligations — — 107,750 21,228 — 128,978 Other long-term liabilities — 154 13,495 472 — 14,121 Total liabilities 2,080,511 1,413,477 453,907 55,562 (2,081,971) 1,921,486 Shareholders’ equity: Common Stock 507 — 17,411 30,000 (47,411) 507 Other shareholders’ equity 150,966 2,191,264 1,849,183 145,953 (4,186,400) 150,966 Total Consolidated Communications Holdings, Inc. shareholders’ equity 151,473 2,191,264 1,866,594 175,953 (4,233,811) 151,473 Noncontrolling interest — — 5,281 — — 5,281 Total shareholders’ equity 151,473 2,191,264 1,871,875 175,953 (4,233,811) 156,754 Total liabilities and shareholders’ equity $ 2,231,984 $ 3,604,741 $ 2,325,782 $ 231,515 $ (6,315,782) $ 2,078,240 Condensed Consolidating Balance Sheet (In thousands) December 31, 2016 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 27,064 $ 13 $ — $ — $ 27,077 Accounts receivable, net — — 48,911 7,347 (42) 56,216 Income taxes receivable 20,756 — 885 (25) — 21,616 Prepaid expenses and other current assets — 12,856 15,310 126 — 28,292 Total current assets 20,756 39,920 65,119 7,448 (42) 133,201 Property, plant and equipment, net — — 999,416 55,770 — 1,055,186 Intangibles and other assets: Investments — 8,338 97,883 — — 106,221 Investments in subsidiaries 2,192,556 2,019,692 14,279 — (4,226,527) — Goodwill — — 690,696 66,181 — 756,877 Other intangible assets — — 22,525 9,087 — 31,612 Advances due to/from affiliates, net — 1,524,906 427,720 87,171 (2,039,797) — Deferred income taxes 17,150 — — — (17,150) — Other assets — 1,562 8,058 41 — 9,661 Total assets $ 2,230,462 $ 3,594,418 $ 2,325,696 $ 225,698 $ (6,283,516) $ 2,092,758 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ — $ — $ 6,766 $ — $ — $ 6,766 Advance billings and customer deposits — — 24,981 1,457 — 26,438 Dividends payable 19,605 — — — — 19,605 Accrued compensation — — 16,002 969 — 16,971 Accrued interest — 10,824 436 — — 11,260 Accrued expense 36 15,057 38,192 880 (42) 54,123 Current portion of long term debt and capital lease obligations — 9,000 5,735 187 — 14,922 Total current liabilities 19,641 34,881 92,112 3,493 (42) 150,085 Long-term debt and capital lease obligations — 1,365,820 10,332 602 — 1,376,754 Advances due to/from affiliates, net 2,039,797 — — — (2,039,797) — Deferred income taxes — 984 232,668 27,796 (17,150) 244,298 Pension and postretirement benefit obligations — — 109,185 21,608 — 130,793 Other long-term liabilities 70 216 13,807 480 — 14,573 Total liabilities 2,059,508 1,401,901 458,104 53,979 (2,056,989) 1,916,503 Shareholders’ equity: Common Stock 506 — 17,411 30,000 (47,411) 506 Other shareholders’ equity 170,448 2,192,517 1,844,880 141,719 (4,179,116) 170,448 Total Consolidated Communications Holdings, Inc. shareholders’ equity 170,954 2,192,517 1,862,291 171,719 (4,226,527) 170,954 Noncontrolling interest — — 5,301 — — 5,301 Total shareholders’ equity 170,954 2,192,517 1,867,592 171,719 (4,226,527) 176,255 Total liabilities and shareholders’ equity $ 2,230,462 $ 3,594,418 $ 2,325,696 $ 225,698 $ (6,283,516) $ 2,092,758
Schedule of condensed consolidating statements of operations	Condensed Consolidating Statements of Operations (In thousands) Quarter Ended March 31, 2017 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated Net revenues $ — $ — $ 158,832 $ 14,289 $ (3,186) $ 169,935 Operating expenses: Cost of services and products (exclusive of depreciation and amortization) — — 71,921 2,549 (3,079) 71,391 Selling, general and administrative expenses 745 10 32,658 3,127 (107) 36,433 Acquisition and other transaction costs 1,329 — — — — 1,329 Depreciation and amortization — — 39,520 2,675 — 42,195 Operating income (loss) (2,074) (10) 14,733 5,938 — 18,587 Other income (expense): Interest expense, net of interest income 6 (29,487) (206) 16 — (29,671) Intercompany interest income (expense) — 14,727 (14,708) (19) — — Investment income — 157 5,121 — — 5,278 Equity in earnings of subsidiaries, net (2,305) 7,738 (55) — (5,378) — Other, net — 1 (66) (8) — (73) Income (loss) before income taxes (4,373) (6,874) 4,819 5,927 (5,378) (5,879) Income tax expense (benefit) (688) (4,569) 1,230 1,853 — (2,174) Net income (loss) (3,685) (2,305) 3,589 4,074 (5,378) (3,705) Less: net income (loss) attributable to noncontrolling interest — — (20) — — (20) Net income (loss) attributable to Consolidated Communications Holdings, Inc. $ (3,685) $ (2,305) $ 3,609 $ 4,074 $ (5,378) $ (3,685) Total comprehensive income (loss) attributable to common shareholders $ $ $ $ $ $ Quarter Ended March 31, 2016 Parent Subsidiary Issuer Guarantors Non-Guarantors Eliminations Consolidated Net revenues $ — $ (23) $ 177,255 $ 14,887 $ (3,273) $ 188,846 Operating expenses: Cost of services and products (exclusive of depreciation and amortization) — — 79,714 3,173 (3,167) 79,720 Selling, general and administrative expenses 896 — 36,600 3,286 (106) 40,676 Depreciation and amortization — — 41,861 2,279 — 44,140 Operating income (loss) (896) (23) 19,080 6,149 — 24,310 Other income (expense): Interest expense, net of interest income 39 (18,435) (248) (2) — (18,646) Intercompany interest income (expense) (31,887) 33,824 (2,699) 762 — — Investment income — 166 7,031 — — 7,197 Equity in earnings of subsidiaries, net 28,719 18,822 142 — (47,683) — Other, net — — 26 (12) — 14 Income (loss) before income taxes (4,025) 34,354 23,332 6,897 (47,683) 12,875 Income tax expense (benefit) (11,874) 5,635 8,711 2,501 — 4,973 Net income (loss) 7,849 28,719 14,621 4,396 (47,683) 7,902 Less: net income attributable to noncontrolling interest — — 53 — — 53 Net income (loss) attributable to Consolidated Communications Holdings, Inc. $ 7,849 $ 28,719 $ 14,568 $ 4,396 $ (47,683) $ 7,849 Total comprehensive income (loss) attributable to common shareholders $ $ $ $ $ $
Schedule of condensed consolidating statements of cash flows	Condensed Consolidating Statements of Cash Flows (In thousands) Three Months Ended March 31, 2017 Parent Subsidiary Issuer Guarantors Non-Guarantors Consolidated Net cash (used in) provided by operating activities $ (1,476) $ 2,710 $ 41,366 $ 9,118 $ 51,718 Cash flows from investing activities: Purchases of property, plant and equipment — — (26,089) (2,936) (29,025) Proceeds from sale of assets — — 18 25 43 Net cash provided by (used in) investing activities — — (26,071) (2,911) (28,982) Cash flows from financing activities: Proceeds from issuance of long-term debt — 7,000 — — 7,000 Payment of capital lease obligation — — (1,244) (45) (1,289) Payment on long-term debt — (9,250) — — (9,250) Share repurchases for minimum tax withholding (41) — — — (41) Dividends on common stock (19,604) — — — (19,604) Transactions with affiliates, net 21,121 (908) (14,051) (6,162) — Net cash provided by (used in) financing activities 1,476 (3,158) (15,295) (6,207) (23,184) Increase (decrease) in cash and cash equivalents — (448) — — (448) Cash and cash equivalents at beginning of period — 27,064 13 — 27,077 Cash and cash equivalents at end of period $ — $ 26,616 $ 13 $ — $ 26,629 Three Months Ended March 31, 2016 Parent Subsidiary Issuer Guarantors Non-Guarantors Consolidated Net cash (used in) provided by operating activities $ (31,790) $ 24,290 $ 58,162 $ 8,879 $ 59,541 Cash flows from investing activities: Purchases of property, plant and equipment — — (26,033) (2,655) (28,688) Proceeds from sale of assets — — 7 7 14 Net cash used in investing activities — — (26,026) (2,648) (28,674) Cash flows from financing activities: Payment of capital lease obligation — — (365) (22) (387) Payment on long-term debt — (2,275) — — (2,275) Share repurchases for minimum tax withholding (71) — — — (71) Dividends on common stock (19,551) — — — (19,551) Transactions with affiliates, net 51,412 (4,314) (38,518) (8,580) — Net cash provided by (used in) financing activities 31,790 (6,589) (38,883) (8,602) (22,284) Increase (decrease) in cash and cash equivalents — 17,701 (6,747) (2,371) 8,583 Cash and cash equivalents at beginning of period — 5,877 7,629 2,372 15,878 Cash and cash equivalents at end of period $ — $ 23,578 $ 882 $ 1 $ 24,461

