Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'Lumos Networks Corp. | ' | ' |
Entity Central Index Key | '0001520744 | ' | ' |
Trading Symbol | 'LMOS | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 22,187,783 | ' |
Entity Public Float | ' | ' | $269,794,771 |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $14,114 | $2 |
Marketable securities | 38,480 | ' |
Restricted cash | 4,324 | 5,303 |
Accounts receivable, net of allowance of $1,485 ($1,822 in 2012) | 22,917 | 22,676 |
Other receivables | 1,588 | 2,400 |
Income tax receivable | 1,116 | 954 |
Prepaid expenses and other | 3,960 | 5,136 |
Deferred income taxes | 7,289 | 3,357 |
Total Current Assets | 93,788 | 39,828 |
Securities and Investments | 699 | 462 |
Property, Plant and Equipment | ' | ' |
Land and buildings | 19,561 | 19,489 |
Network plant and equipment | 474,010 | 419,176 |
Furniture, fixtures and other equipment | 34,549 | 22,070 |
Total in service | 528,120 | 460,735 |
Under construction | 25,889 | 19,764 |
Property, plant and equipment, gross | 554,009 | 480,499 |
Less accumulated depreciation and amortization | 175,286 | 143,910 |
Total Property, Plant and Equipment, net | 378,723 | 336,589 |
Other Assets | ' | ' |
Goodwill | 100,297 | 100,297 |
Other intangibles, less accumulated amortization of $81,600 ($72,876 in 2012) | 25,071 | 34,895 |
Deferred charges and other assets | 7,722 | 4,448 |
Total Other Assets | 133,090 | 139,640 |
Total Assets | 606,300 | 516,519 |
Current Liabilities | ' | ' |
Current portion of long-term debt | 6,688 | 7,900 |
Accounts payable | 13,076 | 17,453 |
Dividends payable | 3,091 | 3,013 |
Advance billings and customer deposits | 13,502 | 13,527 |
Accrued compensation | 2,185 | 1,742 |
Accrued operating taxes | 4,375 | 3,838 |
Other accrued liabilities | 3,992 | 6,284 |
Total Current Liabilities | 46,909 | 53,757 |
Long-term Liabilities | ' | ' |
Long-term debt | 373,290 | 304,325 |
Retirement benefits | 16,848 | 30,413 |
Deferred income taxes | 79,087 | 59,313 |
Other long-term liabilities | 2,832 | 3,500 |
Income tax payable | 328 | 609 |
Total Long-term Liabilities | 472,385 | 398,160 |
Commitments and Contingencies | ' | ' |
Equity | ' | ' |
Preferred stock, par value $0.01 per share, authorized 100 shares, none issued | ' | ' |
Common stock, par value $0.01 per share, authorized 55,000 shares; 22,158 shares issued and 22,109 shares outstanding (21,610 shares issued and 21,498 shares outstanding in 2012) | 222 | 216 |
Additional paid in capital | 138,166 | 129,570 |
Treasury stock, 49 shares at cost (112 shares in 2012) | -404 | ' |
Accumulated deficit | -47,578 | -53,060 |
Accumulated other comprehensive loss, net of tax | -4,073 | -12,676 |
Total Lumos Networks Corp. Stockholders' Equity | 86,333 | 64,050 |
Noncontrolling Interests | 673 | 552 |
Total Equity | 87,006 | 64,602 |
Total Liabilities and Equity | $606,300 | $516,519 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Accounts receivable, allowance | $1,485 | $1,822 |
Other intangibles, accumulated amortization | $81,600 | $72,876 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 22,158,000 | 21,610,000 |
Common stock, shares outstanding | 22,109,000 | 21,498,000 |
Treasury stock, shares | 49,000 | 112,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Consolidated Statements Of Operations [Abstract] | ' | ' | ' | |||
Operating revenues | $207,475 | $206,871 | $207,414 | |||
Operating Expenses | ' | ' | ' | |||
Network access costs | 42,417 | 46,845 | 47,715 | |||
Selling, general and administrative | 76,749 | 79,176 | 66,571 | |||
Depreciation and amortization | 42,320 | 38,884 | 43,090 | |||
Asset impairment charges | ' | ' | 86,295 | |||
Accretion of asset retirement obligations | 104 | 124 | 116 | |||
Restructuring charges | 50 | [1] | 2,981 | [1] | ' | |
Gain on settlements, net | ' | -2,335 | [2] | ' | ||
Total Operating Expenses, net | 161,640 | 165,675 | 243,787 | |||
Operating Income (Loss) | 45,835 | 41,196 | -36,373 | |||
Other Income (Expenses) | ' | ' | ' | |||
Interest expense | -14,191 | -11,921 | -11,993 | |||
Loss on interest rate swap derivatives | -144 | -1,898 | ' | |||
Other (expenses) income, net | -1,587 | 81 | 105 | |||
Total Other Expenses, net | -15,922 | -13,738 | -11,888 | |||
Income (Loss) Before Income Taxes | 29,913 | 27,458 | -48,261 | |||
Income Tax Expense (Benefit) | 12,019 | 11,010 | -4,383 | |||
Net Income (Loss) | 17,894 | 16,448 | -43,878 | |||
Net Income Attributable to Noncontrolling Interests | -121 | -108 | -52 | |||
Net Income (Loss) Attributable to Lumos Networks Corp. | $17,773 | $16,340 | ($43,930) | [3] | ||
Basic and Diluted Earnings (Loss) per Common Share Attributable to Lumos Networks Corp. Stockholders: | ' | ' | ' | |||
Earnings (loss) per share-basic | $0.81 | $0.78 | ($2.11) | [3] | ||
Earnings (loss) per share-diluted | $0.80 | $0.76 | ($2.11) | [3] | ||
Cash Dividends Declared per Share - Common Stock | $0.56 | $0.56 | $0.14 | |||
[1] | In 2012, the Company completed a cost reduction plan involving an employee reduction-in-force, consolidation of certain facilities and freezing benefits under certain postretirement plans. Restructuring charges of $3.0 million were recognized in 2012 in connection with this plan (Note 12). | |||||
[2] | The net pre-tax gain on settlements was recognized in 2012 in connection with the settlement of outstanding matters related to a prior acquisition and the settlement of an outstanding lawsuit (Note 13). | |||||
[3] | Basic and diluted loss per share for the year ended December 31, 2011 is computed on a pro forma basis by dividing net loss by the weighted average number of common shares outstanding during the two month post-Business Separation period beginning November 1, 2011 and ending December 31, 2011, as if such shares had been outstanding for the entire year. |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Net Income (Loss) | $17,894 | $16,448 | ($43,878) |
Other Comprehensive Income (Loss), Net of Tax: | ' | ' | ' |
Net unrecognized gain (loss) from defined benefit plans, net of $4,992, $1,958 and $(1,813) of income taxes for the years ended December 31, 2013, 2012 and 2011, respectively | 7,840 | 3,076 | -2,847 |
Reclassification adjustment for amortization of unrealized loss from defined benefit plans included in net income, net of $481, $693 and $77 of income taxes for the years ended December 31, 2013, 2012, and 2011, respectively (see Note 2) | 756 | 1,088 | 120 |
Unrealized loss on available-for-sale securities, net of $3 of income taxes for the year ended December 31, 2013 | 7 | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | 8,603 | 4,164 | -2,727 |
Total Comprehensive Income (Loss) | 26,497 | 20,612 | -46,605 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | -121 | -108 | -52 |
Comprehensive Income (Loss) Attributable to Lumos Networks Corp. | $26,376 | $20,504 | ($46,657) |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Deferred income tax (asset) liability, Net unrecognized gain (loss) from defined benefit plans | $4,992 | $1,958 | ($1,813) |
Deferred income tax asset, Reclassification adjustment for amortization of unrealized loss from defined benefit plans | 481 | 693 | 77 |
Deferred income tax asset, Unrealized loss on available-for-sale securities | $3 | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income (loss) | $17,894 | $16,448 | ($43,878) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 32,496 | 27,750 | 27,703 |
Amortization | 9,824 | 11,134 | 15,387 |
Accretion of asset retirement obligations | 104 | 124 | 116 |
Asset impairment charges | ' | ' | 86,295 |
Deferred income taxes | 11,503 | 10,514 | -8,110 |
Loss on interest rate swap derivatives | 144 | 1,898 | ' |
Equity-based compensation expense | 6,778 | 3,912 | 2,383 |
Amortization of debt issuance costs | 1,280 | 812 | 132 |
Write off of unamortized debt issuance costs | 890 | ' | ' |
Gain on settlement | ' | -3,035 | ' |
Retirement benefits, net of contributions and distributions | -330 | 665 | -4,059 |
Excess tax benefits from share-based compensation | -1,060 | -428 | ' |
Other | -163 | ' | ' |
Changes in assets and liabilities from operations: | ' | ' | ' |
(Increase) decrease in accounts receivable | -241 | 218 | -2,082 |
Decrease (increase) in other current assets | 832 | -3,503 | 297 |
Changes in income taxes | -501 | 99 | 3,727 |
(Decrease) increase in accounts payable | -3,798 | 1,946 | 425 |
(Decrease) increase in other current liabilities | -1,398 | 3,661 | 4,572 |
Net Cash Provided by Operating Activities | 74,254 | 72,215 | 82,908 |
Cash Flows from Investing Activities: | ' | ' | ' |
Purchases of property, plant and equipment | -68,334 | -59,881 | -61,536 |
Broadband network expansion funded by stimulus grant | -29 | -1,351 | -2,248 |
Proceeds from disposal of managed services business | ' | 750 | ' |
Purchases of marketable securities | -38,560 | ' | ' |
Change in restricted cash | 979 | 2,251 | 508 |
Cash reimbursement received from broadband stimulus grant | 979 | 2,251 | 508 |
Purchase of tradename asset | ' | -333 | ' |
Other | 62 | -26 | ' |
Net Cash Used in Investing Activities | -104,903 | -56,339 | -62,768 |
Cash Flows from Financing Activities: | ' | ' | ' |
Proceeds from issuance of long-term debt | 375,000 | ' | 310,000 |
Payment of debt issuance costs | -4,872 | ' | -4,854 |
Cash paid to NTELOS Inc. associated with the Business Separation | ' | ' | -315,000 |
Principal payments on senior secured term loans | -308,876 | -2,000 | -500 |
Borrowings from revolving credit facility | 15,000 | 9,783 | 30,000 |
Principal payments on revolving credit facility | -18,521 | -21,261 | -15,000 |
Termination payments of interest rate swap derivatives | -858 | ' | ' |
Cash dividends paid on common stock | -12,213 | -11,951 | ' |
Payment to NTELOS Inc., net | ' | ' | -14,357 |
Principal payments under capital lease obligations | -1,456 | -1,542 | -317 |
Proceeds from stock option exercises and employee stock purchase plan | 1,222 | 122 | ' |
Excess tax benefits from share-based compensation | 1,060 | 428 | ' |
Other | -725 | ' | -54 |
Net Cash Provided by (Used in) Financing Activities | 44,761 | -26,421 | -10,082 |
Increase (decrease) in cash and cash equivalents | 14,112 | -10,545 | 10,058 |
Cash and Cash Equivalents: | ' | ' | ' |
Beginning of Year | 2 | 10,547 | 489 |
End of Year | $14,114 | $2 | $10,547 |
Consolidated_Statements_Of_Equ
Consolidated Statements Of Equity (USD $) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Business Equity [Member] | Total Lumos Networks Corp. Stockholders' Equity [Member] | Noncontrolling Interests [Member] | Total | |
In Thousands, except Share data | ||||||||||
Balance at Dec. 31, 2010 | ' | ' | ' | ' | ' | $265,794 | $265,794 | $392 | $266,186 | |
Allocation of beginning of year business equity in connection with the Business Separation | ' | ' | 262,155 | 3,639 | ' | -265,794 | ' | ' | ' | |
Spin-off from NTELOS Holdings Corp. | 212 | ' | -138,107 | ' | -14,113 | ' | -152,008 | ' | -152,008 | |
Spin-off from NTELOS Holdings Corp., shares | 21,223,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) attributable to Lumos Networks Corp. | ' | ' | ' | -43,930 | ' | ' | -43,930 | ' | -43,930 | [1] |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | -2,727 | ' | -2,727 | ' | -2,727 | |
Equity-based compensation expense | ' | ' | 1,694 | ' | ' | ' | 1,694 | ' | 1,694 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions and stock options exercised (net of shares reacquired through restricted stock forfeits) | ' | ' | 685 | ' | ' | ' | 685 | ' | 685 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions and stock options exercised (net of shares reacquired through restricted stock forfeits), shares | 12,000 | 65,000 | ' | ' | ' | ' | ' | ' | ' | |
Cash dividends declared | ' | ' | ' | -2,980 | ' | ' | -2,980 | ' | -2,980 | |
Dividends paid to NTELOS Communications Inc. | ' | ' | ' | -14,145 | ' | ' | -14,145 | ' | -14,145 | |
Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 52 | 52 | |
Balance at Dec. 31, 2011 | 212 | ' | 126,427 | -57,416 | -16,840 | ' | 52,383 | 444 | 52,827 | |
Balance, shares at Dec. 31, 2011 | 21,235,000 | 65,000 | ' | ' | ' | ' | ' | ' | ' | |
Spin-off from NTELOS Holdings Corp. | ' | ' | -1,337 | ' | ' | ' | -1,337 | ' | -1,337 | |
Net income (loss) attributable to Lumos Networks Corp. | ' | ' | ' | 16,340 | ' | ' | 16,340 | ' | 16,340 | |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | 4,164 | ' | 4,164 | ' | 4,164 | |
Equity-based compensation expense | ' | ' | 3,065 | ' | ' | ' | 3,065 | ' | 3,065 | |
Adjustments to excess tax benefits from stock-based compensation | ' | ' | 428 | ' | ' | ' | 428 | ' | 428 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions and stock options exercised (net of shares reacquired through restricted stock forfeits) | 4 | ' | 987 | ' | ' | ' | 991 | ' | 991 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions and stock options exercised (net of shares reacquired through restricted stock forfeits), shares | 375,000 | 47,000 | ' | ' | ' | ' | ' | ' | ' | |
Stock option exercises, shares | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |
Cash dividends declared | ' | ' | ' | -11,984 | ' | ' | -11,984 | ' | -11,984 | |
Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 108 | 108 | |
Balance at Dec. 31, 2012 | 216 | ' | 129,570 | -53,060 | -12,676 | ' | 64,050 | 552 | 64,602 | |
Balance, shares at Dec. 31, 2012 | 21,610,000 | 112,000 | ' | ' | ' | ' | ' | ' | 21,610,000 | |
Spin-off from NTELOS Holdings Corp. | ' | ' | -144 | ' | ' | ' | -144 | ' | -144 | |
Net income (loss) attributable to Lumos Networks Corp. | ' | ' | ' | 17,773 | ' | ' | 17,773 | ' | 17,773 | |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | 8,603 | ' | 8,603 | ' | 8,603 | |
Equity-based compensation expense | ' | ' | 5,847 | ' | ' | ' | 5,847 | ' | 5,847 | |
Adjustments to excess tax benefits from stock-based compensation | ' | ' | 1,060 | ' | ' | ' | 1,060 | ' | 1,060 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions and stock options exercised (net of shares reacquired through restricted stock forfeits) | 5 | -404 | 709 | ' | ' | ' | 310 | ' | 310 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions and stock options exercised (net of shares reacquired through restricted stock forfeits), shares | 451,000 | -63,000 | ' | ' | ' | ' | ' | ' | ' | |
Stock option exercises | 1 | ' | 1,124 | ' | ' | ' | 1,125 | ' | 1,125 | |
Stock option exercises, shares | 97,000 | ' | ' | ' | ' | ' | ' | ' | 97,000 | |
Cash dividends declared | ' | ' | ' | -12,291 | ' | ' | -12,291 | ' | -12,291 | |
Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | 121 | 121 | |
Balance at Dec. 31, 2013 | $222 | ($404) | $138,166 | ($47,578) | ($4,073) | ' | $86,333 | $673 | $87,006 | |
Balance, shares at Dec. 31, 2013 | 22,158,000 | 49,000 | ' | ' | ' | ' | ' | ' | 22,158,000 | |
[1] | Basic and diluted loss per share for the year ended December 31, 2011 is computed on a pro forma basis by dividing net loss by the weighted average number of common shares outstanding during the two month post-Business Separation period beginning November 1, 2011 and ending December 31, 2011, as if such shares had been outstanding for the entire year. |
Consolidated_Statements_Of_Equ1
Consolidated Statements Of Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Statements Of Equity [Abstract] | ' | ' | ' | ' |
Cash dividends declared, per share | $0.14 | $0.56 | $0.56 | $0.14 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization [Abstract] | ' |
Organization | ' |
Note 1. Organization | |
Lumos Networks Corp. (“Lumos Networks” or the “Company”) is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region with a network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Maryland, Ohio and Kentucky. The Company serves carrier, business and residential customers over its fiber network offering data, voice and IP services. The Company’s principal products and services include Multiprotocol Label Switching (“MPLS”) based Ethernet, Metro Ethernet (“Metro E”), Fiber to the Cell (“FTTC”) wireless backhaul and fiber transport services, wavelength transport services, IP services and other voice services. | |
On October 14, 2011, NTELOS Holdings Corp. (“NTELOS”) announced a distribution date of October 31, 2011 for the spin-off of all of the then issued and outstanding shares of common stock of Lumos Networks, which operated NTELOS’s wireline operations (the “Business Separation”). Prior to and in connection with the Business Separation, following the market close on October 31, 2011, NTELOS effectuated a 1-for-2 reverse stock split (the “Reverse Stock Split”) of its shares of Common Stock, $0.01 par value. The spin-off of Lumos Networks was in the form of a tax-free stock distribution to NTELOS stockholders of record as of the close of business on October 24, 2011, the record date (the “Distribution”). On October 31, 2011, NTELOS distributed one share of Lumos Networks common stock for every share of NTELOS’s common stock outstanding, on a post-Reverse Stock Split basis. | |
On November 20, 2013, in a secondary offering of the Company’s common stock, Quadrangle Capital Partners LP. (“Quadrangle”) sold 2,888,939 shares, priced at $20.00 per share. This resulted in Quadrangle’s ownership declining from approximately 26% to approximately 13%. The Company did not receive any proceeds from the offering and the Company’s total shares outstanding did not change as a result of this offering. All direct costs of this offering, which were primarily legal, printing and accounting fees related to the preparation of the registration statement, which totaled $0.8 million, are included in other expenses in the consolidated statement of operations for the year ended December 31, 2013. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||||
Significant Accounting Policies | ' | |||||||||||||
Note 2. Significant Accounting Policies | ||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, and all of Lumos Networks Operating Company’s wholly-owned subsidiaries and those limited liability corporations where Lumos Networks Operating Company or certain of its subsidiaries, as managing member, exercised control. All significant intercompany accounts and transactions have been eliminated. | ||||||||||||||
For the period January 1, 2011 through October 31, 2011, the consolidated financial statements principally represent the financial results reflected by NTELOS constituting the companies comprising the wireline segment. These financial results have been adjusted to reflect certain corporate expenses which were not previously allocated to the segments. These allocations primarily represent corporate support functions, including but not limited to accounting, human resources, information technology and executive management, as well as corporate legal and professional fees, including audit fees, and equity-based compensation expense related to equity-based awards granted to employees in corporate support functions and executive management. These additional expenses for the ten months ended October 31, 2011 were $2.6 million. The Company believes that these costs would not have been materially different had they been calculated on a standalone basis. However, such costs are not indicative of the actual level of expense and exclude certain expenses that would have been incurred by the Company if it had operated as an independent, publicly traded company nor are they comparable to the expenses incurred in 2012 or 2013. | ||||||||||||||
Beginning in 2013, the Company revised the presentation of current deferred tax assets in its consolidated balance sheet and made conforming changes to the presentation of deferred tax assets in the consolidated balance sheet as of December 31, 2012. These changes did not have a material impact on the Company’s consolidated financial condition for any period presented. | ||||||||||||||
Accounting Estimates | ||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the valuation of interest rate swap derivatives, deferred tax assets, marketable securities, asset retirement obligations and equity-based compensation; goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. | ||||||||||||||
Revenue Recognition | ||||||||||||||
The Company recognizes revenue when services are rendered or when products are delivered, installed and functional, as applicable. Certain services of the Company require payment in advance of service performance. In such cases, the Company records a service liability at the time of billing and subsequently recognizes revenue ratably over the service period. The Company bills customers certain transactional taxes on service revenues. These transactional taxes are not included in reported revenues as they are recognized as liabilities at the time customers are billed. | ||||||||||||||
The Company earns revenue by providing services through access to and usage of its networks. Local service revenues are recognized as services are provided. Carrier data revenues are earned by providing switched access and other switched and dedicated services, including wireless roamer management, to other carriers. Revenues for equipment sales are recognized at the point of sale. | ||||||||||||||
The Company periodically makes claims for recovery of access charges on certain minutes of use terminated by the Company on behalf of other carriers. The Company recognizes revenue in the period when it is determined that the amounts can be estimated and collection is reasonably assured. | ||||||||||||||
Cash Equivalents and Marketable Securities | ||||||||||||||
The Company considers its investments in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company determines the appropriate classification of investment securities at the time of purchase and reevaluates this determination at the end of each reporting period. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of December 31, 2013. | ||||||||||||||
The Company previously utilized a swingline credit facility that it had with its primary commercial bank. This swingline facility was terminated in April 2013, concurrent with the closing of the Company’s debt refinancing (see Note 5). The Company had a book overdraft related to this master cash account of $1.8 million as of December 31, 2012, which amount was reclassified to accounts payable on the consolidated balance sheet. The Company classified the respective changes in the book overdraft amount in cash flows from operating activities on the consolidated statements of cash flows for the years ended December 31, 2013 and 2012. | ||||||||||||||
Restricted Cash | ||||||||||||||
During 2010, the Company received a federal broadband stimulus award to bring broadband services and infrastructure to Alleghany County, Virginia. The total project is $16.1 million, of which 50% (approximately $8 million) is being funded by a grant from the federal government. The project is expected to be completed before September 30, 2015. The Company was required to deposit 100% of its portion for the grant (approximately $8 million) into a pledged account in advance of any reimbursements, which can be drawn down ratably following the grant reimbursement approvals which are contingent on adherence to the program requirements. The Company received $1.0 million, $2.3 million and $0.5 million in the years ended December 31, 2013, 2012 and 2011, respectively, for the reimbursable portion of the qualified recoverable expenditures to date. The Company has a $0.6 million receivable for the reimbursable portion of the qualified recoverable expenditures as of December 31, 2013. At December 31, 2013, the Company’s pledged account balance was $4.3 million. This escrow account is a non-interest bearing account with the Company’s primary commercial bank. | ||||||||||||||
Trade Accounts Receivable | ||||||||||||||
The Company sells its services to other communication carriers and to business and residential customers primarily in Virginia and West Virginia and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company has credit and collection policies to maximize collection of trade receivables and requires deposits on certain sales. The Company maintains an allowance for doubtful accounts based on a review of specific customers with large receivable balances and for the remaining customer receivables the Company uses historical results, current and expected trends and changes in credit policies. Management believes the allowance adequately covers all anticipated losses with respect to trade receivables. Actual credit losses could differ from such estimates. The Company includes bad debt expense in selling, general and administrative expense in the consolidated statements of operations. Bad debt expense for the years ended December 31, 2013, 2012 and 2011 was $0.3 million, $0.6 million and $1.0 million, respectively. The Company’s allowance for doubtful accounts was $1.5 million and $1.8 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||
Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) | ||||||||||||||
