Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 15, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 | 23,925,910 | ||
Entity Public Float | $ 275,916,131 | ||
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, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 33,575 | $ 13,267 |
Marketable securities | 38,081 | 88,811 |
Accounts receivable, net of allowance of $942 ($1,235 in 2015) | 22,609 | 20,796 |
Other receivables | 753 | 852 |
Income tax receivable | 459 | 568 |
Prepaid expenses and other | 5,028 | 7,215 |
Total Current Assets | 100,505 | 131,509 |
Securities and Investments | 1,479 | 1,180 |
Property, Plant and Equipment | ||
Land and buildings | 24,867 | 23,019 |
Network plant and equipment | 733,154 | 624,360 |
Furniture, fixtures and other equipment | 52,030 | 48,266 |
Total in service | 810,051 | 695,645 |
Under construction | 22,678 | 51,663 |
Property, plant and equipment, gross | 832,729 | 747,308 |
Less accumulated depreciation and amortization | 296,441 | 248,364 |
Total Property, Plant and Equipment, net | 536,288 | 498,944 |
Other Assets | ||
Goodwill | 100,297 | 100,297 |
Other intangibles, less accumulated amortization of $97,467 ($94,892 in 2015) | 8,503 | 11,078 |
Deferred charges and other assets | 6,300 | 2,364 |
Total Other Assets | 115,100 | 113,739 |
Total Assets | 753,372 | 745,372 |
Current Liabilities | ||
Current portion of long-term debt | 13,530 | 10,400 |
Accounts payable | 8,607 | 14,182 |
Advance billings and customer deposits | 14,140 | 13,849 |
Accrued compensation | 1,491 | 1,191 |
Accrued operating taxes | 4,518 | 3,907 |
Other accrued liabilities | 5,000 | 4,974 |
Total Current Liabilities | 47,286 | 48,503 |
Long-term Liabilities | ||
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 454,885 | 456,300 |
Retirement benefits | 16,029 | 17,029 |
Deferred income taxes, net | 96,988 | 89,193 |
Other long-term liabilities | 2,124 | 1,923 |
Income tax payable | 93 | |
Total Long-term Liabilities | 570,026 | 564,538 |
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; 23,607 shares issued and 23,605 shares outstanding (23,005 shares issued and 22,992 shares outstanding in 2015) | 236 | 230 |
Additional paid-in capital | 175,008 | 171,746 |
Treasury stock, 2 shares at cost (13 shares in 2015) | (2) | (103) |
Accumulated deficit | (29,064) | (28,541) |
Accumulated other comprehensive loss, net of tax | (11,004) | (11,940) |
Total Lumos Networks Corp. Stockholders' Equity | 135,174 | 131,392 |
Noncontrolling Interests | 886 | 939 |
Total Equity | 136,060 | 132,331 |
Total Liabilities and Equity | $ 753,372 | $ 745,372 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance | $ 942 | $ 1,235 |
Other intangibles, accumulated amortization | $ 97,467 | $ 94,892 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 23,607,000 | 23,005,000 |
Common stock, shares outstanding | 23,605,000 | 22,992,000 |
Treasury stock, shares | 2,000 | 13,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Operations [Abstract] | |||
Operating Revenues | $ 206,899 | $ 204,269 | $ 201,456 |
Operating Expenses | |||
Cost of Revenue, exclusive of depreciation and amortization shown separately below | 38,973 | 42,205 | 42,978 |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 84,978 | 77,292 | 62,672 |
Depreciation and amortization | 51,279 | 47,527 | 45,212 |
Accretion of asset retirement obligations | 115 | 139 | 118 |
Restructuring charges | 1,940 | 638 | |
Total Operating Expenses | 177,285 | 167,801 | 150,980 |
Operating Income | 29,614 | 36,468 | 50,476 |
Other Income (Expenses) | |||
Interest expense | (28,385) | (19,918) | (15,575) |
Gain on interest rate swap derivatives | 665 | 492 | |
Other income, net | 389 | 114 | 664 |
Total Other Expenses, net | (27,996) | (19,139) | (14,419) |
Income Before Income Taxes | 1,618 | 17,329 | 36,057 |
Income Tax Expense | 1,962 | 7,146 | 14,409 |
Net (Loss) Income | (344) | 10,183 | 21,648 |
Net Income Attributable to Noncontrolling Interests | (179) | (157) | (120) |
Net (Loss) Income Attributable to Lumos Networks Corp. | $ (523) | $ 10,026 | $ 21,528 |
Basic and Diluted (Loss) Earnings per Common Share Attributable to Lumos Networks Corp. Stockholders | |||
Basic (loss) earnings per share | $ (0.02) | $ 0.44 | $ 0.97 |
Diluted (loss) earnings per share | $ (0.02) | $ 0.43 | 0.95 |
Cash Dividends Declared per Share - Common Stock | $ 0.56 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net (Loss) Income | $ (344) | $ 10,183 | $ 21,648 |
Other Comprehensive Income (Loss): | |||
Adjustment to unrecognized loss due to curtailment of postretirement medical plan benefits | 1,188 | ||
Net unrecognized gain (loss) from defined benefit plans | 155 | (435) | (15,215) |
Reclassification adjustment for amortization of unrealized loss from defined benefit plans included in net (loss) income (see Note 2) | 1,350 | 1,350 | 248 |
Unrealized gain (loss) on available-for-sale marketable securities | 26 | (19) | (23) |
Income Taxes | (595) | (350) | 5,389 |
Other Comprehensive Income (Loss), Net of Tax | 936 | 546 | (8,413) |
Total Comprehensive Income | 592 | 10,729 | 13,235 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | (179) | (157) | (120) |
Comprehensive Income Attributable to Lumos Networks Corp. | $ 413 | $ 10,572 | $ 13,115 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net (Loss) Income | $ (344) | $ 10,183 | $ 21,648 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation | 48,704 | 42,721 | 36,025 |
Amortization | 2,575 | 4,806 | 9,187 |
Accretion of asset retirement obligations | 115 | 139 | 118 |
Deferred income taxes | 1,551 | 6,767 | 14,477 |
Gain on interest rate swap derivatives | (665) | (492) | |
Equity-based compensation expense | 9,818 | 5,881 | 4,340 |
Amortization of debt discount and issuance costs | 4,500 | 2,688 | 1,461 |
Curtailment gain | (10,774) | ||
Retirement benefits, net of cash distributions | 505 | (314) | (1,628) |
Excess tax benefits from share-based compensation | (165) | ||
Other | 1,566 | 789 | 221 |
Changes in assets and liabilities from operations: | |||
(Increase) decrease in accounts receivable | (2,253) | 1,938 | 845 |
Increase in other assets | (2,593) | (4,889) | (124) |
Changes in income taxes | 16 | (433) | 615 |
(Decrease) increase in accounts payable | (80) | (923) | 3,112 |
Increase (decrease) in other current liabilities | 1,296 | (1,778) | 778 |
Net Cash Provided by Operating Activities | 65,376 | 66,745 | 79,809 |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (84,027) | (115,675) | (84,100) |
Broadband network expansion funded by stimulus grant | (2,578) | (878) | |
Purchases of available-for-sale marketable securities | (74,393) | (114,478) | (19,516) |
Proceeds from sale or maturity of available-for-sale marketable securities | 125,041 | 42,200 | 40,679 |
Change in restricted cash | 4,208 | 116 | |
Cash reimbursement received from broadband stimulus grant | 3,838 | 116 | |
Other | 150 | ||
Net Cash Used in Investing Activities | (33,379) | (182,485) | (63,433) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of senior secured term loan | 28,000 | ||
Proceeds from issuance of unsecured notes, net of debt discount | 148,500 | ||
Payment of financing costs | (8,192) | ||
Principal payments on senior secured term loans | (8,030) | (47,960) | (5,250) |
Capital distributions to noncontrolling interests | (232) | ||
Cash dividends paid on common stock | (3,152) | (12,456) | |
Principal payments under capital lease obligations | (2,683) | (2,471) | (1,468) |
Proceeds from stock option exercises and employee stock purchase plan | 1,670 | 356 | 2,892 |
Excess tax benefits from share-based compensation | 165 | ||
Repurchases of common stock to settle tax withholding obligations on employee stock awards | (2,414) | (371) | (66) |
Other | (8) | (2) | |
Net Cash (Used in) Provided by Financing Activities | (11,689) | 114,867 | (16,350) |
Increase (decrease) in cash and cash equivalents | 20,308 | (873) | 26 |
Cash and Cash Equivalents: | |||
Beginning of Year | 13,267 | 14,140 | 14,114 |
End of Year | 33,575 | 13,267 | 14,140 |
Data [Member] | |||
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (73,328) | (98,535) | (66,570) |
R&SB [Member] | |||
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (10,050) | (9,545) | (7,089) |
Corporate (Unallocated) [Member] | |||
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | $ (649) | $ (7,595) | $ (10,441) |
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, 2013 | $ 222 | $ (404) | $ 138,166 | $ (47,578) | $ (4,073) | $ 86,333 | $ 673 | $ 87,006 |
Balance, shares at Dec. 31, 2013 | 22,158 | 49 | ||||||
Net (Loss) Income Attributable to Lumos Networks Corp. | 21,528 | 21,528 | 21,528 | |||||
Other comprehensive income (loss), 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 and settlement of tax withholding obligations on vesting of shares) | $ 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 and settlement of tax withholding obligations on vesting of shares), 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 | ||||||
Net (Loss) Income Attributable to Lumos Networks Corp. | 10,026 | 10,026 | 10,026 | |||||
Other comprehensive income (loss), 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 and settlement of tax withholding obligations on vesting of shares) | $ 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 and settlement of tax withholding obligations on vesting of shares), 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 | |||||||
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 | |||||
Net (Loss) Income Attributable to Lumos Networks Corp. | (523) | (523) | $ (523) | |||||
Other comprehensive income (loss), net of tax | 936 | 936 | 936 | |||||
Equity-based compensation expense | 8,671 | 8,671 | 8,671 | |||||
Adjustments to excess tax benefit from stock-based compensation | (172) | (172) | (172) | |||||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits and settlement of tax withholding obligations on vesting of shares) | $ 6 | $ (383) | (841) | (1,218) | (1,218) | |||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits and settlement of tax withholding obligations on vesting of shares), shares | 545 | 55 | ||||||
Adjustment for deferred taxes upon issuance of 8% Notes | (5,486) | (5,486) | (5,486) | |||||
Stock option exercises | $ 484 | 1,090 | 1,574 | $ 1,574 | ||||
Stock option exercises, shares | 57 | (66) | 123 | |||||
Capital distributions to noncontrolling interests | (232) | $ (232) | ||||||
Net income attributable to noncontrolling interests | 179 | 179 | ||||||
Balance at Dec. 31, 2016 | $ 236 | $ (2) | $ 175,008 | $ (29,064) | $ (11,004) | $ 135,174 | $ 886 | $ 136,060 |
Balance, shares at Dec. 31, 2016 | 23,607 | 2 | 23,607 |
Consolidated Statements Of Equ8
Consolidated Statements Of Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2014$ / shares | |
Consolidated Statements Of Equity [Abstract] | |
Cash dividends declared, per share | $ 0.56 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization [Abstract] | |
Organization | Note 1. Organization Lumos Networks Corp. (“Lumos Networks” or the “Company”) is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region with a network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company serves carrier, business and residential customers over its fiber network offering data, voice and IP services. The Company’s principal products and services include Multiprotocol Label Switching (“MPLS”) based Ethernet, Metro Ethernet (“Metro E”), Fiber to the Cell (“FTTC”) wireless backhaul and fiber transport services, wavelength transport services, IP services and other voice services. On March 17, 2015, in a secondary offering of the Company’s common stock, Quadrangle Capital Partners LP. (“Quadrangle”) sold 1,600,000 shares on an underwritten basis. On September 14, 2015, Quadrangle distributed its remaining 591,898 shares to its investors (the “Distribution”). As a result, the shareholder agreement between Quadrangle and the Company expired as of the effective date of the Distribution. 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 million are included in other expenses in the consolidated statements of operations for the year ended December 31, 2015 . The Company did not incur any direct costs related to offerings during the year s ended December 31, 201 6 or 2014 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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. Certain presentation changes have been made within the operating expense line items on the consolidated statements of operations and prior period amounts have been reclassified in order to conform to the current year presentation. Specifically, the previously reported line item “network access costs” has been removed and the new line item “cost of revenue” has been added along with the necessary operating expense reclassifications. These reclassifications were not the result of an error and have no effect on previously reported operating income, net income or earnings per share. 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 benefit obligations; stock warrants; and reserve for uncertain income tax positions. Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or products are delivered, installed and functional, as applicable, the price to the buyer is fixed or determinable and collectability is reasonably assured. Certain services of the Company require payment in advance of service performance. In such cases, the Company records a service liability at the time of billing and subsequently recognizes revenue ratably over the service period. The Company bills customers certain transactional taxes on service revenues. These transactional taxes are not included in reported revenues as they are recognized as liabilities at the time customers are billed. The Company earns revenue by providing services through access to and usage of its networks. Local service revenues are recognized as services are provided. Carrier data revenues are earned by providing switched access and other switched and dedicated services to other carriers. 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, 2016 and 2015 consist of debt securities not classified as cash equivalents. The Company classifies such debt securities as either held-to-maturity, when the Company has the positive intent and ability to hold the securities to maturity, or available-for-sale. Held-to-maturity debt securities are carried at amortized cost, adjusted for the amortization of premiums or accretion of discounts. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of December 31, 2016 and 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 advance payment for certain services. 