Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Lumos Networks Corp. | |
Entity Central Index Key | 1,520,744 | |
Trading Symbol | LMOS | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,969,714 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 63,791 | $ 14,140 |
Marketable securities | 60,875 | 16,870 |
Restricted cash | 370 | 4,208 |
Accounts receivable, net of allowance of $1,430 ($1,217 in 2014) | 21,867 | 22,925 |
Other receivables | 789 | 2,113 |
Income tax receivable | 179 | 172 |
Prepaid expenses and other | 5,822 | 4,321 |
Deferred income taxes | 2,360 | 5,601 |
Total Current Assets | 156,053 | 70,350 |
Securities and Investments | 1,119 | 914 |
Property, Plant and Equipment | ||
Land and buildings | 22,694 | 19,726 |
Network plant and equipment | 603,517 | 540,108 |
Furniture, fixtures and other equipment | 48,420 | 45,729 |
Total in service | 674,631 | 605,563 |
Under construction | 46,118 | 34,426 |
Property, plant and equipment, gross | 720,749 | 639,989 |
Less accumulated depreciation and amortization | 241,572 | 210,538 |
Total Property, Plant and Equipment, net | 479,177 | 429,451 |
Other Assets | ||
Goodwill | 100,297 | 100,297 |
Other intangibles, less accumulated amortization of $94,163 ($90,086 in 2014) | 11,807 | 15,884 |
Deferred charges and other assets | 1,639 | 512 |
Total Other Assets | 113,743 | 116,693 |
Total Assets | 750,092 | 617,408 |
Current Liabilities | ||
Current portion of long-term debt | 10,454 | 10,227 |
Accounts payable | 19,147 | 20,257 |
Dividends payable | 3,152 | |
Advance billings and customer deposits | 13,760 | 14,029 |
Accrued compensation | 1,381 | 1,516 |
Accrued operating taxes | 4,943 | 4,618 |
Other accrued liabilities | 5,257 | 4,223 |
Total Current Liabilities | 54,942 | 58,022 |
Long-term Liabilities | ||
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 457,306 | 357,950 |
Retirement benefits | 17,075 | 18,257 |
Deferred income taxes | 90,833 | 87,864 |
Other long-term liabilities | 1,888 | 1,746 |
Income tax payable | 93 | 110 |
Total Long-term Liabilities | $ 567,195 | $ 465,927 |
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; 22,962 shares issued and 22,954 shares outstanding (22,579 shares issued and 22,544 shares outstanding in 2014) | $ 230 | $ 226 |
Additional paid-in capital | 169,934 | 143,545 |
Treasury stock, 8 shares at cost (35 shares in 2014) | (38) | (41) |
Accumulated deficit | (31,215) | (38,567) |
Accumulated other comprehensive loss, net of tax | (11,849) | (12,486) |
Total Lumos Networks Corp. Stockholders' Equity | 127,062 | 92,677 |
Noncontrolling Interests | 893 | 782 |
Total Equity | 127,955 | 93,459 |
Total Liabilities and Equity | $ 750,092 | $ 617,408 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance | $ 1,430 | $ 1,217 |
Other intangibles, accumulated amortization | $ 94,163 | $ 90,086 |
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 | 22,962,000 | 22,579,000 |
Common stock, shares outstanding | 22,954,000 | 22,544,000 |
Treasury stock, shares | 8,000 | 35,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements Of Income [Abstract] | ||||
Operating Revenues | $ 50,969 | $ 50,516 | $ 152,417 | $ 150,771 |
Operating Expenses | ||||
Network access costs | 9,932 | 10,250 | 29,556 | 31,154 |
Selling, general and administrative | 20,554 | 8,545 | 60,657 | 44,964 |
Depreciation and amortization | 11,803 | 11,272 | 35,112 | 33,141 |
Accretion of asset retirement obligations | 33 | 38 | 105 | 95 |
Restructuring charges | 637 | |||
Total Operating Expenses | 42,322 | 30,105 | 126,067 | 109,354 |
Operating Income | 8,647 | 20,411 | 26,350 | 41,417 |
Other Income (Expenses) | ||||
Interest expense | (5,817) | (3,969) | (13,022) | (11,755) |
Gain on interest rate swap derivatives | 198 | 302 | 445 | 395 |
Other income (expenses), net | 58 | 179 | (89) | 529 |
Total Other Expenses, net | (5,561) | (3,488) | (12,666) | (10,831) |
Income Before Income Taxes | 3,086 | 16,923 | 13,684 | 30,586 |
Income Tax Expense | 1,774 | 6,713 | 6,221 | 12,402 |
Net Income | 1,312 | 10,210 | 7,463 | 18,184 |
Net Income Attributable to Noncontrolling Interests | (33) | (3) | (111) | (69) |
Net Income Attributable to Lumos Networks Corp. | $ 1,279 | $ 10,207 | $ 7,352 | $ 18,115 |
Basic and Diluted Earnings per Common Share Attributable to Lumos Networks Corp. Stockholders | ||||
Earnings per share - basic | $ 0.06 | $ 0.46 | $ 0.32 | $ 0.81 |
Earnings per share - diluted | $ 0.06 | 0.45 | $ 0.32 | 0.80 |
Cash Dividends Declared per Share - Common Stock | $ 0.14 | $ 0.42 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,312 | $ 10,210 | $ 7,463 | $ 18,184 |
Other Comprehensive Income, Net of Tax: | ||||
Adjustment to unrecognized loss due to curtailment of postretirement medical plan benefits, net of $462 of income taxes for the three and nine months ended September 30, 2014. | 726 | 726 | ||
Reclassification adjustment for amortization of actuarial loss from defined benefit plans included in net income, net of $131 and $25 of income taxes for the three months ended September 30, 2015 and 2014, respectively, and $395 and $75 of income taxes for the nine months ended September 30, 2015 and 2014, respectively (see Note 2) | 206 | 39 | 618 | 117 |
Unrealized holding gain (loss) on available-for-sale marketable securities, net of $8 and ($8) of income taxes for the three months ended September 30, 2015 and 2014, respectively, and $12 and ($7) of income taxes for the nine months ended September 30, 2015 and 2014, respectively | 12 | (15) | 19 | (13) |
Other Comprehensive Income, Net of Tax | 218 | 750 | 637 | 830 |
Total Comprehensive Income | 1,530 | 10,960 | 8,100 | 19,014 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | (33) | (3) | (111) | (69) |
Comprehensive Income Attributable to Lumos Networks Corp. | $ 1,497 | $ 10,957 | $ 7,989 | $ 18,945 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | $ 462 | $ 462 | ||
Deferred income tax asset, Reclassification adjustment for amortization of actuarial loss from defined benefit plans | $ 131 | 25 | $ 395 | 75 |
Deferred income tax asset, Unrealized gain on available-for-sale securities | $ 8 | $ (8) | $ 12 | $ (7) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 7,463 | $ 18,184 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 31,035 | 26,251 |
Amortization | 4,077 | 6,890 |
Accretion of asset retirement obligations | 105 | 95 |
Deferred income taxes | 5,802 | 12,045 |
Gain on interest rate swap derivatives | (445) | (395) |
Equity-based compensation expense | 4,236 | 3,109 |
Amortization of debt discounts and issuance costs | 1,648 | 1,102 |
Retirement benefits, net of cash contributions and distributions | (171) | (11,352) |
Excess tax benefits from share-based compensation | (201) | |
Other | 206 | 206 |
Changes in assets and liabilities from operations: | ||
Increase (decrease) in accounts receivable | 836 | (992) |
(Increase) decrease in other assets | (2,689) | 1,220 |
Changes in income taxes | (24) | 298 |
(Decrease) increase in accounts payable | (2,776) | 4,323 |
Increase (decrease) in other current liabilities | 2,702 | (230) |
Net Cash Provided by Operating Activities | 52,005 | 60,553 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (80,118) | (64,151) |
Broadband network expansion funded by stimulus grant | (2,578) | (284) |
Purchases of available-for-sale marketable securities | (74,088) | (17,010) |
Proceeds from sale or maturity of available-for-sale marketable securities | 29,903 | 36,856 |
Change in restricted cash | 3,838 | 116 |
Cash reimbursement received from broadband stimulus grant | 3,838 | 116 |
Other | 106 | |
Net Cash Used in Investing Activities | (119,205) | (44,251) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of senior secured term loan | 28,000 | |
Proceeds from issuance of unsecured notes, net of debt discount | 148,500 | |
Payment of financing costs | (8,192) | |
Principal payments on senior secured term loans | (45,953) | (3,313) |
Cash dividends paid on common stock | (3,152) | (9,323) |
Principal payments under capital lease obligations | (2,378) | (1,312) |
Proceeds from stock option exercises and employee stock purchase plan | 293 | 1,668 |
Excess tax benefits from share-based compensation | 201 | |
Other | (267) | (66) |
Net Cash Provided by (Used in) Financing Activities | 116,851 | (12,145) |
Increase in cash and cash equivalents | 49,651 | 4,157 |
Cash and Cash Equivalents: | ||
Beginning of Period | 14,140 | 14,114 |
End of Period | $ 63,791 | $ 18,271 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
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, Pennsylvania, 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 March 17, 2015, in a secondary offering of the Company’s common stock, Quadrangle Capital Partners LP. (“Quadrangle”) sold 1,600,000 shares on an underwritten basis. On September 14, 2015, Quadrangle distributed its remaining 591,898 shares to its investors (the “Distribution”). As a result, the shareholder agreement between Quadrangle and the Company expired as of the effective date of the Distribution. All direct costs of the March 2015 offering, which were primarily legal and accounting fees, totaled $0.3 million and are included in other expenses in the condensed consolidated statement of income for the nine months ended September 30, 2015 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The condensed 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, exercise control. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2015 and September 30, 2014 contain all adjustments necessary to present fairly in all material respects the Company’s financial position and the results of operations and cash flows for all periods presented on the respective condensed consolidated financial statements included herein. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 , as adjusted for the change in accounting principle described below. 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 consolidated 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, stock warrants and equity-based compensation; goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. Change in Accounting Principle The Company historically presented unamortized debt issuance costs, or fees directly related to issuing debt, as long-term assets on the consolidated balance sheets in accordance with existing GAAP. In the third quarter of 2015, the Company elected early adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”) and applied it retrospectively to all prior periods presented in the financial statements. The guidance simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. Therefore, these costs will continue to be amortized as interest expense over the life of the associated debt instrument. The adoption of ASU 2015-03 resulted in the presentation of $ 10.9 million of debt issuance costs as a reduction to long-term debt in the condensed consolidated balance sheet as of September 30, 2015. The Company also reclassified $5.2 million of debt issuance costs from deferred charges and other assets to long-term debt on the condensed consolidated balance sheet as of December 31, 2014. The adoption of ASU 2015-03 did not impact net income or any other amounts previously reported on the condensed consolidated statements of income or comprehensive income. Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or products are delivered, installed and functional, as applicable, the price to the buyer is fixed or determinable and collectability is reasonably assured. 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 to other carriers. Revenues for equipment sales are recognized at the point of sale. Cash Equivalents and Marketable Securities The Company considers its investment in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company’s marketable securities at September 30, 2015 and December 31, 2014 consist of debt securities not classified as cash equivalents. The Company classifies such debt securities as either held-to-maturity, when the Company has the positive intent and ability to hold the securities to maturity, or available-for-sale. Held-to-maturity debt securities are carried at amortized cost, adjusted for the amortization of premiums or accretion of discounts. Available-for-sale securities are carried at fair value, with 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 September 30, 2015 and December 31, 2014 . 