Property, plant and equipment, finite-lived intangible assets and long-term deferred charges are recorded at cost and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be evaluated pursuant to the subsequent measurement guidance described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35. Impairment is determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. | ||||||||||||||
The Company believes that no impairment indicators exist as of December 31, 2013 that would require it to perform impairment testing for long-lived assets, including property, plant and equipment, long-term deferred charges and finite-lived intangible assets to be held and used. | ||||||||||||||
In 2011, the Company determined that the fair value of certain assets owned by its RLECs, including property, plant and equipment and finite-lived intangible assets, was lower than the carrying value as a result of the revaluation of assets performed in connection with the Business Separation as of October 31, 2011. Accordingly, an impairment charge was recorded for $20.9 million ($12.7 million net of tax). | ||||||||||||||
Depreciation of property, plant and equipment is calculated on a straight-line basis over the estimated useful lives of the assets, which the Company reviews and updates based on historical experiences and future expectations. In 2012, the Company revised the useful lives of certain leasehold improvements as a result of the termination of a building lease and recognized accelerated depreciation costs of $1.4 million as a result of this change in estimate, which is included in depreciation and amortization expense for the year ended December 31, 2012. | ||||||||||||||
Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Amortization of assets held under capital leases, including certain software licenses, is included with depreciation expense. | ||||||||||||||
Intangibles with a finite life are classified as other intangibles on the consolidated balance sheets. At December 31, 2013 and 2012, other intangibles were comprised of the following: | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | Estimated Life | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||
Customer relationships | 3 to 15 yrs | $ | 103,153 | $ | -79,399 | $ | 103,153 | $ | -69,734 | |||||
Trademarks | 0.5 to 15 yrs | 3,518 | -2,201 | 3,518 | -2,042 | |||||||||
Non-compete agreement | 2 yrs | - | - | 1,100 | -1,100 | |||||||||
Total | $ | 106,671 | $ | -81,600 | $ | 107,771 | $ | -72,876 | ||||||
The Company amortizes its finite-lived intangible assets using the straight-line method unless it determines that another systematic method is more appropriate. The amortization for certain customer relationship intangibles is being recognized using an accelerated amortization method based on the pattern of estimated earnings from these assets. | ||||||||||||||
The estimated life of amortizable intangible assets is determined from the unique factors specific to each asset and the Company reviews and updates estimated lives based on current events and future expectations. The Company capitalizes costs incurred to renew or extend the term of a recognized intangible asset and amortizes such costs over the remaining life of the asset. No such costs were incurred during the years ended December 31, 2013 or 2012. Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $9.8 million, $11.1 million and $15.4 million, respectively. | ||||||||||||||
Amortization expense for the next five years is expected to be as follows: | ||||||||||||||
(In thousands) | Customer Relationships | Trademarks | Total | |||||||||||
2014 | $ | 9,028 | $ | 159 | $ | 9,187 | ||||||||
2015 | 4,648 | 159 | 4,807 | |||||||||||
2016 | 2,416 | 159 | 2,575 | |||||||||||
2017 | 2,097 | 159 | 2,256 | |||||||||||
2018 | 1,785 | 159 | 1,944 | |||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill and franchise rights are considered to be indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but are instead tested for impairment annually or more frequently if an event indicates that the asset might be impaired. The Company’s policy is to assess the recoverability of indefinite-lived assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. | ||||||||||||||
The Company first considers whether to take a qualitative approach in determining whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test promulgated by FASB ASC Topic 350. If the Company determines that it is more likely than not that a reporting unit’s fair value is less than its carrying amount or if the Company elects to bypass the qualitative test for a specific period, the two-step process is used to test for goodwill impairment. Step one requires a determination of the fair value of each of the reporting units and, to the extent that the fair value of the reporting unit exceeds its carrying value (including goodwill), the step two calculation of implied fair value of goodwill is not required and no impairment loss is recognized. In testing for goodwill impairment, the Company utilizes a combination of a discounted cash flow model and a market approach that includes the use of comparable multiples of publicly traded companies whose services are comparable to ours. | ||||||||||||||
The Company restructured its operating segments in 2013 and, as a result, reassigned goodwill to the new reporting units using a relative fair value allocation approach. As of December 31, 2013, goodwill was attributed to the Company’s segments as follows: | ||||||||||||||
(In thousands) | December 31, 2013 | |||||||||||||
Strategic data | $ | 94,943 | ||||||||||||
Legacy voice | 2,612 | |||||||||||||
Access | 2,742 | |||||||||||||
Total goodwill | $ | 100,297 | ||||||||||||
As of October 1, 2013, the Company performed its annual goodwill impairment test. The Company elected to bypass the qualitative assessment due to the restructuring of its operating segments and applied step one of the quantitative test as described above. Based on the results of this annual impairment testing, the Company determined that the fair values of each of the strategic data, legacy voice and access reporting units substantially exceed their respective carrying amounts and that no impairment exists. | ||||||||||||||
The gross amount of goodwill was $133.7 million and the accumulated impairment loss was $33.4 million for a net carrying amount of $100.3 million as of December 31, 2013 and 2012. The Company recorded a goodwill impairment charge in 2011 of $33.4 million and fully impaired certain franchise rights through a corresponding charge of $32.0 million. There was no activity in the consolidated goodwill accounts for the years ended December 31, 2013 and 2012. | ||||||||||||||
Accounting for Asset Retirement Obligations | ||||||||||||||
An asset retirement obligation is evaluated and recorded as appropriate on assets for which the Company has a legal obligation to retire. The Company records a liability for an asset retirement obligation and the associated asset retirement cost at the time the underlying asset is acquired. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. | ||||||||||||||
The Company enters into various facility collocation agreements and is subject to locality franchise ordinances. The Company constructs assets at these locations and, in accordance with the terms of many of these agreements, the Company is obligated to restore the premises to their original condition at the conclusion of the agreements, generally at the demand of the other party to these agreements. The Company recognizes the fair value of a liability for an asset retirement obligation and capitalizes that cost as part of the cost basis of the related asset, depreciating it over the useful life of the related asset. | ||||||||||||||
Included in certain of the franchise ordinances under which the Company’s RLECs and CLECs operate are clauses that require the removal of the RLEC’s and CLEC’s equipment at the termination of the franchise agreement. The Company has not recognized an asset retirement obligation for these liabilities as the removal of the equipment is not estimable due to an indeterminable end date and the fact that the equipment is part of the public switched telephone network and it is not reasonable to assume the jurisdictions would require its removal. | ||||||||||||||
The following table indicates the changes to the Company’s asset retirement obligation liability, which is included in other long-term liabilities, for the years ended December 31, 2013 and 2012: | ||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||
Asset retirement obligations, beginning | $ | 1,236 | $ | 1,114 | ||||||||||
Additional asset retirement obligations recorded, net of | ||||||||||||||
adjustments in estimates | 61 | -2 | ||||||||||||
Accretion of asset retirement obligations | 104 | 124 | ||||||||||||
Asset retirement obligations, ending | $ | 1,401 | $ | 1,236 | ||||||||||
Deferred Financing Costs | ||||||||||||||
The Company defers debt issuance costs and amortizes them over the life of the related debt instrument using the effective interest method. The Company incurred additional debt issuance costs in connection with the April 2013 debt refinancing of $4.9 million and expensed unamortized debt issuance costs associated with the previous credit facility of $0.9 million (Note 5). | ||||||||||||||
Advertising Costs | ||||||||||||||
The Company expenses advertising costs and marketing production costs as incurred (included within selling, general and administrative expenses in the consolidated statements of operations). Advertising expense for the years ended December 31, 2013, 2012 and 2011 was $0.8 million, $1.1 million and $0.9 million, respectively. | ||||||||||||||
Pension Benefits and Retirement Benefits Other Than Pensions | ||||||||||||||
The Company sponsors a non-contributory defined benefit pension plan (“Pension Plan”) covering all employees who meet eligibility requirements and were employed prior to October 1, 2003. Pension benefits vest after five years of plan service and are based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. The Company froze the Pension Plan effective December 31, 2012. As such, no further benefits will be accrued by participants for services rendered beyond that date. | ||||||||||||||
Sections 412 and 430 of the Internal Revenue Code and ERISA Sections 302 and 303 establish minimum funding requirements for defined benefit pension plans. The minimum required contribution is generally equal to the target normal cost plus the shortfall amortization installments for the current plan year and each of the six preceding plan years less any calculated credit balance. If plan assets (less calculated credits) are equal to or exceed the funding target, the minimum required contribution is the target normal cost reduced by the excess funding, but not below zero. The Company’s policy is to make contributions to stay at or above the threshold required in order to prevent benefit restrictions and related additional notice requirements and is intended to provide for benefits to be paid in the future. Also, Lumos Networks has nonqualified pension plans that are accounted for similar to its Pension Plan. | ||||||||||||||
The Company also provides certain health care and life insurance benefits for retired employees that meet eligibility requirements. The Company has two qualified nonpension postretirement benefit plans. The health care plan is contributory, with participants’ contributions adjusted annually. The life insurance plan is also contributory. These obligations, along with all of the pension plans and other post retirement benefit plans, are assumed by the Company. Eligibility for the life insurance plan is restricted to active pension participants age 50-64 as of January 5, 1994. Neither plan is eligible to employees hired after April 1993. The accounting for the plans anticipates that the Company will maintain a consistent level of cost sharing for the benefits with the retirees. The Company’s share of the projected costs of benefits that will be paid after retirement is generally being accrued by charges to expense over the eligible employees’ service periods to the dates they are fully eligible for benefits. | ||||||||||||||
The Company sponsors a contributory defined contribution plan under Internal Revenue Code Section 401(k) for substantially all employees. The Company’s policy is to match 100% of each participant’s annual contributions for contributions up to 1% of each participant’s annual compensation and 50% of each participant’s annual contributions up to an additional 5% of each participant’s annual compensation. Company contributions vest after two years of service. | ||||||||||||||
Operating Leases | ||||||||||||||
The Company has operating leases for administrative office space and equipment, certain of which have renewal options. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. The Company’s minimum lease term for most leases includes the initial non-cancelable term and at least one renewal period to the extent that the exercise of the related renewal option or options is reasonably assured. A renewal option or options is determined to be reasonably assured if failure to renew the leases imposes an in-substance economic penalty on the Company. Leasehold improvements are capitalized and depreciated over the shorter of the assets’ useful life or the lease term, including renewal option periods that are reasonably assured. | ||||||||||||||
Income Taxes | ||||||||||||||
Deferred income taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. The Company accrues interest and penalties related to unrecognized tax benefits in interest expense and income tax expense, respectively. | ||||||||||||||
Equity-based Compensation | ||||||||||||||
The Company accounts for share-based employee compensation plans under FASB ASC 718, Stock Compensation. Equity-based compensation expense from share-based equity awards is recorded with an offsetting increase to additional paid-in capital on the consolidated balance sheet. For equity awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. | ||||||||||||||
The fair value of common stock options granted with service-only conditions is estimated at the respective measurement date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The fair value of restricted stock awards granted with service-only conditions is estimated based on the market value of the common stock on the date of grant reduced by the present value of expected dividends as applicable. Certain stock options and restricted shares granted by the Company contain vesting provisions that are conditional on achievement of a target market price for the Company’s common stock. The grant date fair value of these options and restricted shares was adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model (see Note 9). The Company initially recognizes the related compensation cost for these awards that contain a market condition on a straight-line basis over the requisite service period as derived from the valuation model. The Company accelerates expense recognition if the market conditions are achieved prior to the end of the derived requisite service period. | ||||||||||||||
Total equity-based compensation expense related to all of the share-based awards (Note 9), including the Company’s 401(k) matching contributions, was $6.8 million, $3.9 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively, which amounts are included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
Future charges for equity-based compensation related to instruments outstanding at December 31, 2013 for the years 2014 through 2018 are estimated to be $3.2 million, $2.2 million, $0.9 million, $0.5 million and $0.1 million, respectively. | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value or for certain financial instruments for which disclosure of fair value is required, the Company uses fair value techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. | ||||||||||||||
GAAP establishes a fair value hierarchy with three levels of inputs that may be used to measure fair value: | ||||||||||||||
• | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||
• | Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. | |||||||||||||
• | Level 3 – Unobservable inputs for the asset or liability. | |||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, Reporting Amounts Reclassified out of Accumulated Other Comprehensive Income. This ASU requires entities to disclose the effect of the reclassification on each affected income statement line item of items reclassified out of accumulated other comprehensive income (AOCI) and into net income in their entirety. A cross reference to other required U.S. GAAP disclosures is required for AOCI reclassification items that are not reclassified in their entirety into net income. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company has complied with the requirements of this pronouncement by providing disclosure of the income statement line items affected by reclassifications out of other comprehensive income (loss) during the periods presented, which consist of reclassification adjustments for the amortization of actuarial losses on pension and other postretirement plans (see Note 11). | ||||||||||||||
Cash_Equivalents_And_Marketabl
Cash Equivalents And Marketable Securities | 12 Months Ended | ||
Dec. 31, 2013 | |||
Cash Equivalents And Marketable Securities [Abstract] | ' | ||
Cash Equivalents And Marketable Securities | ' | ||
Note 3. Cash Equivalents and Marketable Securities | |||
The Company’s cash equivalents and available-for-sale securities reported at fair value as of December 31, 2013 are summarized below. The Company did not previously have any cash equivalents or marketable securities at December 31, 2012. | |||
(In thousands) | 31-Dec-13 | ||
Cash equivalents: | |||
Money market mutual funds | $ | 267 | |
Corporate debt securities | 1,106 | ||
Total cash equivalents | 1,373 | ||
Marketable securities: | |||
Commercial paper | 7,746 | ||
Debt securities issued by U.S. Government agencies | 7,436 | ||
Corporate debt securities | 23,298 | ||
Total marketable securities, available-for-sale | 38,480 | ||
Total cash equivalents and marketable securities | $ | 39,853 | |
At December 31, 2013, the carrying values of the investments included in cash and equivalents approximated fair value. The amortized cost basis of the available-for-sale securities was not materially different from the aggregate fair value. | |||
The contractual maturities of the Company’s available-for-sale debt securities were as follows as of December 31, 2013: | |||
(In thousands) | Total | ||
Due in one year or less | $ | 22,519 | |
Due after one year through two years | 15,961 | ||
Total debt securities | $ | 38,480 | |
The Company did not receive any material proceeds from the sale or maturity of available-for-sale marketable securities or recognize any material realized net gains or losses during the year ended December 31, 2013. Net unrealized holding gains on available-for-sale securities were less than $0.1 million for the year ended December 31, 2013 and are included in accumulated other comprehensive loss on the consolidated balance sheet as of December 31, 2013. | |||
Disclosures_About_Segments_Of_
Disclosures About Segments Of An Enterprise And Related Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ' | |||||||||||||||
Disclosures About Segments Of An Enterprise And Related Information | ' | |||||||||||||||
Note 4. Disclosures About Segments of an Enterprise and Related Information | ||||||||||||||||
The Company’s operating segments closely align with its major product and service offerings, which coincides with the way that the Company’s chief operating decision makers measured performance and allocated resources during 2013. The Company’s chief operating decision makers are its Chief Executive Officer and its Chief Financial Officer (collectively, the “CODMs”). The Company’s current reportable operating segments are strategic data, legacy voice and access. A general description of the products and services offered and the customers served by each of the new reportable segments is as follows: | ||||||||||||||||
· | Strategic data: This segment includes the Company’s enterprise data, data transport, FTTC and IP services product groups. These businesses primarily serve carrier and enterprise customers utilizing the Company’s network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Pennsylvania, Maryland, Ohio and Kentucky. IP services are also provided to a residential base of customers by this segment. | |||||||||||||||
· | Legacy voice: This segment includes the following products: local lines, PRI, long distance, toll and directory advertising and other voice services (excluding VoIP) which are typically provided to enterprise customers and are included in our strategic data segment). These products are sold to enterprise and residential customers on the Company’s network within the Company’s footprint. | |||||||||||||||
· | Access: This segment provides carrier customers access to the Company’s network within the Company’s footprint and primarily includes switched access and reciprocal compensation products. | |||||||||||||||
Summarized financial information concerning the Company’s reportable segments is presented in the following table, which includes restated segment results for the years ended December 31, 2012 and 2011 consistent with the restructuring of the Company’s operating segments in 2013. | ||||||||||||||||
(In thousands) | Strategic | Legacy Voice | Access | Corporate (Unallocated) | Total | |||||||||||
Data | ||||||||||||||||
For the year ended December 31, 2013: | ||||||||||||||||
Operating revenues | $ | 121,333 | $ | 56,466 | $ | 29,676 | $ | - | $ | 207,475 | ||||||
Network access costs | 21,817 | 19,359 | 1,241 | - | 42,417 | |||||||||||
Network operating costs | 31,575 | 10,182 | 2,578 | - | 44,335 | |||||||||||
Selling, general and administrative expenses | 14,212 | 6,673 | 3,514 | 8,015 | 32,414 | |||||||||||
Adjusted EBITDA(1) | 53,729 | 20,252 | 22,343 | - | 96,324 | |||||||||||
Capital expenditures | 53,042 | 1,739 | 1,631 | 11,922 | 68,334 | |||||||||||
For the year ended December 31, 2012: | ||||||||||||||||
Operating revenues | $ | 109,010 | $ | 64,146 | $ | 33,715 | $ | - | $ | 206,871 | ||||||
Network access costs | 21,192 | 24,228 | 1,425 | - | 46,845 | |||||||||||
Network operating costs | 24,222 | 17,156 | 4,401 | - | 45,779 | |||||||||||
Selling, general and administrative expenses | 12,704 | 7,912 | 4,742 | 8,039 | 33,397 | |||||||||||
Adjusted EBITDA(1) | 50,892 | 14,850 | 23,147 | - | 88,889 | |||||||||||
Capital expenditures | 51,225 | 469 | 597 | 7,590 | 59,881 | |||||||||||
For the year ended December 31, 2011: | ||||||||||||||||
Operating revenues | $ | 93,549 | $ | 75,648 | $ | 38,217 | $ | - | $ | 207,414 | ||||||
Network access costs | 18,042 | 28,074 | 1,599 | - | 47,715 | |||||||||||
Network operating costs | 20,981 | 20,380 | 5,203 | - | 46,564 | |||||||||||
Selling, general and administrative expenses | 7,308 | 5,906 | 2,981 | 3,812 | 20,007 | |||||||||||
Adjusted EBITDA(1) | 47,218 | 21,288 | 28,434 | - | 96,940 | |||||||||||
Capital expenditures | 44,886 | 5,377 | 6,634 | 4,639 | 61,536 | |||||||||||
-1 | The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company’s reasons for using this non-GAAP financial measure. | |||||||||||||||
The Company’s CODMs do not currently review total assets by segment since the majority of the assets are shared by the segments and centrally-managed. However, total assets may be allocated to the segments in the future should the CODMs decide to manage the business in that manner. Management does review capital expenditures using success-based metrics that allow the Company to determine which segment product groups are driving investment in the network. Depreciation and amortization expense and certain corporate expenses that are excluded from the measurement of segment profit or loss are not allocated to the segments. | ||||||||||||||||
The following table provides a reconciliation of operating income (loss) to Adjusted EBITDA, as defined by the Company, on a consolidated basis for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||
Operating income (loss) | $ | 45,835 | $ | 41,196 | $ | -36,373 | ||||||||||
Depreciation and amortization and accretion of asset | ||||||||||||||||
retirement obligations | 42,424 | 39,008 | 43,206 | |||||||||||||
Sub-total: | 88,259 | 80,204 | 6,833 | |||||||||||||
Asset impairment charges | - | - | 86,295 | |||||||||||||
Amortization of actuarial losses | 1,237 | 1,781 | - | |||||||||||||
Equity-based compensation | 6,778 | 3,912 | 2,383 | |||||||||||||
Employee separation charges (1) | - | 2,346 | - | |||||||||||||
Restructuring charges (2) | 50 | 2,981 | - | |||||||||||||
Business separation charges (3) | - | - | 1,358 | |||||||||||||
Acquisition-related charges | - | - | 71 | |||||||||||||
Gain on settlements, net (4) | - | -2,335 | - | |||||||||||||
Adjusted EBITDA | $ | 96,324 | $ | 88,889 | $ | 96,940 | ||||||||||