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 operations. The following table shows the activity in the allowance for doubtful accounts and customer credits for the years ended December 31, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Allowance for doubtful accounts and customer credits, beginning $ 1,235 $ 1,217 $ 1,485 Additions: Charged to expense 236 461 604 (Deducted from) charged to other accounts (97) 96 (19) Deductions (432) (539) (853) Allowance for doubtful accounts and customer credits, ending $ 942 $ 1,235 $ 1,217 Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) Property, plant and equipment, finite-lived intangible assets and long-term deferred charges are recorded at cost and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be evaluated pursuant to the subsequent measurement guidance described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35. Impairment is determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. The Company believes that no impairment indicators exist as of December 31, 2016 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, 2016 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 50 years Furniture, fixtures and other equipment 4 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 an indefeasible right of use agreement (“IRU”), is included with depreciation expense. Intangibles with a finite life are classified as other intangibles on the consolidated balance sheets. At December 31, 2016 and 2015 , other intangibles were comprised of the following: 2016 2015 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (95,463) $ 103,108 $ (93,051) Trademarks and franchise rights 10 to 15 yrs 2,862 (2,004) 2,862 (1,841) Total $ 105,970 $ (97,467) $ 105,970 $ (94,892) Included in the above amounts are indefinite-lived intangible assets of $0.3 million, which are not subject to amortization. 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, 2016 or 2015 . Amortization expense for the years ended December 31, 2016 , 2015 and 2014 was $ 2.6 million, $ 4.8 million and $ 9.2 million, respectively. Amortization expense for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total 2017 $ 2,093 $ 163 $ 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 2021 1,112 - 1,112 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, 2016 , goodwill was attributed to the Company’s segments as follows: (In thousands) December 31, 2016 Data $ 90,561 R&SB 9,736 RLEC Access - Total goodwill $ 100,297 As of October 1, 2016, 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, 2016 and 2015 . There was no activity in the consolidated goodwill accounts for the years ended 2016 and 2015 . 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, 2016 and 2015 : (In thousands) 2016 2015 Asset retirement obligations, beginning $ 1,720 $ 1,500 Additional asset retirement obligations recorded, net of adjustments in estimates - 81 Accretion of asset retirement obligations 115 139 Asset retirement obligations, ending $ 1,835 $ 1,720 Advertising Costs The Company expenses advertising costs and marketing production costs as incurred (included within selling, general and administrative expenses in the consolidated statements of operations). Advertising expense for the years ended December 31, 2016 , 2015 and 2014 was $0.9 million, $ 0.7 million and $ 1.4 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. 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. Vested pension benefits were based on years of service and an average of the five highest consecutive years of compensation and are subject to certain reductions if the employee retires and elects to receive the benefit prior to reaching age 65 . 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. No contributions were made during the year ended December 31, 2016 and the Company does not expect to make a contribution in 2017. The Company also provides certain postretirement life insurance benefits for retired employees through the qualified nonpension postretirement welfare benefit plan (the “Other Postretirement Benefit Plan”), which is contributory. 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 postretirement benefits other than pensions by accruing the cost of such benefits over the service periods 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 (income). 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 FASB Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes (“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 in 2012 and 2013 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 was determined using a Monte Carlo model to reflect the probability of achieving the market condition. 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), annual employee bonuses paid in the form of immediately vested shares and the Company’s 401(k) matching contributions, was $9.6 million, $5.9 million and $4.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, which amounts are included in selling, general and administrative expenses in the consolidated statements of operations. Future charges for equity-based compensation related to instruments outstanding at December 31, 2016 for the years 2017 through 2019 are estimated to be $ 3.5 million, $ 1.7 million, $ 0.4 million and less than $0.1 million for each of 2020 and 2021, 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 - Un adjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. · Level 3 - Unobservable inputs for the asset or liability. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date, 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Gross versus Net) (“ASU 2016-08”), which clarifies implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which addresses narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in ASU 2016-12 provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. Finally, in December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with customers, which makes minor corrections or improvements to ASU 2014-09. In 2016, the Company identified a project team and commenced an initial impact assessment process. To date, the Company has reviewed a sample of contracts with its customers and made preliminary assessments of the impact on revenue and expenses based on these reviews; however, the assessment of the impact to the Company’s results of operations, financial position and cash flows as a result of this guidance is ongoing. Additionally, ASU 2014-09 requires increased disclosure , which in turn may require changes to processes and systems. The Company expects to complete its initial impact assessment in the second quarter of 2017, at which time it will develop an implementation plan to include any potential process or system changes. The Company expects to adopt this new standard as of January 1, 2018 and currently expects to apply the modified retrospective method, which may result in a cumulative effect adjustment as of the date of adoption. Both the Company’s initial assessment and its selected transition method may change depending on the results of the Company’s final assessment of the impact to its financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): 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 its consolidated financial statements and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the future adoption of ASU 2016-01 to have a material impact on its 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. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”), which simplifies the accounting for share-based payment transactions. Among other things, ASU 2016-09 provides for (i) the simplification of accounting presentation of excess tax benefits and tax deficiencies, (ii) an accounting policy election regarding forfeitures to use an estimate or account for when incurred, and (iii) simplification of cash flow presentation for statutory tax rate withholding. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The transition method required by ASU 2016-09 varies by amendment. The Company will implement this new standard on its effective date and it does not expect the adoption of 2016-09 to have a material impact on its consolidated financial statements and disclosures. However, the Company cannot provide any assurance regarding their future impacts. Ad ditionally, the ad option of the accounting policy election to record forfeitures as incurred may increase the volatility of equity based compensation. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”), which addresses eight classification issues related to the statement of cash flows presentation, with the objective of reducing diversity in practice. The amendments in this ASU provide guidance on the following cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for annual reporting periods beginning after December 31, 2017, with early adoption permitted. Although the Company is still evaluating the effect that ASU 2016-15 will have on its statement of cash flow and disclosures, the Company expects the standard will primarily impact of the presentation of the earnouts associated with the business acquisitions completed in January 2017. Their presentation in ac |
Cash Equivalents And Marketable
Cash Equivalents And Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 are summarized below: (In thousands) December 31, 2016 December 31, 2015 Cash equivalents: Money market mutual funds $ 6,742 $ 6,746 Commercial paper - 1,000 Corporate debt securities 413 1,055 Total cash equivalents 7,155 8,801 Marketable securities: Commercial paper 7,370 8,684 Debt securities issued by U.S. Government agencies - 35,155 Corporate debt securities 16,716 44,972 Variable rate demand notes 13,995 - Total marketable securities, available-for-sale 38,081 88,811 Total cash equivalents and marketable securities $ 45,236 $ 97,612 At December 31, 2016 and 2015 , 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, 2016 : (In thousands) Total Due in one year or less $ 24,086 Due after one year through five years - Due after five through ten years 4,695 Due after ten years 9,300 Total debt securities $ 38,081 The Company received total proceeds of $125.0 million, $42.2 million and $40.7 million from the sale or maturity of available-for-sale marketable securities during the years ended December 31, 2016, 2015 and 2014 . Net unrealized holding gains on available-for-sale securities were less than $0.1 million for each of the years ended December 31, 2016 and 2015 and are included in accumulated other comprehensive loss on the consolidated balance sheets as of December 31, 2016 and 2015 . |
Disclosures About Segments Of A
Disclosures About Segments Of An Enterprise And Related Information | 12 Months Ended |
Dec. 31, 2016 | |
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 for the years ended December 31, 2016, 2015 and 2014 is presented in the following table : (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the year ended December 31, 2016 Operating revenues $ 123,604 $ 63,328 $ 19,967 $ - $ 206,899 Cost of revenue 17,909 21,064 - - 38,973 Gross profit 105,695 42,264 19,967 N/A Direct operating and selling costs 7,489 4,658 653 - 12,800 Indirect operating costs 26,717 9,494 210 - 36,421 Corporate general and administrative costs 15,471 6,395 1,749 12,142 35,757 Adjusted EBITDA (1),(2) 56,018 21,717 17,355 - N/A Capital expenditures 73,328 10,050 - 649 84,027 For the year ended December 31, 2015: Operating revenues $ 114,311 $ 67,214 $ 22,744 $ - $ 204,269 Cost of revenues 17,934 24,271 - - 42,205 Gross profit 96,377 42,943 22,744 N/A Direct operating and selling costs 5,403 4,521 666 - 10,590 Indirect operating costs 25,322 10,043 225 - 35,590 Corporate general and administrative costs 14,933 6,953 1,995 7,231 31,112 Adjusted EBITDA (1) ,(2) 50,719 21,426 19,858 - N/A 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 Cost of revenue 16,767 26,211 - - 42,978 Gross profit 89,875 45,817 22,786 N/A Direct operating and selling costs 4,755 4,600 667 - 10,022 Indirect operating costs 24,194 10,077 309 - 34,580 Corporate general and administrative costs 14,227 7,660 2,125 (5,942) 18,071 Adjusted EBITDA (1) ,(2) 46,699 23,480 19,685 10,774 N/A Capital expenditures 66,570 7,089 - 10,441 84,100 (1) Adjusted EBITDA (a non-GAAP measure), is used by the Company’s CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, acquisition and separation related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives . See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures regarding Adjusted EBITDA (2) In 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the years ended December 31, 2015 and 2014. N/A – Not Applicable (as totals are not presented in the consolidated statements of operations). 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. Management does review capital expenditures using success-based metrics that allow the Company to determine which segment product groups are driving investment in the network. Depreciation and amortization expense and certain corporate expenses that are excluded from the measurement of segment profit or loss are not allocated to the operating segments. The 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 the total of the Company’s reportable segments measure of profit to the Company’s consolidated income before income taxes for the years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, (In thousands) 2016 2015 2014 Data Adjusted EBITDA $ 56,018 $ 50,719 $ 46,699 R&SB Adjusted EBITDA 21,717 21,426 23,480 Access Adjusted EBITDA 17,355 19,858 19,685 Corporate (Unallocated) Adjusted EBITDA - - 10,774 Total reportable segments measure of profit 95,090 92,003 100,638 Interest expense (28,385) (19,918) (15,575) Gain on interest rate swap derivatives - 665 492 Other (income) expenses, net 389 114 664 Depreciation and amortization and accretion of asset retirement obligations (51,394) (47,666) (45,330) Amortization of actuarial losses (1,350) (1,350) (248) Equity-based compensation (9,581) (5,881) (4,340) Restructuring charges (1,940) (638) - Employee separation charges - - (244) Acquisition and separation related charges (1,211) - - Income before income taxes $ 1,618 $ 17,329 $ 36,057 One of the Company's carrier customers, AT&T, individually accounted for 7 % of the Company’s total revenue for each of the years ended December 31, 2016 and 2015 and 10% of the Company’s total revenue for the year ended December 31, 201 4 . The Company’s five largest carrier customers, in the aggregate, accounted for 32% of the Company’s total operating revenues for the year ended December 31, 2016 and 31% for each of the years ended December 31, 2015 and 2014. 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, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 5. Long-Term Debt As of December 31, 2016 and 2015 , the Company’s outstanding long-term debt consisted of the following: December 31, 2016 December 31, 2015 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ 340,385 $ 3,283 $ 348,415 $ 4,705 8% Notes 150,000 26,529 150,000 29,607 Capital lease obligations 7,842 - 2,597 - Long-term debt 498,227 29,812 501,012 34,312 Less: Current portion of long-term debt 13,530 - 10,400 - Long-term debt, excluding current portion $ 484,697 $ 29,812 $ 490,612 $ 34,312 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, which was added through an amendment to the Credit Facility dated January 2, 2015 (“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. The Company used the net proceeds from Term Loan C to fund new FTTC projects. As of December 31, 2016 , no borrowings were outstanding under the Revolver. 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, 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. 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 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, 2016 , the Company’s leverage ratio was 3.68 :1.00 and its interest coverage ratio was 7.27 :1.00. The Company was in compliance with its debt covenants as of December 31, 2016 . 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, 2016 , no mandatory prepayment was due for the year ended December 31, 2016 . 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. The Company’s effective interest rate on its Credit Facility for the year ended December 31, 2016 was 3.95% . 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 is being 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, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). 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, 2016 , 2015 and 2014 was $4.5 million, $2.7 million and $1.5 million, respectively. The Company’s effective interest rate on the 8% Notes for the year ended December 31, 2016 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 operations as an offset to interest expense. The patronage credits were $1.0 million, $1.2 million and $0.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The aggregate maturities of the Term Loan A, Term Loan B and Term Loan C under the Credit Facility are $13.0 million in 2017, $70.9 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, 2016 , 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. The Company also has a fiber indefeasible right of use (“IRU”) agreement classified as a capital lease, which was entered into in January 2016. The IRU network capacity arrangement extends through 2035 with payments due monthly. During the second quarter of 2016, the Company fully satisfied a financing obligation related to a software licensing agreement entered into during 2013. As of December 31, 2016 , the combined total net present value of the Company’s future minimum lease payments is $7.8 million and the principal portion of these capital lease obligations was due as follows $0. 5 million in 201 7 and 2018 , $0.4 million in 2019 through 2021 and $5.6 million thereafter. The historical cost and accumulated amortization for each of the related assets associated with the capital leases is as follows as of December 31, 2016: December 31, 2016 (In thousands) Historical Cost Accumulated Amortization Vehicles $ 2,723 $ (1,755) Network capacity IRU 8,871 (444) Total $ 11,594 $ (2,199) |
