Hawaiian Telcom Holdco (HCOM) 10-K 13 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Hawaiian Telcom Holdco, Inc.
Entity Central Index Key	1,487,986
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 148,761,372
Entity Common Stock, Shares Outstanding		11,587,963
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Income (Loss)
Operating revenues	$ 368,419	$ 392,963	$ 393,413
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	163,101	165,835	162,474
Selling, general and administrative	114,893	118,420	123,798
Depreciation and amortization	88,424	89,916	87,879
Total operating expenses	366,418	374,171	374,151
Operating income	2,001	18,792	19,262
Other income (expense):
Interest expense	(16,414)	(17,095)	(16,786)
Loss on early extinguishment of debt	(4,826)
Interest income and other			(19)
Total other expense	(21,240)	(17,095)	(16,805)
Income (loss) before income tax provision	(19,239)	1,697	2,457
Income tax provision	88,002	591	1,357
Net income (loss)	$ (107,241)	$ 1,106	$ 1,100
Net income (loss) per common share -
Basic (in dollars per share)	$ (9.270)	$ 0.100	$ 0.10
Diluted (in dollars per share)	$ (9.270)	$ 0.100	$ 0.10
Weighted average shares used to compute net income (loss) per common share -
Basic (in shares)	11,573,435	11,503,296	10,977,341
Diluted (in shares)	11,573,435	11,555,997	11,386,303

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (107,241)	$ 1,106	$ 1,100
Other comprehensive income (loss):
Unrealized holding gain on investments arising during period			64
Retirement plan gain (loss)	24,257	(9,437)	(8,863)
Income tax benefit (provision) on other comprehensive income (loss)	(5,003)	3,607	3,358
Other comprehensive income (loss), net of tax	19,254	(5,830)	(5,441)
Comprehensive loss	$ (87,987)	$ (4,724)	$ (4,341)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 40,759	$ 15,821
Receivables, net	32,229	33,377
Material and supplies	6,810	8,090
Prepaid expenses	4,899	4,093
Other current assets	1,328	7,229
Total current assets	86,025	68,610
Property, plant and equipment, net	608,298	595,997
Intangible assets, net	31,026	32,728
Goodwill	12,104	12,104
Deferred income taxes, net		92,171
Other assets	2,053	2,311
Total assets	739,506	803,921
Current liabilities
Current portion of long-term debt	10,250	3,000
Accounts payable	56,874	53,506
Accrued expenses	11,736	15,293
Advance billings and customer deposits	14,807	15,013
Other current liabilities	6,774	6,327
Total current liabilities	100,441	93,139
Long-term debt	299,066	281,699
Employee benefit obligations	79,953	105,930
Deferred income taxes, net	910
Other liabilities	38,927	18,239
Total liabilities	519,297	499,007
Commitments and contingencies (Note 13)
Stockholders’ equity
Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,587,963 and 11,513,279 shares issued and outstanding at December 31, 2017 and 2016, respectively	116	115
Additional paid-in capital	182,689	179,958
Accumulated other comprehensive loss	(15,964)	(35,218)
Retained earnings	53,368	160,059
Total stockholders’ equity	220,209	304,914
Total liabilities and stockholders’ equity	$ 739,506	$ 803,921

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	11,587,963	11,513,279
Common stock, shares outstanding	11,587,963	11,513,279

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (107,241)	$ 1,106	$ 1,100
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	88,424	89,916	87,879
Deferred financing amortization	1,442	2,068	1,922
Loss on early extinguishment of debt	4,826
Employee retirement benefits	(1,720)	(8,103)	(3,634)
Provision for uncollectible receivables	3,797	4,031	3,648
Stock based compensation	2,827	2,303	1,584
Deferred income taxes	88,628	1,332	1,958
Changes in operating assets and liabilities:
Receivables	(2,649)	(4,672)	(3,722)
Material and supplies	1,280	409	838
Prepaid expenses and other current assets	95	(153)	9
Accounts payable and accrued expenses	(1,059)	3,935	(9,973)
Advance billings and customer deposits	20,377	(1,038)	8,565
Other current liabilities	(653)	(344)	(759)
Other	336	(702)	1,181
Net cash provided by operating activities	98,710	90,088	90,596
Cash flows from investing activities:
Capital expenditures	(95,256)	(97,841)	(99,034)
Proceeds on sale of investments			805
Net cash used in investing activities	(95,256)	(97,841)	(98,229)
Cash flows from financing activities:
Proceeds from borrowing	330,000
Proceeds from exercise of warrant			6,870
Proceeds from installment financing	2,423	2,155	2,780
Repayment of capital lease and installment financing	(3,961)	(3,341)	(4,217)
Repayment of borrowings	(305,263)	(3,000)	(3,000)
Refinancing and loan amendment costs	(6,295)	(688)	(150)
Taxes paid related to net share settlement of equity awards	(495)	(364)	(948)
Net cash provided by (used in) financing activities	16,409	(5,238)	1,335
Net change in cash, cash equivalents and restricted cash	19,863	(12,991)	(6,298)
Cash, cash equivalents and restricted cash, beginning of period	21,146	34,137	40,435
Cash, cash equivalents and restricted cash, end of period	$ 41,009	$ 21,146	$ 34,137

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at Dec. 31, 2014	$ 107	$ 170,521	$ (23,947)	$ 157,853	$ 304,534
Balance (in shares) at Dec. 31, 2014	10,673,292
Increase (Decrease) in Stockholders' Equity
Stock based compensation		1,584			1,584
Exercise of warrant	$ 7	6,863			$ 6,870
Exercise of warrant (in shares)	719,075				228,316
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes	$ 1	(949)			$ (948)
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes (in shares)	74,031
Net income (loss)				1,100	1,100
Other comprehensive income (loss), net of tax			(5,441)		(5,441)
Balance at Dec. 31, 2015	$ 115	178,019	(29,388)	158,953	307,699
Balance (in shares) at Dec. 31, 2015	11,466,398
Increase (Decrease) in Stockholders' Equity
Stock based compensation		2,303			2,303
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes		(364)			(364)
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes (in shares)	46,881
Net income (loss)				1,106	1,106
Other comprehensive income (loss), net of tax			(5,830)		(5,830)
Balance at Dec. 31, 2016	$ 115	179,958	(35,218)	160,059	304,914
Balance (in shares) at Dec. 31, 2016	11,513,279
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of new accounting standard for stock compensation				550	550
Stock based compensation		2,827			2,827
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes	$ 1	(96)			(95)
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes (in shares)	74,684
Net income (loss)				(107,241)	(107,241)
Other comprehensive income (loss), net of tax			19,254		19,254
Balance at Dec. 31, 2017	$ 116	$ 182,689	$ (15,964)	$ 53,368	$ 220,209
Balance (in shares) at Dec. 31, 2017	11,587,963

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2017
Description of Business
Description of Business	1. Description of Business Business Description Hawaiian Telcom Holdco, Inc. and subsidiaries (the “Company”) is the incumbent local exchange carrier for the State of Hawaii with an integrated telecommunications network. The Company offers a variety of telecommunication services to residential and business customers in Hawaii including local telephone, network access and data transport, long distance, internet, television and wireless phone service. The Company also provides communications equipment sales and maintenance, data center colocation and network managed services. The communication services the Company provides are subject to regulation by the Public Utilities Commission of the State of Hawaii (“HPUC”) with respect to intrastate rates and services and other matters, and the State of Hawaii Department of Commerce and Consumer Affairs with respect to television. Certain agreements with the HPUC limit the amount of dividends and other distributions the Company may pay as well as place restrictions on certain transactions affecting the operations and capital structure of the Company. The Federal Communication Commission (“FCC”) regulates rates that the Company charges long‑distance carriers and other end‑user subscribers for interstate access services and interstate traffic. Proposed Merger On July 9, 2017, Hawaiian Telcom Holdco, Inc. (“Holdco”), a Delaware corporation, Cincinnati Bell Inc. (“Cincinnati Bell”), an Ohio corporation, Twin Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Cincinnati Bell (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into Holdco and Holdco will be the surviving corporation (the “Merger”). Pursuant to the Merger Agreement and as consideration for the Merger, Holdco shareholders will have the option to elect either $30.75 in cash, 1.6305 shares of Cincinnati Bell common stock, or a mix of $18.45 in cash and 0.6522 shares of Cincinnati Bell common stock for each Holdco share. The final distribution to Holdco shareholders is subject to proration such that the aggregate consideration to be paid to Holdco stockholders will be 60 percent cash and 40 percent Cincinnati Bell common stock. Such distribution will be made upon closing of the Merger. The completion of this transaction is subject to closing conditions including the receipt of regulatory approvals from, among others, the Hawaii Public Utilities Commission, and approval by the Holdco shareholders which occurred on November 7, 2017. The Merger Agreement contains certain termination rights for Holdco and Cincinnati Bell. The Merger Agreement stipulates that in the event of a termination of the Merger Agreement under specified circumstances, primarily related to if the Company receives and favors a competing merger offer, the Company will be required to pay a fee of $11.9 million. In connection with entering into the Merger Agreement with Cincinnati Bell, the Company incurred professional fees related to the transaction of $2.4 million for the year ended December 31, 2017. Organization The Company has one direct wholly‑owned subsidiary, Hawaiian Telcom Communications, Inc. which has two direct wholly‑owned subsidiaries – Hawaiian Telcom, Inc. and Hawaiian Telcom Services Company, Inc. Hawaiian Telcom, Inc. operates the regulated incumbent local exchange carrier and Hawaiian Telcom Services Company, Inc. operates all other businesses.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The accompanying consolidated financial statements of the Company have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, in the opinion of management, includes all adjustments necessary for a fair presentation of the results of operations, comprehensive income (loss), financial position and cash flows for each period presented. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements of the Company include the results of operations, financial position, and cash flows of Hawaiian Telcom Holdco, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Revenue Recognition Revenue is recognized when evidence of an arrangement exists, the earnings process is complete and collectibility is reasonably assured. The prices for certain services are filed in tariffs with the regulatory body that exercises jurisdiction over the services. Basic local service, enhanced calling features such as caller ID, special access circuits, long‑distance flat rate calling plans, most data services, internet, television, data center colocation and wireless services are billed one month in advance. Revenue for these services is recognized in the month services are rendered. The portion of advance‑billed services associated with services that will be delivered in a subsequent period is deferred and recorded as a liability in advance billings and customer deposits. Amounts billed to customers for activating wireline service are deferred and recognized over the average customer relationship. The costs associated with activating such services are deferred and recognized as an operating expense over the same period. Costs in excess of revenues are recognized as expense in the period in which activation occurs. Other charges for activation are generally deferred and recognized in revenue over the contract term. Revenues for providing usage based services, such as per‑minute long‑distance service, access charges billed to long‑distance companies for originating and terminating long‑distance calls on the Company’s network and video on demand, are billed in arrears. Revenues for these services are based on actual rated usage and, where necessary, historical usage patterns, and are recognized in the month services are rendered. For long-term indefeasible right of use, or IRU, contracts for fiber circuit capacity, the Company may receive up-front payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract. Universal Service revenue subsidies, including those related to Connect America Fund Phase II, are government‑sponsored support received in association with providing service in mostly rural, high‑cost areas. These revenues are typically calculated by the government agency responsible for administering the support program. These revenues are recognized as granted by the government agency. Telecommunication systems and structured cabling project revenues are recognized on a percentage completion basis, generally based on the relative portion of costs incurred to total estimated costs of a project, except for short duration projects which are recognized upon completion of the project. Maintenance services are recorded when the service is provided. With respect to arrangements with multiple deliverables, the Company determines whether more than one unit of accounting exists in an arrangement. To the extent that the deliverables are separable into multiple units of accounting, total consideration is allocated to the individual units of accounting based on their relative fair value, determined by the price of each deliverable when it is regularly sold on a stand‑alone basis. Revenue is recognized for each unit of accounting as delivered or as service is performed depending on the nature of the deliverable comprising the unit of accounting. Taxes Collected from Customers The Company presents taxes collected from customers and remitted to governmental authorities on a gross basis, including such amounts in the Company’s reported operating revenues and selling, general and administrative expenses. Such amounts represent primarily Hawaii state general excise taxes and HPUC fees. Such taxes and fees amounted to $8.4 million, $8.4 million and $8.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. Cash and Cash Equivalents Cash and cash equivalents include cash and money market accounts with maturities at acquisition of three months or less. The majority of cash balances at December 31, 2017 are held in one bank in demand deposit accounts. Supplemental Non‑Cash Investing and Financing Activities Accounts payable included $27.4 million, $26.1 million and $20.6 million at December 31, 2017, 2016 and 2015, respectively, for additions to property, plant and equipment. Receivables The Company recognizes accounts receivable net of an allowance for doubtful accounts. The Company makes estimates of the uncollectibility of its accounts receivable by specifically analyzing accounts receivable and historic bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in its customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. After multiple attempts at collection of delinquent accounts, the balance due is deemed uncollectible and charged against the allowance. Material and Supplies Material and supplies which consist mainly of cable, supplies and replacement parts, are stated at the lower of cost, determined principally by the average cost method, or net realizable value. Property and Depreciation Property, plant and equipment are carried at cost. Depreciation has been calculated using the composite remaining life method and straight-line depreciation. The composite method depreciates the remaining net investment in telephone plant over remaining economic asset lives by asset category. This method requires periodic review and revision of depreciation rates. The average economic lives utilized for assets are as follows: building – 18 to 34 years; cable and wire – 11 to 37 years; switching and circuit equipment – 6 to 15 years; and other property – 4 to 17 years. Software The Company capitalizes the costs associated with externally acquired software for internal use. Project costs associated with internally developed software are segregated into three project stages: preliminary project stage, application development stage and post‑implementation stage. Costs associated with both the preliminary project stage and post‑implementation stage are expensed as incurred. Costs associated with the application development stage are capitalized. Software maintenance and training costs are expensed as incurred. Capitalized software is generally amortized on a straight‑line method basis over its useful life, not to exceed five years. Goodwill and Other Intangible Assets Goodwill and other indefinite‑lived intangible assets are not amortized. Such assets are reviewed annually, or more frequently under various conditions, for impairment. The goodwill impairment test involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of the reporting unit, for goodwill, or the indefinite-lived intangible asset exceeds its fair value, the impairment loss is recognized for the amount of the excess. The Company performs its annual impairment test during the fourth quarter, primarily using a market valuation and discounted cash flows methodology. Intangible assets with definite lives, including the value assigned to the customer base, are being amortized over the remaining estimated lives. For customer relationship intangibles, amortization is calculated using a declining balance method in relation to estimated retention lives of acquired customers. Impairment of Long‑Lived Assets and Definite-Lived Intangibles The Company assesses the recoverability of long‑lived assets, including property, plant and equipment and definite‑lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such cases, if the sum of the expected cash flows, undiscounted and without interest, resulting from use of the asset are less than the carrying amount, an impairment loss is recognized based on the difference between the carrying amount and the fair value of the assets. Debt Issuance Deferred financing costs and original issue discount are amortized over the term of the related debt issuance using the effective interest method and presented as a direct deduction of the carrying amount of the debt. Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities at each balance sheet date using enacted tax rates expected to be in effect in the year the differences are expected to reverse. Valuation allowances are recognized to reduce deferred tax assets to the amount that will more likely than not be realized. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statements of income (loss). Employee Benefit Plans Pension and postretirement health and life insurance benefits earned during the year as well as interest on projected benefit obligations are accrued currently. Actuarial gains and losses are amortized over the average remaining service period or expected life of participants as applicable. Maintenance and Repairs The cost of maintenance and repairs, including the cost of replacing minor items not constituting substantial betterments, is charged to expense as these costs are incurred. Advertising Advertising costs are expensed as incurred. Advertising expense amounted to $5.8 million, $6.1 million and $5.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. Stock Based Compensation The Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated fair values. The fair value of restricted stock units is generally based on the closing price of the Company’s common stock on the date of grant. The fair value of market-based stock awards is estimated using a statistical pricing model as of the date of grant. Because stock-based compensation expense is based on awards that ultimately vest, it has been reduced for actual forfeitures. Earnings per Share Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing earnings by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing earnings, adjusted for the effect, if any, from assumed conversion of all potentially dilutive common shares outstanding, by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. The denominator used to compute basic and diluted earnings per share is as follows: For the Year Ended December 31, 2017 2016 2015 Basic earnings per share - weighted average shares 11,573,435 11,503,296 10,977,341 Effect of dilutive securities: Employee and director restricted stock units — 52,701 83,727 Warrants — — 325,235 Diluted earnings per share - weighted average shares 11,573,435 11,555,997 11,386,303 The computation of weighted average dilutive shares outstanding excluded grants of restricted stock units convertible into 311,090 shares for the year ended December 31, 2017. For the year ended December 31, 2017, the Company incurred a net loss so the restricted stock units are anti-dilutive to the computation of diluted net loss per share. For the years ended December 31, 2016 and 2015, the antidilutive restricted stock units excluded from the computation of weighted average dilutive shares outstanding were not significant. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued a new standard that simplifies the accounting for employee share-based payment transactions. The new standard impacts the accounting for related income taxes, forfeitures and statutory tax withholding requirements as well as the classification of certain related payments in the statement of cash flows. The new accounting guidance was effective for the Company in 2017. The adoption method required is specified as retrospective, modified retrospective or prospective for each of the various accounting provisions impacted by this new standard. The Company is accounting for forfeitures on its share-based transactions as they occur beginning January 1, 2017. The impact of the modified retrospective adoption of this provision was not significant. In addition, the Company began accounting for excess tax benefits and tax deductions on share-based award settlements prospectively as income tax expense or benefit in its consolidated statements of income (loss) beginning January 1, 2017. Excess tax benefits that were not recognized prior to January 1, 2017 because the related tax deduction had not reduced taxes currently payable have been recognized on a modified retrospective basis through a cumulative effect adjustment which increased retained earnings as of January 1, 2017 by $0.6 million. In January 2017, the FASB issued new accounting guidance simplifying the test for goodwill impairment. The new guidance eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the standard, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company adopted the standard effective December 31, 2017 on a prospective basis with no current impact. Recently Issued Accounting Pronouncement on Revenue Recognition In May 2014, the FASB issued a new accounting standard which provides guidance for revenue recognition. The new accounting standard supersedes existing revenue recognition requirements and most industry-specific guidance. The standard’s core principal is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods and services. The Company adopted the new standard effective January 1, 2018. The Company selected the modified retrospective method of adoption which requires a cumulative effect adjustment to retained earnings as of the adoption date. The initial application of the new standard was limited to contracts not yet completed as of the effective date. The details of significant changes in the Company’s revenue recognition and the quantitative impact are provided below. Prior to 2018, the Company recognized revenue for telecommunication and structured cabling project revenues on a percentage of completion basis, generally based on the relative portion of costs incurred to total estimated costs of a project, except for short duration projects which were recognized upon completion of the project. Beginning in 2018, the Company is recognizing revenue on all projects as completed. In addition, beginning in 2018, the Company began recognizing a financing component to the up-front payments for services to be delivered under indefeasible right of use contracts for fiber circuit capacity. Beginning in 2018, the Company began deferring certain costs to obtain a contract and is recognizing such costs over the expected contract term. Prior to 2018, the Company had deferred certain costs related to activation in an amount that approximated the related revenue and recognized such costs over the expected customer life. The Company has concluded that such costs are no longer significant or are accounted for under other accounting standards such as those related to capitalization in conjunction with installation of an asset. The new accounting standard also provides guidance on presentation of contract assets and liabilities in the consolidated balance sheet. The standard provides specific guidance on presentation of advance billings. Beginning in 2018, a liability is recognized for advance billings where cash has been received in advance of delivery of goods or services, or when payment is due and the contract is noncancellable. Prior to 2018, a liability was recognized when the related goods or services were invoiced in advance of delivery of goods or services. The cumulative effect of application of the new accounting standard as of January 1, 2018, net of estimated tax, was to increase retained earnings by an amount estimated at $4.0 million to $6.0 million. The impact will be reflected in the Company’s condensed consolidated financial statements beginning with the quarter ended March 31, 2018. In preparation for adoption of the new accounting standard, the Company has implemented internal controls, system functionality and revised business processes to prepare financial information in accordance with the standard. These new processes and procedures ensure data utilized for financial reporting is complete and accurate and is assessed in accordance with the guidelines of the standard. The Company is implementing new internal controls to address risks associated with applying the new revenue recognition model as well as monitoring controls to identify new sales arrangements or changes in the business environment that will affect the Company’s current accounting assessment. Other Recently Issued Accounting Pronouncements In February 2016, the FASB issued a new standard which revises the accounting for leases. The new standard is effective for the Company in the first quarter of 2019. The standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases the lessee would recognize lease expense on a straight-line basis. The standard requires use of a modified retrospective transition approach beginning with the earliest period presented in the period of transition. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In June 2016, the FASB issued amended guidance on accounting for the impairment of financial instruments. The standard requires adoption of an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. For the Company, it is anticipated this will impact primarily the accounting for credit losses on trade receivables. The new standard is effective for the Company in the first quarter of 2020 with early adoption permitted from the first quarter of 2019. The provisions of the new standard expected to impact the Company must be adopted using the modified retrospective approach. The Company is evaluating the effect of the guidance on the Company’s consolidated financial statements and financial statement disclosures. In March 2017, the FASB issued a new standard that amends the income statement presentation of the components of net periodic benefit cost for defined benefit and other postretirement plans. The new standard requires that the current service cost component be disaggregated from the other components of net benefit cost. The other components must be presented elsewhere in the income statement outside of income from operations. In addition, only the service-cost component of net benefit cost is eligible for capitalization related to self-constructed assets. The new standard is effective for the Company beginning January 1, 2018 with early adoption permitted. The presentation requirements must be adopted on a retrospective basis and the change in capitalization methodology applied on a prospective basis. The Company currently presents the entire net benefit cost in income from operations but has disclosed the components of net benefit costs in Note 8 to the consolidated financial statements. The Company has adopted this standard effective January 1, 2018 and will reflect the new presentation of net periodic benefit cost beginning with its condensed consolidated financial statements for the quarter ended March 31, 2018. In May 2017, the FASB issued additional guidance for stock compensation accounting. The guidance provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. The standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The amendment to the accounting standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and the provisions must be applied prospectively to a stock award modified on or after the adoption date. The Company adopted the new standard effective January 1, 2018 with no current impact. In February 2018, the FASB amended accounting rules to allow for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (see Note 9). Accounting rules generally require deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. Therefore, the tax effects of items within accumulated other comprehensive income may not reflect the appropriate tax rate (referred to as stranded tax effects). Consequently, the amendment allows for an optional elimination of the stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendment is effective for the Company in the first quarter of 2018. The Company has chosen not to adopt the standard early, though allowed. The Company is still evaluating the potential impact of the accounting amendment and has not yet concluded if it will adopt the optional provisions of the amendment. If the provisions are adopted, the Company expects to apply the standard in the period of adoption rather than retrospectively.