-1 | Employee separation charges include employee separation benefits which were provided for in the separation agreements of two executive officers who left the Company in 2012. These charges are included in selling, general and administrative expense on the consolidated statement of operations. | |||||||||||||||
-2 | In 2012, the Company completed a cost reduction plan involving an employee reduction-in-force, consolidation of certain facilities and freezing benefits under certain postretirement plans. Restructuring charges of $3.0 million were recognized in 2012 in connection with this plan (Note 12). | |||||||||||||||
-3 | Business Separation charges include audit, legal and other professional fees incurred during the period related to the Company’s separation from NTELOS Holdings Corp. into a separate publicly traded company (Note 1). These charges are included in selling, general and administrative expense on the statement of operations. | |||||||||||||||
-4 | The net pre-tax gain on settlements was recognized in 2012 in connection with the settlement of outstanding matters related to a prior acquisition and the settlement of an outstanding lawsuit (Note 13). | |||||||||||||||
Revenues from Verizon accounted for approximately 10% of the Company's total revenue for the year ended December 31, 2013 and 10% and 9% of the Company’s total revenue for the years ended December 31, 2012 and 2011, respectively. Revenue from Verizon was derived primarily from network access and fiber to the cell site services. | ||||||||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Long-Term Debt [Abstract] | ' | ||||||
Long-Term Debt | ' | ||||||
Note 5. Long-Term Debt | |||||||
As of December 31, 2013 and 2012, the Company’s outstanding long-term debt consisted of the following components: | |||||||
(In thousands) | 2013 | 2012 | |||||
Credit Facility | $ | 373,625 | $ | 311,022 | |||
Capital lease obligations | 6,353 | 1,203 | |||||
379,978 | 312,225 | ||||||
Less: current portion of long-term debt | 6,688 | 7,900 | |||||
$ | 373,290 | $ | 304,325 | ||||
Credit Facility | |||||||
On April 30, 2013, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, entered into a $425 million credit facility (the “Credit Facility”). The Credit Facility consists of a $100 million senior secured five-year term loan (the “Term Loan A”), a $275 million senior secured six-year term loan (the “Term Loan B”); and a $50 million senior secured five-year revolving credit facility (the “Revolver”). The proceeds from the Term Loan A and the Term Loan B were used to retire the prior credit facility outstanding amount of approximately $311 million and to pay closing costs and other expenses related to the transaction, with the remaining proceeds available for normal course capital expenditures and working capital purposes. As of December 31, 2013, no borrowings were outstanding under the Revolver. | |||||||
Pricing of the Credit Facility is currently LIBOR plus 3.25% for the Revolver and Term Loan A and LIBOR plus 3.50% for Term Loan B. The Credit Facility does not require a minimum LIBOR rate. The Term Loan A matures in 2018 with quarterly payments of 1.25% per annum from September 30, 2014 through December 31, 2016 and 2.50% per annum thereafter. The Term Loan B matures in 2019 with quarterly payments of 1% per annum beginning on September 30, 2013. The Revolver matures in full in 2018. The Credit Facility is secured by a first priority pledge of substantially all property and assets of Lumos Networks Operating Company and all material subsidiaries, as guarantors, excluding the RLECs. | |||||||
The Credit Facility includes various restrictions and conditions, including a maximum leverage ratio of 4.75:1.00 through December 31, 2013, 4.50:1.00 for 2014, 4.25:1.00 for 2015 and 4.00:1.00 thereafter. The Credit Facility also sets a minimum interest rate coverage ratio of 3.25:1.00. At December 31, 2013, the Company’s leverage ratio was 3.94:1.00 and its interest coverage ratio was 7.38:1.00. The Company was in compliance with its debt covenants as of December 31, 2013. The Credit Facility has a maximum distributable amount available for restricted payments, including the payment of dividends. The distributable amount was initially set at $12 million and is reduced by restricted payments and certain other items set forth in the Credit Agreement. The distributable amount is increased annually by the greater of $12 million or 75% of free cash flow (as defined under the Credit Agreement). Based on the excess cash flow calculation for the year ended December 31, 2013, the distributable amount was increased by $12 million on January 1, 2014. The distributable amount as of December 31, 2013 was $5.9 million. | |||||||
The Company entered into an interest rate swap agreement in 2012, which expires December 31, 2015, whereby the Company swaps one-month LIBOR with a fixed rate of approximately 0.8%. In connection with the aforementioned debt refinancing in April 2013, the Company paid $0.9 million to terminate a portion of this interest rate swap agreement. In accordance with the terms of the Credit Facility, the Company entered into additional interest rate swap agreements in July 2013 to bring the combined notional amount of the interest rate swap agreements up to 50 percent of the aggregate outstanding balance of Term Loan A and Term Loan B. Under the new interest rate swap agreements, the Company swaps one-month LIBOR with a fixed rate of approximately 0.5%. The combined notional amount of the interest rate swap instruments was $186.8 million at December 31, 2013. The Company recognized a net loss on interest rate swap derivatives of $0.1 million and $1.9 million for the years ended December 31, 2013 and 2012, respectively. | |||||||
In connection with the refinancing in April 2013, the Company deferred an additional $4.9 million in debt issuance costs and expensed approximately $0.9 million of unamortized debt issuance costs associated with the previous credit facility, which expense is included in other expenses on the consolidated statements of operations for the year ended December 31, 2013. Total unamortized debt issuance costs were $6.6 million and $3.9 million as of December 31, 2013 and 2012, respectively, which amounts are included in deferred charges and other assets on the consolidated balance sheets and are being amortized to interest expense over the life of the debt using the effective interest method. Amortization of debt issuance costs for the years ended December 31, 2013 and 2012 was $1.3 million and $0.8 million, respectively. | |||||||
The Company receives patronage credits from CoBank and certain other of the Farm Credit System lending institutions (collectively referred to as “patronage banks”) which are not reflected in the interest rates above. The patronage banks hold a portion of the credit facility and are cooperative banks that are required to distribute their profits to their members. Patronage credits are calculated based on the patronage banks’ ownership percentage of the credit facility and are received by the Company as either a cash distribution or as equity in the patronage banks. The current patronage credit percentages are 75% in cash and 25% in equity. These credits are recorded in the consolidated statements of operations as an offset to interest expense. The Patronage credits were $1.3 million and $1.0 million for the years ended December 31, 2013 and 2012, respectively. | |||||||
The aggregate maturities of the Term Loan A and Term Loan B under the Credit Facility are $5.3 million in 2014, $7.7 million in 2015, $7.7 million in 2016, $12.8 million in 2017, $80.2 million in 2018 and $259.9 million thereafter. The revolver under the Credit Facility, under which no borrowings are outstanding as of December 31, 2013, matures in full in 2018. | |||||||
The Company’s blended average interest rate on its long-term debt for the year ended December 31, 2013 was 3.97%. | |||||||
Capital lease obligations | |||||||
In addition to the long-term debt discussed above, the Company has capital leases on vehicles with original lease terms of four to five years. At December 31, 2013, the carrying value and accumulated amortization of the related assets were $3.3 million and $1.7 million, respectively. In 2013, the Company entered into a financing arrangement with a provider of software services related to the upgrading of internal infrastructure, including certain software licenses, which the Company classified as a capital lease. The agreement extends through 2015 with payments due annually. As of December 31, 2013, the carrying value and accumulated depreciation of the related asset were $5.9 million and $0.6 million, respectively. As of December 31, 2013, the combined total net present value of the Company’s future minimum lease payments is $6.4 million and the principal portion of these capital lease obligations was due as follows: $1.4 million in 2014, $2.4 million in 2015, $2.3 million in 2016, $0.2 million in 2017 and $0.1 million thereafter. | |||||||
Supplementary_Disclosures_Of_C
Supplementary Disclosures Of Cash Flow Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Supplementary Disclosures Of Cash Flow Information [Abstract] | ' | |||||||||
Supplementary Disclosures Of Cash Flow Information | ' | |||||||||
Note 6. Supplementary Disclosures of Cash Flow Information | ||||||||||
The following information is presented as supplementary disclosures for the consolidated statements of cash flows for the years ended December 31, 2013, 2012 and 2011: | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||
Cash payments for: | ||||||||||
Interest (net of amounts capitalized) | $ | 13,278 | $ | 11,972 | $ | 2,261 | ||||
Income taxes | 970 | 1,892 | 87 | |||||||
Supplemental investing and financing | ||||||||||
activities: | ||||||||||
Additions to property and equipment | ||||||||||
included in accounts payable and | ||||||||||
other accrued liabilities | 6,145 | 6,621 | 2,900 | |||||||
Borrowings under capital leases | 6,544 | 380 | 990 | |||||||
Dividends paid through increase in | ||||||||||
borrowings from NTELOS Inc. | - | - | 14,145 | |||||||
Dividend declared not paid | $ | 3,091 | $ | 3,013 | $ | 2,980 | ||||
Cash payments for interest for the years ended December 31, 2013 and 2012 in the table above are net of $0.7 million and $0.1 million, respectively, of cash received from CoBank for patronage credits (Note 5). The amount of interest capitalized was $0.2 million, $0.1 million and less than $0.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||||||
Fair Value Of Financial Instruments | ' | ||||||||||||
Note 7. Fair Value of Financial Instruments | |||||||||||||
The Company’s financial instruments consist of cash and cash equivalents, marketable securities, restricted cash, accounts receivable, accounts payable, capital lease obligations (including the current portion), accrued liabilities, interest rate swap derivatives and the Credit Facility (including the current portion) as of December 31, 2013 and 2012. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, capital lease obligations and accrued liabilities approximated their fair values at December 31, 2013 and 2012. Marketable securities and interest rate swap derivatives are recorded in the consolidated balance sheets at fair value (see Note 3 and Note 5). | |||||||||||||
The following table presents the placement in the fair value hierarchy of financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2013: | |||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 267 | $ | - | $ | - | $ | 267 | |||||
Corporate debt securities | - | 1,106 | - | 1,106 | |||||||||
Total cash equivalents | 267 | 1,106 | - | 1,373 | |||||||||
Marketable securities: | |||||||||||||
Commercial paper | - | 7,746 | - | 7,746 | |||||||||
Debt securities issued by U.S. Government agencies | - | 7,436 | - | 7,436 | |||||||||
Corporate debt securities | - | 23,298 | - | 23,298 | |||||||||
Total marketable securities | - | 38,480 | - | 38,480 | |||||||||
Total assets | $ | 267 | $ | 39,586 | $ | - | $ | 39,853 | |||||
Liabilities: | |||||||||||||
Interest rate swap derivatives | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
Total liabilities | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
At December 31, 2012, the Company did not have any financial assets that were measured at fair value on a recurring basis and the only financial liability that was measured at fair value on a recurring basis was the interest rate swap derivatives. The fair value of the interest rate swap derivatives was $1.9 million at December 31, 2012 and the fair value measurement was classified as Level 2 within the fair value hierarchy. | |||||||||||||
The fair value of corporate and U.S. government debt securities are provided by a third-party pricing service and are estimated using pricing models. The underlying inputs to the pricing models are directly observable from active markets. However, the pricing models used do entail a certain amount of subjectivity and therefore differing judgments in how the underlying inputs are modeled could result in different estimates of fair value. As such, we classify these fair value measurements as Level 2 within the fair value hierarchy. The fair value of interest rate derivatives were derived based on bid prices obtained from the administrative agents as of the measurement date. | |||||||||||||
The following table summarizes the carrying amounts and estimated fair values of the components included in the Company’s long-term debt, including the current portion. | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
(In thousands) | Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | |||||||||
Credit Facility | $ | 373,625 | $ | 366,955 | $ | 311,022 | $ | 320,739 | |||||
Capital lease obligations | 6,353 | 6,353 | 1,203 | 1,203 | |||||||||
The fair value of the Credit Facility was estimated based on an internal analysis of the forward-looking interest rates as of the measurement date, compared to the forward looking interest rates at inception, assuming no change in the credit profile of the Company or market demand for similar instruments. | |||||||||||||
The Company also has certain non-marketable long-term investments for which it is not practicable to estimate fair value with a total carrying value of $0.7 million and $0.5 million as of December 31, 2013 and 2012, respectively, of which $0.6 million and $0.4 million, respectively, represents the Company’s investment in CoBank. This investment is primarily related to patronage distributions of restricted equity and is a required investment related to the portion of the Credit Facility held by CoBank. This investment is carried under the cost method. | |||||||||||||
Stockholders_Equity_And_Earnin
Stockholders' Equity And Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Stockholders' Equity And Earnings Per Share [Abstract] | ' | |||||||||
Stockholders' Equity And Earnings Per Share | ' | |||||||||
Note 8. Stockholders’ Equity and Earnings per Share | ||||||||||
On February 20, 2014, the Company’s board of directors declared a quarterly dividend on its common stock in the amount of $0.14 per share, which is to be paid on April 10, 2014 to stockholders of record on March 13, 2014. | ||||||||||
The Company computes basic earnings per share by dividing net income attributable to Lumos Networks Corp. applicable to common shares by the weighted average number of common shares outstanding during the period. The impact on earnings per share of nonvested restricted shares outstanding that contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares is included in the computation of basic earnings per share pursuant to the two-class method. The Company issues restricted shares from time to time with vesting terms that are based on achievement of certain stock price performance conditions. These nonvested restricted shares are excluded from the computation of basic and diluted weighted average shares until the period in which the applicable performance or market conditions are attained. The Company uses the treasury stock method to determine the number of potentially dilutive common shares from stock options and nonvested restricted shares during the period. | ||||||||||
The computations of basic and diluted earnings per share for the years ended December 31, 2013 and 2012 and the unaudited computation of pro forma basic and diluted loss per share for the year ended December 31, 2011 are as follows: | ||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | Pro Forma 2011 | |||||||
(Unaudited) (1) | ||||||||||
Numerator: | ||||||||||
Net income attributable to Lumos Networks Corp. | $ | 17,773 | $ | 16,340 | $ | -43,930 | ||||
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | -425 | -331 | - | |||||||
Numerator for basic and diluted earnings per common share | 17,348 | 16,009 | -43,930 | |||||||
Denominator: | ||||||||||
Weighted average basic shares outstanding | 21,887 | 21,392 | 21,198 | |||||||
Less: weighted average participating securities and nonvested performance-based restricted shares | -579 | -434 | -384 | |||||||
Denominator for basic earnings per common share | 21,308 | 20,958 | 20,814 | |||||||
Plus: potentially dilutive restricted shares and stock options | 368 | 15 | - | |||||||
Denominator for diluted earnings per common share | 21,676 | 20,973 | 20,814 | |||||||
Basic earnings per share | $ | 0.81 | $ | 0.78 | $ | -2.11 | ||||
Diluted earnings per share | $ | 0.80 | $ | 0.76 | $ | -2.11 | ||||
-1 | Basic and diluted loss per share for the year ended December 31, 2011 is computed on a pro forma basis by dividing net loss by the weighted average number of common shares outstanding during the two month post-Business Separation period beginning November 1, 2011 and ending December 31, 2011, as if such shares had been outstanding for the entire year. | |||||||||
For the year ended December 31, 2013, the denominator for diluted earnings per common share excludes 310,933 shares related to stock options and 20,100 shares related to restricted stock awards which would be antidilutive for the period. For the year ended December 31, 2012, the denominator for diluted earnings per common share excludes 1,546,900 shares related to stock options and 45,324 shares related to restricted stock awards which would be antidilutive for the period. For the year ended December 31, 2011, the denominator for diluted loss per common share is equal to the denominator for basic loss per common share because the addition of unvested shares or other common stock equivalents would be anti-dilutive (416,417 at December 31, 2011). | ||||||||||
Stock_Plans
Stock Plans | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock Plans [Abstract] | ' | ||||||||||
Stock Plans | ' | ||||||||||
Note 9. Stock Plans | |||||||||||
The Company has an Equity and Cash Incentive Plan administered by the Compensation Committee of the Company’s board of directors, which permits the grant of long-term incentives to employees and non-employee directors, including stock options, stock appreciation rights, restricted stock awards, restricted stock units, incentive awards, other stock-based awards and dividend equivalents. The maximum number of shares of common stock available for awards under the Equity and Cash Incentive Plan is 4,000,000. As of December 31, 2013, 355,776 securities remained available for issuance under the Equity and Cash Incentive Plan. Upon the exercise of stock options or upon the grant of restricted stock under the Equity and Cash Incentive Plan, new common shares are issued or treasury stock is reissued. | |||||||||||
The Company issued 771,964 stock options and 508,865 shares of restricted stock under the Equity and Cash Incentive Plan during the year ended December 31, 2013. Options issued to employees with service-only conditions generally vest on a graded vesting schedule over a four to five year period. Options generally cliff vest on the first anniversary of the grant date for non-employee directors. Of the 771,964 stock options granted, 382,782 vest upon achievement of a target market price for the Company’s common stock. Restricted shares generally cliff vest on the third anniversary of the grant date for employees and generally cliff vest on the first anniversary of the grant date for non-employee directors. Some restricted stock awards vest on a graded vesting schedule over a five year period. Of the 508,865 shares of restricted stock granted, 127,325 vest upon achievement of a target market price for the Company’s common stock. During the third quarter of 2013, 437,841 stock options and 104,672 restricted shares vested upon attainment of the target market price for the Company’s common stock in accordance with the terms of the awards. The Company recognized all of the remaining unrecognized compensation expense for these awards on the vesting date, which totaled $1.8 million. | |||||||||||
Dividend rights applicable to restricted stock with service-only vesting conditions are equivalent to the Company’s common stock. Restricted stock awards that vest based on achievement of a market condition are not eligible for dividends during the vesting period unless the Compensation Committee determines otherwise. | |||||||||||
Stock options must be granted under the Equity and Cash Incentive Plan at not less than 100% of fair value on the date of grant and have a maximum life of ten years from the date of grant. Options and other awards under the Equity and Cash Incentive Plan may be exercised in compliance with such requirements as determined by a committee of the board of directors. Substantially all options outstanding were issued at a strike price equal to or greater than the fair value on the date of grant. | |||||||||||
The fair value of each option award with service-only vesting conditions is estimated on the grant date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The risk-free rate is based on the zero-coupon U.S. Treasury rate in effect at the time of grant, with a term equal to the expected life of the options. The Company uses peer group and other publicly available market data to estimate volatility assumptions as the Company does not have an adequate trading history to estimate its actual volatility. The expected option life represents the period of time that the options granted are expected to be outstanding and is determined using the simplified method. The expected dividend yield is estimated based on the Company’s actual dividend yield at the date of the grant. | |||||||||||
The weighted-average grant date fair value per share of stock options granted during the years ended December 31, 2013 and 2012 $3.33 and $2.34, respectively, and $3.95 for the stock options granted during the period November 1, 2011 through December 31, 2011. The following weighted-average assumptions were used in estimating the grant date fair value of these awards: | |||||||||||
Year Ended | Year Ended | 1-Nov-11 | |||||||||
31-Dec-13 | 31-Dec-12 | through | |||||||||
31-Dec-11 | |||||||||||
Risk-free interest rate | 1.34% | 1.40% | 1.55% | ||||||||
Expected volatility | 44.19% | 43.42% | 34.70% | ||||||||
Expected dividend yield | 4.70% | 5.77% | 3.10% | ||||||||
Expected term | 6.6 years | 7 years | 7 years | ||||||||
The fair value of each restricted stock award with service-only vesting conditions is based on the closing price of the Company’s common stock on the grant date. The fair value for option awards and restricted stock awards with vesting that is conditional on achievement of market conditions, as described above, is adjusted to reflect the probability of satisfying the market condition based on a Monte Carlo valuation model. | |||||||||||
The summary of the activity and status of the Company’s stock options for the year ended December 31, 2013 is as follows: | |||||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||
Stock options outstanding at December 31, 2012 | 1,714 | $ | 12.29 | 7.6 years | $ | 1,002 | |||||
Granted during the period | 772 | 12.18 | |||||||||
Exercised during the period | -97 | 11.47 | |||||||||
Forfeited during the period | -30 | 12.08 | |||||||||
Expired during the period | -93 | 14.88 | |||||||||
Stock options outstanding at December 31, 2013 | 2,266 | $ | 12.19 | 7.7 years | $ | 20,019 | |||||
Stock options exercisable at December 31, 2013 | 1,269 | $ | 12.58 | 6.9 years | $ | 10,737 | |||||
Total stock options outstanding, vested and expected to vest | |||||||||||
at December 31, 2013 | 2,170 | $ | 12.24 | $ | 19,056 | ||||||
The total intrinsic value of stock options exercised during the year ended December 31, 2013 was $0.9 million. No options were exercised during the year ended December 31, 2012 or during the period from November 1, 2011 through December 31, 2011. The total fair value of options that vested during the years ended December 31, 2013 and 2012 was $2.3 million and $1.1 million, respectively. The total fair value of options that vested during the period from November 1, 2011 through December 31, 2011 was $0.1 million. As of December 31, 2013, there was $2.0 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 3.1 years. | |||||||||||