Supplementary Disclosures Of Ca
Supplementary Disclosures Of Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Cash payments (receipts): Interest (net of amounts capitalized) $ 23,873 $ 15,467 $ 13,206 Income taxes 395 843 (680) Supplemental investing and financing activities: Additions to property and equipment included in accounts payable and other accrued liabilities 2,750 6,906 8,373 Capital lease obligations 7,928 - 123 Dividend declared not paid $ - $ - $ 3,152 Cash payments for interest for the years ended December 31, 2016 , 2015 and 2014 in the table above are net of $0. 8 million, $0. 8 million and $0. 9 million, respectively, of cash received from CoBank for patronage credits (Note 5). The amount of interest capitalized was $ 1.0 million, $ 1.2 million and $ 0.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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 , accounts receivable, accounts payable, capital lease obligations (including the current portion), accrued liabilities, the Credit Facility (including the current portion) and the 8% Notes as of December 31, 2016 and 2015 . 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, 2016 and 2015 . Marketable securities 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, 2016 and 2015 : Fair Value Measurements at December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents: Money market mutual funds $ 6,742 $ - $ - $ 6,742 Corporate debt securities - 413 - 413 Total cash equivalents 6,742 413 - 7,155 Marketable securities: Commercial paper - 7,370 - 7,370 Corporate debt securities - 16,716 - 16,716 Variable rate demand notes - 13,995 - 13,995 Total marketable securities - 38,081 - 38,081 Total financial assets $ 6,742 $ 38,494 $ - $ 45,236 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 The fair value of commercial paper, variable rate demand notes 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 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, 2016 December 31, 2015 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ 337,102 $ 304,571 $ 343,710 $ 298,400 8% Notes 123,471 133,965 120,393 132,028 Capital lease obligations 7,842 7,842 2,597 2,597 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. 5 million and $ 1 . 2 million as of December 31, 2016 and 2015 , respectively, of which $1. 4 million and $ 1 . 1 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 (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
(Loss) Earnings Per Share | Note 8. Earnings (Loss) per Share The Company computes basic earnings (loss) per share by dividing net income (loss) 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 (loss) 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 (loss) per share for the years ended December 31, 2016 , 2015 and 2014 are as follows: (In thousands, except per share amounts) 2016 2015 2014 Numerator: Net (loss) income attributable to Lumos Networks Corp. $ (523) $ 10,026 $ 21,528 Less: net income attributable to Lumos Networks Corp. allocable to participating securities - (338) (540) Numerator for basic and diluted (loss) earnings per common share (523) 9,688 20,988 Denominator: Weighted average basic shares outstanding 23,370 22,825 22,328 Less: weighted average participating securities and nonvested performance-based restricted shares (813) (791) (581) Denominator for basic (loss) earnings per common share 22,557 22,034 21,747 Plus: potentially dilutive stock options - 275 363 Denominator for diluted (loss) earnings per common share 22,557 22,309 22,110 Basic (loss) earnings per share $ (0.02) $ 0.44 $ 0.97 Diluted (loss) earnings per share $ (0.02) $ 0.43 $ 0.95 For the year ended December 31, 2016 , the denominator for diluted loss per common share is equivalent to the denominator for basic loss per common share because the addition of stock options and unvested restricted stock ( 984,144 and 526,957 , respectively) would be antidilutive for the period. For the year ended December 31, 201 5 , 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, 201 4 , 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 . The earnings per share calculation for the year ended December 31, 2016 and 2015 also exclude the 5,500,000 outstanding stock warrants described in Note 9 as they would be antidilutive for the respective period s . |
Stock Options, Restricted Stock
Stock Options, Restricted Stock and Stock Warrants | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , the maximum number of shares of common stock available for awards under the Equity and Cash Incentive Plan is 5,500,000 and 901 , 558 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 didn’t issue any stock options under the Equity and Cash Incentive Plan during the year ended December 31, 2016 and issued 323,804 shares of restricted stock. Options issued to employees with service-only conditions generally vest on a graded vesting schedule over a four to five year period. 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 . Dividend rights applicable to restricted stock with service-only vesting conditions are equivalent to the Company’s common stock. Restricted stock awards that vest based on achievement of a market condition are not eligible for dividends during the vesting period unless the Compensation Committee determines otherwise. Stock options must be granted under the Equity and Cash Incentive Plan at not less than 100 % of fair value on the date of grant and have a maximum life of ten years from the date of grant. Options and other awards under the Equity and Cash Incentive Plan may be exercised in compliance with such requirements as determined by a committee of the board of directors. Substantially all options outstanding were issued at a strike price equal to or greater than the fair value on the date of grant. The fair value of each option award with service-only vesting conditions is estimated on the grant date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The risk-free rate is based on the zero-coupon U.S. Treasury rate in effect at the time of grant, with a term equal to the expected life of the options. The 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. There were no stock options granted during the year ended December 31, 2016. The weighted-average grant date fair value per share of stock options granted during the years ended December 31, 2015 and 2014 was $8.09 and $6.68 , 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 Risk-free interest rate 1.90% 1.96% Expected volatility 55.93% 59.52% Expected dividend yield 0.00% 3.54% Expected term 6.3 years 6.1 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, 2016 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, 2015 2,182 $ 12.57 Granted during the period - - Exercised during the period (123) 12.59 Forfeited during the period (35) 13.96 Expired during the period (275) 13.78 Stock options outstanding at December 31, 2016 1,749 $ 12.35 5.2 years $ 6,279 Stock options exercisable at December 31, 2016 1,325 $ 12.17 4.9 years $ 4,997 Total stock options outstanding, vested and expected to vest at December 31, 2016 1,727 $ 12.36 $ 6,180 The total intrinsic value of stock options exercised during the years ended December 31, 2016, 2015 and 2014 was $0. 2 million, $0. 1 million and $0. 3 million, respectively. The total fair value of options that vested during the years ended December 31, 2016 , 2015 and 2014 was $ 0 . 8 million, $ 1 . 3 million and $ 0 . 5 million, respectively. As of December 31, 2016 , there was $ 0 . 8 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1 .5 years. The summary of the activity and status of the Company’s restricted stock for the year ended December 31, 2016 is as follows: (In thousands, except per share amounts) Shares Weighted-Average Grant Date Fair Value per Share Restricted stock outstanding at December 31, 2015 861 $ 14.37 Granted during the period 324 12.17 Vested during the period (240) 12.46 Forfeited during the period (96) 15.91 Restricted stock outstanding at December 31, 2016 849 $ 13.85 As of December 31, 2016 , there was $ 4 . 7 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 1 . 8 years. The total fair value of restricted stock awards that vested during the years ended December 31, 2016, 2015 and 2014 was $ 3 . 0 million, $1.7 million and $ 1 . 7 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, 2016 , 6 1 , 657 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, 2016 , 6,126 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, 2016 , 2015 and 2014 . 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 Warran ts are fully vested and exercis able 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, 2016 and 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, 2016 , is as follows: (In thousands, except per share amounts) Shares Weighted Average Exercise Price per Share Stock warrants outstanding at December 31, 2015 5,500 $ 13.99 Granted during the period - - Exercised during the period - - Expired during the period - - Stock warrants outstanding at December 31, 2016 5,500 $ 13.99 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10. Income Taxes The components of income tax expense are as follows for the years ended December 31, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Current tax expense (benefit): Federal $ - $ - $ - State 411 379 (68) Total current tax expense (benefit) 411 379 (68) Deferred tax expense: Federal 1,341 6,319 11,908 State 210 448 2,569 Total deferred tax expense 1,551 6,767 14,477 Total income tax expense $ 1,962 $ 7,146 $ 14,409 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, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Computed tax expense at federal statutory rate of 35% $ 567 $ 6,065 $ 12,620 Nondeductible compensation 532 122 27 Noncontrolling interests (69) (61) (47) Nondeductible public offering costs - 112 - State income taxes, net of federal income tax impact 403 538 1,626 Nondeductible interest on 8% Notes 28 578 - Other, net 501 (208) 183 Total income tax expense $ 1,962 $ 7,146 $ 14,409 During the year s ended December 31, 201 6 and 2015 , the Company recognized excess tax expense ( benefits ) of approximately $0.2 million and ($0.2) million 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, 2016 , these tax benefits are available to offset future taxable income. The Company recognized tax expense of $0.6 million and $0.4 million and tax benefits of $ 5.4 million in accumulated other comprehensive income associated with the adjustments to various employee benefit plan liabilities for the years ended December 31, 2016 , 2015 and 2014 , 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, 2016 and 2015 are presented below: (In thousands) 2016 2015 Deferred income tax assets: Retirement benefits other than pension $ 2,181 $ 2,167 Pension and related plans 4,159 4,588 Net operating loss 26,704 16,509 Accrued expenses 7,096 6,848 Interest and discount on 8% Notes 809 - Other 546 425 Total deferred income tax assets 41,495 30,537 Deferred income tax liabilities: Property and equipment (128,515) (111,846) Intangibles (9,968) (7,884) Total deferred income tax liabilities (138,483) (119,730) Net deferred income tax liability $ (96,988) $ (89,193) In the fourth quarter of 2016, the Company recorded an out-of-period adjustment to establish deferred tax liabilities associated with the 2015 issuance of the 8% Notes with an offset to additional paid-in capital in the amount of $5.5 million. At December 31, 2016 , the Company had federal net operating losses (“NOLs”) of $ 69.3 million, net of adjustments for unrecognized income tax benefits (“UTBs”) and unrealized excess tax benefits on stock compensation. The Company’s NOLs, if not utilized to reduce taxable income in future periods, will expire in varying amounts from 202 2 through 203 6 . The Company believe s that it is more likely than not that the reversal of current deferred tax liabilities and the results of future operations will be sufficient 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, 2016 and 2015 is as follows: (In thousands) 2016 2015 Balance at beginning of year $ 1,356 $ 1,112 Additions for tax positions related to the current year 235 297 Increases for tax positions related to prior years (96) 109 Statute of limitations expiration (342) (162) Balance at end of year $ 1,153 $ 1,356 All of the Company’s UTBs as of December 31, 2016 and 2015 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 201 3 -201 6 as of December 31, 2016 . |
Pension Plans And Other Postret
Pension Plans And Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