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Business (Details) item in Thousands, $ in Millions	Mar. 31, 2017USD ($)item
Number of voice connections	453
Number of data connections	477
Number of video connections	103
Accounting Standards Update 2016-09
Cumulative effect adjustment increasing opening retained earnings | $	$ 2.2

ACQUISITION AND DIPOSITIONS (De

ACQUISITION AND DIPOSITIONS (Details) $ / shares in Units, $ in Thousands	Dec. 03, 2016USD ($)statemi$ / shares	Jul. 01, 2016USD ($)	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)$ / shares	Dec. 14, 2016USD ($)	Dec. 13, 2016USD ($)
Agreement and Plan of Merger
Common stock, no par value (in dollars per share) | $ / shares			$ 0.01	$ 0.01
Goodwill			$ 756,877	$ 756,877
Incremental Term Loan Facility
Agreement and Plan of Merger
Aggregate principal amount					$ 935,000	$ 865,000
FairPoint Communications, Inc
Agreement and Plan of Merger
Number of states | state	17
Number of route miles of fiber network | mi	21,000
Number of route miles of fiber network in New England | mi	17,000
Common stock, no par value (in dollars per share) | $ / shares	$ 0.01
Business combination exchange ratio	0.7300
Aggregate price of acquisition	$ 585,300
Assumption of debt at acquisition	917,600
FairPoint Communications, Inc | Incremental Term Loan Facility
Agreement and Plan of Merger
Aggregate principal amount	$ 935,000
Champaign Telephone Company And Big Broadband Services
Agreement and Plan of Merger
Cash paid on acquisition		$ 13,400
Property, plant and equipment		6,900
Intangible assets		1,000
Working capital		800
Goodwill		$ 4,700