The summary of the activity and status of the Company’s restricted stock for the year ended December 31, 2013 is as follows: | |||||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Grant Date Fair Value per Share | |||||||||
Restricted stock outstanding at December 31, 2012 | 342 | $ | 11.67 | ||||||||
Granted during the period | 509 | 11.93 | |||||||||
Vested during the period | -252 | 11.59 | |||||||||
Forfeited during the period | -39 | 11.90 | |||||||||
Restricted stock outstanding at December 31, 2013 | 560 | $ | 11.93 | ||||||||
As of December 31, 2013, there was $4.0 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 2.5 years. The total fair value of restricted stock awards that vested during the years ended December 31, 2013 and 2012 was $4.6 million and $2.2 million, respectively. No restricted stock awards vested during the period from November 1, 2011 through December 31, 2011. | |||||||||||
In addition to the Equity and Cash Incentive Plan discussed above, the Company has an employee stock purchase plan which commenced in November 2011 with 100,000 shares available. As of December 31, 2013, 78,655 shares remained available for issuance under the employee stock purchase plan. New common shares will be issued for purchases under this plan or treasury shares will be reissued. Shares are priced at 85% of the closing price on the last trading day of the month and settle on the second business day of the following month. During the year ended December 31, 2013, 12,957 shares were issued under the employee stock purchase plan. Compensation expense associated with the employee stock purchase plan was less than $0.1 million for the years ended December 31, 2013 and 2012. Compensation expense associated with the employee stock purchase plan was not material in the period November 1, 2011 through December 31, 2011. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Taxes [Abstract] | ' | |||||||||
Income Taxes | ' | |||||||||
Note 10. Income Taxes | ||||||||||
The components of income tax expense (benefit) are as follows for the years ended December 31, 2013, 2012 and 2011: | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||
Current tax expense: | ||||||||||
Federal | $ | - | $ | - | $ | - | ||||
State | 516 | 496 | 3,727 | |||||||
Total current tax expense | 516 | 496 | 3,727 | |||||||
Deferred tax expense (benefit): | ||||||||||
Federal | 10,102 | 8,982 | -3,657 | |||||||
State | 1,401 | 1,532 | -4,453 | |||||||
Total deferred tax expense (benefit) | 11,503 | 10,514 | -8,110 | |||||||
Total income tax expense (benefit) | $ | 12,019 | $ | 11,010 | $ | -4,383 | ||||
Total income tax expense (benefit) was different than an amount computed by applying the graduated federal statutory income tax rates to income (loss) before taxes. The reasons for the differences are as follows for the years ended December 31, 2013, 2012 and 2011: | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||
Computed tax expense (benefit) at federal statutory | ||||||||||
rate of 35% | $ | 10,470 | $ | 9,610 | $ | -16,891 | ||||
Nondeductible goodwill impairment charge | - | - | 11,703 | |||||||
Nondeductible compensation | 307 | 91 | 637 | |||||||
Noncontrolling interests | -50 | -37 | 18 | |||||||
Nondeductible public offering costs | 285 | - | - | |||||||
State income taxes, net of federal income | ||||||||||
tax impact | 1,246 | 1,318 | -472 | |||||||
Other, net | -239 | 28 | 622 | |||||||
Total income tax expense (benefit) | $ | 12,019 | $ | 11,010 | $ | -4,383 | ||||
During the years ended December 31, 2013 and 2012, the Company recognized tax benefits of approximately $1.1 million and $0.4 million, respectively, in additional paid-in capital associated with the excess tax benefits realized by the Company related to stock compensation plans. The Company recognized tax expense of $5.5 million and $2.7 million in accumulated other comprehensive income associated with the adjustments to various employee benefit plan liabilities for the years ended December 31, 2013 and 2012, respectively, in accordance with FASB ASC 715. The amount recognized in accumulated other comprehensive income was $1.8 million for the period November 1, 2011 through December 31, 2011. | ||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities at December 31, 2013 and 2012 are presented below: | ||||||||||
(In thousands) | 2013 | 2012 | ||||||||
Deferred income tax assets: | ||||||||||
Retirement benefits other than pension | $ | 6,909 | $ | 5,053 | ||||||
Pension and related plans | - | 6,228 | ||||||||
Net operating loss | 6,200 | 4,346 | ||||||||
Accrued expenses | 4,480 | 4,146 | ||||||||
Other | 170 | 1,379 | ||||||||
Total deferred income tax assets | 17,759 | 21,152 | ||||||||
Deferred income tax liabilities: | ||||||||||
Property and equipment | -82,040 | -67,493 | ||||||||
Intangibles | -7,271 | -9,615 | ||||||||
Pension and related plans | -246 | - | ||||||||
Total deferred income tax liabilities | -89,557 | -77,108 | ||||||||
Net deferred income tax liability | $ | -71,798 | $ | -55,956 | ||||||
Balance sheet classification of deferred income taxes: | ||||||||||
Net current deferred income tax asset | $ | 7,289 | $ | 3,357 | ||||||
Net non-current deferred income tax liability | -79,087 | -59,313 | ||||||||
Net deferred income tax liability | $ | -71,798 | $ | -55,956 | ||||||
At December 31, 2013, the Company had federal net operating losses (“NOLs”) of $15.7 million, net of adjustments for unrecognized income tax benefits (“UTBs”), and state NOLs of $15.6 million. The Company’s NOLs, if not utilized to reduce taxable income in future periods, will expire in varying amounts from 2022 through 2034. The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. | ||||||||||
The Company recognizes interest related to UTBs in interest expense and penalties on UTBs in income tax expense. A reconciliation of the change in the UTB balance for the years ended December 31, 2013 and 2012 is as follows: | ||||||||||
(In thousands) | 2013 | 2012 | ||||||||
Balance at beginning of year | $ | 609 | $ | 484 | ||||||
Additions for tax positions related to the current year | 291 | 82 | ||||||||
Increases for tax positions related to prior years | 554 | 43 | ||||||||
Statute of limitations expiration | -329 | - | ||||||||
Balance at end of year | $ | 1,125 | $ | 609 | ||||||
All of the Company’s UTBs as of December 31, 2013 and 2012 were adjusted through income tax expense. The Company does not expect to have any material changes to its UTBs over the next twelve months. | ||||||||||
While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than its accrued position. Accordingly, additional provisions could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. In general, the tax years that remain open and subject to federal and state audit examinations are 2010-2012 as of December 31, 2013. | ||||||||||
Pension_Plans_And_Other_Postre
Pension Plans And Other Postretirement Benefits | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Pension Plans And Other Postretirement Benefits [Abstract] | ' | |||||||||||||||||||
Pension Plans And Other Postretirement Benefits | ' | |||||||||||||||||||
Note 11. Pension Plans and Other Postretirement Benefits | ||||||||||||||||||||
The Company sponsors a non-contributory defined benefit pension plan (“Pension Plan”), as well as non-qualified pension plans and other postretirement benefit plans (“OPEBs”) for its eligible employees. The Company recognized total income of $0.7 million in 2013 and total periodic benefit cost of $2.2 million and $2.8 million in 2012 and 2011, respectively, for all qualified and non-qualified pension and OPEBs plans. A portion of the costs for 2011 were allocated to the Company by NTELOS, when its employees were participating in similar plans sponsored by NTELOS. Effective December 31, 2012, the Company froze the accumulation of benefits under the Pension Plan and the supplemental executive retirement plan. As such, no further benefits will be accrued by plan participants for services rendered after that date under either of these plans. | ||||||||||||||||||||
The following tables provide a reconciliation of the changes in the qualified plans’ benefit obligations and fair value of assets and a statement of the funded status as of December 31, 2013, 2012 and 2011 and the classification of amounts recognized in the consolidated balance sheets: | ||||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
(In thousands) | Year Ended | Year Ended | 1-Nov-11 | Year Ended | Year Ended | 1-Nov-11 | ||||||||||||||
December 31, 2013 | December 31, 2012 | to December 31, 2011 | December 31, 2013 | December 31, 2012 | to December 31, 2011 | |||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||
Benefit obligations, beginning of period | $ | 64,511 | $ | 64,061 | $ | 60,181 | $ | 12,874 | $ | 12,511 | $ | 12,157 | ||||||||
Service cost | - | 2,043 | 312 | 91 | 78 | 12 | ||||||||||||||
Interest cost | 2,432 | 2,698 | 451 | 485 | 525 | 91 | ||||||||||||||
Actuarial (gain) loss | -7,199 | 5,942 | 3,528 | 26 | 201 | 318 | ||||||||||||||
Benefits paid, net | -2,756 | -2,475 | -411 | -676 | -441 | -67 | ||||||||||||||
Curtailment gain | - | -8,519 | - | - | - | - | ||||||||||||||
Transfer | 221 | 761 | - | - | - | - | ||||||||||||||
Benefit obligations, end of period | 57,209 | 64,511 | 64,061 | 12,800 | 12,874 | 12,511 | ||||||||||||||
Change in plan assets: | ||||||||||||||||||||
Fair value of plan assets, beginning of period | 51,675 | 45,109 | 45,531 | - | - | - | ||||||||||||||
Actual return on plan assets | 8,897 | 6,610 | -11 | - | - | - | ||||||||||||||
Employer contributions | - | 2,000 | - | 676 | 441 | 67 | ||||||||||||||
Benefits paid | -2,812 | -2,492 | -411 | -676 | -441 | -67 | ||||||||||||||
Transfer | 87 | 448 | - | - | - | - | ||||||||||||||
Fair value of plan assets, end of period | 57,847 | 51,675 | 45,109 | - | - | - | ||||||||||||||
Funded status: | ||||||||||||||||||||
Non-current asset | -638 | - | - | - | - | - | ||||||||||||||
Current liabilities | - | - | - | 671 | 553 | 603 | ||||||||||||||
Non-current liabilities | - | 12,836 | 18,952 | 12,129 | 12,321 | 11,908 | ||||||||||||||
Funded status recognized in the consolidated balance sheets | $ | -638 | $ | 12,836 | $ | 18,952 | $ | 12,800 | $ | 12,874 | $ | 12,511 | ||||||||
Amounts recognized in accumulated other comprehensive loss: | ||||||||||||||||||||
Net actuarial loss | -3,711 | -16,778 | -23,630 | -1,211 | -1,480 | -1,279 | ||||||||||||||
Income taxes | 1,444 | 6,527 | 9,192 | 471 | 576 | 498 | ||||||||||||||
Net amount recognized in accumulated other comprehensive loss | $ | -2,267 | $ | -10,251 | $ | -14,438 | $ | -740 | $ | -904 | $ | -781 | ||||||||
The accumulated benefit obligation for the defined benefit pension plan at December 31, 2013 and 2012 was $57.2 million and $64.5 million, respectively. The accumulated benefit obligation represents the present value of pension benefits based on service and salary earned to date. The benefit obligation indicated in the table above is the projected benefit obligation which represents the present value of pension benefits taking into account projected future service and salary increases. The projected benefit obligation is equal to the accumulated benefit obligation as of December 31, 2013 and 2012 since the Pension Plan was frozen effective as of December 31, 2012. | ||||||||||||||||||||
The total amounts reclassified out of accumulated other comprehensive income related to amortization of actuarial losses for the pension and other postretirement benefit plans for the years ended December 31, 2013 and 2012 were $1.0 million and $1.5 million, respectively, and the amount reclassified for the period November 1, 2011 through December 31, 2011 was $0.2 million. Amortization of actuarial losses is included in selling, general and administrative expenses on the consolidated statements of operations. | ||||||||||||||||||||
The following table provides the components of net periodic (benefit) expense for the plans for the years ended December 31, 2013 and 2012 and the period November 1, 2011 to December 31, 2011: | ||||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
(In thousands) | Year Ended | Year Ended | 1-Nov-11 | Year Ended | Year Ended | 1-Nov-11 | ||||||||||||||
December 31, 2013 | December 31, 2012 | to December 31, 2011 | December 31, 2013 | 31-Dec-12 | to December 31, 2011 | |||||||||||||||
Components of net periodic (benefit) expense: | ||||||||||||||||||||
Service cost | $ | - | $ | 2,043 | $ | 312 | $ | 91 | $ | 78 | $ | 12 | ||||||||
Interest cost | 2,432 | 2,698 | 451 | 485 | 525 | 91 | ||||||||||||||
Expected return on plan assets | -3,901 | -3,517 | -571 | - | - | - | ||||||||||||||
Amortization of loss | 918 | 1,481 | 197 | 28 | - | - | ||||||||||||||
Net periodic (benefit) expense | $ | -551 | $ | 2,705 | $ | 389 | $ | 604 | $ | 603 | $ | 103 | ||||||||
Actuarial gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants. | ||||||||||||||||||||
The assumptions used in the measurements of the Company’s benefit obligations at December 31, 2013 and 2012 are shown in the following table: | ||||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | 31-Dec-13 | December 31, 2012 | |||||||||||||||||
Discount rate | 4.70 | % | 3.85 | % | 4.70 | % | 3.85 | % | ||||||||||||
Rate of compensation increase | N/A | 3.00 | % | N/A | N/A | |||||||||||||||
The assumptions used in the measurements of the Company’s net income or expense for the consolidated statement of operations for the years ended December 31, 2013 and 2012 and for the period November 1, 2011 through December 31, 2011 are as follows: | ||||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
Year Ended | Year Ended December 31, 2012 | 1-Nov-11 | Year Ended | Year Ended December 31, 2012 | 1-Nov-11 | |||||||||||||||
December 31, 2013 | to December 31, 2011 | December 31, 2013 | to December 31, 2011 | |||||||||||||||||
Discount rate | 3.85 | % | 4.30 | % | 4.60 | % | 3.85 | % | 4.30 | % | 4.60 | % | ||||||||
Expected return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||||
Rate of compensation increase | N/A | 3.00 | % | 3.00 | % | N/A | N/A | N/A | ||||||||||||
The Company reviews the assumptions noted in the above table annually or more frequently to reflect anticipated future changes in the underlying economic factors used to determine these assumptions. The discount rates assumed reflect the rate at which the Company could invest in high quality corporate bonds in order to settle future obligations. In doing so, the Company utilizes a Citigroup Pension Discount Curve applied against the Company’s estimated defined benefit payments to derive a blended rate. The Citigroup Pension Discount Curve is derived from over 350 Aa corporate bonds. The Company also compares this to a Moody’s ten year Aa bond index for reasonableness. | ||||||||||||||||||||
For measurement purposes, a 6.5% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014 for the obligation as of December 31, 2013. The rate was assumed to decrease one-half percent per year to a rate of 5.0% for 2017 and remain at that level thereafter. | ||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The effect of a 1% change on the medical trend rate per future year, while holding all other assumptions constant, to the service and interest cost components of net periodic postretirement health care benefit costs and accumulated postretirement benefit obligation would be a $0.1 million increase and a $1.7 million increase, respectively, for a 1% increase in medical trend rate and a $0.1 million decrease and a $1.4 million decrease, respectively, for a 1% decrease in medical trend rate. | ||||||||||||||||||||
In developing the expected long-term rate of return assumption for the assets of the Pension Plan, the Company evaluated input from its third party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions. The Company also considered the related historical ten-year average asset return at December 31, 2013 as well as considering input from the Company’s third party pension plan asset managers. | ||||||||||||||||||||
The weighted average actual asset allocations by asset category and the fair value by asset category as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||
(Dollars in thousands) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||
Asset Category | Actual Allocation | Fair Value | Actual Allocation | Fair Value | ||||||||||||||||
Large Cap Value | 23 | % | $ | 13,202 | 32 | % | $ | 16,395 | ||||||||||||
Large Cap Blend | 11 | % | 6,558 | 16 | % | 8,169 | ||||||||||||||
Mid Cap Blend | 6 | % | 3,559 | 6 | % | 3,149 | ||||||||||||||
Small Cap Blend | 4 | % | 2,384 | 4 | % | 2,134 | ||||||||||||||
Foreign Stock - Large Cap | 7 | % | 4,069 | 7 | % | 3,696 | ||||||||||||||
Bond | 34 | % | 19,559 | 32 | % | 16,405 | ||||||||||||||
Cash and cash equivalents | 15 | % | 8,516 | 3 | % | 1,727 | ||||||||||||||
Total | 100 | % | $ | 57,847 | 100 | % | $ | 51,675 | ||||||||||||
The actual and target allocation for plan assets is broadly defined and measured as follows: | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
Asset Category | Actual Allocation | Target Allocation | Actual and Target Allocation | |||||||||||||||||
Equity securities | 49 | % | 50 | % | 65 | % | ||||||||||||||
Bond securities and cash equivalents | 51 | % | 50 | % | 35 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||
It is the Company’s policy to invest pension plan assets in a diversified portfolio consisting of an array of asset classes. The investment risk of the assets is limited by appropriate diversification both within and between asset classes. The assets are primarily invested in investment funds that invest in a broad mix of publicly traded equities, bonds and cash equivalents (and fair value is based on quoted market prices (Level 1 input within the fair value hierarchy previously defined)). The allocation between equity and bonds is reset quarterly to the target allocations. Updates to the allocation are considered in the normal course and changes may be made when appropriate. The bond holdings consist of three bond funds split relatively evenly between these funds at December 31, 2013. At December 31, 2013, the Company believes that there are no material concentrations of risk within the portfolio of plan assets. | ||||||||||||||||||||
The assumed long term return noted above is the target long term return. Overall return, risk adjusted return, and management fees are assessed against a peer group and benchmark indices. Reporting on asset performance is provided quarterly and review meetings are held semi-annually. In addition to normal rebalancing to maintain an adequate cash reserve, projected cash flow needs of the plan are reviewed at least annually to ensure liquidity is properly managed. | ||||||||||||||||||||
The Company did not contribute to the Pension Plan in 2013 and does not expect to contribute to the Pension Plan in 2014. The Company contributed $2.0 million to the Pension Plan in 2012. The Company expects the net periodic (benefit) expense for the Pension Plan and the other postretirement benefit plans in 2014 to be ($1.8 million) and $0.7 million, respectively. | ||||||||||||||||||||
The following estimated future pension benefit payments and other postretirement benefit plan payments which reflect expected future service, as appropriate, are expected to be paid in the years indicated: | ||||||||||||||||||||
(In thousands) | Defined Benefit Pension Plan | Other Postretirement Benefit Plans | ||||||||||||||||||
Year | ||||||||||||||||||||
2014 | $ | 2,838 | $ | 671 | ||||||||||||||||
2015 | 2,894 | 667 | ||||||||||||||||||
2016 | 2,927 | 680 | ||||||||||||||||||
2017 | 2,981 | 690 | ||||||||||||||||||
2018 | 3,004 | 700 | ||||||||||||||||||
2019-2023 | 16,168 | 3,618 | ||||||||||||||||||
Other Benefit Plans | ||||||||||||||||||||
The Company also has a supplemental executive retirement plan (“SERP”). The Company froze the SERP effective December 31, 2012. As such, no further benefits will be accrued by plan participants for services rendered and the accumulated benefit obligation is equivalent to the projected benefit obligation for periods ending after that date. In connection with freezing the plan, a curtailment gain of $0.2 million was recorded at December 31, 2012 as an offset to unrecognized actuarial losses in accumulated other comprehensive income. | ||||||||||||||||||||
The projected benefit obligation was $4.3 million and $4.8 million as of December 31, 2013 and 2012, respectively. The projected benefit obligation and the accumulated benefit obligation associated with this plan at December 31, 2011 were $4.3 million and $2.5 million, respectively. The Company recognized $0.3 million of expense from previously unrecognized loss related to the supplemental executive retirement plan during each of the years ended December 31, 2013 and 2012 and $0.2 million for the period November 1, 2011 through December 31, 2011, all of which is included in selling, general and administrative expenses in the consolidated statements of operations. The total amount of unrecognized actuarial losses recognized in accumulated other comprehensive income at December 31, 2013 and 2012 related to this plan was $1.1 million, net of income taxes of $0.7 million, and $1.5 million, net of income taxes of $1.0 million, respectively. | ||||||||||||||||||||
The estimated future benefit payments are expected to be $0.2 million annually for each of the years 2014 through 2018 and $1.3 million in aggregate for the years 2019 through 2023. | ||||||||||||||||||||
The Company also has certain other nonqualified defined benefit pension plans assumed from a prior merger. The projected benefit obligation related to these plans at December 31, 2013 and 2012 was $0.4 million and $0.5 million, respectively, with expected future payments of $0.1 million in 2014 and $0.1 million or less thereafter. These nonqualified plans have no plan assets and are also closed to new participants. | ||||||||||||||||||||
The Company also sponsors a defined contribution 401(k) plan. The Company’s matching contributions to this plan were $0.9 million, $0.8 million and $0.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company funds its 401(k) matching contributions in shares of the Company’s common stock. | ||||||||||||||||||||
Restructuring_Charges
Restructuring Charges | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Restructuring Charges [Abstract] | ' | |||||||||
Restructuring Charges | ' | |||||||||
Note 12. Restructuring Charges | ||||||||||
In December 2012, the Company announced a cost reduction plan (the “Plan”), which involved closing or consolidating certain of its facilities, reducing its workforce and freezing benefits under both its defined benefit pension plan and its executive supplemental retirement plan. The Company recognized a total of $3.0 million in restructuring costs in 2012 related to these initiatives, including severance and separation costs of $2.4 million and lease termination costs of $0.6 million. The Plan was substantially completed as of December 31, 2012. The Company incurred costs of less than $0.1 million in 2013 associated with this plan and does not expect to incur any additional costs. | ||||||||||
A liability for restructuring charges in the amount of $2.7 million was included in the Company’s consolidated balance sheet as of December 31, 2012, related to employee termination costs and lease termination costs accrued but not yet paid. Below is a roll-forward of the liability for restructuring charges from 2011 to 2013: | ||||||||||
(In thousands) | Employee Severance and Termination Benefits | Lease Termination Costs | Total | |||||||
Beginning balance at December 31, 2011 | $ | - | $ | - | $ | - | ||||
Additions | 2,387 | 594 | 2,981 | |||||||
Payments | - | -290 | -290 | |||||||
Ending balance at December 31, 2012 | $ | 2,387 | $ | 304 | $ | 2,691 | ||||
Additions | 10 | 40 | 50 | |||||||
Payments | -2,397 | -344 | -2,741 | |||||||
Ending balance at December 31, 2013 | $ | - | $ | - | $ | - | ||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
Note 13. Commitments and Contingencies | |
Operating Leases | |
Rental expense for all operating leases for the years ended December 31, 2013, 2012 and 2011 was $2.9 million, $3.5 million and $3.8 million, respectively. The total amount committed under these lease agreements at December 31, 2013 is: $0.8 million in 2014, $0.8 million in 2015, $0.7 million in 2016, $0.7 million in 2017, $0.6 million in 2018 and $1.4 million for the years thereafter. | |
Other Commitments and Contingencies | |
The Company periodically makes claims or receives disputes and is involved in legal actions related to billings to other carriers for access to the Company’s network. The Company does not recognize revenue related to such matters until collection of the claims is reasonably assured. In addition to this, the Company periodically disputes access charges that are assessed by other companies with which the Company interconnects and is involved in other disputes and legal and tax proceedings and filings arising from normal business activities. | |