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 $0.7 million, $ 1.3 million and $1.1 million (excluding the curtailment gain discussed below) in 2016, 2015 and 2014 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 received 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, 2016 , 2015 and 2014 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, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Change in benefit obligations: Benefit obligations, beginning of period $ 65,725 $ 70,892 $ 57,209 $ 765 $ 844 $ 12,800 Service cost - - - - - 80 Interest cost 2,696 2,664 2,622 30 31 373 Actuarial loss (gain) 763 (4,550) 13,547 22 (83) 887 Benefits paid, net (2,891) (3,281) (2,956) (115) (27) (671) Curtailment gain - - - - - (12,625) Transfer - - 470 - - - Benefit obligations, end of period $ 66,293 $ 65,725 $ 70,892 $ 702 $ 765 $ 844 Change in plan assets: Fair value of plan assets, beginning of period $ 53,912 $ 58,403 $ 57,847 $ - $ - $ - Actual return on plan assets 4,606 (1,166) 3,555 - - - Employer contributions - - - 115 27 671 Benefits paid (2,945) (3,325) (2,999) (115) (27) (671) Transfer - - - - - - Fair value of plan assets, end of period $ 55,573 $ 53,912 $ 58,403 $ - $ - $ - Funded status: Non-current asset $ - $ - $ - $ - $ - $ - Current liabilities - - - 56 111 72 Non-current liabilities 10,720 11,813 12,489 646 654 772 Funded status recognized in the consolidated balance sheets $ 10,720 $ 11,813 $ 12,489 $ 702 $ 765 $ 844 Amounts recognized in accumulated other comprehensive loss: Net actuarial (loss) gain $ (16,598) $ (17,899) $ (18,119) $ 111 $ 18 $ (65) Income taxes 6,440 6,981 7,066 (43) (7) 25 Net amount recognized in accumulated other comprehensive loss $ (10,158) $ (10,918) $ (11,053) $ 68 $ 11 $ (40) The accumulated benefit obligation for the defined benefit pension plan at December 31, 2016 and 2015 was $6 6 . 3 million and $ 65 . 7 million, respectively. The increase in the projected benefit obligation is primarily attributable to actuarial losses resulting from a decrease in the discount rate from 4 . 20 % at December 31, 201 5 to 4. 00 % at December 31, 2016 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, 2016 and 2015 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 each of the years ended December 31, 2016 and 2015 were $ 0. 9 million , net of income taxes of $0. 5 million, and $0. 1 million , net of income taxes of less than $0.1 million, for the year ended December 31, 2014 . Amortization of actuarial losses is included in selling, general and administrative expenses on the consolidated statements of operations . The following table provides the components of net periodic (benefit) expense for the plans for the years ended December 31, 2016 , 2015 and 2014 : Defined Benefit Pension Plan Other Postretirement Benefit Plans (In thousands) Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Components of net periodic (benefit) expense: Service cost $ - $ - $ - $ - $ - $ 80 Interest cost 2,696 2,664 2,622 30 31 373 Expected return on plan assets (3,536) (4,111) (4,373) - - - Amortization of loss 1,049 991 - - - 23 Net periodic expense (benefit) $ 209 $ (456) $ (1,751) $ 30 $ 31 $ 476 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, 2016 and 2015 are shown in the following table: Defined Benefit Pension Plan Other Postretirement Benefit Plans December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Discount rate 4.00 % 4.20 % 4.00 % 4.20 % 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 operations for the years ended December 31, 2016 , 2015 and 2014 were as follows: Defined Benefit Pension Plan Other Postretirement Benefit Plans Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Discount rate 4.20 % 3.85 % 4.70 % 4.20 % 3.85 % 4.70 % Expected return on plan assets 6.75 % 7.25 % 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, 2016 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, 2016 and 2015 were as follows: (Dollars in thousands) December 31, 2016 December 31, 2015 Asset Category Actual Allocation Fair Value Actual Allocation Fair Value Large Cap Value 23 % $ 12,518 23 % $ 12,193 Large Cap Blend 11 % 6,237 11 % 6,085 Mid Cap Blend 7 % 3,676 6 % 3,342 Small Cap Blend 4 % 2,308 4 % 2,080 Foreign Stock - Large Cap 6 % 3,586 7 % 3,817 Bond 33 % 18,633 34 % 18,239 Cash and cash equivalents 16 % 8,615 15 % 8,156 Total 100 % $ 55,573 100 % $ 53,912 The actual and target allocation for plan assets is broadly defined and measured as follows: December 31, 2016 December 31, 2015 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, 2016 . At December 31, 2016 , 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 201 6 , 201 5 or 201 4 and does not expect to contribute to the Pension Plan in 201 7 . The Company expects the net periodic expense for the Pension Plan in 201 7 to be $ 0.6 million and the expense for the other postretirement benefit plans in 201 7 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 2017 $ 3,074 $ 57 2018 3,111 57 2019 3,214 56 2020 3,247 55 2021 3,315 54 2022-2026 17,197 245 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 $4.8 million, $4.6 million and $4.9 million as of December 31, 2016 , 2015 and 2014 , respectively. The Company recognized $0.2 million, $0. 4 million and $0. 2 million of expense from previously unrecognized loss related to the supplemental executive retirement plan during the years ended December 31, 2016, 2015 and 2014 , respectively, all of which is included in selling, general and administrative expenses in the consolidated statements o f operations . The total amount of unrecognized actuarial losses recognized in accumulated other comprehensive income at December 31, 2016 and 2015 related to this plan was $ 0.9 million, net of income taxes of $ 0 .6 million, and $ 1.0 million, net of income taxes of $ 0.6 million, respectively. The e stimated future benefit payments are expected to be $ 0.2 million annually for each of the years 2017 through 2019, $0.3 million annually for each of the years 2020 through 2021 and $ 1.4 million in aggregate for the years 202 2 through 202 6 . The Company also sponsors a defined contribution 401(k) plan. The Company’s matching contributions to this plan were $ 1.1 million, $ 1.1 million and $ 1.0 million for the years ended December 31, 2016 , 2015 and 2014 , 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, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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. 4 million, $4.7 million and $5.0 million in the years ended December 31, 2016 , 2015 and 2014 , respectively, which is presented in the Company’s data segment revenues. At both December 31, 2016 and 2015 , 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, $1.2 million and $0.9 million in the years ended December 31, 2016 , 2015 and 2014 , respectively, which is presented as cost of revenue in the consolidated statements of operations. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Note 13. Restructuring Charges In 2016, the Company com pleted an employee reduction-in-force. Restructuring costs, consisting of employee severance a nd termination benefits, of $1.9 million were recognized during the year ended December 31 , 2016. The Company does not expect to incur additional costs associated with these restructuring activities in future periods. The following table provides a break-down of these costs by business segment for the year ended December 31, 2016: (In thousands) Data R&SB RLEC Access Total Employee severance and termination benefits $ 1,451 $ 412 $ 77 $ 1,940 Total restructuring charges $ 1,451 $ 412 $ 77 $ 1,940 A liability for restructuring charges in the amount of $0.4 million is included in accrued compensation in the Company’s consolidated balance sheet as of December 31 , 2016, related to employee termination costs accrued, but not yet paid. Below is a summary of the restructuring liability balance as of December 31 , 2016: (In thousands) Employee Severance and Termination Benefits Total Beginning balance at December 31, 2015 $ - $ - Additions, net of adjustment 1,940 1,940 Payments (1,542) (1,542) Ending balance at December 31, 2016 $ 398 $ 398 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 1 4 . Commitments and Contingencies Operating Leases Rental expense , including certain related lease costs, which are not separately identifiable, for all operating leases for the years ended December 31, 2016 , 2015 and 2014 was $ 12.1 million , $12.0 m illion and $10.2 million, respectively. The total amount committed under these lease agreements at December 31, 2016 is: $ 3.6 million in 201 7 , $ 3.0 million in 201 8 , $ 2.3 million in 201 9 , $ 1.2 million in 20 20 , $ 0. 7 million in 202 1 and $ 1.5 million for the years thereafter. These amounts include leases for office space and office equipment and collocation and other network facilities. Capital Leases See Note 5 for information regarding the Company’s capital lease obligations and future commitments associated with those obligations. 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 expenditu res totaling $ 2.8 million as of December 31, 2016 , which are expected to be satisfied during 2017. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 15. Subsequent Events On January 4, 2017 , the Company closed on an acquisition of Clarity Communications, LLC , a North Carolina based fiber bandwidth provider for a total purchase price of approximately $15 million, $10 million of which was paid in cash upon closing with the remaining $5 million subject to certain earnout provisions over a two year period following the closing date, which would be accelerated upon a change in control. On January 31, 2017 , the Company closed on an acquisition of DC74 LLC , a North Carolina based data center and managed services provider for a total purchase price of approximately $28 to $29 million, $23.5 million of which was paid in cash upon closing with the remaining $5 to $6 million subject to certain earnout provisions over a 12-month period following the closing date, which would vest upon a change in control. On February 18, 2017, we entered into a definitive agreement (“Merger Agreement”) by and among the Company, MTN Infrastructure TopCo, Inc. (“Parent”) and MTN Infrastructure BidCo, Inc. (“Me rger Sub”), pursuant to which we will be acquired by EQT Infrastructure investment strategy (“EQT Infrastructure”) , subject to shareholder approval, regulatory approval and other customary closing conditions. Pursuant to the Merger Agreement, each outstanding share of common stock of the Company prior to the effective time of the Merger shall be automatically converted into the right to receive $ 18.00 in cash. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles Of Consolidation And Basis Of Presentation | 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. Certain presentation changes have been made within the operating expense line items on the consolidated statements of operations and prior period amounts have been reclassified in order to conform to the current year presentation. Specifically, the previously reported line item “network access costs” has been removed and the new line item “cost of revenue” has been added along with the necessary operating expense reclassifications. These reclassifications were not the result of an error and have no effect on previously reported operating income, net income or earnings per share. |
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 benefit obligations; stock warrants; and reserve for uncertain income tax positions. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or products are delivered, installed and functional, as applicable, the price to the buyer is fixed or determinable and collectability is reasonably assured. Certain services of the Company require payment in advance of service performance. In such cases, the Company records a service liability at the time of billing and subsequently recognizes revenue ratably over the service period. The Company bills customers certain transactional taxes on service revenues. These transactional taxes are not included in reported revenues as they are recognized as liabilities at the time customers are billed. The Company earns revenue by providing services through access to and usage of its networks. Local service revenues are recognized as services are provided. Carrier data revenues are earned by providing switched access and other switched and dedicated services to other carriers. |
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, 2016 and 2015 consist of debt securities not classified as cash equivalents. The Company classifies such debt securities as either held-to-maturity, when the Company has the positive intent and ability to hold the securities to maturity, or available-for-sale. Held-to-maturity debt securities are carried at amortized cost, adjusted for the amortization of premiums or accretion of discounts. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of December 31, 2016 and 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 advance payment for certain services. 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 operations. The following table shows the activity in the allowance for doubtful accounts and customer credits for the years ended December 31, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Allowance for doubtful accounts and customer credits, beginning $ 1,235 $ 1,217 $ 1,485 Additions: Charged to expense 236 461 604 (Deducted from) charged to other accounts (97) 96 (19) Deductions (432) (539) (853) Allowance for doubtful accounts and customer credits, ending $ 942 $ 1,235 $ 1,217 |
Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) | Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) Property, plant and equipment, finite-lived intangible assets and long-term deferred charges are recorded at cost and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be evaluated pursuant to the subsequent measurement guidance described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35. Impairment is determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. The Company believes that no impairment indicators exist as of December 31, 2016 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, 2016 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 50 years Furniture, fixtures and other equipment 4 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 an indefeasible right of use agreement (“IRU”), is included with depreciation expense. Intangibles with a finite life are classified as other intangibles on the consolidated balance sheets. At December 31, 2016 and 2015 , other intangibles were comprised of the following: 2016 2015 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (95,463) $ 103,108 $ (93,051) Trademarks and franchise rights 10 to 15 yrs 2,862 (2,004) 2,862 (1,841) Total $ 105,970 $ (97,467) $ 105,970 $ (94,892) Included in the above amounts are indefinite-lived intangible assets of $0.3 million, which are not subject to amortization. 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, 2016 or 2015 . Amortization expense for the years ended December 31, 2016 , 2015 and 2014 was $ 2.6 million, $ 4.8 million and $ 9.2 million, respectively. Amortization expense for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total 2017 $ 2,093 $ 163 $ 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 2021 1,112 - 1,112 |
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, 2016 , goodwill was attributed to the Company’s segments as follows: (In thousands) December 31, 2016 Data $ 90,561 R&SB 9,736 RLEC Access - Total goodwill $ 100,297 As of October 1, 2016, 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, 2016 and 2015 . There was no activity in the consolidated goodwill accounts for the years ended 2016 and 2015 . |
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, 2016 and 2015 : (In thousands) 2016 2015 Asset retirement obligations, beginning $ 1,720 $ 1,500 Additional asset retirement obligations recorded, net of adjustments in estimates - 81 Accretion of asset retirement obligations 115 139 Asset retirement obligations, ending $ 1,835 $ 1,720 |