ACQUISITION AND DISPOSITIONS -

ACQUISITION AND DISPOSITIONS - Divestiture (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Millions	Dec. 06, 2016USD ($)	Dec. 05, 2016item	Sep. 01, 2016USD ($)
CCIC
Acquisitions
Proceeds from business dispositions			$ 21
Rural communities | item		11
ePlus Technology inc.
Acquisitions
Proceeds from business dispositions	$ 9.2

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic and diluted earnings per share attributable to common shareholders
Net income (loss)	$ (3,705)	$ 7,902
Less: net income (loss) attributable to noncontrolling interest	(20)	53
Income (loss) attributable to common shareholders before allocation of earnings to participating securities	(3,685)	7,849
Less: earnings allocated to participating securities	49	131
Net income (loss) attributable to common shareholders	$ (3,734)	$ 7,718
Weighted-average number of common shares outstanding	50,410	50,289
Basic and diluted earnings (loss) per common share:
Net income (loss) per basic and diluted common share attributable to common shareholders (in dollars per share)	$ (0.07)	$ 0.15
Common shares excluded from computation of potentially dilutive shares because of anti-dilutive effect	200	200

INVESTMENTS - Schedule of Inves

INVESTMENTS - Schedule of Investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)item	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)item
Investments
Cash distributions received from partnerships treated as cost method investees	$ 1,600	$ 2,800
Number of entity's investments which is accounted for using equity method | item	3		3
Cash distributions received from partnerships treated as equity method investees	$ 4,000	$ 4,000
Investments
Cash surrender value of life insurance policies	2,336		$ 2,156
Total	$ 106,035		$ 106,221
GTE Mobilnet of South Texas Limited Partnership
Investments
Ownership percentage of cost method investee	2.34%		2.34%
Investments
Cost method investments:	$ 21,450		$ 21,450
Pittsburgh SMSA Limited Partnership
Investments
Ownership percentage of cost method investee	3.60%		3.60%
Investments
Cost method investments:	$ 22,950		$ 22,950
CoBank, ACB Stock
Investments
Cost method investments:	8,295		8,138
Other
Investments
Cost method investments:	$ 200		$ 200
GTE Mobilnet of Texas RSA #17 Limited Partnership
Investments
Ownership percentage of equity method investee	20.51%		20.51%
Investments
Equity method investments:	$ 16,400		$ 17,160
Pennsylvania RSA 6(I) Limited Partnership
Investments
Ownership percentage of equity method investee	16.67%		16.67%
Investments
Equity method investments:	$ 6,768		$ 6,540
Pennsylvania RSA 6(II) Limited Partnership
Investments
Ownership percentage of equity method investee	23.67%		23.67%
Investments
Equity method investments:	$ 27,636		$ 27,627

INVESTMENTS - Equity Method (De

INVESTMENTS - Equity Method (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Summary of unaudited summarized income statement information
Total revenues	$ 80,020	$ 82,657
Income from operations	21,288	25,470
Net income before taxes	20,897	25,063
Net income	20,897	$ 25,063
Summary of unaudited summarized balance sheet information
Current assets	64,907		$ 64,083
Non-current assets	90,239		89,651
Current liabilities	21,814		21,985
Non-current liabilities	51,676		51,836
Partnership equity	$ 81,656		$ 79,913

FAIR VALUE MEASUREMENTS - Finan

FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Measurements
Long-term interest rate swap assets	$ 433	$ 398
Current interest rate swap liabilities	(350)	(453)
Long-term interest rate swap liabilities	(154)	(216)
Total Fair Value	(71)	(271)
Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Long-term interest rate swap assets	433	398
Current interest rate swap liabilities	(350)	(453)
Long-term interest rate swap liabilities	(154)	(216)
Total Fair Value	$ (71)	$ (271)

FAIR VALUE MEASUREMENTS - Fin35

FAIR VALUE MEASUREMENTS - Financial Instuments Not Carried at FV (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Carrying Value
Fair Value Measurements
Investments, equity basis	$ 50,804	$ 51,327
Investments, at cost	52,895	52,738
Long-term debt	1,386,848	1,388,786
Fair Value
Fair Value Measurements
Long-term debt	$ 1,377,415	$ 1,390,773