The Company is involved in routine litigation and disputes in the ordinary course of its business. While the results of litigation and disputes are inherently unpredictable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows, and believes that adequate provision for any probable and estimable losses has been made in the Company’s consolidated financial statements. | |
The Company has other purchase commitments relating to capital expenditures totaling $6.1 million as of December 31, 2013, which are expected to be satisfied during 2014. | |
Separation and Other Agreements with NTELOS | |
The Company entered into a series of agreements with NTELOS that were intended to govern the relationship between the Company and NTELOS following the Business Separation, and within such agreements, the companies are required to indemnify each other regarding certain matters. These agreements include commercial service agreements, a separation and distribution agreement, an employee matters agreement, a tax matters agreement, intellectual property agreements and a transition services agreement. During the years ended December 31, 2013, 2012 and 2011, the net expense to the Company related to the transition services agreement was $0.1 million, $1.5 million and $0.4 million, respectively. See Note 14 regarding related party transactions with NTELOS. | |
Under the tax matters agreement entered into between NTELOS and the Company, the Company is generally required to indemnify NTELOS against any tax resulting from the Distribution to the extent that such tax resulted from any of the following events (among others): (1) an acquisition of all or a portion of our stock or assets, whether by merger or otherwise, (2) any negotiations, understandings, agreements or arrangements with respect to transactions or events that cause the Distribution to be treated as part of a plan pursuant to which one or more persons acquire, directly or indirectly, stock representing a 50% or greater interest in Lumos Networks, (3) certain other actions or failures to act by the Company, or (4) any breach by the Company of certain of its representations or undertakings. The Company’s indemnification obligations to NTELOS and its subsidiaries, officers and directors are not limited by any maximum amount. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Related Party Transactions [Abstract] | ' | |||
Related Party Transactions | ' | |||
Note 14. Related Party Transactions | ||||
Prior to the Business Separation on October 31, 2011, NTELOS Inc. provided a variety of administrative services to Lumos Networks. Costs of these services were allocated or charged to the Company based on either the actual costs incurred or NTELOS Inc.’s estimate of expenses relative to the services provided to other subsidiaries of NTELOS Inc. The Company believes that these allocations were made on a reasonable basis, and that receiving these services from NTELOS Inc. created cost efficiencies. Lumos Networks management believes that all historical costs of operations have been reflected in the consolidated statements of operations for each period presented, but these costs do not reflect the amount of actual costs the Company would have incurred had it been an independent, publicly traded company prior to October 31, 2011. These services and transactions included the following: | ||||
· | Cash management and other treasury services; | |||
· | Administrative services such as legal, regulatory, tax, employee benefit administration, internal audit, purchasing, accounting, information technology and human resources; | |||
· | Network monitoring; | |||
· | Executive oversight; | |||
· | Equity-based compensation plan administration; and | |||
· | Insurance coverage. | |||
The amount of interest expense charged to the Company from NTELOS for borrowings accumulated through shared banking and treasury services for the period January 1, 2011 through October 31, 2011 was $9.5 million, which is included in interest expense on the consolidated statement of operations for that period. | ||||
Total general and administrative expenses allocated to the Company were $7.3 million, included in its consolidated statements of operations for the period January 1, 2011 through October 31, 2011, inclusive of certain corporate expenses which had not previously been allocated. | ||||
Total equity-based compensation expense related to all of the share-based awards granted to employees of Lumos Networks and allocated from NTELOS Inc. and NTELOS Inc.’s 401(k) matching contributions for employees of Lumos Networks totaled $2.4 million for the year ended December 31, 2011. | ||||
Schedule_II_Valuation_And_Qual
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||
Schedule II - Valuation And Qualifying Accounts | ' | ||||||||||||||
Schedule II – Valuation and Qualifying Accounts | |||||||||||||||
Lumos Networks Corp. | |||||||||||||||
Additions | |||||||||||||||
(In thousands) | Balance at Beginning of Year | Charged to Expense | Charged to Other Accounts | Deductions | Balance at End of Year | ||||||||||
Description | |||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||
Allowance for doubtful accounts | $ | 1,822 | $ | 249 | $ | 346 | $ | -932 | $ | 1,485 | |||||
Year Ended December 31, 2012: | |||||||||||||||
Allowance for doubtful accounts | $ | 2,822 | $ | 523 | $ | 368 | $ | -1,891 | $ | 1,822 | |||||
Year Ended December 31, 2011: | |||||||||||||||
Allowance for doubtful accounts | $ | 2,117 | $ | 316 | $ | 821 | $ | -432 | $ | 2,822 | |||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||||
Principles Of Consolidation | ' | |||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, and all of Lumos Networks Operating Company’s wholly-owned subsidiaries and those limited liability corporations where Lumos Networks Operating Company or certain of its subsidiaries, as managing member, exercised control. All significant intercompany accounts and transactions have been eliminated. | ||||||||||||||
For the period January 1, 2011 through October 31, 2011, the consolidated financial statements principally represent the financial results reflected by NTELOS constituting the companies comprising the wireline segment. These financial results have been adjusted to reflect certain corporate expenses which were not previously allocated to the segments. These allocations primarily represent corporate support functions, including but not limited to accounting, human resources, information technology and executive management, as well as corporate legal and professional fees, including audit fees, and equity-based compensation expense related to equity-based awards granted to employees in corporate support functions and executive management. These additional expenses for the ten months ended October 31, 2011 were $2.6 million. The Company believes that these costs would not have been materially different had they been calculated on a standalone basis. However, such costs are not indicative of the actual level of expense and exclude certain expenses that would have been incurred by the Company if it had operated as an independent, publicly traded company nor are they comparable to the expenses incurred in 2012 or 2013. | ||||||||||||||
Beginning in 2013, the Company revised the presentation of current deferred tax assets in its consolidated balance sheet and made conforming changes to the presentation of deferred tax assets in the consolidated balance sheet as of December 31, 2012. These changes did not have a material impact on the Company’s consolidated financial condition for any period presented. | ||||||||||||||
Accounting Estimates | ' | |||||||||||||
Accounting Estimates | ||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the valuation of interest rate swap derivatives, deferred tax assets, marketable securities, asset retirement obligations and equity-based compensation; goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. | ||||||||||||||
Revenue Recognition | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
The Company recognizes revenue when services are rendered or when products are delivered, installed and functional, as applicable. Certain services of the Company require payment in advance of service performance. In such cases, the Company records a service liability at the time of billing and subsequently recognizes revenue ratably over the service period. The Company bills customers certain transactional taxes on service revenues. These transactional taxes are not included in reported revenues as they are recognized as liabilities at the time customers are billed. | ||||||||||||||
The Company earns revenue by providing services through access to and usage of its networks. Local service revenues are recognized as services are provided. Carrier data revenues are earned by providing switched access and other switched and dedicated services, including wireless roamer management, to other carriers. Revenues for equipment sales are recognized at the point of sale. | ||||||||||||||
The Company periodically makes claims for recovery of access charges on certain minutes of use terminated by the Company on behalf of other carriers. The Company recognizes revenue in the period when it is determined that the amounts can be estimated and collection is reasonably assured. | ||||||||||||||
Cash Equivalents And Marketable Securities | ' | |||||||||||||
Cash Equivalents and Marketable Securities | ||||||||||||||
The Company considers its investments in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company determines the appropriate classification of investment securities at the time of purchase and reevaluates this determination at the end of each reporting period. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of December 31, 2013. | ||||||||||||||
The Company previously utilized a swingline credit facility that it had with its primary commercial bank. This swingline facility was terminated in April 2013, concurrent with the closing of the Company’s debt refinancing (see Note 5). The Company had a book overdraft related to this master cash account of $1.8 million as of December 31, 2012, which amount was reclassified to accounts payable on the consolidated balance sheet. The Company classified the respective changes in the book overdraft amount in cash flows from operating activities on the consolidated statements of cash flows for the years ended December 31, 2013 and 2012. | ||||||||||||||
Restricted Cash | ' | |||||||||||||
Restricted Cash | ||||||||||||||
During 2010, the Company received a federal broadband stimulus award to bring broadband services and infrastructure to Alleghany County, Virginia. The total project is $16.1 million, of which 50% (approximately $8 million) is being funded by a grant from the federal government. The project is expected to be completed before September 30, 2015. The Company was required to deposit 100% of its portion for the grant (approximately $8 million) into a pledged account in advance of any reimbursements, which can be drawn down ratably following the grant reimbursement approvals which are contingent on adherence to the program requirements. The Company received $1.0 million, $2.3 million and $0.5 million in the years ended December 31, 2013, 2012 and 2011, respectively, for the reimbursable portion of the qualified recoverable expenditures to date. The Company has a $0.6 million receivable for the reimbursable portion of the qualified recoverable expenditures as of December 31, 2013. At December 31, 2013, the Company’s pledged account balance was $4.3 million. This escrow account is a non-interest bearing account with the Company’s primary commercial bank. | ||||||||||||||
Trade Accounts Receivable | ' | |||||||||||||
Trade Accounts Receivable | ||||||||||||||
The Company sells its services to other communication carriers and to business and residential customers primarily in Virginia and West Virginia and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company has credit and collection policies to maximize collection of trade receivables and requires deposits on certain sales. The Company maintains an allowance for doubtful accounts based on a review of specific customers with large receivable balances and for the remaining customer receivables the Company uses historical results, current and expected trends and changes in credit policies. Management believes the allowance adequately covers all anticipated losses with respect to trade receivables. Actual credit losses could differ from such estimates. The Company includes bad debt expense in selling, general and administrative expense in the consolidated statements of operations. Bad debt expense for the years ended December 31, 2013, 2012 and 2011 was $0.3 million, $0.6 million and $1.0 million, respectively. The Company’s allowance for doubtful accounts was $1.5 million and $1.8 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||
Property, Plant And Equipment And Other Long-Lived Assets (Excluding Goodwill And Indefinite-Lived Intangible Assets) | ' | |||||||||||||
Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) | ||||||||||||||
Property, plant and equipment, finite-lived intangible assets and long-term deferred charges are recorded at cost and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be evaluated pursuant to the subsequent measurement guidance described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35. Impairment is determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. | ||||||||||||||
The Company believes that no impairment indicators exist as of December 31, 2013 that would require it to perform impairment testing for long-lived assets, including property, plant and equipment, long-term deferred charges and finite-lived intangible assets to be held and used. | ||||||||||||||
In 2011, the Company determined that the fair value of certain assets owned by its RLECs, including property, plant and equipment and finite-lived intangible assets, was lower than the carrying value as a result of the revaluation of assets performed in connection with the Business Separation as of October 31, 2011. Accordingly, an impairment charge was recorded for $20.9 million ($12.7 million net of tax). | ||||||||||||||
Depreciation of property, plant and equipment is calculated on a straight-line basis over the estimated useful lives of the assets, which the Company reviews and updates based on historical experiences and future expectations. In 2012, the Company revised the useful lives of certain leasehold improvements as a result of the termination of a building lease and recognized accelerated depreciation costs of $1.4 million as a result of this change in estimate, which is included in depreciation and amortization expense for the year ended December 31, 2012. | ||||||||||||||
Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Amortization of assets held under capital leases, including certain software licenses, is included with depreciation expense. | ||||||||||||||
Intangibles with a finite life are classified as other intangibles on the consolidated balance sheets. At December 31, 2013 and 2012, other intangibles were comprised of the following: | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | Estimated Life | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||
Customer relationships | 3 to 15 yrs | $ | 103,153 | $ | -79,399 | $ | 103,153 | $ | -69,734 | |||||
Trademarks | 0.5 to 15 yrs | 3,518 | -2,201 | 3,518 | -2,042 | |||||||||
Non-compete agreement | 2 yrs | - | - | 1,100 | -1,100 | |||||||||
Total | $ | 106,671 | $ | -81,600 | $ | 107,771 | $ | -72,876 | ||||||
The Company amortizes its finite-lived intangible assets using the straight-line method unless it determines that another systematic method is more appropriate. The amortization for certain customer relationship intangibles is being recognized using an accelerated amortization method based on the pattern of estimated earnings from these assets. | ||||||||||||||
The estimated life of amortizable intangible assets is determined from the unique factors specific to each asset and the Company reviews and updates estimated lives based on current events and future expectations. The Company capitalizes costs incurred to renew or extend the term of a recognized intangible asset and amortizes such costs over the remaining life of the asset. No such costs were incurred during the years ended December 31, 2013 or 2012. Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $9.8 million, $11.1 million and $15.4 million, respectively. | ||||||||||||||
Amortization expense for the next five years is expected to be as follows: | ||||||||||||||
(In thousands) | Customer Relationships | Trademarks | Total | |||||||||||
2014 | $ | 9,028 | $ | 159 | $ | 9,187 | ||||||||
2015 | 4,648 | 159 | 4,807 | |||||||||||
2016 | 2,416 | 159 | 2,575 | |||||||||||
2017 | 2,097 | 159 | 2,256 | |||||||||||
2018 | 1,785 | 159 | 1,944 | |||||||||||
Goodwill And Indefinite-Lived Intangible Assets | ' | |||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill and franchise rights are considered to be indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but are instead tested for impairment annually or more frequently if an event indicates that the asset might be impaired. The Company’s policy is to assess the recoverability of indefinite-lived assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. | ||||||||||||||
The Company first considers whether to take a qualitative approach in determining whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test promulgated by FASB ASC Topic 350. If the Company determines that it is more likely than not that a reporting unit’s fair value is less than its carrying amount or if the Company elects to bypass the qualitative test for a specific period, the two-step process is used to test for goodwill impairment. Step one requires a determination of the fair value of each of the reporting units and, to the extent that the fair value of the reporting unit exceeds its carrying value (including goodwill), the step two calculation of implied fair value of goodwill is not required and no impairment loss is recognized. In testing for goodwill impairment, the Company utilizes a combination of a discounted cash flow model and a market approach that includes the use of comparable multiples of publicly traded companies whose services are comparable to ours. | ||||||||||||||
The Company restructured its operating segments in 2013 and, as a result, reassigned goodwill to the new reporting units using a relative fair value allocation approach. As of December 31, 2013, goodwill was attributed to the Company’s segments as follows: | ||||||||||||||
(In thousands) | December 31, 2013 | |||||||||||||
Strategic data | $ | 94,943 | ||||||||||||
Legacy voice | 2,612 | |||||||||||||
Access | 2,742 | |||||||||||||
Total goodwill | $ | 100,297 | ||||||||||||
As of October 1, 2013, the Company performed its annual goodwill impairment test. The Company elected to bypass the qualitative assessment due to the restructuring of its operating segments and applied step one of the quantitative test as described above. Based on the results of this annual impairment testing, the Company determined that the fair values of each of the strategic data, legacy voice and access reporting units substantially exceed their respective carrying amounts and that no impairment exists. | ||||||||||||||
The gross amount of goodwill was $133.7 million and the accumulated impairment loss was $33.4 million for a net carrying amount of $100.3 million as of December 31, 2013 and 2012. The Company recorded a goodwill impairment charge in 2011 of $33.4 million and fully impaired certain franchise rights through a corresponding charge of $32.0 million. There was no activity in the consolidated goodwill accounts for the years ended December 31, 2013 and 2012. | ||||||||||||||
Accounting For Asset Retirement Obligations | ' | |||||||||||||
Accounting for Asset Retirement Obligations | ||||||||||||||
An asset retirement obligation is evaluated and recorded as appropriate on assets for which the Company has a legal obligation to retire. The Company records a liability for an asset retirement obligation and the associated asset retirement cost at the time the underlying asset is acquired. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. | ||||||||||||||
The Company enters into various facility collocation agreements and is subject to locality franchise ordinances. The Company constructs assets at these locations and, in accordance with the terms of many of these agreements, the Company is obligated to restore the premises to their original condition at the conclusion of the agreements, generally at the demand of the other party to these agreements. The Company recognizes the fair value of a liability for an asset retirement obligation and capitalizes that cost as part of the cost basis of the related asset, depreciating it over the useful life of the related asset. | ||||||||||||||
Included in certain of the franchise ordinances under which the Company’s RLECs and CLECs operate are clauses that require the removal of the RLEC’s and CLEC’s equipment at the termination of the franchise agreement. The Company has not recognized an asset retirement obligation for these liabilities as the removal of the equipment is not estimable due to an indeterminable end date and the fact that the equipment is part of the public switched telephone network and it is not reasonable to assume the jurisdictions would require its removal. | ||||||||||||||
The following table indicates the changes to the Company’s asset retirement obligation liability, which is included in other long-term liabilities, for the years ended December 31, 2013 and 2012: | ||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||
Asset retirement obligations, beginning | $ | 1,236 | $ | 1,114 | ||||||||||
Additional asset retirement obligations recorded, net of | ||||||||||||||
adjustments in estimates | 61 | -2 | ||||||||||||
Accretion of asset retirement obligations | 104 | 124 | ||||||||||||
Asset retirement obligations, ending | $ | 1,401 | $ | 1,236 | ||||||||||
Deferred Financing Costs | ' | |||||||||||||
Deferred Financing Costs | ||||||||||||||
The Company defers debt issuance costs and amortizes them over the life of the related debt instrument using the effective interest method. The Company incurred additional debt issuance costs in connection with the April 2013 debt refinancing of $4.9 million and expensed unamortized debt issuance costs associated with the previous credit facility of $0.9 million (Note 5). | ||||||||||||||
Advertising Costs | ' | |||||||||||||
Advertising Costs | ||||||||||||||
The Company expenses advertising costs and marketing production costs as incurred (included within selling, general and administrative expenses in the consolidated statements of operations). Advertising expense for the years ended December 31, 2013, 2012 and 2011 was $0.8 million, $1.1 million and $0.9 million, respectively. | ||||||||||||||
Pension Benefits And Retirement Benefits Other Than Pensions | ' | |||||||||||||
Pension Benefits and Retirement Benefits Other Than Pensions | ||||||||||||||
The Company sponsors a non-contributory defined benefit pension plan (“Pension Plan”) covering all employees who meet eligibility requirements and were employed prior to October 1, 2003. Pension benefits vest after five years of plan service and are based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. The Company froze the Pension Plan effective December 31, 2012. As such, no further benefits will be accrued by participants for services rendered beyond that date. | ||||||||||||||
Sections 412 and 430 of the Internal Revenue Code and ERISA Sections 302 and 303 establish minimum funding requirements for defined benefit pension plans. The minimum required contribution is generally equal to the target normal cost plus the shortfall amortization installments for the current plan year and each of the six preceding plan years less any calculated credit balance. If plan assets (less calculated credits) are equal to or exceed the funding target, the minimum required contribution is the target normal cost reduced by the excess funding, but not below zero. The Company’s policy is to make contributions to stay at or above the threshold required in order to prevent benefit restrictions and related additional notice requirements and is intended to provide for benefits to be paid in the future. Also, Lumos Networks has nonqualified pension plans that are accounted for similar to its Pension Plan. | ||||||||||||||