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 was $ 16.1 million, of which 50 % (approximately $ 8 million) was funded by a grant from the federal government. The project was completed as of 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 was drawn down ratably following the grant reimbursement approvals. The Company received $3.8 million in cash reimbursements during the nine months ended September 30, 2015 . As of September 30, 2015 , the Company had no remaining receivable for the reimbursable portion of the qualified recoverable expenditures and the Company’s pledged account balance was $ 0.4 million, which the Company expects to be released by year end 2015 . The 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 estimates 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 condensed consolidated statements of income. Bad debt expense for each of the three months ended September 30, 2015 and 2014 was $0. 2 million , and bad debt expense for the nine months ended September 30, 2015 and 2014 was $0.4 million and $0.7 million, respectively. The Company’s allowance for doubtful accounts and customer credits was $ 1.4 million and $1.2 million as of September 30, 2015 and December 31, 2014, respectively . The following table presents a roll-forward of the Company’s allowance for doubtful accounts and customer credits from December 31, 2014 to September 30, 2015 : Additions (In thousands) December 31, 2014 Charged to Expense Charged to Other Accounts Deductions September 30, 2015 Allowance for doubtful accounts and customer credits $ $ $ $ $ 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 FASB Accounting Standards Codification (“ASC”) 360-10-35. Impairment is d etermined 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 September 30, 2015 that would require the Company 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. 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. Buildings are depreciated over a 50 -year life and leasehold improvements, which are categorized in land and buildings, are depreciated over the shorter of the estimated useful lives or the remaining lease terms. Network plant and equipment are generally depreciated over various lives from 3 to 25 years, with a current weighted average life of approximately 17 years. Furniture, fixtures and other equipment are depreciated over various lives from 2 to 24 years. 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 condensed consolidated balance sheets. At September 30, 2015 and December 31, 2014 , other intangibles were comprised of the following: September 30, 2015 December 31, 2014 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ $ $ $ Trademarks and franchise rights 10 to 15 yrs Total $ $ $ $ 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 periodically 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 nine months ended September 30, 2015 . Amortization expense for the three months ended September 30, 2015 and 2014 was $ 0.7 million and $ 2.3 million, respectively, and amortization expense for the nine months ended September 30, 2015 and 2014 was $4.1 million and $6.9 million, respectively. Amortization expense for the remainder of 2015 and for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total Remainder of 2015 $ $ $ 2016 2017 2018 2019 2020 Goodwill and Indefinite-Lived Intangible Assets Goodwill and certain trademarks 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 intangible assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. The Company believes there have been no events or circumstances to cause it to evaluate the carrying amount of goodwill or indefinite-lived intangible assets during the nine months ended September 30, 2015 . Pension Benefits and Retirement Benefits Other Than Pensions The Company sponsors a non-contributory defined benefit pension plan (the “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 are being accrued by participants for services rendered beyond that date. For the three and nine months ended September 30, 2015 and 2014 , the components of the Company’s net periodic benefit income for the Pension Plan were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Service cost $ - $ - $ - $ - Interest cost Expected return on plan assets Amortization of loss - - Net periodic benefit income $ $ $ $ Pension Plan assets were valued at $ 53.1 million and $ 58.4 million at September 30, 2015 and December 31, 2014 , respectively. No funding contributions were made during the three or nine months ended September 30, 2015 , and the Company does not expect to make a funding contribution during the remainder of 2015. The Company also provides life insurance benefits for retired employees that meet eligibility requirements through two postretirement welfare benefit plans (the “Other Postretirement Benefit Plans”). The Company had provided retiree medical benefits under these plans until those benefits were terminated effective December 31, 2014 . The Company recognized a curtailment gain of $10.2 million in the condensed consolidated statements of income for the three and nine months ended September 30, 2014 related to the termination of these benefits. The net periodic benefit income for the Other Postretirement Benefit Plans was $10.0 million and $9.7 million for the three and nine months ended September 30, 2014 , respectively, inclusive of the curtailment gain. The net periodic benefit income included interest cost of $0.1 million and $0.4 million, respectively, and less than $0.1 million of service cost and amortization of actuarial losses during each period. The Company did not incur any significant costs associated with these plans during the nine months ended September 30, 2015 . The Company recognized expense for certain nonqualified pension plans for each of the three months ended September 30, 2015 and 2014 of $0.1 million , and $0.1 million and less than $0.1 million of this expense for these periods, respectively, relates to the amortization of actuarial loss. Expense for nonqualified pension plans for the nine months ended September 30, 2015 and 2014 was $0.4 million and $0.3 million, respectively, and $0.3 million and $0.2 million of the expense for these periods, respectively, relates to the amortization of actuarial loss. The total amount reclassified out of accumulated other comprehensive loss related to amortization of actuarial losses for retirement plans for the three months ended September 30, 2015 and 2014 was $ 0. 3 million and $ 0.1 million, respectively, and $1.0 million and $0.2 million for the nine months ended September 30, 2015 and 2014, respectively, all of which has been reclassified to selling, general and administrative expenses on the condensed consolidated statements of income. 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 condensed 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 is adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model. 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 and the Company’s 401(k) matching contributions was $1. 5 million and $ 1.1 million for the three months ended September 30, 2015 and 2014 , respectively, and $4.2 million and $3.1 million for the nine months ended September 30, 2015 and 2014, respectively, which amounts are included in selling, general and administrative expenses on the condensed consolidated statements of income. Future charges for equity-based compensation related to instruments outstanding at September 30, 2015 are estimated to be $ 1.4 million for the remainder of 2015, $ 4.0 million in 2016, $ 3.2 million in 2017, $ 0.9 million in 2018, and less than $ 0.1 million thereafter. 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) , which defers the effective date of ASU 2014-09 for public business entities from annual reporting periods beginning after December 15, 2016, to annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is still evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 820 ): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after September 1, 2016. The Company does not expect the future adoption of ASU 2015-02 to have a material impact on the Company’s consolidated financial statements and disclosure s. |
Cash Equivalents And Marketable
Cash Equivalents And Marketable Securities | 9 Months Ended |
Sep. 30, 2015 | |
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 marketable securities reported at fair value as of September 30, 2015 and December 31, 2014 are summarized below: (In thousands) September 30, 2015 December 31, 2014 Cash equivalents: Money market mutual funds $ $ Commercial paper - Debt securities issued by U.S. Government agencies - Corporate debt securities Total cash equivalents Marketable securities: Certificates of deposit - Commercial paper Debt securities issued by U.S. Government agencies Municipal bonds Corporate debt securities Total marketable securities, available-for-sale Total cash equivalents and marketable securities $ $ At September 30, 2015 and December 31, 2014 , the carrying values of the investments included in cash and cash equivalents approximated fair value. The aggregate amortized cost 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 September 30, 2015 : (In thousands) Total Due in one year or less $ Due after one year through two years Total debt securities $ The Company received total proceeds of $11.9 million and $22.7 million from the sale or maturity of available-for-sale marketable securities during the three months ended September 30, 2015 and 2014, respectively, and $ 29.9 million and $ 36.9 million during the nine months ended September 30, 2015 and 2014, respectively. The Company did not recognize any material realized net gains or losses and net unrealized holding gains on available-for-sale marketable securities were less than $0.1 million for each of the three and nine months ended September 30, 2015 and 2014, respectively. Unrealized holding gains or losses are included in accumulated other comprehensive loss on the condensed consolidated balance sheets. |
Disclosures About Segments Of A
Disclosures About Segments Of An Enterprise And Related Information | 9 Months Ended |
Sep. 30, 2015 | |
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 generally align with its major product and service offerings and coincide with the way that the Company’s chief operating decision makers measure performance and allocate resources. 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 data, residential and small business (“R&SB”) and RLEC access. A general description of the products and services offered and the customers served by each of these segments is as follows: · Data: This segment includes the Company’s enterprise data (metro Ethernet, dedicated Internet, voice over IP (“VoIP”) and private line), transport, and FTTC product and service groups. These businesses primarily serve enterprise and carrier 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. · R&SB: This segment includes the following voice products: local lines, primary rate interface (“PRI”), long distance, toll and directory advertising and other voice services (excluding VoIP which are typically provided to enterprise customers and are included in the Company’s data segment) and the following IP services products: fiber-to-the-premise broadband XL, DSL, integrated access and video. These products are sold to residential and small business customers on the Company’s network and within the Company’s footprint. This segment also provides carrier customers access to our network located in competitive markets. · RLEC Access: This segment provides carrier customers access to the Company’s network within the Company’s RLEC footprint and primarily includes switched access services. Summarized financial information concerning the Company’s reportable segments is presented in the following table: (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended September 30, 2015: Operating revenues $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) - Capital expenditures - For the nine months ended September 30, 2015: Operating revenues $ $ $ $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) - Capital expenditures - (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended September 30, 2014: Operating revenues $ $ $ $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) Capital expenditures - For the nine months ended September 30, 2014: Operating revenues $ $ $ $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) Capital expenditures - (1) T he Company’s CODMs evaluate 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. 