Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 | 23,211,325 | ||
Entity Public Float | $ 329,427,269 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 13,267 | $ 14,140 |
Marketable securities | 88,811 | 16,870 |
Restricted cash | 4,208 | |
Accounts receivable, net of allowance of $1,235 ($1,217 in 2014) | 20,796 | 22,925 |
Other receivables | 852 | 2,113 |
Income tax receivable | 568 | 172 |
Prepaid expenses and other | 7,215 | 4,321 |
Total Current Assets | 131,509 | 64,749 |
Securities and Investments | 1,180 | 914 |
Property, Plant and Equipment | ||
Land and buildings | 23,019 | 19,726 |
Network plant and equipment | 624,360 | 540,108 |
Furniture, fixtures and other equipment | 48,266 | 45,729 |
Total in service | 695,645 | 605,563 |
Under construction | 51,663 | 34,426 |
Property, plant and equipment, gross | 747,308 | 639,989 |
Less accumulated depreciation and amortization | 248,364 | 210,538 |
Total Property, Plant and Equipment, net | 498,944 | 429,451 |
Other Assets | ||
Goodwill | 100,297 | 100,297 |
Other intangibles, less accumulated amortization of $94,892 ($90,086 in 2014) | 11,078 | 15,884 |
Deferred charges and other assets | 2,364 | 512 |
Total Other Assets | 113,739 | 116,693 |
Total Assets | 745,372 | 611,807 |
Current Liabilities | ||
Current portion of long-term debt | 10,400 | 10,227 |
Accounts payable | 14,182 | 20,257 |
Dividends payable | 3,152 | |
Advance billings and customer deposits | 13,849 | 14,029 |
Accrued compensation | 1,191 | 1,516 |
Accrued operating taxes | 3,907 | 4,618 |
Other accrued liabilities | 4,974 | 4,223 |
Total Current Liabilities | 48,503 | 58,022 |
Long-term Liabilities | ||
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 456,300 | 357,950 |
Retirement benefits | 17,029 | 18,257 |
Deferred income taxes, net | 89,193 | 82,263 |
Other long-term liabilities | 1,923 | 1,746 |
Income tax payable | 93 | 110 |
Total Long-term Liabilities | $ 564,538 | $ 460,326 |
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; 23,005 shares issued and 22,992 shares outstanding (22,579 shares issued and 22,544 shares outstanding in 2014) | $ 230 | $ 226 |
Additional paid-in capital | 171,746 | 143,545 |
Treasury stock, 13 shares at cost (35 shares in 2014) | (103) | (41) |
Accumulated deficit | (28,541) | (38,567) |
Accumulated other comprehensive loss, net of tax | (11,940) | (12,486) |
Total Lumos Networks Corp. Stockholders' Equity | 131,392 | 92,677 |
Noncontrolling Interests | 939 | 782 |
Total Equity | 132,331 | 93,459 |
Total Liabilities and Equity | $ 745,372 | $ 611,807 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance | $ 1,235 | $ 1,217 |
Other intangibles, accumulated amortization | $ 94,892 | $ 90,086 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 23,005,000 | 22,579,000 |
Common stock, shares outstanding | 22,992,000 | 22,544,000 |
Treasury stock, shares | 13,000 | 35,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Consolidated Statements Of Income [Abstract] | ||||
Operating Revenues | $ 204,269 | $ 201,456 | $ 207,475 | |
Operating Expenses | ||||
Network access costs | 39,310 | 40,868 | 42,417 | |
Selling, general and administrative | 80,187 | 64,782 | 76,749 | |
Depreciation and amortization | 47,527 | 45,212 | 42,320 | |
Accretion of asset retirement obligations | 139 | 118 | 104 | |
Restructuring charges | 638 | 50 | ||
Total Operating Expenses, net | 167,801 | 150,980 | 161,640 | |
Operating Income | [1] | 36,468 | 50,476 | 45,835 |
Other Income (Expenses) | ||||
Interest expense | (19,918) | (15,575) | (14,191) | |
Gain (loss) on interest rate swap derivatives | 665 | 492 | (144) | |
Other income (expenses), net | 114 | 664 | (1,587) | |
Total Other Expenses, net | (19,139) | (14,419) | (15,922) | |
Income Before Income Taxes | 17,329 | 36,057 | 29,913 | |
Income Tax Expense | 7,146 | 14,409 | 12,019 | |
Net Income | 10,183 | 21,648 | 17,894 | |
Net Income Attributable to Noncontrolling Interests | (157) | (120) | (121) | |
Net Income Attributable to Lumos Networks Corp. | $ 10,026 | $ 21,528 | $ 17,773 | |
Basic and Diluted Earnings per Common Share Attributable to Lumos Networks Corp. Stockholders | ||||
Earnings per share - basic | $ 0.44 | $ 0.97 | $ 0.81 | |
Earnings per share - diluted | $ 0.43 | 0.95 | 0.80 | |
Cash Dividends Declared per Share - Common Stock | $ 0.56 | $ 0.56 | ||
[1] | Employee separation charges in 2014 include employee separation benefits which were provided for in the separation agreements of an executive officer who left the Company. These charges are included in selling, general and administrative expense on the consolidated statements of income |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net Income | $ 10,183 | $ 21,648 | $ 17,894 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Adjustment to unrecognized loss due to curtailment of postretirement medical plan benefits, net of $463 of income taxes for the year ended December 31, 2014. | 725 | ||
Net unrecognized (loss) gain from defined benefit plans, net of $169 and $5,944 of income tax benefit for the years ended December 31, 2015 and 2014, respectively, and $4,992 of income tax expense for the year ended December 31, 2013. | (266) | (9,271) | 7,840 |
Reclassification adjustment for amortization of actuarial loss from defined benefit plans included in net income, net of $526, $97 and $481 of income taxes for the years ended December 31, 2015, 2014 and 2013, respectively (see Note 2) | 824 | 151 | 756 |
Unrealized (loss) gain on available-for-sale marketable securities, net of $7 and $5 of income tax benefit for the years ended December 31, 2015 and 2014, respectively, and $3 of income tax expense for the year ended December 31, 2013 | (12) | (18) | 7 |
Other Comprehensive Income (Loss), Net of Tax | 546 | (8,413) | 8,603 |
Total Comprehensive Income | 10,729 | 13,235 | 26,497 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | (157) | (120) | (121) |
Comprehensive Income Attributable to Lumos Networks Corp. | $ 10,572 | $ 13,115 | $ 26,376 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | $ 463 | ||
Deferred income tax (asset) liability, Net unrecognized gain (loss) from defined benefit plans | $ (169) | (5,944) | $ 4,992 |
Deferred income tax asset, Reclassification adjustment for amortization of actuarial loss from defined benefit plans | 526 | 97 | 481 |
Deferred income tax asset, Unrealized gain on available-for-sale securities | $ (7) | $ (5) | $ 3 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||
Net income | $ 10,183 | $ 21,648 | $ 17,894 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 42,721 | 36,025 | 32,496 |
Amortization | 4,806 | 9,187 | 9,824 |
Accretion of asset retirement obligations | 139 | 118 | 104 |
Deferred income taxes | 6,767 | 14,477 | 11,503 |
(Gain) loss on interest rate swap derivatives | (665) | (492) | 144 |
Equity-based compensation | 5,881 | 4,340 | 6,778 |
Amortization of debt discounts and issuance costs | 2,688 | 1,461 | 1,280 |
Write off of unamortized debt issuance costs | 890 | ||
Curtailment gain | (10,774) | ||
Retirement benefits, net of cash contributions and distributions | (314) | (1,628) | (330) |
Excess tax benefits from share-based compensation | (165) | (1,060) | |
Other | 789 | 221 | (163) |
Changes in assets and liabilities from operations: | |||
Decrease (increase) in accounts receivable | 1,938 | 845 | (241) |
(Increase) decrease in other assets | (4,889) | (124) | 832 |
Changes in income taxes | (433) | 615 | (501) |
(Decrease) increase in accounts payable | (923) | 3,112 | (3,798) |
(Decrease) increase in other current liabilities | (1,778) | 778 | (1,398) |
Net Cash Provided by Operating Activities | 66,745 | 79,809 | 74,254 |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (115,675) | (84,100) | (68,334) |
Broadband network expansion funded by stimulus grant | (2,578) | (878) | (29) |
Purchases of available-for-sale marketable securities | (114,478) | (19,516) | (38,560) |
Proceeds from sale or maturity of available-for-sale marketable securities | 42,200 | 40,679 | |
Change in restricted cash | 4,208 | 116 | 979 |
Cash reimbursement received from broadband stimulus grant | 3,838 | 116 | 979 |
Other | 150 | 62 | |
Net Cash Used in Investing Activities | (182,485) | (63,433) | (104,903) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of senior secured term loan | 28,000 | 375,000 | |
Proceeds from issuance of unsecured notes, net of debt discount | 148,500 | ||
Payment of financing costs | (8,192) | (4,872) | |
Principal payments on senior secured term loans | (47,960) | (5,250) | (308,876) |
Borrowings from revolving credit facility | 15,000 | ||
Principal payments on revolving credit facility | (18,521) | ||
Termination payments of interest rate swap derivatives | (858) | ||
Cash dividends paid on common stock | (3,152) | (12,456) | (12,213) |
Principal payments under capital lease obligations | (2,471) | (1,468) | (1,456) |
Proceeds from stock option exercises and employee stock purchase plan | 356 | 2,892 | 1,222 |
Excess tax benefits from share-based compensation | 165 | 1,060 | |
Other | (379) | (68) | (725) |
Net Cash Provided by (Used in) Financing Activities | 114,867 | (16,350) | 44,761 |
(Decrease) increase in cash and cash equivalents | (873) | 26 | 14,112 |
Cash and Cash Equivalents: | |||
Beginning of Year | 14,140 | 14,114 | 2 |
End of Year | $ 13,267 | $ 14,140 | $ 14,114 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total Lumos Networks Corp. Stockholders' Equity [Member] | Noncontrolling Interests [Member] | Total |
Balance, at Dec. 31, 2012 | $ 216 | $ 129,570 | $ (53,060) | $ (12,676) | $ 64,050 | $ 552 | $ 64,602 | |
Balance, shares at Dec. 31, 2012 | 21,610 | 112 | ||||||
Adjustments related to spin-off from NTELOS Holdings Corp. | (144) | (144) | (144) | |||||
Net income attributable to Lumos Networks Corp. | 17,773 | 17,773 | 17,773 | |||||
Other comprehensive income, net of tax | 8,603 | 8,603 | 8,603 | |||||
Equity-based compensation expense | 5,847 | 5,847 | 5,847 | |||||
Adjustments to excess tax benefit from stock-based compensation | 1,060 | 1,060 | 1,060 | |||||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | $ 5 | $ (404) | 709 | 310 | 310 | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits), shares | 451 | (63) | ||||||
Stock option exercises | $ 1 | 1,124 | 1,125 | 1,125 | ||||
Stock option exercises, shares | 97 | |||||||
Cash dividends declared ($0.56 per share) | (12,291) | (12,291) | (12,291) | |||||
Net income attributable to noncontrolling interests | 121 | 121 | ||||||
Balance, at Dec. 31, 2013 | $ 222 | $ (404) | 138,166 | (47,578) | (4,073) | 86,333 | 673 | 87,006 |
Balance, shares at Dec. 31, 2013 | 22,158 | 49 | ||||||
Net income attributable to Lumos Networks Corp. | 21,528 | 21,528 | 21,528 | |||||
Other comprehensive income, net of tax | (8,413) | (8,413) | (8,413) | |||||
Equity-based compensation expense | 3,377 | 3,377 | 3,377 | |||||
Adjustments to excess tax benefit from stock-based compensation | (1,488) | (1,488) | (1,488) | |||||
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 | $ 363 | 673 | 1,040 | 1,040 | |||
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 | 211 | (14) | ||||||
Stock option exercises | 2,817 | 2,817 | 2,817 | |||||
Stock option exercises, shares | 210 | |||||||
Cash dividends declared ($0.56 per share) | (12,517) | (12,517) | (12,517) | |||||
Net income attributable to noncontrolling interests | 109 | 109 | ||||||
Balance, at Dec. 31, 2014 | $ 226 | $ (41) | 143,545 | (38,567) | (12,486) | 92,677 | 782 | $ 93,459 |
Balance, shares at Dec. 31, 2014 | 22,579 | 35 | 22,579 | |||||
Net income attributable to Lumos Networks Corp. | 10,026 | 10,026 | $ 10,026 | |||||
Other comprehensive income, net of tax | 546 | 546 | 546 | |||||
Equity-based compensation expense | 4,721 | 4,721 | 4,721 | |||||
Adjustments to excess tax benefit from stock-based compensation | 165 | 165 | 165 | |||||
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 | $ (62) | 881 | 823 | 823 | |||
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 | 399 | (22) | ||||||
Stock warrants issued (net of debt discount and deferred issuance fees) | 22,147 | 22,147 | 22,147 | |||||
Stock option exercises | 287 | 287 | $ 287 | |||||
Stock option exercises, shares | 27 | 27 | ||||||
Net income attributable to noncontrolling interests | 157 | $ 157 | ||||||
Balance, at Dec. 31, 2015 | $ 230 | $ (103) | $ 171,746 | $ (28,541) | $ (11,940) | $ 131,392 | $ 939 | $ 132,331 |
Balance, shares at Dec. 31, 2015 | 23,005 | 13 | 23,005 |
Consolidated Statements Of Equ9
Consolidated Statements Of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Equity [Abstract] | ||
Cash dividends declared, per share | $ 0.56 | $ 0.56 |
Organization
Organization | 12 Months Ended |
Dec. 31, 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 October 14, 2011, NTELOS Holdings Corp. (“NTELOS”) announced a distribution date of October 31, 2011 for the spin-off of all of the then issued and outstanding shares of common stock of Lumos Networks, which operated NTELOS’s wireline operations (the “Business Separation”). Prior to and in connection with the Business Separation, following the market close on October 31, 2011, NTELOS effectuated a 1-for-2 reverse stock split (the “Reverse Stock Split”) of its shares of Common Stock, $ 0.01 par value. The spin-off of Lumos Networks was in the form of a tax-free stock distribution to NTELOS stockholders of record as of the close of business on October 24, 2011, the record date (the “Distribution”). On October 31, 2011, NTELOS distributed one share of Lumos Networks common stock for every share of NTELOS’s common stock outstanding, on a post-Reverse Stock Split basis. On November 20, 2013, in a secondary offering of the Company’s common stock, Quadrangle Capital Partners LP. (“Quadrangle”) sold 2,888,939 shares, priced at $20.00 per share. On March 17, 2015, in an additional secondary offering of the Company’s common stock, 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. The Company did not receive any proceeds from the offerings, and the Company’s total shares outstanding did not change. All direct costs of these offerings, which were primarily legal, printing and accounting fees related to the preparation of the registration statement, which totaled $0.3 and $0.8 million, are included in other expenses in the consolidated statements of income for the year ended December 31, 2015 and 2013, respectively. The Company did not incur any direct costs related to offerings during the year ended December 31, 2014. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 consolidated financial statements include the accounts of the Company, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, and all of Lumos Networks Operating Company’s wholly-owned subsidiaries and those limited liability corporations where Lumos Networks Operating Company or certain of its subsidiaries, as managing member, exercised control. All significant intercompany accounts and transactions have been eliminated in consolidation. Accounting Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the valuation of deferred tax assets and/or liabilities, asset retirement obligations and equity-based compensation; goodwill impairment assessments; actuarial determination of employee benefi t obligations; stock warrants; and reserve for u ncertain income tax positions. Changes 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 consolidated 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 $10.5 million of debt issuance costs as a reduction to long-term debt in the consolidated balance sheet as of December 31, 2015. The Company also reclassified $5.2 million of debt issuance costs from deferred charges and other assets to a reduction to long-term debt on the 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 consolidated statements of income or comprehensive income or cash flows. The Company historicall y classified its deferred tax asset and/or deferred tax liability as either current or noncurrent on the consolidated balance sheets in accordance with existing GAAP. In the fourth quarter of 2015, the Company elected early adoption of FASB ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”) and applied it retrospectively to all prior periods presented in the financial statements. ASU 2015-17 simplifies the presentation of deferred income taxes by requiring that deferred tax assets and deferred tax liabilities be offset by tax jurisdiction and the resulting net deferred tax asset and/or net deferred tax liability amount be classified as noncurrent in the consolidated balance sheet. The adoption of ASU 2015-17 resulted in the presentation of $2.4 million of deferred tax assets as a reduction to the noncurrent deferred liability in the consolidated balance sheet as of December 31, 2015. The Company also reclassified $5.6 million of deferred tax assets from current assets to a reduction to the noncurrent net deferred tax liability as of December 31, 2014. The adoption of ASU 2015-07 did not impact net income or any other amounts previously reported on the consolidated statements of income or comprehensive income or cash flows. 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 and 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 re cognized at the point of sale. Cash Equivalents and Marketable Securities The Company considers its investments in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company’s marketable securities at December 31, 2015 and 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 the unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of December 31, 2015 and 2014. The Company previously utilized a swingline credit facility that it had with its primary commercial bank. This swingline facility was terminated in April 2013, concurrent with the closing of the Company’s debt refinancing (see Note 5). The Company had a book overdraft related to this master cash account of $ 1.8 million as of December 31, 2012. The Company classified the changes in the book overdraft amount in cash flows from operating activities on the consolidated statement of cash flows for the year ended December 31, 2 013. 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 December 31, 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 to be drawn down ratably following the grant reimbursement approvals which were contingent on adherence to the program requirements. The Company received $3.8 million, $ 0.1 million and $ 1.0 million in the years ended December 31, 2015 , 2014 and 2013 , respectively, for the reimbursable portion of the qualified recoverable expenditures. T he Company has no remaining receivable for the reimbursable portion of the qualified recoverable expenditures as of December 31, 2015 and all amounts from the pledged account were released as of December 31, 2015. 