The Company also provides certain health care and life insurance benefits for retired employees that meet eligibility requirements. The Company has two qualified nonpension postretirement benefit plans. The health care plan is contributory, with participants’ contributions adjusted annually. The life insurance plan is also contributory. These obligations, along with all of the pension plans and other post retirement benefit plans, are assumed by the Company. Eligibility for the life insurance plan is restricted to active pension participants age 50-64 as of January 5, 1994. Neither plan is eligible to employees hired after April 1993. The accounting for the plans anticipates that the Company will maintain a consistent level of cost sharing for the benefits with the retirees. The Company’s share of the projected costs of benefits that will be paid after retirement is generally being accrued by charges to expense over the eligible employees’ service periods to the dates they are fully eligible for benefits. | ||||||||||||||
The Company sponsors a contributory defined contribution plan under Internal Revenue Code Section 401(k) for substantially all employees. The Company’s policy is to match 100% of each participant’s annual contributions for contributions up to 1% of each participant’s annual compensation and 50% of each participant’s annual contributions up to an additional 5% of each participant’s annual compensation. Company contributions vest after two years of service. | ||||||||||||||
Operating Leases | ' | |||||||||||||
Operating Leases | ||||||||||||||
The Company has operating leases for administrative office space and equipment, certain of which have renewal options. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. The Company’s minimum lease term for most leases includes the initial non-cancelable term and at least one renewal period to the extent that the exercise of the related renewal option or options is reasonably assured. A renewal option or options is determined to be reasonably assured if failure to renew the leases imposes an in-substance economic penalty on the Company. Leasehold improvements are capitalized and depreciated over the shorter of the assets’ useful life or the lease term, including renewal option periods that are reasonably assured. | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ||||||||||||||
Deferred income taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. The Company accrues interest and penalties related to unrecognized tax benefits in interest expense and income tax expense, respectively. | ||||||||||||||
Equity-Based Compensation | ' | |||||||||||||
Equity-based Compensation | ||||||||||||||
The Company accounts for share-based employee compensation plans under FASB ASC 718, Stock Compensation. Equity-based compensation expense from share-based equity awards is recorded with an offsetting increase to additional paid-in capital on the consolidated balance sheet. For equity awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. | ||||||||||||||
The fair value of common stock options granted with service-only conditions is estimated at the respective measurement date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The fair value of restricted stock awards granted with service-only conditions is estimated based on the market value of the common stock on the date of grant reduced by the present value of expected dividends as applicable. Certain stock options and restricted shares granted by the Company contain vesting provisions that are conditional on achievement of a target market price for the Company’s common stock. The grant date fair value of these options and restricted shares was adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model (see Note 9). The Company initially recognizes the related compensation cost for these awards that contain a market condition on a straight-line basis over the requisite service period as derived from the valuation model. The Company accelerates expense recognition if the market conditions are achieved prior to the end of the derived requisite service period. | ||||||||||||||
Total equity-based compensation expense related to all of the share-based awards (Note 9), including the Company’s 401(k) matching contributions, was $6.8 million, $3.9 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively, which amounts are included in selling, general and administrative expenses in the consolidated statements of operations. | ||||||||||||||
Future charges for equity-based compensation related to instruments outstanding at December 31, 2013 for the years 2014 through 2018 are estimated to be $3.2 million, $2.2 million, $0.9 million, $0.5 million and $0.1 million, respectively. | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ||||||||||||||
Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value or for certain financial instruments for which disclosure of fair value is required, the Company uses fair value techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. | ||||||||||||||
GAAP establishes a fair value hierarchy with three levels of inputs that may be used to measure fair value: | ||||||||||||||
• | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||
• | Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. | |||||||||||||
• | Level 3 – Unobservable inputs for the asset or liability. | |||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, Reporting Amounts Reclassified out of Accumulated Other Comprehensive Income. This ASU requires entities to disclose the effect of the reclassification on each affected income statement line item of items reclassified out of accumulated other comprehensive income (AOCI) and into net income in their entirety. A cross reference to other required U.S. GAAP disclosures is required for AOCI reclassification items that are not reclassified in their entirety into net income. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company has complied with the requirements of this pronouncement by providing disclosure of the income statement line items affected by reclassifications out of other comprehensive income (loss) during the periods presented, which consist of reclassification adjustments for the amortization of actuarial losses on pension and other postretirement plans (see Note 11). | ||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||||
Finite-Lived Intangibles Assets | ' | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | Estimated Life | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||
Customer relationships | 3 to 15 yrs | $ | 103,153 | $ | -79,399 | $ | 103,153 | $ | -69,734 | |||||
Trademarks | 0.5 to 15 yrs | 3,518 | -2,201 | 3,518 | -2,042 | |||||||||
Non-compete agreement | 2 yrs | - | - | 1,100 | -1,100 | |||||||||
Total | $ | 106,671 | $ | -81,600 | $ | 107,771 | $ | -72,876 | ||||||
Schedule Of Future Amortization Expense | ' | |||||||||||||
(In thousands) | Customer Relationships | Trademarks | Total | |||||||||||
2014 | $ | 9,028 | $ | 159 | $ | 9,187 | ||||||||
2015 | 4,648 | 159 | 4,807 | |||||||||||
2016 | 2,416 | 159 | 2,575 | |||||||||||
2017 | 2,097 | 159 | 2,256 | |||||||||||
2018 | 1,785 | 159 | 1,944 | |||||||||||
Schedule Of Goodwill Attributed To Segments | ' | |||||||||||||
(In thousands) | December 31, 2013 | |||||||||||||
Strategic data | $ | 94,943 | ||||||||||||
Legacy voice | 2,612 | |||||||||||||
Access | 2,742 | |||||||||||||
Total goodwill | $ | 100,297 | ||||||||||||
Schedule Of Changes In Asset Retirement Obligations | ' | |||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||
Asset retirement obligations, beginning | $ | 1,236 | $ | 1,114 | ||||||||||
Additional asset retirement obligations recorded, net of | ||||||||||||||
adjustments in estimates | 61 | -2 | ||||||||||||
Accretion of asset retirement obligations | 104 | 124 | ||||||||||||
Asset retirement obligations, ending | $ | 1,401 | $ | 1,236 | ||||||||||
Cash_Equivalents_And_Marketabl1
Cash Equivalents And Marketable Securities (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Cash Equivalents And Marketable Securities [Abstract] | ' | ||
Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value | ' | ||
(In thousands) | 31-Dec-13 | ||
Cash equivalents: | |||
Money market mutual funds | $ | 267 | |
Corporate debt securities | 1,106 | ||
Total cash equivalents | 1,373 | ||
Marketable securities: | |||
Commercial paper | 7,746 | ||
Debt securities issued by U.S. Government agencies | 7,436 | ||
Corporate debt securities | 23,298 | ||
Total marketable securities, available-for-sale | 38,480 | ||
Total cash equivalents and marketable securities | $ | 39,853 | |
Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities | ' | ||
(In thousands) | Total | ||
Due in one year or less | $ | 22,519 | |
Due after one year through two years | 15,961 | ||
Total debt securities | $ | 38,480 | |
Disclosures_About_Segments_Of_1
Disclosures About Segments Of An Enterprise And Related Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ' | |||||||||||||||
Summarized Financial Information Of Reportable Segments | ' | |||||||||||||||
(In thousands) | Strategic | Legacy Voice | Access | Corporate (Unallocated) | Total | |||||||||||
Data | ||||||||||||||||
For the year ended December 31, 2013: | ||||||||||||||||
Operating revenues | $ | 121,333 | $ | 56,466 | $ | 29,676 | $ | - | $ | 207,475 | ||||||
Network access costs | 21,817 | 19,359 | 1,241 | - | 42,417 | |||||||||||
Network operating costs | 31,575 | 10,182 | 2,578 | - | 44,335 | |||||||||||
Selling, general and administrative expenses | 14,212 | 6,673 | 3,514 | 8,015 | 32,414 | |||||||||||
Adjusted EBITDA(1) | 53,729 | 20,252 | 22,343 | - | 96,324 | |||||||||||
Capital expenditures | 53,042 | 1,739 | 1,631 | 11,922 | 68,334 | |||||||||||
For the year ended December 31, 2012: | ||||||||||||||||
Operating revenues | $ | 109,010 | $ | 64,146 | $ | 33,715 | $ | - | $ | 206,871 | ||||||
Network access costs | 21,192 | 24,228 | 1,425 | - | 46,845 | |||||||||||
Network operating costs | 24,222 | 17,156 | 4,401 | - | 45,779 | |||||||||||
Selling, general and administrative expenses | 12,704 | 7,912 | 4,742 | 8,039 | 33,397 | |||||||||||
Adjusted EBITDA(1) | 50,892 | 14,850 | 23,147 | - | 88,889 | |||||||||||
Capital expenditures | 51,225 | 469 | 597 | 7,590 | 59,881 | |||||||||||
For the year ended December 31, 2011: | ||||||||||||||||
Operating revenues | $ | 93,549 | $ | 75,648 | $ | 38,217 | $ | - | $ | 207,414 | ||||||
Network access costs | 18,042 | 28,074 | 1,599 | - | 47,715 | |||||||||||
Network operating costs | 20,981 | 20,380 | 5,203 | - | 46,564 | |||||||||||
Selling, general and administrative expenses | 7,308 | 5,906 | 2,981 | 3,812 | 20,007 | |||||||||||
Adjusted EBITDA(1) | 47,218 | 21,288 | 28,434 | - | 96,940 | |||||||||||
Capital expenditures | 44,886 | 5,377 | 6,634 | 4,639 | 61,536 | |||||||||||
-1 | The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company’s reasons for using this non-GAAP financial measure. | |||||||||||||||
Reconcilliation Of Operating Income To Adjusted EBITDA | ' | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||
Operating income (loss) | $ | 45,835 | $ | 41,196 | $ | -36,373 | ||||||||||
Depreciation and amortization and accretion of asset | ||||||||||||||||
retirement obligations | 42,424 | 39,008 | 43,206 | |||||||||||||
Sub-total: | 88,259 | 80,204 | 6,833 | |||||||||||||
Asset impairment charges | - | - | 86,295 | |||||||||||||
Amortization of actuarial losses | 1,237 | 1,781 | - | |||||||||||||
Equity-based compensation | 6,778 | 3,912 | 2,383 | |||||||||||||
Employee separation charges (1) | - | 2,346 | - | |||||||||||||
Restructuring charges (2) | 50 | 2,981 | - | |||||||||||||
Business separation charges (3) | - | - | 1,358 | |||||||||||||
Acquisition-related charges | - | - | 71 | |||||||||||||
Gain on settlements, net (4) | - | -2,335 | - | |||||||||||||
Adjusted EBITDA | $ | 96,324 | $ | 88,889 | $ | 96,940 | ||||||||||
-1 | Employee separation charges include employee separation benefits which were provided for in the separation agreements of two executive officers who left the Company in 2012. These charges are included in selling, general and administrative expense on the consolidated statement of operations. | |||||||||||||||
-2 | In 2012, the Company completed a cost reduction plan involving an employee reduction-in-force, consolidation of certain facilities and freezing benefits under certain postretirement plans. Restructuring charges of $3.0 million were recognized in 2012 in connection with this plan (Note 12). | |||||||||||||||
-3 | Business Separation charges include audit, legal and other professional fees incurred during the period related to the Company’s separation from NTELOS Holdings Corp. into a separate publicly traded company (Note 1). These charges are included in selling, general and administrative expense on the statement of operations. | |||||||||||||||
The net pre-tax gain on settlements was recognized in 2012 in connection with the settlement of outstanding matters related to a prior acquisition and the settlement of an outstanding lawsuit (Note 13). | ||||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Long-Term Debt [Abstract] | ' | ||||||
Schedule Of Long-Term Debt | ' | ||||||
(In thousands) | 2013 | 2012 | |||||
Credit Facility | $ | 373,625 | $ | 311,022 | |||
Capital lease obligations | 6,353 | 1,203 | |||||
379,978 | 312,225 | ||||||
Less: current portion of long-term debt | 6,688 | 7,900 | |||||
$ | 373,290 | $ | 304,325 | ||||
Supplementary_Disclosures_Of_C1
Supplementary Disclosures Of Cash Flow Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Supplementary Disclosures Of Cash Flow Information [Abstract] | ' | |||||||||
Supplementary Disclosures Of Consolidated Statements Of Cash Flows | ' | |||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||
Cash payments for: | ||||||||||
Interest (net of amounts capitalized) | $ | 13,278 | $ | 11,972 | $ | 2,261 | ||||
Income taxes | 970 | 1,892 | 87 | |||||||
Supplemental investing and financing | ||||||||||
activities: | ||||||||||
Additions to property and equipment | ||||||||||
included in accounts payable and | ||||||||||
other accrued liabilities | 6,145 | 6,621 | 2,900 | |||||||
Borrowings under capital leases | 6,544 | 380 | 990 | |||||||
Dividends paid through increase in | ||||||||||
borrowings from NTELOS Inc. | - | - | 14,145 | |||||||
Dividend declared not paid | $ | 3,091 | $ | 3,013 | $ | 2,980 | ||||
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||||||
Summary Of Financial Assets And Liabilities Measured At Fair Value | ' | ||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||
Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 267 | $ | - | $ | - | $ | 267 | |||||
Corporate debt securities | - | 1,106 | - | 1,106 | |||||||||
Total cash equivalents | 267 | 1,106 | - | 1,373 | |||||||||
Marketable securities: | |||||||||||||
Commercial paper | - | 7,746 | - | 7,746 | |||||||||
Debt securities issued by U.S. Government agencies | - | 7,436 | - | 7,436 | |||||||||
Corporate debt securities | - | 23,298 | - | 23,298 | |||||||||
Total marketable securities | - | 38,480 | - | 38,480 | |||||||||
Total assets | $ | 267 | $ | 39,586 | $ | - | $ | 39,853 | |||||
Liabilities: | |||||||||||||
Interest rate swap derivatives | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
Total liabilities | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | ' | ||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
(In thousands) | Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | |||||||||
Credit Facility | $ | 373,625 | $ | 366,955 | $ | 311,022 | $ | 320,739 | |||||
Capital lease obligations | 6,353 | 6,353 | 1,203 | 1,203 | |||||||||
Stockholders_Equity_And_Earnin1
Stockholders' Equity And Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Stockholders' Equity And Earnings Per Share [Abstract] | ' | |||||||||
Schedule Of Computation Of Basic And Diluted Earnings Per Share | ' | |||||||||
(In thousands, except per share amounts) | 2013 | 2012 | Pro Forma 2011 | |||||||
(Unaudited) (1) | ||||||||||
Numerator: | ||||||||||
Net income attributable to Lumos Networks Corp. | $ | 17,773 | $ | 16,340 | $ | -43,930 | ||||
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | -425 | -331 | - | |||||||
Numerator for basic and diluted earnings per common share | 17,348 | 16,009 | -43,930 | |||||||
Denominator: | ||||||||||
Weighted average basic shares outstanding | 21,887 | 21,392 | 21,198 | |||||||
Less: weighted average participating securities and nonvested performance-based restricted shares | -579 | -434 | -384 | |||||||
Denominator for basic earnings per common share | 21,308 | 20,958 | 20,814 | |||||||
Plus: potentially dilutive restricted shares and stock options | 368 | 15 | - | |||||||
Denominator for diluted earnings per common share | 21,676 | 20,973 | 20,814 | |||||||
Basic earnings per share | $ | 0.81 | $ | 0.78 | $ | -2.11 | ||||
Diluted earnings per share | $ | 0.80 | $ | 0.76 | $ | -2.11 | ||||
-1 | Basic and diluted loss per share for the year ended December 31, 2011 is computed on a pro forma basis by dividing net loss by the weighted average number of common shares outstanding during the two month post-Business Separation period beginning November 1, 2011 and ending December 31, 2011, as if such shares had been outstanding for the entire year. | |||||||||
Stock_Plans_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock Plans [Abstract] | ' | ||||||||||
Schedule Of Valuation Assumptions | ' | ||||||||||
Year Ended | Year Ended | 1-Nov-11 | |||||||||
31-Dec-13 | 31-Dec-12 | through | |||||||||
31-Dec-11 | |||||||||||
Risk-free interest rate | 1.34% | 1.40% | 1.55% | ||||||||
Expected volatility | 44.19% | 43.42% | 34.70% | ||||||||
Expected dividend yield | 4.70% | 5.77% | 3.10% | ||||||||
Expected term | 6.6 years | 7 years | 7 years | ||||||||
Summary Of Stock Options Activity | ' | ||||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||
Stock options outstanding at December 31, 2012 | 1,714 | $ | 12.29 | 7.6 years | $ | 1,002 | |||||
Granted during the period | 772 | 12.18 | |||||||||
Exercised during the period | -97 | 11.47 | |||||||||
Forfeited during the period | -30 | 12.08 | |||||||||
Expired during the period | -93 | 14.88 | |||||||||
Stock options outstanding at December 31, 2013 | 2,266 | $ | 12.19 | 7.7 years | $ | 20,019 | |||||
Stock options exercisable at December 31, 2013 | 1,269 | $ | 12.58 | 6.9 years | $ | 10,737 | |||||
Total stock options outstanding, vested and expected to vest | |||||||||||
at December 31, 2013 | 2,170 | $ | 12.24 | $ | 19,056 | ||||||
Summary Of Restricted Stock Awards Activity | ' | ||||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Grant Date Fair Value per Share | |||||||||
Restricted stock outstanding at December 31, 2012 | 342 | $ | 11.67 | ||||||||
Granted during the period | 509 | 11.93 | |||||||||
Vested during the period | -252 | 11.59 | |||||||||
Forfeited during the period | -39 | 11.90 | |||||||||
Restricted stock outstanding at December 31, 2013 | 560 | $ | 11.93 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Taxes [Abstract] | ' | |||||||||
Schedule Of Components Of Income Tax Expense (Benefit) | ' | |||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||
Current tax expense: | ||||||||||
Federal | $ | - | $ | - | $ | - | ||||
State | 516 | 496 | 3,727 | |||||||
Total current tax expense | 516 | 496 | 3,727 | |||||||
Deferred tax expense (benefit): | ||||||||||
Federal | 10,102 | 8,982 | -3,657 | |||||||
State | 1,401 | 1,532 | -4,453 | |||||||
Total deferred tax expense (benefit) | 11,503 | 10,514 | -8,110 | |||||||
Total income tax expense (benefit) | $ | 12,019 | $ | 11,010 | $ | -4,383 | ||||
Schedule Of Effective Income Tax Rate Reconciliation | ' | |||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||
Computed tax expense (benefit) at federal statutory | ||||||||||
rate of 35% | $ | 10,470 | $ | 9,610 | $ | -16,891 | ||||
Nondeductible goodwill impairment charge | - | - | 11,703 | |||||||
Nondeductible compensation | 307 | 91 | 637 | |||||||
Noncontrolling interests | -50 | -37 | 18 | |||||||
Nondeductible public offering costs | 285 | - | - | |||||||
State income taxes, net of federal income | ||||||||||
tax impact | 1,246 | 1,318 | -472 | |||||||
Other, net | -239 | 28 | 622 | |||||||
Total income tax expense (benefit) | $ | 12,019 | $ | 11,010 | $ | -4,383 | ||||
Schedule Of Net Deferred Tax Assets And Liabilities | ' | |||||||||
(In thousands) | 2013 | 2012 | ||||||||
Deferred income tax assets: | ||||||||||
Retirement benefits other than pension | $ | 6,909 | $ | 5,053 | ||||||
Pension and related plans | - | 6,228 | ||||||||
Net operating loss | 6,200 | 4,346 | ||||||||
Accrued expenses | 4,480 | 4,146 | ||||||||
Other | 170 | 1,379 | ||||||||
Total deferred income tax assets | 17,759 | 21,152 | ||||||||
Deferred income tax liabilities: | ||||||||||
Property and equipment | -82,040 | -67,493 | ||||||||
Intangibles | -7,271 | -9,615 | ||||||||
Pension and related plans | -246 | - | ||||||||
Total deferred income tax liabilities | -89,557 | -77,108 | ||||||||
Net deferred income tax liability | $ | -71,798 | $ | -55,956 | ||||||
Balance sheet classification of deferred income taxes: | ||||||||||
Net current deferred income tax asset | $ | 7,289 | $ | 3,357 | ||||||
Net non-current deferred income tax liability | -79,087 | -59,313 | ||||||||
Net deferred income tax liability | $ | -71,798 | $ | -55,956 | ||||||
Reconciliation Of Change In Unrecognized Income Tax Benefits | ' | |||||||||
(In thousands) | 2013 | 2012 | ||||||||
Balance at beginning of year | $ | 609 | $ | 484 | ||||||
Additions for tax positions related to the current year | 291 | 82 | ||||||||
Increases for tax positions related to prior years | 554 | 43 | ||||||||
Statute of limitations expiration | -329 | - | ||||||||
Balance at end of year | $ | 1,125 | $ | 609 | ||||||
Pension_Plans_And_Other_Postre1
Pension Plans And Other Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Pension Plans And Other Postretirement Benefits [Abstract] | ' | |||||||||||||||||||
Schedule Of Defined Benefit Plan Disclosures | ' | |||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
(In thousands) | Year Ended | Year Ended | 1-Nov-11 | Year Ended | Year Ended | 1-Nov-11 | ||||||||||||||
December 31, 2013 | December 31, 2012 | to December 31, 2011 | December 31, 2013 | December 31, 2012 | to December 31, 2011 | |||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||
Benefit obligations, beginning of period | $ | 64,511 | $ | 64,061 | $ | 60,181 | $ | 12,874 | $ | 12,511 | $ | 12,157 | ||||||||
Service cost | - | 2,043 | 312 | 91 | 78 | 12 | ||||||||||||||
Interest cost | 2,432 | 2,698 | 451 | 485 | 525 | 91 | ||||||||||||||
Actuarial (gain) loss | -7,199 | 5,942 | 3,528 | 26 | 201 | 318 | ||||||||||||||
Benefits paid, net | -2,756 | -2,475 | -411 | -676 | -441 | -67 | ||||||||||||||
Curtailment gain | - | -8,519 | - | - | - | - | ||||||||||||||
Transfer | 221 | 761 | - | - | - | - | ||||||||||||||
Benefit obligations, end of period | 57,209 | 64,511 | 64,061 | 12,800 | 12,874 | 12,511 | ||||||||||||||
Change in plan assets: | ||||||||||||||||||||
Fair value of plan assets, beginning of period | 51,675 | 45,109 | 45,531 | - | - | - | ||||||||||||||
Actual return on plan assets | 8,897 | 6,610 | -11 | - | - | - | ||||||||||||||
Employer contributions | - | 2,000 | - | 676 | 441 | 67 | ||||||||||||||
Benefits paid | -2,812 | -2,492 | -411 | -676 | -441 | -67 | ||||||||||||||
Transfer | 87 | 448 | - | - | - | - | ||||||||||||||
Fair value of plan assets, end of period | 57,847 | 51,675 | 45,109 | - | - | - | ||||||||||||||
Funded status: | ||||||||||||||||||||
Non-current asset | -638 | - | - | - | - | - | ||||||||||||||
Current liabilities | - | - | - | 671 | 553 | 603 | ||||||||||||||
Non-current liabilities | - | 12,836 | 18,952 | 12,129 | 12,321 | 11,908 | ||||||||||||||
Funded status recognized in the consolidated balance sheets | $ | -638 | $ | 12,836 | $ | 18,952 | $ | 12,800 | $ | 12,874 | $ | 12,511 | ||||||||
Amounts recognized in accumulated other comprehensive loss: | ||||||||||||||||||||
Net actuarial loss | -3,711 | -16,778 | -23,630 | -1,211 | -1,480 | -1,279 | ||||||||||||||
Income taxes | 1,444 | 6,527 | 9,192 | 471 | 576 | 498 | ||||||||||||||
Net amount recognized in accumulated other comprehensive loss | $ | -2,267 | $ | -10,251 | $ | -14,438 | $ | -740 | $ | -904 | $ | -781 | ||||||||
Schedule Of Net Periodic (Benefit) Expense | ' | |||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
(In thousands) | Year Ended | Year Ended | 1-Nov-11 | Year Ended | Year Ended | 1-Nov-11 | ||||||||||||||
December 31, 2013 | December 31, 2012 | to December 31, 2011 | December 31, 2013 | 31-Dec-12 | to December 31, 2011 | |||||||||||||||
Components of net periodic (benefit) expense: | ||||||||||||||||||||
Service cost | $ | - | $ | 2,043 | $ | 312 | $ | 91 | $ | 78 | $ | 12 | ||||||||
Interest cost | 2,432 | 2,698 | 451 | 485 | 525 | 91 | ||||||||||||||
Expected return on plan assets | -3,901 | -3,517 | -571 | - | - | - | ||||||||||||||
Amortization of loss | 918 | 1,481 | 197 | 28 | - | - | ||||||||||||||
Net periodic (benefit) expense | $ | -551 | $ | 2,705 | $ | 389 | $ | 604 | $ | 603 | $ | 103 | ||||||||
Schedule Of Assumptions Used | ' | |||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | 31-Dec-13 | December 31, 2012 | |||||||||||||||||