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 operating segments. The following table provides a reconciliation of net income attributable to Lumos Networks Corp. to Adjusted EBITDA, as defined by the Company, on a consolidated basis for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Net Income Attributable to Lumos Networks Corp. $ $ $ $ Net Income Attributable to Noncontrolling Inter ests Net income Income tax expense Interest expense Gain on interest rate swap derivatives Other (income) expenses, net Operating Income Depreciation and amortization and accretion of asset retirement obligations Amortization of actuarial losses Equity-based compensation Restructuring charges - - - Employee separation charges - - - Adjusted EBITDA $ $ $ $ One of the Company’s carrier customers, AT&T, individually accounted for 8% and 10% of the Company’s total operating revenues for the three months ended September 30, 2015 and 2014, respectively, and 8% and 9% for the nine months ended September 30, 2015 and 2014 , respectively . Revenues from this carrier customer were derived primarily from network access, data transport and fiber to the cell site services. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 5. Long-Term Debt As of September 30, 2015 and December 31, 2014 , the Company’s outstanding long-term debt consisted of the following: September 30, 2015 December 31, 2014 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ $ $ $ 8% Notes due 2022 - - Capital lease obligations - - Long-term debt Less: Current portion of long-term debt - - Long-term debt, excluding current portion $ $ $ $ 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 (“Term Loan A”), a $275 million senior secured six-year term loan (“Term Loan B”); a $28 million senior secured incremental term loan facility under the existing credit facility (“Term Loan C”); and a $50 million senior secured five -year revolving credit facility (the “Revolver”). The proceeds from Term Loan A and Term Loan B were used to retire the prior first lien 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 September 30, 2015, no borrowings were outstanding under the Revolver. On January 2, 2015, the Company entered into the Term Loan C and amended certain terms of the Credit Facility. The Company is using the net proceeds from Term Loan C to fund new FTTC projects. The amendment included changes to the maximum leverage ratio and the pricing of the Credit Facility as discussed below. On August 6, 2015, the Company prepaid $40.0 million of the outstanding principal of the Credit Facility, which was allocated ratably to Term Loans A, B and C. The Company used proceeds from the issuance of the 8% Notes due 2022, discussed below, to fund these prepayments. Pricing of the amended Credit Facility is LIBOR plus 3.00% for the Revolver and Term Loan A and LIBOR plus 3.25% for Term Loan B and C . The Credit Facility does not require a minimum LIBOR rate. Term Loan A matures in 2018 with quarterly payments of 1.25% per annum through December 31, 2016 and 2.50% per annum thereafter. Term Loan B matures in 2019 with quarterly payments of 1% per annum. Term Loan C matures in 2019 with quarterly payments of 1% per annum beginning on September 30, 2015. 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 amended Credit Facility includes various restrictions and conditions, including a maximum leverage ratio of 5.00 :1 .00 through December 31, 2015, 4.75 :1 .00 through December 31, 2016, 4.50 :1.00 through December 31, 2017, 4.25 :1.00 through December 31, 2018, and 4.00 :1.00 thereafter. The amended Credit Facility also sets a minimum interest rate coverage ratio of 3.25 :1.00. At September 30, 2015, the Company’s leverage ratio was 3.89 :1.00 and its interest coverage ratio was 6.41 :1.00. The Company was in compliance with its debt covenants as of September 30, 2015. In accordance with the terms of the Credit Facility, the Company entered into interest rate swap agreements with a combined notional amount of 50 percent of the aggregate outstanding balance of Term Loan A and Term Loan B. Under the interest rate swap agreements, the Company swaps one-month LIBOR with a fixed rate of approximately 0.5% for certain agreements entered into in 2012 and 0.8% for certain agreements entered into in 2013 . The combined notional amount under the swap agreements was $181.3 million at September 30, 2015. The Company recognized a gain on interest rate swap derivatives of $0.2 million and $0.4 million for the three and nine months ended September 30, 2015, respectively, and a gain of $0.3 million and $0.4 million for the three and nine months ended September 30, 2014, respectively. The interest rate swap agreements expire on December 31, 2015. The Company’s effective interest rate on its Credit Facility for the nine months ended September 30, 2015 was 3.99 %. 8% Notes due 2022 On August 6, 2015, the Company issued $150 million in unsecured promissory notes (the “8% Notes”) to an affiliate of Pamplona Capital Management LLC (“Pamplona”). The net proceeds of the Notes, after a $1.5 million purchasers discount and payment of $ 7.1 million of closing costs, were used to prepay $40.0 million of the Company’s existing Credit Facility with the remainder to be used for general corporate purposes, including to fund future growth opportunities. The Notes bear interest at an annual fixed rate of 8.00% and mature on August 15, 2022. Interest is payable in arrears on a quarterly basis on August 15, November 15, February 15, and May 15 of each year, beginning on November 15, 2015. Interest is payable in cash or, at the election of the Company, through the issuance of additional notes or by adding the amount of the accrued interest to the unpaid principal amount of the Notes outstanding at that time. The Notes were also issued with 5,500,000 warrants for no additional consideration to purchase shares of the Company’s common stock (the “Warrants”). The Company allocated the net proceeds received from the debt issuance to the 8% Notes and the equity-classified Warrants based on the relative fair value of the instruments. As a result, the Company recognized a total discount on the 8% Notes of $24.8 million of which $23.5 million represents the value assigned to the Warrants, and $1.3 million represents the allocated portion of the aforementioned $1.5 million purchasers discount. The discount on the 8% Notes will be amortized to interest expense over the life of the debt using the effective interest method. See Note 10 for additional details regarding the valuation of the Warrants. In connection with the issuance of the 8% Notes in August 2015 and the Term Loan C financing in January 2015, the Company deferred an additional $ 6.0 million and $0.9 million, respectively, in debt issuance costs. Total unamortized debt issuance costs associated with the 8% Notes and Credit Facility are included in the table above, which amounts are included as a reduction of long-term debt in the condensed consolidated balance sheets in accordance with ASU 2015-03 (Note 2.) These costs are being amortized to interest expense over the life of the debt using the effective interest method. Amortization of debt issuance costs were $ 0.8 million and $0.4 million for the three months ended September 30, 2015 and 2014, respectively, and $1.6 million and $1.1 million for the nine months ended September 30, 2015 and 2014, respectively. The Company’s effective interest rate on the 8% Notes for the nine months ended September 30, 2015 was 12.55% , which represents the contractual rate adjusted for the aforementioned discount and deferred debt issuance costs. Cobank Patronage Credits 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. These credits are recorded in the condensed consolidated statements of income as an offset to interest expense. The Patronage credits were $ 0.2 million for each of the three months ended September 30, 2015 and 2014 and $1.0 million and $0.5 million for the nine months ended September 30, 2015 and 2014, respectively. The aggregate maturities of Term Loan A, Term Loan B and Term Loan C under the Credit Facility are $ 2.0 million in the remainder of 2015, $ 8.0 million in 2016, $ 13.0 million in 2017, $ 70.8 million in 2018 and $ 256.5 million in 2019. The Revolver under the Credit Facility, under which no borrowings are outstanding as of September 30, 2015, matures in full in 2018. The 8% Notes mature for $150.0 million in 2022. 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 September 30, 2015 , the carrying value and accumulated amortization of the related assets were $3.3 million and $ 2.2 million, respectively. The Company also has a financing arrangement with a provider of software services related to the upgrading of internal infrastructure, including certain software licenses, which is classified as a capital lease. The agreement extends through 2016 with payments due annually. As of September 30, 2015, the carrying value and accumulated depreciation of the related assets were $5.9 million and $2.7 million, respectively. As of September 30, 2015 , the combined total net present value of the Company’s future minimum lease payments is $ 2.7 million and the principal portion of these capital lease obligations is due as follows: $ 0.1 million in the remainder of 2015, $ 2.4 million in 2016, $ 0.1 million in 2017, $ 0.1 million in 2018 and less than $ 0.1 million thereafter. |
Supplementary Disclosures Of Ca
Supplementary Disclosures Of Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
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 condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014 : Nine Months Ended September 30, (In thousands) 2015 2014 Cash payments for: Interest (net of amounts capitalized) $ $ Income taxes Cash receipts for: Income tax refunds - Supplemental investing and financing activities: Additions to property, plant and equipment included in accounts payable and other accrued liabilities Obligations incurred under capital leases - Dividends declared on common stock not paid - Cash payments for interest for the nine months ended September 30, 2015 and 2014 in the table above are net of $0.8 million and $ 0.9 million, respectively, of cash received from CoBank for patronage credits (Note 5). The amount of interest capitalized was $0.9 million and $0. 2 million for the nine months ended September 30, 2015 and 2014, respectively. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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 , the Credit Facility (including the current portion) and the 8% Notes as of September 30, 2015 and December 31, 2014. 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 September 30, 2015 and December 31, 2014. Marketable securities and interest rate swap derivatives are recorded in the condensed consolidated balance sheets at fair value (see Notes 3 and 5). The following tables present the placement in the fair value hierarchy of financial assets and liabilities that are measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014: Fair Value Measurements at September 30, 2015 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ $ - $ - $ Commercial paper Debt securities issued by U.S. Government agencies Corporate debt securities - - Total cash equivalents - Marketable securities: Certificates of deposit - - Commercial paper - - Debt securities issued by U.S. Government agencies - - Municipal bonds - - Corporate debt securities - - Total marketable securities - - Total financial assets $ $ $ - $ Financial Liabilities: Interest rate swap derivatives $ - $ $ - $ Total financial liabilities $ - $ $ - $ Fair Value Measurements at December 31, 2014 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ $ - $ - $ Corporate debt securities - - Total cash equivalents - Marketable securities: Commercial paper - - Debt securities issued by U.S. Government agencies - - Municipal bonds - - Corporate debt securities - - Total marketable securities - - Total financial assets $ $ $ - $ Financial Liabilities: Interest rate swap derivatives $ - $ $ - $ Total financial liabilities $ - $ $ - $ The fair value of certificates of deposit, commercial paper and corporate, municipal 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, the Company classifies 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. September 30, 2015 December 31, 2014 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ $ $ $ 8% Notes Due 2022 - - Capital lease obligations The respective fair value s of the Credit Facility and the 8% Notes were estimated based on an internal discounted cash flows analysis that schedules out the estimated cash flows for the future debt and interest repayments and applies a discount factor that is adjusted to reflect estimated changes in market conditions and credit factors. 