Receivables, Net

Receivables, Net	12 Months Ended
	Dec. 31, 2017
Receivables, Net
Receivables, Net	3. Receivables, Net Receivables consisted of the following (dollars in thousands): December 31, 2017 2016 Customers and other $ 36,118 $ 37,408 Allowance for doubtful accounts (3,889) (4,031) $ 32,229 $ 33,377 The Company grants credit to customers in the normal course of business. At December 31, 2017 and 2016, the Company did not have customer balances representing more than 10% of total receivables. During the years ended December 31, 2017, 2016 and 2015, the Company had no customers that represented more than 10% of total revenues. The following is a summary of activity for the allowance for doubtful accounts (dollars in thousands): Additional Charges to Deductions Beginning Costs and from Ending Balance Expenses Allowance Balance January 1 to December 31, 2017 $ 4,031 $ 3,797 $ (3,939) $ 3,889 January 1 to December 31, 2016 3,931 4,031 (3,931) 4,031 January 1 to December 31, 2015 3,755 3,648 (3,472) 3,931

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment
Property, Plant and Equipment	4. Property, Plant and Equipment Property, plant and equipment consisted of the following (dollars in thousands): December 31, 2017 2016 Land $ 67,278 $ 67,278 Buildings 120,999 115,775 Central office equipment 222,248 208,004 Outside communications plant 479,655 412,244 Other equipment, vehicles and furniture 104,846 87,849 Construction in progress 34,759 55,606 Software 90,652 78,547 Other 10,834 10,834 Property, plant and equipment cost $ 1,131,271 $ 1,036,137 Less accumulated depreciation (522,973) (440,140) $ 608,298 $ 595,997 Depreciation expense amounted to $86.7 million, $87.8 million and $85.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	5. Goodwill and Other Intangible Assets The gross carrying amount and accumulated amortization of the identifiable intangible assets are as follows (dollars in thousands): December 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Value Amortization Value Value Amortization Value Subject to amortization: Customer relationships $ 21,709 $ 17,983 $ 3,726 $ 21,709 $ 16,299 $ 5,410 Trade name and other 320 320 — 320 302 18 22,029 18,303 3,726 22,029 16,601 5,428 Not subject to amortization: Brand name 27,300 — 27,300 27,300 — 27,300 27,300 — 27,300 27,300 — 27,300 $ 49,329 $ 18,303 $ 31,026 $ 49,329 $ 16,601 $ 32,728 Amortization expense amounted to $1.7 million, $2.1 million and $2.5 million for the years ended December 31 2017, 2016 and 2015, respectively. Estimated amortization expense for the next five years and thereafter is as follows (dollars in thousands): Year ended December 31, 2018 $ 1,307 2019 930 2020 574 2021 270 2022 223 Thereafter 422 $ 3,726 As of December 31, 2017, the Company has goodwill of $12.1 million. Prior to 2017, the Company recognized $10.5 million of goodwill as part of the data center services segment and $1.6 million in the telecommunications segment. As further discussed in Note 16, because of recent operational, organizational and reporting changes, the Company has concluded it now has only one segment and one reporting unit. As such, the Company now classifies all goodwill in the one segment.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	12 Months Ended
	Dec. 31, 2017
Accrued Expenses and Other Current Liabilities.
Accrued Expenses and Other Current Liabilities	6. Accrued Expenses and Other Liabilities Accrued expenses consisted of the following (dollars in thousands): December 31, 2017 2016 Salaries and benefits $ 7,875 $ 11,662 Interest 2,890 2,583 Other taxes 971 1,048 $ 11,736 $ 15,293 Other current liabilities consisted of the following (dollars in thousands): December 31, 2017 2016 Other postretirement benefits, current $ 3,226 $ 3,332 Installment financing contracts, current 2,978 2,157 Other 570 838 $ 6,774 $ 6,327 Other liabilities, noncurrent, consisted of the following (dollars in thousands): December 31, 2017 2016 Deferred revenue, noncurrent $ 28,036 $ 7,453 Installment financing contracts, noncurrent 8,982 8,692 Other 1,909 2,094 $ 38,927 $ 18,239 Deferred revenue includes advance billings of capacity and other services related to the Company’s trans-Pacific cable as more fully described in Note 13.

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2017
Long-Term Debt
Long-Term Debt	7. Long‑Term Debt Long‑Term debt consists of the following (dollars in thousands): Average Interest Rate Final December 31, December 31, 2017 Maturity 2017 2016 Term loan A-1 5.13 % May 4, 2022 $ 87,750 $ — Term loan A-2 5.38 May 4, 2023 227,125 — Term loan retired NA NA — 290,138 Debt issue costs and issue discount (5,559) (5,439) 309,316 284,699 Current 10,250 3,000 Noncurrent $ 299,066 $ 281,699 In February 2017, the Company entered into a delayed draw credit agreement for new term loans and a new revolving credit facility. The new facility fully funded the repayment of the existing term loan and replacement of the existing revolving credit on May 4, 2017. Included in the new facility is a term loan A-1 for $90.0 million with quarterly principal payments of $1.1 million with the balance due at maturity in May 2022. Interest, payable at least quarterly, is at the Alternate Base Rate plus a margin of 2.75% or a Eurocurrency rate plus a margin of 3.75%. In addition, the facility provides for a second term loan A-2 for $230.0 million with quarterly principal payments of $1.4 million for the first eight quarters and $2.9 million per quarter thereafter with the balance due at maturity in May 2023. Interest, payable at least quarterly, is at the Alternate Base Rate plus a margin of 3.0% or a Eurocurrency rate plus a margin of 4.0%. The new facility also provides for a line of credit in the amount of $30.0 million with maturity in May 2022. A commitment fee is payable quarterly to the lender under the facility. Interest on the line of credit is at the Alternate Base Rate plus a margin of 2.75% or a Eurocurrency rate plus a margin of 3.75%. There were no drawings as of or for the periods ended December 31, 2017 on the new line of credit. The interest rate margins on the facility are subject to a decrease of 0.25% with a defined improvement in the Company’s leverage ratio. The obligations under the bank facilities are guaranteed by the Company and each subsidiary with certain exceptions. In addition, the bank credit facilities are collateralized by substantially all of the Company’s assets. The bank credit facilities contain various negative and affirmative covenants that restrict, among other things, incurrence of additional indebtedness, payment of dividends, redemptions of stock, other distributions to shareholders and sales of assets. In addition, there are financial covenants which have the following metrics as of December 31, 2017: debt service coverage with minimum allowed ratio of 2.75:1 of earnings before interest, taxes, depreciation and amortization to debt service which includes scheduled principal payments and cash interest; leverage with maximum allowed ratio of 3.25:1 of indebtedness to earnings before interest, taxes, depreciation and amortization; and a maximum level of annual capital expenditures of $105.0 million. The Company was in compliance with these covenants as of December 31, 2017. The Company incurred $6.3 million in underwriting fees, original issue discount and legal costs in 2017 in conjunction with the new debt facility. Such costs and the existing debt original issue discount, deferred financing costs, underwriting fees and legal costs were accounted for in accordance with accounting standards for extinguishment of debt instruments. The Company compared each syndicated lenders’ loan under the old term loan with the syndicated lenders’ loan under the new term loans. All loans under the new term loan were deemed substantially different. As such, the Company deferred the costs of the new debt as a reduction of the carrying value of the new debt. In addition, the Company recognized the repayment of the existing debt instruments as a debt extinguishment incurring a loss on early extinguishment of debt of $4.8 million. The Company had an existing revolving credit facility which was repaid and terminated on May 4, 2017. Drawings for the year ended December 31, 2017 amounted to $10.0 million. Such draws were used primarily to fund the construction of the SEA-US submarine cable system described in Note 13. There were no amounts drawn as of or for the years ended December 31, 2016 or 2015. One of the syndicated lenders in both the new term loan and the term loan retired is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company’s average outstanding loan balance. The Company recognizes the patronage, generally as declared, as a reduction of interest expense. The stock component is recognized at its stated cost basis with the accumulated stock investment included in other noncurrent assets. The investment balance as of December 31, 2017 was not significant. Loan Amendment in 2016 In May 2016, the Company amended its term loan allowing for a revised leverage ratio financial covenant. The amendment modified the maximum allowed leverage ratio. In conjunction with the amendment, the Company paid a fee to the lenders of $0.4 million and such fee was deferred as financing related costs. The Company concluded that the amended lenders’ term loans were not substantially different than the lenders’ term loans prior to amendment. In addition, the Company paid an arrangement fee and legal costs amounting to $0.3 million. Such fees were expensed as incurred in 2016. Capitalized Interest Interest capitalized by the Company amounted to $1.9 million, $1.6 million and $1.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. Maturities The maturities of debt at December 31, 2017 are as follows (dollars in thousands): Year ended December 31, 2018 $ 10,250 2019 13,125 2020 16,000 2021 16,000 2022 81,250 Thereafter 178,250 $ 314,875