Discount rate | 4.70 | % | 3.85 | % | 4.70 | % | 3.85 | % | ||||||||||||
Rate of compensation increase | N/A | 3.00 | % | N/A | N/A | |||||||||||||||
The assumptions used in the measurements of the Company’s net income or expense for the consolidated statement of operations for the years ended December 31, 2013 and 2012 and for the period November 1, 2011 through December 31, 2011 are as follows: | ||||||||||||||||||||
Defined Benefit Pension Plan | Other Postretirement Benefit Plans | |||||||||||||||||||
Year Ended | Year Ended December 31, 2012 | 1-Nov-11 | Year Ended | Year Ended December 31, 2012 | 1-Nov-11 | |||||||||||||||
December 31, 2013 | to December 31, 2011 | December 31, 2013 | to December 31, 2011 | |||||||||||||||||
Discount rate | 3.85 | % | 4.30 | % | 4.60 | % | 3.85 | % | 4.30 | % | 4.60 | % | ||||||||
Expected return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||||
Rate of compensation increase | N/A | 3.00 | % | 3.00 | % | N/A | N/A | N/A | ||||||||||||
Schedule Of Plan Asset Allocation | ' | |||||||||||||||||||
(Dollars in thousands) | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||
Asset Category | Actual Allocation | Fair Value | Actual Allocation | Fair Value | ||||||||||||||||
Large Cap Value | 23 | % | $ | 13,202 | 32 | % | $ | 16,395 | ||||||||||||
Large Cap Blend | 11 | % | 6,558 | 16 | % | 8,169 | ||||||||||||||
Mid Cap Blend | 6 | % | 3,559 | 6 | % | 3,149 | ||||||||||||||
Small Cap Blend | 4 | % | 2,384 | 4 | % | 2,134 | ||||||||||||||
Foreign Stock - Large Cap | 7 | % | 4,069 | 7 | % | 3,696 | ||||||||||||||
Bond | 34 | % | 19,559 | 32 | % | 16,405 | ||||||||||||||
Cash and cash equivalents | 15 | % | 8,516 | 3 | % | 1,727 | ||||||||||||||
Total | 100 | % | $ | 57,847 | 100 | % | $ | 51,675 | ||||||||||||
The actual and target allocation for plan assets is broadly defined and measured as follows: | ||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
Asset Category | Actual Allocation | Target Allocation | Actual and Target Allocation | |||||||||||||||||
Equity securities | 49 | % | 50 | % | 65 | % | ||||||||||||||
Bond securities and cash equivalents | 51 | % | 50 | % | 35 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||
Schedule Of Expected Future Pension Benefit Payments | ' | |||||||||||||||||||
(In thousands) | Defined Benefit Pension Plan | Other Postretirement Benefit Plans | ||||||||||||||||||
Year | ||||||||||||||||||||
2014 | $ | 2,838 | $ | 671 | ||||||||||||||||
2015 | 2,894 | 667 | ||||||||||||||||||
2016 | 2,927 | 680 | ||||||||||||||||||
2017 | 2,981 | 690 | ||||||||||||||||||
2018 | 3,004 | 700 | ||||||||||||||||||
2019-2023 | 16,168 | 3,618 | ||||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Restructuring Charges [Abstract] | ' | |||||||||
Summary Of Restucturing Liability Balance | ' | |||||||||
(In thousands) | Employee Severance and Termination Benefits | Lease Termination Costs | Total | |||||||
Beginning balance at December 31, 2011 | $ | - | $ | - | $ | - | ||||
Additions | 2,387 | 594 | 2,981 | |||||||
Payments | - | -290 | -290 | |||||||
Ending balance at December 31, 2012 | $ | 2,387 | $ | 304 | $ | 2,691 | ||||
Additions | 10 | 40 | 50 | |||||||
Payments | -2,397 | -344 | -2,741 | |||||||
Ending balance at December 31, 2013 | $ | - | $ | - | $ | - | ||||
Organization_Details
Organization (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Nov. 20, 2013 | Nov. 19, 2013 | Dec. 31, 2012 |
Organization [Abstract] | ' | ' | ' | ' | ' |
Reverse stock split, description | '1-for-2 | ' | ' | ' | ' |
Reverse stock split, ratio | 0.5 | ' | ' | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | ' | $0.01 |
Common stock sold by Quadrangle in secondary offering, shares | ' | ' | 2,888,939 | ' | ' |
Price of common stock sold by Quadrangle in secondary offering, per share | ' | ' | $20 | ' | ' |
Quadrangle's percentage of ownership in company | ' | ' | 13.00% | 26.00% | ' |
Other nonoperating costs | ' | ' | $0.80 | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies (Narrative) (Details) (USD $) | 10 Months Ended | 12 Months Ended | |||||
Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | |
Broadband Services Project Due 2015 [Member] | First Portion Match [Member] | Second Portion Match [Member] | |||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Corporate expenses | $2,600,000 | ' | ' | ' | ' | ' | ' |
Book overdraft reclassified | ' | ' | 1,800,000 | ' | ' | ' | ' |
Total project cost | ' | ' | ' | ' | 16,100,000 | ' | ' |
Percentage funded by federal government grants | ' | ' | ' | ' | 50.00% | ' | ' |
Federal government grants | ' | ' | ' | ' | 8,000,000 | ' | ' |
Percentage of deposits | ' | ' | ' | ' | 100.00% | ' | ' |
Portion of grants deposited into pledged account | ' | ' | ' | ' | 8,000,000 | ' | ' |
Cash reimbursement received from government grant | ' | 979,000 | 2,251,000 | 508,000 | ' | ' | ' |
Restricted cash reimbursement receivable | ' | 600,000 | ' | ' | ' | ' | ' |
Restricted cash | ' | 4,324,000 | 5,303,000 | ' | ' | ' | ' |
Bad debt expenses | ' | 300,000 | 600,000 | 1,000,000 | ' | ' | ' |
Accounts receivable, allowance | ' | 1,485,000 | 1,822,000 | ' | ' | ' | ' |
Asset impairment charge other than goodwill | ' | ' | ' | 20,900,000 | ' | ' | ' |
Asset impairment charge other than goodwill, net of tax | ' | ' | ' | 12,700,000 | ' | ' | ' |
Accelerated depreciation costs recorded as a result of a change in estimate | ' | ' | 1,400,000 | ' | ' | ' | ' |
Amortization expense | ' | 9,824,000 | 11,134,000 | 15,387,000 | ' | ' | ' |
Gross goodwill | ' | 133,700,000 | 133,700,000 | ' | ' | ' | ' |
Accumulated impairment loss | ' | 33,400,000 | 33,400,000 | ' | ' | ' | ' |
Goodwill, net carrying amount | ' | 100,297,000 | 100,297,000 | ' | ' | ' | ' |
Goodwill impairment charge | ' | 0 | 0 | 33,400,000 | ' | ' | ' |
Franchise rights impairment charge | ' | ' | ' | 32,000,000 | ' | ' | ' |
Debt issuance costs | ' | 4,872,000 | ' | 4,854,000 | ' | ' | ' |
Unamortized debt issuance costs | ' | 890,000 | ' | ' | ' | ' | ' |
Advertising expense | ' | 800,000 | 1,100,000 | 900,000 | ' | ' | ' |
Pension benefit vesting period, years | ' | '5 years | ' | ' | ' | ' | ' |
Number of highest consecutive years of compensation subject to certain reductions | ' | '5 years | ' | ' | ' | ' | ' |
Maximum retirement age reached to be subject to reductions, years | ' | '65 years | ' | ' | ' | ' | ' |
Employer's percentage match of employee's match percentage | ' | ' | ' | ' | ' | 100.00% | 50.00% |
Percentage of employee's gross pay that is matched by the employer | ' | ' | ' | ' | ' | 1.00% | 5.00% |
Contribution vesting period | ' | '2 years | ' | ' | ' | ' | ' |
Equity-based compensation expense | ' | 6,778,000 | 3,912,000 | 2,383,000 | ' | ' | ' |
Future charges for equity-based compensation, 2014 | ' | 3,200,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2015 | ' | 2,200,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2016 | ' | 900,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2017 | ' | 500,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2018 | ' | $100,000 | ' | ' | ' | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Finite-Lived Intangibles Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | $106,671 | $107,771 |
Accumulated Amortization | -81,600 | -72,876 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | 103,153 | 103,153 |
Accumulated Amortization | -79,399 | -69,734 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross amount | 3,518 | 3,518 |
Accumulated Amortization | -2,201 | -2,042 |
Non-Compete Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated life | '2 years | ' |
Gross amount | ' | 1,100 |
Accumulated Amortization | ' | ($1,100) |
Minimum [Member] | Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated life | '3 years | ' |
Minimum [Member] | Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated life | '6 months | ' |
Maximum [Member] | Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated life | '15 years | ' |
Maximum [Member] | Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated life | '15 years | ' |
Significant_Accounting_Policie5
Significant Accounting Policies (Schedule Of Future Amortization Expense) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | ' |
2014 | $9,187 |
2015 | 4,807 |
2016 | 2,575 |
2017 | 2,256 |
2018 | 1,944 |
Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
2014 | 9,028 |
2015 | 4,648 |
2016 | 2,416 |
2017 | 2,097 |
2018 | 1,785 |
Trademarks [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
2014 | 159 |
2015 | 159 |
2016 | 159 |
2017 | 159 |
2018 | $159 |
Significant_Accounting_Policie6
Significant Accounting Policies (Schedule Of Goodwill Attributed To Segments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Total goodwill | $100,297 | $100,297 |
Strategic Data [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Total goodwill | 94,943 | ' |
Legacy Voice [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Total goodwill | 2,612 | ' |
Access [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Total goodwill | $2,742 | ' |
Significant_Accounting_Policie7
Significant Accounting Policies (Schedule Of Changes In Asset Retirement Obligations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Accounting Policies [Abstract] | ' | ' | ' |
Asset retirement obligations, beginning | $1,236 | $1,114 | ' |
Additional asset retirement obligations recorded, net of adjustments in estimates | 61 | -2 | ' |
Accretion of asset retirement obligations | 104 | 124 | 116 |
Asset retirement obligations, ending | $1,401 | $1,236 | $1,114 |
Cash_Equivalents_And_Marketabl2
Cash Equivalents And Marketable Securities (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash equivalents and marketable securities | $39,853,000 | $0 |
Net realized gains or losses on available-for-sale securities | 0 | ' |
Maximum [Member] | ' | ' |
Net unrealized holding gains on available-for-sale securities | $100,000 | ' |
Cash_Equivalents_And_Marketabl3
Cash Equivalents And Marketable Securities (Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total cash equivalents | $1,373,000 | ' |
Total marketable securities, available-for-sale | 38,480,000 | ' |
Total cash equivalents and marketable securities | 39,853,000 | 0 |
Money Market Mutual Funds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total cash equivalents | 267,000 | ' |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total cash equivalents | 1,106,000 | ' |
Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | 7,746,000 | ' |
Debt Securities Issued By U.S. Government Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | 7,436,000 | ' |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | $23,298,000 | ' |
Cash_Equivalents_And_Marketabl4
Cash Equivalents And Marketable Securities (Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Cash Equivalents And Marketable Securities [Abstract] | ' |
Due in one year or less | $22,519 |
Due after one year through two years | 15,961 |
Total debt securities | $38,480 |
Disclosures_About_Segments_Of_2
Disclosures About Segments Of An Enterprise And Related Information (Narrative) (Details) (Verizon [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Verizon [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage to total revenue | 10.00% | 10.00% | 9.00% |
Disclosures_About_Segments_Of_3
Disclosures About Segments Of An Enterprise And Related Information (Summarized Financial Information Of Reportable Segments) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Operating revenues | $207,475 | $206,871 | $207,414 | |||
Network access costs | 42,417 | 46,845 | 47,715 | |||
Network operating costs | 44,335 | 45,779 | 46,564 | |||
Selling, general and administrative expenses | 32,414 | 33,397 | 20,007 | |||
Adjusted EBITDA | 96,324 | [1] | 88,889 | [1] | 96,940 | [1] |
Capital expenditures | 68,334 | 59,881 | 61,536 | |||
Strategic Data [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Operating revenues | 121,333 | 109,010 | 93,549 | |||
Network access costs | 21,817 | 21,192 | 18,042 | |||
Network operating costs | 31,575 | 24,222 | 20,981 | |||
Selling, general and administrative expenses | 14,212 | 12,704 | 7,308 | |||
Adjusted EBITDA | 53,729 | [1] | 50,892 | [1] | 47,218 | [1] |
Capital expenditures | 53,042 | 51,225 | 44,886 | |||
Legacy Voice [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Operating revenues | 56,466 | 64,146 | 75,648 | |||
Network access costs | 19,359 | 24,228 | 28,074 | |||
Network operating costs | 10,182 | 17,156 | 20,380 | |||
Selling, general and administrative expenses | 6,673 | 7,912 | 5,906 | |||
Adjusted EBITDA | 20,252 | [1] | 14,850 | [1] | 21,288 | [1] |
Capital expenditures | 1,739 | 469 | 5,377 | |||
Access [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Operating revenues | 29,676 | 33,715 | 38,217 | |||
Network access costs | 1,241 | 1,425 | 1,599 | |||
Network operating costs | 2,578 | 4,401 | 5,203 | |||
Selling, general and administrative expenses | 3,514 | 4,742 | 2,981 | |||
Adjusted EBITDA | 22,343 | [1] | 23,147 | [1] | 28,434 | [1] |
Capital expenditures | 1,631 | 597 | 6,634 | |||
Corporate (Unallocated) [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Selling, general and administrative expenses | 8,015 | 8,039 | 3,812 | |||
Capital expenditures | $11,922 | $7,590 | $4,639 | |||
[1] | The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Managementbs Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Companybs reasons for using this non-GAAP financial measure. |
Disclosures_About_Segments_Of_4
Disclosures About Segments Of An Enterprise And Related Information (Reconciliation Of Operating Income To Adjusted EBITDA) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ' | ' | ' | |||
Operating Income (Loss) | $45,835 | $41,196 | ($36,373) | |||
Depreciation and amortization and accretion of asset retirement obligations | 42,424 | 39,008 | 43,206 | |||
Sub-total | 88,259 | 80,204 | 6,833 | |||
Asset impairment charges | ' | ' | 86,295 | |||
Amortization of actuarial losses | 1,237 | 1,781 | ' | |||
Equity-based compensation | 6,778 | 3,912 | 2,383 | |||
Employee separation charges | ' | 2,346 | [1] | ' | ||
Restructuring charges | 50 | [2] | 2,981 | [2] | ' | |
Business separation charges | ' | ' | 1,358 | [3] | ||
Acquisition-related charges | ' | ' | 71 | |||
Gain on settlements, net | ' | -2,335 | [4] | ' | ||
Adjusted EBITDA | $96,324 | [5] | $88,889 | [5] | $96,940 | [5] |
[1] | Employee separation charges include employee separation benefits which were provided for in the separation agreements of two executive officers who left the Company in 2012. These charges are included in selling, general and administrative expense on the consolidated statement of operations | |||||
[2] | In 2012, the Company completed a cost reduction plan involving an employee reduction-in-force, consolidation of certain facilities and freezing benefits under certain postretirement plans. Restructuring charges of $3.0 million were recognized in 2012 in connection with this plan (Note 12). | |||||
[3] | Business Separation charges include audit, legal and other professional fees incurred during the period related to the Companybs separation from NTELOS Holdings Corp. into a separate publicly traded company (Note 1). These charges are included in selling, general and administrative expense on the statement of operations. | |||||
[4] | The net pre-tax gain on settlements was recognized in 2012 in connection with the settlement of outstanding matters related to a prior acquisition and the settlement of an outstanding lawsuit (Note 13). | |||||
[5] | The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Managementbs Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Companybs reasons for using this non-GAAP financial measure. |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 01, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
item | Subsequent Event [Member] | Through December 31, 2013 [Member] | January 1, 2014 Through December 31, 2014 [Member] | January 1, 2015 Through December 31, 2015 [Member] | After December 31, 2015 [Member] | Vehicles [Member] | Software Licenses [Member] | Senior Secured Five Year Amortizing Term Loan [Member] | Senior Secured Six Year Amortizing Term Loan [Member] | Revolver [Member] | Revolver [Member] | Term Loan A [Member] | Term Loan A [Member] | Term Loan A [Member] | Term Loan B [Member] | Term Loan B [Member] | Term Loan A And B [Member] | Term Loan A And B [Member] | Minimum [Member] | Maximum [Member] | ||||
item | item | item | item | September 30, 2014 Through December 31, 2016 [Member] | After December 31, 2016 [Member] | Beginning On September 30, 2013 [Member] | Vehicles [Member] | Vehicles [Member] | ||||||||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit borrowing capacity | $425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 275,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding retired | 311,000,000 | ' | ' | 315,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding, credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | 3.25% | ' | ' | 3.50% | ' | ' | ' | ' | ' |
Quarterly payments per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 2.50% | ' | 1.00% | ' | ' | ' | ' |
Line of credit, leverage ratio, maximum | ' | ' | ' | ' | ' | 4.75 | 4.5 | 4.25 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest coverage ratio, minimum | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, leverage ratio | ' | 3.94 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest coverage ratio | ' | 7.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, initial distributable amount | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount, increase each year | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount, increase each year, free cash flow | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount, increase | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate | ' | 0.50% | 0.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to terminate portion of interest rate swap agreement | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined notional amount of swap agreements percentage of aggregate outstanding balance of term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Notional amount remaining | ' | 186,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on interest rate derivatives | ' | -100,000 | -1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | ' | 4,872,000 | ' | 4,854,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance costs | ' | 890,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unamortized debt issuance costs | ' | 6,600,000 | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt issuance costs | ' | 1,300,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Patronage refunds percentage, cash | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Patronage refunds percentage, equity | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Patronage credits | ' | 1,300,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of long-term debt, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' |
Maturities of long-term debt, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' |
Maturities of long-term debt, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' |
Maturities of long-term debt, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,800,000 | ' | ' |
Maturities of long-term debt, 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,200,000 | ' | ' |
Maturities of long-term debt, thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 259,900,000 | ' | ' |
Blended average interest rate | ' | 3.97% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of capital leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years |
Capital leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2014 | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2015 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2016 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2017 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, thereafter | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_Of_Long
Long-Term Debt (Schedule Of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-Term Debt [Abstract] | ' | ' |
Credit facility | $373,625 | $311,022 |
Capital lease obligations | 6,353 | 1,203 |
Debt and capital lease obligations, Total | 379,978 | 312,225 |
Less: current portion of long term debt | 6,688 | 7,900 |
Long-term debt | $373,290 | $304,325 |
Supplementary_Disclosures_Of_C2
Supplementary Disclosures Of Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | ' | ' | ' |
Interest (net of amounts capitalized) | $13,278,000 | $11,972,000 | $2,261,000 |
Income taxes | 970,000 | 1,892,000 | 87,000 |
Additions to property and equipment included in accounts payable and other accrued liabilities | 6,145,000 | 6,621,000 | 2,900,000 |
Borrowings under capital leases | 6,544,000 | 380,000 | 990,000 |
Dividend paid through increase in borrowings from NTELOS Inc. | ' | ' | 14,145,000 |
Dividend declared not paid | 3,091,000 | 3,013,000 | 2,980,000 |
Cash received from patronage credits | 700,000 | 100,000 | ' |
Interest capitalized | $200,000 | $100,000 | $100,000 |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of Investment Holdings [Line Items] | ' | ' |
Long-term investments for which it is not practicable to estimate fair value | $0.70 | $0.50 |
CoBank [Member] | ' | ' |
Summary of Investment Holdings [Line Items] | ' | ' |
Long-term investments for which it is not practicable to estimate fair value | 0.6 | 0.4 |
Fair Value (Level 2) [Member] | ' | ' |
Summary of Investment Holdings [Line Items] | ' | ' |
Interest rate swap derivatives | ' | $1.90 |
Fair_Value_Of_Financial_Instru3
Fair Value Of Financial Instruments (Summary Of Financial Assets And Liabilities Measured At Fair Value) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | $1,373 |
Total marketable securities | 38,480 |
Total assets | 39,853 |
Total liabilities | 1,157 |
Interest Rate Swap Derivatives [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total liabilities | 1,157 |
Money Market Mutual Funds [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | 267 |
Commercial Paper [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total marketable securities | 7,746 |
Debt Securities Issued By U.S. Government Agencies [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total marketable securities | 7,436 |
Corporate Debt Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | 1,106 |
Total marketable securities | 23,298 |
Level 1 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | 267 |
Total assets | 267 |
Level 1 [Member] | Money Market Mutual Funds [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | 267 |
Level 2 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | 1,106 |
Total marketable securities | 38,480 |
Total assets | 39,586 |
Total liabilities | 1,157 |
Level 2 [Member] | Interest Rate Swap Derivatives [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total liabilities | 1,157 |
Level 2 [Member] | Commercial Paper [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total marketable securities | 7,746 |
Level 2 [Member] | Debt Securities Issued By U.S. Government Agencies [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total marketable securities | 7,436 |
Level 2 [Member] | Corporate Debt Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Total cash equivalents | 1,106 |
Total marketable securities | $23,298 |
Fair_Value_Of_Financial_Instru4
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Capital lease obligations | $6,353 | $1,203 |
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Credit Facility | 373,625 | 311,022 |
Capital lease obligations | 6,353 | 1,203 |
Fair Value (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Credit Facility | 366,955 | 320,739 |
Capital lease obligations | $6,353 | $1,203 |
Stockholders_Equity_And_Earnin2
Stockholders' Equity And Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders' Equity And Earnings Per Share [Line Items] | ' | ' | ' | ' |
Cash dividend declaration, date | 20-Feb-14 | ' | ' | ' |
Cash dividends declared, per share | $0.14 | $0.56 | $0.56 | $0.14 |
Dividend paid to stockholders, date | 10-Apr-14 | ' | ' | ' |
Dividend recorded, date | 13-Mar-14 | ' | ' | ' |
Excluded from computation of diluted earnings per common share | ' | ' | ' | 416,417 |
Stock Option [Member] | ' | ' | ' | ' |
Stockholders' Equity And Earnings Per Share [Line Items] | ' | ' | ' | ' |
Excluded from computation of diluted earnings per common share | ' | 310,933 | 1,546,900 | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Stockholders' Equity And Earnings Per Share [Line Items] | ' | ' | ' | ' |
Excluded from computation of diluted earnings per common share | ' | 20,100 | 45,324 | ' |
Stockholders_Equity_And_Earnin3
Stockholders' Equity And Earnings Per Share (Schedule Of Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders' Equity And Earnings Per Share [Abstract] | ' | ' | ' | |
Net income attributable to Lumos Networks Corp. | $17,773 | $16,340 | ($43,930) | [1] |