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 $1.1 million as of September 30, 2015 and $0.9 million as of December 31, 2014, respectively, of which $1.0 million and $0.8 million represents the Company’s investment in CoBank for the respective periods. 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. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Equity | Note 8. Equity Below is a summary of the activity and status of equity as of and for the nine months ended September 30, 2015 : (In thousands, except per share amounts) Common Shares Treasury Shares Common Stock Additional Paid-in Capital Treasury Stock Accumulated Deficit Accumulated Other Comprehensive Loss, net of tax Total Lumos Networks Corp. Stockholders' Equity Noncontrolling Interests Total Equity Balance, December 31, 2014 $ $ $ $ $ $ $ $ Net income attributable to Lumos Networks Corp. Other comprehensive income, net of tax Equity-based compensation expense Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) Stock warrants issued (net of - - issuance costs) Stock option exercises Net income attributable to noncontrolling interests - Balance, September 30, 2015 $ $ $ $ $ $ $ $ |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9. Earnings per Share 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 three and nine months ended September 30, 2015 and 2014 are detailed in the following table. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Numerator: Net income attributable to Lumos Networks Corp. $ $ $ $ Less: net income attributable to Lumos Networks Corp. allocable to participating securities Numerator for basic and diluted earnings per common share Denominator: Weighted average basic shares outstanding Less: weighted average participating securities and nonvested performance-based restricted shares Denominator for basic earnings per common share Plus: potentially dilutive restricted shares and stock options Denominator for diluted earnings per common share Earnings per share - basic $ $ $ $ Earnings per share - diluted $ $ $ $ For the three months ended September 30, 2015 and 2014 , the denominator for diluted earnings per common share excludes 1,016,756 and 586,719 shares, respectively, related to stock options and nonvested restricted stock which would be antidilutive for each period. For the nine months ended September 30, 2015 and 2014, the denominator for diluted earnings per common share excludes 836,149 and 610,219 shares, respectively, related to stock options and nonvested restricted stock which would be antidilutive for each period. The earnings per share calculation for the three and nine months ended September 30, 2015 also excludes the 5,500,000 outstanding stock warrants described in Note 10 as they would be antidilutive for each period. |
Stock Options, Restricted Stock
Stock Options, Restricted Stock and Stock Warrants | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments And Stock Warrant [Abstract] | |
Stock Options, Restricted Stock and Stock Warrants | Note 10. Stock Options, Restricted Stock and Stock Warrants Stock Options and Restricted Stock 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. As of September 30, 2015, the maximum number of shares of common stock available for awards under the Equity and Cash Incentive Plan was 5,500,000 and 1, 202,061 securities remained available for issuance under the 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 6,680 stock options and 368,984 shares of restricted stock under the Equity and Cash Incentive Plan during the nine months ended September 30, 2015. 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. 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 of the outstanding restricted stock awards vest on a graded vesting schedule over a five year period. A summary of the activity and status of the Company’s sto ck options for the nine months ended September 30, 2015 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, 2014 $ Granted during the period Exercised during the period Forfeited during the period Expired during the period Stock options outstanding at September 30, 2015 $ 6.6 years $ Stock options exercisable at September 30, 2015 $ 6 years $ Total stock options outstanding, vested and expected to vest at September 30, 2015 $ $ The total fair value of options that vested during the nine months ended September 30, 2015 was $ 1.0 million. As of September 30, 2015 , there was $ 1.8 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2 .6 years. A summary of the activity and status of the Company’s restricted stock for the nine months ended September 30, 2015 , is as follows: (In thousands, except per share amounts) Shares Weighted-Average Grant Date Fair Value per Share Restricted stock outstanding at December 31, 2014 $ Granted during the period Vested during the period Forfeited during the period Restricted stock outstanding at September 30, 2015 $ As of September 30, 2015, there was $ 6.7 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 2.1 years. In addition to the Equity and Cash Incentive Plan discussed above, the Company has an employee stock purchase plan which commenced in 2011 with 100,000 shares available. New common shares will be issued for purchases under this plan. 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 nine months ended September 30, 2015 , 4, 131 shares were issued under the employee stock purchase plan. Compensation expense associated with the employee stock purchase plan was not material for the nine months ended September 30, 2015 . Stock Warrants On August 6, 2015, in conjunction with the 8 % Notes issuance discussed in Note 5, the Company issued for no additional consideration 5,500,000 warrants (the “Warrants”) to purchase shares of the Company’s common stock at an exercise price of $13.99 . The Warrants are fully vested and exerciseable and may be net-share settled on a cashless basis only until they expire on August 6, 2022. The grant date fair value of the Warrants was $ 4.4 4 per share, which was estimated using the Black-Scholes option pricing model and the following assumptions: Risk-free interest rate % Expected volatility % Expected dividend yield % Expected term 5 years A portion of the net proceeds from the 8% Notes issuance was allocated to the equity-classified Warrants based on the relative fair value of the instruments. The allocated proceeds of $ 23.5 million were recorded in additional paid-in capital on the condensed consolidated balance sheet, net of $ 1.3 million in issuance costs. A summary of the activity and status of the Company’s stock warrants for the nine months ended September 30, 2015, is as follows: (In thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Stock warrants outstanding at December 31, 2014 - $ - Granted during the period Exercised during the period - - Expired during the period - - Stock warrants outstanding at September 30, 2015 $ |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11. Income Taxes Income tax expense for the nine months ended September 30, 2015 and 2014 was $ 6.2 million and $12.4 million, respectively, which represents the federal statutory tax rate applied to pre-tax income and the effects of state income taxes and certain non-deductible charges for each period. The Company’s recurring non-deductible expenses relate primarily to certain non-cash equity-based compensation and, beginning in the third quarter of 2015, non-deductible interest on the 8% Notes, which are treated as applicable high yield discount obligations (“AHYDO”) within the the meaning of Section 163(i)(1) of the Internal Revenue Code, as amended. At September 30, 2015, the Company had federal net operating losses (“NOLs”) of $ 22.1 million, net of adjustments for unrecognized income tax benefits. The Company’s NOLs, if not utilized to reduce taxable income in future periods, will expire in varying amounts from 2022 through 2034 . Management 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. While management believes the Company 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, tax years 201 2 and thereafter remain open and subject to federal and state audit examinations. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 12. 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 condensed consolidated financial statements. The Company has purchase commitments relating to capital projects totaling $ 7.7 million as of September 30, 2015, which are expected to be satisfied during the remainder of 2015. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles Of Consolidation And Basis Of Presentation | Principles of Consolidation and Basis of Presentation The condensed 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, exercise control. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2015 and September 30, 2014 contain all adjustments necessary to present fairly in all material respects the Company’s financial position and the results of operations and cash flows for all periods presented on the respective condensed consolidated financial statements included herein. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 , as adjusted for the change in accounting principle described below. |
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 consolidated 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, stock warrants and equity-based compensation; goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. |
Change in Accounting Principle | Change in Accounting Principle The Company historically presented unamortized debt issuance costs, or fees directly related to issuing debt, as long-term assets on the consolidated balance sheets in accordance with existing GAAP. In the third quarter of 2015, the Company elected early adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”) and applied it retrospectively to all prior periods presented in the financial statements. The guidance simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. Therefore, these costs will continue to be amortized as interest expense over the life of the associated debt instrument. The adoption of ASU 2015-03 resulted in the presentation of $ 10.9 million of debt issuance costs as a reduction to long-term debt in the condensed consolidated balance sheet as of September 30, 2015. The Company also reclassified $5.2 million of debt issuance costs from deferred charges and other assets to long-term debt on the condensed consolidated balance sheet as of December 31, 2014. The adoption of ASU 2015-03 did not impact net income or any other amounts previously reported on the condensed consolidated statements of income or comprehensive income. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or products are delivered, installed and functional, as applicable, the price to the buyer is fixed or determinable and collectability is reasonably assured. 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 to other carriers. Revenues for equipment sales are recognized at the point of sale. |
Cash Equivalents And Marketable Securities | Cash Equivalents and Marketable Securities The Company considers its investment in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company’s marketable securities at September 30, 2015 and December 31, 2014 consist of debt securities not classified as cash equivalents. The Company classifies such debt securities as either held-to-maturity, when the Company has the positive intent and ability to hold the securities to maturity, or available-for-sale. Held-to-maturity debt securities are carried at amortized cost, adjusted for the amortization of premiums or accretion of discounts. Available-for-sale securities are carried at fair value, with 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 September 30, 2015 and December 31, 2014 . |