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 consolidated statements of income. The following table shows the activity in the allowance for doubtful accounts and customer credits for the years ended December 31, 2015 , 2014 and 2013 : (In thousands) 2015 2014 2013 Allowance for doubtful accounts and customer credits, beginning $ 1,217 $ 1,485 $ 1,822 Additions: Charged to expense 461 604 249 Charged to other accounts 96 (19) 346 Deductions (539) (853) (932) Allowance for doubtful accounts and customer credits, ending $ 1,235 $ 1,217 $ 1,485 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 determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. The Company believes that no impairment indicators exist as of December 31, 2015 that would require it to perform impairment testing for long-lived assets, including property, plant and equipment, long-term deferred charges and finite-lived intangible assets to be held and used. 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 experience and future expectations. As of December 31, 2015 the estimated lives for each category of property, plant and equipment are as follows: Estimated Life Buildings 50 years Network plant and equipment 3 to 25 years Furniture, fixtures and other equipment 2 to 24 years Leasehold improvements, which are categorized in land and buildings, are depreciated over the shorter of the estimated useful lives or the remaining lease terms. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Amortization of assets held under capital leases, including certain software licenses, is included with depreciation expense. Intangibles with a finite life are classified as other intangibles on the consolidated balance sheets. At December 31, 2015 and 2014 , other intangibles were comprised of the following: 2015 2014 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (93,051) $ 103,108 $ (88,406) Trademarks and franchise rights 10 to 15 yrs 2,862 (1,841) 2,862 (1,680) Total $ 105,970 $ (94,892) $ 105,970 $ (90,086) The Company amortizes its finite-lived intangible assets using the straight-line method unless it determines that another systematic method is more appropriate. The amortization for certain customer relationship intangibles is being recognized using an accelerated amortization method based on the pattern of estimated earnings from these assets. The estimated life of amortizable intangible assets is determined from the unique factors specific to each asset and the Company reviews and updates estimated lives based on current events and future expectations. The Company capitalizes costs incurred to renew or extend the term of a recognized intangible asset and amortizes such costs over the remaining life of the asset. No such costs were incurred during the years ended December 31, 2015 or 2014 . Amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $ 4.8 million, $ 9.2 million and $ 9.8 million, respectively. Amortization expense for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total 2016 $ 2,412 $ 163 $ 2,575 2017 2,093 163 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 Goodwill and Indefinite-Lived Intangible Assets Goodwill and franchise rights are considered to be indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but are instead tested for impairment annually or more frequently if an event indicates that the asset might be impaired. The Company’s policy is to assess the recoverability of indefinite-lived assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. The Company first considers whether to take a qualitative approach in determining whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test promulgated by FASB ASC Topic 350. If the Company determines that it is more likely than not that a reporting unit’s fair value is less than its carrying amount or if the Company elects to bypass the qualitative test for a specific period, the two-step process is used to test for goodwill impairment. Step one requires a determination of the fair value of each of the reporting units and, to the extent that the fair value of the reporting unit exceeds its carrying value (including goodwill), the step two calculation of implied fair value of goodwill is not required and no impairment loss is recognized. In testing for goodwill impairment, the Company utilizes a market approach that includes the use of comparable multiples of publicly traded companies whose services are comparable to ours and recent M&A activity. As of December 31, 2015 , goodwill was attributed to the Company’s segments as follows: (In thousands) December 31, 2015 Data $ 90,561 R&SB 9,736 RLEC Access - Total goodwill $ 100,297 As of October 1, 2015, the Company performed its annual goodwill impairment test for each of its reporting units with goodwill, which are two of our three operating segments (data and R&SB). After a preliminary assessment, the Company elected to bypass the qualitative assessment and applied step one of the quantitative test as described above. Based on the results of this annual impairment testing, the Company determined that the fair values of each of the data and R&SB reporting units substantially exceed their respective carrying amounts and that no impairment exists. The gross amount of goodwill was $133.7 million and the accumulated impairment loss was $33.4 million for a net carrying amount of $100.3 million as of December 31, 2015 and 2014 . There was no activity in the consolidated goodwill accounts for the years ended December 31, 2015 , 2014 and 201 3 . Accounting for Asset Retirement Obligations An asset retirement obligation is evaluated and recorded as appropriate on assets for which the Company has a legal obligation to retire. The Company records a liability for an asset retirement obligation and the associated asset retirement cost capitalized at the time the underlying asset is acquired. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The Company enters into various facility collocation agreements and is subject to locality franchise ordinances. The Company constructs assets at these locations and, in accordance with the terms of many of these agreements, the Company is obligated to restore the premises to their original condition at the conclusion of the agreements, generally at the demand of the other party to these agreements. The Company recognizes the fair value of a liability for an asset retirement obligation and capitalizes that cost as part of the cost basis of the related asset, depreciating it over the useful life of the related asset. Included in certain of the franchise ordinances under which the Company’s RLECs and CLECs operate are clauses that require the removal of the RLEC’s and CLEC’s equipment at the termination of the franchise agreement. The Company has not recognized an asset retirement obligation for these liabilities as the removal of the equipment is not estimable due to an indeterminable end date and the fact that the equipment is part of the public switched telephone network and it is not reasonable to assume the jurisdictions would require its removal. The following table indicates the changes to the Company’s asset retirement obligation liability, which is included in other long-term liabilities, for the years ended December 31, 2015 and 2014 : (In thousands) 2015 2014 Asset retirement obligations, beginning $ 1,500 $ 1,401 Additional asset retirement obligations recorded, net of adjustments in estimates 81 (19) Accretion of asset retirement obligations 139 118 Asset retirement obligations, ending $ 1,720 $ 1,500 Advertising Costs The Company expenses advertising costs and marketing production costs as incurred (included within selling, general and administrative expenses in the consolidated statements of income). Advertising expense for the years ended December 31, 2015 , 2014 and 2013 was $0.7 million, $ 1.4 million and $ 0.8 million, respectively. Pension Benefits and Retirement Benefits Other Than Pensions The Company sponsors a non-contributory defined benefit pension plan (“Pension Plan”) covering all employees who meet eligibility requirements and were employed prior to October 1, 2003. Pension benefits vest after five years of plan service and are based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. The Company froze the Pension Plan effective December 31, 2012. As such, no further benefits are being accrued by participants for services rendered beyond that date. The Company has a nonqualified pension plan that was also frozen as of December 31, 2012. Sections 412 and 430 of the Internal Revenue Code and ERISA Sections 302 and 303 establish minimum funding requirements for defined benefit pension plans. The minimum required contribution is generally equal to the target normal cost plus the shortfall amortization installments for the current plan year and each of the six preceding plan years less any calculated credit balance. The Company’s policy is to make contributions to stay at or above the threshold required in order to prevent benefit restrictions and related additional notice requirements and is intended to provide for benefits to be paid in the future. The Company is required to rec ognize the overfunded or underfunded status of a defined benefit pension plan as an asset or liability in its c onsolidated b alance s heets and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income (loss). The Company is required to measure plan assets and benefit obligations as of the date of the Company’s fiscal year-end balance sheet and provide the required disclosures as of the end of each fiscal year. The Company also provides certain life insurance benefits for retired employees that meet eligibility requirements through the postretirement welfare benefit plan (the “Other Postretirement Benefit Plan”), which is contributory. These obligations, along with all of the pension plans and other postretirement benefit plans, are assumed by the Company. Eligibility for the life insurance plan is restricted to active pension participants age 50-64 as of January 5, 1994 and is not eligible to employees hired after April 1993. The Company previously provided health care benefits for retired employees, however, the Company terminated those benefits effective December 31, 2014. Eligible retirees received partial compensation for settlement of accrued benefits through a series of supplemental pension payments in 2014. As a result, the Company recognized a curtailment gain of $10.8 million in the year ended December 31, 2014 (see Note 11) . The Company accounts for the pension and retirement benefits other than pensions by accruing the cost of such benefits over the service lives of employees. Unrecognized actuarial gains and losses are amortized over the estimated average remaining service period for active employees and over the estimated average remaining life for retirees. The Company recognizes in its consolidated balance sheets the amount of the Company’s unfunded Accumulated Postretirement Benefit Obligation (“APBO”) at the end of the year. Amounts recognized in accumulated other comprehensive income (loss) are adjusted out of accumulated other comprehensive income (loss) when they are subsequently recognized as components of net periodic benefit cost. The Company sponsors a contributory defined contribution plan under Internal Revenue Code Section 401(k) for substantially all employees. The Company’s policy is to match 100 % of each participant’s annual contributions for contributions up to 1 % of each participant’s annual compensation and 50 % of each participant’s annual contributions up to an additional 5 % of each participant’s annual compensation. Company contributions vest after two years of service. Operating Leases The Company has operating leases for administrative office space and equipment, certain of which have renewal options. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. The Company’s minimum lease term for most leases includes the initial non-cancelable term and at least one renewal period to the extent that the exercise of the related renewal option or options is reasonably assured. A renewal option or options is determined to be reasonably assured if failure to renew the leases imposes an in-substance economic penalty on the Company. Leasehold improvements are capitalized and depreciated over the shorter of the assets’ useful life or the lease term, including renewal option periods that are reasonably assured. Income Taxes Deferred income taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. The Company accrues interest and penalties related to unrecognized tax benefits in interest expense and income tax expense, respectively. For balance sheet presentation purposes, the Company nets its deferred tax asset and deferred tax liability positions by tax jurisdiction and classifies the resulting net deferred tax asset and/or net deferred tax liability as noncurrent in accordance with ASU 2015-17. Equity-based Compensation The Company accounts for share-based employee compensation plans under FASB ASC 718, Stock Compensation . Equity-based compensation expense from share-based equity awards is recorded with an offsetting increase to additional paid-in capital on the consolidated balance sheet. For equity awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. The fair value of common stock options granted with service-only conditions is estimated at the respective measurement date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The fair value of restricted stock awards granted with service-only conditions is estimated based on the market value of the common stock on the date of grant reduced by the present value of expected dividends as applicable. Certain stock options and restricted shares granted by the Company contain vesting provisions that are conditional on achievement of a target market price for the Company’s common stock. The grant date fair value of these options and restricted shares was adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model (see Note 9). The Company initially recognizes the related compensation cost for these awards that contain a market condition on a straight-line basis over the requisite service period as derived from the valuation model. The Company accelerates expense recognition if the market conditions are achieved prior to the end of the derived requisite service period. Total equity-based compensation expense related to all of the share-based awards (Note 9), including the Company’s 401(k) matching contributions, was $5.9 million, $4.3 million and $6.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which amounts are included in selling, general and administrative expenses in the consolidated statements of income. Future charges for equity-based compensation related to instruments outstanding at December 31, 2015 for the years 2016 through 2018 are estimated to be $ 4.0 million, $ 3.3 million, $ 1.0 million and less than $0.1 million for each of 2019 and 2020, respectively. Fair Value Measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value or for certain financial instruments for which disclosure of fair value is required, the Company uses fair value techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. GAAP establishes a fair value hierarchy with three levels of inputs that may be used to measure fair value: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. • Level 3 – Unobservable inputs for the asset or liability. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , 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 disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ( “ASU 2016-02”), which will replace most existing lease guidance in U.S. GAAP when it becomes effective. ASU 2016-02 requires an entity to recognize most leases, including operating leases, on the consolidated balance sheet of the lessee. ASU 2016-02 is effective for public business entities for annual reporting periods beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 requires the use of a modified retrospective transition method with elective reliefs. The Company is still evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and disclosures. |
Cash Equivalents And Marketable
Cash Equivalents And Marketable Securities | 12 Months Ended |
Dec. 31, 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 securities reported at fair value as of December 31, 2015 and 2014 are summarized below. (In thousands) December 31, 2015 December 31, 2014 Cash equivalents: Money market mutual funds $ 6,746 $ 49 Commercial paper 1,000 - Corporate debt securities 1,055 1,357 Total cash equivalents 8,801 1,406 Marketable securities: Commercial paper 8,684 998 Debt securities issued by U.S. Government agencies 35,155 2,734 Municipal bonds - 353 Corporate debt securities 44,972 12,785 Total marketable securities, available-for-sale 88,811 16,870 Total cash equivalents and marketable securities $ 97,612 $ 18,276 At December 31, 2015 and 2014 , the carrying values of the investments included in cash and equivalents approximated fair value. The amortized cost basis of the available-for-sale securities was not materially different from the aggregate fair value. The contractual maturities of the Company’s available-for-sale debt securities were as follows as of December 31, 2015 : (In thousands) Total Due in one year or less $ 88,561 Due after one year through two years 250 Total debt securities $ 88,811 The Company received total proceeds of $42.2 million and $40.7 million from the sale or maturity of available-for-sale marketable securities during the years ended December 31, 2015 and 2014 . The Company did not receive any material proceeds from the sale or maturity of available-for-sale marketable securities or recognize any material realized net gains or losses during the year ended December 31, 2013 . Net unrealized holding gains on available-for-sale securities were less than $0.1 million for each of the years ended December 31, 2015 and 2014 and are included in accumulated other comprehensive loss on the consolidated balance sheets as of December 31, 2015 and 2014 . |
Disclosures About Segments Of A
Disclosures About Segments Of An Enterprise And Related Information | 12 Months Ended |