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2017
Employee Benefit Plans
Employee Benefit Plans	8. Employee Benefit Plans Pension and Other Postretirement Benefits The Company sponsors a defined benefit pension plan, with benefits frozen as of March 1, 2012, and postretirement health and life insurance benefits for union employees. The Company also sponsors a cash balance pension plan for nonunion employees, with benefits frozen as of April 1, 2007, and certain management employees receive postretirement health and life insurance under grandfathered provisions of a formerly active plan. The change in projected benefit obligation, change in plan assets, funded status and weighted average actuarial assumptions were as follows (dollars in thousands): Pension Benefits Other Postretirement Benefits December 31, December 31, 2017 2016 2017 2016 Change in projected benefit obligation: Obligation at beginning of period $ 203,316 $ 203,455 $ 73,789 $ 60,749 Service cost — — 898 1,104 Interest cost 6,705 7,347 2,193 2,637 Actuarial (gain) loss 11,574 3,686 (1,641) 11,036 Plan change — — (18,262) — Benefits paid (26,962) (11,172) (1,844) (1,737) Projected benefit obligation at end of period 194,633 203,316 55,133 73,789 Change in plan assets: Fair value of plan assets at beginning of period 167,843 156,678 — — Return on plan assets 22,525 13,032 — — Employer contributions 3,181 9,305 1,844 1,737 Benefits paid (26,962) (11,172) (1,844) (1,737) Fair value of plan assets at end of period 166,587 167,843 — — Funded status: Plan assets less than projected benefit obligation $ (28,046) $ (35,473) $ (55,133) $ (73,789) Amounts recognized on balance sheet: Other current liabilities $ — $ — $ (3,226) $ (3,332) Employee benefit obligation, noncurrent (28,046) (35,473) (51,907) (70,457) Net amount recognized $ (28,046) $ (35,473) $ (55,133) $ (73,789) Actuarial loss recognized in accumulated other comprehensive income (loss) $ (31,886) $ (36,919) $ (816) $ (20,040) Actuarial assumptions: Measurement date, December 31 Discount rate ranges from a low of % % % % Discount rate ranges to a high of % % % % Assumed health care cost trend rate, current NA NA % % Assumed health care cost trend rate, ultimate NA NA % % Assumed health care cost trend rate, ultimate year NA NA The Company’s pension plans paid lump sum payments to participants resulting in settlement accounting for the applicable plans and a loss on settlement. The Company’s lump-sum benefits to plan participants in full settlement of obligations due resulting in settlement accounting amounted to $23.0 million, $7.1 million and $55.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. In January 2017, the Company amended the postretirement health benefits plan for management employees by implementing a cap on the amount of the premium subsidy at 2017 levels. This resulted in recognition of a negative plan amendment as of January 31, 2017. The new measurement resulted in a retirement plan gain which was recognized in other comprehensive income of $19.7 million for the year ended December 31, 2017. The estimated amount of the actuarial gain or loss to be amortized from accumulated other comprehensive income (loss) during 2018 is $0.4 million of loss for pension benefits and $0.9 million of gain for other postretirement benefits. The Company accrues the service costs of pension and postretirement benefits over the period from the date of hire until the date the employee becomes fully eligible for benefits. The following provides the components of benefit costs and weighted average actuarial assumptions for the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): Pension Benefits For the For the Year Ended December 31, 2017 2016 2015 Interest cost $ 6,705 $ 7,347 $ 7,994 Expected asset return (10,376) (10,172) (12,565) Amortization of loss 464 574 186 Net periodic benefit income (3,207) (2,251) (4,385) Settlement loss 3,995 1,277 8,088 Total benefit (income) expense $ 788 $ (974) $ 3,703 Actuarial assumptions: Discount rate ranges from a low of % % % Discount rate ranges to a high of % % % Expected return on plan assets % % % Other Postretirement Benefits For the For the Year Ended December 31, 2017 2016 2015 Service cost $ 898 $ 1,104 $ 1,088 Interest cost 2,193 2,637 2,355 Amortization of (gain) loss (678) 573 588 Total benefit expense $ 2,413 $ 4,314 $ 4,031 Actuarial assumptions: Discount rate ranges from a low of % % % Discount rate ranges to a high of % % % Assumed health care cost trend rate, current % % % Assumed health care cost trend rate, ultimate % % % Assumed health care cost trend rate, ultimate year The measurement date for all plans was December 31, 2017, 2016 and 2015. At December 31, 2017 and 2016, the accumulated benefit obligation was the same as the projected benefit obligation. The Company based its selection of an assumed discount rate for 2018 net periodic benefit cost and December 31, 2017 disclosure on a cash flow matching analysis that utilized bond information provided from a bond index for all non-callable, high quality bonds (i.e., rated AA- or better) as of December 31, 2017. The matching of bond income to anticipated benefit cash flows and the basic methods of selecting the assumed discount rate and expected return on plan assets at December 31, 2017 did not change from December 31, 2016. In selecting the expected rate of return on plan assets of 7.00% for 2018 net periodic benefit cost, the Company considered economic forecasts for the types of investments held by the plans (primarily equity and fixed income investments), the plans’ asset allocations and the past performance of the plans’ assets. The expected rate of return on plan assets was based on various factors including historical experience and long-term inflation assumptions. The Company’s expected long-term rate of return on plan assets is determined using the target allocation of assets which is based on the goal of earning the highest rate of return while maintaining risk at acceptable levels. The plan strives to have assets sufficiently diversified so that adverse or unexpected results from a security class will not have a significant adverse impact on the entire portfolio. The Company’s overall investment strategy is to primarily invest for long‑term growth with sufficient investments available to fund near‑term benefit payments. The Company aims for diversification of asset types, fund strategies and fund managers. The target allocations for plan assets are 65 percent equity securities and 35 percent fixed income securities. Equity securities primarily include investments in equity funds and common stock of individual companies. Together these investments are diversified in companies located in the United States and internationally. Fixed income securities are in funds that invest in bonds of companies from diversified industries, mortgage‑backed securities and U.S. Treasuries. Accounting standards establish a fair value hierarchy when measuring the fair value of pension plan assets. The three levels of inputs within the hierarchy are defined as follows. Level 1 is quoted prices for identical assets or liabilities in active markets. Level 2 is significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 is significant unobservable inputs that reflect the Company’s own assumptions as to how market participants would price an asset. The fair values of the Company’s pension plan assets at December 31, 2017 and 2016, based on trading values or fund net asset value, by asset category and basis of valuation, are as follows (dollars in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total 2017 Common stocks - domestic large cap $ 9,660 $ — $ — $ 9,660 Equity funds - large cap index — 92,731 — 92,731 Fixed income funds - diversified bond — 63,768 — 63,768 Short term investment funds — 428 — 428 $ 9,660 $ 156,927 $ — $ 166,587 2016 Common stocks - domestic large cap $ 10,201 $ — $ — $ 10,201 Equity funds - large cap index — 93,576 — 93,576 Fixed income funds - diversified bond — 63,613 — 63,613 Short term investment funds — 453 — 453 $ 10,201 $ 157,642 $ — $ 167,843 The fair values of the financial instruments shown in the table above represent the Company’s best estimates of the amounts that would be received upon sale of those assets in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset at the measurement date, the fair value measurement reflects the Company’s judgments about the assumptions that market participants would use in pricing the asset. Those judgments are developed by the Company based on the best information available in the circumstances. The Company used the following valuation methodologies for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2017 and 2016. Common stocks (Level 1) were valued at the closing price reported on the active market on which the individual securities are traded. Fixed income funds, equity funds, and short term investment funds (Level 2) were valued as follows. Investment funds include commingled funds that are not open to public investment and are valued at the net asset value per share. The majority of such funds allow for redemption each trading day at the daily reported net asset value per share which is reported as the fund fair value on that trading day. There are no restrictions on fund redemptions. As the published net asset value reflects the amount at which the fund trades, the Company has concluded it is reflective of the fund fair value as of the end of each reporting period. All contributions made were as required by law. The Company expects to contribute $5.4 million to its defined benefit pension plans in 2018. The Company expects to contribute $3.3 million to its other postretirement benefit plans in 2018. The Company projects that its plans will make the following benefit payments for the years ended December 31 (dollars in thousands): Other Pension Plans Postretirement Benefits Paid Benefits Paid 2018 $ 43,041 $ 3,284 2019 12,912 3,435 2020 13,442 3,541 2021 11,871 3,556 2022 13,458 3,504 2023 through 2027 54,687 16,628 $ 149,411 $ 33,948 Assumed health care costs trend rates have a significant impact on the amounts reported for other postretirement benefits. A one‑percentage point change in the assumed health care cost trend rates would have the following annual effects (dollars in thousands): 1-Percentage 1-Percentage Point Increase Point Decrease Effect on total of service and interest costs components $ NONE $ NONE Effect on postretirement benefit obligation NONE NONE 401(k) Plan The Company participates in two 401(k) employee savings plans that allow for voluntary contributions into designated investment funds by eligible employees with the Company matching employee contributions, up to a maximum of 10% of compensation for union employees and 6% of compensation for non-union employees. Company contributions were $4.9 million, $5.1 million and $5.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	9. Income Taxes The components of the income tax provision are as follows (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Current Federal $ — $ — $ — State and local (626) (741) (601) (626) (741) (601) Deferred Federal 77,533 1,160 1,726 State and local 11,095 172 232 88,628 1,332 1,958 Total income tax provision $ 88,002 $ 591 $ 1,357 The income tax provision differs from the amounts determined by applying the statutory federal income tax rate of 34% to the income (loss) before income tax provision for the following reasons (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Income tax (benefit) at federal rate $ (6,541) $ 577 $ 835 Increase (decrease) resulting from: State income taxes, net of federal income tax (813) 101 104 Permanent difference for compensation limitation — — 637 Expense not deductible for tax — 292 98 Tax credit included in taxable income 238 283 252 Other permanent differences 71 20 110 Capital goods excise tax credit (626) (741) (601) Change in federal income tax rate 28,018 — — Other, net 132 74 54 Change in valuation allowance 67,523 (15) (132) Total income tax provision $ 88,002 $ 591 $ 1,357 Deferred income taxes consisted of the following (dollars in thousands): December 31, 2017 2016 Deferred tax liabilities: Property and equipment $ 33,215 $ 46,965 Other basis differences 329 533 33,544 47,498 Deferred tax assets: Net operating loss and credit carryforwards 61,017 66,580 Intangible assets 13,877 30,913 Expenses deferred for tax 2,933 5,347 Employee benefits 15,851 33,434 Other basis differences 2,560 3,730 96,238 140,004 Valuation allowance (63,604) (335) 32,634 139,669 Deferred tax asset (liability), net $ (910) $ 92,171 The Company assesses the ability to realize its deferred tax assets and assesses the need for a valuation allowance on an ongoing basis. The Company is required to consider all available positive and negative evidence in evaluating the likelihood that it will be able to realize the benefit of its deferred tax assets in the future. Such evidence includes scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and the results of recent operations. In considering the impact of recent operations on the Company’s deferred tax asset assessment, the Company utilizes a rolling three years of actual results as the primary measure of cumulative income or losses. These are adjusted for permanent differences between financial reporting and taxable income. For the year ended December 31, 2017, the Company incurred a pretax loss from operations. In addition, as of December 31, 2017, the Company had a cumulative loss from operations for the three year period. Because of the three year cumulative losses, the Company is required to look only to sources of income that are deemed objective and verifiable based on historical experience. The Company considered that the cumulative loss was caused, in part, by costs not expected to recur in future periods such as merger costs. However, the loss was also caused by costs, such as pension settlement losses, that are not deemed part of core operations but the frequency of which is hard to predict. For example, in 2017, the level of retirements and related pension settlements ramped up making it more challenging to conclude such expenses will not recur in future periods. With the challenge of predicting future taxable income based on actual historical results, the Company had to limit the amount of taxable income included in its assessment of deferred income tax asset recoverability. Based on the more likely than not criteria for realization of deferred income tax assets, the Company established a full valuation allowance for its deferred income tax assets during the year ended December 31, 2017. If, in future periods, new positive evidence becomes available, the conclusion regarding the need for a full valuation allowance may change resulting in the reversal of some or all of the valuation allowance. The following is a summary of activity for the valuation allowance (dollars in thousands): Charge (Credit) to Income Tax Beginning Expense or Ending Balance Equity Balance January 1 to December 31, 2017 $ 335 $ 63,269 $ 63,604 January 1 to December 31, 2016 350 (15) 335 January 1 to December 31, 2015 482 (132) 350 On December 22, 2017, the United States enacted tax reform legislation through the Tax Cuts and Jobs Act which significantly changes the existing U.S. tax laws including a reduction in the corporate tax rate from 34% to 21%. The Company gave recognition to the new law as of the effective date with a revised measurement of its deferred federal income tax assets and liabilities. The impact was to reduce the Company’s net deferred income tax asset by $28.0 million. The Company also reduced its valuation allowance by the same amount as of that date as it had previously established a full valuation allowance as discussed above. As of December 31, 2017, net operating losses available for carry forward through 2037 amounted to $222.6 million for federal purposes and $227.0 million for state purposes. Availability of net operating losses in future periods may be subject to additional limitations if there is a deemed change in control for income tax reporting purposes. Such change in control will be determined for income tax reporting purposes based on future changes in stock ownership. The Company evaluates its tax positions for liability recognition. As of December 31, 2017, 2016 and 2015, the Company had no unrecognized tax benefit. No interest or penalties related to tax assessments were recognized in the Company’s consolidated statements of income (loss) for the years ended December 31, 2017, 2016 or 2015. All tax years from 2014 remain open for both federal and Hawaii state purposes.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity
Stockholders' Equity	10. Stockholders’ Equity Warrants In 2010, the Company issued warrants to purchase 1,481,055 shares of common stock for $14.00 per share. The warrants to purchase shares could be exercised from January 26, 2011 to the maturity on October 28, 2015. The warrants could be exercised on a cashless basis whereby a portion of the exercised warrants are tendered in lieu of payment for the exercise price. During the year ended December 31, 2015, warrants were exercised on a cashless basis resulting in the issuance of 228,316 shares of common stock. In addition, during the year ended December 31, 2015, another 490,759 warrants were exercised for cash consideration of $6.9 million. Equity Incentive Plan The Compensation Committee of the Company’s Board of Directors may grant awards under the Company’s equity incentive plan in the form of incentive stock options, non‑qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock‑based awards. The maximum number of shares issuable under the equity incentive plan is 1,400,000 shares with 468,826 shares remaining to be issued at December 31, 2017. All grants under the equity incentive plan will be issued at the fair value of the Company’s common stock on date of grant. As of December 31, 2017, all awards were restricted stock units. Restricted Stock Units Restricted stock units are generally subject to forfeiture if employment terminates prior to release of the restrictions. The Company expenses the cost of restricted stock units, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse. Restricted stock units have service, performance and market conditions for vesting. Those with service conditions vest in equal installments on each of the first through fourth anniversaries of the date of grant except for those granted to directors which vest over one year. Those with performance and market conditions vest in installments over four years based on the achievement of goals established by the Compensation Committee of the Company’s Board of Directors. Activity with respect to outstanding restricted stock units for the years ended December 31, 2017, 2016 and 2015 was as follows: Weighted- Average Grant-Date Fair Shares Value per Share Nonvested at January 1, 2015 245,752 $ 27 Granted 140,909 26 Vested (110,623) 28 Forfeited (101,520) 26 Nonvested at December 31, 2015 174,518 26 Granted 127,360 25 Vested (62,651) 25 Forfeited (12,537) 25 Nonvested at December 31, 2016 226,690 25 Granted 164,190 24 Vested (78,623) 25 Forfeited (1,167) 21 Nonvested at December 31, 2017 311,090 $ 25 As of December 31, 2017, there was $4.7 million of unrecognized share-based compensation expense related to nonvested restricted stock unit awards expected to vest. The cost is expected to be recognized over a weighted-average period of two years. The Company recognized compensation expense of $2.8 million, $2.3 million and $1.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. For the year ended December 31, 2017, the Company had granted restricted stock units with market conditions. The Company valued those units for expense recognition purposes using a Monte Carlo simulation model with an expected volatility for the Company’s shares of 31.5%, a risk free return of 1.37% and no expected dividends. The fair value as of the vesting date for the restricted stock units that vested during the years ended December 31, 2017, 2016 and 2015 was $1.3 million, $1.0 million and $2.6 million, respectively. Upon vesting, unit holders have the option to net share-settle to cover the required withholding tax and the remaining amount is converted into an equivalent number of shares of common stock. The total shares withheld were 21,106, 15,772 and 36,592 for the years ended December 31, 2017, 2016 and 2015, respectively, and were based on the value of the restricted stock units as determined by the Company’s closing stock price on the date of vesting. Total payments for the employees’ tax obligations to the tax authorities was $0.5 million, $0.4 million and $0.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. Other than reimbursements for tax withholdings, there was no cash received under the restricted stock unit arrangements. Performance Based Stock Compensation The Company has a performance based compensation plan. The incentive compensation is settled in March of each year for the prior year services and is based on Company performance relative to certain company specific metrics. The Company recognizes the expense during the performance period based on the expected compensation amount. Beginning for the 2016 performance period, a specified portion of the compensation amount for certain employees are settled in Company shares based on the share price at the date of settlement. There was no performance based compensation to be settled in stock for the year ended December 31, 2017. The estimated performance based compensation to be settled in stock amounted $0.6 million for the year ended December 31, 2016. The fair value of the shares granted under the plan in March 2017 amounted to $0.7 million. Upon grant, employees were required to net share-settle to cover the required withholding tax. Total payments for the employees’ tax obligations to the tax authorities by the Company amounted to $0.3 million. The net shares issued amounted to 17,174 shares which was based on the value of shares on the date of vesting.