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 was $ 16.1 million, of which 50 % (approximately $ 8 million) was funded by a grant from the federal government. The project was completed as of 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 was drawn down ratably following the grant reimbursement approvals. The Company received $3.8 million in cash reimbursements during the nine months ended September 30, 2015 . As of September 30, 2015 , the Company had no remaining receivable for the reimbursable portion of the qualified recoverable expenditures and the Company’s pledged account balance was $ 0.4 million, which the Company expects to be released by year end 2015 . The 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 estimates 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 condensed consolidated statements of income. Bad debt expense for each of the three months ended September 30, 2015 and 2014 was $0. 2 million , and bad debt expense for the nine months ended September 30, 2015 and 2014 was $0.4 million and $0.7 million, respectively. The Company’s allowance for doubtful accounts and customer credits was $ 1.4 million and $1.2 million as of September 30, 2015 and December 31, 2014, respectively . The following table presents a roll-forward of the Company’s allowance for doubtful accounts and customer credits from December 31, 2014 to September 30, 2015 : Additions (In thousands) December 31, 2014 Charged to Expense Charged to Other Accounts Deductions September 30, 2015 Allowance for doubtful accounts and customer credits $ $ $ $ $ |
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 FASB Accounting Standards Codification (“ASC”) 360-10-35. Impairment is d etermined 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 September 30, 2015 that would require the Company 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. 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. Buildings are depreciated over a 50 -year life and leasehold improvements, which are categorized in land and buildings, are depreciated over the shorter of the estimated useful lives or the remaining lease terms. Network plant and equipment are generally depreciated over various lives from 3 to 25 years, with a current weighted average life of approximately 17 years. Furniture, fixtures and other equipment are depreciated over various lives from 2 to 24 years. 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 condensed consolidated balance sheets. At September 30, 2015 and December 31, 2014 , other intangibles were comprised of the following: September 30, 2015 December 31, 2014 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ $ $ $ Trademarks and franchise rights 10 to 15 yrs Total $ $ $ $ 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 periodically 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 nine months ended September 30, 2015 . Amortization expense for the three months ended September 30, 2015 and 2014 was $ 0.7 million and $ 2.3 million, respectively, and amortization expense for the nine months ended September 30, 2015 and 2014 was $4.1 million and $6.9 million, respectively. Amortization expense for the remainder of 2015 and for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total Remainder of 2015 $ $ $ 2016 2017 2018 2019 2020 |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and certain trademarks 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 intangible assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. The Company believes there have been no events or circumstances to cause it to evaluate the carrying amount of goodwill or indefinite-lived intangible assets during the nine months ended September 30, 2015 . |
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 (the “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 are being accrued by participants for services rendered beyond that date. For the three and nine months ended September 30, 2015 and 2014 , the components of the Company’s net periodic benefit income for the Pension Plan were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Service cost $ - $ - $ - $ - Interest cost Expected return on plan assets Amortization of loss - - Net periodic benefit income $ $ $ $ Pension Plan assets were valued at $ 53.1 million and $ 58.4 million at September 30, 2015 and December 31, 2014 , respectively. No funding contributions were made during the three or nine months ended September 30, 2015 , and the Company does not expect to make a funding contribution during the remainder of 2015. The Company also provides life insurance benefits for retired employees that meet eligibility requirements through two postretirement welfare benefit plans (the “Other Postretirement Benefit Plans”). The Company had provided retiree medical benefits under these plans until those benefits were terminated effective December 31, 2014 . The Company recognized a curtailment gain of $10.2 million in the condensed consolidated statements of income for the three and nine months ended September 30, 2014 related to the termination of these benefits. The net periodic benefit income for the Other Postretirement Benefit Plans was $10.0 million and $9.7 million for the three and nine months ended September 30, 2014 , respectively, inclusive of the curtailment gain. The net periodic benefit income included interest cost of $0.1 million and $0.4 million, respectively, and less than $0.1 million of service cost and amortization of actuarial losses during each period. The Company did not incur any significant costs associated with these plans during the nine months ended September 30, 2015 . The Company recognized expense for certain nonqualified pension plans for each of the three months ended September 30, 2015 and 2014 of $0.1 million , and $0.1 million and less than $0.1 million of this expense for these periods, respectively, relates to the amortization of actuarial loss. Expense for nonqualified pension plans for the nine months ended September 30, 2015 and 2014 was $0.4 million and $0.3 million, respectively, and $0.3 million and $0.2 million of the expense for these periods, respectively, relates to the amortization of actuarial loss. The total amount reclassified out of accumulated other comprehensive loss related to amortization of actuarial losses for retirement plans for the three months ended September 30, 2015 and 2014 was $ 0. 3 million and $ 0.1 million, respectively, and $1.0 million and $0.2 million for the nine months ended September 30, 2015 and 2014, respectively, all of which has been reclassified to selling, general and administrative expenses on the condensed consolidated statements of income. |
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 condensed 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 is adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model. 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 and the Company’s 401(k) matching contributions was $1. 5 million and $ 1.1 million for the three months ended September 30, 2015 and 2014 , respectively, and $4.2 million and $3.1 million for the nine months ended September 30, 2015 and 2014, respectively, which amounts are included in selling, general and administrative expenses on the condensed consolidated statements of income. Future charges for equity-based compensation related to instruments outstanding at September 30, 2015 are estimated to be $ 1.4 million for the remainder of 2015, $ 4.0 million in 2016, $ 3.2 million in 2017, $ 0.9 million in 2018, and less than $ 0.1 million thereafter. |
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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) , which defers the effective date of ASU 2014-09 for public business entities from annual reporting periods beginning after December 15, 2016, to annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is still evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 820 ): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after September 1, 2016. The Company does not expect the future adoption of ASU 2015-02 to have a material impact on the Company’s consolidated financial statements and disclosure s. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule Of Valuation And Qualifying Accounts [Table Text Block] | Additions (In thousands) December 31, 2014 Charged to Expense Charged to Other Accounts Deductions September 30, 2015 Allowance for doubtful accounts and customer credits $ $ $ $ $ |
Finite-Lived Intangibles Assets | September 30, 2015 December 31, 2014 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ $ $ $ Trademarks and franchise rights 10 to 15 yrs Total $ $ $ $ |
Schedule Of Future Amortization Expense | (In thousands) Customer Relationships Trademarks and Franchise Rights Total Remainder of 2015 $ $ $ 2016 2017 2018 2019 2020 |
Schedule Of Net Periodic Benefit Income | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Service cost $ - $ - $ - $ - Interest cost Expected return on plan assets Amortization of loss - - Net periodic benefit income $ $ $ $ |
Cash Equivalents And Marketab22
Cash Equivalents And Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value | (In thousands) September 30, 2015 December 31, 2014 Cash equivalents: Money market mutual funds $ $ Commercial paper - Debt securities issued by U.S. Government agencies - Corporate debt securities Total cash equivalents Marketable securities: Certificates of deposit - Commercial paper Debt securities issued by U.S. Government agencies Municipal bonds Corporate debt securities Total marketable securities, available-for-sale Total cash equivalents and marketable securities $ $ |
Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities | (In thousands) Total Due in one year or less $ Due after one year through two years Total debt securities $ |
Disclosures About Segments of23
Disclosures About Segments of an Enterprise and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | |
Summarized Financial Information Of Reportable Segments | (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended September 30, 2015: Operating revenues $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) - Capital expenditures - For the nine months ended September 30, 2015: Operating revenues $ $ $ $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) - Capital expenditures - (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended September 30, 2014: Operating revenues $ $ $ $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) Capital expenditures - For the nine months ended September 30, 2014: Operating revenues $ $ $ $ - $ Network access costs - - Network operating and selling costs - Other general and administrative expenses Adjusted EBITDA (1) Capital expenditures - (1) T he Company’s CODMs evaluate 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. |
Reconciliation Of Net Income Attributable to Lumos Networks Corp. to Adjusted EBITDA | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Net Income Attributable to Lumos Networks Corp. $ $ $ $ Net Income Attributable to Noncontrolling Inter ests Net income Income tax expense Interest expense Gain on interest rate swap derivatives Other (income) expenses, net Operating Income Depreciation and amortization and accretion of asset retirement obligations Amortization of actuarial losses Equity-based compensation Restructuring charges - - - Employee separation charges - - - Adjusted EBITDA $ $ $ $ |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-Term Debt | September 30, 2015 December 31, 2014 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ $ $ $ 8% Notes due 2022 - - Capital lease obligations - - Long-term debt Less: Current portion of long-term debt - - Long-term debt, excluding current portion $ $ $ $ |
Supplementary Disclosures Of 25
Supplementary Disclosures Of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | |
Supplementary Disclosures of Cash Flow Information | Nine Months Ended September 30, (In thousands) 2015 2014 Cash payments for: Interest (net of amounts capitalized) $ $ Income taxes Cash receipts for: Income tax refunds - Supplemental investing and financing activities: Additions to property, plant and equipment included in accounts payable and other accrued liabilities Obligations incurred under capital leases - Dividends declared on common stock not paid - |
Fair Value Of Financial Instr26
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Of Financial Instruments [Abstract] | |
Summary Of Financial Assets And Liabilities Measured At Fair Value | Fair Value Measurements at September 30, 2015 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ $ - $ - $ Commercial paper Debt securities issued by U.S. Government agencies Corporate debt securities - - Total cash equivalents - Marketable securities: Certificates of deposit - - Commercial paper - - Debt securities issued by U.S. Government agencies - - Municipal bonds - - Corporate debt securities - - Total marketable securities - - Total financial assets $ $ $ - $ Financial Liabilities: Interest rate swap derivatives $ - $ $ - $ Total financial liabilities $ - $ $ - $ Fair Value Measurements at December 31, 2014 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ $ - $ - $ Corporate debt securities - - Total cash equivalents - Marketable securities: Commercial paper - - Debt securities issued by U.S. Government agencies - - Municipal bonds - - Corporate debt securities - - Total marketable securities - - Total financial assets $ $ $ - $ Financial Liabilities: Interest rate swap derivatives $ - $ $ - $ Total financial liabilities $ - $ $ - $ |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | September 30, 2015 December 31, 2014 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ $ $ $ 8% Notes Due 2022 - - Capital lease obligations |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary Of Activity And Status Of Equity | (In thousands, except per share amounts) Common Shares Treasury Shares Common Stock Additional Paid-in Capital Treasury Stock Accumulated Deficit Accumulated Other Comprehensive Loss, net of tax Total Lumos Networks Corp. Stockholders' Equity Noncontrolling Interests Total Equity Balance, December 31, 2014 $ $ $ $ $ $ $ $ Net income attributable to Lumos Networks Corp. Other comprehensive income, net of tax Equity-based compensation expense Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) Stock warrants issued (net of - - issuance costs) Stock option exercises Net income attributable to noncontrolling interests - Balance, September 30, 2015 $ $ $ $ $ $ $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Basic And Diluted Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Numerator: Net income attributable to Lumos Networks Corp. $ $ $ $ Less: net income attributable to Lumos Networks Corp. allocable to participating securities Numerator for basic and diluted earnings per common share Denominator: Weighted average basic shares outstanding Less: weighted average participating securities and nonvested performance-based restricted shares Denominator for basic earnings per common share Plus: potentially dilutive restricted shares and stock options Denominator for diluted earnings per common share Earnings per share - basic $ $ $ $ Earnings per share - diluted $ $ $ $ |
Stock Options, Restricted Sto29
Stock Options, Restricted Stock and Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments And Stock Warrant [Abstract] | |
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, 2014 $ Granted during the period Exercised during the period Forfeited during the period Expired during the period Stock options outstanding at September 30, 2015 $ 6.6 years $ Stock options exercisable at September 30, 2015 $ 6 years $ Total stock options outstanding, vested and expected to vest at September 30, 2015 $ $ |
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, 2014 $ Granted during the period Vested during the period Forfeited during the period Restricted stock outstanding at September 30, 2015 $ |
Summary of Fair Value Assumptions, Warrants | Risk-free interest rate % Expected volatility % Expected dividend yield % Expected term 5 years |
Summary of Warrant Activity | (In thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Stock warrants outstanding at December 31, 2014 - $ - Granted during the period Exercised during the period - - Expired during the period - - Stock warrants outstanding at September 30, 2015 $ |
Organization (Details)
Organization (Details) - USD ($) $ in Millions | Sep. 14, 2015 | Sep. 30, 2015 | Mar. 17, 2015 |
Organization [Abstract] | |||
Common stock sold by Quadrangle in secondary offering, shares | 1,600,000 | ||
Sale of Stock, Number of Shares Issued in Transaction | 591,898 | ||
Other nonoperating costs | $ 0.3 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2010USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 10,900 | $ 5,200 | ||||
Cash reimbursement received from broadband stimulus grant | 3,838 | $ 116 | ||||
Restricted cash | $ 370 | 370 | 4,208 | |||
Bad Debt Expenses | 200 | $ 200 | 400 | 700 | ||
Allowance for doubtful accounts | 1,430 | 1,430 | 1,217 | |||
Capitalized costs incurred to renew or extend the term of a recognized intangible asset | 0 | |||||
Amortization expense | 700 | 2,300 | $ 4,077 | 6,890 | ||
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 | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 53,100 | $ 53,100 | $ 58,400 | |||
Defined Benefit Plan, Contributions by Employer | $ 0 | $ 0 | ||||
Qualified Nonpension Postretirement Benefit Plans | 2 | 2 | ||||
Nonqualified pension plans expense | $ 100 | $ 400 | 300 | |||
Amount of nonqualified pension plans expense related to amortization of actuarial loss | 100 | 300 | 200 | |||
Other Comprehensive Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 300 | 100 | 1,000 | 200 | ||
Equity-based compensation expense | 1,454 | 1,123 | 4,236 | 3,109 | ||
Future charges for equity-based compensation, remainder of 2015 | 1,400 | 1,400 | ||||
Future charges for equity-based compensation, 2016 | 4,000 | 4,000 | ||||
Future charges for equity-based compensation, 2017 | 3,200 | 3,200 | ||||
Future charges for equity-based compensation, 2018 | 900 | $ 900 | ||||
Land, Buildings and Improvements [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 50 | |||||
Broadband Services Project Due 2015 [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total project cost | $ 16,100 | |||||
Percentage funded by federal government grants | 50.00% | |||||
Federal government grants | $ 8,000 | |||||
Percentage of deposits | 100.00% | |||||
Portion of grants deposited into pledged account | $ 8,000 | |||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Amount of nonqualified pension plans expense related to amortization of actuarial loss | 100 | |||||
Future charges for equity-based compensation, 2019 | $ 100 | $ 100 | ||||
Maximum [Member] | Telephony Equipment [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | P25Y | |||||
Maximum [Member] | Furniture and Fixtures [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | P24Y | |||||
Minimum [Member] | Telephony Equipment [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | P3Y | |||||
Minimum [Member] | Furniture and Fixtures [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | P2Y | |||||
Weighted Average [Member] | Telephony Equipment [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | P17Y | |||||
Other Postretirement Benefit Plans [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Curtailment gain recognized in net income | (10,200) | (10,200) | ||||
Net periodic benefit income | (10,000) | $ 0 | (9,700) | |||
Interest cost | 100 | 400 | ||||
Other Postretirement Benefit Plans [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Amortization of loss | 100 | 100 | ||||
Other Postretirement Benefit Plans Service Cost | $ 100 | $ 100 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Schedule Of Allowance For Doubtful Accounts) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |
Allowance for doubtful accounts, beginning | $ 1,217 |
Charged to Expense | 413 |
Charged to Other Accounts | 197 |
Deductions | (397) |
Allowance for doubtful accounts, Balance at End of Period | $ 1,430 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Finite-Lived Intangibles Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (94,163) | $ (90,086) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 103,108 | 103,108 |
Accumulated Amortization | (92,362) | (88,406) |
Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 2,862 | 2,862 |
Accumulated Amortization | $ (1,801) | $ (1,680) |
Minimum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 6 years | |
Minimum [Member] | Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 10 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 15 years | |
Maximum [Member] | Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 15 years |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Schedule Of Future Amortization Expense) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2015 | $ 689 |
2,016 | 2,412 |
2,017 | 2,093 |
2,018 | 1,781 |
2,019 | 1,513 |
2,020 | 1,146 |
Trademarks And Franchise Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2015 | 41 |
2,016 | 163 |
2,017 | 163 |
2,018 | 163 |
2,019 | 152 |
2,020 | $ 48 |
Summary Of Significant Accoun35
Summary Of Significant Accounting Policies (Schedule Of Net Periodic Benefit Income) (Details) - Defined Benefit Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 666 | $ 656 | $ 1,998 | $ 1,968 |
Expected return on plan assets | (1,028) | (1,093) | (3,084) | (3,279) |
Amortization of loss | 248 | 743 | ||
Net periodic benefit income | $ (114) | $ (437) | $ (343) | $ (1,311) |
Cash Equivalents And Marketab36
Cash Equivalents And Marketable Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Total proceeds from the sale or maturity of available-for-sale marketable securities | $ 11,900,000 | $ 22,700,000 | $ 29,903,000 | $ 36,856,000 |
Net realized gains or losses on available-for-sale securities | 0 | 0 | 0 | 0 |
Maximum [Member] | ||||
Net unrealized holding gains on available-for-sale securities | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Cash Equivalents And Marketab37
Cash Equivalents And Marketable Securities (Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | $ 52,768 | $ 1,406 |
Total marketable securities, available-for-sale | 60,875 | 16,870 |
Total cash equivalents and marketable securities | 113,643 | 18,276 |
Money Market Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 41,614 | 49 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 2,912 | 1,357 |
Commercial Paper ST [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 2,249 | |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 5,993 | |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 1,500 | |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 6,187 | 998 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 351 | 353 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 27,752 | 12,785 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | $ 25,085 | $ 2,734 |
Cash Equivalents And Marketab38
Cash Equivalents And Marketable Securities (Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Cash Equivalents And Marketable Securities [Abstract] | ||
Due in one year or less | $ 55,721 | |
Due after one year through two years | 5,154 | |
Total debt securities | $ 60,875 | $ 16,870 |
Disclosures About Segments of39
Disclosures About Segments of an Enterprise and Related Information (Narrative) (Details) - customer | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Number of customers that individually accounted for approximately 10% of total revenues | 1 | |||
AT&T [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage to total revenue | 8.00% | 10.00% | 8.00% | 9.00% |
Disclosures About Segments of40
Disclosures About Segments of an Enterprise and Related Information (Summarized Financial Information Of Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | $ 50,969 | $ 50,516 | $ 152,417 | $ 150,771 | |
Network access costs | 9,932 | 10,250 | 29,556 | 31,154 | |
Network operating and selling costs | 12,220 | 11,541 | 35,770 | 32,334 | |
Other general and administrative expenses | 8,334 | (2,996) | 24,887 | 12,630 | |
Adjusted EBITDA | [1] | 22,274 | 32,908 | 67,452 | 78,198 |