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) $ in Thousands	May 01, 2017USD ($)	Dec. 21, 2016	Jun. 08, 2015USD ($)	Feb. 28, 2017USD ($)	Dec. 31, 2016USD ($)item	Oct. 31, 2016USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2017	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2017USD ($)	Dec. 14, 2016USD ($)	Dec. 13, 2016USD ($)
Debt
Total long-term debt					$ 1,405,643				$ 1,404,486	$ 1,405,643
Less: current portion of long-term debt and capital leases					(14,922)				(15,830)	(14,922)
Less: deferred debt issuance costs					(13,967)				(13,385)	(13,967)
Total long-term debt					1,376,754				$ 1,375,271	1,376,754
Leverage ratio						3			4.60
Deferred debt issuance costs					$ 13,967				$ 13,385	13,967
Dividend declared				$ 19,700
Dividends available for distribution									$ 269,800
Percentage of increase in available cash used in repayment of debt during dividend suspension period									50.00%
Interest coverage ratio									3.73
Number of amendments | item					2
Forecast
Debt
Dividend paid	$ 19,700
Minimum
Debt
Interest coverage ratio									2.25
Maximum
Debt
Leverage ratio									5.10
Leverage ratio for an event of default									5.25
Senior Notes 6.50 Percent Due 2022
Debt
Total long-term debt					$ 495,698				$ 495,853	495,698
Unamortized discount					4,302				$ 4,147	$ 4,302
Aggregate principal amount			$ 300,000				$ 200,000
Interest rate (as a percent)			6.50%				6.50%		6.50%
Dividends available for distribution									$ 50,000
Issue price as a percentage of par			98.26%
Yield to maturity (as a percent)			6.80%
Gross proceeds			$ 294,800				$ 200,000
Remaining consolidated cash available for dividends and other restricted payments									$ 402,600
Number of times to be applied to fixed charges for calculating the deduction from cumulative consolidated net cash									1.75
Cumulative consolidated cash available to pay dividends and other restricted payments									$ 753,800
Net leverage ratio									4.64
Senior Notes 6.50 Percent Due 2022 | Forecast
Debt
Dividend declared											$ 351,200
Senior Notes 6.50 Percent Due 2022 | Maximum
Debt
Net leverage ratio									4.75
Senior Secured Credit Facility | Weighted average
Debt
Weighted average interest rate (as a percent)									4.00%	4.00%
Senior secured credit facility - revolving loan
Debt
Maximum borrowing capacity of credit facility						$ 110,000
Amounts outstanding					0				$ 0	$ 0
Stand-by letter of credit outstanding									1,600
Available borrowing capacity									$ 108,400
Senior secured credit facility - revolving loan | LIBOR | Minimum
Debt
Margin (as a percent)									2.50%
Senior secured credit facility - revolving loan | LIBOR | Maximum
Debt
Margin (as a percent)									3.25%
Senior secured credit facility - revolving loan | LIBOR | Weighted average | Forecast
Debt
Margin (as a percent)								3.25%
Senior secured credit facility - revolving loan | Alternate base rate | Minimum
Debt
Margin (as a percent)									1.50%
Senior secured credit facility - revolving loan | Alternate base rate | Maximum
Debt
Margin (as a percent)									2.25%
Senior secured credit facility - revolving loan | Alternate base rate | Weighted average | Forecast
Debt
Margin (as a percent)								2.25%
Term loan 5
Debt
Total long-term debt					893,088				$ 890,995	893,088
Less: deferred debt issuance costs												$ (2,500)
Unamortized discount					4,662	2,300			4,505	4,662
Aggregate principal amount						$ 900,000
Quarterly principal payments required									$ 2,250
Deferred debt issuance costs												2,500
Issue discount (as a percentage)						0.25%
Term loan 5 | LIBOR
Debt
Margin (as a percent)									3.00%
Term loan 5 | LIBOR | Minimum
Debt
Margin (as a percent)									1.00%
Incremental Term Loan Facility
Debt
Aggregate principal amount												$ 935,000	$ 865,000
Additional borrowing capacity						$ 300,000
Margin (as a percent)		3.00%
Issue discount (as a percentage)		0.50%
Commitment fees amortized over commitment period					14,000
Incremental Term Loan Facility | Maximum
Debt
Additional borrowing capacity						$ 300,000
Incremental Term Loan Facility | LIBOR
Debt
Variable rate basis, floor (as a percent)		1.00%
Capital lease agreements
Debt
Total long-term debt					$ 16,857				$ 17,638	$ 16,857

LONG-TERM DEBT - Capital Leases

LONG-TERM DEBT - Capital Leases (Details) $ in Millions	Mar. 31, 2017USD ($)
Capital Leases
Present value of the minimum remaining lease commitments	$ 17.6
Capital lease commitments due and payable within the next 12 months	6.8
Total remaining rental payments	19.6
LATEL
Capital Leases
Total remaining rental payments	$ 3.4

DERIVATIVE FINANCIAL INSTRUME38

DERIVATIVE FINANCIAL INSTRUMENTS - Interest Rate Swaps (Details) $ in Thousands	Mar. 31, 2017USD ($)item	Dec. 31, 2016USD ($)
Derivatives
Number of swap agreements that provide for the entity or the counterparties to post collateral | item	0
Interest rate swaps
Derivatives
Other long-term liabilities	$ (71)	$ (271)
Other Assets. | Cash flow hedges | Fixed to 1-month floating LIBOR (with floor)
Derivatives
Notional amount	100,000	100,000
Other assets	433	398
Accrued Expense | Cash flow hedges | Fixed to 1-month floating LIBOR (with floor)
Derivatives
Notional amount	100,000	100,000
Accrued expense	(350)	(453)
Other Liabilities | Cash flow hedges | Fixed to 1-month floating LIBOR (with floor)
Derivatives
Notional amount	50,000	50,000
Other long-term liabilities	$ (154)	$ (216)

DERIVATIVE FINANCIAL INSTRUME39

DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Interest Rate Derivatives (Details) - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Derivative Instruments
Derivatives
Deferred gain (losses) included in AOCI (pretax)	$ 100		$ (200)
Losses included in AOCI to be recognized in the next 12 months	900
Cash flow hedges
Derivatives
Unrealized loss recognized in AOCI, pretax	(91)	$ (700)
Deferred losses reclassified from AOCI to interest expense	(333)	$ (243)
Gain arising from ineffectiveness reducing interest expense	$ 235