Dec. 31, 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 and includes restated segment results for the year ended December 31, 2013 to be consistent with the classification and presentation of the Company’s operating segments in 2014 and 2015. (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the year ended December 31, 2015 Operating revenues $ 114,311 $ 67,214 $ 22,744 $ - $ 204,269 Network access costs 16,728 22,582 - - 39,310 Network operating and selling costs 31,477 14,835 1,058 - 47,370 Other general and administrative expenses 14,631 8,242 2,713 7,231 32,817 Adjusted EBITDA (1) 51,475 21,555 18,973 - 92,003 Capital expenditures 98,535 9,545 - 7,595 115,675 For the year ended December 31, 2014: Operating revenues $ 106,642 $ 72,028 $ 22,786 $ - $ 201,456 Network access costs 15,990 24,878 - - 40,868 Network operating and selling costs 24,833 17,656 1,544 - 44,033 Other general and administrative expenses 14,094 9,594 3,003 (5,942) 20,749 Adjusted EBITDA (1) 51,725 19,900 18,239 10,774 100,638 Capital expenditures 66,570 7,089 - 10,441 84,100 For the year ended December 31, 2013: Operating revenues $ 104,112 $ 80,659 $ 22,704 $ - $ 207,475 Network access costs 15,801 26,616 - - 42,417 Network operating and selling costs 22,616 19,869 1,850 - 44,335 Other general and administrative expenses 12,191 9,515 2,693 8,015 32,414 Adjusted EBITDA (1) 53,504 24,659 18,161 - 96,324 Capital expenditures 48,085 6,693 1,634 11,922 68,334 (1) The Company’s CODMs evaluate performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization and accretion of asset retirement obligations, net income attributable to noncontrolling interests, other (income) expenses, net, equity-based compensation, amortization of actuarial losses, employee separation charges, restructuring charges and gain (loss) on interest rate swap derivatives. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company’s reasons for using this non-GAAP financial measure. The Company’s CODMs do not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments. However, total assets may be allocated to the segments in the future should the CODMs decide to manage the business in that manner. Management does review capital expenditures using success-based metrics that allow the Company to determine which segment product groups are driving investment in the network. Depreciation and amortization expense and certain corporate expenses that are excluded from the measurement of segment profit or loss are not allocated to the segments. The Company did not allocate the curtailment gain of $10.8 million recognized in 2014 due to the discontinuance of certain medical benefits under the postretirement medical plan to the segments and this amount is included in corporate unallocated charges for the year ended December 31, 2014 in the table above. 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 years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, (In thousands) 2015 2014 2013 Net Income Attributable to Lumos Networks Corp. $ 10,026 $ 21,528 $ 17,773 Net Income Attributable to Noncontrolling Interests 157 120 121 Net income 10,183 21,648 17,894 Income tax expense 7,146 14,409 12,019 Interest expense 19,918 15,575 14,191 (Gain) loss on interest rate swap derivatives (665) (492) 144 Other (income) expenses, net (114) (664) 1,587 Operating Income 36,468 50,476 45,835 Depreciation and amortization and accretion of asset retirement obligations 47,666 45,330 42,424 Amortization of actuarial losses 1,350 248 1,237 Equity-based compensation 5,881 4,340 6,778 Restructuring charges 638 - 50 Employee separation charges (1) - 244 - Adjusted EBITDA $ 92,003 $ 100,638 $ 96,324 (1) Employee separation charges in 2014 include employee separation benefits which were provided for in the separation agreements of an executive officer who left the Company. These charges are included in selling, general and administrative expense on the consolidated statements of income . One of the Company's carrier customers, AT&T, individually accounted for 8% , 10% and 8% of the Company's total revenue for each of the years ended December 31, 2015, 2014 and 2013, respectively . Another carrier customer, Verizon, accounted for 8% of the Company’s total revenue for each of the years ended December 31, 2015 and 2014 and 10% of the Company’s total revenue for the year ended December 31, 2013 . Revenue from these carrier customers was derived primarily from netw ork access, data transport and FTTC services. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 5. Long-Term Debt As of December 31, 2015 and 2014 , the Company’s outstanding long-term debt consisted of the following: December 31, 2015 December 31, 2014 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ 348,415 $ 4,705 $ 368,375 $ 5,206 8% Notes due 2022 150,000 29,607 - - Capital lease obligations 2,597 - 5,008 - Long-term debt 501,012 34,312 373,383 5,206 Less: Current portion of long-term debt 10,400 - 10,227 - Long-term debt, excluding current portion $ 490,612 $ 34,312 $ 363,156 $ 5,206 Credit Facility On April 30, 2013, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, entered into a $425 million credit facility (the “Credit Facility”). The Credit Facility consists of a $100 million senior secured five -year term loan (the “Term Loan A”), a $275 million senior secured six -year term loan (the “Term Loan B”); 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 the Term Loan A and the Term Loan B were used to retire the prior credit facility outstanding amount of approximately $311 million and to pay closing costs and other expenses related to the transaction, with the remaining proceeds available for normal course capital expenditures and working capital purposes. As of December 31, 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 used 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. The Term Loan A matures in 2018 with quarterly payments of 1.25% per annum through December 31, 2016 and 2.50% per annum thereafter. The Term Loan B matures in 2019 with quarterly payments of 1% per annum. The Term Loan C matures in 2019 with quarterly payments of 1% per annum beginning on June 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 Credit Facility also sets a minimum interest rate coverage ratio of 3.25 :1.00. At December 31, 2015 , the Company’s leverage ratio was 3.78 :1.00 and its interest coverage ratio was 6.70 :1.00. The Company was in compliance with its debt covenants as of December 31, 2015 . Mandatory prepayments include an excess cash flow sweep equal to 50% of Excess Cash Flow, as defined under the Credit Agreement, for each fiscal year commencing in 2013 for so long as the leverage ratio exceeds 3.25 :1.00. Based on the excess cash flow calculation as of December 31, 2015, no mandatory prepayment was due for the year ended December 31, 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 swapped 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 interest rate swap agreements expired on December 31, 2015. The Company recognized a net gain on interest rate swap derivatives of $0.7 and $0.5 million for the years ended December 31, 2015 and 2014, respectively, and a net loss of $0.1 million for the year ended December 31, 2013. The Company’s effective interest rate on its Credit Facility for the year ended December 31, 2015 was 3.96% . 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 8% 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 8% 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 8% Notes outstanding at that time. The 8% 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 9 for additional information 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 presented as a reduction of long-term debt in the 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 for the years ended December 31, 2015 , 2014 and 2013 was $2.7 million, $1.5 million and $1.3 million, respectively. The Company’s effective interest rate on the 8% Notes for the year ended December 31, 2015 was 12.55% , which represents the contractual rate adjusted for the aforementioned discount and deferred debt issuance costs. The Company receives patronage credits from CoBank and certain other of the Farm Credit System lending institutions (collectively referred to as “patronage banks”) which are not reflected in the interest rates above. The patronage banks hold a portion of the credit facility and are cooperative banks that are required to distribute their profits to their members. Patronage credits are calculated based on the patronage banks’ ownership percentage of the credit facility and are received by the Company as either a cash distribution or as equity in the patronage banks. The current patronage credit percentages are 75% in cash and 25% in equity. These credits are recorded in the consolidated statements of income as an offset to interest expense. The patronage credits were $1. 2 million, $0.7 million and $1.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The aggregate maturities of the Term Loan A, Term Loan B and Term Loan C under the Credit Facility are $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 December 31, 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 December 31, 2015 , the historical cost and accumulated amortization of the related assets were $2.7 million and $ 1.4 million, respectively. In 2013, the Company entered into a financing arrangement with a provider of software services related to the upgrading of internal infrastructure, including certain software licenses, which the Company classified as a capital lease. The agreement extends through 2016 with payments due annually. As of December 31, 2015 , the historical cost and accumulated depreciation of the related asset were $5.9 million and $3.0 million, respectively. As of December 31, 2015 , the combined total net present value of the Company’s future minimum lease payments is $2.6 million and the principal portion of these capital lease obligations was due as follows: $2.4 million in 2016, $0.1 million in 201 7 and $0.1 million in 2018. |
Supplementary Disclosures Of Ca
Supplementary Disclosures Of Cash Flow Information | 12 Months Ended |
Dec. 31, 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 consolidated statements of cash flows for the years ended December 31, 2015 , 2014 and 2013 : (In thousands) 2015 2014 2013 Cash payments (receipts): Interest (net of amounts capitalized) $ 12,467 $ 13,206 $ 13,278 Income taxes 843 (680) 970 Supplemental investing and financing activities: Additions to property and equipment included in accounts payable and other accrued liabilities 6,906 8,373 6,145 Capital lease obligations - 123 6,544 Dividend declared not paid $ - $ 3,152 $ 3,091 Cash payments for interest for the years ended December 31, 2015 , 2014 and 2013 in the table above are net of $0. 8 million, $0.9 million and $0.7 million, respectively, of cash received from CoBank for patronage credits (Note 5). The amount of interest capitalized was $ 1.2 million, $ 0.3 million and $ 0.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 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 8% Notes and the Credit Facility (including the current portion) as of December 31, 2015 and 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 December 31, 2015 and 2014 . Marketable securities and interest rate swap derivatives are recorded in the consolidated balance sheets at fair value (see Note 3 and Note 5). The following table presents the placement in the fair value hierarchy of financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015 and 2014 : Fair Value Measurements at December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents: Money market mutual funds $ 6,746 $ - $ - $ 6,746 Commercial paper - 1,000 - 1,000 Corporate debt securities - 1,055 - 1,055 Total cash equivalents 6,746 2,055 - 8,801 Marketable securities: Commercial paper - 8,684 - 8,684 Debt securities issued by U.S. Government agencies - 35,155 - 35,155 Corporate debt securities - 44,972 - 44,972 Total marketable securities - 88,811 - 88,811 Total financial assets $ 6,746 $ 90,866 $ - $ 97,612 Fair Value Measurements at December 31, 2014 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents: Money market mutual funds $ 49 $ - $ - $ 49 Corporate debt securities - 1,357 - 1,357 Total cash equivalents 49 1,357 - 1,406 Marketable securities: Commercial paper - 998 - 998 Debt securities issued by U.S. Government agencies - 2,734 - 2,734 Municipal bonds - 353 - 353 Corporate debt securities - 12,785 - 12,785 Total marketable securities - 16,870 - 16,870 Total financial assets $ 49 $ 18,227 $ - $ 18,276 Liabilities: Interest rate swap derivatives $ - $ 665 $ - $ 665 Total financial liabilities $ - $ 665 $ - $ 665 The fair value of 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 classif ies these fair value measurements as Level 2 within the fair value hierarchy. The fair value of interest rate swap derivatives at December 31, 2015 was 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. December 31, 2015 December 31, 2014 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ 343,710 $ 298,400 $ 363,169 $ 370,769 8% Notes 120,393 132,028 - - Capital lease obligations 2,597 2,597 5,008 5,008 The respective fair values 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 $ 1.2 million and $0.9 million as of December 31, 2015 and 2014 , respectively, of which $1.1 million and $0.8 million, respectively, represents the Company’s investment in CoBank. This investment is primarily related to patronage distributions of restricted equity and is a required investment related to the portion of the Credit Facility held by CoBank. This investment is carried under the cost method. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8. 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 years ended December 31, 2015 , 2014 and 2013 are as follows: (In thousands, except per share amounts) 2015 2014 2013 Numerator: Net income attributable to Lumos Networks Corp. $ 10,026 $ 21,528 $ 17,773 Less: net income attributable to Lumos Networks Corp. allocable to participating securities (338) (540) (425) Numerator for basic and diluted earnings per common share 9,688 20,988 17,348 Denominator: Weighted average basic shares outstanding 22,825 22,328 21,887 Less: weighted average participating securities and nonvested performance-based restricted shares (791) (581) (579) Denominator for basic earnings per common share 22,034 21,747 21,308 Plus: potentially dilutive stock options 275 363 368 Denominator for diluted earnings per common share 22,309 22,110 21,676 Basic earnings per share $ 0.44 $ 0.97 $ 0.81 Diluted earnings per share $ 0.43 $ 0.95 $ 0.80 For the year ended December 31, 2015 , the denominator for diluted earnings per common share excludes 740,214 shares related to stock options and 24,000 shares related to restricted stock awards which would be antidilutive for the period . For the year ended December 31, 2014 , the denominator for diluted earnings per common share excludes 598,463 shares related to stock options and 17,383 shares related to restricted stock awards which would be antidilutive for the period . For the year ended December 31, 2013 , the denominator for diluted earnings per common share excludes 310,933 shares related to stock options and 20,100 shares related to restricted stock awards which would be antidilutive for the period . The earnings per share calculation for the year ended December 31, 2015 also excludes the 5,500,000 outstanding stock warrants described in Note 9 as they would be antidilutive for the period. |
Stock Options, Restricted Stock
Stock Options, Restricted Stock and Stock Warrants | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments And Stock Warrant [Abstract] | |
Stock Options, Restricted Stock and Stock Warrants | Note 9. 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 December 31, 2015 , the maximum number of shares of common stock available for awards under the Equity and Cash Incentive Plan is 5,500,000 and 1,182,061 securities remained available for issuance under the Equity and Cash Incentive Plan. Upon the exercise of stock options or upon the grant of restricted stock under the Equity and Cash Incentive Plan, new common shares are issued or treasury stock is reissued. The Company issued 6,680 stock options and 388,984 shares of restricted stock under the Equity and Cash Incentive Plan during the year ended December 31, 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 restricted stock awards vest on a graded vesting schedule over a five year period. 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. In 2013, the Company recognized compensation expense totaling $1.8 million related to the accelerated vesting of equity awards for which the target market price had been achieved. Dividend rights applicable to restricted stock with service-only vesting conditions are equivalent to the Company’s common stock. Restricted stock awards that vest based on achievement of a market condition are not eligible for dividends during the vesting period unless the Compensation Committee determines otherwise. Stock options must be granted under the Equity and Cash Incentive Plan at not less than 100 % of fair value on the date of grant and have a maximum life of ten years from the date of grant. Options and other awards under the Equity and Cash Incentive Plan may be exercised in compliance with such requirements as determined by a committee of the board of directors. Substantially all options outstanding were issued at a strike price equal to or greater than the fair value on the date of grant. The fair value of each option award with service-only vesting conditions is estimated on the grant date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The risk-free rate is based on the zero-coupon U.S. Treasury rate in effect at the time of grant, with a term equal to the expected life of the options. For awards granted in 2014 and 2015, the Company used historical trading prices for its common stock to estimate volatility assumptions. Prior to 2014, the Company used peer group and other publicly available market data to estimate volatility assumptions due to limited trading history of its own common stock. The expected option life represents the period of time that the options granted are expected to be outstanding and is determined using the simplified method. The expected dividend yield is estimated based on the Company’s actual dividend yield at the date of the grant. The weighted-average grant date fair value per share of stock options granted during the years ended December 31, 2015 , 2014 and 2013 was $8.09 , $6.68 and $3.33 , respectively. The following weighted-average assumptions were used in estimating the grant date fair value of these awards: Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Risk-free interest rate 1.90% 1.96% 1.34% Expected volatility 55.93% 59.52% 44.19% Expected dividend yield 0.00% 3.54% 4.70% Expected term 6.3 years 6.1 years 6.6 years The fair value of each restricted stock award with service-only vesting conditions is based on the closing price of the Company’s common stock on the grant date. The fair value for option awards and restricted stock awards with vesting that is conditional on achievement of market conditions is adjusted to reflect the probability of satisfying the market condition based on a Monte Carlo valuation model. The summary of the activity and status of the Company’s stock options for the year ended December 31, 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 2,226 $ 12.49 Granted during the period 7 14.87 Exercised during the period (27) 9.97 Forfeited during the period (8) 14.23 Expired during the period (16) 5.70 Stock options outstanding at December 31, 2015 2,182 $ 12.57 5.6 years $ 1,575 Stock options exercisable at December 31, 2015 1,545 $ 12.40 4.9 years $ 1,175 Total stock options outstanding, vested and expected to vest at December 31, 2015 2,136 $ 12.58 $ 1,528 The total intrinsic value of stock options exercised during the years ended December 31, 2015 , 2014 and 2013 was $0.1 million, $0.3 million and $0.9 million, respectively. The total fair value of options that vested during the years ended December 31, 2015 , 2014 and 2013 was $1.3 million, $ 0.5 million and $2.3 million, respectively. As of December 31, 2015 , there was $ 1.7 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.5 years. The summary of the activity and status of the Company’s restricted stock for the year ended December 31, 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 614 $ 13.26 Granted during the period 389 15.39 Vested during the period (117) 11.17 Forfeited during the period (25) 18.04 Restricted stock outstanding at December 31, 2015 861 $ 14.37 As of December 31, 2015 , there was $ 6.0 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of restricted stock awards that vested during the years ended December 31, 2015, 2014 and 2013 was $1.7 million, $1.7 million and $4.6 million, respectively. In addition to the Equity and Cash Incentive Plan discussed above, the Company has an employee stock purchase plan which commenced in November 2011 with 100,000 shares available. As of December 31, 2015 , 67,783 shares remained available for issuance under the employee stock purchase plan. New common shares will be issued for purchases under this plan or treasury shares will be reissued. Shares are priced at 85 % of the closing price on the last trading day of the month and settle on the second business day of the following month. During the year ended December 31, 2015 , 5,787 shares were issued under the employee stock purchase plan. Compensation expense associated with the employee stock purchase plan was less than $ 0.1 million for the years ended December 31, 2015 , 2014 and 2013 . 