Leases

Leases	12 Months Ended
	Dec. 31, 2017
Leases
Leases	11. Leases The Company leases certain facilities and equipment for use in the Company’s operations under several operating agreements. Certain of the leases provide for escalation or renegotiation of rental rates, and for extension of lease terms. Total rent expense for the Company amounted to $4.2 million, $4.6 million and $4.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. Information on the aggregate minimum rental commitments under non-cancelable operating leases is as follows (dollars in thousands): Years ended, December 31: 2018 $ 2,097 2019 1,910 2020 1,883 2021 1,266 2022 433 Thereafter 5,481 $ 13,070

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss)	12. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows (dollars in thousands): Unrealized Defined Benefit Gain (Loss) on Postretirement Investments Plans Total January 1, 2015 $ (64) $ (23,883) $ (23,947) Other comprehensive income (loss) for 2015, net of tax 64 (5,505) (5,441) December 31, 2015 — (29,388) (29,388) Other comprehensive loss for 2016, net of tax — (5,830) (5,830) December 31, 2016 — (35,218) (35,218) Other comprehensive income for 2017, net of tax — 19,254 19,254 December 31, 2017 $ — $ (15,964) $ (15,964) Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015 were as follows (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Retirement plans Amortization of gain/loss and settlement loss $ 3,781 $ 2,424 $ 8,862 Income tax provision on comprehensive income 1,437 921 3,368 Total $ 2,344 $ 1,503 $ 5,494 The amortization of gains, losses and settlement losses was recognized primarily in selling, general and administrative expense for all three periods presented.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	13. Commitments and Contingencies Long‑Term Fixed Supplier Commitments The Company has entered into agreements with various entities under long-term fixed contractual commitments primarily for technology services. Annual fixed fee commitments for agreements in effect at December 31, 2017, amounted to the following (dollars in thousands): Years ended, December 31: 2018 $ 9,936 2019 3,312 $ 13,248 Under the long-term agreements, the Company incurred costs amounting to $18.4 million, $23.0 million and $12.8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Trans-Pacific Submarine Cable In August 2014, the Company joined several other telecommunication companies to form a consortium to build and operate a trans-Pacific submarine cable system. The total system cost is $235 million and is primarily composed of a supply contract with the lead contractor. The Company invested approximately $25 million over the multi-year construction period for a fractional ownership in the system. The Company recognized its fractional share of the cost. In addition, the Company constructed a cable landing station in Hawaii and provides cable landing services. The system was completed in August 2017. As of December 31, 2017, the Company had incurred costs of $25.1 million primarily to the cable contractor for construction with all such costs capitalized. The Company has excess capacity on its share of the trans-Pacific cable that it makes available to other carriers for a fee. The Company has contracted and expects to enter into additional contracts with other carriers for long-term indefeasible right of use, or IRU, agreements for fiber circuit capacity. The Company may receive up-front payments for services to be delivered over a period of up to 25 years. As of December 31, 2017, the Company has entered into agreements for the sale of capacity and other services for $30.2 million, the majority of which has been received in up-front payments. As provided for in one of the agreements, funds of $5.0 million were held in escrow and released in August 2017 when the trans-Pacific cable was ready for service. The restricted cash was previously reflected in other current assets in the condensed consolidated balance sheet. A liability to provide services in the future for all up-front payments is included in advance billings and customer deposits and other liabilities. The Company is recognizing revenue for the circuits on a straight-line basis over the contract term. Connect America Fund Phase II In conjunction with reforming the Universal Service Fund, the Federal Communications Commission (“FCC”) established the Connect America Fund (“CAF”) which provides incremental support to broadband service providers. CAF Phase II is the long-term component of the program. In August 2015, the Company notified the FCC that it is accepting CAF Phase II support which amounts to $4.4 million in annual funding. Support is retroactive through the beginning of 2015, net of certain other receipts from the Universal Service Fund, and will continue for six years. Under the terms of CAF Phase II, the Company will offer broadband service at 10 Mbps downstream and 1 Mbps upstream or better to approximately 11,000 eligible locations in high-cost areas in the State of Hawaii and will provide voice and broadband services at reasonable rates. On a cumulative basis, as of December 31, 2017, the Company has an interim deployment obligation for approximately 4,400 locations. As of December 31, 2017, the Company had deployed to approximately 5,452 locations and expects to meet all of its interim and final deployment obligations. For the years ended December 31, 2017, 2016 and 2015, the Company recognized $4.4 million, $4.4 and $3.3 million, respectively, in CAF Phase II funding as revenue in the consolidated statements of income (loss). Installment Contracts The Company has various fixed installment contacts generally in conjunction with acquisition of assets. These agreements generally have a component representing interest at fixed rates in addition to principal. As of December 31, 2017, the commitments were as follows (dollars in thousands): Years ended, December 31: 2018 $ 3,544 2019 1,988 2020 1,280 2021 1,243 2022 1,020 Thereafter 5,746 14,821 Less amount representing interest (2,861) Present value 11,960 Current reflected in other current liabilities 2,978 Noncurrent reflected in other liabilities $ 8,982 Collective Bargaining Agreement The Company has a collective bargaining agreement with the International Brotherhood of Electrical Workers Local 1357 (“IBEW”) that is effective through September 30, 2022. The agreement covers approximately half of the Company’s workforce. Joint-Owned Utility Poles Each of the electric utilities for the four counties in the State of Hawaii have separate agreements with the Company for the joint ownership and maintenance of utility poles along with other third parties, such as the State of Hawaii. The agreements set forth various circumstances requiring pole removal, installation and replacement and the sharing of costs among the joint pole owners. The agreements allow for the cost of work done by one joint pole owner to be shared by the other joint pole owners based on the apportionment of costs in the agreements. Generally, the electric utilities have maintained, replaced and installed the majority of the jointly-owned poles and have billed the other joint pole owners for their respective share of the costs. The Company has a disagreement with the common owner of the utilities in three of the counties in Hawaii regarding the amount the utilities are requesting for their share of the capitalized costs. For one of the three utilities referenced above, a dispute resolution process is proceeding as specified by the joint pole agreement. For another of the utilities, a complaint for payment was filed by the utility with the State court in 2016. The Company has negotiated the structure for a potential resolution of the dispute with the three utilities. However, implementation depends on entering into various binding agreements with the utilities and approval of the Hawaii Public Utilities Commission with its jurisdiction over both the Company and the utilities. Management of the Company believes the amount recognized in the Company’s consolidated financial statements for amounts due the utilities is reflective of what is owed and a reasonable estimate of the final settlement to be reached with the utilities. Litigation The Company is involved in litigation arising in the normal course of business. The outcome of litigation is not expected to have a material adverse impact on the Company’s consolidated financial statements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	14. Fair Value of Financial Instruments The following method and assumptions were used to estimate the fair value of each class of financial instruments for which it is practical to estimate the fair value. Cash and cash equivalents, accounts receivable and accounts payable – The carrying amount approximates fair value. The valuation is based on settlements of similar financial instruments all of which are short-term in nature and generally settled at or near cost. Cash and cash equivalents are measured at Level 1. Debt – The fair value of debt is based on the value at which debt is trading among holders. The estimated fair value of financial instruments is as follows (dollars in thousands): Carrying Fair Value Value December 31, 2017 Liabilities - long-term debt (carried at cost) 309,316 315,339 December 31, 2016 Liabilities - long-term debt (carried at cost) 284,699 293,765 Fair Value Measurements The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Liabilities carried at amortized cost with fair value disclosure on a recurring basis represent long-term debt. A summary is as follows (dollars in thousands): December 31, 2017 2016 Liability value measurements using: Quoted prices in active markets for identical liabilities (Level 1) $ — $ — Significant other observable inputs (Level 2) 315,339 293,765 Significant unobservable inputs (Level 3) — — $ 315,339 $ 293,765

Cash Flow Information

Cash Flow Information	12 Months Ended
	Dec. 31, 2017
Cash Flow Information
Cash Flow Information	15. Cash Flow Information Supplemental cash flow information is as follows: For the Year Ended December 31, 2017 2016 2015 Cash paid during the year: Income taxes paid $ — $ — $ — Interest paid, net of amounts capitalized 14,666 13,706 16,178 Non-cash investing activities - capital assets acquired under installment contracts 2,497 1,309 90 Non-cash financing activities - common shares issued for performance based compensation, net of withholding taxes paid 400 — — The Company includes restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The following is a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets to the total of such amounts in the consolidated statements of cash flows (dollars in thousands): December 31, 2017 2016 Cash and cash equivalents $ 40,759 $ 15,821 Restricted cash included in other current assets Escrow deposits for capacity sales — 5,000 Restricted cash included in other assets Other 250 325 Total cash, cash equivalents and restricted cash $ 41,009 $ 21,146 The escrow deposits for capacity sales are more fully described in Note 13. The restriction on the escrow deposits was removed in 2017.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2017
Segment Information
Segment Information	16. Segment Information The Company, prior to 2017, operated in two reportable segments of telecommunications and data center services. This conclusion was based on how resources were allocated and assessed by the Company’s Chief Executive Officer, the Company’s chief operating decision maker. The Company had initially formed the data center services segment in 2013 with the expectation that the segment would operate independently and focus on colocation services. The Company’s strategy has evolved to emphasize a bundle of telecommunication services to its customers including colocation. In addition, the Company is focusing its efforts on obtaining the benefit of cross selling services and gaining efficiencies of a more integrated operation. With this change in strategy, the Company has implemented certain operational, organizational and reporting changes. Among the changes is the Chief Executive Officer is no longer provided information with which to separately evaluate the data center services segment or any other component for standalone performance or resource allocation. Hence, given the integrated nature of the Company’s telecommunication operations, including its leveraging of its primary network to provide the majority of its services, management has concluded the Company now has only one segment. The following table provides information on the Company’s revenue by channel (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Business services $ 169,477 $ 180,663 $ 174,689 Consumer services 135,326 142,939 145,626 Wholesale carrier data 50,741 53,664 56,430 Other 12,875 15,697 16,668 $ 368,419 $ 392,963 $ 393,413

Quarterly Financial Information

Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)	17. Quarterly Financial Information (Unaudited) The Company’s quarterly operating results are presented in the following table (dollars in thousands, except per share amounts): Earnings Earnings Operating Net (Loss) (Loss) Operating Income Income per share - per share - Revenues (Loss) (Loss) basic diluted Year Ended December 31, 2017: First Quarter $ 94,510 $ 655 $ (1,952) $ (0.17) $ (0.17) Second Quarter 91,298 2,767 (3,476) (0.30) (0.30) Third Quarter 91,013 (1,088) (92,719) (8.00) (8.00) Fourth Quarter 91,598 (333) (9,094) (0.78) (0.78) Total $ 368,419 $ 2,001 $ (107,241) $ (9.27) $ (9.27) Year Ended December 31, 2016: First Quarter $ 98,794 $ 4,500 $ 154 $ 0.01 $ 0.01 Second Quarter 99,541 6,889 1,445 0.13 0.13 Third Quarter 97,848 3,703 (279) (0.02) (0.02) Fourth Quarter 96,780 3,700 (214) (0.02) (0.02) Total $ 392,963 $ 18,792 $ 1,106 $ 0.10 $ 0.10 In the second quarter of 2017, the Company recognized a loss on early extinguishment of debt of $4.8 million (see Note 7). The quarterly results of operations for the year ended December 31, 2017 include pension settlement losses (see Note 8) for the first, second, third and fourth quarters amounting to $2.0 million, $0.3 million, $1.1 million and $0.6 million, respectively. The quarterly results of operations for the year ended December 31, 2016 include pension settlement losses for the third and fourth quarters amounting to $0.5 million and $0.8 million, respectively. During the third quarter of 2017, the Company established a full valuation allowance for deferred income tax assets resulting in an income tax expense of $89.4 million for the quarter.

Restricted Net Assets and Paren

Restricted Net Assets and Parent Company Condensed Financial Information	12 Months Ended
	Dec. 31, 2017
Restricted Net Assets and Parent Company Condensed Financial Information
Restricted Net Assets and Parent Company Condensed Financial Information	18. Restricted Net Assets and Parent Company Condensed Financial Information Agreements with the HPUC and the debt agreements of Hawaiian Telcom Communications, Inc. limit the ability of the Company’s subsidiaries to pay dividends to the parent company and restrict the net assets of all of the Company’s subsidiaries. The following condensed financial information for Hawaiian Telcom Holdco, Inc. reflects parent company financial information only. Such financial information should be read in conjunction with the consolidated financial statements of the Company. The parent company has accounted for its investment in its consolidated subsidiary on the equity method of accounting. No dividends were paid by the subsidiaries to the parent company at any time during the existence of the parent company. Hawaiian Telcom Holdco, Inc. (Parent Company Only) Condensed Statements of Income (Loss) and Comprehensive Income (Loss) (Dollars in Thousands) For the For the Year Ended December 31, 2017 2016 2015 Equity in earnings (loss) of Hawaiian Telcom Communications, Inc. $ (107,241) $ 1,106 $ 1,100 Income tax provision — — — Net income (loss) (107,241) 1,106 1,100 Other comprehensive income (loss), net of tax 19,254 (5,830) (5,441) Comprehensive loss $ (87,987) $ (4,724) $ (4,341) Hawaiian Telcom Holdco, Inc. (Parent Company Only) Condensed Balance Sheets (Dollars in Thousands) December 31, 2017 2016 Assets Investment in Hawaiian Telcom Communications, Inc. $ 220,209 $ 304,914 Total assets $ 220,209 $ 304,914 Stockholders’ Equity Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,587,963 and 11,513,279 shares issued and outstanding at December 31, 2017 and 2016, respectively $ 116 $ 115 Additional paid-in capital 182,689 179,958 Accumulated other comprehensive loss (15,964) (35,218) Retained earnings 53,368 160,059 Total stockholders’ equity $ 220,209 $ 304,914 Hawaiian Telcom Holdco, Inc. (Parent Company Only) Condensed Statements of Cash Flows (Dollars in Thousands) For the For the Year Ended December 31, 2017 2016 2015 Net income (loss) $ (107,241) $ 1,106 $ 1,100 Undistributed earnings (loss) of Hawaiian Telcom Communications, Inc. 107,241 (1,106) (1,100) Net cash provided by operating activities, net change in cash and ending balance of cash $ — $ — $ —