EQUITY - Share-based Compensati

EQUITY - Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Weighted Average Grant Date Fair Value
Pretax stock-based compensation expense	$ 538	$ 892
Unrecognized share-based compensation
Unrecognized compensation costs	$ 6,900
Weighted-average period of recognition	1 year 10 months 24 days
Restricted stock
Shares
Non-vested shares outstanding at the beginning of the period	93,662
Shares granted	124,100
Shares vested	(4,708)
Shares forfeited, cancelled or retired	(1,838)
Non-vested shares outstanding at the end of the period	211,216
Weighted Average Grant Date Fair Value
Non-vested shares outstanding at the beginning of the period (in dollars per share)	$ 22.34
Shares granted (in dollars per share)	23.12
Shares vested (in dollars per share)	22.30
Shares forfeited, cancelled or retired (in dollars per share)	22.58
Non-vested shares outstanding at the end of the period (in dollars per share)	$ 22.99
Pretax stock-based compensation expense	$ 376	561
Performance shares
Shares
Non-vested shares outstanding at the beginning of the period	109,160
Shares granted	5,204
Shares forfeited, cancelled or retired	(3,507)
Non-vested shares outstanding at the end of the period	110,857
Weighted Average Grant Date Fair Value
Non-vested shares outstanding at the beginning of the period (in dollars per share)	$ 20.12
Shares granted (in dollars per share)	24
Shares forfeited, cancelled or retired (in dollars per share)	20.68
Non-vested shares outstanding at the end of the period (in dollars per share)	$ 20.94
Pretax stock-based compensation expense	$ 162	$ 331

EQUITY - Changes in AOCI (Detai

EQUITY - Changes in AOCI (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Accumulated other comprehensive loss, net of tax, by component
Balance at the beginning of the period	$ (47,277)
Other comprehensive income before reclassifications	(56)
Amounts reclassified from accumulated other comprehensive loss	1,067
Net current period other comprehensive income	1,011
Balance at the end of the period	(46,266)
Pension and Post-Retirement Obligations
Accumulated other comprehensive loss, net of tax, by component
Balance at the beginning of the period	(47,150)
Amounts reclassified from accumulated other comprehensive loss	862
Net current period other comprehensive income	862
Balance at the end of the period	(46,288)
Derivative Instruments
Accumulated other comprehensive loss, net of tax, by component
Balance at the beginning of the period	(127)
Other comprehensive income before reclassifications	(56)
Amounts reclassified from accumulated other comprehensive loss	205
Net current period other comprehensive income	149
Balance at the end of the period	$ 22

EQUITY - Reclassification from

EQUITY - Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
EQUITY
Income (loss) before income taxes	$ (5,879)	$ 12,875
Interest expense	(29,671)	(18,646)
Tax benefit (expense)	2,174	(4,973)
Net income (loss)	(3,705)	7,902
Pension and Post-Retirement Obligations
EQUITY
Prior service credit	244	244
Actuarial loss	(1,661)	(1,355)
Income (loss) before income taxes	(1,417)	(1,111)
Tax benefit (expense)	555	432
Net income (loss)	(862)	(679)
Derivative Instruments
EQUITY
Interest expense	(333)	(243)
Tax benefit (expense)	128	94
Net income (loss)	$ (205)	$ (149)

PENSION PLANS AND OTHER POST-RE

PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)employeeitem
Defined Benefit Plans
Defined benefit plans
Expected contribution to pension plan	$ 6,400
Employer contributions	$ 100
Post-retirement Benefit Obligations
Defined benefit plans
Number of persons eligible to become a new participant | employee	0
Plan unfunded status	$ 0
Expected contribution to pension plan	3,900
Employer contributions	$ 1,000
Supplemental Plans
Defined benefit plans
Number of non-qualified plans | item	2
Number of persons eligible to become a new participant | item	0
Plan unfunded status	$ 0

PENSION PLANS AND OTHER POST-44

PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Other Non-qualified Deferred Comp Agreements (Details)	3 Months Ended
	Mar. 31, 2017USD ($)item	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Other Non-qualified Deferred Compensation Agreements
Minimum number of years benefits are payable	5 years
Minimum age at which payments under deferred compensation agreements may begin	55 years
Payment related to deferred compensation agreements	$ 100,000	$ 100,000
Net present value of the remaining obligations	$ 1,900,000		$ 2,000,000
Number of life insurance policies | item	25
Excess of cash surrender value of remaining life insurance policies over notes payable	$ 2,300,000		$ 2,200,000
Proceeds from life insurance policies	$ 0	$ 200,000

PENSION PLANS AND OTHER POST-45

PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Components of net periodic pension cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Benefit Plans
Components of net periodic pension costs
Service cost	$ 87	$ 86
Interest cost	3,613	4,073
Expected return on plan assets	(4,905)	(5,159)
Net amortization loss (gain)	1,704	1,355
Prior service credit amortization	(114)	(114)
Net periodic pension cost	385	241
Post-retirement Benefit Obligations
Components of net periodic pension costs
Service cost	123	150
Interest cost	395	505
Expected return on plan assets	(28)	(37)
Net amortization loss (gain)	(43)
Prior service credit amortization	$ (130)	$ (130)

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
INCOME TAXES
Unrecognized tax benefits	$ 0		$ 100,000
Decrease in liability for unrecognized tax benefits	$ 100,000
Effective tax rate (as a percent)	37.00%	38.60%
Changes in unrecognized tax benefits	$ (100,000)