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 $4.44 per share, which was estimated using the Black-Scholes option pricing model and the following assumptions: Risk-free interest rate 1.61 % Expected volatility 41.53 % Expected dividend yield 0 % 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 consolidated balance sheet as of December 31, 2015, net of $1.3 million in issuance costs. A summary of the activity and status of the Company’s stock warrants for the year ended December 31, 2015, is as follows: (In thousands, except per share amounts) Shares Weighted Average Exercise Price per Share Stock warrants outstanding at December 31, 2014 - $ - Granted during the period 5,500 13.99 Exercised during the period - - Expired during the period - - Stock warrants outstanding at December 31, 2015 5,500 $ 13.99 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10. Income Taxes The components of income tax expense (benefit) are as follows for the years ended December 31, 2015 , 2014 and 2013 : (In thousands) 2015 2014 2013 Current tax expense (benefit): Federal $ - $ - $ - State 379 (68) 516 Total current tax expense (benefit) 379 (68) 516 Deferred tax expense: Federal 6,319 11,908 10,102 State 448 2,569 1,401 Total deferred tax expense 6,767 14,477 11,503 Total income tax expense $ 7,146 $ 14,409 $ 12,019 Total income tax expense was different than an amount computed by applying the graduated federal statutory income tax rates to income before taxes. The reasons for the differences are as follows for the years ended December 31, 2015 , 2014 and 2013 : (In thousands) 2015 2014 2013 Computed tax expense at federal statutory rate of 35% $ 6,065 $ 12,620 $ 10,470 Nondeductible compensation 122 27 307 Noncontrolling interests (61) (47) (50) Nondeductible public offering costs 112 - 285 State income taxes, net of federal income tax impact 538 1,626 1,246 Nondeductible interest 578 - - Other, net (208) 183 (239) Total income tax expense $ 7,146 $ 14,409 $ 12,019 During the years ended December 31, 2015 and 2013 , the Company recognized excess tax benefits of approximately $0.2 million and $1.1 million, respectively, in additional paid-in-capital related to stock compensation plans. During the year ended December 31, 2014 , the Company reclassified tax benefits of approximately $1.5 million from additional paid-in capital to deferred tax liabilities associated with unrealized excess tax benefits related to stock compensation plans. As of December 31, 2015 , these tax benefits are available to offset future taxable income. The Company recognized tax expense (benefits) of $0.4 million, $ (5.4) million and $ 5. 5 million in accumulated other comprehensive income associated with the adjustments to various employee benefit plan liabilities for the years ended December 31, 2015 , 2014 and 2013 , respectively, in accordance with FASB ASC 715. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities at December 31, 2015 and 2014 are presented below: (In thousands) 2015 2014 Deferred income tax assets: Retirement benefits other than pension $ 2,167 $ 2,337 Pension and related plans 4,588 4,872 Net operating loss 16,509 9,488 Accrued expenses 6,848 4,588 Other 425 725 Total deferred income tax assets 30,537 22,010 Deferred income tax liabilities: Property and equipment (111,846) (97,460) Intangibles (7,884) (6,813) Total deferred income tax liabilities (119,730) (104,273) Net deferred income tax liability $ (89,193) $ (82,263) At December 31, 2015 , the Company had federal net operating losses (“NOLs”) of $ 4 8.0 million, net of adjustments for unrecognized income tax benefits (“UTBs”). The Company’s NOLs, if not utilized to reduce taxable income in future periods, will expire in varying amounts from 202 2 through 203 5 . The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The Company recognizes interest related to UTBs in interest expense and penalties on UTBs in income tax expense. A reconciliation of the change in the UTB balance for the years ended December 31, 2015 and 2014 is as follows: (In thousands) 2015 2014 Balance at beginning of year $ 1,112 $ 1,125 Additions for tax positions related to the current year 297 344 Increases for tax positions related to prior years 109 11 Statute of limitations expiration (162) (368) Balance at end of year $ 1,356 $ 1,112 All of the Company’s UTBs as of December 31, 2015 and 2014 were adjusted through income tax expense. The Company does not expect to have any material changes to its UTBs over the next twelve months. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than its accrued position. Accordingly, additional provisions could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. In general, the tax years that remain open and subject to federal and state audit examinations are 2012-2015 as of December 31, 2015 . |
Pension Plans And Other Postret
Pension Plans And Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Pension Plans And Other Postretirement Benefits | Note 11. Pension Plans and Other Postretirement Benefits The Company sponsors a non-contributory defined benefit pension plan (“Pension Plan”), as well as non-qualified pension plans and other postretirement benefit plan (“OPEB”) for its eligible employees. The Company recognized total income of $1.3 million, $ 1.1 million (excluding the curtailment gain discussed below) and $0.7 million in 2015 , 2014 and 2013, respectively, for all qualified and non-qualified pension and OPEB plans. Effective December 31, 2012, the Company froze the accumulation of benefits under the Pension Plan and the supplemental executive retirement plan. As such, no further benefits will be accrued by plan participants for services rendered after that date under either of these plans. Effective December 31, 2014, the Company terminated the health care benefits under the Other Postretirement Benefit Plans. Eligible retirees will receive partial compensation for settlement of accrued benefits through a series of supplemental pension payments. As a result, the Company recognized a curtailment gain of approximately $10.8 million in the year ended December 31, 2014, which was calculated as the decrease in the accumulated benefit obligation resulting from the termination of the medical portion of the Other Postretirement Benefit Plans less unrecognized losses in accumulated other comprehensive loss and less the actuarially determined cost of the benefit obligation that was transferred to the Pension Plan in the form of supplemental benefit payments on December 31, 2014. The following tables provide a reconciliation of the changes in the qualified plans’ benefit obligations and fair value of assets and a statement of the funded status as of December 31, 2015 , 2014 and 2013 and the classification of amounts recognized in the consolidated balance sheets: Defined Benefit Pension Plan Other Postretirement Benefit Plans (In thousands) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Change in benefit obligations: Benefit obligations, beginning of period $ 70,892 $ 57,209 $ 64,511 $ 844 $ 12,800 $ 12,874 Service cost - - - - 80 91 Interest cost 2,664 2,622 2,432 31 373 485 Actuarial loss (gain) (4,550) 13,547 (7,199) (83) 887 26 Benefits paid, net (3,281) (2,956) (2,756) (27) (671) (676) Curtailment gain - - - - (12,625) - Transfer - 470 221 - - - Benefit obligations, end of period 65,725 70,892 57,209 765 844 12,800 Change in plan assets: Fair value of plan assets, beginning of period 58,403 57,847 51,675 - - - Actual return on plan assets (1,166) 3,555 8,897 - - - Employer contributions - - - 27 671 676 Benefits paid (3,325) (2,999) (2,812) (27) (671) (676) Transfer - - 87 - - - Fair value of plan assets, end of period 53,912 58,403 57,847 - - - Funded status: Non-current asset - - (638) - - - Current liabilities - - - 72 72 671 Non-current liabilities 11,813 12,489 - 693 772 12,129 Funded status recognized in the consolidated balance sheets $ 11,813 $ 12,489 $ (638) $ 765 $ 844 $ 12,800 Amounts recognized in accumulated other comprehensive loss: Net actuarial (loss) gain (17,899) (18,119) (3,711) 18 (65) (1,211) Income taxes 6,981 7,066 1,444 (7) 25 471 Net amount recognized in accumulated other comprehensive loss $ (10,918) $ (11,053) $ (2,267) $ 11 $ (40) $ (740) The accumulated benefit obligation for the defined benefit pension plan at December 31, 2015 and 2014 was $65.7 million and $ 70.9 million, respectively. The decrease in the projected benefit obligation is primarily attributable to actuarial gains resulting from an increase in the discount rate from 3.85% at December 31, 2014 to 4.20% at December 31, 2015 and adjusted mortality tables. The accumulated benefit obligation represents the present value of pension benefits based on service and salary earned to date. The benefit obligation indicated in the table above is the projected benefit obligation which represents the present value of pension benefits taking into account projected future service and salary increases. The projected benefit obligation is equal to the accumulated benefit obligation as of December 31, 2015 and 2014 since the Pension Plan was frozen effective as of December 31, 2012. The total amounts reclassified out of accumulated other comprehensive income related to amortization of actuarial losses for the pension and other postretirement benefit plans for the years ended December 31, 2015 , 2014 and 2013 were $ 1.0 million, less than $0.1 million, and $1.0 million, respectively. Amortization of actuarial losses is included in selling, general and administrative expenses on the consolidated statements of income. The following table provides the components of net periodic (benefit) expense for the plans for the years ended December 31, 2015 , 2014 and 2013 : Defined Benefit Pension Plan Other Postretirement Benefit Plans (In thousands) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Components of net periodic (benefit) expense: Service cost $ - $ - $ - $ - $ 80 $ 91 Interest cost 2,664 2,622 2,432 31 373 485 Expected return on plan assets (4,111) (4,373) (3,901) - - - Amortization of loss 991 - 918 - 23 28 Net periodic (benefit) expense $ (456) $ (1,751) $ (551) $ 31 $ 476 $ 604 Actuarial gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants. The assumptions used in the measurements of the Company’s benefit obligations at December 31, 2015 and 2014 are shown in the following table: Defined Benefit Pension Plan Other Postretirement Benefit Plans December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Discount rate 4.20 % 3.85 % 4.20 % 3.85 % Rate of compensation increase N/A N/A N/A N/A The assumptions used in the measurements of the Company’s net income or expense for the consolidated statement s of income for the years ended December 31, 2015 , 2014 and 2013 were as follows: Defined Benefit Pension Plan Other Postretirement Benefit Plans Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Discount rate 3.85 % 4.70 % 3.85 % 3.85 % 4.70 % 3.85 % Expected return on plan assets 7.25 % 7.75 % 7.75 % N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A The Company reviews the assumptions noted in the above table annually or more frequently to reflect anticipated future changes in the underlying economic factors used to determine these assumptions. The discount rates assumed reflect the rate at which the Company could invest in high quality corporate bonds in order to settle future obligations. In doing so, the Company utilizes a Citigroup Pension Discount Curve applied against the Company’s estimated defined benefit payments to derive a blended rate. The Citigroup Pension Discount Curve is derived from over 350 Aa corporate bonds . The Company also compares this to a Moody’s ten year Aa bond index for reasonableness. In developing the expected long-term rate of return assumption for the assets of the Pension Plan, the Company evaluated input from its third party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions. The Company also considered the related historical ten-year average asset return at December 31, 2015 as well as considering input from the Company’s third party pension plan asset managers. The weighted average actual asset allocations by asset category and the fair value by asset category as of December 31, 2015 and 2014 were as follows: (Dollars in thousands) December 31, 2015 December 31, 2014 Asset Category Actual Allocation Fair Value Actual Allocation Fair Value Large Cap Value 23 % $ 12,193 23 % $ 13,120 Large Cap Blend 11 % 6,085 11 % 6,622 Mid Cap Blend 6 % 3,342 6 % 3,585 Small Cap Blend 4 % 2,080 4 % 2,511 Foreign Stock - Large Cap 7 % 3,817 7 % 3,969 Bond 34 % 18,239 34 % 19,806 Cash and cash equivalents 15 % 8,156 15 % 8,790 Total 100 % $ 53,912 100 % $ 58,403 The actual and target allocation for plan assets is broadly defined and measured as follows: December 31, 2015 December 31, 2014 Asset Category Actual Allocation Target Allocation Actual Allocation Target Allocation Equity securities 51 % 50 % 51 % 50 % Bond securities and cash equivalents 49 % 50 % 49 % 50 % Total 100 % 100 % 100 % 100 % It is the Company’s policy to invest pension plan assets in a diversified portfolio consisting of an array of asset classes. The investment risk of the assets is limited by appropriate diversification both within and between asset classes. The assets are primarily invested in investment funds that invest in a broad mix of publicly traded equities, bonds and cash equivalents (and fair value is based on quoted market prices (Level 1 input within the fair value hierarchy previously defined)). The allocation between equity and bonds is reset quarterly to the target allocations. Updates to the allocation are considered in the normal course and changes may be made when appropriate. The bond holdings consist of three bond funds split relatively evenly between these funds at December 31, 2015 . At December 31, 2015 , the Company believes that there are no material concentrations of risk within the portfolio of plan assets. The assumed long term return noted above is the target long term return. Overall return, risk adjusted return, and management fees are assessed against a peer group and benchmark indices. Reporting on asset performance is provided quarterly and review meetings are held semi-annually. In addition to normal rebalancing to maintain an adequate cash reserve, projected cash flow needs of the plan are reviewed at least annually to ensure liquidity is properly managed. The Company did not contribute to the Pension Plan in 2015, 2014 or 2013 and does not expect to contribute to the Pension Plan in 2016. The Company expects the net periodic expense for the Pension Plan in 2016 to be $ 0.2 million and the expense for the other postretirement benefit plans in 2016 to be less than $ 0.1 million. The following estimated future pension benefit payments and other postretirement benefit plan payments which reflect expected future service, as appropriate, are expected to be paid in the years indicated: (In thousands) Year Defined Benefit Pension Plan Other Postretirement Benefit Plans 2016 $ 3,048 $ 111 2017 3,104 57 2018 3,105 57 2019 3,194 56 2020 3,237 55 2021-2025 17,210 256 Other Benefit Plans The Company also has a supplemental executive retirement plan (“SERP”). T he Company froze the SERP effective December 31, 2012. As such, no further benefits will be accrued by plan participants for services rendered and the accumulated benefit obligation is equivalent to the projected benefit obligation for periods ending after that date. The projected benefit obligation was $4.6 million, $4.9 million and $4.3 million as of December 31, 2015 , 2014 and 2013 , respectively. The Company recognized $0.4 million, $0.2 million and $0.3 million of expense from previously unrecognized loss related to the supplemental executive retirement plan during the years ended December 31, 2015 , 2014 and 2013, respectively, all of which is included in selling, general and administrative expenses in the consolidated statements of income. The total amount of unrecognized actuarial losses recognized in accumulated other comprehensive income at December 31, 2015 and 2014 related to this plan was $ 1 . 0 million, net of income taxes of $ 0. 6 million, and $ 1.4 million, net of income taxes of $ 0.9 million, respectively. The e stimated future benefit payments are expected to be $ 0.2 million annually for each of the years 2016 through 2020 and $ 1.4 million in aggregate for the years 2021 through 2025. The Company also has certain other nonqualified postretirement plans assumed from a prior merger. The projected benefit obligation related to these plans at December 31, 2013 was $ 0.4 million. The Company curtailed the medical benefits under these plans as of December 31, 2014, as such there is no material future obligation associated with these plans. The Company also sponsors a defined contribution 401(k) plan. The Company’s matching contributions to this plan were $ 1.1 million, $ 1.0 million and $ 0.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company funds its 401(k) matching contributions in shares of the Company’s common stock. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 12. Related Party Transactions ValleyNet, an equity method investee of the Company, resells capacity on the Company’s fiber network under an operating lease agreement. Facility lease revenue from ValleyNet was approximately $4.7 million, $5.0 million and $4.7 million in the years ended December 31, 2015, 2014 and 2013, respectively, which is presented in the Company’s data segment revenue. At both December 31, 2015 and 2014, the Company had accounts receivable from ValleyNet of approximately $0.4 million. The Company also leases and resells capacity from ValleyNet. The total lease expense was $1.2 million, $0.9 million and $0.9 million in the years ended December 31, 2015, 2014 and 2013, respectively, which is presented as network access costs in the consolidated statements of income. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 13. Commitments and Contingencies Operating Leases Rental expense for all operating leases for the years ended December 31, 2015 , 2014 and 2013 was $ 2.7 million, $ 2.4 million and $ 2.9 million, respectively. The total amount committed under these lease agreements at December 31, 2015 is: $ 1.5 million in 2016, $ 1.3 million in 2017, $ 1.2 million in 2018, $ 0.9 million in 2019, $ 0.3 million in 2020 and $ 0.8 million for the years thereafter. Other Commitments and Contingencies The Company periodically makes claims or receives disputes and is involved in legal actions related to billings to other carriers for access to the Company’s network. The Company does not recognize revenue related to such matters until collection of the claims is reasonably assured. In addition to this, the Company periodically disputes access charges that are assessed by other companies with which the Company interconnects and is involved in other disputes and legal and tax proceedings and filings arising from normal business activities. The Company is involved in routine litigation and disputes in the ordinary course of its business. While the results of litigation and disputes are inherently unpredictable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows, and believes that adequate provision for any probable and estimable losses has been made in the Company’s consolidated financial statements. The Company has other purchase commitments relating to capital expenditures totaling $ 6.9 million as of December 31, 2015 , which are expected to be satisfied during 2016. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the valuation of deferred tax assets and/or liabilities, asset retirement obligations and equity-based compensation; goodwill impairment assessments; actuarial determination of employee benefi t obligations; stock warrants; and reserve for u ncertain income tax positions. |