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements of the Company include the results of operations, financial position, and cash flows of Hawaiian Telcom Holdco, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Revenue Recognition	Revenue Recognition Revenue is recognized when evidence of an arrangement exists, the earnings process is complete and collectibility is reasonably assured. The prices for certain services are filed in tariffs with the regulatory body that exercises jurisdiction over the services. Basic local service, enhanced calling features such as caller ID, special access circuits, long‑distance flat rate calling plans, most data services, internet, television, data center colocation and wireless services are billed one month in advance. Revenue for these services is recognized in the month services are rendered. The portion of advance‑billed services associated with services that will be delivered in a subsequent period is deferred and recorded as a liability in advance billings and customer deposits. Amounts billed to customers for activating wireline service are deferred and recognized over the average customer relationship. The costs associated with activating such services are deferred and recognized as an operating expense over the same period. Costs in excess of revenues are recognized as expense in the period in which activation occurs. Other charges for activation are generally deferred and recognized in revenue over the contract term. Revenues for providing usage based services, such as per‑minute long‑distance service, access charges billed to long‑distance companies for originating and terminating long‑distance calls on the Company’s network and video on demand, are billed in arrears. Revenues for these services are based on actual rated usage and, where necessary, historical usage patterns, and are recognized in the month services are rendered. For long-term indefeasible right of use, or IRU, contracts for fiber circuit capacity, the Company may receive up-front payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract. Universal Service revenue subsidies, including those related to Connect America Fund Phase II, are government‑sponsored support received in association with providing service in mostly rural, high‑cost areas. These revenues are typically calculated by the government agency responsible for administering the support program. These revenues are recognized as granted by the government agency. Telecommunication systems and structured cabling project revenues are recognized on a percentage completion basis, generally based on the relative portion of costs incurred to total estimated costs of a project, except for short duration projects which are recognized upon completion of the project. Maintenance services are recorded when the service is provided. With respect to arrangements with multiple deliverables, the Company determines whether more than one unit of accounting exists in an arrangement. To the extent that the deliverables are separable into multiple units of accounting, total consideration is allocated to the individual units of accounting based on their relative fair value, determined by the price of each deliverable when it is regularly sold on a stand‑alone basis. Revenue is recognized for each unit of accounting as delivered or as service is performed depending on the nature of the deliverable comprising the unit of accounting.
Taxes Collected from Customers	Taxes Collected from Customers The Company presents taxes collected from customers and remitted to governmental authorities on a gross basis, including such amounts in the Company’s reported operating revenues and selling, general and administrative expenses. Such amounts represent primarily Hawaii state general excise taxes and HPUC fees. Such taxes and fees amounted to $8.4 million, $8.4 million and $8.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and money market accounts with maturities at acquisition of three months or less. The majority of cash balances at December 31, 2017 are held in one bank in demand deposit accounts.
Supplemental Non-Cash Investing and Financing Activities	Supplemental Non‑Cash Investing and Financing Activities Accounts payable included $27.4 million, $26.1 million and $20.6 million at December 31, 2017, 2016 and 2015, respectively, for additions to property, plant and equipment.
Receivables	Receivables The Company recognizes accounts receivable net of an allowance for doubtful accounts. The Company makes estimates of the uncollectibility of its accounts receivable by specifically analyzing accounts receivable and historic bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in its customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. After multiple attempts at collection of delinquent accounts, the balance due is deemed uncollectible and charged against the allowance.
Material and Supplies	Material and Supplies Material and supplies which consist mainly of cable, supplies and replacement parts, are stated at the lower of cost, determined principally by the average cost method, or net realizable value.
Property and Depreciation	Property and Depreciation Property, plant and equipment are carried at cost. Depreciation has been calculated using the composite remaining life method and straight-line depreciation. The composite method depreciates the remaining net investment in telephone plant over remaining economic asset lives by asset category. This method requires periodic review and revision of depreciation rates. The average economic lives utilized for assets are as follows: building – 18 to 34 years; cable and wire – 11 to 37 years; switching and circuit equipment – 6 to 15 years; and other property – 4 to 17 years.
Software	Software The Company capitalizes the costs associated with externally acquired software for internal use. Project costs associated with internally developed software are segregated into three project stages: preliminary project stage, application development stage and post‑implementation stage. Costs associated with both the preliminary project stage and post‑implementation stage are expensed as incurred. Costs associated with the application development stage are capitalized. Software maintenance and training costs are expensed as incurred. Capitalized software is generally amortized on a straight‑line method basis over its useful life, not to exceed five years.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill and other indefinite‑lived intangible assets are not amortized. Such assets are reviewed annually, or more frequently under various conditions, for impairment. The goodwill impairment test involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of the reporting unit, for goodwill, or the indefinite-lived intangible asset exceeds its fair value, the impairment loss is recognized for the amount of the excess. The Company performs its annual impairment test during the fourth quarter, primarily using a market valuation and discounted cash flows methodology. Intangible assets with definite lives, including the value assigned to the customer base, are being amortized over the remaining estimated lives. For customer relationship intangibles, amortization is calculated using a declining balance method in relation to estimated retention lives of acquired customers.
Impairment of Long-Lived Assets and Definite-Lived Intangibles	Impairment of Long‑Lived Assets and Definite-Lived Intangibles The Company assesses the recoverability of long‑lived assets, including property, plant and equipment and definite‑lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such cases, if the sum of the expected cash flows, undiscounted and without interest, resulting from use of the asset are less than the carrying amount, an impairment loss is recognized based on the difference between the carrying amount and the fair value of the assets.
Debt Issuance	Debt Issuance Deferred financing costs and original issue discount are amortized over the term of the related debt issuance using the effective interest method and presented as a direct deduction of the carrying amount of the debt.
Income Taxes	Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities at each balance sheet date using enacted tax rates expected to be in effect in the year the differences are expected to reverse. Valuation allowances are recognized to reduce deferred tax assets to the amount that will more likely than not be realized. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statements of income (loss).
Employee Benefit Plans	Employee Benefit Plans Pension and postretirement health and life insurance benefits earned during the year as well as interest on projected benefit obligations are accrued currently. Actuarial gains and losses are amortized over the average remaining service period or expected life of participants as applicable.
Maintenance and Repairs	Maintenance and Repairs The cost of maintenance and repairs, including the cost of replacing minor items not constituting substantial betterments, is charged to expense as these costs are incurred.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising expense amounted to $5.8 million, $6.1 million and $5.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Stock Based Compensation	Stock Based Compensation The Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated fair values. The fair value of restricted stock units is generally based on the closing price of the Company’s common stock on the date of grant. The fair value of market-based stock awards is estimated using a statistical pricing model as of the date of grant. Because stock-based compensation expense is based on awards that ultimately vest, it has been reduced for actual forfeitures.
Earnings per Share	Earnings per Share Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing earnings by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing earnings, adjusted for the effect, if any, from assumed conversion of all potentially dilutive common shares outstanding, by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. The denominator used to compute basic and diluted earnings per share is as follows: For the Year Ended December 31, 2017 2016 2015 Basic earnings per share - weighted average shares 11,573,435 11,503,296 10,977,341 Effect of dilutive securities: Employee and director restricted stock units — 52,701 83,727 Warrants — — 325,235 Diluted earnings per share - weighted average shares 11,573,435 11,555,997 11,386,303 The computation of weighted average dilutive shares outstanding excluded grants of restricted stock units convertible into 311,090 shares for the year ended December 31, 2017. For the year ended December 31, 2017, the Company incurred a net loss so the restricted stock units are anti-dilutive to the computation of diluted net loss per share. For the years ended December 31, 2016 and 2015, the antidilutive restricted stock units excluded from the computation of weighted average dilutive shares outstanding were not significant.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued a new standard that simplifies the accounting for employee share-based payment transactions. The new standard impacts the accounting for related income taxes, forfeitures and statutory tax withholding requirements as well as the classification of certain related payments in the statement of cash flows. The new accounting guidance was effective for the Company in 2017. The adoption method required is specified as retrospective, modified retrospective or prospective for each of the various accounting provisions impacted by this new standard. The Company is accounting for forfeitures on its share-based transactions as they occur beginning January 1, 2017. The impact of the modified retrospective adoption of this provision was not significant. In addition, the Company began accounting for excess tax benefits and tax deductions on share-based award settlements prospectively as income tax expense or benefit in its consolidated statements of income (loss) beginning January 1, 2017. Excess tax benefits that were not recognized prior to January 1, 2017 because the related tax deduction had not reduced taxes currently payable have been recognized on a modified retrospective basis through a cumulative effect adjustment which increased retained earnings as of January 1, 2017 by $0.6 million. In January 2017, the FASB issued new accounting guidance simplifying the test for goodwill impairment. The new guidance eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the standard, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company adopted the standard effective December 31, 2017 on a prospective basis with no current impact. Recently Issued Accounting Pronouncement on Revenue Recognition In May 2014, the FASB issued a new accounting standard which provides guidance for revenue recognition. The new accounting standard supersedes existing revenue recognition requirements and most industry-specific guidance. The standard’s core principal is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods and services. The Company adopted the new standard effective January 1, 2018. The Company selected the modified retrospective method of adoption which requires a cumulative effect adjustment to retained earnings as of the adoption date. The initial application of the new standard was limited to contracts not yet completed as of the effective date. The details of significant changes in the Company’s revenue recognition and the quantitative impact are provided below. Prior to 2018, the Company recognized revenue for telecommunication and structured cabling project revenues on a percentage of completion basis, generally based on the relative portion of costs incurred to total estimated costs of a project, except for short duration projects which were recognized upon completion of the project. Beginning in 2018, the Company is recognizing revenue on all projects as completed. In addition, beginning in 2018, the Company began recognizing a financing component to the up-front payments for services to be delivered under indefeasible right of use contracts for fiber circuit capacity. Beginning in 2018, the Company began deferring certain costs to obtain a contract and is recognizing such costs over the expected contract term. Prior to 2018, the Company had deferred certain costs related to activation in an amount that approximated the related revenue and recognized such costs over the expected customer life. The Company has concluded that such costs are no longer significant or are accounted for under other accounting standards such as those related to capitalization in conjunction with installation of an asset. The new accounting standard also provides guidance on presentation of contract assets and liabilities in the consolidated balance sheet. The standard provides specific guidance on presentation of advance billings. Beginning in 2018, a liability is recognized for advance billings where cash has been received in advance of delivery of goods or services, or when payment is due and the contract is noncancellable. Prior to 2018, a liability was recognized when the related goods or services were invoiced in advance of delivery of goods or services. The cumulative effect of application of the new accounting standard as of January 1, 2018, net of estimated tax, was to increase retained earnings by an amount estimated at $4.0 million to $6.0 million. The impact will be reflected in the Company’s condensed consolidated financial statements beginning with the quarter ended March 31, 2018. In preparation for adoption of the new accounting standard, the Company has implemented internal controls, system functionality and revised business processes to prepare financial information in accordance with the standard. These new processes and procedures ensure data utilized for financial reporting is complete and accurate and is assessed in accordance with the guidelines of the standard. The Company is implementing new internal controls to address risks associated with applying the new revenue recognition model as well as monitoring controls to identify new sales arrangements or changes in the business environment that will affect the Company’s current accounting assessment. Other Recently Issued Accounting Pronouncements In February 2016, the FASB issued a new standard which revises the accounting for leases. The new standard is effective for the Company in the first quarter of 2019. The standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset and for operating leases the lessee would recognize lease expense on a straight-line basis. The standard requires use of a modified retrospective transition approach beginning with the earliest period presented in the period of transition. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In June 2016, the FASB issued amended guidance on accounting for the impairment of financial instruments. The standard requires adoption of an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. For the Company, it is anticipated this will impact primarily the accounting for credit losses on trade receivables. The new standard is effective for the Company in the first quarter of 2020 with early adoption permitted from the first quarter of 2019. The provisions of the new standard expected to impact the Company must be adopted using the modified retrospective approach. The Company is evaluating the effect of the guidance on the Company’s consolidated financial statements and financial statement disclosures. In March 2017, the FASB issued a new standard that amends the income statement presentation of the components of net periodic benefit cost for defined benefit and other postretirement plans. The new standard requires that the current service cost component be disaggregated from the other components of net benefit cost. The other components must be presented elsewhere in the income statement outside of income from operations. In addition, only the service-cost component of net benefit cost is eligible for capitalization related to self-constructed assets. The new standard is effective for the Company beginning January 1, 2018 with early adoption permitted. The presentation requirements must be adopted on a retrospective basis and the change in capitalization methodology applied on a prospective basis. The Company currently presents the entire net benefit cost in income from operations but has disclosed the components of net benefit costs in Note 8 to the consolidated financial statements. The Company has adopted this standard effective January 1, 2018 and will reflect the new presentation of net periodic benefit cost beginning with its condensed consolidated financial statements for the quarter ended March 31, 2018. In May 2017, the FASB issued additional guidance for stock compensation accounting. The guidance provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. The standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The amendment to the accounting standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and the provisions must be applied prospectively to a stock award modified on or after the adoption date. The Company adopted the new standard effective January 1, 2018 with no current impact. In February 2018, the FASB amended accounting rules to allow for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (see Note 9). Accounting rules generally require deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. Therefore, the tax effects of items within accumulated other comprehensive income may not reflect the appropriate tax rate (referred to as stranded tax effects). Consequently, the amendment allows for an optional elimination of the stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendment is effective for the Company in the first quarter of 2018. The Company has chosen not to adopt the standard early, though allowed. The Company is still evaluating the potential impact of the accounting amendment and has not yet concluded if it will adopt the optional provisions of the amendment. If the provisions are adopted, the Company expects to apply the standard in the period of adoption rather than retrospectively.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Schedule of denominator used to compute basic and diluted earnings per share	For the Year Ended December 31, 2017 2016 2015 Basic earnings per share - weighted average shares 11,573,435 11,503,296 10,977,341 Effect of dilutive securities: Employee and director restricted stock units — 52,701 83,727 Warrants — — 325,235 Diluted earnings per share - weighted average shares 11,573,435 11,555,997 11,386,303

Receivables, Net (Tables)

Receivables, Net (Tables)	12 Months Ended
	Dec. 31, 2017
Receivables, Net
Schedule of receivables	Receivables consisted of the following (dollars in thousands): December 31, 2017 2016 Customers and other $ 36,118 $ 37,408 Allowance for doubtful accounts (3,889) (4,031) $ 32,229 $ 33,377
Summary of activity for the allowance for doubtful accounts	The following is a summary of activity for the allowance for doubtful accounts (dollars in thousands): Additional Charges to Deductions Beginning Costs and from Ending Balance Expenses Allowance Balance January 1 to December 31, 2017 $ 4,031 $ 3,797 $ (3,939) $ 3,889 January 1 to December 31, 2016 3,931 4,031 (3,931) 4,031 January 1 to December 31, 2015 3,755 3,648 (3,472) 3,931

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment
Schedule of property, plant and equipment	Property, plant and equipment consisted of the following (dollars in thousands): December 31, 2017 2016 Land $ 67,278 $ 67,278 Buildings 120,999 115,775 Central office equipment 222,248 208,004 Outside communications plant 479,655 412,244 Other equipment, vehicles and furniture 104,846 87,849 Construction in progress 34,759 55,606 Software 90,652 78,547 Other 10,834 10,834 Property, plant and equipment cost $ 1,131,271 $ 1,036,137 Less accumulated depreciation (522,973) (440,140) $ 608,298 $ 595,997

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Other Intangible Assets
Schedule of identifiable intangible assets	The gross carrying amount and accumulated amortization of the identifiable intangible assets are as follows (dollars in thousands): December 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Value Amortization Value Value Amortization Value Subject to amortization: Customer relationships $ 21,709 $ 17,983 $ 3,726 $ 21,709 $ 16,299 $ 5,410 Trade name and other 320 320 — 320 302 18 22,029 18,303 3,726 22,029 16,601 5,428 Not subject to amortization: Brand name 27,300 — 27,300 27,300 — 27,300 27,300 — 27,300 27,300 — 27,300 $ 49,329 $ 18,303 $ 31,026 $ 49,329 $ 16,601 $ 32,728
Schedule of estimated amortization expense	Estimated amortization expense for the next five years and thereafter is as follows (dollars in thousands): Year ended December 31, 2018 $ 1,307 2019 930 2020 574 2021 270 2022 223 Thereafter 422 $ 3,726

Accrued Expenses and Other Cu31

Accrued Expenses and Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued Expenses and Other Current Liabilities.
Schedule of accrued expenses	Accrued expenses consisted of the following (dollars in thousands): December 31, 2017 2016 Salaries and benefits $ 7,875 $ 11,662 Interest 2,890 2,583 Other taxes 971 1,048 $ 11,736 $ 15,293
Other current liabilities	Other current liabilities consisted of the following (dollars in thousands): December 31, 2017 2016 Other postretirement benefits, current $ 3,226 $ 3,332 Installment financing contracts, current 2,978 2,157 Other 570 838 $ 6,774 $ 6,327
Other liabilities, noncurrent	Other liabilities, noncurrent, consisted of the following (dollars in thousands): December 31, 2017 2016 Deferred revenue, noncurrent $ 28,036 $ 7,453 Installment financing contracts, noncurrent 8,982 8,692 Other 1,909 2,094 $ 38,927 $ 18,239