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Litigation (Details)	Mar. 22, 2017	Mar. 31, 2017USD ($)subsidiaryitem	Dec. 31, 2014USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2013USD ($)
Litigation and Contingencies
Number of subsidiaries that received assessment notice | subsidiary		2
Consolidated Communications Enterprise Services Inc. (CCES)
Litigation and Contingencies
Litigation amount accrued		$ 1,400,000		$ 1,400,000
Consolidated Communications of Pennsylvania Company LLC (CCPA)
Litigation and Contingencies
Litigation amount accrued		$ 1,200,000		1,200,000
Sprint, MCI Communication Services, and Verizon
Litigation and Contingencies
Disputed amount				2,400,000
Number of courts | item		1
FairPoint Communications, Inc
Litigation and Contingencies
Number of days to supplement disclosures and provide explanation	5 days
Payment amount		$ 0
Level 3 Communications
Litigation and Contingencies
Disputed amount				$ 300,000
Assessment by Commonwealth of Pennsylvania Department of Revenue | Consolidated Communications Enterprise Services Inc. (CCES)
Litigation and Contingencies
Total additional tax liability calculated by the auditors			$ 900,000		$ 4,100,000
Assessment by Commonwealth of Pennsylvania Department of Revenue | Consolidated Communications of Pennsylvania Company LLC (CCPA)
Litigation and Contingencies
Total additional tax liability calculated by the auditors			$ 700,000		$ 5,000,000

CONDENSED CONSOLIDATING FINAN48

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 26,629	$ 27,077	$ 24,461	$ 15,878
Accounts receivable, net	49,770	56,216
Income taxes receivable	24,058	21,616
Prepaid expenses and other current assets	29,014	28,292
Total current assets	129,471	133,201
Property, plant and equipment, net	1,047,796	1,055,186
Intangibles and other assets:
Investments	106,035	106,221
Goodwill	756,877	756,877
Other intangible assets	28,521	31,612
Other assets	9,540	9,661
Total assets	2,078,240	2,092,758
Current liabilities:
Accounts payable	6,436	6,766
Advance billings and customer deposits	26,544	26,438
Dividends payable	19,653	19,605
Accrued compensation	16,638	16,971
Accrued interest	24,726	11,260
Accrued expense	50,564	54,123
Current portion of long term debt and capital lease obligations	15,830	14,922
Total current liabilities	160,391	150,085
Long-term debt and capital lease obligations	1,375,271	1,376,754
Deferred income taxes	242,725	244,298
Pension and postretirement benefit obligations	128,978	130,793
Other long-term liabilities	14,121	14,573
Total liabilities	1,921,486	1,916,503
Shareholders' equity:
Common Stock	507	506
Other shareholders' equity	150,966	170,448
Total Consolidated Communications Holdings, Inc. shareholders' equity	151,473	170,954
Noncontrolling interest	5,281	5,301
Total shareholders' equity	156,754	176,255
Total liabilities and shareholders' equity	2,078,240	2,092,758
Eliminations
Current assets:
Accounts receivable, net	(72)	(42)
Income taxes receivable	(1,911)
Total current assets	(1,983)	(42)
Intangibles and other assets:
Investments in subsidiaries	(4,233,811)	(4,226,527)
Advances due to/from affiliates, net	(2,060,813)	(2,039,797)
Deferred income taxes	(19,175)	(17,150)
Total assets	(6,315,782)	(6,283,516)
Current liabilities:
Accrued expense	(72)	(42)
Income tax payable	(1,911)
Total current liabilities	(1,983)	(42)
Advances due to/from affiliates, net	(2,060,813)	(2,039,797)
Deferred income taxes	(19,175)	(17,150)
Total liabilities	(2,081,971)	(2,056,989)
Shareholders' equity:
Common Stock	(47,411)	(47,411)
Other shareholders' equity	(4,186,400)	(4,179,116)
Total Consolidated Communications Holdings, Inc. shareholders' equity	(4,233,811)	(4,226,527)
Total shareholders' equity	(4,233,811)	(4,226,527)
Total liabilities and shareholders' equity	(6,315,782)	(6,283,516)
Parent | Reportable legal entity
Current assets:
Income taxes receivable	21,399	20,756
Total current assets	21,399	20,756
Intangibles and other assets:
Investments in subsidiaries	2,191,263	2,192,556
Deferred income taxes	19,175	17,150
Other assets	147
Total assets	2,231,984	2,230,462
Current liabilities:
Dividends payable	19,653	19,605
Accrued expense	45	36
Total current liabilities	19,698	19,641
Advances due to/from affiliates, net	2,060,813	2,039,797
Other long-term liabilities		70
Total liabilities	2,080,511	2,059,508
Shareholders' equity:
Common Stock	507	506
Other shareholders' equity	150,966	170,448
Total Consolidated Communications Holdings, Inc. shareholders' equity	151,473	170,954
Total shareholders' equity	151,473	170,954
Total liabilities and shareholders' equity	2,231,984	2,230,462
Subsidiary Issuer
Current assets:
Cash and cash equivalents	26,616	27,064	23,578	5,877
Subsidiary Issuer | Reportable legal entity
Current assets:
Cash and cash equivalents	26,616	27,064
Income taxes receivable	4,570
Prepaid expenses and other current assets	9,350	12,856
Total current assets	40,536	39,920
Intangibles and other assets:
Investments	8,495	8,338
Investments in subsidiaries	2,028,324	2,019,692
Advances due to/from affiliates, net	1,525,822	1,524,906
Other assets	1,564	1,562
Total assets	3,604,741	3,594,418
Current liabilities:
Accrued interest	24,291	10,824
Accrued expense	14,492	15,057
Current portion of long term debt and capital lease obligations	9,000	9,000
Total current liabilities	47,783	34,881
Long-term debt and capital lease obligations	1,364,463	1,365,820
Deferred income taxes	1,077	984
Other long-term liabilities	154	216
Total liabilities	1,413,477	1,401,901
Shareholders' equity:
Other shareholders' equity	2,191,264	2,192,517
Total Consolidated Communications Holdings, Inc. shareholders' equity	2,191,264	2,192,517
Total shareholders' equity	2,191,264	2,192,517
Total liabilities and shareholders' equity	$ 3,604,741	3,594,418
Guarantors
Condensed Consolidating Balance Sheet
Ownership interest (as a percent)	100.00%
Current assets:
Cash and cash equivalents	$ 13	13	882	7,629
Guarantors | Reportable legal entity
Current assets:
Cash and cash equivalents	13	13
Accounts receivable, net	43,354	48,911
Income taxes receivable		885
Prepaid expenses and other current assets	19,442	15,310
Total current assets	62,809	65,119
Property, plant and equipment, net	991,632	999,416
Intangibles and other assets:
Investments	97,540	97,883
Investments in subsidiaries	14,224	14,279
Goodwill	690,696	690,696
Other intangible assets	19,434	22,525
Advances due to/from affiliates, net	441,658	427,720
Other assets	7,789	8,058
Total assets	2,325,782	2,325,696
Current liabilities:
Accounts payable	6,436	6,766
Advance billings and customer deposits	25,023	24,981
Accrued compensation	15,557	16,002
Accrued interest	435	436
Accrued expense	35,057	38,192
Income tax payable	333
Current portion of long term debt and capital lease obligations	6,637	5,735
Total current liabilities	89,478	92,112
Long-term debt and capital lease obligations	10,257	10,332
Deferred income taxes	232,927	232,668
Pension and postretirement benefit obligations	107,750	109,185
Other long-term liabilities	13,495	13,807
Total liabilities	453,907	458,104
Shareholders' equity:
Common Stock	17,411	17,411
Other shareholders' equity	1,849,183	1,844,880
Total Consolidated Communications Holdings, Inc. shareholders' equity	1,866,594	1,862,291
Noncontrolling interest	5,281	5,301
Total shareholders' equity	1,871,875	1,867,592
Total liabilities and shareholders' equity	2,325,782	2,325,696
Non-Guarantors
Current assets:
Cash and cash equivalents			$ 1	$ 2,372
Non-Guarantors | Reportable legal entity
Current assets:
Accounts receivable, net	6,488	7,347
Income taxes receivable		(25)
Prepaid expenses and other current assets	222	126
Total current assets	6,710	7,448
Property, plant and equipment, net	56,164	55,770
Intangibles and other assets:
Goodwill	66,181	66,181
Other intangible assets	9,087	9,087
Advances due to/from affiliates, net	93,333	87,171
Other assets	40	41
Total assets	231,515	225,698
Current liabilities:
Advance billings and customer deposits	1,521	1,457
Accrued compensation	1,081	969
Accrued expense	1,042	880
Income tax payable	1,578
Current portion of long term debt and capital lease obligations	193	187
Total current liabilities	5,415	3,493
Long-term debt and capital lease obligations	551	602
Deferred income taxes	27,896	27,796
Pension and postretirement benefit obligations	21,228	21,608
Other long-term liabilities	472	480
Total liabilities	55,562	53,979
Shareholders' equity:
Common Stock	30,000	30,000
Other shareholders' equity	145,953	141,719
Total Consolidated Communications Holdings, Inc. shareholders' equity	175,953	171,719
Total shareholders' equity	175,953	171,719
Total liabilities and shareholders' equity	$ 231,515	$ 225,698