Changes in Accounting Principle | Changes 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 consolidated 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 $10.5 million of debt issuance costs as a reduction to long-term debt in the consolidated balance sheet as of December 31, 2015. The Company also reclassified $5.2 million of debt issuance costs from deferred charges and other assets to a reduction to long-term debt on the 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 consolidated statements of income or comprehensive income or cash flows. The Company historicall y classified its deferred tax asset and/or deferred tax liability as either current or noncurrent on the consolidated balance sheets in accordance with existing GAAP. In the fourth quarter of 2015, the Company elected early adoption of FASB ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”) and applied it retrospectively to all prior periods presented in the financial statements. ASU 2015-17 simplifies the presentation of deferred income taxes by requiring that deferred tax assets and deferred tax liabilities be offset by tax jurisdiction and the resulting net deferred tax asset and/or net deferred tax liability amount be classified as noncurrent in the consolidated balance sheet. The adoption of ASU 2015-17 resulted in the presentation of $2.4 million of deferred tax assets as a reduction to the noncurrent deferred liability in the consolidated balance sheet as of December 31, 2015. The Company also reclassified $5.6 million of deferred tax assets from current assets to a reduction to the noncurrent net deferred tax liability as of December 31, 2014. The adoption of ASU 2015-07 did not impact net income or any other amounts previously reported on the consolidated statements of income or comprehensive income or cash flows. |
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 and 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 re cognized at the point of sale. |
Cash Equivalents And Marketable Securities | Cash Equivalents and Marketable Securities The Company considers its investments in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company’s marketable securities at December 31, 2015 and 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 the unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of December 31, 2015 and 2014. The Company previously utilized a swingline credit facility that it had with its primary commercial bank. This swingline facility was terminated in April 2013, concurrent with the closing of the Company’s debt refinancing (see Note 5). The Company had a book overdraft related to this master cash account of $ 1.8 million as of December 31, 2012. The Company classified the changes in the book overdraft amount in cash flows from operating activities on the consolidated statement of cash flows for the year ended December 31, 2 013. |
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 December 31, 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 to be drawn down ratably following the grant reimbursement approvals which were contingent on adherence to the program requirements. The Company received $3.8 million, $ 0.1 million and $ 1.0 million in the years ended December 31, 2015 , 2014 and 2013 , respectively, for the reimbursable portion of the qualified recoverable expenditures. T he Company has no remaining receivable for the reimbursable portion of the qualified recoverable expenditures as of December 31, 2015 and all amounts from the pledged account were released as of December 31, 2015. |
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 consolidated statements of income. The following table shows the activity in the allowance for doubtful accounts and customer credits for the years ended December 31, 2015 , 2014 and 2013 : (In thousands) 2015 2014 2013 Allowance for doubtful accounts and customer credits, beginning $ 1,217 $ 1,485 $ 1,822 Additions: Charged to expense 461 604 249 Charged to other accounts 96 (19) 346 Deductions (539) (853) (932) Allowance for doubtful accounts and customer credits, ending $ 1,235 $ 1,217 $ 1,485 |
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 determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. The Company believes that no impairment indicators exist as of December 31, 2015 that would require it to perform impairment testing for long-lived assets, including property, plant and equipment, long-term deferred charges and finite-lived intangible assets to be held and used. 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 experience and future expectations. As of December 31, 2015 the estimated lives for each category of property, plant and equipment are as follows: Estimated Life Buildings 50 years Network plant and equipment 3 to 25 years Furniture, fixtures and other equipment 2 to 24 years Leasehold improvements, which are categorized in land and buildings, are depreciated over the shorter of the estimated useful lives or the remaining lease terms. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Amortization of assets held under capital leases, including certain software licenses, is included with depreciation expense. Intangibles with a finite life are classified as other intangibles on the consolidated balance sheets. At December 31, 2015 and 2014 , other intangibles were comprised of the following: 2015 2014 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (93,051) $ 103,108 $ (88,406) Trademarks and franchise rights 10 to 15 yrs 2,862 (1,841) 2,862 (1,680) Total $ 105,970 $ (94,892) $ 105,970 $ (90,086) The Company amortizes its finite-lived intangible assets using the straight-line method unless it determines that another systematic method is more appropriate. The amortization for certain customer relationship intangibles is being recognized using an accelerated amortization method based on the pattern of estimated earnings from these assets. The estimated life of amortizable intangible assets is determined from the unique factors specific to each asset and the Company reviews and updates estimated lives based on current events and future expectations. The Company capitalizes costs incurred to renew or extend the term of a recognized intangible asset and amortizes such costs over the remaining life of the asset. No such costs were incurred during the years ended December 31, 2015 or 2014 . Amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $ 4.8 million, $ 9.2 million and $ 9.8 million, respectively. Amortization expense for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total 2016 $ 2,412 $ 163 $ 2,575 2017 2,093 163 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and franchise rights are considered to be indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but are instead tested for impairment annually or more frequently if an event indicates that the asset might be impaired. The Company’s policy is to assess the recoverability of indefinite-lived assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. The Company first considers whether to take a qualitative approach in determining whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test promulgated by FASB ASC Topic 350. If the Company determines that it is more likely than not that a reporting unit’s fair value is less than its carrying amount or if the Company elects to bypass the qualitative test for a specific period, the two-step process is used to test for goodwill impairment. Step one requires a determination of the fair value of each of the reporting units and, to the extent that the fair value of the reporting unit exceeds its carrying value (including goodwill), the step two calculation of implied fair value of goodwill is not required and no impairment loss is recognized. In testing for goodwill impairment, the Company utilizes a market approach that includes the use of comparable multiples of publicly traded companies whose services are comparable to ours and recent M&A activity. As of December 31, 2015 , goodwill was attributed to the Company’s segments as follows: (In thousands) December 31, 2015 Data $ 90,561 R&SB 9,736 RLEC Access - Total goodwill $ 100,297 As of October 1, 2015, the Company performed its annual goodwill impairment test for each of its reporting units with goodwill, which are two of our three operating segments (data and R&SB). After a preliminary assessment, the Company elected to bypass the qualitative assessment and applied step one of the quantitative test as described above. Based on the results of this annual impairment testing, the Company determined that the fair values of each of the data and R&SB reporting units substantially exceed their respective carrying amounts and that no impairment exists. The gross amount of goodwill was $133.7 million and the accumulated impairment loss was $33.4 million for a net carrying amount of $100.3 million as of December 31, 2015 and 2014 . There was no activity in the consolidated goodwill accounts for the years ended December 31, 2015 , 2014 and 201 3 . |
Accounting For Asset Retirement Obligations | Accounting for Asset Retirement Obligations An asset retirement obligation is evaluated and recorded as appropriate on assets for which the Company has a legal obligation to retire. The Company records a liability for an asset retirement obligation and the associated asset retirement cost capitalized at the time the underlying asset is acquired. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The Company enters into various facility collocation agreements and is subject to locality franchise ordinances. The Company constructs assets at these locations and, in accordance with the terms of many of these agreements, the Company is obligated to restore the premises to their original condition at the conclusion of the agreements, generally at the demand of the other party to these agreements. The Company recognizes the fair value of a liability for an asset retirement obligation and capitalizes that cost as part of the cost basis of the related asset, depreciating it over the useful life of the related asset. Included in certain of the franchise ordinances under which the Company’s RLECs and CLECs operate are clauses that require the removal of the RLEC’s and CLEC’s equipment at the termination of the franchise agreement. The Company has not recognized an asset retirement obligation for these liabilities as the removal of the equipment is not estimable due to an indeterminable end date and the fact that the equipment is part of the public switched telephone network and it is not reasonable to assume the jurisdictions would require its removal. The following table indicates the changes to the Company’s asset retirement obligation liability, which is included in other long-term liabilities, for the years ended December 31, 2015 and 2014 : (In thousands) 2015 2014 Asset retirement obligations, beginning $ 1,500 $ 1,401 Additional asset retirement obligations recorded, net of adjustments in estimates 81 (19) Accretion of asset retirement obligations 139 118 Asset retirement obligations, ending $ 1,720 $ 1,500 |
Advertising Costs | Advertising Costs The Company expenses advertising costs and marketing production costs as incurred (included within selling, general and administrative expenses in the consolidated statements of income). Advertising expense for the years ended December 31, 2015 , 2014 and 2013 was $0.7 million, $ 1.4 million and $ 0.8 million, respectively. |
Pension Benefits and Retirement Benefits Other Than Pensions | Pension Benefits and Retirement Benefits Other Than Pensions The Company sponsors a non-contributory defined benefit pension plan (“Pension Plan”) covering all employees who meet eligibility requirements and were employed prior to October 1, 2003. Pension benefits vest after five years of plan service and are based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. The Company froze the Pension Plan effective December 31, 2012. As such, no further benefits are being accrued by participants for services rendered beyond that date. The Company has a nonqualified pension plan that was also frozen as of December 31, 2012. Sections 412 and 430 of the Internal Revenue Code and ERISA Sections 302 and 303 establish minimum funding requirements for defined benefit pension plans. The minimum required contribution is generally equal to the target normal cost plus the shortfall amortization installments for the current plan year and each of the six preceding plan years less any calculated credit balance. The Company’s policy is to make contributions to stay at or above the threshold required in order to prevent benefit restrictions and related additional notice requirements and is intended to provide for benefits to be paid in the future. The Company is required to rec ognize the overfunded or underfunded status of a defined benefit pension plan as an asset or liability in its c onsolidated b alance s heets and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income (loss). The Company is required to measure plan assets and benefit obligations as of the date of the Company’s fiscal year-end balance sheet and provide the required disclosures as of the end of each fiscal year. The Company also provides certain life insurance benefits for retired employees that meet eligibility requirements through the postretirement welfare benefit plan (the “Other Postretirement Benefit Plan”), which is contributory. These obligations, along with all of the pension plans and other postretirement benefit plans, are assumed by the Company. Eligibility for the life insurance plan is restricted to active pension participants age 50-64 as of January 5, 1994 and is not eligible to employees hired after April 1993. The Company previously provided health care benefits for retired employees, however, the Company terminated those benefits effective December 31, 2014. Eligible retirees received partial compensation for settlement of accrued benefits through a series of supplemental pension payments in 2014. As a result, the Company recognized a curtailment gain of $10.8 million in the year ended December 31, 2014 (see Note 11) . The Company accounts for the pension and retirement benefits other than pensions by accruing the cost of such benefits over the service lives of employees. Unrecognized actuarial gains and losses are amortized over the estimated average remaining service period for active employees and over the estimated average remaining life for retirees. The Company recognizes in its consolidated balance sheets the amount of the Company’s unfunded Accumulated Postretirement Benefit Obligation (“APBO”) at the end of the year. Amounts recognized in accumulated other comprehensive income (loss) are adjusted out of accumulated other comprehensive income (loss) when they are subsequently recognized as components of net periodic benefit cost. The Company sponsors a contributory defined contribution plan under Internal Revenue Code Section 401(k) for substantially all employees. The Company’s policy is to match 100 % of each participant’s annual contributions for contributions up to 1 % of each participant’s annual compensation and 50 % of each participant’s annual contributions up to an additional 5 % of each participant’s annual compensation. Company contributions vest after two years of service. |
Operating Leases | Operating Leases The Company has operating leases for administrative office space and equipment, certain of which have renewal options. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. The Company’s minimum lease term for most leases includes the initial non-cancelable term and at least one renewal period to the extent that the exercise of the related renewal option or options is reasonably assured. A renewal option or options is determined to be reasonably assured if failure to renew the leases imposes an in-substance economic penalty on the Company. Leasehold improvements are capitalized and depreciated over the shorter of the assets’ useful life or the lease term, including renewal option periods that are reasonably assured. |
Income Taxes | Income Taxes Deferred income taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. The Company accrues interest and penalties related to unrecognized tax benefits in interest expense and income tax expense, respectively. For balance sheet presentation purposes, the Company nets its deferred tax asset and deferred tax liability positions by tax jurisdiction and classifies the resulting net deferred tax asset and/or net deferred tax liability as noncurrent in accordance with ASU 2015-17. |