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Long-Term Debt
Schedule of long-term debt	Long‑Term debt consists of the following (dollars in thousands): Average Interest Rate Final December 31, December 31, 2017 Maturity 2017 2016 Term loan A-1 5.13 % May 4, 2022 $ 87,750 $ — Term loan A-2 5.38 May 4, 2023 227,125 — Term loan retired NA NA — 290,138 Debt issue costs and issue discount (5,559) (5,439) 309,316 284,699 Current 10,250 3,000 Noncurrent $ 299,066 $ 281,699
Schedule of maturities of long-term debt	The maturities of debt at December 31, 2017 are as follows (dollars in thousands): Year ended December 31, 2018 $ 10,250 2019 13,125 2020 16,000 2021 16,000 2022 81,250 Thereafter 178,250 $ 314,875

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2017
Employee Benefit Plans
Schedule of change in projected benefit obligation, change in plan assets, funded status and weighted average actuarial assumptions	The change in projected benefit obligation, change in plan assets, funded status and weighted average actuarial assumptions were as follows (dollars in thousands): Pension Benefits Other Postretirement Benefits December 31, December 31, 2017 2016 2017 2016 Change in projected benefit obligation: Obligation at beginning of period $ 203,316 $ 203,455 $ 73,789 $ 60,749 Service cost — — 898 1,104 Interest cost 6,705 7,347 2,193 2,637 Actuarial (gain) loss 11,574 3,686 (1,641) 11,036 Plan change — — (18,262) — Benefits paid (26,962) (11,172) (1,844) (1,737) Projected benefit obligation at end of period 194,633 203,316 55,133 73,789 Change in plan assets: Fair value of plan assets at beginning of period 167,843 156,678 — — Return on plan assets 22,525 13,032 — — Employer contributions 3,181 9,305 1,844 1,737 Benefits paid (26,962) (11,172) (1,844) (1,737) Fair value of plan assets at end of period 166,587 167,843 — — Funded status: Plan assets less than projected benefit obligation $ (28,046) $ (35,473) $ (55,133) $ (73,789) Amounts recognized on balance sheet: Other current liabilities $ — $ — $ (3,226) $ (3,332) Employee benefit obligation, noncurrent (28,046) (35,473) (51,907) (70,457) Net amount recognized $ (28,046) $ (35,473) $ (55,133) $ (73,789) Actuarial loss recognized in accumulated other comprehensive income (loss) $ (31,886) $ (36,919) $ (816) $ (20,040) Actuarial assumptions: Measurement date, December 31 Discount rate ranges from a low of % % % % Discount rate ranges to a high of % % % % Assumed health care cost trend rate, current NA NA % % Assumed health care cost trend rate, ultimate NA NA % % Assumed health care cost trend rate, ultimate year NA NA
Schedule of the fair values of pension plan assets based on trading values or fund net asset value, by asset category	The fair values of the Company’s pension plan assets at December 31, 2017 and 2016, based on trading values or fund net asset value, by asset category and basis of valuation, are as follows (dollars in thousands): Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total 2017 Common stocks - domestic large cap $ 9,660 $ — $ — $ 9,660 Equity funds - large cap index — 92,731 — 92,731 Fixed income funds - diversified bond — 63,768 — 63,768 Short term investment funds — 428 — 428 $ 9,660 $ 156,927 $ — $ 166,587 2016 Common stocks - domestic large cap $ 10,201 $ — $ — $ 10,201 Equity funds - large cap index — 93,576 — 93,576 Fixed income funds - diversified bond — 63,613 — 63,613 Short term investment funds — 453 — 453 $ 10,201 $ 157,642 $ — $ 167,843
Schedule of projected benefit payments	The Company projects that its plans will make the following benefit payments for the years ended December 31 (dollars in thousands): Other Pension Plans Postretirement Benefits Paid Benefits Paid 2018 $ 43,041 $ 3,284 2019 12,912 3,435 2020 13,442 3,541 2021 11,871 3,556 2022 13,458 3,504 2023 through 2027 54,687 16,628 $ 149,411 $ 33,948
Schedule of one-percentage point change in assumed health care cost trend rates	A one‑percentage point change in the assumed health care cost trend rates would have the following annual effects (dollars in thousands): 1-Percentage 1-Percentage Point Increase Point Decrease Effect on total of service and interest costs components $ NONE $ NONE Effect on postretirement benefit obligation NONE NONE
Pension
Employee Benefit Plans
Schedule of components of benefit costs and weighted average actuarial assumptions	For the For the Year Ended December 31, 2017 2016 2015 Interest cost $ 6,705 $ 7,347 $ 7,994 Expected asset return (10,376) (10,172) (12,565) Amortization of loss 464 574 186 Net periodic benefit income (3,207) (2,251) (4,385) Settlement loss 3,995 1,277 8,088 Total benefit (income) expense $ 788 $ (974) $ 3,703 Actuarial assumptions: Discount rate ranges from a low of % % % Discount rate ranges to a high of % % % Expected return on plan assets % % %
Other Postretirement Benefits
Employee Benefit Plans
Schedule of components of benefit costs and weighted average actuarial assumptions	For the For the Year Ended December 31, 2017 2016 2015 Service cost $ 898 $ 1,104 $ 1,088 Interest cost 2,193 2,637 2,355 Amortization of (gain) loss (678) 573 588 Total benefit expense $ 2,413 $ 4,314 $ 4,031 Actuarial assumptions: Discount rate ranges from a low of % % % Discount rate ranges to a high of % % % Assumed health care cost trend rate, current % % % Assumed health care cost trend rate, ultimate % % % Assumed health care cost trend rate, ultimate year

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes
Schedule of components of income tax provision	The components of the income tax provision are as follows (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Current Federal $ — $ — $ — State and local (626) (741) (601) (626) (741) (601) Deferred Federal 77,533 1,160 1,726 State and local 11,095 172 232 88,628 1,332 1,958 Total income tax provision $ 88,002 $ 591 $ 1,357
Schedule of reconciliation of income tax provision	The income tax provision differs from the amounts determined by applying the statutory federal income tax rate of 34% to the income (loss) before income tax provision for the following reasons (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Income tax (benefit) at federal rate $ (6,541) $ 577 $ 835 Increase (decrease) resulting from: State income taxes, net of federal income tax (813) 101 104 Permanent difference for compensation limitation — — 637 Expense not deductible for tax — 292 98 Tax credit included in taxable income 238 283 252 Other permanent differences 71 20 110 Capital goods excise tax credit (626) (741) (601) Change in federal income tax rate 28,018 — — Other, net 132 74 54 Change in valuation allowance 67,523 (15) (132) Total income tax provision $ 88,002 $ 591 $ 1,357
Schedule of deferred income taxes	Deferred income taxes consisted of the following (dollars in thousands): December 31, 2017 2016 Deferred tax liabilities: Property and equipment $ 33,215 $ 46,965 Other basis differences 329 533 33,544 47,498 Deferred tax assets: Net operating loss and credit carryforwards 61,017 66,580 Intangible assets 13,877 30,913 Expenses deferred for tax 2,933 5,347 Employee benefits 15,851 33,434 Other basis differences 2,560 3,730 96,238 140,004 Valuation allowance (63,604) (335) 32,634 139,669 Deferred tax asset (liability), net $ (910) $ 92,171
Summary of activity for the valuation allowance	The following is a summary of activity for the valuation allowance (dollars in thousands): Charge (Credit) to Income Tax Beginning Expense or Ending Balance Equity Balance January 1 to December 31, 2017 $ 335 $ 63,269 $ 63,604 January 1 to December 31, 2016 350 (15) 335 January 1 to December 31, 2015 482 (132) 350

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity
Schedule of activity with respect to outstanding restricted stock units	Weighted- Average Grant-Date Fair Shares Value per Share Nonvested at January 1, 2015 245,752 $ 27 Granted 140,909 26 Vested (110,623) 28 Forfeited (101,520) 26 Nonvested at December 31, 2015 174,518 26 Granted 127,360 25 Vested (62,651) 25 Forfeited (12,537) 25 Nonvested at December 31, 2016 226,690 25 Granted 164,190 24 Vested (78,623) 25 Forfeited (1,167) 21 Nonvested at December 31, 2017 311,090 $ 25

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2017
Leases
Schedule of aggregate minimum rental commitments under non-cancelable operating leases	Information on the aggregate minimum rental commitments under non-cancelable operating leases is as follows (dollars in thousands): Years ended, December 31: 2018 $ 2,097 2019 1,910 2020 1,883 2021 1,266 2022 433 Thereafter 5,481 $ 13,070

Accumulated Other Comprehensi37

Accumulated Other Comprehensive Loss (Tables)	12 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss).
Schedule of changes in components of accumulated other comprehensive (income) loss	The components of accumulated other comprehensive income (loss) are as follows (dollars in thousands): Unrealized Defined Benefit Gain (Loss) on Postretirement Investments Plans Total January 1, 2015 $ (64) $ (23,883) $ (23,947) Other comprehensive income (loss) for 2015, net of tax 64 (5,505) (5,441) December 31, 2015 — (29,388) (29,388) Other comprehensive loss for 2016, net of tax — (5,830) (5,830) December 31, 2016 — (35,218) (35,218) Other comprehensive income for 2017, net of tax — 19,254 19,254 December 31, 2017 $ — $ (15,964) $ (15,964)
Schedule of reclassifications out of accumulated other comprehensive income (loss)	Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015 were as follows (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Retirement plans Amortization of gain/loss and settlement loss $ 3,781 $ 2,424 $ 8,862 Income tax provision on comprehensive income 1,437 921 3,368 Total $ 2,344 $ 1,503 $ 5,494

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Schedule of annual fixed fee commitments	Annual fixed fee commitments for agreements in effect at December 31, 2017, amounted to the following (dollars in thousands): Years ended, December 31: 2018 $ 9,936 2019 3,312 $ 13,248
Schedule of other fixed installment contracts	As of December 31, 2017, the commitments were as follows (dollars in thousands): Years ended, December 31: 2018 $ 3,544 2019 1,988 2020 1,280 2021 1,243 2022 1,020 Thereafter 5,746 14,821 Less amount representing interest (2,861) Present value 11,960 Current reflected in other current liabilities 2,978 Noncurrent reflected in other liabilities $ 8,982

Fair Value of Financial Instr39

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value of Financial Instruments
Schedule of estimated fair value of financial instruments	The estimated fair value of financial instruments is as follows (dollars in thousands): Carrying Fair Value Value December 31, 2017 Liabilities - long-term debt (carried at cost) 309,316 315,339 December 31, 2016 Liabilities - long-term debt (carried at cost) 284,699 293,765
Schedule of liabilities measured at fair value on a recurring basis	Liabilities carried at amortized cost with fair value disclosure on a recurring basis represent long-term debt. A summary is as follows (dollars in thousands): December 31, 2017 2016 Liability value measurements using: Quoted prices in active markets for identical liabilities (Level 1) $ — $ — Significant other observable inputs (Level 2) 315,339 293,765 Significant unobservable inputs (Level 3) — — $ 315,339 $ 293,765

Cash Flow Information (Tables)

Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2017
Cash Flow Information
Schedule of supplemental cash flow information	For the Year Ended December 31, 2017 2016 2015 Cash paid during the year: Income taxes paid $ — $ — $ — Interest paid, net of amounts capitalized 14,666 13,706 16,178 Non-cash investing activities - capital assets acquired under installment contracts 2,497 1,309 90 Non-cash financing activities - common shares issued for performance based compensation, net of withholding taxes paid 400 — —
Schedule of reconciliation of cash, cash equivalents and restricted cash	The following is a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets to the total of such amounts in the consolidated statements of cash flows (dollars in thousands): December 31, 2017 2016 Cash and cash equivalents $ 40,759 $ 15,821 Restricted cash included in other current assets Escrow deposits for capacity sales — 5,000 Restricted cash included in other assets Other 250 325 Total cash, cash equivalents and restricted cash $ 41,009 $ 21,146

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Information
Schedule of revenue by channel	The following table provides information on the Company’s revenue by channel (dollars in thousands): For the Year Ended December 31, 2017 2016 2015 Business services $ 169,477 $ 180,663 $ 174,689 Consumer services 135,326 142,939 145,626 Wholesale carrier data 50,741 53,664 56,430 Other 12,875 15,697 16,668 $ 368,419 $ 392,963 $ 393,413

Quarterly Financial Informati42

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information (Unaudited)
Schedule of quarterly operating results	The Company’s quarterly operating results are presented in the following table (dollars in thousands, except per share amounts): Earnings Earnings Operating Net (Loss) (Loss) Operating Income Income per share - per share - Revenues (Loss) (Loss) basic diluted Year Ended December 31, 2017: First Quarter $ 94,510 $ 655 $ (1,952) $ (0.17) $ (0.17) Second Quarter 91,298 2,767 (3,476) (0.30) (0.30) Third Quarter 91,013 (1,088) (92,719) (8.00) (8.00) Fourth Quarter 91,598 (333) (9,094) (0.78) (0.78) Total $ 368,419 $ 2,001 $ (107,241) $ (9.27) $ (9.27) Year Ended December 31, 2016: First Quarter $ 98,794 $ 4,500 $ 154 $ 0.01 $ 0.01 Second Quarter 99,541 6,889 1,445 0.13 0.13 Third Quarter 97,848 3,703 (279) (0.02) (0.02) Fourth Quarter 96,780 3,700 (214) (0.02) (0.02) Total $ 392,963 $ 18,792 $ 1,106 $ 0.10 $ 0.10

Restricted Net Assets and Par43

Restricted Net Assets and Parent Company Condensed Financial Information (Tables)	12 Months Ended
	Dec. 31, 2017
Restricted Net Assets and Parent Company Condensed Financial Information
Schedule of condensed statements of income (loss) and comprehensive income (loss)	Condensed Statements of Income (Loss) and Comprehensive Income (Loss) (Dollars in Thousands) For the For the Year Ended December 31, 2017 2016 2015 Equity in earnings (loss) of Hawaiian Telcom Communications, Inc. $ (107,241) $ 1,106 $ 1,100 Income tax provision — — — Net income (loss) (107,241) 1,106 1,100 Other comprehensive income (loss), net of tax 19,254 (5,830) (5,441) Comprehensive loss $ (87,987) $ (4,724) $ (4,341)
Schedule of condensed balance sheets	Condensed Balance Sheets (Dollars in Thousands) December 31, 2017 2016 Assets Investment in Hawaiian Telcom Communications, Inc. $ 220,209 $ 304,914 Total assets $ 220,209 $ 304,914 Stockholders’ Equity Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,587,963 and 11,513,279 shares issued and outstanding at December 31, 2017 and 2016, respectively $ 116 $ 115 Additional paid-in capital 182,689 179,958 Accumulated other comprehensive loss (15,964) (35,218) Retained earnings 53,368 160,059 Total stockholders’ equity $ 220,209 $ 304,914
Schedule of condensed statements of cash flows	Condensed Statements of Cash Flows (Dollars in Thousands) For the For the Year Ended December 31, 2017 2016 2015 Net income (loss) $ (107,241) $ 1,106 $ 1,100 Undistributed earnings (loss) of Hawaiian Telcom Communications, Inc. 107,241 (1,106) (1,100) Net cash provided by operating activities, net change in cash and ending balance of cash $ — $ — $ —

Description of Business (Propos

Description of Business (Proposed Merger) (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)$ / sharesshares
Business Acquisition [Line Items]
Proposed merger, agreement termination fee | $	$ 11.9
Professional fees | $	$ 2.4
Contingent consideration, cash
Business Acquisition [Line Items]
Proposed merger, company shareholders' consideration in cash (per share) | $ / shares	$ 30.75
Proposed merger, consideration proration of final distribution (as a percentage)	60.00%
Contingent consideration, Cincinnati Bell common stock
Business Acquisition [Line Items]
Proposed merger, company shareholders' consideration in Cincinnati Bell common stock shares | shares	1.6305
Proposed merger, consideration proration of final distribution (as a percentage)	40.00%
Contingent consideration, cash and Cincinnati Bell common stock mixture
Business Acquisition [Line Items]
Proposed merger, company shareholders' consideration in cash (per share) | $ / shares	$ 18.45
Proposed merger, company shareholders' consideration in Cincinnati Bell common stock shares | shares	0.6522