Capital expenditures | 24,769 | 26,863 | 80,118 | 64,151 | |
Data [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 28,623 | 26,488 | 84,479 | 79,332 | |
Network access costs | 4,533 | 3,937 | 12,242 | 12,030 | |
Network operating and selling costs | 7,991 | 6,408 | 23,799 | 18,091 | |
Other general and administrative expenses | 3,704 | 3,159 | 11,184 | 10,115 | |
Adjusted EBITDA | [1] | 12,395 | 12,984 | 37,254 | 39,096 |
Capital expenditures | 25,418 | 19,387 | 72,055 | 44,181 | |
R&SB [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 16,560 | 17,668 | 50,835 | 54,605 | |
Network access costs | 5,399 | 6,313 | 17,314 | 19,124 | |
Network operating and selling costs | 3,962 | 4,745 | 11,172 | 13,162 | |
Other general and administrative expenses | 2,154 | 2,107 | 6,350 | 7,042 | |
Adjusted EBITDA | [1] | 5,045 | 4,503 | 15,999 | 15,277 |
Capital expenditures | 1,538 | 2,244 | 6,924 | 7,231 | |
RLEC Access [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 5,786 | 6,360 | 17,103 | 16,834 | |
Network operating and selling costs | 267 | 388 | 799 | 1,081 | |
Other general and administrative expenses | 685 | 758 | 2,105 | 2,135 | |
Adjusted EBITDA | [1] | 4,834 | 5,214 | 14,199 | 13,618 |
Corporate (Unallocated) [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other general and administrative expenses | 1,791 | (9,020) | 5,248 | (6,662) | |
Adjusted EBITDA | [1] | 10,207 | 10,207 | ||
Capital expenditures | $ (2,187) | $ 5,232 | $ 1,139 | $ 12,739 | |
[1] | The Company's CODMs evaluate 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. |
Disclosures About Segments of41
Disclosures About Segments of an Enterprise and Related Information (Reconciliation Of Net Income To Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | |||||
Net Income Attributable to Lumos Networks Corp. | $ 1,279 | $ 10,207 | $ 7,352 | $ 18,115 | |
Net Income Attributable to Noncontrolling Interests | 33 | 3 | 111 | 69 | |
Net Income | 1,312 | 10,210 | 7,463 | 18,184 | |
Income Tax Expense | 1,774 | 6,713 | 6,221 | 12,402 | |
Interest expense | 5,817 | 3,969 | 13,022 | 11,755 | |
Gain on interest rate swap derivatives | (198) | (302) | (445) | (395) | |
Other (income) expenses, net | (58) | (179) | 89 | (529) | |
Operating Income | 8,647 | 20,411 | 26,350 | 41,417 | |
Depreciation and amortization and accretion of asset retirement obligations | 11,836 | 11,310 | 35,217 | 33,236 | |
Amortization of actuarial losses | 337 | 64 | 1,012 | 192 | |
Equity-based compensation | 1,454 | 1,123 | 4,236 | 3,109 | |
Restructuring charges | 637 | ||||
Employee separation charges | 244 | ||||
Adjusted EBITDA | [1] | $ 22,274 | $ 32,908 | $ 67,452 | $ 78,198 |
[1] | The Company's CODMs evaluate 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. |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Aug. 06, 2015USD ($)shares | Apr. 30, 2013USD ($) | Jul. 31, 2013 | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Jan. 02, 2015USD ($) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit borrowing capacity | $ 425,000,000 | |||||||||
Amount outstanding retired | 311,000,000 | |||||||||
Principal payments on senior secured term loans | $ 45,953,000 | $ 3,313,000 | ||||||||
Line of credit, interest coverage ratio, minimum | item | 3.25 | |||||||||
Line of credit, leverage ratio | item | 3.89 | 3.89 | ||||||||
Line of credit, interest coverage ratio | item | 6.41 | 6.41 | ||||||||
Fixed interest rate | 0.80% | 0.50% | ||||||||
Notional amount remaining | $ 181,300,000 | $ 181,300,000 | ||||||||
Gain on interest rate swap derivatives | 198,000 | $ 302,000 | 445,000 | 395,000 | ||||||
Payment of financing costs | 8,192,000 | |||||||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Warrants Issued | shares | 5,500,000 | |||||||||
Debt Instrument, Unamortized Discount | $ 24,800,000 | |||||||||
Proceeds from Issuance of Warrants | 23,500,000 | |||||||||
Portion of Debt Discount offset from proceeds allocated to debt | 1,300,000 | |||||||||
Debt discount, amount offset from proceeds | 1,500,000 | |||||||||
Amortization of debt issuance costs | 800,000 | 400,000 | 1,600,000 | 1,100,000 | ||||||
Patronage credits | 200,000 | $ 200,000 | 1,000,000 | $ 500,000 | ||||||
Maturities of long-term debt, thereafter | 150,000,000 | 150,000,000 | ||||||||
Future minimum lease payments | 2,700,000 | 2,700,000 | ||||||||
Future minimum lease payments, remainder of 2015 | 100,000 | 100,000 | ||||||||
Future minimum lease payments, 2016 | 2,400,000 | 2,400,000 | ||||||||
Future minimum lease payments, 2017 | 100,000 | 100,000 | ||||||||
Future minimum lease payments, 2018 | 100,000 | 100,000 | ||||||||
Future minimum lease payments, thereafter | 100,000 | $ 100,000 | ||||||||
January 1, 2015 Through December 31, 2015 [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit, leverage ratio, maximum | item | 5 | |||||||||
January 1, 2016 Through December 31, 2016 | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit, leverage ratio, maximum | item | 4.75 | |||||||||
January 1, 2017 Through December 31, 2017 | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit, leverage ratio, maximum | item | 4.50 | |||||||||
January 1, 2018 Through December 31, 2018 | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit, leverage ratio, maximum | item | 4.25 | |||||||||
After December 31, 2018 | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit, leverage ratio, maximum | item | 4 | |||||||||
Vehicles [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Capital leases | 3,300,000 | $ 3,300,000 | ||||||||
Accumulated amortization | 2,200,000 | 2,200,000 | ||||||||
Software Licenses [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Capital leases | 5,900,000 | 5,900,000 | ||||||||
Accumulated amortization | 2,700,000 | 2,700,000 | ||||||||
Senior Secured Five Year Amortizing Term Loan [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit current borrowing capacity | $ 100,000,000 | |||||||||
Term of loan | 5 years | |||||||||
Senior Secured Six Year Amortizing Term Loan [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit current borrowing capacity | $ 275,000,000 | |||||||||
Senior Secured Revolving Credit Facility [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit current borrowing capacity | $ 50,000,000 | |||||||||
Term of loan | 5 years | |||||||||
Revolver [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Amount outstanding, credit facility | $ 0 | $ 0 | ||||||||
Basis spread on variable rate | 3.00% | |||||||||
Term Loan A [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Basis spread on variable rate | 3.00% | |||||||||
Term Loan A [Member] | September 30, 2014 Through December 31, 2016 [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Quarterly payments per annum | 1.25% | 1.25% | ||||||||
Term Loan A [Member] | After December 31, 2016 [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Quarterly payments per annum | 2.50% | 2.50% | ||||||||
Term Loan B [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Basis spread on variable rate | 3.25% | |||||||||
Quarterly payments per annum | 1.00% | 1.00% | ||||||||
Term Loan A, B And C [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Principal payments on senior secured term loans | 40,000,000 | |||||||||
Combined notional amount of swap agreements percentage of aggregate outstanding balance of term loans | 50.00% | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.99% | 3.99% | ||||||||
Debt issuance costs | $ 900,000 | |||||||||
Maturities of long-term debt, remainder of 2015 | $ 2,000,000 | 2,000,000 | ||||||||
Maturities of long-term debt, 2016 | 8,000,000 | 8,000,000 | ||||||||
Maturities of long-term debt, 2017 | 13,000,000 | 13,000,000 | ||||||||
Maturities of long-term debt, 2018 | 70,800,000 | 70,800,000 | ||||||||
Maturities of long-term debt, 2019 | $ 256,500,000 | $ 256,500,000 | ||||||||
Term Loan C [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Line of credit current borrowing capacity | $ 28,000,000 | |||||||||
Basis spread on variable rate | 3.25% | 3.25% | ||||||||
Quarterly payments per annum | 1.00% | 1.00% | ||||||||
Unsecured Debt [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 12.55% | 12.55% | ||||||||
Debt Instrument, Face Amount | 150,000,000 | |||||||||
Payment of financing costs | $ 7,100,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |||||||
Debt issuance costs | $ 6,000,000 | |||||||||
Minimum [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Term of capital leases | 4 years | |||||||||
Maximum [Member] | ||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ||||||||||
Term of capital leases | 5 years |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Less: current portion of long term debt | $ 10,454 | $ 10,227 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 457,306 | 357,950 |
Long-term Debt [Member] | ||
Credit facility | 350,422 | 368,375 |
8% Notes due 2022 | 150,000 | |
Capital lease obligations | 2,691 | 5,008 |
Long-term debt | 503,113 | 373,383 |
Less: current portion of long term debt | 10,454 | 10,227 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 492,659 | 363,156 |
Unamortized Discount and Debt Issuance Costs [Member] | ||
Credit facility | 5,072 | 5,206 |
8% Notes due 2022 | 30,281 | |
Long-term debt | 35,353 | 5,206 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | $ 35,353 | $ 5,206 |
Supplementary Disclosures Of 44
Supplementary Disclosures Of Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | ||
Interest (net of amounts capitalized) | $ 9,462 | $ 9,619 |
Income taxes | 393 | 141 |
Income tax refunds | 216 | |
Additions to property, plant and equipment included in accounts payable and other accrued liabilities | 7,683 | 1,917 |
Obligations incurred under capital leases | 87 | |
Dividends declared on common stock not paid | 3,134 | |
Cash received from patronage credits | 800 | 900 |
Interest capitalized | $ 900 | $ 200 |
Fair Value Of Financial Instr45
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investments | $ 1,119 | $ 914 |
CoBank [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term investments for which it is not practicable to estimate fair value | $ 1,000 | $ 800 |
Fair Value Of Financial Instr46
Fair Value Of Financial Instruments (Summary Of Financial Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 52,768 | $ 1,406 |
Total marketable securities | 60,875 | 16,870 |
Total financial assets | 113,643 | 18,276 |
Total financial liabilities | 220 | 665 |
Interest Rate Swap Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 220 | 665 |
Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 41,614 | 49 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 1,500 | |
Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,249 | |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 6,187 | 998 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 5,993 | |
Total marketable securities | 25,085 | 2,734 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 351 | 353 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,912 | 1,357 |
Total marketable securities | 27,752 | 12,785 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 41,614 | 49 |
Total financial assets | 41,614 | 49 |
Level 1 [Member] | Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 41,614 | 49 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 11,154 | 1,357 |
Total marketable securities | 60,875 | 16,870 |
Total financial assets | 72,029 | 18,227 |
Total financial liabilities | 220 | 665 |
Level 2 [Member] | Interest Rate Swap Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 220 | 665 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 1,500 | |
Level 2 [Member] | Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,249 | |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 6,187 | 998 |
Level 2 [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 5,993 | |
Total marketable securities | 25,085 | 2,734 |
Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 351 | 353 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,912 | 1,357 |
Total marketable securities | $ 27,752 | $ 12,785 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
Total marketable securities | ||
Total financial assets | ||
Total financial liabilities | ||
Level 3 [Member] | Interest Rate Swap Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | ||