Equity-Based Compensation | Equity-based Compensation The Company accounts for share-based employee compensation plans under FASB ASC 718, Stock Compensation . Equity-based compensation expense from share-based equity awards is recorded with an offsetting increase to additional paid-in capital on the consolidated balance sheet. For equity awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. The fair value of common stock options granted with service-only conditions is estimated at the respective measurement date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The fair value of restricted stock awards granted with service-only conditions is estimated based on the market value of the common stock on the date of grant reduced by the present value of expected dividends as applicable. Certain stock options and restricted shares granted by the Company contain vesting provisions that are conditional on achievement of a target market price for the Company’s common stock. The grant date fair value of these options and restricted shares was adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model (see Note 9). The Company initially recognizes the related compensation cost for these awards that contain a market condition on a straight-line basis over the requisite service period as derived from the valuation model. The Company accelerates expense recognition if the market conditions are achieved prior to the end of the derived requisite service period. Total equity-based compensation expense related to all of the share-based awards (Note 9), including the Company’s 401(k) matching contributions, was $5.9 million, $4.3 million and $6.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which amounts are included in selling, general and administrative expenses in the consolidated statements of income. Future charges for equity-based compensation related to instruments outstanding at December 31, 2015 for the years 2016 through 2018 are estimated to be $ 4.0 million, $ 3.3 million, $ 1.0 million and less than $0.1 million for each of 2019 and 2020, respectively. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value or for certain financial instruments for which disclosure of fair value is required, the Company uses fair value techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. GAAP establishes a fair value hierarchy with three levels of inputs that may be used to measure fair value: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. • Level 3 – Unobservable inputs for the asset or liability. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , 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 disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ( “ASU 2016-02”), which will replace most existing lease guidance in U.S. GAAP when it becomes effective. ASU 2016-02 requires an entity to recognize most leases, including operating leases, on the consolidated balance sheet of the lessee. ASU 2016-02 is effective for public business entities for annual reporting periods beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 requires the use of a modified retrospective transition method with elective reliefs. The Company is still evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and disclosures. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule Of Valuation And Qualifying Accounts [Table Text Block] | (In thousands) 2015 2014 2013 Allowance for doubtful accounts and customer credits, beginning $ 1,217 $ 1,485 $ 1,822 Additions: Charged to expense 461 604 249 Charged to other accounts 96 (19) 346 Deductions (539) (853) (932) Allowance for doubtful accounts and customer credits, ending $ 1,235 $ 1,217 $ 1,485 |
Property, Plant and Equipment [Table Text Block] | Estimated Life Buildings 50 years Network plant and equipment 3 to 25 years Furniture, fixtures and other equipment 2 to 24 years |
Finite-Lived Intangibles Assets | 2015 2014 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (93,051) $ 103,108 $ (88,406) Trademarks and franchise rights 10 to 15 yrs 2,862 (1,841) 2,862 (1,680) Total $ 105,970 $ (94,892) $ 105,970 $ (90,086) |
Schedule Of Future Amortization Expense | (In thousands) Customer Relationships Trademarks and Franchise Rights Total 2016 $ 2,412 $ 163 $ 2,575 2017 2,093 163 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 |
Schedule Of Goodwill Attributed To Segments | (In thousands) December 31, 2015 Data $ 90,561 R&SB 9,736 RLEC Access - Total goodwill $ 100,297 |
Schedule Of Changes In Asset Retirement Obligations | (In thousands) 2015 2014 Asset retirement obligations, beginning $ 1,500 $ 1,401 Additional asset retirement obligations recorded, net of adjustments in estimates 81 (19) Accretion of asset retirement obligations 139 118 Asset retirement obligations, ending $ 1,720 $ 1,500 |
Cash Equivalents And Marketab25
Cash Equivalents And Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value | (In thousands) December 31, 2015 December 31, 2014 Cash equivalents: Money market mutual funds $ 6,746 $ 49 Commercial paper 1,000 - Corporate debt securities 1,055 1,357 Total cash equivalents 8,801 1,406 Marketable securities: Commercial paper 8,684 998 Debt securities issued by U.S. Government agencies 35,155 2,734 Municipal bonds - 353 Corporate debt securities 44,972 12,785 Total marketable securities, available-for-sale 88,811 16,870 Total cash equivalents and marketable securities $ 97,612 $ 18,276 |
Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities | (In thousands) Total Due in one year or less $ 88,561 Due after one year through two years 250 Total debt securities $ 88,811 |
Disclosures About Segments of26
Disclosures About Segments of an Enterprise and Related Information (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2015 Operating revenues $ 114,311 $ 67,214 $ 22,744 $ - $ 204,269 Network access costs 16,728 22,582 - - 39,310 Network operating and selling costs 31,477 14,835 1,058 - 47,370 Other general and administrative expenses 14,631 8,242 2,713 7,231 32,817 Adjusted EBITDA (1) 51,475 21,555 18,973 - 92,003 Capital expenditures 98,535 9,545 - 7,595 115,675 For the year ended December 31, 2014: Operating revenues $ 106,642 $ 72,028 $ 22,786 $ - $ 201,456 Network access costs 15,990 24,878 - - 40,868 Network operating and selling costs 24,833 17,656 1,544 - 44,033 Other general and administrative expenses 14,094 9,594 3,003 (5,942) 20,749 Adjusted EBITDA (1) 51,725 19,900 18,239 10,774 100,638 Capital expenditures 66,570 7,089 - 10,441 84,100 For the year ended December 31, 2013: Operating revenues $ 104,112 $ 80,659 $ 22,704 $ - $ 207,475 Network access costs 15,801 26,616 - - 42,417 Network operating and selling costs 22,616 19,869 1,850 - 44,335 Other general and administrative expenses 12,191 9,515 2,693 8,015 32,414 Adjusted EBITDA (1) 53,504 24,659 18,161 - 96,324 Capital expenditures 48,085 6,693 1,634 11,922 68,334 (1) The Company’s CODMs evaluate performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization and accretion of asset retirement obligations, net income attributable to noncontrolling interests, other (income) expenses, net, equity-based compensation, amortization of actuarial losses, employee separation charges, restructuring charges and gain (loss) on interest rate swap derivatives. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company’s reasons for using this non-GAAP financial measure. |
Reconciliation Of Net Income Attributable to Lumos Networks Corp. to Adjusted EBITDA | Year Ended December 31, (In thousands) 2015 2014 2013 Net Income Attributable to Lumos Networks Corp. $ 10,026 $ 21,528 $ 17,773 Net Income Attributable to Noncontrolling Interests 157 120 121 Net income 10,183 21,648 17,894 Income tax expense 7,146 14,409 12,019 Interest expense 19,918 15,575 14,191 (Gain) loss on interest rate swap derivatives (665) (492) 144 Other (income) expenses, net (114) (664) 1,587 Operating Income 36,468 50,476 45,835 Depreciation and amortization and accretion of asset retirement obligations 47,666 45,330 42,424 Amortization of actuarial losses 1,350 248 1,237 Equity-based compensation 5,881 4,340 6,778 Restructuring charges 638 - 50 Employee separation charges (1) - 244 - Adjusted EBITDA $ 92,003 $ 100,638 $ 96,324 (1) Employee separation charges in 2014 include employee separation benefits which were provided for in the separation agreements of an executive officer who left the Company. These charges are included in selling, general and administrative expense on the consolidated statements of income . |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-Term Debt | December 31, 2015 December 31, 2014 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ 348,415 $ 4,705 $ 368,375 $ 5,206 8% Notes due 2022 150,000 29,607 - - Capital lease obligations 2,597 - 5,008 - Long-term debt 501,012 34,312 373,383 5,206 Less: Current portion of long-term debt 10,400 - 10,227 - Long-term debt, excluding current portion $ 490,612 $ 34,312 $ 363,156 $ 5,206 |
Supplementary Disclosures Of 28
Supplementary Disclosures Of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | |
Supplementary Disclosures of Cash Flow Information | (In thousands) 2015 2014 2013 Cash payments (receipts): Interest (net of amounts capitalized) $ 12,467 $ 13,206 $ 13,278 Income taxes 843 (680) 970 Supplemental investing and financing activities: Additions to property and equipment included in accounts payable and other accrued liabilities 6,906 8,373 6,145 Capital lease obligations - 123 6,544 Dividend declared not paid $ - $ 3,152 $ 3,091 |
Fair Value Of Financial Instr29
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Of Financial Instruments [Abstract] | |
Summary Of Financial Assets And Liabilities Measured At Fair Value | Fair Value Measurements at December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents: Money market mutual funds $ 6,746 $ - $ - $ 6,746 Commercial paper - 1,000 - 1,000 Corporate debt securities - 1,055 - 1,055 Total cash equivalents 6,746 2,055 - 8,801 Marketable securities: Commercial paper - 8,684 - 8,684 Debt securities issued by U.S. Government agencies - 35,155 - 35,155 Corporate debt securities - 44,972 - 44,972 Total marketable securities - 88,811 - 88,811 Total financial assets $ 6,746 $ 90,866 $ - $ 97,612 Fair Value Measurements at December 31, 2014 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents: Money market mutual funds $ 49 $ - $ - $ 49 Corporate debt securities - 1,357 - 1,357 Total cash equivalents 49 1,357 - 1,406 Marketable securities: Commercial paper - 998 - 998 Debt securities issued by U.S. Government agencies - 2,734 - 2,734 Municipal bonds - 353 - 353 Corporate debt securities - 12,785 - 12,785 Total marketable securities - 16,870 - 16,870 Total financial assets $ 49 $ 18,227 $ - $ 18,276 Liabilities: Interest rate swap derivatives $ - $ 665 $ - $ 665 Total financial liabilities $ - $ 665 $ - $ 665 |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | December 31, 2015 December 31, 2014 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ 343,710 $ 298,400 $ 363,169 $ 370,769 8% Notes 120,393 132,028 - - Capital lease obligations 2,597 2,597 5,008 5,008 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Basic And Diluted Earnings Per Share | (In thousands, except per share amounts) 2015 2014 2013 Numerator: Net income attributable to Lumos Networks Corp. $ 10,026 $ 21,528 $ 17,773 Less: net income attributable to Lumos Networks Corp. allocable to participating securities (338) (540) (425) Numerator for basic and diluted earnings per common share 9,688 20,988 17,348 Denominator: Weighted average basic shares outstanding 22,825 22,328 21,887 Less: weighted average participating securities and nonvested performance-based restricted shares (791) (581) (579) Denominator for basic earnings per common share 22,034 21,747 21,308 Plus: potentially dilutive stock options 275 363 368 Denominator for diluted earnings per common share 22,309 22,110 21,676 Basic earnings per share $ 0.44 $ 0.97 $ 0.81 Diluted earnings per share $ 0.43 $ 0.95 $ 0.80 |
Stock Options, Restricted Sto31
Stock Options, Restricted Stock and Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments And Stock Warrant [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Risk-free interest rate 1.90% 1.96% 1.34% Expected volatility 55.93% 59.52% 44.19% Expected dividend yield 0.00% 3.54% 4.70% Expected term 6.3 years 6.1 years 6.6 years |
Summary Of Stock Options Activity | (In thousands, except per share amounts) Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Stock options outstanding at December 31, 2014 2,226 $ 12.49 Granted during the period 7 14.87 Exercised during the period (27) 9.97 Forfeited during the period (8) 14.23 Expired during the period (16) 5.70 Stock options outstanding at December 31, 2015 2,182 $ 12.57 5.6 years $ 1,575 Stock options exercisable at December 31, 2015 1,545 $ 12.40 4.9 years $ 1,175 Total stock options outstanding, vested and expected to vest at December 31, 2015 2,136 $ 12.58 $ 1,528 |
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 614 $ 13.26 Granted during the period 389 15.39 Vested during the period (117) 11.17 Forfeited during the period (25) 18.04 Restricted stock outstanding at December 31, 2015 861 $ 14.37 |
Summary of Fair Value Assumptions, Warrants | Risk-free interest rate 1.61 % Expected volatility 41.53 % Expected dividend yield 0 % Expected term 5 years |
Summary of Warrant Activity | (In thousands, except per share amounts) Shares Weighted Average Exercise Price per Share Stock warrants outstanding at December 31, 2014 - $ - Granted during the period 5,500 13.99 Exercised during the period - - Expired during the period - - Stock warrants outstanding at December 31, 2015 5,500 $ 13.99 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule Of Components Of Income Tax Expense (Benefit) | (In thousands) 2015 2014 2013 Current tax expense (benefit): Federal $ - $ - $ - State 379 (68) 516 Total current tax expense (benefit) 379 (68) 516 Deferred tax expense: Federal 6,319 11,908 10,102 State 448 2,569 1,401 Total deferred tax expense 6,767 14,477 11,503 Total income tax expense $ 7,146 $ 14,409 $ 12,019 |
Schedule Of Effective Income Tax Rate Reconciliation | (In thousands) 2015 2014 2013 Computed tax expense at federal statutory rate of 35% $ 6,065 $ 12,620 $ 10,470 Nondeductible compensation 122 27 307 Noncontrolling interests (61) (47) (50) Nondeductible public offering costs 112 - 285 State income taxes, net of federal income tax impact 538 1,626 1,246 Nondeductible interest 578 - - Other, net (208) 183 (239) Total income tax expense $ 7,146 $ 14,409 $ 12,019 |
Schedule Of Net Deferred Tax Assets And Liabilities | (In thousands) 2015 2014 Deferred income tax assets: Retirement benefits other than pension $ 2,167 $ 2,337 Pension and related plans 4,588 4,872 Net operating loss 16,509 9,488 Accrued expenses 6,848 4,588 Other 425 725 Total deferred income tax assets 30,537 22,010 Deferred income tax liabilities: Property and equipment (111,846) (97,460) Intangibles (7,884) (6,813) Total deferred income tax liabilities (119,730) (104,273) Net deferred income tax liability $ (89,193) $ (82,263) |
Reconciliation Of Change In Unrecognized Income Tax Benefits | (In thousands) 2015 2014 Balance at beginning of year $ 1,112 $ 1,125 Additions for tax positions related to the current year 297 344 Increases for tax positions related to prior years 109 11 Statute of limitations expiration (162) (368) Balance at end of year $ 1,356 $ 1,112 |
Pension Plans And Other Postr33
Pension Plans And Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Pension Plans And Other Postretirement Benefits [Abstract] | |
Schedule Of Defined Benefit Plan Disclosures | Defined Benefit Pension Plan Other Postretirement Benefit Plans (In thousands) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Change in benefit obligations: Benefit obligations, beginning of period $ 70,892 $ 57,209 $ 64,511 $ 844 $ 12,800 $ 12,874 Service cost - - - - 80 91 Interest cost 2,664 2,622 2,432 31 373 485 Actuarial loss (gain) (4,550) 13,547 (7,199) (83) 887 26 Benefits paid, net (3,281) (2,956) (2,756) (27) (671) (676) Curtailment gain - - - - (12,625) - Transfer - 470 221 - - - Benefit obligations, end of period 65,725 70,892 57,209 765 844 12,800 Change in plan assets: Fair value of plan assets, beginning of period 58,403 57,847 51,675 - - - Actual return on plan assets (1,166) 3,555 8,897 - - - Employer contributions - - - 27 671 676 Benefits paid (3,325) (2,999) (2,812) (27) (671) (676) Transfer - - 87 - - - Fair value of plan assets, end of period 53,912 58,403 57,847 - - - Funded status: Non-current asset - - (638) - - - Current liabilities - - - 72 72 671 Non-current liabilities 11,813 12,489 - 693 772 12,129 Funded status recognized in the consolidated balance sheets $ 11,813 $ 12,489 $ (638) $ 765 $ 844 $ 12,800 Amounts recognized in accumulated other comprehensive loss: Net actuarial (loss) gain (17,899) (18,119) (3,711) 18 (65) (1,211) Income taxes 6,981 7,066 1,444 (7) 25 471 Net amount recognized in accumulated other comprehensive loss $ (10,918) $ (11,053) $ (2,267) $ 11 $ (40) $ (740) |
Schedule Of Net Periodic (Benefit) Expense | Defined Benefit Pension Plan Other Postretirement Benefit Plans (In thousands) Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Components of net periodic (benefit) expense: Service cost $ - $ - $ - $ - $ 80 $ 91 Interest cost 2,664 2,622 2,432 31 373 485 Expected return on plan assets (4,111) (4,373) (3,901) - - - Amortization of loss 991 - 918 - 23 28 Net periodic (benefit) expense $ (456) $ (1,751) $ (551) $ 31 $ 476 $ 604 |
Schedule Of Assumptions Used | Defined Benefit Pension Plan Other Postretirement Benefit Plans December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Discount rate 4.20 % 3.85 % 4.20 % 3.85 % Rate of compensation increase N/A N/A N/A N/A The assumptions used in the measurements of the Company’s net income or expense for the consolidated statement s of income for the years ended December 31, 2015 , 2014 and 2013 were as follows: Defined Benefit Pension Plan Other Postretirement Benefit Plans Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Discount rate 3.85 % 4.70 % 3.85 % 3.85 % 4.70 % 3.85 % Expected return on plan assets 7.25 % 7.75 % 7.75 % N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Schedule Of Plan Asset Allocation | (Dollars in thousands) December 31, 2015 December 31, 2014 Asset Category Actual Allocation Fair Value Actual Allocation Fair Value Large Cap Value 23 % $ 12,193 23 % $ 13,120 Large Cap Blend 11 % 6,085 11 % 6,622 Mid Cap Blend 6 % 3,342 6 % 3,585 Small Cap Blend 4 % 2,080 4 % 2,511 Foreign Stock - Large Cap 7 % 3,817 7 % 3,969 Bond 34 % 18,239 34 % 19,806 Cash and cash equivalents 15 % 8,156 15 % 8,790 Total 100 % $ 53,912 100 % $ 58,403 The actual and target allocation for plan assets is broadly defined and measured as follows: December 31, 2015 December 31, 2014 Asset Category Actual Allocation Target Allocation Actual Allocation Target Allocation Equity securities 51 % 50 % 51 % 50 % Bond securities and cash equivalents 49 % 50 % 49 % 50 % Total 100 % 100 % 100 % 100 % |
Schedule Of Expected Future Pension Benefit Payments | (In thousands) Year Defined Benefit Pension Plan Other Postretirement Benefit Plans 2016 $ 3,048 $ 111 2017 3,104 57 2018 3,105 57 2019 3,194 56 2020 3,237 55 2021-2025 17,210 256 |
Organization (Details)