Description of Business (Organi

Description of Business (Organization) (Details)	12 Months Ended
	Dec. 31, 2017$ / item
Description of Business
Number of subsidiaries owned by company	1
Number of subsidiaries owned by subsidiary	2

Summary of Significant Accoun46

Summary of Significant Accounting Policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Summary of Significant Accounting Policies
Advance billing period for basic local service and enhanced calling feature services	1 month
Taxes Collected from Customers
Excise taxes and Hawaii Public Utility Commission fees	$ 8.4	$ 8.4	$ 8.2
Cash and Cash Equivalents
Number of banks in which the entity has its majority cash balances held in demand deposit accounts | item	1
Supplemental Non-Cash Investing and Financing Activities
Accounts payable	$ 27.4	$ 26.1	$ 20.6

Summary of Significant Accoun47

Summary of Significant Accounting Policies - Property and Depreciation & Software & Advertising & EPS & New Accounting Pronouncements (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)itemshares	Dec. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)shares	Jan. 01, 2018USD ($)
Advertising
Advertising expense | $	$ 5,800	$ 6,100	$ 5,900
Denominator used to compute basic and diluted earnings per share
Basic earnings per share - weighted average shares | shares	11,573,435	11,503,296	10,977,341
Effect of dilutive securities:
Employee and director restricted stock units (in shares) | shares		52,701	83,727
Warrants (in shares) | shares			325,235
Diluted earnings per share - weighted average shares | shares	11,573,435	11,555,997	11,386,303
Shares attributable to restricted stock units excluded from computation of weighted average dilutive shares | shares	311,090
Recently Adopted Accounting Pronouncements
Retained earnings | $	$ 53,368	$ 160,059
Adjustments for New Accounting Pronouncement | Retained Earnings
Recently Adopted Accounting Pronouncements
Cumulative effect of new accounting principle, increase to retained earnings | $	$ 600
Minimum | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Recently Adopted Accounting Pronouncements
Retained earnings | $				$ 4,000
Maximum
Recently Adopted Accounting Pronouncements
Period of IRU related payments to be received	25 years
Maximum | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Recently Adopted Accounting Pronouncements
Retained earnings | $				$ 6,000
Buildings | Minimum
Property and Depreciation
Average economic lives	18 years
Buildings | Maximum
Property and Depreciation
Average economic lives	34 years
Cable and wire | Minimum
Property and Depreciation
Average economic lives	11 years
Cable and wire | Maximum
Property and Depreciation
Average economic lives	37 years
Switching and circuit equipment | Minimum
Property and Depreciation
Average economic lives	6 years
Switching and circuit equipment | Maximum
Property and Depreciation
Average economic lives	15 years
Other property | Minimum
Property and Depreciation
Average economic lives	4 years
Other property | Maximum
Property and Depreciation
Average economic lives	17 years
Software
Property and Depreciation
Average economic lives	5 years
Number of stages for segregation of project costs associated with internally developed software | item	3

Receivables, Net (Details)

Receivables, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Receivables, Net
Customers and other	$ 36,118	$ 37,408
Allowance for doubtful accounts	(3,889)	(4,031)	$ (3,931)	$ (3,755)
Receivables, net	$ 32,229	$ 33,377

Receivables, Net - Allowance fo

Receivables, Net - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in allowance for doubtful accounts
Beginning Balance	$ 4,031	$ 3,931	$ 3,755
Additional Charges to Costs and Expenses	3,797	4,031	3,648
Deductions from Allowance	(3,939)	(3,931)	(3,472)
Ending Balance	$ 3,889	$ 4,031	$ 3,931

Property, Plant and Equipment (

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment
Property, plant and equipment cost	$ 1,131,271	$ 1,036,137
Less accumulated depreciation and amortization	(522,973)	(440,140)
Total property, plant and equipment, net	608,298	595,997
Depreciation expense	86,700	87,800	$ 85,400
Land
Property, plant and equipment
Property, plant and equipment cost	67,278	67,278
Buildings
Property, plant and equipment
Property, plant and equipment cost	120,999	115,775
Central office equipment
Property, plant and equipment
Property, plant and equipment cost	222,248	208,004
Outside communications plant
Property, plant and equipment
Property, plant and equipment cost	479,655	412,244
Other equipment, vehicles and furniture
Property, plant and equipment
Property, plant and equipment cost	104,846	87,849
Construction in progress
Property, plant and equipment
Property, plant and equipment cost	34,759	55,606
Software
Property, plant and equipment
Property, plant and equipment cost	90,652	78,547
Other property
Property, plant and equipment
Property, plant and equipment cost	$ 10,834	$ 10,834

Goodwill and Other Intangible51

Goodwill and Other Intangible Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)segmentitem	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)
Subject to amortization
Gross Carrying Value	$ 22,029	$ 22,029
Accumulated Amortization	18,303	16,601
Net Carrying Value	3,726	5,428
Not subject to amortization
Carrying Value	27,300	27,300
Total intangible assets
Gross Carrying Value	49,329	49,329
Net Carrying Value	31,026	32,728
Amortization of Intangible Assets	1,700	2,100	$ 2,500
Goodwill	$ 12,104	$ 12,104
Number of reportable segments | segment	1	2
Number of reporting units | item	1
Estimated amortization expense
2,018	$ 1,307
2,019	930
2,020	574
2,021	270
2,022	223
Thereafter	422
Net Carrying Value	3,726	$ 5,428
Brand name
Not subject to amortization
Carrying Value	27,300	27,300
Tele-communications
Total intangible assets
Goodwill		1,600
Data Center
Total intangible assets
Goodwill		10,500
Customer relationships
Subject to amortization
Gross Carrying Value	21,709	21,709
Accumulated Amortization	17,983	16,299
Net Carrying Value	3,726	5,410
Estimated amortization expense
Net Carrying Value	3,726	5,410
Trade name and other
Subject to amortization
Gross Carrying Value	320	320
Accumulated Amortization	$ 320	302
Net Carrying Value		18
Estimated amortization expense
Net Carrying Value		$ 18

Accrued Expenses and Other Cu52

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued expenses
Salaries and benefits	$ 7,875	$ 11,662
Interest	2,890	2,583
Other taxes	971	1,048
Accrued expenses	11,736	15,293
Other current liabilities
Other postretirement benefits, current	3,226	3,332
Installment financing contracts, current	2,978	2,157
Other	570	838
Other current liabilities	6,774	6,327
Other liabilities, noncurrent
Deferred revenue, noncurrent	28,036	7,453
Installment financing contracts, noncurrent	8,982	8,692
Other	1,909	2,094
Other liabilities, noncurrent	$ 38,927	$ 18,239

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Long-term debt
Long-term debt		$ 314,875	$ 290,138
Original issue discount		(5,559)	(5,439)
Total		309,316	284,699
Current		10,250	3,000
Noncurrent		299,066	281,699
Covenant, maximum level of annual capital expenditures		105,000
Cost incurred to the company		6,300
Loss on early extinguishment of debt		4,826
Capitalized Interest
Interest capitalized		1,900	1,600	$ 1,100
Maturities
2,018		10,250
2,019		13,125
2,020		16,000
2,021		16,000
2,022		81,250
Thereafter		178,250
Total		$ 314,875	290,138
Minimum
Long-term debt
Covenant, debt service coverage ratio		2.75%
Maximum
Long-term debt
Covenant, debt service coverage ratio		3.25%
Revolving credit facility
Long-term debt
Amounts drawn		$ 10,000	0	$ 0
Line of credit
Long-term debt
Amounts drawn		0
Term loan with maturity in May 2022
Long-term debt
Long-term debt	$ 90,000	$ 87,750
Quarterly principal payments	1,100
Interest Rate (as a percent)		5.13%
Maturities
Total	$ 90,000	$ 87,750
Term loan with maturity in May 2022 | Alternate Base Rate
Long-term debt
Variable rate basis	Alternate Base Rate
Margin (as a percent)	2.75%
Term loan with maturity in May 2022 | Eurocurrency rate
Long-term debt
Variable rate basis	Eurocurrency rate plus
Margin (as a percent)	3.75%
Term loan with maturity in May 2022 | Line of credit
Long-term debt
Covenant, interest rate margin increase (decrease), hypothetical impact of change in debt rating or leverage ratio	0.25%
Available balance under the facility	$ 30,000
Term loan with maturity in May 2022 | Line of credit | Alternate Base Rate
Long-term debt
Margin (as a percent)	2.75%
Term loan with maturity in May 2022 | Line of credit | Eurocurrency rate
Long-term debt
Margin (as a percent)	3.75%
Term loan with maturity in May 2023
Long-term debt
Long-term debt	$ 230,000	$ 227,125
Interest Rate (as a percent)		5.38%
Maturities
Total	$ 230,000	$ 227,125
Term loan with maturity in May 2023 | Alternate Base Rate
Long-term debt
Variable rate basis	Alternate Base Rate
Margin (as a percent)	3.00%
Term loan with maturity in May 2023 | Eurocurrency rate
Long-term debt
Variable rate basis	Eurocurrency rate
Margin (as a percent)	4.00%
Term loan with maturity in June 2019
Long-term debt
Arrangement fee and legal costs			300
Deferred finance costs			$ 400
First eight quarters | Term loan with maturity in May 2023
Long-term debt
Quarterly principal payments	$ 1,400
After first eight quarters | Term loan with maturity in May 2023
Long-term debt
Quarterly principal payments	$ 2,900

Employee Benefit Plans - Projec

Employee Benefit Plans - Projected Benefit Obligation (Details) - USD ($) $ in Thousands	3 Months Ended						12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in projected benefit obligation:
Settlement loss	$ 600	$ 1,100	$ 300	$ 2,000	$ 800	$ 500
Change in plan assets:
Fair value of plan assets at beginning of period				167,843			$ 167,843
Fair value of plan assets at end of period	166,587				167,843		166,587	$ 167,843
Amounts recognized on balance sheet:
Other current liabilities	(3,226)				(3,332)		(3,226)	(3,332)
Employee benefit obligation, noncurrent	(79,953)				(105,930)		(79,953)	(105,930)
Pension
Change in projected benefit obligation:
Obligation at beginning of period				203,316			203,316	203,455
Interest cost							6,705	7,347
Settlement loss							3,995	1,277	$ 8,088
Actuarial (gain) loss							11,574	3,686
Benefits paid							(26,962)	(11,172)
Projected benefit obligation at end of period	194,633				203,316		194,633	203,316	203,455
Change in plan assets:
Fair value of plan assets at beginning of period				167,843			167,843	156,678
Return on plan assets							22,525	13,032
Employer contributions							3,181	9,305
Benefits paid							(26,962)	(11,172)
Fair value of plan assets at end of period	166,587				167,843		166,587	167,843	156,678
Funded status:
Plan assets less than projected benefit obligation	(28,046)				(35,473)		(28,046)	(35,473)
Amounts recognized on balance sheet:
Employee benefit obligation, noncurrent	(28,046)				(35,473)		(28,046)	(35,473)
Net amount recognized	(28,046)				(35,473)		(28,046)	(35,473)
Actuarial loss recognized in accumulated other comprehensive income (loss)	(31,886)				$ (36,919)		(31,886)	(36,919)
Actuarial assumptions:
Benefits obligation settlement							23,000	$ 7,100	55,900
Other comprehensive gain (loss) due to the results of fair value of plan assets							19,700
Estimated future amount of loss to be amortized from accumulated other comprehensive income (loss)	$ 400						$ 400
Pension | Minimum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.50%				3.81%		3.50%	3.81%
Pension | Maximum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.50%				3.85%		3.50%	3.85%
Other Postretirement Benefits
Change in projected benefit obligation:
Obligation at beginning of period				$ 73,789			$ 73,789	$ 60,749
Service cost							898	1,104	1,088
Interest cost							2,193	2,637
Actuarial (gain) loss							(1,641)	11,036
Plan change							(18,262)
Benefits paid							(1,844)	(1,737)
Projected benefit obligation at end of period	$ 55,133				$ 73,789		55,133	73,789	$ 60,749
Change in plan assets:
Employer contributions							1,844	1,737
Benefits paid							(1,844)	(1,737)
Funded status:
Plan assets less than projected benefit obligation	(55,133)				(73,789)		(55,133)	(73,789)
Amounts recognized on balance sheet:
Other current liabilities	(3,226)				(3,332)		(3,226)	(3,332)
Employee benefit obligation, noncurrent	(51,907)				(70,457)		(51,907)	(70,457)
Net amount recognized	(55,133)				(73,789)		(55,133)	(73,789)
Actuarial loss recognized in accumulated other comprehensive income (loss)	$ (816)				$ (20,040)		$ (816)	$ (20,040)
Actuarial assumptions:
Assumed health care cost trend rate, current (as a percent)	7.25%				7.50%		7.25%	7.50%	6.75%
Assumed health care cost trend rate, current (as a percent)							7.00%	7.25%
Assumed health care cost trend rate, ultimate (as a percent)	5.00%				5.00%		5.00%	5.00%	5.00%
Assumed health care cost trend rate, ultimate (as a percent)							5.00%	5.00%
Estimated future amount of loss to be amortized from accumulated other comprehensive income (loss)	$ 900						$ 900
Other Postretirement Benefits | Minimum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.62%				4.03%		3.62%	4.03%
Other Postretirement Benefits | Maximum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.63%				4.25%		3.63%	4.25%

Employee Benefit Plans - Pensio

Employee Benefit Plans - Pension Benefits and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended						12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension and Other Postretirement Benefits
Settlement loss	$ 600	$ 1,100	$ 300	$ 2,000	$ 800	$ 500
Pension
Pension and Other Postretirement Benefits
Interest cost							$ 6,705	$ 7,347	$ 7,994
Expected asset return							(10,376)	(10,172)	(12,565)
Amortization of (gain) loss							464	574	186
Net periodic benefit income							(3,207)	(2,251)	(4,385)
Settlement loss							3,995	1,277	8,088
Total benefit (income) expense							$ 788	$ (974)	$ 3,703
Actuarial assumptions:
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets							7.00%	7.00%	7.25%
Expected return on plan assets (as a percent)							7.00%	7.00%	7.25%
Pension | Minimum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.50%				3.81%		3.50%	3.81%
Discount rate (as a percent)							3.56%	3.28%	3.54%
Pension | Maximum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.50%				3.85%		3.50%	3.85%
Discount rate (as a percent)							3.85%	4.10%	4.09%
Other Postretirement Benefits
Pension and Other Postretirement Benefits
Service cost							$ 898	$ 1,104	$ 1,088
Interest cost							2,193	2,637	2,355
Amortization of (gain) loss							(678)	573	588
Total benefit (income) expense							$ 2,413	$ 4,314	$ 4,031
Actuarial assumptions:
Assumed health care cost trend rate, current (as a percent)	7.25%				7.50%		7.25%	7.50%	6.75%
Assumed health care cost trend rate, ultimate (as a percent)	5.00%				5.00%		5.00%	5.00%	5.00%
Other Postretirement Benefits | Minimum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.62%				4.03%		3.62%	4.03%
Discount rate (as a percent)							4.03%	4.32%	3.97%
Other Postretirement Benefits | Maximum
Actuarial assumptions:
Discount rate used to measure the plan obligations (as percent)	3.63%				4.25%		3.63%	4.25%
Discount rate (as a percent)							4.25%	4.56%	4.15%