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | -425 | -331 | ' | |
Numerator for basic and diluted earnings per common share | $17,348 | $16,009 | ($43,930) | [1] |
Weighted average basic shares outstanding | 21,887 | 21,392 | 21,198 | [1] |
Less: weighted average participating securities and nonvested performance-based restricted shares | -579 | -434 | -384 | [1] |
Denominator for basic earnings per common share | 21,308 | 20,958 | 20,814 | [1] |
Plus: potentially dilutive restricted shares and stock options | 368 | 15 | ' | |
Denominator for diluted earnings per common share | 21,676 | 20,973 | 20,814 | [1] |
Basic earnings per share | $0.81 | $0.78 | ($2.11) | [1] |
Diluted earnings per share | $0.80 | $0.76 | ($2.11) | [1] |
[1] | Basic and diluted loss per share for the year ended December 31, 2011 is computed on a pro forma basis by dividing net loss by the weighted average number of common shares outstanding during the two month post-Business Separation period beginning November 1, 2011 and ending December 31, 2011, as if such shares had been outstanding for the entire year. |
Stock_Plans_Narrative_Details
Stock Plans (Narrative) (Details) (USD $) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of stock options issued | ' | ' | 772,000 | ' |
Number of shares issued during the period | ' | ' | 509,000 | ' |
Vesting schedule | ' | ' | '5 years | ' |
Recognized compensation expense on the vesting date | ' | $1.80 | ' | ' |
Stock options to be granted, minimum exercise price as a percentage of grant date fair value | ' | ' | 100.00% | ' |
Stock options grants, maximum life, in years | ' | ' | '10 years | ' |
Weighted-average grant date fair value per share of stock options granted | $3.95 | ' | $3.33 | $2.34 |
Total intrinsic value of stock options exercised | ' | ' | 0.9 | ' |
Options exercised | 0 | ' | 97,000 | 0 |
Total fair value of options vested | 0.1 | ' | 2.3 | 1.1 |
Unrecognized compensation cost | ' | ' | 2 | ' |
Unrecognized compensation cost recognition period, in years | ' | ' | '3 years 1 month 6 days | ' |
Shares vested during the period | ' | ' | 252,000 | ' |
Shares available for employee stock purchase plan | ' | ' | 100,000 | ' |
Remaining shares available for employee stock purchase plan | ' | ' | 78,655 | ' |
Shares price percentage | ' | ' | 85.00% | ' |
Shares issued under the employee stock purchase plan | ' | ' | 12,957 | ' |
Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock plan vesting description | ' | ' | 'Options issued to employees with service-only conditions generally vest on a graded vesting schedule over a four to five year period. Options generally cliff vest on the first anniversary of the grant date for non-employee directors. | ' |
Number of shares which vest upon achievement of target market price | ' | ' | 382,782 | ' |
Number of shares vested upon achievement of target market price | ' | 437,841 | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock plan vesting description | ' | ' | 'Restricted shares generally cliff vest on the third anniversary of the grant date for employees and generally cliff vest on the first anniversary of the grant date for non-employee directors. Some restricted stock awards vest on a graded vesting schedule over a five year period. | ' |
Number of shares which vest upon achievement of target market price | ' | ' | 127,325 | ' |
Vesting schedule | ' | ' | '5 years | ' |
Number of shares vested upon achievement of target market price | ' | 104,672 | ' | ' |
Total fair value of options vested | ' | ' | 4.6 | 2.2 |
Unrecognized compensation cost | ' | ' | 4 | ' |
Unrecognized compensation cost recognition period, in years | ' | ' | '2 years 6 months | ' |
Shares vested during the period | 0 | ' | ' | ' |
Equity And Cash Incentive Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Maximum number of shares of common stock available for awards | ' | ' | 4,000,000 | ' |
Securities remained available for issuance | ' | ' | 355,776 | ' |
Number of stock options issued | ' | ' | 771,964 | ' |
Equity And Cash Incentive Plan [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares issued during the period | ' | ' | 508,865 | ' |
Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period for options issued to employees with service-only conditions | ' | ' | '4 years | ' |
Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period for options issued to employees with service-only conditions | ' | ' | '5 years | ' |
Compensation expense associated with employee stock purchase plan | ' | ' | $0.10 | $0.10 |
Stock_Plans_Schedule_Of_Valuat
Stock Plans (Schedule Of Valuation Assumptions) (Details) | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Plans [Abstract] | ' | ' | ' |
Risk-free interest rate | 1.55% | 1.34% | 1.40% |
Expected volatility | 34.70% | 44.19% | 43.42% |
Expected dividend yield | 3.10% | 4.70% | 5.77% |
Expected term | '7 years | '6 years 7 months 6 days | '7 years |
Stock_Plans_Summary_Of_Stock_O
Stock Plans (Summary Of Stock Options Activity) (Details) (USD $) | 2 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Plans [Abstract] | ' | ' | ' |
Stock options outstanding at December 31, 2012, Shares | ' | 1,714,000 | ' |
Stock options outstanding at December 31, 2012, Weighted-Average Exercise Price per Share | ' | $12.29 | ' |
Granted during the period, Shares | ' | 772,000 | ' |
Granted during the period, Weighted-Average Exercise Price per Share | ' | $12.18 | ' |
Exercised during the period, Shares | 0 | -97,000 | 0 |
Exercised during the period, Weighted-Average Exercise Price per Share | ' | $11.47 | ' |
Forfeited during the period, Shares | ' | -30,000 | ' |
Forfeited during the period, Weighted-Average Exercise Price per Share | ' | $12.08 | ' |
Expired during the period, Shares | ' | -93,000 | ' |
Expired during the period, Weighted Average Exercise Price per Share | ' | $14.88 | ' |
Stock options outstanding at December 31, 2013, Shares | ' | 2,266,000 | 1,714,000 |
Stock options outstanding at December 31, 2013, Weighted-Average Exercise Price per Share | ' | $12.19 | $12.29 |
Stock options outstanding, Weighted-Average Remaining Contractual Term, in years | ' | '7 years 8 months 12 days | '7 years 7 months 6 days |
Stock options outstanding, Aggregate Intrinsic Value | ' | $20,019 | $1,002 |
Stock options exercisable at December 31, 2013, Shares | ' | 1,269,000 | ' |
Stock options exercisable at December 31, 2013, Weighted-Average Exercise Price per Share | ' | $12.58 | ' |
Stock options exercisable at December 31, 2013, Weighted-Average Remaining Contractual Term, in years | ' | '6 years 10 months 24 days | ' |
Stock options exercisable at December 31, 2013, Aggregate Intrinsic Value | ' | 10,737 | ' |
Total stock options outstanding, vested and expected to vest at December 31, 2013, Shares | ' | 2,170,000 | ' |
Total stock options outstanding, vested and expected to vest at December 31, 2013, Weighted-Average Exercise Price per Share | ' | $12.24 | ' |
Total stock options outstanding, vested and expected to vest at December 31, 2013, Aggregate Intrinsic Value | ' | $19,056 | ' |
Stock_Plans_Summary_Of_Restric
Stock Plans (Summary Of Restricted Stock Awards Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Stock Plans [Abstract] | ' |
Restricted stock outstanding at December 31, 2012, Shares | 342 |
Restricted stock outstanding at December 31, 2012, Weighted Average Grant Date Fair Value per Share | $11.67 |
Granted during the period, Shares | 509 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $11.93 |
Vested during the period, Shares | -252 |
Vested during the period, Weighted Average Grant Date Fair Value per Share | $11.59 |
Forfeited during the period, Shares | -39 |
Forfeited during the period, Weighted Average Grant Date Fair Value per Share | $11.90 |
Restricted stock outstanding at December 31, 2013, Shares | 560 |
Restricted stock outstanding at December 31, 2013, Weighted Average Grant Date Fair Value per Share | $11.93 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax [Line Items] | ' | ' | ' |
Adjustments to excess tax benefits from stock-based compensation | ' | $1,060,000 | $428,000 |
Tax benefit recorded in AOCI | 1,800,000 | 5,500,000 | 2,700,000 |
Federal [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating losses | ' | 15,700,000 | ' |
State [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Net operating losses | ' | $15,600,000 | ' |
Minimum [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
NOL expiration range | ' | '2022 | ' |
Maximum [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
NOL expiration range | ' | '2034 | ' |
Income_Taxes_Schedule_Of_Compo
Income Taxes (Schedule Of Components Of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Current tax expense, Federal | ' | ' | ' |
Current tax expense, State | 516 | 496 | 3,727 |
Total current tax expense | 516 | 496 | 3,727 |
Deferred tax expense (benefit), Federal | 10,102 | 8,982 | -3,657 |
Deferred tax expense (benefit), State | 1,401 | 1,532 | -4,453 |
Total deferred tax expense (benefit) | 11,503 | 10,514 | -8,110 |
Total income tax expense (benefit) | $12,019 | $11,010 | ($4,383) |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Computed tax expense (benefit) at statutory federal rate of 35% | $10,470 | $9,610 | ($16,891) |
Nondeductible goodwill impairment charge | ' | ' | 11,703 |
Nondeductible compensation | 307 | 91 | 637 |
Noncontrolling interests | -50 | -37 | 18 |
Nondeductible public offering costs | 285 | ' | ' |
State income taxes, net of federal income tax impact | 1,246 | 1,318 | -472 |
Other, net | -239 | 28 | 622 |
Total income tax expense (benefit) | $12,019 | $11,010 | ($4,383) |
Statutory federal rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Schedule_Of_Net_D
Income Taxes (Schedule Of Net Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ' | ' |
Retirement benefits other than pension | $6,909 | $5,053 |
Pension and related plans | ' | 6,228 |
Net operating loss | 6,200 | 4,346 |
Accrued expenses | 4,480 | 4,146 |
Other | 170 | 1,379 |
Total deferred income tax assets | 17,759 | 21,152 |
Property and equipment | -82,040 | -67,493 |
Intangibles | -7,271 | -9,615 |
Pension and related plans | -246 | ' |
Total deferred income tax liabilities | -89,557 | -77,108 |
Net current deferred income tax asset | 7,289 | 3,357 |
Net non-current deferred income tax liability | -79,087 | -59,313 |
Net deferred income tax liability | ($71,798) | ($55,956) |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Change In Unrecognized Income Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' |
Balance at beginning of year | $609 | $484 |
Additions for tax positions related to the current year | 291 | 82 |
Increases for tax positions related to prior years | 554 | 43 |
Statute of limitations expiration | -329 | ' |
Balance at end of year | $1,125 | $609 |
Pension_Plans_And_Other_Postre2
Pension Plans And Other Postretirement Benefits (Narrative) (Details) (USD $) | 2 Months Ended | 12 Months Ended | 2 Months Ended | 12 Months Ended | 2 Months Ended | 12 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Qualified And Non-Qualified Pension And OPEBs Plans [Member] | Qualified And Non-Qualified Pension And OPEBs Plans [Member] | Qualified And Non-Qualified Pension And OPEBs Plans [Member] | Defined Benefit Pension Plan [Member] | Defined Benefit Pension Plan [Member] | Defined Benefit Pension Plan [Member] | Defined Benefit Pension Plan [Member] | Other Postretirement Benefit Plans [Member] | Other Postretirement Benefit Plans [Member] | Other Postretirement Benefit Plans [Member] | Other Postretirement Benefit Plans [Member] | Supplemental Executive Retirement Plan [Member] | Supplemental Executive Retirement Plan [Member] | Supplemental Executive Retirement Plan [Member] | Other Nonqualified Defined Benefit Pension Plans [Member] | Other Nonqualified Defined Benefit Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total expense (income) recognized for all pension and OPEBs plans | ' | ($330,000) | $665,000 | ($4,059,000) | ($700,000) | $2,200,000 | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Further benefits that will be accrued by plan participants | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Accumulated benefit obligation | ' | ' | ' | ' | ' | ' | ' | ' | 57,200,000 | 64,500,000 | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' |
Amounts reclassified out of accumulated other comprehensive income related to amortization of actuarial losses | 200,000 | 1,000,000 | 1,500,000 | ' | ' | ' | ' | -197,000 | -918,000 | -1,481,000 | ' | ' | -28,000 | ' | ' | ' | ' | ' | ' | ' |
Assumed health care cost trend rate for 2014 | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ultimate health care cost trend rate | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Year that rate reaches the ultimate trend rate | ' | '2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of 1% increase on service and interest cost components | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of 1% increase on accumulated benefit obligation | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of 1% decrease on service and interest cost components | ' | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of 1% decrease on accumulated benefit obligation | ' | -1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer contributions | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2,000,000 | ' | 67,000 | 676,000 | 441,000 | ' | ' | ' | ' | ' | ' |
Expected net periodic (benefit) expense | ' | ' | ' | ' | ' | ' | ' | ' | -1,800,000 | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' |
Curtailment gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,519,000 | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Benefit obligation | ' | ' | ' | ' | ' | ' | ' | 64,061,000 | 57,209,000 | 64,511,000 | 60,181,000 | 12,511,000 | 12,800,000 | 12,874,000 | 12,157,000 | 4,300,000 | 4,300,000 | 4,800,000 | 400,000 | 500,000 |
Expense recognized from previously unrecognized loss | ' | -756,000 | -1,088,000 | -120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 300,000 | 300,000 | ' | ' |
Amount of unrecognized actuarial losses recorded in AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 1,500,000 | ' | ' |
Income tax from unrecognized actuarial loss | 1,800,000 | 5,500,000 | 2,700,000 | ' | ' | ' | ' | -9,192,000 | -1,444,000 | -6,527,000 | ' | -498,000 | -471,000 | -576,000 | ' | ' | 700,000 | 1,000,000 | ' | ' |
Expected future benefit payments, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | 2,838,000 | ' | ' | ' | 671,000 | ' | ' | ' | 200,000 | ' | 100,000 | ' |
Expected future benefit payments, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | 2,894,000 | ' | ' | ' | 667,000 | ' | ' | ' | 200,000 | ' | 100,000 | ' |
Expected future benefit payments, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | 2,927,000 | ' | ' | ' | 680,000 | ' | ' | ' | 200,000 | ' | ' | ' |
Expected future benefit payments, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | 2,981,000 | ' | ' | ' | 690,000 | ' | ' | ' | 200,000 | ' | ' | ' |
Expected future benefit payments, 2018 | ' | ' | ' | ' | ' | ' | ' | ' | 3,004,000 | ' | ' | ' | 700,000 | ' | ' | ' | 200,000 | ' | ' | ' |
Expected future benefit payments, 2019-2023 | ' | ' | ' | ' | ' | ' | ' | ' | 16,168,000 | ' | ' | ' | 3,618,000 | ' | ' | ' | 1,300,000 | ' | ' | ' |
Plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Company matching contribution for a defined contribution plan | ' | $900,000 | $800,000 | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension_Plans_And_Other_Postre3
Pension Plans And Other Postretirement Benefits (Schedule Of Defined Benefit Plan Disclosures) (Details) (USD $) | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, beginning of period | ' | $51,675,000 | ' |
Fair value of plan assets, end of period | ' | 57,847,000 | 51,675,000 |
Funded status: | ' | ' | ' |
Non-current liabilities | ' | 16,848,000 | 30,413,000 |
Amounts recognized in accumulated other comprehensive loss: | ' | ' | ' |
Income taxes | -1,800,000 | -5,500,000 | -2,700,000 |
Defined Benefit Pension Plan [Member] | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Benefit obligations, beginning of period | 60,181,000 | 64,511,000 | 64,061,000 |
Service cost | 312,000 | ' | 2,043,000 |
Interest cost | 451,000 | 2,432,000 | 2,698,000 |
Actuarial (gain) loss | 3,528,000 | -7,199,000 | 5,942,000 |
Benefits paid, net | -411,000 | -2,756,000 | -2,475,000 |
Curtailment gain | ' | ' | -8,519,000 |
Transfer | ' | 221,000 | 761,000 |
Benefit obligations, end of period | 64,061,000 | 57,209,000 | 64,511,000 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, beginning of period | 45,531,000 | 51,675,000 | 45,109,000 |
Actual return on plan assets | -11,000 | 8,897,000 | 6,610,000 |
Employer contributions | ' | 0 | 2,000,000 |
Benefits paid | -411,000 | -2,812,000 | -2,492,000 |
Transfer | ' | 87,000 | 448,000 |
Fair value of plan assets, end of period | 45,109,000 | 57,847,000 | 51,675,000 |
Funded status: | ' | ' | ' |
Non-current asset | ' | -638,000 | ' |
Current liabilities | ' | ' | ' |
Non-current liabilities | 18,952,000 | ' | 12,836,000 |
Funded status recognized in the consolidated balance sheets | 18,952,000 | -638,000 | 12,836,000 |
Amounts recognized in accumulated other comprehensive loss: | ' | ' | ' |
Net actuarial loss | -23,630,000 | -3,711,000 | -16,778,000 |
Income taxes | 9,192,000 | 1,444,000 | 6,527,000 |
Net amount recognized in accumulated other comprehensive loss | -14,438,000 | -2,267,000 | -10,251,000 |
Other Postretirement Benefit Plans [Member] | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Benefit obligations, beginning of period | 12,157,000 | 12,874,000 | 12,511,000 |
Service cost | 12,000 | 91,000 | 78,000 |
Interest cost | 91,000 | 485,000 | 525,000 |
Actuarial (gain) loss | 318,000 | 26,000 | 201,000 |
Benefits paid, net | -67,000 | -676,000 | -441,000 |
Curtailment gain | ' | ' | ' |
Transfer | ' | ' | ' |
Benefit obligations, end of period | 12,511,000 | 12,800,000 | 12,874,000 |
Change in plan assets: | ' | ' | ' |
Employer contributions | 67,000 | 676,000 | 441,000 |
Benefits paid | -67,000 | -676,000 | -441,000 |
Funded status: | ' | ' | ' |
Current liabilities | 603,000 | 671,000 | 553,000 |
Non-current liabilities | 11,908,000 | 12,129,000 | 12,321,000 |
Funded status recognized in the consolidated balance sheets | 12,511,000 | 12,800,000 | 12,874,000 |
Amounts recognized in accumulated other comprehensive loss: | ' | ' | ' |
Net actuarial loss | -1,279,000 | -1,211,000 | -1,480,000 |
Income taxes | 498,000 | 471,000 | 576,000 |
Net amount recognized in accumulated other comprehensive loss | ($781,000) | ($740,000) | ($904,000) |
Pension_Plans_And_Other_Postre4
Pension Plans And Other Postretirement Benefits (Schedule Of Net Periodic (Benefit) Expense) (Details) (USD $) | 2 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Amortization of loss | ($200) | ($1,000) | ($1,500) |
Defined Benefit Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 312 | ' | 2,043 |
Interest cost | 451 | 2,432 | 2,698 |
Expected return on plan assets | -571 | -3,901 | -3,517 |
Amortization of loss | 197 | 918 | 1,481 |
Net periodic (benefit) expense | 389 | -551 | 2,705 |
Other Postretirement Benefit Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 12 | 91 | 78 |
Interest cost | 91 | 485 | 525 |
Amortization of loss | ' | 28 | ' |
Net periodic (benefit) expense | $103 | $604 | $603 |
Pension_Plans_And_Other_Postre5
Pension Plans And Other Postretirement Benefits (Schedule Of Assumptions Used) (Details) | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation assumption, Discount rate | ' | 4.70% | 3.85% |
Benefit obligation assumption, Rate of compensation increase | ' | ' | 3.00% |
Net periodic benefit cost assumption, Discount rate | 4.60% | 3.85% | 4.30% |
Net periodic benefit cost assumption, Expected return on plan assets | 7.75% | 7.75% | 7.75% |
Net periodic benefit cost assumption, Rate of compensation increase | 3.00% | ' | 3.00% |
Other Postretirement Benefit Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation assumption, Discount rate | ' | 4.70% | 3.85% |
Net periodic benefit cost assumption, Discount rate | 4.60% | 3.85% | 4.30% |
Pension_Plans_And_Other_Postre6
Pension Plans And Other Postretirement Benefits (Schedule Of Plan Asset Allocation) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 100.00% | 100.00% |
Fair Value | $57,847 | $51,675 |
Target Allocation | 100.00% | ' |
Actual and Target Allocation | ' | 100.00% |
Large Cap Value [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 23.00% | 32.00% |
Fair Value | 13,202 | 16,395 |
Large Cap Blend [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 11.00% | 16.00% |
Fair Value | 6,558 | 8,169 |
Mid Cap Blend [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 6.00% | 6.00% |
Fair Value | 3,559 | 3,149 |
Small Cap Blend [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 4.00% | 4.00% |
Fair Value | 2,384 | 2,134 |
Foreign Stock - Large Cap [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 7.00% | 7.00% |
Fair Value | 4,069 | 3,696 |
Bond [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 34.00% | 32.00% |
Fair Value | 19,559 | 16,405 |
Cash and Cash Equivalents [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 15.00% | 3.00% |
Fair Value | $8,516 | $1,727 |
Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 49.00% | ' |
Target Allocation | 50.00% | ' |
Actual and Target Allocation | ' | 65.00% |
Bond Securities And Cash Equivalents [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual Allocation | 51.00% | ' |
Target Allocation | 50.00% | ' |
Actual and Target Allocation | ' | 35.00% |
Pension_Plans_And_Other_Postre7
Pension Plans And Other Postretirement Benefits (Schedule Of Expected Future Pension Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Defined Benefit Pension Plan [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $2,838 |
2015 | 2,894 |
2016 | 2,927 |
2017 | 2,981 |
2018 | 3,004 |
2019-2023 | 16,168 |
Other Postretirement Benefit Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 671 |
2015 | 667 |
2016 | 680 |
2017 | 690 |
2018 | 700 |
2019-2023 | $3,618 |
Restructuring_Charges_Narrativ
Restructuring Charges (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Restructuring Charges [Abstract] | ' | ' | ||
Restructuring charges | $50,000 | [1] | $2,981,000 | [1] |
Severance and separation costs | ' | 2,400,000 | ||
Lease termination costs | ' | 600,000 | ||
Restructuring reserve | ' | $2,691,000 | ||
[1] | In 2012, the Company completed a cost reduction plan involving an employee reduction-in-force, consolidation of certain facilities and freezing benefits under certain postretirement plans. Restructuring charges of $3.0 million were recognized in 2012 in connection with this plan (Note 12). |
Restructuring_Charges_Summary_
Restructuring Charges (Summary Of Restructuring Liability Balance) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning balance | $2,691 | ' |
Additions | 50 | 2,981 |
Payments | -2,741 | -290 |
Ending balance | ' | 2,691 |
Employee Severance And Termination Benefits [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning balance | 2,387 | ' |
Additions | 10 | 2,387 |
Payments | -2,397 | ' |
Ending balance | ' | 2,387 |
Lease Termination Costs [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning balance | 304 | ' |
Additions | 40 | 594 |
Payments | -344 | -290 |
Ending balance | ' | $304 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments And Contingencies [Abstract] | ' | ' | ' |
Rental expense for operating leases | $2.90 | $3.50 | $3.80 |
Amount committed under lease agreements, 2014 | 0.8 | ' | ' |
Amount committed under lease agreements, 2015 | 0.8 | ' | ' |
Amount committed under lease agreements, 2016 | 0.7 | ' | ' |
Amount committed under lease agreements, 2017 | 0.7 | ' | ' |
Amount committed under lease agreements, 2018 | 0.6 | ' | ' |
Amount committed under lease agreements, thereafter | 1.4 | ' | ' |
Purchase commitments relating to capital expenditures | 6.1 | ' | ' |
Percentage of interest in company represented by stock acquired which would require the company to indemnify NTELOS against any tax resulting from the Distribution | 50.00% | ' | ' |
Transition services agreement, net expense | $0.10 | $1.50 | $0.40 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 10 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2011 |
Related party interest expense | $9.50 |
General and administrative expenses from related party | 7.3 |
Ntelos Holdings [Member] | ' |
Contribution expense previously unallocated amounts from parent | $2.40 |
Schedule_II_Valuation_And_Qual1
Schedule II - Valuation And Qualifying Accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Allowance for doubtful accounts, Balance at Beginning of Year | $1,822 | $2,822 | $2,117 |
Charged to Expense | 249 | 523 | 316 |
Charged to Other Accounts | 346 | 368 | 821 |
Deductions | -932 | -1,891 | -432 |
Allowance for doubtful accounts, Balance at End of Year | $1,485 | $1,822 | $2,822 |