Basis of Presentation and Other Information | Basis of Presentation and Other Information Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position have been included. The results of operations for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. These financial statements should be read in conjunction with the Company’s 2015 Form 10-K. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. Cash The Company’s cash was held in market rate savings accounts and non-interest bearing deposit accounts. The total held in market rate savings accounts at March 31, 2016 and December 31, 2015 was $19.7 million and $39.7 million , respectively. The remaining $54.6 million and $33.0 million of cash at March 31, 2016 and December 31, 2015 , respectively, was held in non-interest bearing deposit accounts. Restricted Cash The Company is eligible to receive up to $5.0 million in connection with its winning bid in the Connect America Fund's Mobility Fund Phase I Auction ("Auction 901"). Pursuant to the terms of Auction 901, the Company was required to obtain a Letter of Credit (“LOC”) for the benefit of the Universal Service Administrative Company (“USAC”) to cover each disbursement plus the amount of the performance default penalty ( 10% of the total eligible award). USAC may draw upon the LOC in the event the Company fails to demonstrate the required coverage by the applicable deadline in 2016. The Company obtained the LOC in the amount of $2.2 million , representing the first disbursement of $1.7 million received in September 2013, plus the performance default penalty of $0.5 million . In accordance with the terms of the LOC, the Company deposited $2.2 million into a separate account at the issuing bank to serve as cash collateral. Such funds will be released when the LOC is terminated without being drawn upon by USAC. Allowance for Doubtful Accounts The Company includes bad debt expense in customer operations expense in the unaudited condensed consolidated statements of operations. Bad debt expense for the three months ended March 31, 2016 and 2015 was $3.9 million and $2.8 million , respectively. The Company’s allowance for doubtful accounts was $7.3 million and $6.8 million at March 31, 2016 and December 31, 2015 , respectively. In addition to these amounts, the Company has recognized $2.7 million in bad debt expense for the three months ended March 31, 2015, and allowance for doubtful accounts of $0.7 million and $1.5 million recorded as part of discontinued operations at March 31, 2016 and December 31, 2015, respectively. At March 31, 2016 and December 31, 2015, the allowance for doubtful accounts included $2.5 million and $2.3 million, respectively, related to unbilled equipment receivables. See Note 5 for additional information related to EIP. Accrued Expenses and Other Current Liabilities (In thousands) March 31, 2016 December 31, 2015 Accrued payroll $ 2,797 $ 5,010 Accrued taxes 4,006 4,321 Other 10,330 8,672 Total $ 17,133 $ 18,003 Other Long-Term Liabilities (In thousands) March 31, 2016 December 31, 2015 Asset retirement obligation $ 21,140 $ 20,785 Deferred gain on sale leaseback 15,956 16,511 Deferred SNA revenue 20,748 19,183 Other 5,130 5,381 Total $ 62,974 $ 61,860 Pension Benefits and Retirement Benefits Other Than Pensions The total expense recognized for the Company’s defined benefit and nonqualified pension plans was $0.1 million for both the three months ended March 31, 2016 and 2015 . The total amount reclassified out of accumulated other comprehensive loss related to actuarial (gains)/losses from the defined benefit plans was $(0.1) million and $0.1 million for the three months ended March 31, 2016 and 2015 , respectively, all of which has been reclassified to cost of services, customer operations, and corporate operations on the unaudited condensed consolidated statements of operations for the respective periods. Defined benefit pension plan assets were valued at $22.9 million at March 31, 2016 . The Company also sponsors a contributory defined contribution plan under Internal Revenue Code (“IRC”) Section 401(k) for substantially all employees. The Company’s current policy is to make matching contributions in cash. Equity-Based Compensation The Company accounts for equity-based compensation plans under FASB Accounting Standards Codification (“ASC”) 718, Stock Compensation . Equity-based compensation expense from stock-based awards is recorded with an offsetting increase to additional paid in capital on the unaudited condensed consolidated balance sheet. The Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award and credits compensation for any forfeitures in the reporting period in which the forfeiture occurs. Total equity-based compensation expense related to all of the Company’s stock-based equity awards for the three months ended March 31, 2016 and 2015 and the Company’s 401(k) matching contributions was allocated as follows: Three Months Ended March 31, (In thousands) 2016 2015 Cost of services $ 182 $ 161 Customer operations 133 178 Corporate operations 471 520 Equity-based compensation expense $ 786 $ 859 Future charges for equity-based compensation related to securities outstanding at March 31, 2016 for the remainder of 2016 and for the years 2017 through 2019 are estimated to be $1.9 million , $1.7 million , $1.0 million and $0.1 million , respectively. Recent Accounting Pronouncements In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU provides a framework that replaces the existing revenue recognition guidance and is intended to improve the financial reporting requirements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption being prohibited. The Company is currently in the process of evaluating the impact of adoption of the ASU on its financial statements. In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in the financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. The guidance was effective for annual reporting periods beginning after December 15, 2015. The Company has adopted the guidance effective March 31, 2016 and it was applied retrospectively to each period presented. The Condensed Consolidated Balance Sheet for the year ended December 31, 2015 has been restated to reflect this change in accounting principle and a reclass of $7.3 million of "Debt Issuance Costs" from Deferred Charges and Other Assets to Long-Term Debt. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires lessees to recognize assets and liabilities for most leases and would change certain aspects of current lease accounting, among other things. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, w hich simplifies the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. The guidance is effective for fiscal years beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of adoption of the ASU on its financial statements. |