CONDENSED CONSOLIDATING FINAN49

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Net revenues	$ 169,935	$ 188,846
Operating expenses:
Cost of services and products (exclusive of depreciation and amortization)	71,391	79,720
Selling, general and administrative expenses	36,433	40,676
Acquisition and other transaction costs	1,329
Depreciation and amortization	42,195	44,140
Income from operations	18,587	24,310
Other income (expense):
Interest expense, net of interest income	(29,671)	(18,646)
Investment income	5,278	7,197
Other, net	(73)	14
Income (loss) before income taxes	(5,879)	12,875
Income tax expense (benefit)	(2,174)	4,973
Net income (loss)	(3,705)	7,902
Less: net income (loss) attributable to noncontrolling interest	(20)	53
Net income (loss) attributable to common shareholders	(3,685)	7,849
Total comprehensive income (loss) attributable to common shareholders	(2,674)	8,247
Eliminations
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Net revenues	(3,186)	(3,273)
Operating expenses:
Cost of services and products (exclusive of depreciation and amortization)	(3,079)	(3,167)
Selling, general and administrative expenses	(107)	(106)
Other income (expense):
Equity in earnings of subsidiaries, net	(5,378)	(47,683)
Income (loss) before income taxes	(5,378)	(47,683)
Net income (loss)	(5,378)	(47,683)
Net income (loss) attributable to common shareholders	(5,378)	(47,683)
Total comprehensive income (loss) attributable to common shareholders	(7,251)	(48,760)
Parent | Reportable legal entity
Operating expenses:
Selling, general and administrative expenses	745	896
Acquisition and other transaction costs	1,329
Income from operations	(2,074)	(896)
Other income (expense):
Interest expense, net of interest income	6	39
Intercompany interest income (expense)		(31,887)
Equity in earnings of subsidiaries, net	(2,305)	28,719
Income (loss) before income taxes	(4,373)	(4,025)
Income tax expense (benefit)	(688)	(11,874)
Net income (loss)	(3,685)	7,849
Net income (loss) attributable to common shareholders	(3,685)	7,849
Total comprehensive income (loss) attributable to common shareholders	(2,674)	8,247
Subsidiary Issuer | Reportable legal entity
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Net revenues		(23)
Operating expenses:
Selling, general and administrative expenses	10
Income from operations	(10)	(23)
Other income (expense):
Interest expense, net of interest income	(29,487)	(18,435)
Intercompany interest income (expense)	14,727	33,824
Investment income	157	166
Equity in earnings of subsidiaries, net	7,738	18,822
Other, net	1
Income (loss) before income taxes	(6,874)	34,354
Income tax expense (benefit)	(4,569)	5,635
Net income (loss)	(2,305)	28,719
Net income (loss) attributable to common shareholders	(2,305)	28,719
Total comprehensive income (loss) attributable to common shareholders	(1,294)	29,117
Guarantors | Reportable legal entity
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Net revenues	158,832	177,255
Operating expenses:
Cost of services and products (exclusive of depreciation and amortization)	71,921	79,714
Selling, general and administrative expenses	32,658	36,600
Depreciation and amortization	39,520	41,861
Income from operations	14,733	19,080
Other income (expense):
Interest expense, net of interest income	(206)	(248)
Intercompany interest income (expense)	(14,708)	(2,699)
Investment income	5,121	7,031
Equity in earnings of subsidiaries, net	(55)	142
Other, net	(66)	26
Income (loss) before income taxes	4,819	23,332
Income tax expense (benefit)	1,230	8,711
Net income (loss)	3,589	14,621
Less: net income (loss) attributable to noncontrolling interest	(20)	53
Net income (loss) attributable to common shareholders	3,609	14,568
Total comprehensive income (loss) attributable to common shareholders	4,311	15,114
Non-Guarantors | Reportable legal entity
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Net revenues	14,289	14,887
Operating expenses:
Cost of services and products (exclusive of depreciation and amortization)	2,549	3,173
Selling, general and administrative expenses	3,127	3,286
Depreciation and amortization	2,675	2,279
Income from operations	5,938	6,149
Other income (expense):
Interest expense, net of interest income	16	(2)
Intercompany interest income (expense)	(19)	762
Other, net	(8)	(12)
Income (loss) before income taxes	5,927	6,897
Income tax expense (benefit)	1,853	2,501
Net income (loss)	4,074	4,396
Net income (loss) attributable to common shareholders	4,074	4,396
Total comprehensive income (loss) attributable to common shareholders	$ 4,234	$ 4,529