Organization (Details) $ / shares in Units, $ in Thousands | Sep. 14, 2015USD ($)shares | Mar. 17, 2015USD ($)shares | Nov. 20, 2013USD ($)$ / sharesshares | Oct. 31, 2011$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($) | Dec. 31, 2011$ / shares |
Organization [Abstract] | ||||||||
Stockholders' Equity, Reverse Stock Split | 1-for-2 | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 0.5 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Common stock sold by Quadrangle in secondary offering, shares | shares | 1,600,000 | 2,888,939 | ||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 591,898 | |||||||
Sale of Stock, Price Per Share | $ / shares | $ 20 | |||||||
Sale of Stock, Consideration Received on Transaction | $ | $ 0 | $ 0 | $ 0 | |||||
Other nonoperating costs | $ | $ 300 | $ 0 | $ 800 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (10,500,000) | $ (5,200,000) | |||
New Accounting Pronouncement, ASU 2015-17 Reclassification | 2,400,000 | 5,600,000 | |||
Book overdraft reclassified | $ 1,800,000 | ||||
Cash reimbursement received from government grant | 3,838,000 | 116,000 | $ 979,000 | ||
Amortization | 4,806,000 | 9,187,000 | 9,824,000 | ||
Goodwill, Gross | 133,700,000 | 133,700,000 | |||
Goodwill, Impaired, Accumulated Impairment Loss | 33,400,000 | 33,400,000 | |||
Goodwill, Impairment Loss | 0 | 0 | |||
Advertising Expense | $ 700,000 | 1,400,000 | 800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Number Of Highest ConsecutiveYears Of Compensation Subject To Certain Reductions | 5 years | ||||
Maximum Retirement Age Reached To Be Subject To Reductions | 65 years | ||||
Contribution vesting period | 2 years | ||||
Equity-based compensation | $ 5,881,000 | $ 4,340,000 | $ 6,778,000 | ||
Future Charges For Equity-Based Compensation Year 1 | 4,000,000 | ||||
Future Charges For Equity-Based Compensation Year 2 | 3,300,000 | ||||
Future Charges For Equity-Based Compensation Year 3 | 1,000,000 | ||||
Maximum [Member] | |||||
Future Charges For Equity-Based Compensation Year 4 | 100,000 | ||||
Future Charges For Equity Based Compensation Year 5 | $ 100,000 | ||||
Broadband Services Project Due 2015 [Member] | |||||
Investment in capital project from government grant | $ 16,100,000 | ||||
Broad Band Project Percentage Funded By Federal Government Grant | 50.00% | ||||
Broad Band Project Amount Funded By Federal Government Grant | $ 8,000,000 | ||||
Percentage Of Deposits On Grants To Pledged Accounts | 100.00% | ||||
Portion of grants deposited into pledged accounts | $ 8,000,000 | ||||
First Portion Match [Member] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 1.00% | ||||
Second Portion Match [Member] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 5.00% |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Allowance for doubtful accounts, beginning | $ 1,217 | $ 1,485 | $ 1,822 |
Charged to Expense | 461 | 604 | 249 |
Charged to Other Accounts | 96 | (19) | 346 |
Deductions | (539) | (853) | (932) |
Allowance for doubtful accounts, Balance at End of Period | $ 1,235 | 1,217 | 1,485 |
Valuation Allowances and Reserves, Balance | $ 1,217 | $ 1,485 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Telephony Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 25 |
Telephony Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Land, Buildings and Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 50 |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 24 |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 2 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Finite-Lived Intangibles Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 105,970 | $ 105,970 |
Accumulated Amortization | (94,892) | (90,086) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 103,108 | 103,108 |
Accumulated Amortization | (93,051) | (88,406) |
Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 2,862 | 2,862 |
Accumulated Amortization | $ (1,841) | $ (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 Accoun39
Summary of Significant Accounting Policies (Schedule Of Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 2,575 |
2,017 | 2,256 |
2,018 | 1,944 |
2,019 | 1,665 |
2,020 | 1,194 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | 2,412 |
2,017 | 2,093 |
2,018 | 1,781 |
2,019 | 1,513 |
2,020 | 1,146 |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,016 | 163 |
2,017 | 163 |
2,018 | 163 |
2,019 | 152 |
2,020 | $ 48 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Schedule Of Changes In Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Asset retirement obligations, beginning | $ 1,500 | $ 1,401 | |
Additional asset retirement obligations recorded, net of adjustments in estimates | 81 | (19) | |
Accretion of asset retirement obligations | 139 | 118 | $ 104 |
Asset retirement obligations, ending | $ 1,720 | $ 1,500 | $ 1,401 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Schedule Of Goodwill Attributed To Segments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Total goodwill | $ 100,297 | $ 100,297 |
Data [Member] | ||
Goodwill [Line Items] | ||
Total goodwill | 90,561 | |
R&SB [Member] | ||
Goodwill [Line Items] | ||
Total goodwill | $ 9,736 |
Cash Equivalents And Marketab42
Cash Equivalents And Marketable Securities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Total proceeds from the sale or maturity of available-for-sale marketable securities | $ 42,200,000 | $ 40,679,000 |
Net realized gains or losses on available-for-sale securities | 0 | |
Maximum [Member] | ||
Net unrealized holding gains on available-for-sale securities | $ 100,000 | $ 100,000 |
Cash Equivalents And Marketab43
Cash Equivalents And Marketable Securities (Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | $ 8,801 | $ 1,406 |
Total marketable securities, available-for-sale | 88,811 | 16,870 |
Total cash equivalents and marketable securities | 97,612 | 18,276 |
Money Market Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 6,746 | 49 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 1,055 | 1,357 |
Commercial Paper ST [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 1,000 | |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 8,684 | 998 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 353 | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 44,972 | 12,785 |
Debt Securities issued by U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | $ 35,155 | $ 2,734 |
Cash Equivalents And Marketab44
Cash Equivalents And Marketable Securities (Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash Equivalents And Marketable Securities [Abstract] | ||
Due in one year or less | $ 88,561 | |
Due after one year through two years | 250 | |
Total debt securities | $ 88,811 | $ 16,870 |
Disclosures About Segments of45
Disclosures About Segments of an Enterprise and Related Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AT&T [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage to total revenue | 8.00% | 10.00% | 8.00% |
Verizon [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage to total revenue | 8.00% | 8.00% | 10.00% |
Disclosures About Segments of46
Disclosures About Segments of an Enterprise and Related Information (Summarized Financial Information Of Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | $ 204,269 | $ 201,456 | $ 207,475 | |
Network access costs | 39,310 | 40,868 | 42,417 | |
Network operating and selling costs | 47,370 | 44,033 | 44,335 | |
Other general and administrative expenses | 32,817 | 20,749 | 32,414 | |
Adjusted EBITDA | [1] | 92,003 | 100,638 | 96,324 |
Capital expenditures | 115,675 | 84,100 | 68,334 | |
Data [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 114,311 | 106,642 | 104,112 | |
Network access costs | 16,728 | 15,990 | 15,801 | |
Network operating and selling costs | 31,477 | 24,833 | 22,616 | |
Other general and administrative expenses | 14,631 | 14,094 | 12,191 | |
Adjusted EBITDA | [1] | 51,475 | 51,725 | 53,504 |
Capital expenditures | 98,535 | 66,570 | 48,085 | |
R&SB [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 67,214 | 72,028 | 80,659 | |
Network access costs | 22,582 | 24,878 | 26,616 | |
Network operating and selling costs | 14,835 | 17,656 | 19,869 | |
Other general and administrative expenses | 8,242 | 9,594 | 9,515 | |
Adjusted EBITDA | [1] | 21,555 | 19,900 | 24,659 |
Capital expenditures | 9,545 | 7,089 | 6,693 | |
RLEC Access [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 22,744 | 22,786 | 22,704 | |
Network operating and selling costs | 1,058 | 1,544 | 1,850 | |
Other general and administrative expenses | 2,713 | 3,003 | 2,693 | |
Adjusted EBITDA | [1] | 18,973 | 18,239 | 18,161 |
Capital expenditures | 1,634 | |||
Corporate (Unallocated) [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other general and administrative expenses | 7,231 | (5,942) | 8,015 | |
Adjusted EBITDA | [1] | 10,774 | ||
Capital expenditures | $ 7,595 | $ 10,441 | $ 11,922 | |
[1] | The Company's CODMs evaluate performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization and accretion of asset retirement obligations, net income attributable to noncontrolling interests, other (income) expenses, net, equity-based compensation, amortization of actuarial losses, employee separation charges, restructuring charges and gain (loss) on interest rate swap derivatives. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company's reasons for using this non-GAAP financial measure. |
Disclosures About Segments of47
Disclosures About Segments of an Enterprise and Related Information (Reconciliation Of Net Income To Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ||||
Net Income Attributable to Lumos Networks Corp. | $ 10,026 | $ 21,528 | $ 17,773 | |
Net Income Attributable to Noncontrolling Interests | 157 | 120 | 121 | |
Net Income | 10,183 | 21,648 | 17,894 | |
Income Tax Expense | 7,146 | 14,409 | 12,019 | |
Interest expense | 19,918 | 15,575 | 14,191 | |
(Gain) loss on interest rate swap derivatives | (665) | (492) | 144 | |
Other (income) expenses, net | (114) | (664) | 1,587 | |
Operating Income | [1] | 36,468 | 50,476 | 45,835 |
Depreciation and amortization and accretion of asset retirement obligations | 47,666 | 45,330 | 42,424 | |
Amortization of actuarial losses | 1,350 | 248 | 1,237 | |
Equity-based compensation | 5,881 | 4,340 | 6,778 | |
Restructuring charges | 638 | 50 | ||
Employee separation charges | [1] | 244 | ||
Adjusted EBITDA | [2] | $ 92,003 | $ 100,638 | $ 96,324 |
[1] | Employee separation charges in 2014 include employee separation benefits which were provided for in the separation agreements of an executive officer who left the Company. These charges are included in selling, general and administrative expense on the consolidated statements of income | |||
[2] | The Company's CODMs evaluate performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization and accretion of asset retirement obligations, net income attributable to noncontrolling interests, other (income) expenses, net, equity-based compensation, amortization of actuarial losses, employee separation charges, restructuring charges and gain (loss) on interest rate swap derivatives. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company's reasons for using this non-GAAP financial measure. |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Aug. 06, 2015USD ($)shares | Jan. 02, 2015USD ($) | Apr. 30, 2013USD ($) | Dec. 31, 2015USD ($)itemshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | 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 | $ 47,960,000 | $ 5,250,000 | $ 308,876,000 | ||||
Line of credit, interest coverage ratio, minimum | item | 3.25 | ||||||
Line Of Credit Percentage Of Excess Cash Flow Equal To Excess Cash Flow Sweep Included In Mandatory Prepayments | 50.00% | ||||||
Line of credit, leverage ratio | item | 3.78 | ||||||
Line of credit, interest coverage ratio | item | 6.70 | ||||||
Fixed interest rate | 0.80% | 0.50% | |||||
Gain (loss) on interest rate swap derivatives | $ 665,000 | 492,000 | $ (144,000) | ||||
Payment of financing costs | $ 8,192,000 | 4,872,000 | |||||
Granted during the period, shares | shares | 5,500,000 | 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 | ||||||
Amortization of debt issuance costs | $ 2,700,000 | 1,500,000 | 1,300,000 | ||||
Write off of unamortized debt issuance costs | 890,000 | ||||||
Patronage refunds percentage, cash | 75.00% | ||||||
Patronage refunds percentage, equity | 25.00% | ||||||
Patronage credits | $ 1,200,000 | $ 700,000 | $ 1,300,000 | ||||
Line of credit, percentage of excess cash flow equal to excess cash flow sweep included in mandatory prepayments | 50.00% | ||||||
Line of credit, leverage ratio, minimum for mandatory prepayments to include excess cash flow sweep | item | 3.25 | ||||||
Future minimum lease payments | $ 2,600,000 | ||||||
Future minimum lease payments, 2016 | 2,400,000 | ||||||
Future minimum lease payments, 2017 | 100,000 | ||||||
Future minimum lease payments, 2018 | $ 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 | $ 2,700,000 | ||||||
Accumulated amortization | 1,400,000 | ||||||
Software Licenses [Member] | |||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||||
Capital leases | 5,900,000 | ||||||
Accumulated amortization | $ 3,000,000 | ||||||
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 | ||||||
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 | ||||||
Revolver [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 | ||||||
Line of Credit Facility, Amount Outstanding | $ 0 | ||||||
Amount outstanding, credit facility | $ 0 | ||||||
Basis spread on variable rate | 3.00% | ||||||
Term Loan A [Member] | |||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||||
Term of loan | 5 years | ||||||
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% | ||||||
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% | ||||||
Term Loan B [Member] | |||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||||
Term of loan | 6 years | ||||||
Basis spread on variable rate | 3.25% | ||||||
Term Loan B [Member] | Beginning On September 30, 2013 [Member] | |||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||||
Quarterly payments per annum | 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 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.96% | ||||||
Maturities of long-term debt, 2016 | $ 8,000,000 | ||||||
Maturities of long-term debt, 2017 | 13,000,000 | ||||||
Maturities of long-term debt, 2018 | 70,800,000 | ||||||
Maturities of long-term debt, 2019 | $ 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% | ||||||
Debt issuance costs | $ 900,000 | ||||||
Term Loan C [Member] | Beginning on June 30, 2015 | |||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||||
Quarterly payments per annum | 1.00% | ||||||
Unsecured Debt [Member] | |||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 12.55% | ||||||
Debt Instrument, Face Amount | 150,000,000 | ||||||
Payment of financing costs | 7,100,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||
Debt discount, amount offset from proceeds | 1,500,000 | ||||||
Debt issuance costs | $ 6,000,000 | ||||||
Maturities of long-term debt, thereafter | $ 150,000,000 | ||||||
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Less: current portion of long term debt | $ 10,400 | $ 10,227 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 456,300 | 357,950 |
Long-term Debt [Member] | ||
Credit facility | 348,415 | 368,375 |
8% Notes | 150,000 | |
Capital lease obligations | 2,597 | 5,008 |
Long-term debt | 501,012 | 373,383 |
Less: current portion of long term debt | 10,400 | 10,227 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 490,612 | 363,156 |
Unamortized Discount and Debt Issuance Costs [Member] | ||
Credit facility | 4,705 | 5,206 |
8% Notes | 29,607 | |
Long-term debt | 34,312 | 5,206 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | $ 34,312 | $ 5,206 |
Supplementary Disclosures Of 50
Supplementary Disclosures Of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | |||
Interest (net of amounts capitalized) | $ 12,467 | $ 13,206 | $ 13,278 |
Income taxes | 843 | (680) | 970 |
Additions to property, plant and equipment included in accounts payable and other accrued liabilities | 6,906 | 8,373 | 6,145 |
Obligations incurred under capital leases | 123 | 6,544 | |
Dividends declared on common stock not paid | 3,152 | 3,091 | |
Cash received from patronage credits | 800 | 900 | 700 |
Interest capitalized | $ 1,200 | $ 300 | $ 200 |
Fair Value Of Financial Instr51
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investments | $ 1,180 | $ 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 | $ 1,100 | $ 800 |
Fair Value Of Financial Instr52
Fair Value Of Financial Instruments (Summary Of Financial Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 8,801 | $ 1,406 |
Total marketable securities | 88,811 | 16,870 |
Total financial assets | 97,612 | 18,276 |
Total financial liabilities | 665 | |
Interest Rate Swap Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 665 | |
Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,746 | 49 |
Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,000 | |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 8,684 | 998 |
Debt Securities issued by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 35,155 | 2,734 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 353 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,055 | 1,357 |
Total marketable securities | 44,972 | 12,785 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,746 | 49 |
Total financial assets | 6,746 | 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 | 6,746 | 49 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 2,055 | 1,357 |
Total marketable securities | 88,811 | 16,870 |
Total financial assets | 90,866 | 18,227 |
Total financial liabilities | 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 | 665 | |
Level 2 [Member] | Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,000 | |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 8,684 | 998 |
Level 2 [Member] | Debt Securities issued by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 35,155 | 2,734 |
Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 353 | |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,055 | 1,357 |
Total marketable securities | $ 44,972 | $ 12,785 |
Fair Value Of Financial Instr53
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | $ 343,710 | $ 363,169 |
8% Notes | 120,393 | |
Capital lease obligations | 2,597 | 5,008 |
Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | 298,400 | 370,769 |
8% Notes | 132,028 | |
Capital lease obligations | $ 2,597 | $ 5,008 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per common share | 740,214 | 598,463 | 310,933 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per common share | 24,000 | 17,383 | 20,100 |
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 |
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Net income attributable to Lumos Networks Corp. | $ 10,026 | $ 21,528 | $ 17,773 |
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | (338) | (540) | (425) |
Numerator for basic and diluted earnings per common share | $ 9,688 | $ 20,988 | $ 17,348 |