Employee Benefit Plans - Plan A

Employee Benefit Plans - Plan Assets and Projected Benefit Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension
Fair value of plan assets	$ 166,587	$ 167,843
Actuarial assumptions:
Expected rate of return on plan assets for 2017 net periodic benefit cost (as a percent)	7.00%
Equity securities
Pension
Target allocations for plan assets (as a percent)	65.00%
Common Stock
Pension
Fair value of plan assets	$ 9,660	10,201
Equity funds - large cap index
Pension
Fair value of plan assets	$ 92,731	93,576
Fixed income securities
Pension
Target allocations for plan assets (as a percent)	35.00%
Fixed income funds - diversified bond
Pension
Fair value of plan assets	$ 63,768	63,613
Short term investment funds
Pension
Fair value of plan assets	428	453
Quoted Prices in Active Markets for Identical Assets (Level 1)
Pension
Fair value of plan assets	9,660	10,201
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stock
Pension
Fair value of plan assets	9,660	10,201
Significant other observable inputs (Level 2)
Pension
Fair value of plan assets	156,927	157,642
Significant other observable inputs (Level 2) | Equity funds - large cap index
Pension
Fair value of plan assets	92,731	93,576
Significant other observable inputs (Level 2) | Fixed income funds - diversified bond
Pension
Fair value of plan assets	63,768	63,613
Significant other observable inputs (Level 2) | Short term investment funds
Pension
Fair value of plan assets	428	453
Pension
Pension
Fair value of plan assets	166,587	$ 167,843	$ 156,678
Expected company contribution	5,400
Projected benefit payments
2,018	43,041
2,019	12,912
2,020	13,442
2,021	11,871
2,022	13,458
2023 through 2027	54,687
Projected benefit payments	149,411
Other Postretirement Benefits
Pension
Expected company contribution	3,300
Projected benefit payments
2,018	3,284
2,019	3,435
2,020	3,541
2,021	3,556
2,022	3,504
2023 through 2027	16,628
Projected benefit payments	$ 33,948

Employee Benefit Plans - Employ

Employee Benefit Plans - Employee Savings Plans (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
401(K) Plan
Number of 401(k) employee savings plans | item	2
Company contributions | $	$ 4.9	$ 5.1	$ 5
Union employees | Maximum
401(K) Plan
Company matching employee contributions (as a percent)	10.00%
Non-union employees
401(K) Plan
Company matching employee contributions (as a percent)	6.00%

Income Taxes - Components of in

Income Taxes - Components of income tax provision (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current
Federal
State and local			(626)	(741)	(601)
Current			(626)	(741)	(601)
Deferred
Federal			77,533	1,160	1,726
State and local			11,095	172	232
Deferred			$ 88,628	1,332	1,958
Statutory federal income tax rate (as a percent)	21.00%		34.00%
Increase (decrease) resulting from:
Income tax (benefit) at federal rate			$ (6,541)	577	835
State income taxes, net of federal income tax			(813)	101	104
Permanent difference for compensation limitation					637
Expense not deductible for tax				292	98
Tax credit included in taxable income			238	283	252
Other permanent differences			71	20	110
Capital goods excise tax credit			(626)	(741)	(601)
Change in federal income tax rate			28,018
Other, net			132	74	54
Change in valuation allowance		$ 89,400	67,523	(15)	(132)
Total income tax provision (benefit)			$ 88,002	$ 591	$ 1,357

Income Taxes - Deferred Income

Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred tax liabilities:
Property and equipment	$ 33,215	$ 46,965
Other basis differences	329	533
Deferred tax liabilities	33,544	47,498
Deferred tax assets:
Net operating loss and credit carryforwards	61,017	66,580
Intangible assets	13,877	30,913
Expenses deferred for tax	2,933	5,347
Employee benefits	15,851	33,434
Other basis differences	2,560	3,730
Gross deferred tax assets	96,238	140,004
Valuation allowance	(63,604)	(335)	$ (350)	$ (482)
Net deferred tax assets	32,634	139,669
Deferred tax asset, net		$ 92,171
Deferred tax (liability), net	$ (910)
Cumulative loss, number of years considered in DTA assessment	3 years

Income Taxes - Valuation Allowa

Income Taxes - Valuation Allowance Activity (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in valuation allowance
Beginning Balance		$ 335	$ 350	$ 482
Charge (Credit) to Income Tax Expense or Equity		63,269	(15)	(132)
Ending Balance		$ 63,604	335	350
Corporate tax rate	21.00%	34.00%
Impact to net deferred income tax asset		$ 28,018
Unrecognized tax benefits		0	0	0
Unrecognized tax benefits, income tax penalties and interest expense		0	$ 0	$ 0
Federal
Changes in valuation allowance
Net operating losses available for carry forward		222,600
State
Changes in valuation allowance
Net operating losses available for carry forward		$ 227,000

Stockholder's Equity - Warrants

Stockholder's Equity - Warrants and Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2010
Stockholders' Equity
Warrants issued (in shares)			1,481,055
Exercise Price (in dollars per share)			$ 14
Shares of common stock issued on exercise of warrants	228,316
Warrants exercised	490,759
Warrants exercised value	$ 6.9
Number of shares issuable under the plan		1,400,000
Shares remaining to be issued		468,826

Stockholder's Equity - Restrict

Stockholder's Equity - Restricted Stock Units (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restricted Stock Units
Shares
Nonvested at the beginning of the period (in shares)	226,690	174,518	245,752
Granted (in shares)	164,190	127,360	140,909
Vested (in shares)	(78,623)	(62,651)	(110,623)
Forfeited (in shares)	(1,167)	(12,537)	(101,520)
Nonvested at the end of the period (in shares)	311,090	226,690	174,518
Weighted-Average Grant-Date Fair Value per Share
Nonvested at the beginning of the period (in dollars per share)	$ 25	$ 26	$ 27
Granted (in dollars per share)	24	25	26
Vested (in dollars per share)	25	25	28
Forfeited (in dollars per share)	21	25	26
Nonvested at the end of the period (in dollars per share)	$ 25	$ 25	$ 26
Performance and market conditions
Weighted-Average Grant-Date Fair Value per Share
Vesting period	4 years
Service conditions | Director
Weighted-Average Grant-Date Fair Value per Share
Vesting period	1 year

Stockholder's Equity - Share-Ba

Stockholder's Equity - Share-Based Compensation (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholder's Equity
Compensation expense		$ 2,800	$ 2,300	$ 1,600
Expected volatility rate (as a percent)		31.50%
Risk free interest rate (as a percent)		1.37%
Dividend rate (as a percent)		0.00%
Taxes paid related to net share settlement on equity awards		$ 495	364	948
Cash received under all share-based arrangements		0
Payments for employees' tax obligations		495	364	948
Restricted Stock Units
Stockholder's Equity
Unrecognized share-based compensation expense		$ 4,700
Expected weighted average recognition period		2 years
Fair value of restricted stock units vested		$ 1,300	$ 1,000	$ 2,600
Shares withheld to cover withholding tax of unit holders		21,106	15,772	36,592
Taxes paid related to net share settlement on equity awards		$ 500	$ 400	$ 900
Payments for employees' tax obligations		500	400	$ 900
Performance Shares
Stockholder's Equity
Compensation expense		0	$ 600
Taxes paid related to net share settlement on equity awards		300
Fair value of the shares granted	$ 700
Payments for employees' tax obligations		$ 300
Issued (in shares)		17,174

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Leases
Total rent expense	$ 4,200	$ 4,600	$ 4,500
Aggregate minimum rental commitments under non-cancelable operating leases
2,018	2,097
2,019	1,910
2,020	1,883
2,021	1,266
2,022	433
Thereafter	5,481
Total	$ 13,070

Accumulated Other Comprehensi65

Accumulated Other Comprehensive Income (Loss) - Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	$ (35,218)	$ (29,388)	$ (23,947)
Other comprehensive income (loss), net of tax	19,254	(5,830)	(5,441)
Balance at the end of the period	(15,964)	(35,218)	(29,388)
Unrealized Gain (Loss) on Investments
Components of accumulated other comprehensive income (loss)
Balance at the beginning of the period			(64)
Other comprehensive income (loss), net of tax			64
Retirement plans
Components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	(35,218)	(29,388)	(23,883)
Other comprehensive income (loss), net of tax	19,254	(5,830)	(5,505)
Balance at the end of the period	$ (15,964)	$ (35,218)	$ (29,388)

Accumulated Other Comprehensi66

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax provision on comprehensive income	$ 5,003	$ (3,607)	$ (3,358)
Reclassifications out of other comprehensive income (loss) | Retirement plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of gain/loss and settlement loss	3,781	2,424	8,862
Income tax provision on comprehensive income	1,437	921	3,368
Total	$ 2,344	$ 1,503	$ 5,494

Commitments and Contingencies -

Commitments and Contingencies - Long-Term Fixed Supplier Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Years ended, December 31:
2,018	$ 9,936
2,019	3,312
Total	13,248
Annual fixed fees incurred	$ 18,400	$ 23,000	$ 12,800

Commitments and Contingencies68

Commitments and Contingencies - Trans-Pacific Submarine Cable and CAF (Details) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2015USD ($)	Dec. 31, 2017USD ($)location	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Aug. 31, 2014USD ($)
Jointly Owned Utility Plant Interests [Line Items]
CAF annual funding	$ 4.4
Period of support service		6 years
Number of eligible locations to offer broadband | location		11,000
Number of locations for interim deployment obligation | location		4,400
Number of locations deployed | location		5,452
Revenue recognized from CAF first year funds		$ 4.4	$ 4.4	$ 3.3
Jointly owned utility plant
Jointly Owned Utility Plant Interests [Line Items]
Cost of construction					$ 235
Company investment in construction costs of plant					$ 25
Paid to the cable contractor for the cable build		$ 25.1
Period of up-front payment received		25 years
Proceeds from sale of capacity		$ 30.2
Escrow deposit		$ 5
Minimum
Jointly Owned Utility Plant Interests [Line Items]
Downstream broadband service data transfer rate (Mbps)		10
Upstream broadband service data transfer rate (Mbps)		1

Commitments and Contingencies69

Commitments and Contingencies - Installment Contracts (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Long-term Purchase Commitment [Line Items]
Current reflected in other current liabilities	$ 2,978	$ 2,157
Installment Contracts
Long-term Purchase Commitment [Line Items]
2,018	3,544
2,019	1,988
2,020	1,280
2,021	1,243
2,022	1,020
Thereafter	5,746
Total	14,821
Less amounts representing interest	(2,861)
Present value	11,960
Current reflected in other current liabilities	2,978
Noncurrent reflected in other liabilities	$ 8,982

Commitments and Contingencies70

Commitments and Contingencies - Joint-Owned Utility Poles (Details) - Jointly owned utility plant	12 Months Ended
	Dec. 31, 2017countyitem
Loss Contingencies [Line Items]
Number of counties | county	3
Number of joint pole owners | item	1
Maximum
Loss Contingencies [Line Items]
Number of counties | county	4
Dispute resolution process
Loss Contingencies [Line Items]
Number of utilities | item	1

Fair Value of Financial Instr71

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Carrying Value
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	$ 309,316	$ 284,699
Fair Value
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	315,339	293,765
Recurring
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	315,339	293,765
Significant other observable inputs (Level 2) | Recurring
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	$ 315,339	$ 293,765

Cash Flow Information (Details)

Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash paid during the year:
Interest paid, net of amounts capitalized	$ 14,666	$ 13,706	$ 16,178
Non-cash investing activities - capital assets acquired under installment contracts	2,497	1,309	90
Non-cash financing activities - common shares issued for performance based compensation, net of withholding taxes paid	400
Cash and cash equivalents	40,759	15,821
Restricted cash included in other current assets
Escrow deposits for capacity sales		5,000
Restricted cash included in other assets
Other	250	325
Total cash, cash equivalents and restricted cash	$ 41,009	$ 21,146	$ 34,137	$ 40,435

Segment Information (Revenue by

Segment Information (Revenue by Channel) (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)
Information on revenue, net of intersegment eliminations, by product group
Number of reportable segments | segment									1	2
Revenue	$ 91,598	$ 91,013	$ 91,298	$ 94,510	$ 96,780	$ 97,848	$ 99,541	$ 98,794	$ 368,419	$ 392,963	$ 393,413
Business services
Information on revenue, net of intersegment eliminations, by product group
Revenue									169,477	180,663	174,689
Consumer services
Information on revenue, net of intersegment eliminations, by product group
Revenue									135,326	142,939	145,626
Wholesale carrier data
Information on revenue, net of intersegment eliminations, by product group
Revenue									50,741	53,664	56,430
Other services
Information on revenue, net of intersegment eliminations, by product group
Revenue									$ 12,875	$ 15,697	$ 16,668

Quarterly Financial Informati74

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information (Unaudited)
Operating revenues	$ 91,598	$ 91,013	$ 91,298	$ 94,510	$ 96,780	$ 97,848	$ 99,541	$ 98,794	$ 368,419	$ 392,963	$ 393,413
Operating Income (Loss)	(333)	(1,088)	2,767	655	3,700	3,703	6,889	4,500	2,001	18,792	19,262
Net Income (Loss)	$ (9,094)	$ (92,719)	$ (3,476)	$ (1,952)	$ (214)	$ (279)	$ 1,445	$ 154	$ (107,241)	$ 1,106	$ 1,100
Earnings (Loss) per share - basic (in dollars per share)	$ (0.780)	$ (8)	$ (0.300)	$ (0.170)	$ (0.020)	$ (0.020)	$ 0.130	$ 0.010	$ (9.270)	$ 0.100	$ 0.10
Earnings (Loss) per share - diluted (in dollars per share)	$ (0.780)	$ (8)	$ (0.300)	$ (0.170)	$ (0.020)	$ (0.020)	$ 0.130	$ 0.010	$ (9.270)	$ 0.100	$ 0.10
Loss on early extinguishment of debt									$ (4,826)
Pension settlement losses	$ 600	$ 1,100	$ 300	$ 2,000	$ 800	$ 500
Change in valuation allowance		$ 89,400							$ 67,523	$ (15)	$ (132)

Restricted Net Assets and Par75

Restricted Net Assets and Parent Company Condensed Financial Information - Income (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Statements of Income (Loss) and Comprehensive Income (Loss)
Dividends paid by the subsidiaries to the parent company									$ 0	$ 0	$ 0
Equity in earnings (loss) of Hawaiian Telcom Communications, Inc.									(19,239)	1,697	2,457
Income tax provision									88,002	591	1,357
Net income (loss)	$ (9,094)	$ (92,719)	$ (3,476)	$ (1,952)	$ (214)	$ (279)	$ 1,445	$ 154	(107,241)	1,106	1,100
Other comprehensive income (loss), net of tax									19,254	(5,830)	(5,441)
Comprehensive loss									(87,987)	(4,724)	(4,341)
Parent Company
Condensed Statements of Income (Loss) and Comprehensive Income (Loss)
Equity in earnings (loss) of Hawaiian Telcom Communications, Inc.									(107,241)	1,106	1,100
Net income (loss)									(107,241)	1,106	1,100
Other comprehensive income (loss), net of tax									19,254	(5,830)	(5,441)
Comprehensive loss									$ (87,987)	$ (4,724)	$ (4,341)

Restricted Net Assets and Par76

Restricted Net Assets and Parent Company Condensed Financial Information - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Investment in Hawaiian Telcom Communication, Inc.	$ 739,506	$ 803,921
Total assets	739,506	803,921
Stockholders' Equity
Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,587,963 and 11,513,279 shares issued and outstanding at December 31, 2017 and 2016, respectively	116	115
Additional paid-in capital	182,689	179,958
Accumulated other comprehensive loss	(15,964)	(35,218)	$ (29,388)	$ (23,947)
Retained earnings	53,368	160,059
Total stockholders' equity	$ 220,209	$ 304,914	$ 307,699	$ 304,534
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	11,587,963	11,513,279
Common stock, shares outstanding	11,587,963	11,513,279
Parent Company
Assets
Investment in Hawaiian Telcom Communication, Inc.	$ 220,209	$ 304,914
Total assets	220,209	304,914
Stockholders' Equity
Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,587,963 and 11,513,279 shares issued and outstanding at December 31, 2017 and 2016, respectively	116	115
Additional paid-in capital	182,689	179,958
Accumulated other comprehensive loss	(15,964)	(35,218)
Retained earnings	53,368	160,059
Total stockholders' equity	$ 220,209	$ 304,914
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	11,587,963	11,513,279
Common stock, shares outstanding	11,587,963	11,513,279

Restricted Net Assets and Par77

Restricted Net Assets and Parent Company Condensed Financial Information - Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Statements of Cash Flows
Net Income (Loss)	$ (9,094)	$ (92,719)	$ (3,476)	$ (1,952)	$ (214)	$ (279)	$ 1,445	$ 154	$ (107,241)	$ 1,106	$ 1,100
Parent Company
Condensed Statements of Cash Flows
Net Income (Loss)									(107,241)	1,106	1,100
Undistributed earnings (loss) of Hawaiian Telcom Communications, Inc.									$ 107,241	$ (1,106)	$ (1,100)