Advertising Costs | Advertising Costs The Company expenses advertising costs and marketing production costs as incurred (included within selling, general and administrative expenses in the consolidated statements of operations). Advertising expense for the years ended December 31, 2016 , 2015 and 2014 was $0.9 million, $ 0.7 million and $ 1.4 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. 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. Vested pension benefits were based on years of service and an average of the five highest consecutive years of compensation and are subject to certain reductions if the employee retires and elects to receive the benefit prior to reaching age 65 . 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. No contributions were made during the year ended December 31, 2016 and the Company does not expect to make a contribution in 2017. The Company also provides certain postretirement life insurance benefits for retired employees through the qualified nonpension postretirement welfare benefit plan (the “Other Postretirement Benefit Plan”), which is contributory. 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 postretirement benefits other than pensions by accruing the cost of such benefits over the service periods 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 (income). 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 FASB Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes (“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 in 2012 and 2013 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 was determined using a Monte Carlo model to reflect the probability of achieving the market condition. 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), annual employee bonuses paid in the form of immediately vested shares and the Company’s 401(k) matching contributions, was $9.6 million, $5.9 million and $4.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, which amounts are included in selling, general and administrative expenses in the consolidated statements of operations. Future charges for equity-based compensation related to instruments outstanding at December 31, 2016 for the years 2017 through 2019 are estimated to be $ 3.5 million, $ 1.7 million, $ 0.4 million and less than $0.1 million for each of 2020 and 2021, 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 - Un adjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. · Level 3 - Unobservable inputs for the asset or liability. |
Recent Accounting Pronouncements | · Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date, 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Gross versus Net) (“ASU 2016-08”), which clarifies implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing (“ASU 2016-10”), which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), which addresses narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in ASU 2016-12 provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. Finally, in December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with customers, which makes minor corrections or improvements to ASU 2014-09. In 2016, the Company identified a project team and commenced an initial impact assessment process. To date, the Company has reviewed a sample of contracts with its customers and made preliminary assessments of the impact on revenue and expenses based on these reviews; however, the assessment of the impact to the Company’s results of operations, financial position and cash flows as a result of this guidance is ongoing. Additionally, ASU 2014-09 requires increased disclosure , which in turn may require changes to processes and systems. The Company expects to complete its initial impact assessment in the second quarter of 2017, at which time it will develop an implementation plan to include any potential process or system changes. The Company expects to adopt this new standard as of January 1, 2018 and currently expects to apply the modified retrospective method, which may result in a cumulative effect adjustment as of the date of adoption. Both the Company’s initial assessment and its selected transition method may change depending on the results of the Company’s final assessment of the impact to its financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): 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 its consolidated financial statements and disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the future adoption of ASU 2016-01 to have a material impact on its 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. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”), which simplifies the accounting for share-based payment transactions. Among other things, ASU 2016-09 provides for (i) the simplification of accounting presentation of excess tax benefits and tax deficiencies, (ii) an accounting policy election regarding forfeitures to use an estimate or account for when incurred, and (iii) simplification of cash flow presentation for statutory tax rate withholding. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The transition method required by ASU 2016-09 varies by amendment. The Company will implement this new standard on its effective date and it does not expect the adoption of 2016-09 to have a material impact on its consolidated financial statements and disclosures. However, the Company cannot provide any assurance regarding their future impacts. Ad ditionally, the ad option of the accounting policy election to record forfeitures as incurred may increase the volatility of equity based compensation. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”), which addresses eight classification issues related to the statement of cash flows presentation, with the objective of reducing diversity in practice. The amendments in this ASU provide guidance on the following cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for annual reporting periods beginning after December 31, 2017, with early adoption permitted. Although the Company is still evaluating the effect that ASU 2016-15 will have on its statement of cash flow and disclosures, the Company expects the standard will primarily impact of the presentation of the earnouts associated with the business acquisitions completed in January 2017. Their presentation in accordance with ASU 2016-15 would depend on whether they were deemed to be paid soon after the acquisition. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | (In thousands) 2016 2015 2014 Allowance for doubtful accounts and customer credits, beginning $ 1,235 $ 1,217 $ 1,485 Additions: Charged to expense 236 461 604 (Deducted from) charged to other accounts (97) 96 (19) Deductions (432) (539) (853) Allowance for doubtful accounts and customer credits, ending $ 942 $ 1,235 $ 1,217 |
Schedule of Property, Plant and Equipment | Estimated Life Buildings 50 years Network plant and equipment 3 to 50 years Furniture, fixtures and other equipment 4 to 24 years |
Finite-Lived Intangibles Assets | 2016 2015 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (95,463) $ 103,108 $ (93,051) Trademarks and franchise rights 10 to 15 yrs 2,862 (2,004) 2,862 (1,841) Total $ 105,970 $ (97,467) $ 105,970 $ (94,892) |
Schedule Of Future Amortization Expense | (In thousands) Customer Relationships Trademarks and Franchise Rights Total 2017 $ 2,093 $ 163 $ 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 2021 1,112 - 1,112 |
Schedule Of Goodwill Attributed To Segments | (In thousands) December 31, 2016 Data $ 90,561 R&SB 9,736 RLEC Access - Total goodwill $ 100,297 |
Schedule Of Changes In Asset Retirement Obligations | (In thousands) 2016 2015 Asset retirement obligations, beginning $ 1,720 $ 1,500 Additional asset retirement obligations recorded, net of adjustments in estimates - 81 Accretion of asset retirement obligations 115 139 Asset retirement obligations, ending $ 1,835 $ 1,720 |
Cash Equivalents And Marketab26
Cash Equivalents And Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value | (In thousands) December 31, 2016 December 31, 2015 Cash equivalents: Money market mutual funds $ 6,742 $ 6,746 Commercial paper - 1,000 Corporate debt securities 413 1,055 Total cash equivalents 7,155 8,801 Marketable securities: Commercial paper 7,370 8,684 Debt securities issued by U.S. Government agencies - 35,155 Corporate debt securities 16,716 44,972 Variable rate demand notes 13,995 - Total marketable securities, available-for-sale 38,081 88,811 Total cash equivalents and marketable securities $ 45,236 $ 97,612 |
Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities | (In thousands) Total Due in one year or less $ 24,086 Due after one year through five years - Due after five through ten years 4,695 Due after ten years 9,300 Total debt securities $ 38,081 |
Disclosures About Segments of27
Disclosures About Segments of an Enterprise and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Operating revenues $ 123,604 $ 63,328 $ 19,967 $ - $ 206,899 Cost of revenue 17,909 21,064 - - 38,973 Gross profit 105,695 42,264 19,967 N/A Direct operating and selling costs 7,489 4,658 653 - 12,800 Indirect operating costs 26,717 9,494 210 - 36,421 Corporate general and administrative costs 15,471 6,395 1,749 12,142 35,757 Adjusted EBITDA (1),(2) 56,018 21,717 17,355 - N/A Capital expenditures 73,328 10,050 - 649 84,027 For the year ended December 31, 2015: Operating revenues $ 114,311 $ 67,214 $ 22,744 $ - $ 204,269 Cost of revenues 17,934 24,271 - - 42,205 Gross profit 96,377 42,943 22,744 N/A Direct operating and selling costs 5,403 4,521 666 - 10,590 Indirect operating costs 25,322 10,043 225 - 35,590 Corporate general and administrative costs 14,933 6,953 1,995 7,231 31,112 Adjusted EBITDA (1) ,(2) 50,719 21,426 19,858 - N/A 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 Cost of revenue 16,767 26,211 - - 42,978 Gross profit 89,875 45,817 22,786 N/A Direct operating and selling costs 4,755 4,600 667 - 10,022 Indirect operating costs 24,194 10,077 309 - 34,580 Corporate general and administrative costs 14,227 7,660 2,125 (5,942) 18,071 Adjusted EBITDA (1) ,(2) 46,699 23,480 19,685 10,774 N/A Capital expenditures 66,570 7,089 - 10,441 84,100 (1) Adjusted EBITDA (a non-GAAP measure), is used by the Company’s CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, acquisition and separation related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures regarding Adjusted EBITDA (2) In 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the years ended December 31, 2015 and 2014. N/A – Not Applicable (as totals are not presented in the consolidated statements of operations). |
Reconciliation of Total of Reportable Segments Measure of Profit to Consolidated Income (Loss) Before Income Taxes | Year Ended December 31, (In thousands) 2016 2015 2014 Data Adjusted EBITDA $ 56,018 $ 50,719 $ 46,699 R&SB Adjusted EBITDA 21,717 21,426 23,480 Access Adjusted EBITDA 17,355 19,858 19,685 Corporate (Unallocated) Adjusted EBITDA - - 10,774 Total reportable segments measure of profit 95,090 92,003 100,638 Interest expense (28,385) (19,918) (15,575) Gain on interest rate swap derivatives - 665 492 Other (income) expenses, net 389 114 664 Depreciation and amortization and accretion of asset retirement obligations (51,394) (47,666) (45,330) Amortization of actuarial losses (1,350) (1,350) (248) Equity-based compensation (9,581) (5,881) (4,340) Restructuring charges (1,940) (638) - Employee separation charges - - (244) Acquisition and separation related charges (1,211) - - Income before income taxes $ 1,618 $ 17,329 $ 36,057 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-Term Debt | December 31, 2016 December 31, 2015 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ 340,385 $ 3,283 $ 348,415 $ 4,705 8% Notes 150,000 26,529 150,000 29,607 Capital lease obligations 7,842 - 2,597 - Long-term debt 498,227 29,812 501,012 34,312 Less: Current portion of long-term debt 13,530 - 10,400 - Long-term debt, excluding current portion $ 484,697 $ 29,812 $ 490,612 $ 34,312 |
Schedule of Capital Leased Assets [Table Text Block] | December 31, 2016 (In thousands) Historical Cost Accumulated Amortization Vehicles $ 2,723 $ (1,755) Network capacity IRU 8,871 (444) Total $ 11,594 $ (2,199) |
Supplementary Disclosures Of 29
Supplementary Disclosures Of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | |
Supplementary Disclosures of Cash Flow Information | (In thousands) 2016 2015 2014 Cash payments (receipts): Interest (net of amounts capitalized) $ 23,873 $ 15,467 $ 13,206 Income taxes 395 843 (680) Supplemental investing and financing activities: Additions to property and equipment included in accounts payable and other accrued liabilities 2,750 6,906 8,373 Capital lease obligations 7,928 - 123 Dividend declared not paid $ - $ - $ 3,152 |
Fair Value Of Financial Instr30
Fair Value Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Summary Of Financial Assets Measured At Fair Value | Fair Value Measurements at December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents: Money market mutual funds $ 6,742 $ - $ - $ 6,742 Corporate debt securities - 413 - 413 Total cash equivalents 6,742 413 - 7,155 Marketable securities: Commercial paper - 7,370 - 7,370 Corporate debt securities - 16,716 - 16,716 Variable rate demand notes - 13,995 - 13,995 Total marketable securities - 38,081 - 38,081 Total financial assets $ 6,742 $ 38,494 $ - $ 45,236 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 |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | December 31, 2016 December 31, 2015 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ 337,102 $ 304,571 $ 343,710 $ 298,400 8% Notes 123,471 133,965 120,393 132,028 Capital lease obligations 7,842 7,842 2,597 2,597 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule Of Computation Of Basic And Diluted Earnings (Loss) Per Share | (In thousands, except per share amounts) 2016 2015 2014 Numerator: Net (loss) income attributable to Lumos Networks Corp. $ (523) $ 10,026 $ 21,528 Less: net income attributable to Lumos Networks Corp. allocable to participating securities - (338) (540) Numerator for basic and diluted (loss) earnings per common share (523) 9,688 20,988 Denominator: Weighted average basic shares outstanding 23,370 22,825 22,328 Less: weighted average participating securities and nonvested performance-based restricted shares (813) (791) (581) Denominator for basic (loss) earnings per common share 22,557 22,034 21,747 Plus: potentially dilutive stock options - 275 363 Denominator for diluted (loss) earnings per common share 22,557 22,309 22,110 Basic (loss) earnings per share $ (0.02) $ 0.44 $ 0.97 Diluted (loss) earnings per share $ (0.02) $ 0.43 $ 0.95 |
Stock Options, Restricted Sto32
Stock Options, Restricted Stock and Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Risk-free interest rate 1.90% 1.96% Expected volatility 55.93% 59.52% Expected dividend yield 0.00% 3.54% Expected term 6.3 years 6.1 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, 2015 2,182 $ 12.57 Granted during the period - - Exercised during the period (123) 12.59 Forfeited during the period (35) 13.96 Expired during the period (275) 13.78 Stock options outstanding at December 31, 2016 1,749 $ 12.35 5.2 years $ 6,279 Stock options exercisable at December 31, 2016 1,325 $ 12.17 4.9 years $ 4,997 Total stock options outstanding, vested and expected to vest at December 31, 2016 1,727 $ 12.36 $ 6,180 |