Level 3 [Member] | Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | ||
Level 3 [Member] | Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
Level 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | ||
Level 3 [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
Total marketable securities | ||
Level 3 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | ||
Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
Total marketable securities |
Fair Value Of Financial Instr47
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital lease obligations | $ 2,691 | $ 5,008 |
Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital lease obligations | 2,648 | 5,008 |
Term Loan A, B And C [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | 345,350 | 368,375 |
Term Loan A, B And C [Member] | Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | 307,583 | $ 370,769 |
Unsecured Debt [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
8% Notes due 2022 | 119,719 | |
Unsecured Debt [Member] | Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
8% Notes due 2022 | $ 131,574 |
Equity (Summary Of Activity And
Equity (Summary Of Activity And Status Of Equity) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | $ 93,459 | |||
Net income attributable to Lumos Networks Corp. | $ 1,279 | $ 10,207 | 7,352 | $ 18,115 |
Other comprehensive income, net of tax | 218 | $ 750 | 637 | $ 830 |
Equity-based compensation expense | 3,357 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | 605 | |||
Stock warrants issued (net of issuance costs) | $ 22,147 | |||
Stock options exercises, shares | 27 | |||
Stock option exercises | $ 287 | |||
Net income attributable to noncontrolling interests | 111 | |||
Balance, September 30, 2015 | 127,955 | 127,955 | ||
Common Stock [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | $ 226 | |||
Balance, December 31, 2014, shares | 22,579 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | $ 4 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits), shares | 356 | |||
Stock options exercises, shares | 27 | |||
Balance, September 30, 2015 | $ 230 | $ 230 | ||
Balance, September 30, 2015, shares | 22,962 | 22,962 | ||
Treasury Stock [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | $ (41) | |||
Balance, December 31, 2014, shares | 35 | |||
Net income attributable to Lumos Networks Corp. | ||||
Other comprehensive income, net of tax | ||||
Equity-based compensation expense | ||||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | $ 3 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits), shares | (27) | |||
Stock warrants issued (net of issuance costs) | ||||
Stock option exercises | ||||
Net income attributable to noncontrolling interests | ||||
Balance, September 30, 2015 | $ (38) | $ (38) | ||
Balance, September 30, 2015, shares | 8 | 8 | ||
Additional Paid-In Capital [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | $ 143,545 | |||
Equity-based compensation expense | 3,357 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | 598 | |||
Stock warrants issued (net of issuance costs) | 22,147 | |||
Stock option exercises | $ 287 | |||
Balance, September 30, 2015 | 169,934 | 169,934 | ||
Accumulated Deficit [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | (38,567) | |||
Net income attributable to Lumos Networks Corp. | 7,352 | |||
Balance, September 30, 2015 | (31,215) | (31,215) | ||
Accumulated Other Comprehensive Loss, Net Of Tax [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | (12,486) | |||
Other comprehensive income, net of tax | 637 | |||
Balance, September 30, 2015 | (11,849) | (11,849) | ||
Total Lumos Networks Corp. Stockholders' Equity [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | 92,677 | |||
Net income attributable to Lumos Networks Corp. | 7,352 | |||
Other comprehensive income, net of tax | 637 | |||
Equity-based compensation expense | 3,357 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | 605 | |||
Stock warrants issued (net of issuance costs) | 22,147 | |||
Stock option exercises | 287 | |||
Balance, September 30, 2015 | 127,062 | 127,062 | ||
Noncontrolling Interests [Member] | ||||
Stockholders Equity [Line Items] | ||||
Balance, December 31, 2014 | 782 | |||
Net income attributable to noncontrolling interests | 111 | |||
Balance, September 30, 2015 | $ 893 | $ 893 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Options And Nonvested Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded from computation of diluted earnings per common share | 1,016,756 | 586,719 | 836,149 | 610,219 |
Warrants and Rights Subject to Mandatory Redemption [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded from computation of diluted earnings per common share | 5,500,000 | 5,500,000 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Lumos Networks Corp. | $ 1,279 | $ 10,207 | $ 7,352 | $ 18,115 |
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | (44) | (261) | (241) | (446) |
Numerator for basic and diluted earnings per common share | $ 1,235 | $ 9,946 | $ 7,111 | $ 17,669 |
Weighted average basic shares outstanding | 22,872 | 22,396 | 22,775 | 22,272 |
Less: weighted average participating securities and nonvested performance-based restricted shares | (806) | (593) | (767) | (569) |
Denominator for basic earnings per common share | 22,066 | 21,803 | 22,008 | 21,703 |
Plus: potentially dilutive restricted shares and stock options | 202 | 312 | 319 | 339 |
Denominator for diluted earnings per common share | 22,268 | 22,115 | 22,327 | 22,042 |
Earnings per share - basic | $ 0.06 | $ 0.46 | $ 0.32 | $ 0.81 |
Earnings per share - diluted | $ 0.06 | $ 0.45 | $ 0.32 | $ 0.80 |
Stock Options, Restricted Sto51
Stock Options, Restricted Stock and Stock Warrants (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 06, 2015 | Aug. 06, 2015 | Sep. 30, 2015 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options issued | 6,680 | |||
Number of shares issued during the period | 368,984 | |||
Stock plan vesting description | Options generally cliff vest on the first anniversary of the grant date for non-employee directors. 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 of the outstanding restricted stock awards vest on a graded vesting schedule over a five year period. | |||
Vesting schedule | 5 years | |||
Total fair value of options vested | $ 1 | |||
Shares available for employee stock purchase plan | 100,000 | 100,000 | ||
Shares price percentage | 85.00% | |||
Shares issued under the employee stock purchase plan | 4,131 | |||
Grant date fair value of warrants | $ 4.44 | $ 4.44 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 13.99 | $ 13.99 | ||
Proceeds from Issuance of Warrants | $ 23.5 | |||
Portion of Debt Discount offset from proceeds allocated to debt | $ 1.3 | |||
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 1.8 | $ 1.8 | ||
Unrecognized compensation cost recognition period, in years | 2 years 7 months 6 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 6.7 | $ 6.7 | ||
Unrecognized compensation cost recognition period, in years | 2 years 1 month 6 days | |||
Stock Warrants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued during the period | 5,500,000 | |||
Grant date fair value of warrants | $ 13.99 | $ 13.99 | ||
Proceeds from Issuance of Warrants | $ 23.5 | |||
Warrants issued to purchase shares of common stock | 5,500,000 | |||
Portion of Debt Discount offset from proceeds allocated to debt | $ 1.3 | |||
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 | 5,500,000 | 5,500,000 | ||
Securities remained available for issuance | 1,202,061 | 1,202,061 | ||
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. | |||
Unsecured Debt [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% |
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 |
Stock Options, Restricted Sto52
Stock Options, Restricted Stock and Stock Warrants (Summary Of Stock Options Activity) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Stock Plans [Abstract] | |
Stock options outstanding at December 31, 2014, Shares | shares | 2,226,000 |
Stock options outstanding at December 31, 2014, Weighted-Average Exercise Price per Share | $ 12.49 |
Granted during the period, Shares | shares | 6,680 |
Granted during the period, Weighted-Average Exercise Price per Share | $ 14.87 |
Exercised during the period, Shares | shares | (27,000) |
Exercised during the period, Weighted-Average Exercise Price per Share | $ 9.97 |
Forfeited during the period, Shares | shares | (8,000) |
Forfeited during the period, Weighted-Average Exercise Price per Share | $ 14.23 |
Expired during the period, Shares | shares | (16,000) |
Expired during the period, Weighted-Average Exercise Price per Share | $ 5.70 |
Stock options outstanding at September 30, 2015, Shares | shares | 2,182,000 |
Stock options outstanding at September 30, 2015, Weighted-Average Exercise Price per Share | $ 12.57 |
Stock options outstanding at September 30, 2015, Weighted-Average Remaining Contractual Term, in years | 6 years 7 months 6 days |
Stock options outstanding at September 30, 2015, Aggregate Intrinsic Value | $ | $ 2,541 |
Stock options exercisable at September 30, 2015, Shares | shares | 1,224,000 |
Stock options exercisable at September 30, 2015, Weighted-Average Exercise Price per Share | $ 12.05 |
Stock options exercisable at September 30, 2015, Weighted-Average Remaining Contractual Term, in years | 6 years |
Stock options exercisable at September 30, 2015, Aggregate Intrinsic Value | $ | $ 1,805 |
Total stock options outstanding, vested and expected to vest at September 30, 2015, Shares | shares | 1,855,000 |
Total stock options outstanding, vested and expected to vest at September 30, 2015, Weighted-Average Exercise Price per Share | $ 12.40 |
Total stock options outstanding, vested and expected to vest at September 30, 2015, Aggregate Intrinsic Value | $ | $ 2,461 |
Stock Options, Restricted Sto53
Stock Options, Restricted Stock and Stock Warrants (Summary Of Restricted Stock Awards Activity) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted during the period, Shares | shares | 368,984 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock outstanding at December 31, 2014, Shares | shares | 614,000 |
Stock outstanding at December 31, 2014, Weighted Average Grant Date Fair Value per Share | $ 13.26 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $ 15.59 |
Vested during the period, Shares | shares | (91,000) |
Vested during the period, Weighted Average Grant Date Fair Value per Share | $ 11.87 |
Forfeited during the period, Shares | shares | (24,000) |
Forfeited during the period, Weighted Average Grant Date Fair Value per Share | $ 18.04 |
Stock outstanding at September 30, 2015, Shares | shares | 868,000 |
Stock outstanding at September 30, 2015, Weighted Average Grant Date Fair Value per Share | $ 14.26 |
Stock Options, Restricted Sto54
Stock Options, Restricted Stock and Stock Warrants (Grant Date Fair Value of Warrants estimated using Black-Scholes Option Pricing Model and Assumptions) (Details) - Stock Warrants [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.61% |
Expected volatility | 41.53% |
Expected dividend yield | 0.00% |
Expected term | 5 years |
Stock Options, Restricted Sto55
Stock Options, Restricted Stock and Stock Warrants (Summary of Stocvk Warrant Activity) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Granted during the period, Shares | 368,984 |
Stock Warrants [Member] | |
Granted during the period, Shares | 5,500,000 |
Stock outstanding at September 30, 2015, Shares | 5,500,000 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 13.99 |
Stock outstanding at September 30, 2015, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 13.99 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax [Line Items] | ||||
Income Tax Expense | $ 1,774 | $ 6,713 | $ 6,221 | $ 12,402 |
Federal [Member] | ||||
Income Tax [Line Items] | ||||
Net operating losses | $ 22,100 | $ 22,100 | ||
Minimum [Member] | ||||
Income Tax [Line Items] | ||||
NOL expiration range | 2,022 | |||
Maximum [Member] | ||||
Income Tax [Line Items] | ||||
NOL expiration range | 2,034 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Sep. 30, 2015USD ($) |
Commitments And Contingencies [Abstract] | |
Purchase commitments relating to capital expenditures | $ 7.7 |