CONDENSED CONSOLIDATING FINAN50

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net cash (used in) provided by operating activities	$ 51,718	$ 59,541
Cash flows from investing activities:
Purchases of property, plant and equipment	(29,025)	(28,688)
Proceeds from sale of assets	43	14
Net cash used in investing activities	(28,982)	(28,674)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	7,000
Payment of capital lease obligations	(1,289)	(387)
Payment on long-term debt	(9,250)	(2,275)
Share repurchases for minimum tax withholding	(41)	(71)
Dividends on common stock	(19,604)	(19,551)
Net cash used in financing activities	(23,184)	(22,284)
Increase (decrease) in cash and cash equivalents	(448)	8,583
Cash and cash equivalents at beginning of period	27,077	15,878
Cash and cash equivalents at end of period	26,629	24,461
Parent
Cash flows from operating activities
Net cash (used in) provided by operating activities	(1,476)	(31,790)
Cash flows from financing activities:
Share repurchases for minimum tax withholding	(41)	(71)
Dividends on common stock	(19,604)	(19,551)
Transactions with affiliates, net	21,121	51,412
Net cash used in financing activities	1,476	31,790
Subsidiary Issuer
Cash flows from operating activities
Net cash (used in) provided by operating activities	2,710	24,290
Cash flows from financing activities:
Proceeds from issuance of long-term debt	7,000
Payment on long-term debt	(9,250)	(2,275)
Transactions with affiliates, net	(908)	(4,314)
Net cash used in financing activities	(3,158)	(6,589)
Increase (decrease) in cash and cash equivalents	(448)	17,701
Cash and cash equivalents at beginning of period	27,064	5,877
Cash and cash equivalents at end of period	26,616	23,578
Subsidiary Issuer | Reportable legal entity
Cash flows from financing activities:
Cash and cash equivalents at beginning of period	27,064
Cash and cash equivalents at end of period	26,616
Guarantors
Cash flows from operating activities
Net cash (used in) provided by operating activities	41,366	58,162
Cash flows from investing activities:
Purchases of property, plant and equipment	(26,089)	(26,033)
Proceeds from sale of assets	18	7
Net cash used in investing activities	(26,071)	(26,026)
Cash flows from financing activities:
Payment of capital lease obligations	(1,244)	(365)
Transactions with affiliates, net	(14,051)	(38,518)
Net cash used in financing activities	(15,295)	(38,883)
Increase (decrease) in cash and cash equivalents		(6,747)
Cash and cash equivalents at beginning of period	13	7,629
Cash and cash equivalents at end of period	13	882
Guarantors | Reportable legal entity
Cash flows from financing activities:
Cash and cash equivalents at beginning of period	13
Cash and cash equivalents at end of period	13
Non-Guarantors
Cash flows from operating activities
Net cash (used in) provided by operating activities	9,118	8,879
Cash flows from investing activities:
Purchases of property, plant and equipment	(2,936)	(2,655)
Proceeds from sale of assets	25	7
Net cash used in investing activities	(2,911)	(2,648)
Cash flows from financing activities:
Payment of capital lease obligations	(45)	(22)
Transactions with affiliates, net	(6,162)	(8,580)
Net cash used in financing activities	$ (6,207)	(8,602)
Increase (decrease) in cash and cash equivalents		(2,371)
Cash and cash equivalents at beginning of period		2,372
Cash and cash equivalents at end of period		$ 1