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, 2015 861 $ 14.37 Granted during the period 324 12.17 Vested during the period (240) 12.46 Forfeited during the period (96) 15.91 Restricted stock outstanding at December 31, 2016 849 $ 13.85 |
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, 2015 5,500 $ 13.99 Granted during the period - - Exercised during the period - - Expired during the period - - Stock warrants outstanding at December 31, 2016 5,500 $ 13.99 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule Of Components Of Income Tax Expense (Benefit) | (In thousands) 2016 2015 2014 Current tax expense (benefit): Federal $ - $ - $ - State 411 379 (68) Total current tax expense (benefit) 411 379 (68) Deferred tax expense: Federal 1,341 6,319 11,908 State 210 448 2,569 Total deferred tax expense 1,551 6,767 14,477 Total income tax expense $ 1,962 $ 7,146 $ 14,409 |
Schedule Of Effective Income Tax Rate Reconciliation | (In thousands) 2016 2015 2014 Computed tax expense at federal statutory rate of 35% $ 567 $ 6,065 $ 12,620 Nondeductible compensation 532 122 27 Noncontrolling interests (69) (61) (47) Nondeductible public offering costs - 112 - State income taxes, net of federal income tax impact 403 538 1,626 Nondeductible interest on 8% Notes 28 578 - Other, net 501 (208) 183 Total income tax expense $ 1,962 $ 7,146 $ 14,409 |
Schedule Of Net Deferred Tax Assets And Liabilities | (In thousands) 2016 2015 Deferred income tax assets: Retirement benefits other than pension $ 2,181 $ 2,167 Pension and related plans 4,159 4,588 Net operating loss 26,704 16,509 Accrued expenses 7,096 6,848 Interest and discount on 8% Notes 809 - Other 546 425 Total deferred income tax assets 41,495 30,537 Deferred income tax liabilities: Property and equipment (128,515) (111,846) Intangibles (9,968) (7,884) Total deferred income tax liabilities (138,483) (119,730) Net deferred income tax liability $ (96,988) $ (89,193) |
Reconciliation Of Change In Unrecognized Income Tax Benefits | (In thousands) 2016 2015 Balance at beginning of year $ 1,356 $ 1,112 Additions for tax positions related to the current year 235 297 Increases for tax positions related to prior years (96) 109 Statute of limitations expiration (342) (162) Balance at end of year $ 1,153 $ 1,356 |
Pension Plans And Other Postr34
Pension Plans And Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Change in benefit obligations: Benefit obligations, beginning of period $ 65,725 $ 70,892 $ 57,209 $ 765 $ 844 $ 12,800 Service cost - - - - - 80 Interest cost 2,696 2,664 2,622 30 31 373 Actuarial loss (gain) 763 (4,550) 13,547 22 (83) 887 Benefits paid, net (2,891) (3,281) (2,956) (115) (27) (671) Curtailment gain - - - - - (12,625) Transfer - - 470 - - - Benefit obligations, end of period $ 66,293 $ 65,725 $ 70,892 $ 702 $ 765 $ 844 Change in plan assets: Fair value of plan assets, beginning of period $ 53,912 $ 58,403 $ 57,847 $ - $ - $ - Actual return on plan assets 4,606 (1,166) 3,555 - - - Employer contributions - - - 115 27 671 Benefits paid (2,945) (3,325) (2,999) (115) (27) (671) Transfer - - - - - - Fair value of plan assets, end of period $ 55,573 $ 53,912 $ 58,403 $ - $ - $ - Funded status: Non-current asset $ - $ - $ - $ - $ - $ - Current liabilities - - - 56 111 72 Non-current liabilities 10,720 11,813 12,489 646 654 772 Funded status recognized in the consolidated balance sheets $ 10,720 $ 11,813 $ 12,489 $ 702 $ 765 $ 844 Amounts recognized in accumulated other comprehensive loss: Net actuarial (loss) gain $ (16,598) $ (17,899) $ (18,119) $ 111 $ 18 $ (65) Income taxes 6,440 6,981 7,066 (43) (7) 25 Net amount recognized in accumulated other comprehensive loss $ (10,158) $ (10,918) $ (11,053) $ 68 $ 11 $ (40) |
Schedule Of Net Periodic (Benefit) Expense | Defined Benefit Pension Plan Other Postretirement Benefit Plans (In thousands) Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Components of net periodic (benefit) expense: Service cost $ - $ - $ - $ - $ - $ 80 Interest cost 2,696 2,664 2,622 30 31 373 Expected return on plan assets (3,536) (4,111) (4,373) - - - Amortization of loss 1,049 991 - - - 23 Net periodic expense (benefit) $ 209 $ (456) $ (1,751) $ 30 $ 31 $ 476 |
Schedule Of Assumptions Used | Defined Benefit Pension Plan Other Postretirement Benefit Plans December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Discount rate 4.00 % 4.20 % 4.00 % 4.20 % 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 operations for the years ended December 31, 2016 , 2015 and 2014 were as follows: Defined Benefit Pension Plan Other Postretirement Benefit Plans Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Discount rate 4.20 % 3.85 % 4.70 % 4.20 % 3.85 % 4.70 % Expected return on plan assets 6.75 % 7.25 % 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, 2016 December 31, 2015 Asset Category Actual Allocation Fair Value Actual Allocation Fair Value Large Cap Value 23 % $ 12,518 23 % $ 12,193 Large Cap Blend 11 % 6,237 11 % 6,085 Mid Cap Blend 7 % 3,676 6 % 3,342 Small Cap Blend 4 % 2,308 4 % 2,080 Foreign Stock - Large Cap 6 % 3,586 7 % 3,817 Bond 33 % 18,633 34 % 18,239 Cash and cash equivalents 16 % 8,615 15 % 8,156 Total 100 % $ 55,573 100 % $ 53,912 The actual and target allocation for plan assets is broadly defined and measured as follows: December 31, 2016 December 31, 2015 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 2017 $ 3,074 $ 57 2018 3,111 57 2019 3,214 56 2020 3,247 55 2021 3,315 54 2022-2026 17,197 245 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Schedule Of Restructuring Costs By Business Segments | (In thousands) Data R&SB RLEC Access Total Employee severance and termination benefits $ 1,451 $ 412 $ 77 $ 1,940 Total restructuring charges $ 1,451 $ 412 $ 77 $ 1,940 |
Summary Of Restucturing Liability Balance | (In thousands) Employee Severance and Termination Benefits Total Beginning balance at December 31, 2015 $ - $ - Additions, net of adjustment 1,940 1,940 Payments (1,542) (1,542) Ending balance at December 31, 2016 $ 398 $ 398 |
Organization (Details)
Organization (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 14, 2015 | Mar. 17, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 18, 2017 |
Organization [Abstract] | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||
Common stock sold by Quadrangle in secondary offering, shares | 1,600,000 | |||||
Sale of Stock, Number of Shares Issued in Transaction | 591,898 | |||||
Sale of Stock, Price Per Share | $ 18 | |||||
Sale of Stock, Consideration Received on Transaction | $ 0 | $ 0 | ||||
Other nonoperating costs | $ 0 | $ 300 | $ 0 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Cost Incurred to Renew or Extend | $ 0 | $ 0 | |
Amortization | 2,575,000 | 4,806,000 | $ 9,187,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 300,000 | 300,000 | |
Goodwill, Gross | 133,700,000 | 133,700,000 | |
Goodwill, Impaired, Accumulated Impairment Loss | 33,400,000 | 33,400,000 | |
Goodwill | 100,297,000 | 100,297,000 | |
Goodwill, Impairment Loss | 0 | 0 | |
Advertising Expense | $ 900,000 | 700,000 | 1,400,000 |
Number Of Highest ConsecutiveYears Of Compensation Subject To Certain Reductions | 5 years | ||
Maximum Retirement Age Reached To Be Subject To Reductions | 65 years | ||
Curtailment gain | (10,774,000) | ||
Contribution vesting period | 2 years | ||
Equity-based compensation, exclusive of restructuring charges | $ 9,581,000 | 5,881,000 | |
Future Charges For Equity-Based Compensation 2017 | 3,500,000 | ||
Future Charges For Equity-Based Compensation 2018 | 1,700,000 | ||
Future Charges For Equity-Based Compensation 2019 | 400,000 | ||
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 115,000 | $ 27,000 | $ 671,000 |
Maximum [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 5.00% | ||
Future Charges For Equity-Based Compensation 2020 | $ 100,000 | ||
Future Charges For Equity Based Compensation 2021 | $ 100,000 | ||
Minimum [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 1.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||
Allowance for doubtful accounts and customer credits, beginning | $ 1,235 | $ 1,217 | $ 1,485 |
Charged to Expense | 236 | 461 | 604 |
(Deducted from) charged to other Accounts | (97) | 96 | (19) |
Deductions | (432) | (539) | (853) |
Allowance for doubtful accounts and customer credits, ending | $ 942 | 1,235 | 1,217 |
Valuation Allowances and Reserves, Balance | $ 1,235 | $ 1,217 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Telephony Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 50 |
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 | 4 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Finite-Lived Intangibles Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 105,970 | $ 105,970 |
Accumulated Amortization | (97,467) | (94,892) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 103,108 | 103,108 |
Accumulated Amortization | (95,463) | (93,051) |
Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 2,862 | 2,862 |
Accumulated Amortization | $ (2,004) | $ (1,841) |
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 Accoun41
Summary of Significant Accounting Policies (Schedule Of Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 2,256 |
2,018 | 1,944 |
2,019 | 1,665 |
2,020 | 1,194 |
2,021 | 1,112 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 2,093 |
2,018 | 1,781 |
2,019 | 1,513 |
2,020 | 1,146 |
2,021 | 1,112 |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 163 |
2,018 | 163 |
2,019 | 152 |
2,020 | $ 48 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Schedule Of Changes In Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||
Asset retirement obligations, beginning | $ 1,720 | $ 1,500 | |
Additional asset retirement obligations recorded, net of adjustments in estimates | 81 | ||
Accretion of asset retirement obligations | 115 | 139 | $ 118 |
Asset retirement obligations, ending | $ 1,835 | $ 1,720 | $ 1,500 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Schedule Of Goodwill Attributed To Segments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
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 Marketab44
Cash Equivalents And Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total proceeds from the sale or maturity of available-for-sale marketable securities | $ 125,041 | $ 42,200 | $ 40,679 |
Maximum [Member] | |||
Net unrealized holding gains on available-for-sale securities | $ 100 | $ 100 |
Cash Equivalents And Marketab45
Cash Equivalents And Marketable Securities (Schedule Of Cash Equivalents And Available-For-Sale Marketable Securities Reported At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | $ 7,155 | $ 8,801 |
Total marketable securities, available-for-sale | 38,081 | 88,811 |
Total cash equivalents and marketable securities | 45,236 | 97,612 |
Money Market Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 6,742 | 6,746 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 413 | 1,055 |
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 | 7,370 | 8,684 |
Variable Rate Demand Obligation [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 13,995 | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | $ 16,716 | 44,972 |
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 |
Cash Equivalents And Marketab46
Cash Equivalents And Marketable Securities (Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash Equivalents And Marketable Securities [Abstract] | ||
Due in one year or less | $ 24,086 | |
Due after five years through ten years | 4,695 | |
Due after ten years | 9,300 | |
Total debt securities | $ 38,081 | $ 88,811 |
Disclosures About Segments of47
Disclosures About Segments of an Enterprise and Related Information (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Segment Reporting Information [Line Items] | ||||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | $ (10,774) | |||||
AT&T [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage to total revenue | 7.00% | 7.00% | 10.00% | |||
Top Five Customers [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage to total revenue | 32.00% | 31.00% | 31.00% | |||
Data [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted Earnings Before Interest Taxes Depreciation And Amortization | [2] | $ 56,018 | [1] | $ 50,719 | $ 46,699 | [1] |
R&SB [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted Earnings Before Interest Taxes Depreciation And Amortization | [2] | 21,717 | [1] | 21,426 | 23,480 | [1] |
RLEC Access [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted Earnings Before Interest Taxes Depreciation And Amortization | [2] | $ 17,355 | [1] | $ 19,858 | 19,685 | [1] |
Corporate (Unallocated) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted Earnings Before Interest Taxes Depreciation And Amortization | [1],[2] | $ 10,774 | ||||
[1] | Adjusted EBITDA (a non-GAAP measure), is used by the Company's CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, acquisition and separation related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures regarding Adjusted EBITDA | |||||
[2] | In 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the years ended December 31, 2015 and 2014. |
Disclosures About Segments of48
Disclosures About Segments of an Enterprise and Related Information (Summarized Financial Information Of Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | $ 206,899 | $ 204,269 | $ 201,456 | |||
Cost of revenue | 38,973 | 42,205 | 42,978 | |||
Direct operating and selling costs | 12,800 | 10,590 | 10,022 | |||
Indirect operating costs | 36,421 | 35,590 | 34,580 | |||
Corporate general and administrative costs | 35,757 | 31,112 | 18,071 | |||
Capital expenditures | 84,027 | 115,675 | 84,100 | |||
Data [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 123,604 | 114,311 | 106,642 | |||
Cost of revenue | 17,909 | 17,934 | 16,767 | |||
Gross profit | 105,695 | 96,377 | 89,875 | |||
Direct operating and selling costs | 7,489 | 5,403 | 4,755 | |||
Indirect operating costs | 26,717 | 25,322 | 24,194 | |||
Corporate general and administrative costs | 15,471 | 14,933 | 14,227 | |||
Adjusted EBITDA | [2] | 56,018 | [1] | 50,719 | 46,699 | [1] |
Capital expenditures | 73,328 | 98,535 | 66,570 | |||
R&SB [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 63,328 | 67,214 | 72,028 | |||
Cost of revenue | 21,064 | 24,271 | 26,211 | |||
Gross profit | 42,264 | 42,943 | 45,817 | |||
Direct operating and selling costs | 4,658 | 4,521 | 4,600 | |||
Indirect operating costs | 9,494 | 10,043 | 10,077 | |||
Corporate general and administrative costs | 6,395 | 6,953 | 7,660 | |||
Adjusted EBITDA | [2] | 21,717 | [1] | 21,426 | 23,480 | [1] |
Capital expenditures | 10,050 | 9,545 | 7,089 | |||
RLEC Access [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 19,967 | 22,744 | 22,786 | |||
Gross profit | 19,967 | 22,744 | 22,786 | |||
Direct operating and selling costs | 653 | 666 | 667 | |||
Indirect operating costs | 210 | 225 | 309 | |||
Corporate general and administrative costs | 1,749 | 1,995 | 2,125 | |||
Adjusted EBITDA | [2] | 17,355 | [1] | 19,858 | 19,685 | [1] |
Corporate (Unallocated) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Corporate general and administrative costs | 12,142 | 7,231 | (5,942) | |||
Adjusted EBITDA | [1],[2] | 10,774 | ||||