Weighted average basic shares outstanding | 22,825 | 22,328 | 21,887 |
Less: weighted average participating securities and nonvested performance-based restricted shares | (791) | (581) | (579) |
Denominator for basic earnings per common share | 22,034 | 21,747 | 21,308 |
Plus: potentially dilutive stock options | 275 | 363 | 368 |
Denominator for diluted earnings per common share | 22,309 | 22,110 | 21,676 |
Basic earnings per share | $ 0.44 | $ 0.97 | $ 0.81 |
Diluted earnings per share | $ 0.43 | $ 0.95 | $ 0.80 |
Stock Options, Restricted Sto56
Stock Options, Restricted Stock and Stock Warrants (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 06, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options issued | 7,000 | |||
Number of shares issued during the period | 389,000 | |||
Vesting schedule | 5 years | |||
Recognized compensation expense on the vesting date | $ 1.8 | |||
Stock options to be granted, minimum exercise price as a percentage of grant date fair value | 100.00% | |||
Stock options grants, maximum life, in years | 10 years | |||
Weighted-average grant date fair value per share of stock options granted | $ 8.09 | $ 6.68 | $ 3.33 | |
Total intrinsic value of stock options exercised | $ 0.1 | $ 0.3 | $ 0.9 | |
Total fair value of options vested | 1.3 | 0.5 | 2.3 | |
Unrecognized compensation cost | $ 1.7 | |||
Unrecognized compensation cost recognition period, in years | 2 years 6 months | |||
Shares available for employee stock purchase plan | 100,000 | |||
Remaining shares available for employee stock purchase plan | 67,783 | |||
Shares price percentage | 85.00% | |||
Shares issued under the employee stock purchase plan | 5,787 | |||
Warrants issued, shares | 5,500,000 | 5,500,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 13.99 | |||
Proceeds from Issuance of Warrants | $ 23.5 | |||
GrantDateFairValueofWarrants | $ 4.44 | |||
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] | ||||
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. | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock plan vesting description | Restricted shares generally cliff vest on the third anniversary of the grant date for employees and generally cliff vest on the first anniversary of the grant date for non-employee directors. Some restricted stock awards vest on a graded vesting schedule over a five year period. | |||
Vesting schedule | 5 years | |||
Total fair value of options vested | $ 1.7 | 1.7 | 4.6 | |
Unrecognized compensation cost | $ 6 | |||
Unrecognized compensation cost recognition period, in years | 2 years | |||
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 | |||
Securities remained available for issuance | 1,182,061 | |||
Number of stock options issued | 6,680 | |||
Equity And Cash Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued during the period | 388,984 | |||
Unsecured Debt [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 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 | |||
Compensation expense associated with employee stock purchase plan | $ 0.1 | $ 0.1 | $ 0.1 |
Stock Options, Restricted Sto57
Stock Options, Restricted Stock and Stock Warrants (Schedule Of Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Plans [Abstract] | |||
Risk-free interest rate | 1.90% | 1.96% | 1.34% |
Expected volatility | 55.93% | 59.52% | 44.19% |
Expected dividend yield | 0.00% | 3.54% | 4.70% |
Expected term | 6 years 3 months 20 days | 6 years 1 month 6 days | 6 years 7 months 6 days |
Stock Options, Restricted Sto58
Stock Options, Restricted Stock and Stock Warrants (Summary Of Stock Options Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Stock Plans [Abstract] | |
Stock options outstanding at December 31, 2014, Shares | shares | 2,226 |
Stock options outstanding at December 31, 2014, Weighted-Average Exercise Price per Share | $ / shares | $ 12.49 |
Granted during the period, Shares | shares | 7 |
Granted during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 14.87 |
Exercised during the period, Shares | shares | (27) |
Exercised during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 9.97 |
Forfeited during the period, Shares | shares | (8) |
Forfeited during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 14.23 |
Expired during the period, Shares | shares | (16) |
Expired during the period, Weighted Average Exercise Price per Share | $ / shares | $ 5.70 |
Stock options outstanding at December 31, 2015, Shares | shares | 2,182 |
Stock options outstanding at December 31, 2015, Weighted-Average Exercise Price per Share | $ / shares | $ 12.57 |
Stock options outstanding at December 31, 2015, Weighted-Average Remaining Contractual Term, in years | 5 years 7 months 9 days |
Stock options outstanding at December 31, 2015, Aggregate Intrinsic Value | $ | $ 1,575 |
Stock options exercisable at December 31, 2015, Shares | shares | 1,545 |
Stock options exercisable at December 31, 2015, Weighted-Average Exercise Price per Share | $ / shares | $ 12.40 |
Stock options exercisable at December 31, 2015, Weighted-Average Remaining Contractual Term, in years | 4 years 10 months 29 days |
Stock options exercisable at December 31, 2015, Aggregate Intrinsic Value | $ | $ 1,175 |
Total stock options outstanding, vested and expected to vest at December 31, 2015, Shares | shares | 2,136 |
Total stock options outstanding, vested and expected to vest at December 31, 2015, Weighted-Average Exercise Price per Share | $ / shares | $ 12.58 |
Total stock options outstanding, vested and expected to vest at December 31, 2015, Aggregate Intrinsic Value | $ | $ 1,528 |
Stock Options, Restricted Sto59
Stock Options, Restricted Stock and Stock Warrants (Summary Of Restricted Stock Awards Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Stock Plans [Abstract] | |
Restricted stock outstanding at December 31, 2014, Shares | shares | 614 |
Stock outstanding at December 31, 2014, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 13.26 |
Granted during the period, Shares | shares | 389 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 15.39 |
Vested during the period, Shares | shares | (117) |
Vested during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 11.17 |
Forfeited during the period, Shares | shares | (25) |
Forfeited during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 18.04 |
Restricted stock outstanding at December 31, 2015, Shares | shares | 861 |
Stock outstanding at December 31, 2015, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 14.37 |
Stock Options, Restricted Sto60
Stock Options, Restricted Stock and Stock Warrants (Grant Date Fair Value of Warrants estimated using Black-Scholes Option Pricing Model and Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.90% | 1.96% | 1.34% |
Expected volatility | 55.93% | 59.52% | 44.19% |
Expected dividend yield | 0.00% | 3.54% | 4.70% |
Expected term | 6 years 3 months 20 days | 6 years 1 month 6 days | 6 years 7 months 6 days |
Stock Warrants [Member] | |||
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 Sto61
Stock Options, Restricted Stock and Stock Warrants (Summary of Stock Warrant Activity) (Details) - $ / shares | Aug. 06, 2015 | Dec. 31, 2015 |
Granted during the period, shares | 5,500,000 | 5,500,000 |
Granted during the period, weighted average exercise price | $ 13.99 | |
Stock Warrants [Member] | ||
Stock warrants outstanding at December 31, 2015, Shares | 5,500,000 | |
Stock warrants outstanding at December 31, 2015, weighted average exercise price | $ 13.99 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | |||
Adjustments to excess tax benefit from stock-based compensation | $ 165 | $ (1,488) | $ 1,060 |
Tax expense (benefit) for adjustments to pension and postretirement benefit plans in other comprehensive income | 400 | $ (5,400) | $ 5,500 |
Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating losses | $ 48,000 | ||
Minimum [Member] | |||
Income Tax [Line Items] | |||
NOL expiration range | 2,022 | ||
Maximum [Member] | |||
Income Tax [Line Items] | |||
NOL expiration range | 2,035 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Federal | |||
State | $ 379 | $ (68) | $ 516 |
Total current tax expense (benefit) | 379 | (68) | 516 |
Deferred tax expense, Federal | 6,319 | 11,908 | 10,102 |
Deferred tax expense, State | 448 | 2,569 | 1,401 |
Total deferred tax expense | 6,767 | 14,477 | 11,503 |
Total income tax expense | $ 7,146 | $ 14,409 | $ 12,019 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Computed tax expense at statutory federal rate of 35% | $ 6,065 | $ 12,620 | $ 10,470 |
Nondeductible compensation | 122 | 27 | 307 |
Noncontrolling interests | (61) | (47) | (50) |
Nondeductible public offering costs | 112 | 285 | |
State income taxes, net of federal income tax impact | 538 | 1,626 | 1,246 |
Nondeductible AHYDO Interest | 578 | ||
Other, net | (208) | 183 | (239) |
Total income tax expense | $ 7,146 | $ 14,409 | $ 12,019 |
Statutory federal rate | 35.00% | 35.00% | 35.00% |
Income Taxes (Schedule Of Net D
Income Taxes (Schedule Of Net Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Retirement benefits other than pension | $ 2,167 | $ 2,337 |
Pension and related plans | 4,588 | 4,872 |
Net operating loss | 16,509 | 9,488 |
Accrued expenses | 6,848 | 4,588 |
Other | 425 | 725 |
Total deferred income tax assets | 30,537 | 22,010 |
Property and equipment | (111,846) | (97,460) |
Intangibles | (7,884) | (6,813) |
Total deferred income tax liabilities | (119,730) | (104,273) |
Net non-current deferred income tax liability | (89,193) | (82,263) |
Net deferred income tax liability | $ (89,193) | $ (82,263) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Change In Unrecognized Income Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Balance at beginning of year | $ 1,112 | $ 1,125 |
Additions for tax positions related to the current year | 297 | 344 |
Increases for tax positions related to prior years | 109 | 11 |
Statute of limitations expiration | (162) | (368) |
Balance at end of year | $ 1,356 | $ 1,112 |
Pension Plans And Other Postr67
Pension Plans And Other Postretirement Benefits (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total expense (income) recognized for all pension and OPEBs plans | $ (314,000) | $ (1,628,000) | $ (330,000) | |
Further benefits that will be accrued by plan participants | 0 | |||
Curtailment gain recognized in net income | 10,774,000 | |||
Expense recognized from previously unrecognized loss | (824,000) | (151,000) | (756,000) | |
Income tax from unrecognized actuarial loss | 600,000 | |||
Company matching contribution for a defined contribution plan | 1,100,000 | 1,000,000 | 900,000 | |
Qualified And Non-Qualified Pension And OPEBs Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total expense (income) recognized for all pension and OPEBs plans | (1,300,000) | $ (1,100,000) | (700,000) | |
Expense recognized from previously unrecognized loss | $ 1,000,000 | 1,000,000 | ||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.20% | 3.85% | ||
Expected net periodic (benefit) expense | $ 200,000 | |||
Benefit obligation | 65,725,000 | $ 70,892,000 | 57,209,000 | $ 64,511,000 |
Income tax from unrecognized actuarial loss | (6,981,000) | $ (7,066,000) | (1,444,000) | |
Expected future benefit payments, 2016 | 3,048,000 | |||
Expected future benefit payments, 2017 | 3,104,000 | |||
Expected future benefit payments, 2018 | 3,105,000 | |||
Expected future benefit payments, 2019 | 3,194,000 | |||
Expected future benefit payments, 2020 | 3,237,000 | |||
Expected future benefit payments, 2021-2025 | $ 17,210,000 | |||
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.20% | 3.85% | ||
Benefit obligation | $ 765,000 | $ 844,000 | 12,800,000 | $ 12,874,000 |
Income tax from unrecognized actuarial loss | 7,000 | (25,000) | (471,000) | |
Expected future benefit payments, 2016 | 111,000 | |||
Expected future benefit payments, 2017 | 57,000 | |||
Expected future benefit payments, 2018 | 57,000 | |||
Expected future benefit payments, 2019 | 56,000 | |||
Expected future benefit payments, 2020 | 55,000 | |||
Expected future benefit payments, 2021-2025 | 256,000 | |||
Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Further benefits that will be accrued by plan participants | 0 | |||
Benefit obligation | 4,600,000 | 4,900,000 | 4,300,000 | |
Expense recognized from previously unrecognized loss | 400,000 | 200,000 | 300,000 | |
Amount of unrecognized actuarial losses recorded in AOCI | 1,000,000 | 1,400,000 | ||
Income tax from unrecognized actuarial loss | 900,000 | |||
Expected future benefit payments, 2016 | 200,000 | |||
Expected future benefit payments, 2017 | 200,000 | |||
Expected future benefit payments, 2018 | 200,000 | |||
Expected future benefit payments, 2019 | 200,000 | |||
Expected future benefit payments, 2020 | 200,000 | |||
Expected future benefit payments, 2021-2025 | 1,400,000 | |||
Other Nonqualified Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation | 0 | $ 400,000 | ||
Maximum [Member] | Qualified And Non-Qualified Pension And OPEBs Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expense recognized from previously unrecognized loss | $ 100,000 | |||
Maximum [Member] | Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected net periodic (benefit) expense | $ 100,000 |
Pension Plans And Other Postr68
Pension Plans And Other Postretirement Benefits (Schedule Of Defined Benefit Plan Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | $ 58,403 | ||
Fair value of plan assets, end of period | 53,912 | $ 58,403 | |
Funded status: | |||
Non-current liabilities | 17,029 | 18,257 | |
Amounts recognized in accumulated other comprehensive loss: | |||
Income taxes | (600) | ||
Defined Benefit Pension Plan [Member] | |||
Change in benefit obligations: | |||
Benefit obligations, beginning of period | 70,892 | 57,209 | $ 64,511 |
Interest cost | 2,664 | 2,622 | 2,432 |
Actuarial loss (gain) | (4,550) | 13,547 | (7,199) |
Benefits paid, net | $ (3,281) | $ (2,956) | $ (2,756) |
Curtailment gain | |||
Transfer | $ 470 | $ 221 | |
Benefit obligations, end of period | $ 65,725 | 70,892 | 57,209 |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | 58,403 | 57,847 | 51,675 |
Actual return on plan assets | (1,166) | 3,555 | 8,897 |
Benefits paid | (3,325) | (2,999) | (2,812) |
Transfer | 87 | ||
Fair value of plan assets, end of period | $ 53,912 | $ 58,403 | 57,847 |
Funded status: | |||
Non-current asset | $ (638) | ||
Current liabilities | |||
Non-current liabilities | $ 11,813 | $ 12,489 | |
Funded status recognized in the consolidated balance sheets | 11,813 | 12,489 | $ (638) |
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | (17,899) | (18,119) | (3,711) |
Income taxes | 6,981 | 7,066 | 1,444 |
Net amount recognized in accumulated other comprehensive loss | (10,918) | (11,053) | (2,267) |
Other Postretirement Benefit Plans [Member] | |||
Change in benefit obligations: | |||
Benefit obligations, beginning of period | 844 | 12,800 | 12,874 |
Service cost | 80 | 91 | |
Interest cost | 31 | 373 | 485 |
Actuarial loss (gain) | (83) | 887 | 26 |
Benefits paid, net | $ (27) | (671) | $ (676) |
Curtailment gain | $ (12,625) | ||
Transfer | |||
Benefit obligations, end of period | $ 765 | $ 844 | $ 12,800 |
Change in plan assets: | |||
Employer contributions | 27 | 671 | 676 |
Benefits paid | (27) | (671) | (676) |
Funded status: | |||
Current liabilities | 72 | 72 | 671 |
Non-current liabilities | 693 | 772 | 12,129 |
Funded status recognized in the consolidated balance sheets | 765 | 844 | 12,800 |
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 18 | (65) | (1,211) |
Income taxes | (7) | 25 | 471 |
Net amount recognized in accumulated other comprehensive loss | $ 11 | $ (40) | $ (740) |
Pension Plans And Other Postr69
Pension Plans And Other Postretirement Benefits (Schedule Of Net Periodic (Benefit) Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 2,664 | $ 2,622 | $ 2,432 |
Expected return on plan assets | (4,111) | (4,373) | (3,901) |
Amortization of loss | 991 | 918 | |
Net periodic benefit income | (456) | (1,751) | (551) |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 80 | 91 | |
Interest cost | 31 | 373 | 485 |
Amortization of loss | 23 | 28 | |
Net periodic benefit income | $ 31 | $ 476 | $ 604 |
Pension Plans And Other Postr70
Pension Plans And Other Postretirement Benefits (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.85% | |
Discount rate | 3.85% | 4.70% | 3.85% |
Expected return on plan assets | 7.25% | 7.75% | 7.75% |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.85% | |
Discount rate | 3.85% | 4.70% | 3.85% |
Pension Plans And Other Postr71
Pension Plans And Other Postretirement Benefits (Schedule Of Plan Asset Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Fair Value | $ 53,912 | $ 58,403 |
Target Allocation | 100.00% | 100.00% |
Large Cap Value [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 23.00% | 23.00% |
Fair Value | $ 12,193 | $ 13,120 |
Large Cap Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 11.00% | 11.00% |
Fair Value | $ 6,085 | $ 6,622 |
Mid Cap Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 6.00% | 6.00% |
Fair Value | $ 3,342 | $ 3,585 |
Small Cap Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 4.00% | 4.00% |
Fair Value | $ 2,080 | $ 2,511 |
Foreign Stock - Large Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 7.00% | 7.00% |
Fair Value | $ 3,817 | $ 3,969 |
Bond [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 34.00% | 34.00% |
Fair Value | $ 18,239 | $ 19,806 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 15.00% | 15.00% |
Fair Value | $ 8,156 | $ 8,790 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 51.00% | 51.00% |
Target Allocation | 50.00% | 50.00% |
Bond Securities And Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 49.00% | 49.00% |
Target Allocation | 50.00% | 50.00% |
Pension Plans And Other Postr72
Pension Plans And Other Postretirement Benefits (Schedule Of Expected Future Pension Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,015 | $ 3,048 |
2,016 | 3,104 |
2,017 | 3,105 |
2,018 | 3,194 |
2,019 | 3,237 |
2020-2024 | 17,210 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,015 | 111 |
2,016 | 57 |
2,017 | 57 |
2,018 | 56 |
2,019 | 55 |
2020-2024 | $ 256 |
Related Party Transactions (Det
Related Party Transactions (Details) - ValleyNet[Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Due from Related Party | $ 400 | $ 400 | |
Related Party Transaction, Other Revenues from Transactions with Related Party | 4,700 | 5,000 | $ 4,700 |
Related Party Transaction, Expenses from Transactions with Related Party | $ 1,200 | $ 900 | $ 900 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | |||
Rental expense for operating leases | $ 2.7 | $ 2.4 | $ 2.9 |
Amount committed under lease agreements, 2016 | 1.5 | ||
Amount committed under lease agreements, 2017 | 1.3 | ||
Amount committed under lease agreements, 2018 | 1.2 | ||
Amount committed under lease agreements, 2019 | 0.9 | ||
Amount committed under lease agreements, 2020 | 0.3 | ||
Amount committed under lease agreements, thereafter | 0.8 | ||
Purchase commitments relating to capital expenditures | $ 6.9 |