Capital expenditures | $ 649 | $ 7,595 | $ 10,441 | |||
[1] | Adjusted EBITDA (a non-GAAP measure), is used by the Company's CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, acquisition and separation related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures regarding Adjusted EBITDA | |||||
[2] | In 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the years ended December 31, 2015 and 2014. |
Disclosures About Segments of49
Disclosures About Segments of an Enterprise and Related Information (Reconciliation of Reportable Segments Measure of Profit to Consolidated Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Total reportable segments measure of profit | $ 95,090 | $ 92,003 | $ 100,638 | |||
Interest expense | (28,385) | (19,918) | (15,575) | |||
Gain on interest rate swap derivatives | 665 | 492 | ||||
Other (income) expenses, net | 389 | 114 | 664 | |||
Depreciation and amortization and accretion of asset retirement obligations | (51,394) | (47,666) | (45,330) | |||
Amortization of actuarial losses | (1,350) | (1,350) | (248) | |||
Equity-based compensation, exclusive of restructuring charges | (9,581) | (5,881) | ||||
Restructuring charges | (1,940) | (638) | ||||
Acquisition and Separation Related Charges | (1,211) | |||||
Income Before Income Taxes | 1,618 | 17,329 | 36,057 | |||
Data [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Adjusted EBITDA | [2] | 56,018 | [1] | 50,719 | 46,699 | [1] |
Restructuring charges | (1,451) | |||||
R&SB [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Adjusted EBITDA | [2] | 21,717 | [1] | 21,426 | 23,480 | [1] |
Restructuring charges | (412) | |||||
RLEC Access [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Adjusted EBITDA | [2] | 17,355 | [1] | $ 19,858 | 19,685 | [1] |
Restructuring charges | $ (77) | |||||
Corporate (Unallocated) [Member] | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Adjusted EBITDA | [1],[2] | 10,774 | ||||
Amortization of actuarial losses | (248) | |||||
Equity-based compensation, exclusive of restructuring charges | (4,340) | |||||
Employee separation charges | $ 244 | |||||
[1] | Adjusted EBITDA (a non-GAAP measure), is used by the Company's CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, acquisition and separation related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures regarding Adjusted EBITDA | |||||
[2] | In 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the years ended December 31, 2015 and 2014. |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Aug. 06, 2015USD ($)shares | Jan. 02, 2015USD ($) | Apr. 30, 2013USD ($) | Dec. 31, 2016USD ($)itemshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2012 |
Line of credit borrowing capacity | $ 425,000,000 | ||||||
Amount outstanding retired | 311,000,000 | ||||||
Principal payments on senior secured term loans | $ 8,030,000 | $ 47,960,000 | $ 5,250,000 | ||||
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% | ||||||
Leverage and interest coverage ratio | The Company was in compliance with its debt covenants as of December 31, 2016 | ||||||
Leverage and interest coverage ratio requirements | The amended Credit Facility includes various restrictions and conditions, including a maximum leverage ratio of 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 | ||||||
Line of credit, leverage ratio | item | 3.68 | ||||||
Line of credit, interest coverage ratio | item | 7.27 | ||||||
Fixed interest rate | 0.80% | 0.50% | |||||
Gain Loss On Interest Rate Derivative Instruments Not Designated As Hedging Instruments | 665,000 | $ 492,000 | |||||
Payment of financing costs | $ 8,192,000 | ||||||
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 warrants | 1,300,000 | ||||||
Amortization of debt discount and issuance costs | $ 4,500,000 | $ 2,688,000 | 1,461,000 | ||||
Amortization of debt issuance costs | $ 4,500,000 | 2,700,000 | 1,500,000 | ||||
Patronage refunds percentage, cash | 75.00% | ||||||
Patronage refunds percentage, equity | 25.00% | ||||||
Patronage credits | $ 1,000,000 | $ 1,200,000 | $ 700,000 | ||||
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 | ||||||
Maturities of long-term debt, 2017 | $ 500,000 | ||||||
Future minimum lease payments | 7,800,000 | ||||||
Future minimum lease payments, 2018 | 500,000 | ||||||
Future minimum lease payments, 2019 | 400,000 | ||||||
Future minimum lease payments, 2020 | 400,000 | ||||||
Future minimum lease payments, 2021 | 400,000 | ||||||
Future minimum lease payments, thereafter | $ 5,600,000 | ||||||
January 1, 2016 Through December 31, 2016 | |||||||
Line of credit, leverage ratio, maximum | item | 4.75 | ||||||
January 1, 2017 Through December 31, 2017 | |||||||
Line of credit, leverage ratio, maximum | item | 4.50 | ||||||
January 1, 2018 Through December 31, 2018 | |||||||
Line of credit, leverage ratio, maximum | item | 4.25 | ||||||
After December 31, 2018 | |||||||
Line of credit, leverage ratio, maximum | item | 4 | ||||||
Revolver [Member] | |||||||
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] | |||||||
Line of credit current borrowing capacity | 100,000,000 | ||||||
Term of loan | 5 years | ||||||
Basis spread on variable rate | 3.00% | ||||||
Term Loan A [Member] | September 30, 2014 Through December 31, 2016 [Member] | |||||||
Quarterly payments per annum | 1.25% | ||||||
Term Loan A [Member] | After December 31, 2016 [Member] | |||||||
Quarterly payments per annum | 2.50% | ||||||
Term Loan B [Member] | |||||||
Line of credit current borrowing capacity | $ 275,000,000 | ||||||
Term of loan | 6 years | ||||||
Basis spread on variable rate | 3.25% | ||||||
Quarterly payments per annum | 1.00% | ||||||
Term Loan A, B And C [Member] | |||||||
Principal payments on senior secured term loans | 40,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.95% | ||||||
Maturities of long-term debt, 2018 | $ 13,000,000 | ||||||
Maturities of long-term debt, 2019 | 70,900,000 | ||||||
Maturities of long-term debt, 2019 | $ 256,500,000 | ||||||
Term Loan C [Member] | |||||||
Line of credit current borrowing capacity | $ 28,000,000 | ||||||
Basis spread on variable rate | 3.25% | ||||||
Quarterly payments per annum | 1.00% | ||||||
Debt issuance costs | $ 900,000 | ||||||
Unsecured Debt [Member] | |||||||
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] | |||||||
Term of capital leases | 4 years | ||||||
Maximum [Member] | |||||||
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, 2016 | Dec. 31, 2015 |
Less: current portion of long term debt | $ 13,530 | $ 10,400 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 454,885 | 456,300 |
Long-term Debt [Member] | ||
Credit facility | 340,385 | 348,415 |
8% Notes | 150,000 | 150,000 |
Capital lease obligations | 7,842 | 2,597 |
Long-term debt | 498,227 | 501,012 |
Less: current portion of long term debt | 13,530 | 10,400 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 484,697 | 490,612 |
Unamortized Discount and Debt Issuance Costs [Member] | ||
Credit facility | 3,283 | 4,705 |
8% Notes | 26,529 | 29,607 |
Long-term debt | 29,812 | 34,312 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | $ 29,812 | $ 34,312 |
Long-Term Debt (Schedule of Cap
Long-Term Debt (Schedule of Capitalized Lease Assets) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Vehicles [Member] | |
Historical cost | $ 2,723 |
Accumulated amortization | (1,755) |
Telephony Equipment [Member] | |
Historical cost | 8,871 |
Accumulated amortization | (444) |
Assets Held under Capital Leases [Member] | |
Historical cost | 11,594 |
Accumulated amortization | $ (2,199) |
Supplementary Disclosures Of 53
Supplementary Disclosures Of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | |||
Interest (net of amounts capitalized) | $ 23,873 | $ 15,467 | $ 13,206 |
Income taxes | 395 | 843 | (680) |
Additions to property, plant and equipment included in accounts payable and other accrued liabilities | 2,750 | 6,906 | 8,373 |
Capital lease obligations | 7,928 | 123 | |
Dividends declared on common stock not paid | 3,152 | ||
Cash received from patronage credits | 800 | 800 | 900 |
Interest capitalized | $ 1,000 | $ 1,200 | $ 300 |
Fair Value Of Financial Instr54
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investments | $ 1,479 | $ 1,180 |
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 | $ 1,400 | $ 1,100 |
Fair Value Of Financial Instr55
Fair Value Of Financial Instruments (Summary Of Financial Assets Measured At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 7,155 | $ 8,801 |
Total marketable securities | 38,081 | 88,811 |
Total financial assets | 45,236 | 97,612 |
Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,742 | 6,746 |
Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,000 | |
Variable Rate Demand Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 13,995 | |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 7,370 | 8,684 |
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 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 413 | 1,055 |
Total marketable securities | 16,716 | 44,972 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,742 | 6,746 |
Total financial assets | 6,742 | 6,746 |
Level 1 [Member] | Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,742 | 6,746 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 413 | 2,055 |
Total marketable securities | 38,081 | 88,811 |
Total financial assets | 38,494 | 90,866 |
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] | Variable Rate Demand Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 13,995 | |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 7,370 | 8,684 |
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 | |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 413 | 1,055 |
Total marketable securities | $ 16,716 | $ 44,972 |
Fair Value Of Financial Instr56
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | $ 337,102 | $ 343,710 |
8% Notes | 123,471 | 120,393 |
Capital lease obligations | 7,842 | 2,597 |
Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | 304,571 | 298,400 |
8% Notes | 133,965 | 132,028 |
Capital lease obligations | $ 7,842 | $ 2,597 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per common share | 984,144 | 740,214 | 598,463 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per common share | 526,957 | 24,000 | 17,383 |
Warrants and Rights Subject to Mandatory Redemption [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per common share | 5,500,000 | 5,500,000 |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule Of Computation Of Basic And Diluted (Loss) Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings (Loss) Per Share [Abstract] | |||
Net (loss) income attributable to Lumos Networks Corp. | $ (523) | $ 10,026 | $ 21,528 |
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | (338) | (540) | |
Numerator for basic and diluted (loss) earnings per common share | $ (523) | $ 9,688 | $ 20,988 |
Weighted average basic shares outstanding | 23,370 | 22,825 | 22,328 |
Less: weighted average participating securities and nonvested performance-based restricted shares | (813) | (791) | (581) |
Denominator for basic (loss) earnings per common share | 22,557 | 22,034 | 21,747 |
Plus: potentially dilutive restricted shares and stock options | 275 | 363 | |
Denominator for diluted (loss) earnings per common share | 22,557 | 22,309 | 22,110 |
Basic (loss) earnings per share | $ (0.02) | $ 0.44 | $ 0.97 |
Diluted (loss) earnings per share | $ (0.02) | $ 0.43 | $ 0.95 |
Stock Options, Restricted Sto59
Stock Options, Restricted Stock and Stock Warrants (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 06, 2015 | Dec. 31, 2016 | 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 | 0 | ||||
Number of shares issued during the period | 324,000 | ||||
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 | |||
Total intrinsic value of stock options exercised | $ 0.2 | $ 0.1 | $ 0.3 | ||
Total fair value of options vested | 0.8 | $ 1.3 | 0.5 | ||
Unrecognized compensation cost | $ 0.8 | ||||
Unrecognized compensation cost recognition period, in years | 1 year 6 months | ||||
Shares available for employee stock purchase plan | 100,000 | ||||
Remaining shares available for employee stock purchase plan | 61,657 | ||||
Shares price percentage | 85.00% | ||||
Shares issued under the employee stock purchase plan | 6,126 | ||||
Warrants issued, shares | 5,500,000 | 5,500,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 13.99 | ||||
GrantDateFairValueofWarrants | $ 4.44 | ||||
Proceeds from Issuance of Warrants | $ 23.5 | ||||
Portion of Debt Discount offset from proceeds allocated to warrants | $ 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. | ||||
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 | $ 3 | $ 1.7 | 1.7 | ||
Unrecognized compensation cost | $ 4.7 | ||||
Unrecognized compensation cost recognition period, in years | 1 year 9 months 18 days | ||||
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 | 901,558 | ||||
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 | 323,804 | ||||
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 Sto60
Stock Options, Restricted Stock and Stock Warrants (Schedule Of Valuation Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Plans [Abstract] | ||
Risk-free interest rate | 1.90% | 1.96% |
Expected volatility | 55.93% | 59.52% |
Expected dividend yield | 0.00% | 3.54% |
Expected term | 6 years 3 months 20 days | 6 years 1 month 6 days |
Stock Options, Restricted Sto61
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, 2016USD ($)$ / sharesshares | |
Stock Plans [Abstract] | |
Stock options outstanding at December 31, 2015, Shares | 2,182 |
Stock options outstanding at December 31, 2015, Weighted-Average Exercise Price per Share | $ / shares | $ 12.57 |
Granted during the period, Shares | 0 |
Exercised during the period, Shares | (123) |
Exercised during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 12.59 |
Forfeited during the period, Shares | (35) |
Forfeited during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 13.96 |
Expired during the period, Shares | (275) |
Expired during the period, Weighted Average Exercise Price per Share | $ / shares | $ 13.78 |
Stock options outstanding at December 31, 2016, Shares | 1,749 |
Stock options outstanding at December 31, 2016, Weighted-Average Exercise Price per Share | $ / shares | $ 12.35 |
Stock options outstanding at December 31, 2016, Weighted-Average Remaining Contractual Term, in years | 5 years 2 months 13 days |
Stock options outstanding a December 31, 2016, Aggregate Intrinsic Value | $ | $ 6,279 |
Stock options exercisable at December 31, 2016, Shares | 1,325 |
Stock options exercisable at December 31, 2016, Weighted-Average Exercise Price per Share | $ / shares | $ 12.17 |
Stock options exercisable at December 31, 2016, Weighted-Average Remaining Contractual Term, in years | 4 years 10 months 29 days |
Stock options exercisable at December 31, 2016, Aggregate Intrinsic Value | $ | $ 4,997 |
Total stock options outstanding, vested and expected to vest at December 31, 2016, Shares | 1,727 |
Total stock options outstanding, vested and expected to vest at December 31, 2016, Weighted-Average Exercise Price per Share | $ / shares | $ 12.36 |
Total stock options outstanding, vested and expected to vest at December 31, 2016, Aggregate Intrinsic Value | $ | $ 6,180 |
Stock Options, Restricted Sto62
Stock Options, Restricted Stock and Stock Warrants (Summary Of Restricted Stock Awards Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 |
Granted during the period, Shares | shares | 324 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 12.17 |
Vested during the period, Shares | shares | (240) |
Vested during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 12.46 |
Forfeited during the period, Shares | shares | (96) |
Forfeited during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 15.91 |
Restricted stock outstanding at September 30, 2016, Shares | shares | 849 |
Stock outstanding at December 31, 2016, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 13.85 |
Stock Options, Restricted Sto63
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.90% | 1.96% | |
Expected volatility | 55.93% | 59.52% | |
Expected dividend yield | 0.00% | 3.54% | |
Expected term | 6 years 3 months 20 days | 6 years 1 month 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 Sto64
Stock Options, Restricted Stock and Stock Warrants (Summary of Stock Warrant Activity) (Details) - $ / shares | Aug. 06, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Warrants and Rights Note Disclosure [Abstract] | |||
Stock warrants oustanding at December 31, 2015, Shares | 5,500,000 | ||
Stock warrants outstanding at December 31, 2015, weighted average exercise price per share | $ 13.99 | ||
Granted during the period, shares | 5,500,000 | 5,500,000 | |
Exercised during the period, shares | |||
Expired during the period, shares | |||
Granted during the period, weighted average exercise price | |||
Exercised during the period, Weighted Average Exercise Price Per Share | |||
Expired during the period, weighted average exercise price per share | |||
Stock warrants outstanding at December 31, 2016, Shares | 5,500,000 | 5,500,000 | |
Stock warrants outstanding at December 31, 2016, weighted average exercise price | $ 13.99 | $ 13.99 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | |||
Adjustments to excess tax benefit from stock-based compensation | $ (172) | $ 165 | $ (1,488) |
Tax expense (benefit) for adjustments to pension and postretirement benefit plans in other comprehensive income | 600 | $ 400 | $ 5,400 |
Adjustment for deferred taxes upon issuance of 8% Notes | (5,486) | ||
Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating losses | $ 69,300 | ||
Minimum [Member] | |||
Income Tax [Line Items] | |||
NOL expiration range | 2,022 | ||
Maximum [Member] | |||
Income Tax [Line Items] | |||
NOL expiration range | 2,036 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Federal | |||
State | 411 | 379 | (68) |
Total current tax expense (benefit) | 411 | 379 | (68) |
Deferred tax expense, Federal | 1,341 | 6,319 | 11,908 |
Deferred tax expense, State | 210 | 448 | 2,569 |
Total deferred tax expense | 1,551 | 6,767 | 14,477 |
Total income tax expense | $ 1,962 | $ 7,146 | $ 14,409 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Computed tax expense at statutory federal rate of 35% | $ 567 | $ 6,065 | $ 12,620 |
Nondeductible compensation | 532 | 122 | 27 |
Noncontrolling interests | (69) | (61) | (47) |
Nondeductible public offering costs | 112 | ||
State income taxes, net of federal income tax impact | 403 | 538 | 1,626 |
Nondeductible interest on 8% Notes | 28 | 578 | |
Other, net | 501 | (208) | 183 |
Total income tax expense | $ 1,962 | $ 7,146 | $ 14,409 |
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, 2016 | Dec. 31, 2015 |
Income Taxes [Abstract] | ||
Retirement benefits other than pension | $ 2,181 | $ 2,167 |
Pension and related plans | 4,159 | 4,588 |
Net operating loss | 26,704 | 16,509 |
Accrued expenses | 7,096 | 6,848 |
Interest and discount on 8% Notes | 809 | |
Other | 546 | 425 |
Total deferred income tax assets | 41,495 | 30,537 |
Property and equipment | (128,515) | (111,846) |
Intangibles | (9,968) | (7,884) |
Total deferred income tax liabilities | (138,483) | (119,730) |
Net non-current deferred income tax liability | (96,988) | (89,193) |
Net deferred income tax liability | $ 96,988 | $ 89,193 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Change In Unrecognized Income Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||
Balance at beginning of year | $ 1,356 | $ 1,112 |
Additions for tax positions related to the current year | 235 | 297 |
Increases for tax positions related to prior years | (96) | 109 |
Statute of limitations expiration | (342) | (162) |
Balance at end of year | $ 1,153 | $ 1,356 |
Pension Plans And Other Postr70
Pension Plans And Other Postretirement Benefits (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total expense (income) recognized for all pension and OPEBs plans | $ 505,000 | $ (314,000) | $ (1,628,000) | |
Further benefits that will be accrued by plan participants | 0 | |||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | (10,774,000) | |||
Income tax from unrecognized actuarial loss | 600,000 | |||
Company matching contribution for a defined contribution plan | 1,100,000 | 1,100,000 | 1,000,000 | |
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 | (700,000) | (1,300,000) | (1,100,000) | |
Expense recognized from previously unrecognized loss | 900,000 | $ 100,000 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | $ 500,000 | |||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.00% | 4.20% | ||
Expected net periodic (benefit) expense | $ 600,000 | |||
Benefit obligation | 66,293,000 | $ 65,725,000 | 70,892,000 | $ 57,209,000 |
Income tax from unrecognized actuarial loss | (6,440,000) | $ (6,981,000) | (7,066,000) | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 0 | |||
Expected future benefit payments, 2017 | 3,074,000 | |||
Expected future benefit payments, 2018 | 3,111,000 | |||
Expected future benefit payments, 2019 | 3,214,000 | |||
Expected future benefit payments, 2020 | 3,247,000 | |||
Expected future benefit payments, 2021 | 3,315,000 | |||
Expected future benefit payments, 2022-2026 | $ 17,197,000 | |||
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.00% | 4.20% | ||
Benefit obligation | $ 702,000 | $ 765,000 | 844,000 | $ 12,800,000 |
Income tax from unrecognized actuarial loss | 43,000 | 7,000 | (25,000) | |
Defined Benefit Plan, Contributions by Employer | 115,000 | 27,000 | 671,000 | |
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 | 54,000 | |||
Expected future benefit payments, 2022-2026 | 245,000 | |||
Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Further benefits that will be accrued by plan participants | 0 | |||
Benefit obligation | 4,800,000 | 4,600,000 | 4,900,000 | |
Expense recognized from previously unrecognized loss | 200,000 | 400,000 | $ 200,000 | |
Amount of unrecognized actuarial losses recorded in AOCI | 900,000 | 1,000,000 | ||
Income tax from unrecognized actuarial loss | 600,000 | |||
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 | 300,000 | |||
Expected future benefit payments, 2021 | 300,000 | |||
Expected future benefit payments, 2022-2026 | 1,400,000 | |||
Maximum [Member] | Qualified And Non-Qualified Pension And OPEBs Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | $ 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 Postr71
Pension Plans And Other Postretirement Benefits (Schedule Of Defined Benefit Plan Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | $ 53,912 | ||
Fair value of plan assets, end of period | 55,573 | $ 53,912 | |
Funded status: | |||
Non-current liabilities | 16,029 | 17,029 | |
Amounts recognized in accumulated other comprehensive loss: | |||
Income taxes | (600) | ||
Defined Benefit Pension Plan [Member] | |||
Change in benefit obligations: | |||
Benefit obligations, beginning of period | 65,725 | 70,892 | $ 57,209 |
Interest cost | 2,696 | 2,664 | 2,622 |
Actuarial loss (gain) | 763 | (4,550) | 13,547 |
Benefits paid, net | (2,891) | (3,281) | (2,956) |
Curtailment gain | |||
Transfer | 470 | ||
Benefit obligations, end of period | 66,293 | 65,725 | 70,892 |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | 53,912 | 58,403 | 57,847 |
Actual return on plan assets | 4,606 | (1,166) | 3,555 |
Benefits paid | (2,945) | (3,325) | (2,999) |
Fair value of plan assets, end of period | 55,573 | 53,912 | 58,403 |
Funded status: | |||
Current liabilities | |||
Non-current liabilities | 10,720 | 11,813 | 12,489 |
Funded status recognized in the consolidated balance sheets | 10,720 | 11,813 | 12,489 |
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | (16,598) | (17,899) | (18,119) |
Income taxes | 6,440 | 6,981 | 7,066 |
Net amount recognized in accumulated other comprehensive loss | (10,158) | (10,918) | (11,053) |
Other Postretirement Benefit Plans [Member] | |||
Change in benefit obligations: | |||
Benefit obligations, beginning of period | 765 | 844 | 12,800 |
Service cost | 80 | ||
Interest cost | 30 | 31 | 373 |
Actuarial loss (gain) | 22 | (83) | 887 |
Benefits paid, net | (115) | (27) | (671) |
Curtailment gain | (12,625) | ||
Transfer | |||
Benefit obligations, end of period | 702 | 765 | 844 |
Change in plan assets: | |||
Employer contributions | 115 | 27 | 671 |
Benefits paid | (115) | (27) | (671) |
Funded status: | |||
Current liabilities | 56 | 111 | 72 |
Non-current liabilities | 646 | 654 | 772 |
Funded status recognized in the consolidated balance sheets | 702 | 765 | 844 |
Amounts recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | 111 | 18 | (65) |
Income taxes | (43) | (7) | 25 |
Net amount recognized in accumulated other comprehensive loss | $ 68 | $ 11 | $ (40) |
Pension Plans And Other Postr72
Pension Plans And Other Postretirement Benefits (Schedule Of Net Periodic (Benefit) Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 2,696 | $ 2,664 | $ 2,622 |
Expected return on plan assets | (3,536) | (4,111) | (4,373) |
Amortization of loss | 1,049 | 991 | |
Net periodic benefit expense (benefit) | 209 | (456) | (1,751) |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 80 | ||
Interest cost | 30 | 31 | 373 |
Amortization of loss | 23 | ||
Net periodic benefit expense (benefit) | $ 30 | $ 31 | $ 476 |
Pension Plans And Other Postr73
Pension Plans And Other Postretirement Benefits (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.00% | 4.20% | |
Discount rate | 4.20% | 3.85% | 4.70% |
Expected return on plan assets | 6.75% | 7.25% | 7.75% |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.00% | 4.20% | |
Discount rate | 4.20% | 3.85% | 4.70% |
Pension Plans And Other Postr74
Pension Plans And Other Postretirement Benefits (Schedule Of Plan Asset Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Fair Value | $ 55,573 | $ 53,912 |
Target Allocation | 100.00% | 100.00% |
Large Cap Value [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 23.00% | 23.00% |
Fair Value | $ 12,518 | $ 12,193 |
Large Cap Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 11.00% | 11.00% |
Fair Value | $ 6,237 | $ 6,085 |
Mid Cap Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 7.00% | 6.00% |
Fair Value | $ 3,676 | $ 3,342 |
Small Cap Blend [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 4.00% | 4.00% |
Fair Value | $ 2,308 | $ 2,080 |
Foreign Stock - Large Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 6.00% | 7.00% |
Fair Value | $ 3,586 | $ 3,817 |
Bond [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 33.00% | 34.00% |
Fair Value | $ 18,633 | $ 18,239 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 16.00% | 15.00% |
Fair Value | $ 8,615 | $ 8,156 |
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 Postr75
Pension Plans And Other Postretirement Benefits (Schedule Of Expected Future Pension Benefit Payments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 3,074 |
2,018 | 3,111 |
2,019 | 3,214 |
2,020 | 3,247 |
2,021 | 3,315 |
2022-2026 | 17,197 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 57 |
2,018 | 57 |
2,019 | 56 |
2,020 | 55 |
2,021 | 54 |
2022-2026 | $ 245 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Equity Method Investee [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1,200 | $ 1,200 | $ 900 |
Related Party Transaction, Other Revenues from Transactions with Related Party | 4,400 | 4,700 | $ 5,000 |
Due from Related Party | $ 400 | $ 400 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule Of Restructuring Costs By Business Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | $ 1,940 | |
Total Restructuring charges | 1,940 | $ 638 |
Data [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | 1,451 | |
Total Restructuring charges | 1,451 | |
R&SB [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | 412 | |
Total Restructuring charges | 412 | |
RLEC Access [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | 77 | |
Total Restructuring charges | $ 77 |
Restructuring Charges (Summary
Restructuring Charges (Summary Of Restructuring Liability Balance) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Additions, net of adjustment | $ 1,940 |
Payments | (1,542) |
Ending balance at December 31, 2016 | 398 |
Employee Severance And Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additions, net of adjustment | 1,940 |
Payments | (1,542) |
Ending balance at December 31, 2016 | $ 398 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies [Abstract] | |||
Rental expense for operating leases | $ 12.1 | $ 12 | $ 10.2 |
Amount committed under lease agreements, 2017 | 3.6 | ||
Amount committed under lease agreements, 2018 | 3 | ||
Amount committed under lease agreements, 2019 | 2.3 | ||
Amount committed under lease agreements, 2020 | 1.2 | ||
Amount committed under lease agreements, 2021 | 0.7 | ||
Amount committed under lease agreements, thereafter | 1.5 | ||
Purchase commitments relating to capital expenditures | $ 2.8 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 18, 2017 | Jan. 31, 2017 | Jan. 04, 2017 |
Business Acquisition, Name of Acquired Entity | DC74 LLC | Clarity Communications, LLC | |
Sale of Stock, Description of Transaction | On February 18, 2017, we entered into a definitive agreement ("Merger Agreement") by and among the Company, MTN Infrastructure TopCo, Inc. ("Parent") and MTN Infrastructure BidCo, Inc. ("Merger Sub"), pursuant to which we will be acquired by EQT Infrastructure investment strategy ("EQT Infrastructure"), subject to shareholder approval, regulatory approval and other customary closing conditions. Pursuant to the Merger Agreement, each outstanding share of common stock of the Company prior to the effective time of the Merger shall be automatically converted into the right to receive $18.00 in cash. | ||
Sale of Stock, Price Per Share | $ 18 | ||
Subsequent Event [Member] | DC74 LLC [Member] | |||
Business Acquisition, Date of Acquisition Agreement | Jan. 31, 2017 | ||
Payments to Acquire Businesses, Gross | $ 23.5 | ||
Subsequent Event [Member] | Clarity Communications, LLC [Member] | |||
Business Acquisition, Date of Acquisition Agreement | Jan. 4, 2017 | ||
Total Purchase Price | $ 15 | ||
Payments to Acquire Businesses, Gross | 10 | ||
Earnout Provision Amount in Purchase Price | $ 5 | ||
Minimum [Member] | Subsequent Event [Member] | |||
Total Purchase Price | 28 | ||
Minimum [Member] | Subsequent Event [Member] | DC74 LLC [Member] | |||
Earnout Provision Amount in Purchase Price | 5 | ||
Maximum [Member] | Subsequent Event [Member] | DC74 LLC [Member] | |||
Total Purchase Price | 29 | ||
Earnout Provision Amount in Purchase Price | $ 6 |